/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070301.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 Thursday, March 1, 2007, Vol. 10, No. 43 Headlines A U S T R A L I A ADVANCED MARKETING: Court Approves Bid Procedures on Asset Sale AGENIX LIMITED: Posts AU$4.7-Mln. Loss for HY-Ended Dec. 2006 ALI MAY: Members to Receive Wind-Up Report BANOR HOLDINGS: Members Opt to Wind Up Operations CONROCK GROUP: Members and Creditors to Meet on March 29 DANALIZ PTY: To Declare Dividend for Unsecured Creditors EASTLAKES MANAGEMENT: Members Resolve to Liquidate Business ELECTRONIC INTERNATIONAL: Final Meeting Slated for March 22 ENESCO GROUP: U.S. Trustee Appoints Three-Member Official Panel ENESCO GROUP: Committee Retains Adelman & Gettleman as Counsel FASCIALE FUTURES: S. Fasciale in Court on ASIC Charges FOOD-SHARE AUSTRALIA: Liquidator to Present Wind-Up Report HANDS OZ: Members and Creditors to Meet on March 30 LAFAYETTE MINING: Rapu-Rapu Plant Resumes Production MERIDIAN FOREX: Members Resolve to Close Business MICHAEL CHARLES: Names de Vries and Tayeh as Liquidators NORSKE SKOGINDUSTRIER: To De-Merge Non-Core Real Properties NORSKE SKOGINDUSTRIER: To Invest NOK330 Million Into Skogn Unit NORSKE SKOGINDUSTRIER: Posts NOK3-Billion Net Loss for 2006 RHSS LIMITED: Members to Meet on March 27 SUBIACO HERBS: Members and Creditors to Meet on March 27 TRANSAX INTERNATIONAL: Commits to Repay US$1.6 Mln. Investment WENHAM BUILDERS: Supreme Court Issues Wind-Up Order ZINIFEX LTD: EU Commission Approves Joint Venture Proposal C H I N A & H O N G K O N G BOE TECHNOLOGY: Will Sell Remaining TPV Tech Shares BOE TECHNOLOGY: To Merge with SVA Group BOE TECHNOLOGY: Expects Another Loss for 2006 CHEERGOLD INVESTMENT: Shareholders to Hear Wind-Up Report CHEUNG MAN: Members' Final Meeting Slated for March 28 GALLAS PUBLISHING: Liabilities Prompts Wind-Up HEILONGJIANG SUNFIELD: Expects to Profit Due to Subsidy INNER MONGOLIA: Mitsui & Co., Ltd. Buys Shares in Unit JINAN IRON: Merges with Laiwu Iron LANE CRAWFORD: Creditors Must File Claims by March 30 LIVINGSTON COMPANY: Taps Clara Fung Pui Ling as Liquidator NANJING IRON: Restructures Sales and Management Division NANJING IRON: China Steel Seeks Strategic Alliance PACICO INTERNATIONAL: Placed Under Voluntary Wind-Up ROBHEATH INVESTMENTS: Members to Hear Liquidator's Report SHENZHEN CHINA BICYCLE: Shareholders OK Share Merger Reform SHENZHEN CHINA BICYCLE: Expects 2006 Net Loss of CNY5 Million SHENZHEN CHINA BICYCLE: Hires Wong Lam As New Auditors SHENZHEN DAWNCOM: Implements Share Merger Reform SHENZHEN DAWNCOM: Expects a CNY140 Million Loss For 2006 SHENZHEN DAWNCOM: Disclosure Delays Lead to CNY300,000 CSRC Fine SHENZHEN SHENXIN: Increases Liabilities in Restatement SIBER HEGNER: Creditors Must Prove Debts by March 26 SUCCESS INFORMATION: Losses UnionPay Shares in Court Verdict SUCCESS INFORMATION: Xinhai Investment Repays Debt with Shares SUCCESS INFORMATION: Expects CNY12-M. Profit After Assets Sale SUCCESS INFORMATION: Hires Nanfang Minhe As New Auditors SKYPORT ENTERPRISES: Creditors' Proofs of Debt Due on March 16 TRIUMPHANT TONE: Members' Final General Meeting Set for March 27 XINING SPECIAL: Two Units Apply for Working Capital Loans I N D I A AES CORP: Restating Financials & Delays Fourth Quarter Results AMERICAN AXLE: Offers US$300 Million of Senior Unsec. Notes BRITISH AIRWAYS: Hires Porter Novelli for Public Relations Work ELCOM INT'L: Appoints David Elliot as VP Finance & Secretary INDIA CEMENTS: Signs Scheme of Amalgamation with Visaka Cement KDL BIOTECH: Narrows 4th Qtr. 2006 Net Loss to INR21.85 Million LML LTD: Posts INR2.45BB Net Loss in 18 Mos. Ended Sept. 30, '06 * CI Raises India's Long-Term Currency Ratings to BBB- I N D O N E S I A ALCATEL-LUCENT: Wins US$1.5-Billion Patent Suit vs. Microsoft ALCATEL-LUCENT: Signs Outsourcing Pact with E-Plus Mobilfunk ALCATEL-LUCENT: Eyes Another 1,700 Job Cuts in Europe BAKRIE SUMATERA: Moody's Affirms 'B2' Senior Secured Debt Rating BAKRIE SUMATERA: S&P Affirms 'B' Corporate Credit Rating BAKRIE SUMATERA: Sets Up New Subsidiary CORUS GROUP: Tata Dismisses Speculation on Scunthorpe Plant Sale FOSTER WHEELER: Ralph Alexander Resigns as Director FOSTER WHEELER: Discloses Highest Profit in Its 116-Year History FOSTER: Appoints New Vice President for Corporate Development PAKUWON JATI: Sells US$110-Million Bond Due 2011 at 12% PERTAMINA: To Set Up Joint Venture for CPP Management PERUSAHAAN GAS: Will Deliver Gas to Java After 4-Month Delay TELKOM INDONESIA: Signs Cooperation Agreement with Flexi Handset J A P A N DELPHI CORP: Closing Manufacturing Facility in Spain FIDELITY NATIONAL: Net Earnings Rise to US$259.1 Million in 2006 METHANEX CORP: Earns US$482.9 Million in Year Ended December 31 MITSUBISHI MOTORS: Announces Sales & Export Results for January NIKKO CORDIAL: Will File Damages Suit Against 3 Former Execs NIKKO CORDIAL: Moody's Comments on Possible Delisting from TSE NORTHWEST AIRLINES: Committee Against Equity Panel Appointment NORTHWEST AIRLINES: Wants Court Approval on JP Morgan Pact SANYO ELECTRIC: May Revise Inaccurate Financial Reports K O R E A ARROW ELECTRONICS: Earns US$388 Million for Full Year 2006 DAEGU BANK: Records Lowest SBL Ratio Among Regional Banks DAEGU BANK: BIS Capital Adequacy Ratio at 11.73% at Sept. End HYNIX SEMICONDUCTOR: Shareholders Elect Jong-kap Kim as New CEO JEONBUK BANK: Declares Total Dividends of KRW3.6 Billion KOOKMIN BANK: Reports KRW2.47 Trillion Net Income for 2006 KOOKMIN BANK: To Issue MBS Worth KRW1 Tril. to Foreign Investors KOREA EXPRESS: Parent Posts KRW344.27 Billion Net Loss in 2006 KOREA EXPRESS: Increases Stake in JV Company to 40% KOREA EXPRESS: HS Holdings Divests Entire Holding KWANGJU BANK: Posts Highest SBL Ratio Among Regional Banks KWANGJU BANK: Records Lower BIS Ratio At September End LG CARD: Creditors to Reap Capital Gains in Shinhan Acquisition PUSAN BANK: Moody's Assigns Baa3 Rtg. to Subordinated Debt Issue * FSS Says Bank Net Income Decreases to KRW13.49 Trillion * FSS Says Substandard Bank Loans Decrease to KRW7.8 Trillion M A L A Y S I A AMSTEEL: Bursa Asks Explanation on Why Securities Should Stay ANTAH HOLDINGS: Posts MYR9.83 Million Profit in December Quarter ARK RESOURCES: Unit Inks Sub-Contracting Agreement w/ Pastiya COMSA: Inks Deal w/ Principal Odyssey to Develop Quoin Hill MALAYSIA AIRLINES: Fosters Codeshare Cooperation with KLM Royal STAR CRUISES: Casino License in Singapore not Guaranteed UNITED CHEMICAL: Balance Sheet Upside Down by MYR78MM at Dec. 06 N E W Z E A L A N D 166 MARSDEN: Court Sets Liquidation Hearing on March 8 A2 CORP: Appoints Le Grice as Exec. Director & A. Lawler as CEO BLUEPARK SEAFOODS: Court Hears Liquidation Petition CAPITAL PROPERTIES: To Purchase 2007 Capital Notes on April 15 CLASSIC DE'COR: Faces Liquidation Proceedings CMA SHELL: Creditors Must Prove Claims by March 2 COULIBALY & ASSOCIATES: Petition Hearing Slated for March 8 GILL INVESTMENTS: Commences Liquidation Proceedings GLOVER LAND: Shareholders Resolve to Close Business HALLS EARTHWORKS: Creditors' Meeting Slated for March 5 MANE HAIR: Hearing of Liquidation Petition Set for April 5 TE HAU KAINGA: Creditors' Proofs of Claim Due on May 19 VIDEOWORKS LTD: Court to Hear Liquidation Petition WAI ARIKI: Creditors Must Prove Debts by March 20 P H I L I P P I N E S CHIQUITA BRANDS: Sets Shareholders Annual Meeting for May 24 COVANTA HOLDING: Earns US$12 Mil. in Quarter Ended Dec. 31, 2006 MIRANT CORP: NY Units Want Confirmation Trial Moved to March 21 WARNER MUSIC: S&P Puts Ratings on Watch After EMI Merger Talks S I N G A P O R E CHINA AVIATION: Proposes Dividend of SGD0.02 Per Share COMPACT METAL: Net Loss Down by 43% to SGD14.34 Mil. in FY 2006 DREAMWORLD ENTERTAINMENT: Proofs of Debt Due on March 23 EXCEL MACHINE: Creditors Approve Statement of Proposals at EGM FAIRFAX FINANCIAL: Earns US$159.1 Million in 2006 Fourth Quarter GETRONICS NV: Inks Strategic Partnership with NTT Data Corp LIFEXCHANGE ASIA: Pays Preferential Dividend MONEYLINE TELERATE: Creditors Must Prove Debts by March 23 PETROLEO BRASILEIRO: To Study Petrosix Technology at Attarat T H A I L A N D DAIMLERCHRYSLER: Plans to Cut 1,000 Salaried Jobs by June 2007 DAIMLERCHRYSLER: Chrysler & UAW Ink Two Employee Incentive Deals DAIMLERCHRYSLER AG: May Accept GM Stake in Exchange for Chrysler DAIMLERCHRYSLER AG: Chrysler Eyes Sale of Dodge Cars in China G STEEL: Appoints New Member to Board of Directors ITV PCL: Gov't Will Seize Control if Penalties Are Unsettled PHELPS DODGE: Moody's Lowers Ratings on US$556.7MM Notes to B1 - - - - - - - - ================= A U S T R A L I A ================= ADVANCED MARKETING: Court Approves Bid Procedures on Asset Sale --------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware approved the qualified transaction procedures proposed by Advanced Marketing Services Inc. and designated Baker & Taylor as stalking horse bidder. The approval follows the announcement by the Debtor that it has entered into a letter of intent with Baker & Taylor, the world's largest book distributor, to sell the majority of its assets, excluding Publishers Group West Inc., pursuant to Section 363 of the United States Bankruptcy Code. The letter of intent is subject to the negotiation of a definitive asset purchase agreement and will require the Court approval. Following an auction, if necessary, the company anticipates a closing by March 15, 2007, as per the requirements of the letter of intent. The Hon. Christopher S. Sontchi ruled that the Debtors will provide these stalking horse protections to Baker & Taylor, in cash and at the closing of an alternative transaction: (a) a break-up fee in an amount equal to 2% of the sum of (i) $20,000,000, (ii) the minimum Selected APG Inventory Purchase Price, (iii) Advanced Marketing Services Inc.'s and Baker & Taylor's jointly established good faith estimate of the APG Product Prepayment Price, and (iv) AMS' and Baker & Taylor's jointly established good faith estimate of the Accounts Receivable Price; and (b) Baker & Taylor's reasonable and documented out-of-pocket fees and costs, including costs of counsel, not exceeding $300,000. These Stalking Horse Protections are entitled to status and payment as super-priority administrative expenses in the Debtors' Chapter 11 cases, Judge Sontchi added. Offer Deadline Binding offers to purchase all or any defined portion of the assets to be sold under the APA between the Debtors and Baker & Taylor may be submitted on or before Feb. 27, 2007, at 5:0O p.m. Although a Qualified Offer may be subject to some contingencies, any contingencies will be considered by AMS when evaluating and comparing Qualified Offers. Offer Evaluation Process On March 1, 2007, at 10:00 a.m., a meeting will be held at the offices of the Debtors' counsel, if AMS determines that proceeding with the Offer Evaluation Process is appropriate. Initial Qualified Offers will be considered only if they exceed the offer for the assets by Baker & Taylor plus the Stalking Horse Protections -- calculated under the assumption that the Stalking Horse Protections will equal approximately $2,000,000. Successive Qualified Offers will be considered only if they exceed the previous offer by $500,000. The Debtors may recess the Offer Evaluation Process from time to time in their discretion to assess Qualified Offers or permit participants to alter or increase their Qualified Offers. The Debtors may conduct the Offer Evaluation Process as an auction, a series of negotiations or whatever other means it determines in its business judgment. Multiple Lots The Offer Evaluation Process may proceed in multiple lots, provided that any participant will have an opportunity to submit a Qualified Offer on one or more lots or on all lots together, and the Debtors will be free to accept the Qualified Offer or Offers that, alone or in conjunction with others, the Debtors deems to comprise the highest and best offer available. Inventory Unless the Debtors' inventory is sold pursuant to a Qualified Offer approved by the Bankruptcy Court, the Debtors will propose and file with the Bankruptcy Court a program to provide for the return of the Debtors' inventory to the publishers that sold the inventory for values and on terms as agreed by the Debtors and the Official Committee of Unsecured Creditors, or as otherwise ordered by the Bankruptcy Court. The program will be effective after payment of the Closing Payoff Amount. Upon the conclusion of the Offer Evaluation Process, the Debtors will file and serve a supplement identifying the highest and best Qualified Offers, and seek approval of the sale of their assets pursuant to Sections 363 and 365 of the Bankruptcy Code to the party or parties submitting Qualified Offers. The Court sets the hearing on the Sale Motion to March 5, 2007. The Court directs the Debtors to file a schedule of proposed cure amounts for all executory contracts proposed to be assumed and assigned under the Sale Motion. Any objections to (a) the Sale Motion or (b) the proposed cure amounts set forth in the Proposed Cure Schedule must be filed no later than 5:00 p.m. EST, on Feb. 28, 2007. Any objections to the ability of Buyers to provide adequate assurances of future performance under any executory contract proposed to be assumed and assigned under the Sale Motion may be presented at the March 5 Sale Hearing. "We are pleased to enter into this letter of intent with Baker & Taylor and believe it marks a significant milestone in the restructuring of our business," said Gary Rautenstrauch, President and CEO of AMS. "Baker & Taylor is a recognized leader in the book distribution industry and has the experience to seamlessly assume operations and continue meeting the needs of our customers." "An agreement with AMS will represent an important strategic addition to Baker & Taylor's business. We are excited about the opportunity to work with AMS to foster and broaden the commitment to customer service and operational excellence that AMS is known for," stated Richard Willis, Chairman, President and CEO of Baker & Taylor. About Baker & Taylor Baker & Taylor, founded in 1828, is the world's leading distributor of books, video, and music products to public and academic libraries. It is also a global leader in the distribution of books and entertainment products to many of the country's leading brick and mortar retailers, Internet retailers, as well as thousands of independent book, music and video stores. Baker & Taylor is based in Charlotte, North Carolina and is ranked in the top 250 US private companies by Forbes magazine. It serves customers in 125 countries around the world and has six distribution facilities strategically located throughout the country. Baker & Taylor is a portfolio company of Castle Harlan Partners IV, L.P. About Castle Harlan Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 20 investment professionals has completed 48 acquisitions since its inception with a total value in excess of $9 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960's. Castle Harlan's current portfolio companies, which employ more than 42,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; RathGibson, a leader in the manufacture of stainless steel and high alloy precision-welded tubing; and, Perkins & Marie Callender's Inc., which operates and franchises 618 family restaurants in the United States and Canada. 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. AGENIX LIMITED: Posts AU$4.7-Mln. Loss for HY-Ended Dec. 2006 ------------------------------------------------------------- For the half-year ended Dec. 31, 2006, Agenix Limited posted a consolidated loss of AU$4.7 million, down AU$1.2 million from AU$5.9 million loss incurred during the same period in 2005. Revenue declined to AU$4.6 million from AU$7.7 million in the previous corresponding half year as Agenix implemented its corporate strategy, for wholly owned subsidiary Agen Biomedical Ltd, of selling its non-core Animal Health and Human Health businesses to develop a broader development pipeline of monoclonal antibody-based products. Despite the reduced revenue, continued cost cutting resulted in the lower loss. Research and development expenditure in relation to the ThromboView(R) project was down 42% at AU$2.9 million for the six months ended Dec. 31, 2006, compared to AU$5.0 million for the previous corresponding period. Agenix is currently finalizing the design of its proposed Phase II pulmonary embolism clinical trial after the announcement of strong results in the previous Phase Ib PE trial and the Phase II deep vein thrombosis trial. In addition, employee related expenditure was down AU$1.1 million. A further reduction in staff numbers will occur with the sale of the Human Health business, including the announced transaction with American Diagnostica Inc., which settled on February 28. At Dec. 31, 2006, Agenix had cash of AU$5.0 million. About Agenix Agenix Limited -- http://www.agenix.com/-- is a global health and biotechnology Company based in Brisbane, Australia. The Company runs a suite of established businesses in human and animal health diagnostics, and is focused on growing its world- leading molecular diagnostic imaging R&D program. Agenix's lead candidate is its high-technology ThromboView blood clot-imaging project, which is currently undergoing Phase II human trials in the United States and Canada. ThromboView uses radio-labeled antibodies to locate blood clots in the body, and could revolutionize the US$3 billion global clot diagnostic imaging market. ThromboView is being developed with the assistance of the Federal Government through its START scheme. Agenix employs 110 staff and sells its products to more than 50 countries. ThromboView is a registered trademark of AGEN Biomedical. The Troubled Company Reporter - Asia Pacific reported on Nov. 3, 2006, that Agenix's consolidated net loss for FY 2005-06 fell to AU$3.721 million from the previous year's AU$13.616 million. Agenix ended 2003 with a AU$811,000 net loss, owing to huge R&D expense on Thromboview. The Company had announced a AU$14.3- million loss for the six months ending June 30, 2004, largely due to increased investments and one-off items including legal fees associated with the Synbiotics patent case which was resolved earlier, costs associated with the terminated Peptech merger, additional licenses, improvements made to manufacturing and regulatory infrastructure and losses associated with Milton Pharmaceuticals. ALI MAY: Members to Receive Wind-Up Report ------------------------------------------ Ali May Clothing Pty Limited will hold a final meeting for its members on March 28, 2007, at 10:00 a.m. At the meeting, the liquidator will present the final accounts of the company's wind-up proceedings and property disposal. As reported by the Troubled Company Reporter - Asia Pacific, the company was placed under liquidation on Dec. 13, 2005. The company's liquidator can be reached at: Arthur Eady Arthur Eady & Co. Level 6 131 Clarence Street Sydney Australia About Ali May Ali May Clothing Pty Limited is a distributor of non-durable goods. The company is located in New South Wales, Australia. BANOR HOLDINGS: Members Opt to Wind Up Operations ------------------------------------------------- The members of Banor Holdings Pty Limited -- formerly known as LVP Australia Pty Limited -- decided to wind up the company's operations. Accordingly, P. Ngan was appointed as liquidator. The company's Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia About Banor Holdings Banor Holdings Pty Limited is a distributor of plastic products. The company is located in New South Wales, Australia. CONROCK GROUP: Members and Creditors to Meet on March 29 -------------------------------------------------------- A joint meeting will be held for the members and creditors of Conrock Group Pty Limited on March 29, 2007, at 10:00 a.m. During the meeting, the members and creditors will receive the liquidator's report regarding the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: R. G. Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West, New South Wales 2302 Australia About Conrock Group Conrock Group Pty Limited is a distributor of construction sand and gravel. The company is located in New South Wales, Australia. DANALIZ PTY: To Declare Dividend for Unsecured Creditors -------------------------------------------------------- A first and final dividend will be declared for the unsecured creditors of Danaliz Pty Ltd on March 31, 2007. Creditors are given until March 17, 2007, to formally prove their debts. The company entered wind-up proceedings on Oct. 19, 2005, as reported by the Troubled Company Reporter - Asia Pacific. The liquidator can be reached at: Brian Silvia Ferrier Hodgson Level 13, 225 George Street Sydney, New South Wales 2000 Australia About Danaliz Pty Danaliz Pty Ltd operates auto and home supply stores. The company is located in New South Wales, Australia. EASTLAKES MANAGEMENT: Members Resolve to Liquidate Business ----------------------------------------------------------- At a general meeting held on Feb. 15, 2007, the members of Eastlakes Management Pty Ltd resolved to liquidate the company's business. Accordingly, Peter Charles Hicks was appointed as liquidator. The company's Liquidator can be reached at: Peter Charles Hicks Forsythes Chartered Accountants Level 5, 175 Scott Street Newcastle Australia About Eastlakes Management Eastlakes Management Pty Ltd -- also trading as Eastlakes Automotive Repairs -- operates general automotive repair shops. The company is located in New South Wales, Australia. ELECTRONIC INTERNATIONAL: Final Meeting Slated for March 22 ----------------------------------------------------------- The members and creditors of Electronic International Trade Services Pty Limited will hold a final meeting on March 22, 2007, at 10:45 a.m. During the meeting, the members and creditors will consider the liquidators' report about the company's financial circumstances. The company's liquidators can be reached at: S. J. Parbery A. L. Smith PPB, Level 46, MLC Centre 19 Martin Place Sydney, New South Wales 2000 Australia About Electronic International Electronic International Trade Services Pty Ltd is an investor relation company. The company is located in New South Wales, Australia. ENESCO GROUP: U.S. Trustee Appoints Three-Member Official Panel --------------------------------------------------------------- The United States Trustee for Region 11, appointed three creditors to serve on an Official Committee of Unsecured Creditors in Enesco Group, Inc. and its debtor-affiliates chapter 11 cases. The Creditors Committee consists of: 1. Victradco Ltd. No. 1, Section 4 7F Zhong Xiad East Road Taipei 106, Taiwan Representative: Terry Chang 2. Disney Enterprises, Inc. 500 South Buena Vista Street Burbank, CA 91521 Representative: Alec M. Lipkind The Walt Disney Co. 77 West 66th Street, 15th Floor New York, NY 10023 3. Jim Shore Design, Inc. 426 North Main Street Health Springs, SC 29058 Representatives: Michael Molinaro Stanley F. Orszula Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtor's expense. They may investigate the Debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Enesco Group Headquartered in Itasca, Illinois, Enesco Group, Inc. --- http://www.enesco.com/-- is a producer of giftware, and home and garden d,cor products. Enesco's product lines include some of the world's most recognizable brands, including Disney, Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane, Border Fine Arts, among others. Enesco distributes products to a wide array of specialty gift retailers, home decor boutiques and direct mail retailers, as well as mass-market chains. The company serves markets operating in Europe, Australia, Mexico, Asia and the Pacific Rim. With subsidiaries in Europe, Canada and a business unit in Hong Kong, Enesco's international distribution network leads the industry. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors. The Debtors' financial condition as of Nov. 30, 2006, showed total assets of US$155,350,698 and total debts of US$107,903,518. ENESCO GROUP: Committee Retains Adelman & Gettleman as Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Enesco Group, Inc. and its debtor-affiliates chapter 11 cases obtained permission from the United States Bankruptcy Court for the Northern District of Illinois to retain Adelman & Gettleman, Ltd., as its bankruptcy counsel. Adelman & Gettleman is expected to: (a) advise the Committee with respect to its duties and powers in these cases; (b) consult with the Debtors, its counsel and other professionals concerning the administration of these cases; (c) assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' businesses and the desirability of the continuance of such businesses, and any other matter relevant to these cases or the formulation of a plan; (d) participate with the Committee in the formulation of a plan, if appropriate under the circumstances; (e) assist the Committee in requesting the appointment of a trustee or examiner, should such action be necessary; and (f) perform such other legal services as may be required in the interest of creditors. The Committee discloses that the firm's attorneys bill: Professional Hourly Rate ------------ ----------- Howard L. Adelman, Esq. US$440 Chad H. Gettleman, Esq. US$440 Henry B. Merens, Esq. US$440 Brad A. Berish, Esq. US$415 Mark A. Carter, Esq. US$415 Adam P. Silverman, Esq. US$385 Nathan Q. Rugg, Esq. US$340 Steven B. Chaiken, Esq. US$250 Mr. Gettleman, a shareholder of Adelman & Gettleman, assures the Court that his firm does not represent any interest adverse to the Debtors or their estates. Mr. Gettleman can be reached at: Chad H. Gettleman, Esq. Adelman & Gettleman, Ltd. 53 West Jackson Boulevard, Suite 1050 Chicago, Illinois 60604-3701 Tel: (312) 435-1050 Fax: (312) 435-1059 http://www.adelmangettlemanlaw.com/ About Enesco Group Headquartered in Itasca, Illinois, Enesco Group, Inc. --- http://www.enesco.com/-- is a producer of giftware, and home and garden d,cor products. Enesco's product lines include some of the world's most recognizable brands, including Disney, Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane, Border Fine Arts, among others. Enesco distributes products to a wide array of specialty gift retailers, home decor boutiques and direct mail retailers, as well as mass-market chains. The company serves markets operating in Europe, Australia, Mexico, Asia and the Pacific Rim. With subsidiaries in Europe, Canada and a business unit in Hong Kong, Enesco's international distribution network leads the industry. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors. The Debtors' financial condition as of Nov. 30, 2006, showed total assets of US$155,350,698 and total debts of US$107,903,518. FASCIALE FUTURES: S. Fasciale in Court on ASIC Charges ------------------------------------------------------ On Feb. 27, 2007, Spartaco Fasciale appeared in the Melbourne Magistrates Court on charges brought by the Australian Securities and Investments Commission. Mr. Fasciale, the sole director of Fasciale Futures Trading Pty Ltd, has been charged with 15 counts of obtaining a financial advantage by deception and 108 counts of breaching director's duties. These charges follow an ASIC investigation into Mr. Fasciale's conduct between March 2004 and May 2006. During this period, the ASIC alleges that nine individuals collectively invested over AU$1.4 million with Fasciale Futures and that their principal investments have not been repaid as of Feb. 28, 2007. The matter will return to the Melbourne Magistrates Court on May 22, 2007, for a committal mention hearing. The Commonwealth Director of Public Prosecutions is prosecuting the matter. ASIC's Proceedings On May 10, 2006, the ASIC commenced urgent ex-parte proceedings after concerns raised by individuals that returns due from their investments with Fasciale Futures and Spartaco Fasciale have not been paid, and that Mr. Fasciale was a flight risk. The ASIC also obtained interim orders restraining Fasciale Futures from dealing with its assets and prohibiting Mr. Fasciale from leaving Australia. On May 24, 2006, the ASIC obtained final orders by consent in the Federal Court of Australia to wind up Fasciale Futures on the grounds of insolvency. The Court also restrained Mr. Fasciale from dealing with or disposing of his assets until further orders and from leaving Australia until August 2007. Mr. Fasciale consented to these orders being made. On Feb. 19, 2007, the Court by consent discharged the restraining order relating to Mr. Fasciale's assets. About Fasciale Futures The Troubled Company Reporter - Asia Pacific reported on May 26, 2006, that at the Australian Securities and Investments Commission's request, the Federal Court in Melbourne entered an order to wind up Fasciale Futures Trading Pty Ltd on grounds of insolvency. The Court appointed Michael Scales and Guy Alexander Edwards, of PKF Chartered Accountants, as official liquidators for the Company. FOOD-SHARE AUSTRALIA: Liquidator to Present Wind-Up Report ---------------------------------------------------------- John Vouris, as liquidator of Food-Share Australia Limited, will present the company's wind-up report at the final meeting to be held on March 28, 2007, at 10:15 a.m. Mr. Vouris can be reached at: John Vouris Lawler Partners Level 7, 1 Margaret Street Sydney, New South Wales 2001 Australia Telephone:(02) 8346 6000 About Food-Share Australia Food-Share Australia -- http://www.foodshare.com.au-- is a unique, non-profit, self-help community development program that provides Australians who are living on the poverty line, with the opportunity to purchase good quality, wholesome food at a low cost, enabling them to stretch their food dollars. Located in New South Wales, Australia, Food-Share is a hand-up program, not a hand-out program. No donated goods are used. Food-Share directly purchases fresh, frozen and dry produce from growers, wholesalers and manufacturers. Once a month, participants pay US$15.00 and undertake 2 hours of voluntary community service. In return they receive a nutritionally balanced box of food worth around US$35.00. HANDS OZ: Members and Creditors to Meet on March 30 --------------------------------------------------- The members and creditors of Hands Oz Therapeutic Bodywork Pty Limited will hold a final meeting on March 30, 2007, at 11:00 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: P. Ngan Ngan & Co, Level 5 49 Market Street Sydney, New South Wales 2000 Australia About Hands Oz Hands Oz Therapeutic Bodywork Pty Ltd is a distributor of physical fitness facilities. The company is located in New South Wales, Australia. LAFAYETTE MINING: Rapu-Rapu Plant Resumes Production ---------------------------------------------------- The Pollution Adjudication Board has issued a final lifting order, authorizing Rapu Rapu Processing, Inc., to immediately resume production of copper and zinc concentrates from its base metals plant on the island of Rapu Rapu in the Republic of the Philippines, Lafayette Mining Limited said in a statement. The FLO represented the last substantive condition precedent for the completion of the US$15 million convertible note issue approved by Lafayette shareholders in 2006. The principal investor in the notes, South East Asian Strategic Assets Fund, has accordingly confirmed that Financial Close has been achieved. Issue of the notes and receipt of the subscription moneys was completed last week. The proceeds of the note issue are available to provide working capital for the ramp up of the base metals plant. An amount of US$3 million will be set aside to fund an accelerated exploration program with initial focus on the western end of the existing Ungay open cut deposit to delineate possible extensions in the ore body at depth and along strike. Multi Option Facility and Concentrate Sales In the meantime, funding for the restoration project has been sourced from the Multi Option Facility established by Lafayette late last year with the project bank group and the proceeds of the stockpile financing facility provided by LG International for the concentrate produced immediately before Supertyphoon Reming caused a suspension of operations at the end of November 2006. On Feb. 2, 2007, US$1.145 million was received in respect of stockpiled copper concentrate and a further US$900,000 was expected to be received for additional copper and stockpiled and bagged zinc concentrate. Options Issued The terms of the Multi Option Facility and the funding provided for the settlement of the December 2006 base metal forward sale contracts required Lafayette to issue unlisted options to the relevant banks to purchase Lafayette ordinary shares at a 20% premium to the average share price over a period prior to the date on which the entitlement vested -- Jan. 31, 2007, if the FLO had not been issued by that date. No other establishment or participation fees are payable to the banks by Lafayette for these facilities, the company notes. In full satisfaction of that requirement, Lafayette issued 91,164,190 options on Feb. 7, 2007, with an exercise price of 10.6 cps. Each bank received four options for each U.S. dollar amount of the relevant facility. About Lafayette Mining Headquartered in Melbourne, Australia, Lafayette Mining Limited -- http://www.lafayettemining.com/-- through its subsidiary companies and Philippine partners, holds an interest in the Rapu-Rapu polymetallic project in the Philippines. Rapu Rapu Island is approximately 350 kilometers south of Manila. During the fiscal year ended June 30, 2006, the Company was engaged in the development of polymetallic mineral prospects on Rapu Rapu Island and the production of precious metals and base metals. The Rapu-Rapu mineral resource supports an eight-year mine life capable of producing approximately 10,000 tons of copper in concentrates, 14,000 tons of zinc in concentrates, 50,000 ounces of gold and 600,000 ounces of silver annually. The project was suspended by the national government's Department of Environment and Natural Resources after two incidents in 2005 that resulted in discharges of contaminated liquid. Going Concern Doubt After reviewing the company's half-year (ended June 30, 2006) accounts, HLB Mann Judd, the company's independent auditors, raised significant uncertainty on the company's going concern "unless its license to operate the Rapu Rapu polymetallic project on a commercial basis are fully restored in the near future, and unless ongoing funding initiatives are successful." The auditors pointed out that the balance sheet of the group as of June 30, 2006, disclosed a net working capital deficiency of AU$89,748,451 and a deficiency in net assets of AU$172,202,840. The working capital deficiency takes into account a current liability of AU$88,547,226 being the current portion of unrealised losses on base and precious metals forward sales contracts. MERIDIAN FOREX: Members Resolve to Close Business ------------------------------------------------- On Feb. 15, 2007, the members of Meridian Forex Pty Limited met at a general meeting and resolved to wind up the company's operations. Accordingly, Stephen Gower Baker was appointed as liquidator. The company's Liquidator can be reached at: Stephen Gower Baker Stephen Baker & Co Chartered Accountant Suite 2, 98 Woolwich Road Woolwich, New South Wales 2110 Australia Telephone: 9817 6427 Facsimile: 9879 0964 About Meridian Forex Meridian Forex Pty Limited is involved in loan brokerage. The company is located in New South Wales, Australia. MICHAEL CHARLES: Names de Vries and Tayeh as Liquidators -------------------------------------------------------- At a general meeting held on Feb. 8, 2007, the members of Michael Charles Jewellers Pty Limited resolved to wind up the company's operations. Accordingly, Antony de Vries and Riad Tayeh were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Antony de Vries Riad Tayeh de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia About Michael Charles Michael Charles Jewellers Pty Ltd operates jewelry stores. The company is located in New South Wales, Australia. NORSKE SKOGINDUSTRIER: To De-Merge Non-Core Real Properties ----------------------------------------------------------- Norske Skogindustrier ASA has initiated a process for de-merging most of its real property unrelated to paper production. Since the resulting property company will be a wholly owned subsidiary of Norske Skogindustrier ASA, the consolidated balance sheet will not be affected by this transaction. The most important properties include Klosteroya in Skien, the head office with surrounding land in Baerum outside Oslo, and a farming and residential area in Trondheim. This proposal will be considered by the board of directors at its meeting on March 1, and is subject to final approval by the annual general meeting on April 12. About Norske Skog Headquartered in Lysaker, Norway, Norske Skogindustrier ASA -- http://www.norskeskog.com/-- manufactures paper and pulp. It produces long and short fiber sulphate pulp, newsprint, bleached Kraft paper and others. The Company owns and operates paper mills in Europe, Asia, Australia, Africa and North and South America. Norske has posted three consecutive annual net losses of EUR116.3 million in 2004, EUR315.4 million in 2003, and EUR849 million in 2002. It has paper mills in Chile and Brazil. * * * As of Feb. 14, Norske Skog carries these ratings: Moody's: -- Long-Term Corporate Family: Ba1 -- Senior Unsecured Debt: Ba1 -- Outlook: Stable Standard & Poor's: -- Long-Term Foreign Issuer Credit: BB+ -- Long-Term Local Issuer Credit: BB+ -- Short-Term Foreign Issuer Credit: B -- Short-Term Local Issuer Credit: B -- Outlook: Stable NORSKE SKOGINDUSTRIER: To Invest NOK330 Million Into Skogn Unit --------------------------------------------------------------- Norske Skogindustrier ASA is to invest NOK330 million at its Norske Skog Skogn mill in mid-Norway in order to boost its competitiveness and further improve the quality of the paper it produces. The project will cut annual electricity consumption at the mill by 250 GWh or 17%. State-owned company Enova is contributing NOK50 million to the work. "Energy saving measures are one of our top priorities," Christian Rynning-Tonnesen, chief executive of Norske Skog, said. "I'm very pleased that the government, through Enova, is helping to make this project profitable. The changes being made are optimal because they not only reduce energy consumption and costs at Norske Skog Skogn but also improve paper quality." The project will kick off this year, and is due to be completed by the end of 2009. Norske Skog Skogn's production is currently based on paper pulp from wood and recovered paper. Once the work has been done, the proportion of wood will be slightly reduced and replaced by cheaper fillers and increased use of recovered paper. That will enhance the mill's competitiveness while meeting customer requirements for a larger proportion of recycled fiber in their newsprint. About Norske Skog Headquartered in Lysaker, Norway, Norske Skogindustrier ASA -- http://www.norskeskog.com/-- manufactures paper and pulp. It produces long and short fiber sulphate pulp, newsprint, bleached Kraft paper and others. The Company owns and operates paper mills in Europe, Asia, Australia, Africa and North and South America. Norske has posted three consecutive annual net losses of EUR116.3 million in 2004, EUR315.4 million in 2003, and EUR849 million in 2002. * * * As of Feb. 14, Norske Skog carries these ratings: Moody's: -- Long-Term Corporate Family: Ba1 -- Senior Unsecured Debt: Ba1 -- Outlook: Stable Standard & Poor's: -- Long-Term Foreign Issuer Credit: BB+ -- Long-Term Local Issuer Credit: BB+ -- Short-Term Foreign Issuer Credit: B -- Short-Term Local Issuer Credit: B -- Outlook: Stable NORSKE SKOGINDUSTRIER: Posts NOK3-Billion Net Loss for 2006 ----------------------------------------------------------- Norske Skogindustrier ASA released its financial results for the full year and fourth quarter ended Dec. 31, 2006. Norske Skog registered NOK3.02 billion in net losses on NOK28.83 billion in revenues for the full year 2006, compared with NOK848 million in net losses on NOK25.73 billion in revenues for 2005. Norske Skog posted NOK209 million in net profit on NOK7.72 billion in revenues for the fourth quarter 2006, compared with NOK1 billion in net losses on NOK7.11 billion in revenues for the same period in 2005. As of Dec. 31, 2006, Norske Skog had NOK45.23 billion in total assets, NOK26.28 billion in total liabilities and NOK18.55 billion in shareholders' equity. "Major changes that will have long-term effects for Norske Skog characterized 2006," Christian Rynning-Tonnesen, chief executive, said. "The company acquired a new corporate management and a changed organizational structure, an extensive turnaround was launched, we closed five paper machines and resolved to transfer one of these to Brazil. The turnaround is intended to improve profits by NOK3 billion by the end of 2008. With the commitment now being made by the whole organization, I am very optimistic about reaching our target." Earnings Improvement Plan The plan aims to achieve an increase of NOK3 billion in gross operating earnings for the Norske Skog group by the end of 2008, compared with the 2005 level and 2005 market and cost conditions. Roughly speaking, the plan comprises these elements: -- cost reductions based on restructuring the mill portfolio, with effects from the closure of Norske Skog Union largely realized in 2006. The remainder will primarily come in 2007; -- de-manning by 1,000 jobs in addition to more than 600 employees who have left as a result of implemented closures. Reductions at head office and regional offices have largely been completed, while the process is under way in the various business units. It is due for completion during 2008; and -- measures to improve productivity and cost reductions in procurement, energy optimization, sales and logistics. Measures were originally identified in more than 40 areas, but a number of other improvement proposals have been made in the subsequent process which involves the business units. To the extent that improvement measures require investment, this will fall within the framework of normal capital spending by the group. A team of productivity experts has carried out a design study at Norske Skog Jeonju. A pilot has since been carried out at Norske Skog Golbey, with good result. The program, Norske Skog Production Systems, will later be rolled out at the other mills. The profit improvement program is progressing as planned. Gross operating earnings for 2006 were positively affected by NOK400 million compared with 2005 as a result of initiatives already implemented. Detailed plans exist at each business unit for implementing the program, and these plans are incorporated in the group's system for performance measurement. Performance-based remuneration is practiced to a considerable extent in Norske Skog, and takes the form of bonus payments if specified targets are met. In connection with the plan to improve earnings, a special bonus program will be established for all group employees. This program will be based on the overall improvement in the group's earnings. About Norske Skog Headquartered in Lysaker, Norway, Norske Skogindustrier ASA -- http://www.norskeskog.com/-- manufactures paper and pulp. It produces long and short fiber sulphate pulp, newsprint, bleached Kraft paper and others. The Company owns and operates paper mills in Europe, Asia, Australia, Africa and North and South America. Norske has posted three consecutive annual net losses of EUR116.3 million in 2004, EUR315.4 million in 2003, and EUR849 million in 2002. It has paper mills in Chile and Brazil. * * * As of Feb. 14, Norske Skog carries these ratings: Moody's: -- Long-Term Corporate Family: Ba1 -- Senior Unsecured Debt: Ba1 -- Outlook: Stable Standard & Poor's: -- Long-Term Foreign Issuer Credit: BB+ -- Long-Term Local Issuer Credit: BB+ -- Short-Term Foreign Issuer Credit: B -- Short-Term Local Issuer Credit: B -- Outlook: Stable RHSS LIMITED: Members to Meet on March 27 ----------------------------------------- The members of Rhss Limited will meet 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. In a report by the Troubled Company Reporter - Asia Pacific, the company went into liquidation on Nov. 28, 2006. The company's liquidators can be reached at: David Clement Pratt Timothy James Cuming PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia About Rhss Limited Rhss Limited -- trading as St Vincent's Hospital & Health Service -- operates general medical and surgical hospitals. The company is located in Queensland, Australia. SUBIACO HERBS: Members and Creditors to Meet on March 27 -------------------------------------------------------- A joint meeting of the members and creditors of Subiaco Herbs Pty Limited will be held on March 27, 2007, at 10:00 a.m. At the meeting, the members and creditors will be asked to: -- consider the liquidator's accounts of his acts and dealings during the wind-up proceedings; and -- discuss other matters that are brought forward before the meeting. The liquidator can be reached at: Martin John Green GHK Green Krejci Level 9, 179 Elizabeth Street Sydney, New South Wales 2000 Australia About Subiaco Herbs Subiaco Herbs Pty Limited is a distributor of field crops, except cash grains. The company is located in New South Wales, Australia. TRANSAX INTERNATIONAL: Commits to Repay US$1.6 Mln. Investment -------------------------------------------------------------- Transax International Limited has entered into a Standstill Agreement with its Series A Preferred Shareholder, Cornell Capital Partners LP. The company also signed a similar Standstill Agreement with convertible note holder Scott and Heather Grimes. Under the terms of the agreements, and subject to the conditions specified therein, the Preferred Stockholder and Convertible Note Holder have agreed that they will not convert or sell any of their holdings during the standstill period, which extends until April 30, 2007. As a result of the agreement, the company has committed to a full repayment of the $1.6 million equity investment along with the redemption premium to Cornell as well as a similar arrangement for the $225,000 convertible debenture to Scott and Heather Grimes. A full-text copy of Cornell's Standstill Agreement is available for free at http://ResearchArchives.com/t/s?1a23 A full-text copy of the Grimeses' Standstill Agreement is available for free at http://ResearchArchives.com/t/s?1a24 Stephen Walters, president and CEO of Transax, commented, "'Last month we announced our intent of selling our Brazilian operations and satisfying all outstanding liabilities. To this extent, we have signed these standstill agreements with the anticipation of closing the proposed transaction in the coming weeks. These agreements are the first step to ultimately reducing our liabilities, as well as alleviating concerns within the investment community regarding our obligations." About Transax International Limited Based in Miami, Florida, Transax International Limited (OTCBB: TNSX) -- http://www.transax.com/-- provides health information management systems to hospitals, physicians and health insurance companies. The company's subsidiaries, TDS Telecommunication Data Systems LTDA provides services in Brazil; Transax Australia Pty Ltd. operates in Australia; and Medlink Technologies Inc. initiates research and development. At Sept. 30, 2006, the company's balance sheet showed US$2,003,214 in total assets, US$6,179,904 in total liabilities, resulting in a $4,176,690 in total stockholders' deficit. WENHAM BUILDERS: Supreme Court Issues Wind-Up Order --------------------------------------------------- The Supreme Court of New South Wales issued an order to wind up the operations of Wenham Builders Pty Limited on Feb. 12, 2007. In this regard, Sule Arnautovic was appointed as liquidator. The company's Liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 About Wenham Builders Wenham Builders Pty Limited is a general contractor of residential buildings, other than single-family. The company is located in New South Wales, Australia. ZINIFEX LTD: EU Commission Approves Joint Venture Proposal ---------------------------------------------------------- On Feb. 28, 2007, the European Commission has formally approved the proposed merger of Zinifex and Umicore's respective smelting and alloying assets. On Dec. 12, 2007, Zinifex and Umicore announced that they had signed a Memorandum of Understanding to create the world's pre- eminent zinc smelting and alloying company with 1.2 million tones of production and operations on four continents. As part of the regulatory approval process the two companies had formally filed their notification to the European Commission's Directorate-General for Competition of the proposed merger on Jan. 22, 2007. According to Zinifex's Chief Executive Officer Greig Gailey, both parties are continuing to work together to complete final due diligence and structuring discussion with a view to signing the binding Business Combination and Shareholders' Agreement, by the end of the first quarter of 2007. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter - Asia Pacific reported on Aug. 9, 2006, that Fitch Ratings assigned Zinifex a Long-term foreign currency Issuer Default Rating of 'BB+' with a Stable Outlook. According to Fitch, the rating is unaffected by Zinifex's announcement of a proposed transaction with Belgium-based specialty metals group Umicore to merge their respective zinc smelting and alloying businesses, a Dec. 14, 2006, TCR-AP report noted. ================================ C H I N A & H O N G K O N G ================================ BOE TECHNOLOGY: Will Sell Remaining TPV Tech Shares ---------------------------------------------------- BOE Technology Group plans to sell all of its remaining stocks in TPV Technology at an appropriate time, according to DigiTimes, citing a report from Dow Jones. In a filing with the Hong Kong Stock Exchange, BOE said that it sold 10.29% of TPV's stocks on Jan. 18, 2007. Boe Tech, however, said that it will not sell its remaining 11.56% within 90 days. Reuters placed the shares at around 224,360,191. * * * Based in Beijing, BOE Technology Group Co., Ltd. (BOE) is a manufacturer of display devices and digital products. Based in Beijing, the People's Republic of China, the Company operates seven key divisions: Thin-Film Transistor-Liquid Crystal Display (TFT-LCD); Monitor & Panel Television (TV), offering cathode ray tube (CRT) monitors, TFT-LCD monitors, TFT-LCD TVs and plasma display panel (PDP) TVs; Mobile Display System, providing super twisted nematic-LCD (STN-LCD) and organic light-emitting display (OLED); Special Application Display, supplying vacuum fluorescent display (VFD) and light-emitting display (LED); CRT, producing CRTs together with Toshiba and Panasonic; Precision Electronic Component & Material, and Digital Display Product & Display Application System. Xinhua Far East China Ratings gave the company a CC issuer credit rating on October 24, 2006. BOE TECHNOLOGY: To Merge with SVA Group --------------------------------------- BOE Technology and Shanghai-based SVA Group have agreed to merge their operations, Taipei Times reports. According to the Times, the companies said they expect to sign an agreement before June 30, 2007. The report explains that the companies, which mostly sell panels for computer monitors 17 inches diagonally in size, have suffered losses as the price of these products fell. The company formed through the merger will be based in Shanghai. However, other details were not disclosed. The Times opines that both may be able to increase profitability two years after merging their LCD operations. Based in Beijing, BOE Technology Group Co., Ltd. (BOE) is a manufacturer of display devices and digital products. Based in Beijing, the People's Republic of China, the Company operates seven key divisions: Thin-Film Transistor-Liquid Crystal Display (TFT-LCD); Monitor & Panel Television (TV), offering cathode ray tube (CRT) monitors, TFT-LCD monitors, TFT-LCD TVs and plasma display panel (PDP) TVs; Mobile Display System, providing super twisted nematic-LCD (STN-LCD) and organic light-emitting display (OLED); Special Application Display, supplying vacuum fluorescent display (VFD) and light-emitting display (LED); CRT, producing CRTs together with Toshiba and Panasonic; Precision Electronic Component & Material, and Digital Display Product & Display Application System. Xinhua Far East China Ratings gave the company a CC issuer credit rating on October 24, 2006. BOE TECHNOLOGY: Expects Another Loss for 2006 --------------------------------------------- BOE Technology has said that it expected to post a second consecutive annual net loss for 2006, according to Taipei Times. The Times recounts that the company posted a loss of CNY108.9 million yuan in the third quarter of last year, compared with a loss of CNY379.1 million a year earlier. Based in Beijing, BOE Technology Group Co., Ltd. (BOE) is a manufacturer of display devices and digital products. Based in Beijing, the People's Republic of China, the Company operates seven key divisions: Thin-Film Transistor-Liquid Crystal Display (TFT-LCD); Monitor & Panel Television (TV), offering cathode ray tube (CRT) monitors, TFT-LCD monitors, TFT-LCD TVs and plasma display panel (PDP) TVs; Mobile Display System, providing super twisted nematic-LCD (STN-LCD) and organic light-emitting display (OLED); Special Application Display, supplying vacuum fluorescent display (VFD) and light-emitting display (LED); CRT, producing CRTs together with Toshiba and Panasonic; Precision Electronic Component & Material, and Digital Display Product & Display Application System. Xinhua Far East China Ratings gave the company a CC issuer credit rating on October 24, 2006. CHEERGOLD INVESTMENT: Shareholders to Hear Wind-Up Report --------------------------------------------------------- The shareholders of Cheergold Investment Limited will hold a final general meeting on March 30, 2007, at 11:00 a.m., at 12th Floor, New World Tower II in 18 Queen's Road Central, Hong Kong. At the meeting, the shareholders will hear the liquidators' report regarding the company's wind-up proceedings and property disposal. CHEUNG MAN: Members' Final Meeting Slated for March 28 ------------------------------------------------------ Cheung Man Sik Limited, which is in members' voluntary liquidation, will hold a final meeting for its members on March 28, 2007, at 10:00 a.m., at 9/F, Asia Standard Tower in 59-65 Queen's Road Central, Hong Kong. GALLAS PUBLISHING: Liabilities Prompts Wind-Up ---------------------------------------------- At an extraordinary general meeting held on Feb. 13, 2007, the members of Gallas Publishing Group Limited decided to wind up the company's operations, due to its inability to pay its debts. Accordingly, James Wardell and Jackson Ip were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: James Wardell Jackson Ip Room 1601-1602, 16/F. One Hysan Avenue, Causeway Bay Hong Kong HEILONGJIANG SUNFIELD: Expects to Profit Due to Subsidy ------------------------------------------------------- Heilongjiang SunField Science & Tech Co. expects its full year 2006 net profit to be in the range of CNY0.5 million to CNY1 million after it received CNY3.5 million fiscal subsidy from the Finance Bureau of Mudanjiang, Reuters Key Development says. Headquartered in Mudanjiang, Heilongjiang Province, China, Heilongjiang SunField Science & Technology Co., Ltd., a Chinese company incorporated in 1993, is principally engaged in the production and sale of petrochemical products. Gasoline, diesel oil, ethyne are the Company's main products. The Company distributes all of its products in the domestic market. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$49.18 million, on total assets of US$29.96 million. INNER MONGOLIA: Mitsui & Co., Ltd. Buys Shares in Unit ------------------------------------------------------- Mitsui & Co., Ltd. will purchase 600 million shares in an Inner Mongolia-based electric power metallurgy company, a 54%-owned subsidiary of Inner Mongolia Eerduosi Cashmere Products Co., Ltd, at a price of no less than CNY1.3 per share, Reuters reports. In addition, Reuters relates that Mitsui & Co. will acquire 300 million shares, accounting for a 10% stake of the Inner Mongolia-based electric power metallurgy company from a cashmere investment company. After the transaction, Inner Mongolia Eerduosi and Mitsui & Co will hold a 45% stake and 25% stake of the Inner Mongolia-based electric company respectively. The cashmere investment company, meanwhile, will divest all of its shares, Reuters says. * * * Based in Dongsheng, Inner Mongolia Meng Autonomous Region, the People's Republic of China, Inner Mongolia Eerduosi Cashmere Products Co., Ltd. is principally engaged in the manufacture and sale of cashmere products and de-haired cashmere, cashmere yarn, cashmere sweaters, cashmere coats, silk/cashmere blended products, cashmere fashions, Nano materials, electrically conductive fibers, healthcare fibers and other products. Xinhua Far East China Ratings downgraded the company's issuer credit rating to BB+ from BBB- on December 21, 2006. Its rating outlook is changed to stable from negative. JINAN IRON: Merges with Laiwu Iron ---------------------------------- Jinan Iron and Steel Group will merge with Laiwu Iron & Steel Group Co to form a new company, Shandong Iron and Steel Group, Bloomberg reports. The new company will then gradually move its production facilities to Rizhao port, Bloomberg says, quoting the Shanghai Securities News, citing undidentified officials at the provincial government of Shandong. Jinan Iron announced the merger plan on Aug. 1, 2006, Bloomberg recounts. * * * Headquartered in Jinan, Shandong Province, China, Jinan Iron & Steel Co., Ltd is principally engaged in the manufacture and sale of iron and steel products. The company mainly offers medium to heavy steel plates and deformed steel bars. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on January 17, 2005. LANE CRAWFORD: Creditors Must File Claims by March 30 ----------------------------------------------------- The creditors of Lane Crawford (Beijing) Limited, Lane Crawford (Guangzhou) Limited, and Lane Crawford (Shanghai) Limited are required to prove their debts by March 30, 2007. Failure to prove debts by the due date will exclude a creditor from sharing in the companies' distribution of dividend. The joint liquidators can be reached at: Katherine Fung Wai Yee Chan Man To 23rd Floor, Wheelock House 20 Pedder Street, Central Hong Kong LIVINGSTON COMPANY: Taps Clara Fung Pui Ling as Liquidator ---------------------------------------------------------- On Feb. 12, 2007, a resolution to wind up the operations of Livingston Company Limited was passed by the company's shareholders. In this regard, Clara Fung Pui Ling was appointed as Livingston's liquidator. The company's liquidator can be reached at: Clara Fung Pui Ling 11 Magazine Gap Road Apartment PHB, The Harbourview Hong Kong NANJING IRON: Restructures Sales and Management Division --------------------------------------------------------- Nanjing Iron & Steel Co., Ltd will restructure its sales and management system, Reuters reports. According to Reuters, the restructuring involves the closing of four of its steel materials sales companies in Nanjing, Xuzhou, and Zhenjiang. The company will then set up sales companies in Beijing, Guangzhou, Chongqing and Shanghai with an aggregate registered capital of approximately CNY30 million. * * * Nanjing, China-based Nanjing Iron & Steel Co.,Ltd. -- http://www.600282.net/-- is primarily engaged in the smelting and processing of ferrous metal and the production and sale of steel products, coke and coke by-products. Its major iron and steel products consist of steel plates, steel bars, steel bands, billets and pig iron. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on January 17, 2005. NANJING IRON: China Steel Seeks Strategic Alliance --------------------------------------------------- China Steel Corporation plans to form a strategic alliance with Nanjing Iron & Steel Co., Ltd after both parties signed a cooperation agreement, Reuters reports, citing Taiwan Economic News. According to Reuters, Nanjing Iron earlier signed a cooperation agreement with China Steel in establishing enterprise resources planning scheme as well as to learn manufacturing technologies already developed by CSC. * * * Nanjing, China-based Nanjing Iron & Steel Co.,Ltd. -- http://www.600282.net/-- is primarily engaged in the smelting and processing of ferrous metal and the production and sale of steel products, coke and coke by-products. Its major iron and steel products consist of steel plates, steel bars, steel bands, billets and pig iron. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on January 17, 2005. PACICO INTERNATIONAL: Placed Under Voluntary Wind-Up ---------------------------------------------------- The shareholders of Pacico International Limited passed a special resolution to wind up the company's operations on Feb. 14, 2007. In this regard, Lai Kar Yan, Derek and Darach E. Haughey were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Lai Kar Yan, Derek Darach E. Haughey 35th Floor, One Pacific Place 88 Queensway Hong Kong ROBHEATH INVESTMENTS: Members to Hear Liquidator's Report --------------------------------------------------------- The members of Robheath Investments Limited will hold a final general meeting on March 26, 2007, at 10:00 a.m., at 1408 World- Wide House in 19 Des Voeux Road Central, Hong Kong. At the meeting, the members will receive the liquidator's report regarding the company's wind-up proceedings and property disposal. SHENZHEN CHINA BICYCLE: Shareholders OK Share Merger Reform ----------------------------------------------------------- Shenzhen China Bicycles Co., (Hlds) Ltd.'s shareholders have approved the company's share merger reform proposal, Reuters Key Development says. Under the terms of the proposal, the company will use paid-in capital to issue 39,519,800 new shares to holders of tradable shares. This compensation plan is equivalent to the ratio of every 10 tradable shares to be given 3.173 shares from holders of non-tradable shares, Reuters notes. Headquartered in Shenzhen, Guangdong Province, China, Shenzhen China Bicycle Company (Holdings) Limited -- http://www.cbc.com.cn/-- is principally engaged in the manufacture and sale of bicycles, electric bicycles and related components. Its product brand is Emmelle. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$224.64 million, on total assets of US$39.13 million. SHENZHEN CHINA BICYCLE: Expects 2006 Net Loss of CNY5 Million ------------------------------------------------------------- Shenzhen China Bicycles Co., (Hlds) Ltd. expects an approximate net loss of CNY5 million for fiscal 2006, as compared to the previous year's net profit of CNY3,838,700, Reuters Key Development says. Headquartered in Shenzhen, Guangdong Province, China, Shenzhen China Bicycle Company (Holdings) Limited -- http://www.cbc.com.cn/-- is principally engaged in the manufacture and sale of bicycles, electric bicycles and related components. Its product brand is Emmelle. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$224.64 million, on total assets of US$39.13 million. SHENZHEN CHINA BICYCLE: Hires Wong Lam As New Auditors ------------------------------------------------------ Shenzhen China Bicycles Co., (Hlds) Ltd. hires Wong Lam Leung & Kwok Investment Consulting Co., Ltd. as the company's overseas auditing firm for fiscal 2006. Headquartered in Shenzhen, Guangdong Province, China, Shenzhen China Bicycle Company (Holdings) Limited -- http://www.cbc.com.cn/-- is principally engaged in the manufacture and sale of bicycles, electric bicycles and related components. Its product brand is Emmelle. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$224.64 million, on total assets of US$39.13 million. SHENZHEN DAWNCOM: Implements Share Merger Reform ------------------------------------------------- Shenzhen Dawncom Business Tech & Service has implemented the company's share merger reform on Jan. 30, 2007, Reuters Key Development reports. According to the terms, the company will use paid-in capital to issue 39,000,002 shares to all holders of tradable shares, who will be given 10 shares for every 10 shares held. This is equivalent to the compensation plan where holders of tradable shares are given 5.553 shares for every 10 shares held, Reuters explains. Reuters recounts that on Jan. 19, 2007, shareholders approved the merger reform. After the issuance, the company's total outstanding shares would increase to 174,620,264, Reuters says, noting that the company will adopt the standard locking period stated by the regulator for its share merger reform. Shenzhen, China-based Shenzhen Dawncom Business Technology and Service Co., Ltd. is principally engaged in the sale of computer network products, computer software, as well as computers and hardware components. The company is also engaged in providing integrated electric automatic products, as well as technical services and business-service platform (BSP) systems. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$37.30 million, on total assets of US$79.84 million. SHENZHEN DAWNCOM: Expects a CNY140 Million Loss For 2006 -------------------------------------------------------- Shenzhen Dawncom Business Tech & Service expects an approximate net loss of CNY140 million for fiscal 2006, Reuters Key Development reports. The company reported a net loss of CNY72,414,960.78 for the fiscal 2005, Reuters recounts. Shenzhen, China-based Shenzhen Dawncom Business Technology and Service Co., Ltd. is principally engaged in the sale of computer network products, computer software, as well as computers and hardware components. The company is also engaged in providing integrated electric automatic products, as well as technical services and business-service platform (BSP) systems. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$37.30 million, on total assets of US$79.84 million. SHENZHEN DAWNCOM: Disclosure Delays Lead to CNY300,000 CSRC Fine ---------------------------------------------------------------- Shenzhen Dawncom Business Tech & Service has been fined CNY300,000 by the China Securities Regulatory Commission because of the non-timely disclosure of its litigation involvement and guarantee liabilities, Reuters Key Development reports. Shenzhen, China-based Shenzhen Dawncom Business Technology and Service Co., Ltd. is principally engaged in the sale of computer network products, computer software, as well as computers and hardware components. The company is also engaged in providing integrated electric automatic products, as well as technical services and business-service platform (BSP) systems. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$37.30 million, on total assets of US$79.84 million. SHENZHEN SHENXIN: Increases Liabilities in Restatement ------------------------------------------------------ Shenzhen Shenxin Taifeng Group Co., Ltd. has restated its fiscal 2005 net profit by CNY40.84 million, Reuters Key Development reports, noting that the company recorded the same amount as liabilities. The restatements came after a court verdict for a litigation dispute came out, Reuters notes. Headquartered in Shenzhen, Guangdong Province, Mainland China, Shenzhen Shenxin Taifeng Group Co., Ltd. -- http://www.sxtf.com.cn/-- is principally engaged in the manufacture, research, development and sale of communication equipment and software products, industrial processing, real estate and agricultural businesses. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$44.65 million, on total assets of US$95.27 million. SIBER HEGNER: Creditors Must Prove Debts by March 26 ---------------------------------------------------- The creditors of Siber Hegner Luxury Limited are required to prove their debts by March 26, 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: Tsang Man Hing 12th Floor, Grand Building Nos. 15-18 Connaught Road, Central Hong Kong SUCCESS INFORMATION: Losses UnionPay Shares in Court Verdict ------------------------------------------------------------ Ningbo Jiangdong Branch of China Merchants Bank has filed a borrowing dispute lawsuit against Success Information Industry Group Co. and its subsidiary, Ningbo Success Investment Holding Ltd, Reuters Key Development relates. According to Reuters, the Intermediate People's Court of Ningbo's ruled that 6,634,880 corporate shares of Chinaunionpay Co., Ltd. held by Success Information will be transferred to a Shenzhen-based investment company. Success Information Industry Group Co., Ltd. -- http://www.000517.com/-- is mainly engaged in the digital video broadcasting (DVB), wireless digital telecommunications and utility metering industries. Its products are classified into five major categories: DVB, including digital video systems, digital satellite receivers, digital cable receivers and digital terrestrial receivers; digital telecommunications, including global system for mobile communication (GSM) fixed wireless terminals, GSM desktop phones and others; utility metering, including electricity meters and integrated circuit (IC) card water metering systems; computer, including motherboards, display cards, universal serial bus products, moving picture experts group audio layer-3 (MP3) products and computer network products, and software products, including wireless broadband application platforms, broadband broadcasting, copyright management, video dedication and operation management systems and geographic information system (GIS) platforms. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$18.67 million, on total assets of US$88.67 million. SUCCESS INFORMATION: Xinhai Investment Repays Debt with Shares -------------------------------------------------------------- Success Information Industry Group Co. would get a 77.25% stake in a Guangzhou-based network development company as part of a debt repayment by Shenzhen Xinhai Investment Holding Co., Ltd., Reuters Key Development reports. The transaction is valued at CNY6,091,085. Success Information Industry Group Co., Ltd. -- http://www.000517.com/-- is mainly engaged in the digital video broadcasting (DVB), wireless digital telecommunications and utility metering industries. Its products are classified into five major categories: DVB, including digital video systems, digital satellite receivers, digital cable receivers and digital terrestrial receivers; digital telecommunications, including global system for mobile communication (GSM) fixed wireless terminals, GSM desktop phones and others; utility metering, including electricity meters and integrated circuit (IC) card water metering systems; computer, including motherboards, display cards, universal serial bus products, moving picture experts group audio layer-3 (MP3) products and computer network products, and software products, including wireless broadband application platforms, broadband broadcasting, copyright management, video dedication and operation management systems and geographic information system (GIS) platforms. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$18.67 million, on total assets of US$88.67 million. SUCCESS INFORMATION: Expects CNY12-M. Profit After Assets Sale -------------------------------------------------------------- Success Information Industry Group Co. expects a net profit of approximately CNY12 million for fiscal 2006, as compared to the previous year's net loss of CNY245,033,529.09, Reuters Key Development reports. Assets Sale Reuters had earlier said that in November 2006, the company -- in an effort to reverse its losses -- sold: * 705,387 shares in Bank of Communications; * 743,600 shares in Silvertie Holding Co., Ltd.; * a 15% stake in Ningbo YongChengTong Intelligence Card Co.; Ltd.; and * 952,800 shares in Ningbo Commercial Bank. According to Reuters, the asset sale came after the company sold the industrial properties in Shangbu, Shenzhen as well as residential buildings in Ningbo, Zhejiang Province, for a total amount of CNY3,046,000. The company plans to sell the construction project in Chenggong Science and Technology Park located in Ningbo, Reuters notes. Success Information Industry Group Co., Ltd. -- http://www.000517.com/-- is mainly engaged in the digital video broadcasting (DVB), wireless digital telecommunications and utility metering industries. Its products are classified into five major categories: DVB, including digital video systems, digital satellite receivers, digital cable receivers and digital terrestrial receivers; digital telecommunications, including global system for mobile communication (GSM) fixed wireless terminals, GSM desktop phones and others; utility metering, including electricity meters and integrated circuit (IC) card water metering systems; computer, including motherboards, display cards, universal serial bus products, moving picture experts group audio layer-3 (MP3) products and computer network products, and software products, including wireless broadband application platforms, broadband broadcasting, copyright management, video dedication and operation management systems and geographic information system (GIS) platforms. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$18.67 million, on total assets of US$88.67 million. SUCCESS INFORMATION: Hires Nanfang Minhe As New Auditors -------------------------------------------------------- Success Information Industry Group Co. has engaged Shenzhen Nanfang Minhe Certified Public Accountants Ltd. as the company's new auditing firm, replacing Shenzhen Tianjian Xinde Certified Public Accountants, Reuters Key Development says. Success Information Industry Group Co., Ltd. -- http://www.000517.com/-- is mainly engaged in the digital video broadcasting (DVB), wireless digital telecommunications and utility metering industries. Its products are classified into five major categories: DVB, including digital video systems, digital satellite receivers, digital cable receivers and digital terrestrial receivers; digital telecommunications, including global system for mobile communication (GSM) fixed wireless terminals, GSM desktop phones and others; utility metering, including electricity meters and integrated circuit (IC) card water metering systems; computer, including motherboards, display cards, universal serial bus products, moving picture experts group audio layer-3 (MP3) products and computer network products, and software products, including wireless broadband application platforms, broadband broadcasting, copyright management, video dedication and operation management systems and geographic information system (GIS) platforms. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$18.67 million, on total assets of US$88.67 million. SKYPORT ENTERPRISES: Creditors' Proofs of Debt Due on March 16 -------------------------------------------------------------- Poon Ka Lee, Barry, as liquidator of Skyport Enterprises Limited, requires the company's creditors to prove their debts by March 16, 2007. The company's Liquidator can be reached at: Poon Ka Lee, Barry 1607 ING Tower 308 Des Voeux Rd C Hong Kong TRIUMPHANT TONE: Members' Final General Meeting Set for March 27 ---------------------------------------------------------------- The members of Triumphant Tone Company Limited will hold a final general meeting on March 27, 2007, at 10:00 a.m., at Room 4908, 49/F., Office Tower Convention Plaza, 1 Harbour Road in Wanchai, Hong Kong. At the meeting, the members will be asked to: -- receive the liquidator's report regarding the company's wind-up proceedings; -- approve and adopt the liquidator's statement of accounts; and -- retain the company's accounts and documents for a period of three months from the company's dissolution and destroy afterwards. As reported by the Troubled Company Reporter - Asia Pacific, the company went into liquidation on Sept. 15, 2006. The liquidator can be reached at: Yiu Kwong Man Rooms 1501-3, Far East Consortium Building 121 Des Voeux Road Central Hong Kong XINING SPECIAL: Two Units Apply for Working Capital Loans --------------------------------------------------------- Two of Xining Special Steel Co Ltd's 51%-owned subsidiaries have applied for a CNY54 million working capital loan and a CNY85 million working capital loan, Reuters reports. The two subsidiaries are both mining companies with one based in Subei. Xining Special will act as guarantor for the loans, Reuters says. * * * Based in Xining, Qinghai Province, Xining Special Steel Co., Ltd. is principally engaged in the smelting and processing of special steel products and offers alloy structural steel, alloy tool steel, carbon structural steel, bearing steel, spring steel, carbon tool steel, stainless steel, high-temperature steel and other steel products. Xinhua Far East China Ratings gave the company a BB issuer credit rating on August 25, 2006. ========= I N D I A ========= AES CORP: Restating Financials & Delays Fourth Quarter Results -------------------------------------------------------------- The AES Corp. expects to reschedule the release of its fourth quarter and full year 2006 financial results and its earnings conference call that was tentatively scheduled for Feb. 28. The Company would restate its previously reported financial statements. Revised dates for the earnings release and conference call will be announced at a future time. As the Company has not finalized its accounting review or year-end audit, it will likely seek an extension from the SEC of its filing deadline for its 2006 10-K to March 16. Material Weakness The Company has identified certain errors in its financial statements. Many of these errors were identified as a result of the Company's continuing remediation of previously identified material weaknesses. Other errors were discovered during the Company's quarterly and year-end accounting reviews. As a result of the errors discovered, the Company has decided to conduct additional reviews and analyses as of year-end, which are currently ongoing. The Company believes that all errors, which have been identified to date, were inadvertent and unintentional. Since the accounting review is not complete, no definitive conclusions can be presented regarding the adjustments that will be made in the restatement. However, at this stage of the Company's review, the net impact of recording these adjustments is not expected to be material to any prior periods. Nevertheless, the Company is still required to restate its financial statements because, if it did not, the cumulative impact of correcting these adjustments would be recorded in the fourth quarter and the full year ending Dec. 31, 2006, and would likely be material. In addition, the Company does not believe that any adjustments will affect total cash balances. However, as noted, subsequent review and analysis could reveal errors that are material to prior periods or that affect cash. In addition, the Company is reviewing its accounting for long term compensation, which includes restricted stock units and stock options. At this stage of the review, management does not believe that any accounting errors related to long-term compensation are the result of any fraudulent practice. The Company's review relates primarily to the fact that it has generally been treating the board approval date for its annual long-term compensation grants as the accounting measurement date for its share-based compensation. However, since accounting measurement dates are determined by finalization of awards or communication to employees of awards, it is likely that the Company incorrectly calculated its share- based compensation expense. The Company is also reviewing the potential impact on the accounting measurement date of administrative errors in the granting process, including administrative delays, errors in data entry and communication, and other mistakes. The Company has retained an outside consulting firm to assist with its review of its accounting for share-based compensation. As this review is in process, the Company is still evaluating whether any adjustment to its share- based compensation expense may be required and, if there is such an adjustment, whether the expense will be material to any prior period. In addition, subsequent findings could alter the scope of the review. The decision to restate prior financial statements was made by management on Feb. 22 after consultation with AES's Financial Audit Committee and after discussion with the Company's independent registered public accounting firm, Deloitte & Touche LLP. About AES AES Corporation -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has Asian presence in India, China and Sri Lanka. * * * As reported in the Troubled Company Reporter - Asia Pacific on Feb. 14, 2007, Standard & Poor's Ratings Services said that AES Corp's preliminary agreement to sell its 82% stake in La Electricidad de Caracas to the Bolivarian Republic of Venezuela for US$740 million (after 2007 dividends) does not currently affect the ratings or outlook on the company. AES carries S&P's BB- corporate credit rating. The company carries Fitch's 'B+' Issuer Default Rating. Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. AMERICAN AXLE: Offers US$300 Million of Senior Unsec. Notes ----------------------------------------------------------- American Axle & Manufacturing Holdings Inc. and its wholly owned subsidiary, American Axle & Manufacturing Inc. has offered US$300 million of 10-year senior unsecured notes due 2017. The offering is subject to market and other customary conditions. The offering is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. Net proceeds from this financing will be used for general corporate purposes, which includes repaying amounts outstanding under its revolving credit facility. The offering is being lead managed by J.P. Morgan Securities Inc. and Banc of America Securities LLC. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. The notes will not be sold in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Copies of the prospectus supplement and accompanying prospectus related to the offering may be obtained from: J.P. Morgan Securities Inc. 270 Park Avenue, 8th Floor New York, NY 10017 Tel: (800) 245-8812 -- or -- Banc of America Securities LLC 100 West 33rd Street, 3rd Floor New York, NY 10001 Tel: (800) 294-1322 American Axle & Manufacturing -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drive train systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States, AAM also has offices or facilities in Brazil, China, England, Germany, India, Japan, Mexico, Poland, Scotland and South Korea. BRITISH AIRWAYS: Hires Porter Novelli for Public Relations Work --------------------------------------------------------------- British Airways plc has appointed Porter Novelli to support its North American public relations activities. In this role, Porter Novelli will focus on both corporate and consumer outreach to continue building British Airways' reputation amongst target audiences throughout North America. "Porter Novelli has shown an insightful understanding of our business needs for the North American market," said Robin Hayes, executive vice president Americas for British Airways. "We selected Porter Novelli for its expertise and reputation in corporate public relations and consumer marketing and we look forward to working with them on a variety of programs as part of a larger global effort to increase customer loyalty and further enhance our brand identity in the region." "The opportunity to apply our insights about the British Airways customer and her influencers is among the main reasons we are thrilled to be working with this iconic global brand," said Julie Winskie, partner and chief client officer of Porter Novelli. "Our 360 degree approach to assure an accurate view of all possible points of contact for a client -- from environmental to policy to emerging new consumer forces -- puts the British Airways opportunity right in the Porter Novelli sweet spot." Porter Novelli also represents British Airways for consumer public relations work in their headquarters UK market as well as in Trinidad and Tobago. About the Company Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As reported on Feb. 8, Moody's Investors Service changed the outlook on the Ba1 corporate family and Ba2 senior unsecured debt ratings of British Airways Plc and its guaranteed subsidiaries to positive from negative. ELCOM INT'L: Appoints David Elliot as VP Finance & Secretary ------------------------------------------------------------ Elcom International Inc. appointed David Elliott as its Vice President of Finance and Secretary, effective immediately. Mr. Elliott, 32, will serve as the principal financial and accounting officer of the company. He joined the company on Nov. 14, 2006. He has been responsible for introducing a new financial system in the company's UK operations and improving financial controls and reporting. The company said that Mr. Elliott has been employed in a number of financial roles with Volkswagen Group. He is most recently responsible for Volkswagen Group's Development Ventures Fund. About Elcom Elcom International, Inc. (OTC Bulletin Board: ELCO and AIM: ELC and ELCS) -- http://www.elcominternational.com/-- operates elcom, inc, an international B2B Commerce Service Provider offering affordable solutions for buyers, sellers and commerce communities to automate many or all of their purchasing processes and conduct business online. PECOS, Elcom's remotely hosted flagship solution, enables enterprises of all sizes to achieve the many benefits of B2B eCommerce without the burden of infrastructure investment and ongoing content and system management. The company has operations in India, Brazil and the United Kingdom. Going Concern Doubt Vitale, Caturano & Company Ltd. expressed substantial doubt about Elcom International's ability to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2005. The auditing firm pointed to the company's net losses every year since 1998. It has an accumulated deficit of US$126,252,000 as of Sept. 30, 2006. INDIA CEMENTS: Signs Scheme of Amalgamation with Visaka Cement -------------------------------------------------------------- India Cements Ltd's board of directors resolved to merge its associate company, Visaka Cement Industry Ltd, with itself, the company reveals in a filing with the Bombay Stock Exchange. The board came to the decision at its meeting held on Feb. 28, 2007. In that regard, the board approved a scheme of amalgamation under Sec. 391 to Sec. 394 of the Companies Act, 1956, to take effect from July 1, 2006, subject to the sanction of appropriate authorities. Pursuant to the scheme, one equity share of INR10 per share in India Cements will be issued to the shareholders of VCIL for every five equity shares of INR10 each held by them in VCIL. With the transaction, India Cements' subscribed and paid-up equity share capital will increase from INR220.37 crore to INR260.37 crore. "If the merger goes through, India Cements will be one of the top cement companies in India and will have a total capacity of around 12 million tonne," The Financial Express says, citing unnamed sources. According to the news agency, India Cements, with a capacity of around 9 million tonne, is currently adding 2 million tonne capacity at its existing plants in Tamil Nadu and Andhra Pradesh. A senior official of India Cements told the news agency that the integration will give Visaka a new identity and will become one of the India Cements plant. "The plant is thinly staffed and has been performing well," the paper adds. Headquartered in Chennai, India, India Cements Limited -- http://www.indiacements.co.in/-- manufactures and markets cement under the brand name Coromandel cement. The Company was established in 1946 and the first plant was set up at Sankarnagar in Tamilnadu in 1949. Since then, it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh. The Company was prompted to undertake debt restructuring plans in 2003. The Company reduced interest costs, improved capacity utilization, implemented voluntary retirement schemes and raised equity. All these initiatives helped the firm bring down its debt under the corporate debt restructuring program from INR1,700 crore to the current INR400 crore. The Troubled Company Reporter - Asia Pacific reported on Mar. 8, 2006, that India Cements has successfully reduced its workforce by 1,400 since it started its revival program. The job cuts are part of the Company's continuing corporate debt restructuring. KDL BIOTECH: Narrows 4th Qtr. 2006 Net Loss to INR21.85 Million --------------------------------------------------------------- KDL Biotech Ltd. narrowed its net loss in the quarter ended Dec. 31, 2006, to INR21.85 million from the INR32.62-million net loss booked in the last quarter of 2005. The company recorded total income of INR338.56 million in the December 2006 quarter, a 13% increase from the INR299.07 million booked in the same quarter in 2005. Operating expenses also increased by 13% from the INR291.72 million in the fourth quarter of 2005 to INR322.24 million in the latest quarter under review. There was a slight change in the company's interest charges, depreciation expense and provision for taxes: 4th Qtr. '06 4th Qtr. '05 ------------ ------------ Interest INR21.15 million INR23.01 million Depreciation 16.93 million 16.90 million Tax .10 million .06 million A copy of the company's financial results for the quarter ended Dec. 31, 2006, is available for free at the Bombay Stock Exchange at http://ResearchArchives.com/t/s?1a81 Headquartered in Maharashtra, India, KDL Biotech Ltd. -- http://www.kdlbiotech.com/-- manufactures biotechnology-based products. The Group specializes in Semi-synthetic Penicillin and related Enzymes. KDL Biotech has a joint venture with Synpac Pharmaceuticals to develop Penicillin-related products. Credit Rating Information Services of India Ltd., on Dec. 9, 2006, reaffirmed its 'D' rating on KDL Biotech's INR6.7-million Non Convertible Debenture Issue. LML LTD: Posts INR2.45BB Net Loss in 18 Mos. Ended Sept. 30, '06 ---------------------------------------------------------------- LML Ltd has filed with the Bombay Stock Exchange its audited financial results for the period starting April 1, 2005, to Sept. 30, 2006. For the 18 months ended Sept. 30, 2006, LML Ltd posted a net loss of INR2.45 billion, INR44.3 per share. The company says operations have been severely effected due to illegal strike by its workmen that resulted in a lockout on March 7, 2006, which is still continuing. LML's operating expenses for the 18-month period -- INR4.35 million -- exceeded its revenues of INR3.35 billion. Interest expenses totaled INR266.3 million while depreciation expenses aggregated INR390.6 million, resulting in loss before tax of INR794.9 million. The company booked taxes of INR794.9 million, provisions and contingencies of INR0.1 million and extraordinary loss of INR37.4 million. A copy of the company's financial results for the 18 months ended Sept. 30, 2006, is available for free at the Bombay Stock Exchange at http://ResearchArchives.com/t/s?1a85 Headquartered in Kanpur, India, LML Limited manufactures scooters and motorcycles. The LML NV, manufactured with Piaggio, is a scooter that is loaded with features such as a large taillight, cushioned backrest, improved handlebar design and speedometer, a utility box and a large glove compartment. The Company's motorcycles, which are made in collaboration with Daelim of Korea, feature a three-valve, 109-cubic centimeter engine, a long wheelbase and broad tires. The Energy FX model features a four-speed gearbox, while the Adreno FX sports a five-speed unit. The bikes come in a large variety of colors offer other features such as disc brakes and electronic ignition. As reported in the Troubled Company Reporter - Asia Pacific, LML disclosed that its board of directors, at a meeting on Sept. 8, 2006, has decided that LML has become a sick industrial company under the Sick Industrial Companies (Special Provisions Act) 1985. The company is currently working for the restructuring of its business, which includes the possibility of a strategic or financial partnership. * CI Raises India's Long-Term Currency Ratings to BBB- ------------------------------------------------------ Capital Intelligence, the international emerging markets rating agency, has raised India's long-term foreign currency and long- term local currency ratings to BBB- from BB+ and its short-term ratings to A3 from B. The outlook is stable. The upgrades reflect the strengthening of India's external position and CI's expectation that the external finances will remain robust for the foreseeable future. The change also reflects improving fiscal performance, a firmer commitment to financial discipline by both the central and state governments, and a favorable medium-term outlook for the economy. CI notes that the growth of the export base has led to a marked improvement in external solvency indicators while broader balance of payments developments have led to a further improvement in India's international liquidity position. As a proportion of GDP, gross external debt has fallen from 20.7% in March 2002 to an estimated 15.3% in March 2007. But measured against current account receipts the decline in indebtedness has been more significant, with the debt ratio falling from 121.4% to 59.6% over the same period. Sovereign external debt (including explicit loan guarantees) is very low, at just over 6% of GDP or 25% of current account receipts and is unlikely to increase much, if at all, over the medium term. For the past three years the country has been a net external creditor, with foreign assets in the official and banking sectors exceeding the external debt stock by about 6% of GDP or 23% of current account receipts. Although a widening current account deficit and low, but rising, net FDI have increased the economy's reliance on potentially volatile sources of foreign capital, external risks are greatly mitigated by capital controls and the liquidity buffer provided by the world's sixth largest stock of official reserves. At a projected US$178 billion in March 2007 (around 19% of GDP), official reserves are 10 times larger than external debt payments falling due in fiscal year 2007/2008 or nearly 4 times including the entire stock of bank deposits of non-resident Indians. On the fiscal front, the general government budget deficit has fallen steadily from 10.1% of GDP in 2001/2002 to an expected 6.4% in 2006/2007. While part of the improvement reflects a cyclical pick-up in revenues, there has been some progress in strengthening tax administration and collection and financial discipline has been enhanced by the adoption of fiscal responsibility legislation at both the central government and state levels. CI expects the fiscal consolidation process to continue over the medium term, albeit at a slow pace. Nevertheless, it is fiscal factors that continue to weigh heavily on the sovereign's ratings. The budget deficit remains comparatively high and a debt stock in excess of 80% of GDP places a heavy burden on the public finances, with interest payments currently devouring about 27% of budget revenues. Despite the large debt burden, refinancing risks are mitigated by a high domestic savings rate, deep domestic capital markets and a strong captive demand for government debt, over 90% of which is in local currency. Consequently, the government is able to sustain a much higher level of debt than would typically be thought possible for a low-income country. Deeper fiscal consolidation would, however, enable the government to re-direct spending towards more growth-enhancing social and infrastructure programs as well as strengthening repayment capacity. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Wins US$1.5-Billion Patent Suit vs. Microsoft ------------------------------------------------------------- A U.S. federal jury has ordered Microsoft Corp. to pay around US$1.52 billion in infringement damages to Alcatel-Lucent, the Associated Press reports. The jury ruled that Microsoft infringed two MP3 patents, which cover the encoding and decoding of audio into the digital MP3 format. "We think this verdict is completely unsupported by the law or the facts," Tom Burt, a Microsoft deputy general counsel, said. Lucent Technologies Inc., which merged with Alcatel in 2006 to form Alcatel-Lucent, filed 15 patent claims in 2003 against Gateway Inc. and Dell Inc. for technology developed by Bell Laboratories, its research arm, AP relates. In April 2003, Microsoft added itself to the list of defendants, saying the patents were closely tied to its Windows operating system. A judge had dismissed the claims and scheduled six separate trials for the remaining disputes. The case in question went on trial on Jan. 29. Microsoft argued in court that Alcatel-Lucent's patents govern its MP3 encoding and decoding tools, stressing that its MP3 software for Windows Media Player was licensed from Fraunhofer- Gesellschaft, which developed the format along with Bell Labs and French electronics group Thomson. "The damages award seems particularly outrageous when you consider we paid Fraunhofer only US$16 million to license this technology," Microsoft said adding that the damages were calculated by multiplying Windows sales volumes and PC sales prices worldwide since May 2003. John Desmarais, who represents Alcatel-Lucent in the case, said the proposed damages were consistent with patent law, adding that it was not appropriate to compare the amount Microsoft paid Thomson to the figure Lucent paid Bell Labs since Bell Labs patents were far more valuable, AP relays. The federal jury agreed on all Alcatel-Lucent's arguments but reached an impasse on whether Microsoft had willfully infringed on the Bell Labs patents, AP reports. AP suggests that if jury had found that Microsoft did, the firm would have had to pay triple damages. AP suggests that the case, if upheld on appeal, could become a precedent for possible damage actions against firms manufacturing MP3-playing products. These firms, AP adds, could face demands to pay royalties to Alcatel-Lucent. The court will consider the patent suits relating to speech coding in March or April, AP says citing Microsoft. Other patents in question include video coding on Microsoft's Xbox game console and Windows' user interface. Headquartered in Redmond, Washington, Microsoft Corp. -- http://www.microsoft.com/-- develops, manufactures, licenses and supports a range of software products for computing devices. 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: Signs Outsourcing Pact with E-Plus Mobilfunk ------------------------------------------------------------ Alcatel-Lucent will be managing several network business divisions of Germany's third-largest mobile communications provider, E-Plus Mobilfunk. Under the terms of the network outsourcing agreement, E-Plus Mobilfunk will transfer the operational business divisions responsible for the operation, maintenance and deployment of its cellular network to Alcatel- Lucent on March 1, enabling E-Plus to concentrate on its core business, reduce operational expenses and increase network quality. As part of this agreement, about 750 E-Plus employees in Germany will join Alcatel-Lucent. E-Plus will maintain responsibility for strategic network planning and network development, including the selection of mobile communications locations and their technical equipment to ensure the long-term quality of its cellular network. "Our decision to enter a strategic partnership with Alcatel- Lucent is designed to guarantee our subscribers a network of a constantly increasing quality over the long term," explained Elmar Grasser, Chief Technical Officer of E-Plus Mobilfunk GmbH & Co KG. "Alcatel-Lucent is the world's leading network integrator with the resources to meet future network construction and maintenance requirements with greater speed, flexibility and cost synergies than we could alone. And with this step, we're once again playing a pioneering role on the German market." The outsourcing of several network divisions is part of E-Plus's strategic reorientation and follows the company's recently announced restructuring. These measures are intended to lead to increased customer focus as well as boosting efficiency, flexibility and effectiveness, thus contributing to E-Plus' continued profitable growth. "By outsourcing individual business divisions, we can apply greater energy to our core business - and that means quality and especially care for our customers. It will put us in a position to focus even more attention on the development of simple, cost- effective mobile communications solutions for clearly defined customer segments," Grasser added. Network operations and managed services is a key focus area for Alcatel-Lucent's service activities. Alcatel-Lucent manages more than 50 networks around the world from ten of its Global Network Operations Centers and IP Transformation Centers. "We are proud that an innovative, quality-conscious service provider like E-Plus has entrusted us with the maintenance and management of its cellular network," said John Meyer, President of Alcatel-Lucent's service activities. "We are the world's leading network integrator, and hosted and network operations is one of our strengths. We look forward to helping E-Plus meet the needs of their customers. We also look forward to having the experienced and talented employees from E-Plus join the Alcatel-Lucent team, bolstering our ability to serve this important customer and expanding our expertise and resources." About E-Plus Mobilfunk With over 12.7 million subscribers as of December 2006, E-Plus Mobilfunk GmbH & Co. KG is the third largest mobile communications provider in Germany. Profitable growth is central to the company, which consistently gears its activities according to its operating results. E-Plus has significantly increased its market share since mid-2005, experiencing the fastest and most profitable growth of the providers present on the German market. With the launch of new names and products such as BASE, simyo and AY YILDIZ in 2005, the company has evolved into a brand group. The BASE flat-rate brand with subscription cards for normal and heavy users and the discount simyo brand with prepaid cards for infrequent users round out the E-Plus line for private and business customers. AY YILDIZ is the first mobile brand for the Turkish-German community. The latest addition to the range had its debut in October 2006: vybemobile, Germany's first phone and music brand for young users and music fans. Partnerships with enterprises from other industries such as Medion (ALDI talk), VIVA and Conrad round out the family. Since mid-2005, these new initiatives have brought nearly 4.3 million users to the E-Plus fold. 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: Eyes Another 1,700 Job Cuts in Europe ----------------------------------------------------- Alcatel-Lucent will slash over 1,700 jobs in Europe on top of 1,468 cuts already announced in France, the Associated Press reports citing Patrick Moreau, an official of CGT union. The company, according to Mr. Moreau, will reduce its workforce by: -- 877 jobs in Germany, -- 310 in Spain, -- 250 to 280 in Italy, -- 140 to 180 in the Netherlands, and -- 140 in Belgium. Alcatel-Lucent, which posted EUR618 million in net losses against EUR4.42 billion in net revenues for the fourth quarter 2006, previously announced plans to decrease its global workforce by 12,500 employees. Patricia Russo, Chief Executive of Alcatel-Lucent, said the job cuts could help the company save as much as EUR1.7 billion in pre-tax cost within three years, with at least EUR600 million for 2007. Alcatel-Lucent, meanwhile, refused a request from Gerard Larcher, France's employment minister, to suspend the job cuts pending conclusions of a working group that will study the telecommunications industry in France, Bloomberg News reports citing union CFTC Metallurgie. Alcatel, however, said it "welcomes" the creation of a working group and will take part in it, Bloomberg News adds. 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. BAKRIE SUMATERA: Moody's Affirms 'B2' Senior Secured Debt Rating ---------------------------------------------------------------- Moody's Investors Service has affirmed the B2 senior secured debt rating for Bakrie Sumatera Plantations Tbk following its decision to increase the existing bond size of US$110 million by another US$45 million. At the same time, Moody's has also affirmed the B2 corporate family rating for BSP. The outlook for all the ratings is stable. The increased bond amount will fund BSP's acquisition of new oil palm plantations. These acquisitions will give BSP another 15,000 hectares of oil palm estates as well as more mills capacity. "The proposed debt-funded acquisitions will increase BSP's debt leverage and will weaken its credit metrics, which will position the company at the lower limits of the current B2 rating," says Peter Choy, a Moody's Vice President & Senior Credit Officer. "Nevertheless, the B2 rating is supported by both favourable demand for crude palm oil and BSP's established operations. Moreover, the acquisitions will increase BSP's plantation size and maintain the prime production age of the company's oil palm plantation," he says. "The above positive factors are counterbalanced by BSP's small size, a lack of any downstream operations, its aging rubber plantation, rising production costs and aggressive growth," comments Choy. "Any Further debt-funded transactions in the absence of new equity will further weaken its credit metrics and reduce its financial flexibility, which would have downward pressure on the rating," he adds. The outlook for all the ratings is stable. Moody's expects BSP will manage the execution risk related to its bio-diesel plant and the integration of the two new plantations. Moody's does not expect further debt-funded acquisitions in the absence of new equity. Upward ratings pressure would arise if BSP can successfully complete its bio-diesel plant within budgeted time and cost, as well as improve its home-grown production to enhance yield. Furthermore, BSP would need to demonstrate an improvement in the production rates in its acquired companies. The improvements would need to translate into sustainable improved financial performance, as measured by Adjusted Debt/EBITDA below 3.0x -- 3.5x, EBITDA/Interest of at least 3.5x - 4.0x, and RCF/Adjusted Debt of at least 15% - 20%. On the other hand, the ratings may experience downward pressure if evidence emerges of: * cash leakages from BSP to fund affiliated companies, such as through inter-company loans or aggressive cash dividends; * further aggressive debt-funded acquisitions, especially without appropriate new equity; * acceleration of plantation aging; * prices of crude palm oil and latex falling beyond our expectations; and/or * delays or cost overruns in the new bio-diesel plant, such that credit metrics show continuous deterioration with Adjusted Debt/EBITDA increasing to 4.5x-5.0x, EBITDA/Interest declining to 2.0x or below, and/or Retained Cash Flow/Adjusted Debt falling to 10%. About Bakrie Sumatera Headquartered in Sumatra, Indonesia, Bakrie Sumatera Plantations Tbk is Indonesia's third largest largest publicly traded plantation company. It is 54% owned by PT Bakrie & Brothers Tbk, and its products include crude palm oil, palm kernel oil and latex. It was listed in 1990 on the Jakarta Stock Exchange. BAKRIE SUMATERA: S&P Affirms 'B' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Indonesia's PT Bakrie Sumatera Plantations Tbk. The outlook is stable. At the same time, Standard & Poor's assigned its 'B' issue rating on the proposed US$45 million senior secured notes issued by its wholly-owned subsidiary, BSP Finance B.V., irrevocably and unconditionally guaranteed by BSP and its subsidiaries. The new notes are a further issuance of and are in addition to the US$110 million principal amount of the 10.75% guaranteed senior secured notes due in 2011, issued in October 2006. The rating on the notes is subject to final documentation. Most of the proceeds will be used for capital expenditures, working capital, and general corporate purposes. "The rating on BSP reflects its large debt-funded capital spending program, high reliance on external purchases, small revenue relative to future debt, and limited integration," said Standard & Poor's credit analyst Yasmin Wirjawan. "However, these risks are partly offset by the company's satisfactory age profile in palm oil plantation, focus on higher-margin value- added rubber products, and satisfactory cost position." BSP's financial risk profile is expected to deteriorate further with an increase in borrowing to finance budgeted capital expenditures of about IDR1.7 trillion (US$178 million) from 2007 to 2010. About 46% of the capital spending will take place in 2007, and most of it will be used for the acquisition of new palm oil plantations and investment in a biodiesel plant. Expansion in its palm oil plantations is critical as BSP's production using externally purchased raw material supplies is expected to increase to at least half of palm oil and rubber production within the 2007-2009 period, with higher utilization rate of its processing facilities and expansion into the bio- diesel project. The cost of external purchases is substantially higher than the cash production cost of BSP's own products and is expected to reduce the company's operating margin. Including the nonrecourse loan for the biodiesel project and the bond issuance, the ratio of funds from operations to total debt is projected to fall to about 11%-13% in the near term, from 46% as at Sept. 30, 2006, while debt to EBITDA could increase to about 3.5x-3.8x from 1.7x, for the same period. The company is small, with revenue of US$87 million in the nine months ended Sept. 30, 2006. Following its aggressive expansion, its consolidated debt could increase to US$181 million after the proposed additional bond issue and the loan for the biodiesel project. Debt-servicing ability could be hampered if there is a delay in the construction of new facilities, an increase in the cost of equipment or external purchases, or a decline in product prices. As the company has no experience in the biofuel segment and the local regulatory aspects are yet to be finalized, it remains uncertain if it can reap the full benefits of its planned expansion. All its palm trees are below 15 years of age and young plants aged between six and 10 years occupy about 43% of the planted area. This has resulted in improving fresh fruit bunches yield for its own plantations to 23.8 tons per hectare in 2006, from 18 tons per hectare in 2002. Yields and operating efficiency should improve further as more young plants enter the high- yielding prime age of between 11 and 20 years. BSP's palm oil blended cash production cost of US$243 per metric ton compared favorably with the current market price of US$600 per metric ton, and a 30-year low of about US$250 per metric ton. In addition, BSP has attained a steady EBITDA margin of more than 30% as the company focuses on higher-margin value-added rubber products, which contributed about 67% of its production volume in 2006. BSP's near-term liquidity is adequate. Although its cash and cash equivalents of IDR77 billion were not sufficient to cover debt due in one year of IDR102 billion as at Sept. 30, 2006, its liquidity position has improved following the successful US$110 million bond issuance in the fourth quarter of 2006. "The stable outlook reflects Standard & Poor's expectation that BSP's financial measures remain acceptable for the current rating level despite the anticipated deterioration in its financial profile due to its large capital spending plan," Ms. Wirjawan noted. "It is also based on the expectation that the company will not be required to provide financing or other type of support to related parties and has the capacity to promptly and smoothly execute the capital expenditure program in its core businesses." About Bakrie Sumatera Headquartered in Sumatra, Indonesia, Bakrie Sumatera Plantations Tbk is Indonesia's third largest largest publicly traded plantation company. It is 54% owned by PT Bakrie & Brothers Tbk, and its products include crude palm oil, palm kernel oil and latex. It was listed in 1990 on the Jakarta Stock Exchange. BAKRIE SUMATERA: Sets Up New Subsidiary --------------------------------------- PT Bakrie Sumatera Plantations Tbk said that it has set up a subsidiary called PT Bakrie Sentosa Persada to support its business activities, Antara News reports. BSP Corporate Secretary Fitri Barnas reportedly disclosed that the company put in IDR247.50 million as capital participation in the new subsidiary. Antara recounts that the company said early in February that its 2006 income probably rose 30% to IDR1.15 trillion from IDR883.3 billion a year earlier on rising CPO prices. In the nine months ended Sept. 30, 2006, the company posted a net profit of IDR142.49 billion, up from IDR65.37 billion in 2005, Antara notes. About Bakrie Sumatera Headquartered in Sumatra, Indonesia, Bakrie Sumatera Plantations Tbk is Indonesia's third largest largest publicly traded plantation company. It is 54% owned by PT Bakrie & Brothers Tbk, and its products include crude palm oil, palm kernel oil and latex. It was listed in 1990 on the Jakarta Stock Exchange. BSP carries Standard & Poor's Ratings Services' 'B' corporate credit rating. The outlook is stable. Moody's Investors Service has affirmed the B2 senior secured debt rating for Bakrie Sumatera Plantations Tbk following its decision to increase the existing bond size of US$110 million by another US$45 million. At the same time, Moody's has also affirmed the B2 corporate family rating for BSP. The outlook for all the ratings is stable. CORUS GROUP: Tata Dismisses Speculation on Scunthorpe Plant Sale ---------------------------------------------------------------- Tata Steel may sell the Scunthorpe plant of Corus Group plc to resolve debts obtained for the financing of its US$12.1-billion acquisition of the Anglo-Dutch steelmaker, The Economic Times relates citing a report by a British publication. According to the report, Russian steelmaker Severstal offered Tata Steel US$1.9 billion for the Scunthorpe plant, where 80% of the value in the long products division resides. The Scunthorpe division has an estimated total asset value of US$3 billion but it may sell at a discount because of debt and low profitability. The report adds that Severstal owner Alexie Mordashov might put in a counter bid for Corus. A group of steelmakers, including Brazil's Gerdau, Russia's Evraz and Arcelor Mittal, has also expressed interest in buying Corus assets, the report continues. However, Tata dismissed speculations regarding the sale of Corus assets. It "didn't make sense for Tata Steel to sell a plant that was producing long products," industry analysts in India were quoted by the Economic Times as saying. Tata is currently finalizing the financing structure and integration of Corus operations with the company, sources close to the Indian steelmaker reveal. As previously reported in the Troubled Company Reporter - Asia Pacific, Tata Steel won an auction for Corus over Companhia Siderurgica Nacional after offering investors 608 pence per share in cash, or GBP5.7 billion (US$11.3 billion). About Tata Steel Established in 1907, Tata Steel is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). About Corus Group Corus Group plc, fka British Steel, was formed when the UK privatized its major steelworks in 1988. It then changed its name to Corus Group after acquiring most of Dutch rival Koninklijke Hoogovens. Corus makes coated and uncoated strip products, sections and plates, wire rod, engineering steels, and semi-finished carbon steel products. It also manufactures primary aluminum products. Customers include companies in the automotive, construction, engineering, and household-product manufacturing industries. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. * * * As reported in the TCR-AP on Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\ long-term corporate credit rating on U.K.-based steelmaker Corus Group PLC on CreditWatch with developing implications, after the completion of the auction process, during which India-based steel manufacturer Tata Steel Ltd. offered the highest bid of 608 pence per share. This values the company at GBP5.75 billion, up from the 455 pence per share of the initial bid. At the same time, the 'BB+' long-term debt rating on Corus' EUR700 million senior secured bank loan and the 'BB-' unsecured debt ratings on Corus remain on CreditWatch with developing implications. The 'B' short-term corporate credit rating remains on CreditWatch with positive implications. All ratings were placed on CreditWatch on Oct. 18, 2006, following the disclosure of an initial bid by Tata Steel. On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating Watch Negative following a recommended bid, valued at GBP6.2 billion, from India-based Tata Steel Limited in the wake of an auction process conducted by the UK Takeover Panel on 30-31 January 2007. The RWN also applies to the 'B+' ratings on CS's EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m 6.75% guaranteed bonds. At the same time, Moody's Investors Service placed Corus Group plc's Ba2 Corporate Family and other ratings under review. FOSTER WHEELER: Ralph Alexander Resigns as Director --------------------------------------------------- Foster Wheeler Ltd. reveals that effective Feb. 27, 2006, Ralph Alexander has resigned from its Board of Directors, in order to pursue other business opportunities that could, in the future, potentially conflict with his duties as a director of Foster Wheeler. Mr. Alexander was elected to the Board of Directors of Foster Wheeler Ltd. in May 2006 and his term was to have expired in May 2007. Mr. Alexander has also advised that he does not intend to stand for re-election. "I would like to thank Ralph for his contribution during his time as a Board Director and wish him every success in his new ventures," said Raymond J. Milchovich, chairman and chief executive officer. About Foster Wheeler With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in Indonesia, China, India, Malaysia, Singapore, Thailand and Vietnam. * * * On Dec. 17, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the Clinton, New Jersey-based engineering and construction company. The company had about US$217 million of total debt at Sept. 29, 2006. FOSTER WHEELER: Discloses Highest Profit in Its 116-Year History ---------------------------------------------------------------- Foster Wheeler Ltd. disclosed record full-year and quarterly net income for the period ended December 29, 2006. Net income for the full year 2006 was US$196.4 million, or US$2.78 per diluted share, excluding: * an asbestos-related net gain of US$100.1 million; * US$27.4 million in charges relating to successful debt reduction initiatives and the voluntary termination of the Company's former domestic credit agreement; and * US$7.1 million in costs relating to the closure of the Global Power Group's Canadian office. The US$196.4 million is a new earnings record and is more than double the Company's previous record. Including the items listed above, net income for the year was US$262.0 million, or US$3.43 per diluted share. The Company also reported record quarterly net income for the third consecutive quarter. Net income for the fourth quarter of 2006 was US$85.9 million, or US$1.20 per diluted share, excluding: * an asbestos-related provision of US$15.5 million; * US$0.1 million in costs arising from the voluntary termination of the Company's former domestic credit agreement; and * the US$7.1 million in costs relating to the closure of the GPG's Canadian office. Including these items, net income for the quarter was US$63.1 million, or US$0.88 per diluted share. "2006 was an outstanding year for Foster Wheeler. I would like to congratulate our management team and recognize all of our employees worldwide for transforming the earning capability of this company to a level that far exceeds any prior period in our Company's 116-year history," said Raymond J. Milchovich, chairman and chief executive officer. "The combination of the commercial and operational excellence demonstrated by our Global E&C Group and its 47% increase in capacity during 2006 has driven our Company's earnings and earnings growth and positioned us for a very bright future." EBITDA Consolidated EBITDA for the full-year 2006, also a new Company record, was US$333.9 million, excluding: * the US$100.1 million asbestos-related net gain; * the US$27.4 million in charges relating to successful debt reduction initiatives and the voluntary termination of the Company's former domestic credit agreement; and * the US$7.1 million in costs for the closure of the GPG's Canadian office. Including these items, full-year 2006 EBITDA was US$399.5 million. Consolidated fourth quarter 2006 EBITDA was US$128.9 million, excluding: * the asbestos-related provision of US$15.5 million; * the US$0.1 million costs arising from the voluntary termination of the Company's former domestic credit agreement; and * the US$7.1 million costs relating to the closure of the GPG's Canadian office. Including these items, fourth-quarter 2006 EBITDA was US$106.1 million. The Company began recording stock option compensation expense in 2006. US$1.7 million and US$7.3 million, respectively, were expensed in the fourth quarter and full-year 2006. New Orders, Revenues and Backlog New orders for the full-year 2006, measured in Foster Wheeler scope, which excludes flow-through costs, increased to US$3.0 billion, up 18% from US$2.6 billion in 2005. Scope operating revenues for the full-year 2006 increased to US$2.8 billion, up by 56% from US$1.8 billion in 2005. Year-end 2006 scope backlog increased to US$2.5 billion, up 17% from US$2.2 billion at year-end 2005. Cash and Liquidity The Company had a record US$630.0 million of cash and short-term investments at year-end 2006. This total cash balance compares with US$509.7 million at the end of the third quarter of 2006, and US$372.7 million at year-end 2005. The substantial cash increase during 2006 resulted primarily from net cash generated by operations of US$263.7 million, driven by the very strong operating performance in the Global E&C Group. Asbestos The Company recorded a net gain from its asbestos management program in 2006 of US$100.1 million, reflecting: * a US$115.6 million gain from four insurance settlements and the successful appeal of a court decision in the Company's pending asbestos-related insurance coverage litigation; and * a US$15.5 million charge in the fourth quarter of 2006 resulting from the Company's year-end update of its 15-year estimate of its asbestos liabilities and related assets. Calculation of EBITDA EBITDA is a supplemental, non-generally accepted accounting principle financial measure. EBITDA is defined as income before income taxes, interest expense, depreciation and amortization. The Company has presented EBITDA because it believes it is an important supplemental measure of operating performance. EBITDA, after adjustment for certain unusual and infrequent items specifically excluded in the terms of the Company's current and prior senior credit agreements, is used for certain covenants under its current and prior senior credit agreements. The Company believes that the line item on its consolidated statement of operations and comprehensive income/(loss) entitled "net income/(loss)" is the most directly comparable generally accepted accounting principle financial measure to EBITDA. Since EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net income/(loss) as an indicator of operating performance or any other GAAP financial measure. EBITDA, as calculated by the Company, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. As EBITDA excludes certain financial information compared with net income/(loss), the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. The Company's non-GAAP performance measure, EBITDA, has certain material limitations as follows: * It does not include interest expense. Because the Company has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest has material limitations; * It does not include taxes. Because the payment of taxes is a necessary and ongoing part of the Company's operations, any measure that excludes taxes has material limitations; * It does not include depreciation. Because the Company must utilize substantial property, plant and equipment in order to generate revenues in its operations, depreciation is a necessary and ongoing part of its costs. Therefore, any measure that excludes depreciation has material limitations. About Foster Wheeler With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in Indonesia, China, India, Malaysia, Singapore, Thailand and Vietnam. * * * On Dec. 17, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the Clinton, New Jersey-based engineering and construction company. The company had about US$217 million of total debt at Sept. 29, 2006. FOSTER: Appoints New Vice President for Corporate Development ------------------------------------------------------------- Foster Wheeler Ltd.'s Board of Directors has elected Thierry Desmaris to the position of vice president of corporate development, effective immediately. In this newly created role, Mr. Desmaris, who is also vice president and treasurer, will report to Raymond J. Milchovich, chairman and chief executive officer. "Thierry is a 20-year veteran of Foster Wheeler. He has served in a variety of senior financial management positions in both North America and Europe, and has an in-depth knowledge of our business," said Mr. Milchovich. "Thierry's prime objective will be to oversee and expedite the Company's growth through mergers and acquisitions that are consistent with our strategic growth plan. Thierry is an extremely experienced individual and I am highly confident that he will make a significant contribution to the future growth and success of Foster Wheeler." Prior to his appointment as vice president and treasurer of Foster Wheeler, Mr. Desmaris, 48, was chief financial officer of the Company's Continental Europe business unit, part of its Global Engineering and Construction Group. During his career with Foster Wheeler, he has also held senior positions in financial planning and analysis, and in project finance. Mr. Desmaris holds a Bachelor's Degree from Columbia University and a Master's in Business Administration, from Syracuse University. About Foster Wheeler With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in Indonesia, China, India, Malaysia, Singapore, Thailand and Vietnam. * * * On Dec. 17, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the Clinton, New Jersey-based engineering and construction company. The company had about US$217 million of total debt at Sept. 29, 2006. PAKUWON JATI: Sells US$110-Million Bond Due 2011 at 12% ------------------------------------------------------- PT Pakuwon Jati Tbk sold US$110 million of five-year bonds to help repay debt and fund expansion, Bloomberg News reports. According to the report, Head of Debt syndication of UBS AG Cristian Jonsson, said that the bond due November 2011 was priced to yield at 12%. Pakuwon Jati Finance Director Winarto did not want to comment on the terms of the pricing, the report says. Bloomberg explains that Indonesian companies need funds to meet the demand spurred by accelerating economic growth. About Pakuwon Jati Headquartered in Surabaya, Indonesia, PT Pakuwon Jati Tbk is a property management company. The company operates the Tunjungan Plaza shopping center, the Mandiri Tower office center, the Sheraton Surabaya Hotel and Towers and the Laguna Indah housing and industrial estate. The Troubled Company Reporter - Asia Pacific reported on Nov. 17, 2006, Moody's Investors Service has affirmed its B2 corporate family rating for PT Pakuwon Jati, Tbk (Pakuwon) and its B2 senior secured rating for Pakuwon Jati Finance BV following the completion of the company's USD110 million bond issuance. At the same time, both ratings have been removed from their provisional status. The bonds are guaranteed by Pakuwon, as well as PT Artisan Wahyu, which will become Pakuwon's subsidiary upon the completion of the acquisition of newly issued shares from AW. The outlook for both ratings is stable. An earlier TCR-AP report on Sept. 5, 2006, stated that Fitch Ratings has assigned long-term foreign currency and local currency Issuer Default Ratings of 'B' to Pakuwon Jati. In addition, Fitch has assigned a National Long-term rating of 'BBB-(idn)' to Pakuwon. The Outlook for the ratings is Stable. Fitch has also assigned an expected rating of 'B' with a Recovery Rating of 'RR4' to the US$120-million senior unsecured notes due 2011 to be issued by Pakuwon Jati Finance B.V. and guaranteed by Pakuwon. The final rating is contingent upon receipt of documents conforming to information already received. PERTAMINA: To Set Up Joint Venture for CPP Management ----------------------------------------------------- PT Pertamina (Persero) stated its willingness to set up a joint venture company to manage the Coastal Plain Pekanbaru oil block in Riau, Tempo Interactive reports. Currently, the CPP Block management is carried out by a joint operation agency of PT Bumi Siak Pusako and Pertamina's subsidiary PT Pertamina Eksporasi Produksi, with 50% ownership each, Tempo says. However, there are no reports of any official discussion between Bumi Siak and Pertamina EP, the news agency points out. The report notes that Pertamina Upstream Director Sukusen Soemarinda said that the setting of a joint venture company was in line with a 2001 agreement. The agreement signed on December 28, 2001, states that in order to manage the CCP block a joint venture will be founded in two years' time at the earliest. The agreement says that in the joint venture, Bumi Siak will own between 70 and 55% of the shares, and Pertamina will own the remainder. Mr. Soemarinda makes it clear that the working interest at CCP oil field will remain in spite of the joint venture -- 50% each for Pertamina and Bumi Siak -- since the change will only apply to ownership of the joint venture. PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No.31/2003 has changed its legal status from a special state owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, with the rest being me by imports. In 2003, PT Pertamina finance director Alfred Rohimone disclosed that the Company's financial condition was in critical condition because its expenses had surpassed its income due to its obligation to meet domestic demand with fuel oil bought at higher prices on the international market. Mr. Rohimone stated that with a liquidity position below IDR2 trillion, the Company was already bleeding. Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year. In August 2005, Pertamina's debt to United States firm Karaha Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately. PERUSAHAAN GAS: Will Deliver Gas to Java After 4-Month Delay ------------------------------------------------------------ PT Perusahaan Gas Negara (Persero) Tbk said that the first phase of a US$1.1-billion project to deliver the fuel from Sumatra to Java will start this March, four months behind schedule, Bloomberg News reports. According to the report, Gas Negara Director of Development Adil Abas told reporters that the company plans to complete tests by March 15 on a 450-kilometer pipeline, the first of two under construction. The second, a 661-kilometer pipeline, will be completed a year late, in March next year, he adds. The Troubled Company Reporter - Asia Pacific reported on Feb. 6, 2007, that Gas Negara said it will delay until September the shipment of natural gas through a pipeline from South Sumatra to western Java originally due to open in March. A second link, scheduled to begin operation in November 2006, will start up in March. The company attributed the pipeline project delay to problems acquiring the land, heavy rainfall in the area and hitches in completing tests on sections of the pipeline already built. Blomberg relates that Jakarta-based analyst at Macquarie Securities Adam Worthington said that investors will now be encouraged that all facilities are in place and the customers are also dying to get the gas. The project will supply natural gas from fields operated by ConocoPhillips and PT Pertamina to Cilegon and Muara Bekasi in the western part of Java, Bloomberg points out. The government is encouraging a shift to gas to reduce consumption of more expensive oil products in power stations and manufacturing plants, the news agency adds. About Perusahaan Gas Headquartered in Jakarta, Indonesia, PT Perusahaan Gas Negara (Persero) Tbk -- http://www.pgn.co.id/-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or-pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. The Troubled Company Reporter - Asia Pacific reported on Jan. 18, 2007, that Moody's Investors Service has affirmed the Ba2 corporate family rating of PT Perusahaan Gas Negara (Persero) Tbk. At the same time, Moody's has affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The ratings outlook is stable. This affirmation followed the recent announcement of a delay in the South Sumatera West Java gas commercialization. The TCR-AP reported on Dec. 21, 2006, that Standard & Poor's Ratings Services revised the outlook on Perusahaan Gas to positive from stable. The ratings on the company are affirmed at 'B+'. On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. TELKOM INDONESIA: Signs Cooperation Agreement with Flexi Handset ---------------------------------------------------------------- Taken place in Jayakarta Hotel, Jl. Ir. H. Djuanda Bandung, PT Telekomunikasi Indonesia and its working partners, the CDMA 2000-1X Handset Terminal Provider signed a cooperation agreement for Flexi's Bundling Terminal Program. In the occasion, Vice President of Public and Marketing Communication of TELKOM, Muhammad Awaluddin said that Flexi today is the market leader for Fixed Wireless Service with the widest coverage area. It may enable the increasing of interFlexi's call especially when it is added by the presence of Flexi Combo's feature. In order to support the situation, Flexi also conducted a SurePrice's Promotion Program, a special price for interFlexi's call. So, there will be no reason for people not to make Flexi as the main choice in fulfilling their communication's need. Through the cooperation between TELKOM and its CDMA 2000-1X- handset terminal providing partners, customers may receive a special package with special price including bonus for rate and SMS. Awaluddin said that by the time people own the intended handset and become Flexi's customers, TELKOM will help their communication cost through the given bonus so that costumer's cost will be lessened. Meanwhile, in order to fulfill people's need over various handset types, TELKOM cooperates with several CDMA terminal- providing partners through their distributors. Some of the partners who had signed the cooperation agreement in 2006 are Nokia and Motorola. At the moment, in order to add the customer's alternative choice over Flexi bundling terminal through a relatively lower price, TELKOM conducted cooperation with several CDMA-1X handset terminal providing partners such as Motorola, Haier, and LG which own today's cheapest sales price starting from IDR469.000,00. About the Flexi's Bundling Terminal Partners Nokia is the market leader of the CDMA handset provider in Indonesia with over than 80% of market share. Cooperation between Flexi and Nokia have been holding since 2005 up till now. Cooperating with Flexi, Nokia have launched various types of CMDA handset. The last types in bundling program with Flexi were Nokia 6275i, 2865 and 1255. The handset types of 6275i and 2865 had complete features, which may fulfill needs of the middle class customers. Meanwhile, type of 1255 was relatively cheaper and only had basic features. The cheapest price for Nokia handset terminal was owned by type of 1255, IDR595.000,00 of each. Motorola is the second biggest CDMA handset provider in Indonesia which have four types of handset such as: * W150i * W170 * W200, and * W210 All of them are single-band types. It is supported by an after sales support from a well-experienced company in after sales services and spreads in big cities of Indonesia. The price of W150i is the cheapest price for Motorola handset terminal, IDR469.000 of each. Haier CDMA Mobiles is the second biggest CDMA handset provider in India. It is also one of the 100 top world brands. The available handset consists of two terminals: D1000 and D1600. They are supported by easy user menus including Indonesian language availability. It is supported by an after sales support from a well-experienced company in after sales services and spreads in big cities of Indonesia. It is also become significant that the price might consider the consumption level of Indonesian customers. Considering that all the customers in DKI, West Java, and Banten ought to operate dual band-type terminal, Haier handset become a good choice for the customers who prefer the cheaper ones. It also enables customers to use "Combo" in 800 MHz-frequency area. The cheapest price for Haier handset terminal is owned by both D1000 and D1600. It is IDR499.000 for each of them. LG is the third biggest CDMA handset provider in Indonesia. LG offers CDMA handset type, LG25750 with a quiet cheap price. LG2750 is supported by user-friendly menu and dual language both Indonesian and English. In addition, LG 2750 also has speaker's feature and LMS. The price of LG2750 is IDR.550.000 of each. Having through handset bundling terminal programs, Flexi's sales target in 2007 is 500.000 SSF. TELKOM will keep cooperating with its working partners, the CDMA 2000-1X Handset Terminal Provider -- especially the low-cost handset provider in bundling program -- so that Flexi's prospective customer needs may always be fulfilled. In the bundling program, TELKOM will continuously deliver many bonuses such as rate, SMS and other various Flexi's features. Having through handset bundling terminal program, Flexi's sales target in 2007 become 1.5 million SSF at least. Meanwhile, PT Telekomunikasi Indonesia Divisi Regional III West Java and Banten as being represented by the Deputy Executive General Manager, ELvizar KH also had signed a cooperation agreement with TELKOM's business partner, CISCO as the provider of computer equipment. As being stated by ELvizar, this cooperation is aimed to help TELKOM in overcoming a solution both for customer who want to use Speedy service and rapidity of Speedy's marketing program in West Java and Banten. About Telkom Indonesia Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter - Asia Pacific on Jan. 31, 2007, Fitch Ratings has revised the outlook on Telekomunikasi Indonesia Long-term foreign and local currency Issuer Default ratings to Positive from Stable and affirmed the ratings at 'BB-'. Moody's Investors Service gave Telekomunikasi Indonesia a Ba1 local currency corporate family rating. Standard & Poor's Ratings Services gave the company foreign andlocal currency corporate credit ratings of BB+. ========= J A P A N ========= DELPHI CORP: Closing Manufacturing Facility in Spain ---------------------------------------------------- Delphi Corp. is planning to shut down a Cadiz, Spain facility, which manufactures steering mechanisms, Jeff Bennett of Bloomberg News reports. The company employs approximately 1,570 employees. Due to high operating costs, the Cadiz Facility has incurred losses aggregating US$196,000,000 in the last five years, the Associated Press relates in a separate news report. Delphi did not disclose the date of the planned closure. The company, however, has informed the Facility's labor unions of the imminent closure, Delphi spokeswoman Cheryl Kilborn told Bloomberg. Among the labor unions representing Cadiz Facility workers are the Confederacion Sindical de Comisiones Obreras and the Union General de Trabajadores. The Facility is not part of Delphi's proposal to sell its steering division to Platinum Equity Holdings LLC. The contemplated plant closure will not only affect the Facility's workers, but will also indirectly affect 4,000 related jobs, Jose Barriga, a UGT union official, noted in a press statement. UGT is set to hold a strike tomorrow, March 1. About Delphi Corporation Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/ -- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The Company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. FIDELITY NATIONAL: Net Earnings Rise to US$259.1 Million in 2006 ---------------------------------------------------------------- Fidelity National information Services Inc. reported net earnings of US$259.1 million on revenues of US$4.1 billion for the year ended Dec. 31, 2006, compared with net earnings of US$196.5 million for the year ended Dec. 31, 2005. For the fourth quarter ended Dec. 31, 2006, the company reported net earnings of US$75.1 million on revenues of US$1.1 billion, compared with net earnings of US$45.5 million on revenues of US$707.7 million. "Fidelity National Information Services reported excellent fourth quarter results with pro forma revenue growth of 12.5%, EBITDA growth of 11.0% and adjusted cash earnings of US$0.58 per diluted share," stated FIS Chairman William P. Foley, II. "We are extremely pleased with the outstanding results we achieved in 2006, which was our first year as a new public company. Our strong operating performance provides an excellent foundation for the continued growth and success of our company." Fourth Quarter Pro Forma Segment Information The company's Transaction Processing Services generated revenue of US$694.7 million, or 16.1% over the prior-year period, driven by 55% growth in International, 8.9% growth in Enterprise Solutions and 8.6% growth in Integrated Financial Solutions. The company's new item processing operation in Brazil, new account wins and deeper penetration of the existing customer base contributed to the strong revenue growth. Lender Processing Services revenue increased 7.9% to US$437.1 million, driven by 10.6% growth in Information Services, which continues to benefit from strong results within the default solutions and appraisal product lines. About Fidelity National Headquartered in Jacksonville, Florida, Fidelity National Information Services, Inc. -- http://www.fidelityinfoservices.com/-- provides core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage- related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top ten. Nearly 50 percent of all U.S. residential mortgages are processed using FIS software. FIS maintains a strong global presence, serving over 7,800 financial institutions in more than 60 countries worldwide, including Brazil and Japan. * * * As reported in the Troubled Company Reporter on Jan. 24, 2007, Fitch Ratings assigned a senior unsecured rating of 'BB+' for Fidelity National Information Services' new US$3 billion senior unsecured credit facilities. The facilities consist of a US$2.1 billion term loan and a US$900 million revolving credit facility. The company used the proceeds to refinance existing debt. Fidelity's Issuer Default Rating remains at 'BB+'. Fitch said the rating outlook is stable. Standard & Poor's Ratings Services raised, on March 8, 2006, the corporate credit and senior secured ratings of Fidelity National Information Services Inc. to 'BB+' from 'BB', and removed it from CreditWatch where it was placed on Sept. 15, 2005. METHANEX CORP: Earns US$482.9 Million in Year Ended December 31 --------------------------------------------------------------- Methanex Corp. reported net income of US$482.9 million for the year ended Dec. 31, 2006, compared with a net income of US$165.8 million during the same period in 2005. For the fourth quarter of 2006, the company recorded a net income of US$172.4 million. This compares with a net income of US$113.2 million for the third quarter of 2006. Bruce Aitken, President and CEO of Methanex, commented, "We are very pleased to have produced record earnings and cash flows for our shareholders during the fourth quarter and fiscal 2006. Extremely tight market conditions created primarily by outages at competitor plants led to a very high methanol price environment in the fourth quarter. As a result, we achieved an average realized price of $460 per tonne in Q4 2006, an increase of $155 per tonne over our realization of US$305 per tonne in Q3 2006." Mr. Aitken added, "The high methanol price environment has continued into the beginning of this year and we believe that an extended period of high operating rates in 2007 is required to balance supply and demand. The Methanex European posted contract price has been set for the first quarter of 2007 at EUR420 per tonne (US$545 per tonne at date of settlement), an increase of EUR20 over the fourth quarter price. Our non-discounted posted contract prices for the United States and Asia for February are US$549 per tonne and US$490 per tonne, respectively. Overall, the average posted price across the three regions is US$528 per tonne in February, compared to an average posted price of US$558 per tonne in Q4 2006." "Our global market leadership position proved to be very effective in 2006. In a year where methanol shortages occurred, the strength and flexibility of our global supply chain allowed us to maintain supply commitments to our customers. We operated our flexible Waitara Valley plant in New Zealand which added much needed supply to the market and generated incremental profits for our shareholders. As a result of the continuing tight market conditions, we expect to secure additional gas to allow us to operate this facility at least until the end of 2007." Mr. Aitken concluded, "Our excellent cash generation in the fourth quarter leaves us in a strong financial position. With $355 million cash on hand at the end of the year, a strong balance sheet and a US$250 million undrawn credit facility, we are well positioned to meet our financial requirements related to our potential methanol project in Egypt, pursue new opportunities to enhance our leadership position in the methanol industry, investigate opportunities related to new methanol demand for energy applications and continue to deliver on our commitment to return excess cash to shareholders." Liquidity and Capital Resources For the year ended Dec. 31, 2006, cash flows from operating activities before changes in non-cash working capital were US$623 million compared with US$330 million for the same period in 2005. During the year ended Dec. 31, 2006, non-cash working capital increased by US$154 million. The increase in non-cash working capital is primarily a result of the impact of higher methanol pricing on working capital balances as well as the impact of higher ending inventory volumes. For the year ended Dec. 31, 2006, the company repurchased a total of 8.5 million common shares at an average price of US$21.91 per share, totaling US$187 million, inclusive of 4.7 million common shares repurchased in 2006 under a normal course issuer bid that expired May 16, 2006. About Methanex Corp. Headquartered in Vancouver, British Columbia, Methanex Corp. -- http://www.methanex.com-- is a producer and marketer of methanol. The company has locations in Belgium, Chile, China, Japan, Trinidad and the United Kingdom, among others. 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. Chemicals and Allied Products sector, the rating agency confirmed its Ba1 Corporate Family Rating for Methanex Corp. Moody's also affirmed its probability-of-default ratings and assigned loss-given-default ratings to these two bond issues: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- ---------- US$200 million 8.75% Sr Unsec Notes due 2012 Ba1 LGD4 56% US$150 million 6.00% Sr Unsec Notes due 2015 Ba1 LGD4 56% MITSUBISHI MOTORS: Announces Sales & Export Results for January --------------------------------------------------------------- Mitsubishi Motors Corporation announced global production, as well as domestic sales and export results for January 2007. Total global production came in at 107,772 units, 101% of last year's figure. Japanese production increased 14.1% year-on-year to 63,413 units, marking the fourth consecutive month of year- on-year growth. Adding to U.S. Outlander and European Outlander, production of Chinese Outlander started from December 2006. Demand of new Pajero models have increased in Europe. Also production of new Delica D:5 model for Japanese market launched this month. All these factors contributed to increase production volume in Japan. Total vehicle sales in Japan totaled 15,522 units, an 11.8% decline from the January 2006 total. Registered vehicles charted sales of 4,751 units, 64.3% of the year-ago figure. Mini-car sales continued year-on-year growth increasing to 10,771 units, 105.5% of the total for January 2006. Total sales for passenger cars were 89.5% percent year-on-year to 11,868 units, and commercial vehicle sales were 3,654 units, 84.3% of the same period last year. Overseas production reached 44,359 units, 86.7% of the year-ago figure. European production came in at 5,691 units or 101.9% of last year's figure. North American production reached 7,724 units, an 18.7% rise year-on-year due to an increase in production of the Galant export model for Russia and Middle East countries. Asian production totaled 27, 296 units, a 24.0% decline from January 2006's levels, representing continued weakness in Asian markets such as Malaysia and Taiwan, where the economies are in long-term stagnation. Total exports from Japan increased to 42,186 units, 142.4% of the year-ago level, marking the third consecutive month of year- on-year volume increase. Exports to Europe increased to 14,466 units, 141.0% of the level seen last year due to favorable demand of new Pajero and new Outlander models. Exports to Asia came to 2,030 units, 5.2% increase over the last-year period due to good sales of Lancer models in the Singapore market. Exports to North America rose to 7,980 units, 274.1% higher than the January 2006 levels, because of the full-scale production of the Outlander export model for the North American market at the Okazaki plant. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on Jan. 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. * * * As reported by the Troubled Company Reporter - Asia Pacific on Sept. 29, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. S&P said the outlook on the long-term rating is stable. As reported by the Troubled Company Reporter - Asia Pacific on Aug. 4, 2006, Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. As reported by the Troubled Company Reporter - Asia Pacific on July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. NIKKO CORDIAL: Will File Damages Suit Against 3 Former Execs ------------------------------------------------------------ The Troubled Company Reporter - Asia Pacific reported on Feb. 27, 2006, that Nikko Cordial Corp. was considering filing a legal action against and seek a total of JPY3 billion in damages from three former senior executives -- Nikko Cordial President Junichi Arimura; former chairman of Nikko Principal Investments Japan Ltd., Hirofumi Hirano; and former executive managing director of Nikko Cordial Securities Inc., Hajime Yamamoto -- for their involvement in the accounting scandal surrounding the company. The TCR-AP reported cited The Japan Times as saying that Nikko Cordial has yet to officially announce its intention to seek damages. In an update, Reuters says that Nikko Cordial has finalized its decision to file a damages suit against the three former executives, seeking JPY3.1 billion (US$25.7 million) in compensation. According to Reuters, Nikko said that the sought compensation covers JPY1.4 billion (US$11.6 million) in losses the company suffered, as well as the fine imposed by the Japanese financial authorities, and expenses for auditors, an in-house investigation and attorney fees. Expenses of JPY1.7 billion (US$14.1 million) or more, are also expected, in part for advertisement and letters apologizing to its shareholders, Nikko said. The Japan Times relates that the decision to file the action was arrived at by an in-house investigation team that Nikko Cordial set up earlier in February to look into the executives' responsibility for the fraud. Led by Nikko Cordial President Shoji Kuwashima, the investigation team said that it will not file a criminal complaint against the former executives due to a lack of evidence, The Times says. Moreover, Nikko is asking former chairman Masashi Kaneko to offer his private assets worth JPY300 million (US$2.5 million) because he shares the blame, being the head of the firm, The Times. Nikko also plans to ask seven former or current senior executives to return a portion of their salaries for the 2005 and 2006 business years. 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'. As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities and Exchange Surveillance Commission began investigating Nikko Cordial for falsifying its annual financial statements for the business year ended March 30, 2005, declaring JPY14 billion in false profits, and using them to procure money from the market. NIKKO CORDIAL: Moody's Comments on Possible Delisting from TSE -------------------------------------------------------------- Moody's commented on recent developments in connection with the potential delisting of Nikko Cordial Corporation from the Tokyo Stock Exchange. The rating agency confirmed that the Baa3 issuer rating of Nikko Cordial Corporation and the Baa2/ P-2 long and short term ratings of Nikko Cordial Securities are still under review for downgrade and it is monitoring developments. Moody's understands from discussions with the management of NCC that the firm's retail business is holding up reasonably well despite recent events, however the rating agency believes that continued uncertainty over the future of the firm can only have a negative impact on business going forwards. Nevertheless, given the large portfolio of liquid assets held by the firm, Moody's considers that the firm is in a position to be able to meet liabilities coming due, absent any major negative developments. A delisting, without any strong support from an outside bank, could lead to a further downgrade of the firm's ratings. However, even if delisted, the firm can continue its current business activities, and so Moody's main concern would be that over the medium term the firm fails to regain full market and customer confidence and faces a gradual attrition of retail clients and higher funding costs which affect medium-term profitability. Therefore Moody's does not consider it likely that the Nikko Group will face multi-notch downgrades upfront, but the scale and speed of any downgrades would depend on how NCC manages a potential delisting and how effective it is at countering the negative impact from such a delisting. Ultimately Moody's considers that the smoothest way for NCC to regain market confidence is for a significant tie-up with a large bank, and such a tie-up is likely to have a positive effect on ratings, depending on the rating of the bank concerned and the level of the shareholding. Moody's also affirmed the Aa2/ P-1 long and short-term ratings of Nikko Citigroup. The rating agency noted that some of the firm's business activities have also been impacted, due to its association with NCC. However, the high ratings assigned to the firm are driven by expected support from Citigroup, and we still believe that support from its ultimate parent, Citigroup, is extremely strong. The rating agency will continue to monitor any long-term negative impact on the franchise of Nikko Citigroup resulting from the problems at NCC, but given the many different possible developments over the next 4 - 6 weeks until the decision on the delisting and the implementation of a potential delisting take place, it is too early to assess the impact on Nikko Citigroup's creditworthiness. 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'. 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. NORTHWEST AIRLINES: Committee Against Equity Panel Appointment -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Northwest Airlines Corp. and its debtor-affiliates says that the appointment of an equity committee in the Debtors' cases is unwarranted. The Official Creditors Committee points out there will not be a distribution to equity under any confirmable plan of reorganization in the case. Considering the track record of other recent major airline bankruptcies like US Airways I and II, United Airlines, and ATA Airlines, this is not surprising, the Official Creditors Committee says. The Official Creditors Committee also notes that a disclosure statement was recently approved in the Delta Air Lines bankruptcy case, which, like the Debtors' proposed Plan of Reorganization, provides that creditors will receive equity -- valued at less than the full amount of the claims -- in exchange for their claims, and that existing equity holders will not receive any distribution. The appointment of an official equity committee would only create unnecessary and substantial costs for the estates and distract the Debtors, the creditor constituents, and their professionals from focusing on confirming the Reorganization Plan and emerging from bankruptcy, Scott L. Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C., in New York, argues. "There is nothing that an official equity committee can add to this case that the Ad Hoc Committee itself is not capable of contributing," according to Mr. Hazan. Mr. Hazan explains that the Ad Hoc Committee is comprised of institutions that collectively manage billions of dollars in assets and has retained experienced bankruptcy counsel and financial advisors. "There is no reason to believe that the Ad Hoc Committee will not continue to pursue any possible value (to the extent that they reasonably believe that it actually exits) for a return on their individual equity investments, and by extension, protect the interests of all equity holders," Mr. Hazan tells Judge Gropper. Douglas A. Fordyce, managing director at Lazard Freres & Co. LLC, financial advisor to the Official Creditors Committee, relates that the Ad Hoc Committee utilizes a JPMorgan analyst report dated Nov. 16, 2006, in support of its allegation that the Debtors have an equity value of approximately US$10,500,000,000. The Ad Hoc Committee arrived at the valuation only by adjusting the assumed jet fuel price utilized in the JPMorgan Report down from US$1.95 per gallon to the then current trading price of jet fuel -- US$1.70 per gallon, which corresponds to a crude oil price of approximately US$55 per barrel. In estimating Northwest's profitability for 2007, Mr. Fordyce says the JPMorgan Report assumed a jet fuel cost of US$1.95 per gallon or approximately US$63 per barrel for crude oil, which estimate is generally consistent with the fuel projections contained in the Debtors' Business Plan of US$1.92 per gallon. The JPMorgan report also forecasted the Debtors' 2007 EBITDAR to be US$2,332,000,000 -- which is very close to the Debtors' projected 2007 EBITDAR of US$2,305,000,000. The JPMorgan Report then applied a 6.5x - 7.0x multiple to calculate an adjusted enterprise value, subtracted net adjusted debt from that value and arrived at a total equity value of US$8,056,000,000 to US$9,222,000,000. However, Mr. Fordyce points out, the 6.5x - 7.0x multiple utilized in the JPMorgan analysis was based on what JPMorgan assumed to be the multiple implied by a Delta/US Airways merger transaction. As US Airways has withdrawn its offer for Delta, the multiples used in the JPMorgan Report, whether appropriate then or not, are no longer valid, and a lower multiple -- based on the current trading levels of the Debtors' major airline peers -- must be applied to arrive at a reasonable valuation, Mr. Fordyce explains. Mr. Fordyce also notes that the fuel price utilized by the Ad Hoc Committee occurred during a "dip" in the fuel market. Since that time, crude oil has risen back to approximately $59 per barrel on the spot market and US$61 to 64 on the "forward fuel curve" - the market's expectation of the price of oil in the future and where an airline could lock-in the costs. Mr. Fordyce relates that the price of fuel in the airline industry over the last several years has been closely correlated with unit revenue per seat mile. As fuel expense has become a much larger component of total operating costs, airlines have attempted to "pass through" the cost to passengers in the form of higher ticket prices. In addition, at higher fuel prices, routes served with older, less fuel-efficient aircraft become less profitable or even unprofitable and marginal routes -- even flown with new aircraft -- can become unprofitable, leading to a curtailing of service and a general reduction in capacity. With tighter capacity, unit revenue tends to rise as the supply and demand of seats comes into greater balance. The Ad Hoc Committee's "forecast" attempts to utilize a significant decrease in the price of fuel without any corresponding decrease in revenue, Mr. Fordyce tells the Court. "That is bad forecasting," Mr. Fordyce says. Any sustained reduction in the cost of jet fuel in the magnitude projected by the Ad Hoc Committee, Mr. Fordyce explains, would almost certainly cause a corresponding decrease in the Debtors' revenues, as airlines passed through reduced costs to consumers and additional aircraft were brought back into service, further increasing capacity and reducing unit revenues. Any prolonged decrease in fuel would bring with it a decrease in unit revenues, which must be considered in order to properly value the Debtors' business. Mr. Hazan also tells Judge Gropper that the Disclosure Statement explaining the Debtors' Plan projects an equity valuation for the Debtors of between US$6,450,000,000 and US$7,550,000,000 -- with a midpoint of US$7,000,000,000 -- with an estimated claims universe of between US$8,750,000,000 and $9,500,000,000. Based on the estimates, the Disclosure Statement projects a distribution to creditors of between 66% and 83% on the principal of their claims, before consideration of any accrued interest to unsecured creditors. The Ad Hoc Committee has not and will not be able to present any credible evidence to suggest that either the valuation or claims estimates contained in the Disclosure Statement are materially inaccurate, Mr. Hazan contends. "The Motion is nothing more than a transparent attempt by speculators in the Debtors' equity to force the estates to pay the costs of their fruitless pursuits," Mr. Hazan says. About Northwest Airlines Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for protection from their creditors, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Feb. 15, 2007, the Debtors filed an Amended Plan & Disclosure Statement. The hearing to consider the adequacy of the Disclosure Statement has been scheduled for March 26, 2007. (Northwest Airlines Bankruptcy News, Issue No. 57; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) NORTHWEST AIRLINES: Wants Court Approval on JP Morgan Pact ---------------------------------------------------------- Northwest Airlines Corp. and its debtor-affiliates intend to offer certain eligible unsecured creditors the right to subscribe for new common stock to raise up to US$637,500,000 in equity capital. J.P. Morgan Securities Inc., has agreed to purchase any shares not subscribed to by the eligible creditors, ensuring that the Debtors will receive the full anticipated proceeds, Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft, LLP, in New York, relates. In addition, JPMorgan will purchase directly 4,166,667 shares of new common stock for US$112,500,000 in the aggregate. Thus, the new capital to be raised through the Rights Offering -- including the backstop commitment -- and the JPMorgan direct purchase total US$750,000,000. The Debtors believe that the transactions represent the opportunity for a US$750,000,000 new equity investment in the Debtors in market conditions that are currently favorable on the best terms available, and will promote the Debtors' successful emergence from these Chapter 11 cases. The Debtors' Amended Plan of Reorganization proposes that holders of all other allowed unsecured claims against Northwest Airlines Corp., Northwest Airlines Holdings Corp., NWA Inc., and Northwest Airlines, Inc. -- the Consolidated Debtors -- will receive shares of new common stock of NWA Corp. and the right to purchase additional shares of new common stock of the reorganized Debtors under the Rights Offering in satisfaction of their claims. Mr. Petrick says the Debtors' business plan contemplated a recapitalization of the Debtors through new equity investment. The equity capital will be deployed for general corporate purposes; and, in particular, to help finance the modernization of the Debtors' fleet through the acquisition of new, fuel- efficient aircraft, appropriately sized to provide efficient service in various domestic and international markets. Commencing in December 2006, the Debtors interviewed more than 30 financial institutions in connection with a potential rights offering to be provided to the its creditors, presenting to numerous potential equity investors with respect to an additional private equity investment in the Debtors. After careful review, the Debtors determined that the proposal submitted by JPMorgan was the most favorable. On Feb.12, 2007, the proposal was approved by the Board of Directors of NWA Corp. The Official Committee of Unsecured Creditors was closely involved in the Debtors' processes to raise new equity, and fully supports the transactions, Mr. Petrick tells the Court. As an integral part of the parties' Equity Commitment Agreement dated Feb. 12, 2007, JPMorgan will enter into a syndication agreement with certain investors who will purchase certain of the shares being sold to JPMorgan under the ECA either from JPMorgan or directly from NWA Corp. The syndicate will not include any person or entity that is a competitor of the Debtors. Certain holders of allowed unsecured claims, as of the record date fixed by the Court for the determination of eligibility to vote on the Plan, will be offered the opportunity to purchase up to their pro rata share of 23,611,111 shares of new common stock of NWA Corp., subject to reduction, at US$27 per share. Furthermore, in the event that eligible unsecured creditors receiving subscription rights decline to exercise those rights -- or fail to do so in a manner that complies with the Plan -- the remaining rights will be allocated to those eligible unsecured creditors wishing to subscribe for up to two times their original subscription rights, pro rata, until all over subscription requests have been filled, subject to the availability of additional shares. JPMorgan will purchase any unsubscribed shares on the closing of the Rights Offering at US$27 per share. The Rights Offering including any backstop purchase, together with JPMorgan's purchase of additional shares, will represent a sale of 10.2% of the equity of the Reorganized Debtors. The Debtors have agreed to enter into a registration rights agreement, which will provide that all shares of new common stock acquired pursuant to the ECA will constitute "registrable securities," and will provide for the parties to complete necessary requirements for the registration. The Debtors reserve the right under the ECA to sell up to US$150,000,000 of new common stock of NWA Corp. to one or more potential investors on a list that has been provided to JPMorgan. In consideration for the Underwriting Commitment and to compensate JPMorgan for undertaking the risk in entering into the ECA; and, after substantial arm's-length negotiations among the Debtors, JPMorgan and the Syndicate Members, the Debtors will pay: (a) to JPMorgan, a fee of 2.75% of the potential investment, or US$20,625,000; (b) two additional fees of 0.25% each of the anticipated proceeds may be due if the expiration of the subscription period is extended beyond May 15 or June 1, 2007; (c) the out-of-pocket expenses reasonably incurred by JPMorgan with respect to the Rights Offering; and (d) reasonable fees and expenses of specified counsel and other professionals retained by JPMorgan and the Syndicate Members. The parties also agreed to certain indemnification provisions. By this motion, the Debtors seek the U.S. Bankruptcy Court for the Southern District of New York's authority to enter into and perform under the ECA, including entry into the Registration Rights Agreement. The Debtors also seek permission to pay the related fees and expenses. The Debtors also ask the Court to approve the related Syndication Agreement, and authorize them to file the Syndication Agreement in redacted form to protect certain proprietary, sensitive or otherwise confidential information. A full-text copy of the Equity Commitment Agreement is available at no charge at http://ResearchArchives.com/t/s?1a5d A full-text copy of the redacted form of the Syndication Agreement is available at no charge at: http://ResearchArchives.com/t/s?1a5e About Northwest Airlines Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for protection from their creditors, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Feb. 15, 2007, the Debtors filed an Amended Plan & Disclosure Statement. The hearing to consider the adequacy of the Disclosure Statement has been scheduled for March 26, 2007. (Northwest Airlines Bankruptcy News, Issue No. 57; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SANYO ELECTRIC: May Revise Inaccurate Financial Reports ------------------------------------------------------- Sanyo Electric Co. may revise its unconsolidated earnings reports from fiscal 2000 to 2003 before it receives an order to do so from the financial authorities, The Japan Times reports. According Agence France Presse, Sanyo Electric announced that it may correct its past earnings reports after allegations of accounting irregularities. As reported in the Troubled Company Reporter - Asia Pacific reported on Feb. 26, 2007, the Securities and Exchange Surveillance Commission commenced an investigation on whether Sanyo Electric failed to fully disclose its losses. The TCR-AP report, citing AFX News Limited, explained that Sanyo allegedly underestimated valuation losses on its holdings in struggling subsidiaries and affiliates in reporting earnings for fiscal 2003. The TCR-AP stated that Sanyo Electric had written off losses of JPY190 billion (US$1.6 billion) at its subsidiaries, but reported the losses as JPY50 billion (US$412 million), and that the company may have falsely reported a profit when it was in the red. "The board members agreed to consider the revision and correction. But it's not a final decision yet, and we don't know when the correction will be released," AFP quotes a spokesman for Sanyo Electric. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. Sanyo, according to press reports, has struggled after an earthquake damaged a key chip-making plant in Niigata, central Japan in October 2004. Operating losses in the unit mounted to JPY17.7 billion in the year to March 2005 and JPY35.1 billion the following year. An investigation was launched by Japan's Securities and Exchange Commission on Sanyo's financial accounts for the year to March 2004. The probe, media reports say, is a blow to Sanyo at a time when it has been struggling to turn around its business, trimming thousands of jobs, reducing factory space and dropping some businesses since announcing a restructuring plan in 2004. The company got a much-needed capital boost in January 2006 from a group of investors led by Goldman Sachs Group Inc., which became the company's top shareholders and took over the board, putting new management in place. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 27, 2007, that Fitch Ratings has placed Sanyo Electric Co., Ltd.'s 'BB+' Long-term foreign and local currency Issuer Default and senior unsecured ratings on Rating Watch Negative. The TCR- AP stated that the rating action was triggered by the ongoing investigation into Sanyo by Japan's Securities and Exchange Surveillance Commission. The TCR-AP also reported on Dec. 20, 2006, that Standard & Poor's Ratings Services lowered to 'BB-' from 'BB' its long-term corporate credit rating on Sanyo Electric. At the same time, Standard & Poor's lowered to 'BB' from 'BB+' its issue ratings on Sanyo Electric's senior unsecured debt. The outlook on the long-term credit rating is negative. The ratings were removed from CreditWatch, where they were placed on Nov. 22, 2006. ========= K O R E A ========= ARROW ELECTRONICS: Earns US$388 Million for Full Year 2006 ---------------------------------------------------------- Arrow Electronics Inc. released its financial results for the fourth quarter and full year ended Dec. 31, 2006. Arrow Electronics posted US$388.33 million in net profit on US$13.58 billion in net revenues for the year ended Dec. 31, 2006, compared with US$253.61 million in net profit on US$11.16 billion in net revenues for 2005. Arrow Electronics posted US$128.07 million in net profit on US$3.49 billion in net revenues for the fourth quarter ended Dec. 31, 2006, compared with US$74.45 million in net profit on US$2.96 billion in net revenues for the same period in 2005. As of Dec. 31, 2006, Arrow Electronics had US$6.67 billion in total assets, US$3.67 billion in total liabilities and US$3 billion in total shareholders' equity. "We ended an exceptional year with another very strong quarter, again posting impressive financial results and industry-leading levels of profitability," William E. Mitchell, chairman, president and chief executive of Arrow Electronics, said. "Sales and operating income grew to their highest fourth quarter levels since 2000. Outstanding working capital management drove operating cash flow of US$288 million with return on invested capital greater than our cost of capital for the 12th consecutive quarter." "We saw sales at record levels in 2006 with market share gains in all of our businesses," Mr. Mitchell added. "Our continued pursuit of operational excellence enabled us to grow earnings at a faster pace than sales for the fourth consecutive year. We achieved our highest return on working capital since 2000 and generated a return on invested capital in excess of our cost of capital for the third consecutive year. In the past four years annual net income, excluding items impacting comparability, has advanced from US$15 million to US$362 million, earnings per share have grown at a compound annual growth rate of 110%, our return on invested capital has more than tripled and cash flow from operations has totaled over US$1 billion, all while investing in growing our business. We continue to create value for our shareholders, employees, customers and suppliers." About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. In Asia Pacific, the company operates in Australia, China, Hong Kong, India, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Korea. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. The rating outlook is positive. DAEGU BANK: Records Lowest SBL Ratio Among Regional Banks --------------------------------------------------------- Data from the Financial Supervisory Service show that Daegu Bank, along with Kyongnam Bank, has the lowest Substandard Bank Loan -- SBL -- ratio among regional banks at the end of 2006. Both banks posted a 0.73% SBL ratio. Kyongnam Bank had total loans of KRW10.90 trillion, of which KRW0.08 trillion are considered substandard, while Daegu Bank had KRW0.10 trillion substandard bank loans on total loans of KRW14.20 trillion. The FSS release contains these information on regional banks' total loans, substandard bank loans, and SBL ratio (in KRW, trillions and percent): 2005 2006 --------------------- --------------------- Total SBL Total SBL Loans SBL Ratio Loans SBL Ratio ----- ----- ----- ----- ----- ----- Daegu 12.20 0.12 0.97 14.20 0.10 0.73 Busan 12.50 0.12 0.94 15.30 0.13 0.83 Kwangju 6.90 0.10 1.46 8.40 0.08 0.98 Jeju 1.40 0.02 1.42 1.80 0.02 0.96 Jeonbuk 3.10 0.04 1.29 3.50 0.03 0.84 Kyongnam 8.60 0.09 1.06 10.90 0.08 0.73 Daegu Bank -- http://www.dgb.co.kr/index.jsp-- provides various services such as commercial banking, foreign exchange, certificate of deposits, securities trading, and trust accounts. The bank operates its business primarily in Daegu area. * * * The Troubled Company Reporter - Asia Pacific reported on Apr. 24, 2006, that Fitch Ratings has upgraded Korea-based Daegu Bank's Individual rating to "B/C" from "C". At the same time, the agency also affirmed the bank's Support rating of "2". Moody's Investors Service gave Daegu Bank a 'D' Bank Financial Strength Rating effective on March 30, 2006. DAEGU BANK: BIS Capital Adequacy Ratio at 11.73% at Sept. End ------------------------------------------------------------- Daegu Bank posted its highest BIS capital adequacy ratio since the year-end of 2003, according to preliminary data released by the Financial Supervisory Service. The bank reported an 11.73% BIS ratio at the end of September 2006, continuing an upward trend for the bank. The FSS release contains the following information on Daegu Bank's BIS capital adequacy ratio (in percent): June Sept. 2003 2004 2005 2006 2006 ------ ------ ------ ------ ------ Daegu 10.58 10.66 11.33 11.60 11.73 A Troubled Company Reporter - Asia Pacific report on Sept. 1, 2006, explains that the capital adequacy ratio is set by the Bank for International Settlements to measure the soundness of 18 banks in Korea. The BIS ratio of all regional banks stood at 11.49% on average at the end of September 2006. Daegu Bank -- http://www.dgb.co.kr/index.jsp-- provides various services such as commercial banking, foreign exchange, certificate of deposits, securities trading, and trust accounts. The bank operates its business primarily in Daegu area. * * * The Troubled Company Reporter - Asia Pacific reported on Apr. 24, 2006, that Fitch Ratings has upgraded Korea-based Daegu Bank's Individual rating to "B/C" from "C". At the same time, the agency also affirmed the bank's Support rating of "2". Moody's Investors Service gave Daegu Bank a 'D' Bank Financial Strength Rating effective on March 30, 2006. HYNIX SEMICONDUCTOR: Shareholders Elect Jong-kap Kim as New CEO --------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on Feb. 7, 2007, Hynix Semiconductor Chief Executive Officer Woo Eui-jei revealed his intention to resign. A subsequent TCR-AP report said that the company's major shareholders will interview five candidates for the CEO position. However, the TCR-AP reported on Feb. 27 that former minister of information and communication Chin Dae-je has decided not to run for the CEO post. In an update, the committee of six shareholders has reviewed the four remaining candidates: 1) Kim Jong-kap, former vice minister of commerce, industry and energy; 2) Oh Kye-hwan, president of the Ubiquitous IT-Cluster Center; 3) Oh Choon-sik, executive vice president and chief operations officer of Hynix; and 4) Choi Jin-seog, senior vice president and head of manufacturing at Hynix; and The committee has chosen Mr. Kim as the sole candidate for the CEO post, The Wall Street Journal says, citing a report from Dow Jones. A spokesman for Korea Exchange Bank said four members of the committee voted for Mr. Kim, but did not disclose the reason for their support, In-Soo Nam writes for Dow Jones. Whoever takes over the executive suite will need to find ways to maintain steady profitability amid declining chip prices, ease friction with governments in the U.S., the European Union and Japan over chip tariffs and deal with growing patent disputes with rival chip makers, Dow Jones cites analysts, as saying. As noted by the TCR-AP, the official nominee will be approved by the Hynix executive board meeting and at a general shareholders meeting in March. According to Lee Youn Gu, another spokesman for KEB, Mr. Kim is "almost certain to be approved as the next Hynix chief executive," Dow Jones relates. 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. JEONBUK BANK: Declares Total Dividends of KRW3.6 Billion -------------------------------------------------------- Jeonbuk Bank Ltd.'s board of directors has declared an annual cash dividend of KRW100 per common share, payable to shareholders of record on December 31, 2006, Reuters Key Development says. The total cash dividend amount is approximately KRW3.6 billion, according to the report. Bloomberg News has said that the bank posted a 16.70% increase in net income to KRW31.27 billion for the year ending Dec. 31, 2006. The company, according to Reuters, had forecasted a full year 2007 revenue, operating profit and ordinary profit of KRW373.9 billion, KRW53.8 billion and KRW49.7 billion, respectively. 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 December 8, 2003. KOOKMIN BANK: Reports KRW2.47 Trillion Net Income for 2006 ---------------------------------------------------------- Kookmin Bank posted a net income of KRW2.47 trillion for the year ending December 31, 2006, a 9.8% increase from the KRW2.25 trillion the bank earned a year ago, according to a corporate disclosure made by the bank. As of Dec. 31, 2006, the company had total assets of KRW195.2 trillion, total liabilities of KRW180.1 trillion, and total shareholders' equity of KRW15.1 trillion. At December 31, the bank had KRW133.1 trillion worth of loans, an 8.8% growth year-on-year, while total deposits grew 7.7% to KRW136.1 trillion. Asset Quality As of December 31, 2006, the bank had KRW152.32 trillion in total loans for NPL management, KRW1.58 trillion of which are considered substandard and below, which translates to an NPL ratio of 1.03%. The bank had a KRW2.37 trillion reserve for loan loss, giving the bank a NPL coverage ratio of 150.8%. The bank currently has a 0.95% delinquency ratio. The company's disclosure included these financial data: For the years ended December 31 In KRW, billion 2006 2005 Change -------- -------- -------- Operating income 3,071.7 3,015.8 1.9% Operating income before provisioning 4,347.3 4,426.2 -1.8% Non-operating income 352.4 212.4 65.9% Seoul-based Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. The Troubled Company Reporter - Asia Pacific reported on Jan. 24, 2007, that Moody's maintained the bank financial strength rating of D+. KOOKMIN BANK: To Issue MBS Worth KRW1 Tril. to Foreign Investors ---------------------------------------------------------------- Kookmin Bank plans to issue mortgage-backed securities worth KRW1 trillion this year for foreign investors as part of efforts to diversify sources of borrowing, Na Jeong-ju of The Korea Times cites bank officials, as saying. This is the first time for Kookmin to issue the MBS for foreign investors, the report notes. The bank has signed contracts with foreign investment banks, like ABN Amro and JP Morgan, to issue the MBS on the overseas securities markets by the end of June, The Korea Times relates. The paper relates that the move came after Kookmin President Kang Chung-won recently hinted that the bank may issue asset- backed securities to improve its profitability. The paper notes that in 2006, the bank increased its balance of housing-backed loans by 27%, or KRW10.1 trillion won, to KRW47.4 trillion. According to a bank official, the bank is "currently in the process of looking into the quality of mortgages and other housing-related loans to issue the MBS," The Korea Times relates. The MBS is expected to enable Kookmin to borrow long-term money at low interest rates, the paper says. Like other Korean banks, Kookmin increased its dependence on short-term borrowing but the issuance of the MBS shows a significant change in its borrowing pattern, the paper cites analysts as saying. Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. Moody's Investors Service gave Kookmin a Bank Financial Strength rating of D+ effective March 27, 2006. KOREA EXPRESS: Parent Posts KRW344.27 Billion Net Loss in 2006 -------------------------------------------------------------- Korea Express Co., Ltd.'s parent company reported a net loss of KRW344.27 billion for the year ending December 31, 2006, against a net income of KRW47.78 billion for the previous year, data obtained from Bloomberg News say. TCR-AP, however, also learns that the parent company made a profit KRW14.80 billion in the fourth quarter of 2006, a 24.07% improvement against the KRW11.93 billion for the previous corresponding period. The parent company reported revenues of KRW1.17 trillion and operating profit of KRW60.06 billion for the full year of 2006, a 2.42% improvement over the previous year. Reuters Key Development reports that the company expects a full year 2007 revenue and operating profit of KRW1.3 trillion and KRW70 billion, respectively. Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/-- provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. Korea Express Bank has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Korea Express President Lee Kook- Dong will decide with a Seoul court about when to sell the company, which has a market value of US$601 million. In the company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. Korea Investors Service gave the company a BB rating. KOREA EXPRESS: Increases Stake in JV Company to 40% --------------------------------------------------- Korea Express Co., Ltd., has increased its holdings in an unnamed Korea-based joint venture company to 40% after it made a capital injection of KRW200 million, Reuters Key Development reports. According to Reuters Key Development, Korea Express had earlier invested US$1 million into a China-based company, which specializes in the provision of stevedoring and high volume cargo and parcels delivery services, making the company a wholly owned subsidiary of the Korea Express. Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/-- provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. Korea Express Bank has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Korea Express President Lee Kook- Dong will decide with a Seoul court about when to sell the company, which has a market value of US$601 million. In the company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. Korea Investors Service gave the company a BB rating. KOREA EXPRESS: HS Holdings Divests Entire Holding ------------------------------------------------- HS Holdings Co., Ltd. has disposed of its entire 202,263 shares of the Korea Express Co., Ltd, which is worth approximately KRW20 billion, Reuters Key Development states. Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/-- provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. Korea Express Bank has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Korea Express President Lee Kook- Dong will decide with a Seoul court about when to sell the company, which has a market value of US$601 million. In the company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. Korea Investors Service gave the company a BB rating. KWANGJU BANK: Posts Highest SBL Ratio Among Regional Banks ---------------------------------------------------------- Data from the Financial Supervisory Service shows that Kwangju Bank has a substandard bank loan ratio of 0.98%, the highest among regional banks. Kwangju Bank, according to the FSS press release, had total loans of KRW8.40 trillion at the end of 2006, KRW0.08 trillion of which are substandard and below. The FSS release contains the following information on regional banks' total loans, substandard bank loans, and SBL ratio (in KRW, trillions and percent): 2005 2006 --------------------- --------------------- Total SBL Total SBL Loans SBL Ratio Loans SBL Ratio ----- ----- ----- ----- ----- ----- Daegu 12.20 0.12 0.97 14.20 0.10 0.73 Busan 12.50 0.12 0.94 15.30 0.13 0.83 Kwangju 6.90 0.10 1.46 8.40 0.08 0.98 Jeju 1.40 0.02 1.42 1.80 0.02 0.96 Jeonbuk 3.10 0.04 1.29 3.50 0.03 0.84 Kyongnam 8.60 0.09 1.06 10.90 0.08 0.73 Kwangju Bank -- http://www.kjbank.com-- is a local bank that primary serves Kwangju City and Jeonnam Province in South Korea. The bank provides domestic customers with commercial and retail banking services. Kwangju Bank also provides phone-banking and cyber-banking services. The Troubled Company Reporter - Asia Pacific reported on Aug. 15, 2006 that Fitch Ratings affirmed the bank's ratings at individual C, support 2. The rating outlook remains stable. KWANGJU BANK: Records Lower BIS Ratio At September End ------------------------------------------------------- Kwangju Bank posts a 11.55% BIS capital adequacy ratio as of the end of September 2006, the Financial Supervisory Service said in a press release. The September ratio is lower compared to the 11.89% BIS ratio the bank reported at the end of June 2006. It is also the lowest since the end of 2004. The FSS release contains the following information on Kwangju Bank's BIS capital adequacy ratio (in percent): June Sept. 2003 2004 2005 2006 2006 ------ ------ ------ ------ ------ Kwangju 10.72 11.81 11.60 11.89 11.55 A Troubled Company Reporter - Asia Pacific report on September 1, 2006 explains that the capital adequacy ratio is set by the Bank for International Settlements to measure the soundness of 18 banks in Korea. The BIS ratio of all regional banks stood at 11.49% on average at the end of September 2006. Kwangju Bank -- http://www.kjbank.com-- is a local bank that primary serves Kwangju City and Jeonnam Province in South Korea. The bank provides domestic customers with commercial and retail banking services. Kwangju Bank also provides phone-banking and cyber-banking services. The Troubled Company Reporter - Asia Pacific reported on Aug. 15, 2006 that Fitch Ratings affirmed the bank's ratings at individual C, support 2. The rating outlook remains stable. LG CARD: Creditors to Reap Capital Gains in Shinhan Acquisition --------------------------------------------------------------- On Jan. 8, 2007, the Troubled Company Reporter - Asia Pacific cited a report from Reuters stating that Shinhan Financial Group will pay KRW6.68 trillion (US$7.19 billion) for a majority stake in LG Card, setting the same price for shares held by both creditors and minority shareholders. The TCR-AP cited Shinhan's regulatory filing with the Korea Exchange disclosing that Shinhan will purchase 78.6% stake in LG Card at KRW67,770 per share in a public tender in February or March. As Shinhan starts making a tender offer to buy out the remaining shares of LG Card from February 28, LG Card creditors who hold a stake in the card firm will reap about KRW3 trillion in capital gains, Seo Jee-yeon writes for The Korea Times. The acquisition will complete Shinhan's takeover of LG Card. According to the report, the Korea Development Bank, the National Agricultural Cooperatives Federation, and other creditors will sell their 80.83% stake in LG Card to Shinhan: * The KDB, which holds a 22.93% stake in LG Card, is expected to reap about KRW870 billion capital gains. The bank bought its stake in LG Card at KRW32,000 on average in December 2004, the paper recounts; * The capital gains of the NACF, which has a 14.59% stake is forecast to reach KRW460 billion; and * Koookmin Bank and Woori Bank also will take gains of 560 billion and 510 billion won, respectively. The capital gains from the stock deal with Shinhan will help LG Card creditors see an improvement in their first quarter performance, the paper cites analysts, as saying. After the tender offer, Shinhan will add LG Card to the list of its affiliates in the latter part of March after completing the remaining payments, The Korea Times notes. About LG Card Co. Headquartered in Seoul Korea, LG Card Co. -- http://www.lgcard.com/-- provides installment finance services and credit card, as well as leasing services to credit worthy companies while acquiring valuable assets from merchant banks and leasing firms. LG Card also finances families wishing to purchase big ticket items such as automobiles, appliances and computers. At the end of October 2003, LG Card had KRW3.24 trillion more debt than assets and had faced threats of liquidity crisis and court receivership. LG Card has been in the hands of creditors since it was rescued from bankruptcy through a KRW5-trillion (US$4.78 billion) debt-for-equity swap and a further KRW1- trillion bailout in late 2004. Creditors are hoping to recover the bailout amount through a sale of the credit card issuer. PUSAN BANK: Moody's Assigns Baa3 Rtg. to Subordinated Debt Issue ---------------------------------------------------------------- Moody's Investors Service has assigned a Baa3 debt rating to the US$200 million 10-year subordinated debt issue of Pusan Bank. The rating outlook is stable. This rating does not incorporate any potential rating changes that may take place as a result of the announcement on February 21 that Moody's will review all bank ratings worldwide in conjunction with the implementation of Joint Default Analysis (JDA) for banks and the updated Bank Financial Strength Rating (BFSR) methodology. Pusan Bank is based in Busan, Korea's second largest city. Established in 1967, the bank is the dominant bank in Busan city. As of Dec. 31, 2006, it had assets of KRW22.8 trillion. The bank's other ratings are: * long-term/short-term deposit ratings of Baa2/Prime-2 (stable outlook); and * D bank financial strength rating (positive outlook) * FSS Says Bank Net Income Decreases to KRW13.49 Trillion --------------------------------------------------------- Preliminary figures show that domestic banks' net income for 2006 will come to KRW13.49 trillion, compared with KRW13.63 trillion for 2005, the Financial Supervisory Service said in a press release. Interest income rose KRW1.51 trillion on sharply increased lending, but the overall net earnings were held back by a KRW1.73 trillion jump in income tax expenses (partly from a drop in losses carried forward) for 2006. Operating and nonoperating income for the year totaled KRW13.26 trillion and KRW4.18 trillion, respectively. Loans outstanding at end-2006 totaled KRW873.8 trillion, up KRW122.4 trillion from end-2005 total of KRW751.4 trillion. Despite continued improvement in asset soundness, loan loss provisions fell slightly in 2006-from KRW5.1 trillion to KRW5.0 trillion, due to more stringent provisioning requirements. ROA for 2006 fell to 1.12% from 1.27% a year earlier on reduced net interest margin. Gross profit ratio, a key measure of profitability, came to 2.82%, down slightly from 2.98% a year earlier. Key Profitability Measures of Domestic Banks Gross Net Non-Interest Net Profit Interest Profit Profit ROA Ratio Margin Ratio Ratio ---------- ---------- ---------- ---------- ---------- 2005 1.27 2.98 2.81 0.38 42.5 2006 1.12 2.82 2.64 0.37 39.8 Preliminary Summary Bank Income Statement (in KRW, billions) 2005 2006 Change %Change -------- -------- -------- -------- Interest income 27,964.1 29,473.4 1,509.2 5.4 Gross interest income 56,109.5 65,224.6 9,115.2 16.2 Interest expense 28,145.3 35,751.3 7,605.9 27.0 Non-interest income 4,130.8 4,468.1 337.3 8.2 Service fees 3,445.6 3,929.6 484.0 14.0 Investment securities 380.2 513.5 133.3 35.1 FX/Derivatives 1,318.2 1,523.3 205.1 15.6 -------- -------- -------- -------- Total income 32,095.0 33,941.5 1,846.5 5.8 Selling/Admin. exp. 14,569.5 15,729.7 1,160.2 8.0 Operating income before loan loss provisions 17,525.5 18,211.7 686.3 3.9 Provisions for loan losses 5,091.9 4,955.7 -136.2 -2.7 Operating income 12,433.6 13,256.1 822.5 6.6 Nonoperating income 3,414.6 4,182.1 767.5 22.5 Securities-related 3,926.4 4,903.3 976.8 24.9 Others -511.8 -721.2 -209.4 40.9 Pretax income 15,848.2 17,438.1 1,590.0 10.0 Corporate inc. taxes 2,213.9 3,943.4 1,729.5 78.1 -------- -------- -------- -------- Net income 13,634.3 13,494.8 -139.4 -1.0 ======== ======== ======== ======== Income before provisioning 20,940.1 22,393.8 1,453.7 6.9 * FSS Says Substandard Bank Loans Decrease to KRW7.8 Trillion ------------------------------------------------------------- Bank loans classified as substandard or below-substandard, doubtful, or presumed loss-totaled KRW7.8 trillion at the end of 2006, down from KRW9.7 trillion a year ago, the Financial Supervisory Service said in a press release. The ratio of SBLs to total outstanding loans fell 0.38 percentage points to 0.84%, its lowest level since the forward- looking criteria were first adopted in 1999. The SBL ratio averaged 1.22% at end-2005 and 1.90% at end-2004. A surge in new loan issuances, which pushed the total outstanding loans to KRW931.3 trillion from KRW795.2 trillion, was mainly responsible for the drop in SBL ratio. Bank SBLs and SBL Ratio: End of Years 1999-2006 (in KRW, trillions) 1999 2000 2001 2002 2003 2004 2005 2006 ---- ---- ---- ---- ---- ---- ---- ---- SBL 61.0 42.1 18.8 15.1 18.7 13.9 9.7 7.8 SBL Ratio% 12.9 8.00 3.41 2.33 2.63 1.90 1.22 0.84 The SBL ratios fell for all loan types from end-September and end-2005, averaging 0.91% for corporate loans, 0.68% for household loans, and 1.33% for credit card receivables at the end of 2006. =============== M A L A Y S I A =============== AMSTEEL: Bursa Asks Explanation on Why Securities Should Stay ------------------------------------------------------------- The Bursa Malaysia Securities Bhd asked Amsteel Corp Bhd to make a written explanation as to why the bourse will avert the delisting of its securities. The written explanation must be submitted within five market days after receiving the order from the bourse. Amsteel received Bursa's letter on Feb. 26, 2007. As reported by the Troubled Company Reporter - Asia Pacific on Feb. 13, 2007, Amsteel Corp failed to make the requisite announcement regarding its regularization plan. In addition, the bourse has denied the company's request to further extend its deadline to make a requisite announcement and to submit a regularization plan to relevant authorities. In addition, the bourse said: -- that in the event Bursa Securities decides to delist the company, its securities will be removed from the official list on the expiry of seven market days from the date of notification of the decision, or any other date as specified by Bursa Securities; and -- that in the event Bursa Securities decides not to delist the company, other appropriate action/penalty(ies) may be imposed pursuant to the bourse's listing requirements. * * * Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation Berhad is involved in the provision of plantation management, property development, management and contractor; hotel operation and food court. The Company is also involved in transportation and logistic services, department stores, nominee services, trading securities, manufacture and sale of tools, dies, tyres, rubber compound, light trucks and buses, financial management; distributes steel products, develops real estate property; cultivation of rubber and oil palm, golf and country club, sale and distribute Suzuki motorcycles, beer brewing and mineral water bottling. As reported in the Troubled Company Reporter - Asia Pacific on May 19, 2006, Amsteel Corporation Berhad was classified under Bursa Malaysia Securities Berhad's Amended Practice Note 17 category. The Company was identified as an affected listed issuer because: -- the auditors have expressed a modified opinion with emphasis on the Company's going concern in the Company's latest audited financial statement for the financial year ended June 30, 2005; and -- the Company's consolidated shareholders' equity as of June 30, 2005, represented 17.3% of the issued and paid-up capital of the Company. Pursuant to the PN17 classification, the Company is required to submit and implement a plan to regularize its financial condition. ANTAH HOLDINGS: Posts MYR9.83 Million Profit in December Quarter ---------------------------------------------------------------- Antah Holdings Bhd recorded a net profit of MYR9.83 million on MYR576,000 of revenues in the second quarter ended December 31, 2006, as compared with MYR14.27 million net loss on MYR2.93 million of revenues in the same quarter in 2005. As of end-December 2006, the company's unaudited balance sheet reflected illiquidity with current assets of MYR594.92 million and current liabilities of MYR1.06 billion. Antah Holdings' total assets as of end Dec. 31, 2006, reached MYR691.69 million and total liabilities of MYR1.06 billion. Shareholders' deficit in the company reached MYR376.51 million. A full text-copy of the company's financial statement for the second quarter ended-Dec. 2006, can be viewed for free at: http://bankrupt.com/misc/antah-2q-results.xls * * * Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. Antah Holdings' total assets as of Dec. 31, 2006, reached MYR691.69 million and total liabilities of MYR1.06 billion. Shareholders' deficit in the company reached MYR376.51 million. ARK RESOURCES: Unit Inks Sub-Contracting Agreement w/ Pastiya ------------------------------------------------------------- Ark Thai Co Ltd, a subsidiary of Ark Resources Bhd, has signed a sub contract agreement with Pastiya Thai Co. Ltd for the proposed construction and completion of low cost flats at Suan Plu, Pathana. According to Ark Resources' disclosure with the Bursa Malaysia Securities Bhd, the agreement involves the National Housing Authority of Thailand's project to construct 560 units of low cost flats and the associated external works at a total contract sum of THB52,911,781. The construction period of the project is four months and is due to be completed by the second quarter of 2008. The company's initial total investments in the project is approximately THB5,000,000. It will be funded from internally generated funds and/or borrowings, the company told the bourse. Ark Resources said the project is expected to contribute positively to the earnings of the group for the financial year ending December 31, 2007. * * * ARK Resources Berhad, formerly known as Lankhorst Berhad -- http://www.lankhorst.com.my/-- is an investment holding company with headquarters in Shah Alam, Malaysia. Through its subsidiaries, the Company provides civil and geotechnical engineering. On April 24, 2006, Lankhorst was classified as an affected listed issuer and is required to comply with the provisions of the Bourse's Practice Note 17/2005 category -- which includes the implementation of a regularization plan -- or face delisting procedures. Currently, ARK Resources is under the protection of a Restraining Order pursuant to Section 176 of the Companies Act 1965 and formulating a debt and capital restructuring scheme to improve the Company's financial position. As of September 30, 2006, Ark Resources' balance sheet showed insolvency with total assets of MYR43.83 million and total liabilities of MYR214.37 million, resulting to a shareholders' deficit of MYR170.54 million. COMSA: Inks Deal w/ Principal Odyssey to Develop Quoin Hill ----------------------------------------------------------- Comsa Farms Bhd entered into a Heads of Agreement with Principal Odyssey Sdn Bhd to jointly develop Quoin Hill Land into a full- scale integrated plantation of dragon fruit. Based on the agreement, the development will be undertaken via a joint venture company in which Principal Odyssey and Comsa will hold 60% equity shareholding and 40% equity shareholding, respectively. In addition, both parties agreed that that the equity shareholding in the JVC will be via the injection of not less than MYR90 million cash by Principal Odyssey and the sale of Quoin Hill Land free of encumbrances by Comsa into the JVC. Information on Quoin Hill Land Quoin Hill Land comprises two parcels of leasehold land, together with all existing buildings and structures held under CL105343315 and CL 105343324, Quoin Hill Locality, 40 km to the north east of Tawau Municipal Centre, Sabah. The registered owner of Quoin Hill Land is Comsa Properties Sdn Bhd, a wholly- owned subsidiary of Comsa. The MYR364 million aggregate market value of Quoin Hill Land has been appraised by C H Williams Talhar & Wong (Sabah) Sdn Bhd on December 28, 2004. * * * 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. MALAYSIA AIRLINES: Fosters Codeshare Cooperation with KLM Royal --------------------------------------------------------------- Malaysia Airlines and the KLM Royal Dutch Airlines further intensified the codeshare cooperation they have shared since 1998 through a strong commercial cooperation for flights between the two convenient hubs at Amsterdam and Kuala Lumpur, New Sabah Times reports. According to Malaysia Airlines, starting March 1, KLM passengers on flights between Amsterdam and Kuala Lumpur would be able to book under KLM flight numbers connecting domestic services operated by MAS between the KL International Airport and Penang, Langkawi, and Kota Kinabalu. The new arrangement will cover six flights each between KLIA- Penang and KLIA-Kota Kinabalu as well as five flights between KLIA-Langkawi, the paper relates, citing a statement by the airline. In addition, KLM passengers are also able to codeshare on MAS flights to and from Australia and New Zealand, New Sabah says. In its turn, MAS' codeshares with KLM on European flights to and from Schiphol. "We are very satisfied that we can continuously intensify and extend our successful cooperation with MAS," KLM's senior vice president Alliances, Hans de Roos was quoted by the paper as saying. Datuk Rashid Khan, Malaysia Airlines' senior vice president said the existing code share partnership with KLM is consistent with the airline's business turnaround plan. * * * Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with airlines partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging whistle-blowing and stop corporate sponsorship. STAR CRUISES: Casino License in Singapore not Guaranteed -------------------------------------------------------- Star Cruises and Genting International, both part of the Genting Group, are not guaranteed a casino license in Singapore even if they sign a development agreement this week, Agence France Press reports, citing a statement from the Singapore Government. Both Star Cruises and Genting International are to sign an agreement to develop a US$3.4 billion casino and entertainment complex on Sentosa island, the paper relates. According to the report, a press release from Singapore's Casino Regulation Division stated that the signing of the development agreement and the issuance of a casino license are two separate matters. The signing of the development agreement allowed the firms to proceed with construction, but "does not automatically qualify" them for a casino licence, the regulator added. Accordingly, Singapore's Home Affairs Ministry had told Genting- Star that it would conduct suitability checks "to ensure that the consortium meets the suitability requirements before the casino license is issued, AFP adds. * * * 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. UNITED CHEMICAL: Balance Sheet Upside Down by MYR78MM at Dec. 06 ---------------------------------------------------------------- United Chemical Industries Bhd's unaudited balance sheet as of December 31, 2006, went upside down with total assets of MYR3.15 million and total liabilities of MYR81.28 million, resulting to a shareholders' deficit of MYR78.13 million. Meanwhile, the company incurred a net loss of MYR2.11 million in the fourth quarter ended Dec. 31, 2006, as compared with a net loss of MYR1.94 million in the same quarter of 2005. A full text-copy of the company's financial statement can be viewed for free at: http://www.bankrupt.com/misc/ucib-4thqtr-results.XLS * * * United Chemical Industries Berhad, a company incorporated and domiciled in Malaysia, is a public company limited by shares, and is listed on the Second Board of Bursa Malaysia Securities Berhad. United Chemical is an investment holding company that was previously involved in the manufacture and sale of polypropylene and polyethylene woven bags together with its allied products. Its subsidiary company, Geotextiles (M) Sdn Bhd, was previously involved in the manufacture and sale of geotextile fabrics together with its allied products. The company's unaudited balance sheet as of December 31, 2006, went upside down with total assets of MYR3.15 million and total liabilities of MYR81.28 million, resulting to a shareholders' deficit of MYR78.13 million. ===================== N E W Z E A L A N D ===================== 166 MARSDEN: Court Sets Liquidation Hearing on March 8 ------------------------------------------------------ The High Court of Auckland will hear a liquidation petition against 166 Marsden Ltd on March 8, 2007, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition on Nov. 2, 2006. The CIR's solicitor can be reached at: E. M. Duncan-Sittlington Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0471 A2 CORP: Appoints Le Grice as Exec. Director & A. Lawler as CEO --------------------------------------------------------------- A2 Corporation Limited has appointed Richard Le Grice as the company's Executive Director. As part of the company restructuring which is expected to be an ongoing process, Anthony Lawler has been appointed as sole Chief Executive Officer. Dr. Andrew Clarke is to continue in an executive role, the company notes. According to Chairman Cliff Cook, "this restructuring is a positive reflection of the progress the company has achieved towards commercializing its core assets into an FMCG business. Over the past three years Dr. Clarke has successfully developed the company from a bio-tech start-up to first stage international FMCG company." New Zealand-based A2 Corporation Ltd. -- http://www.a2corporation.com/-- is engaged in the sale and production of beta-casein A2 milk products. The company owns and licenses intellectual property that enables the identification of cattle for the production and subsequent marketing of A2 Milk. During the fiscal year ended March 31, 2006, the company acquired A2 Australia Pty Ltd. In April 2006, the company reacquired the business of A2 Australia Pty Ltd from F&N Dairy Investments Limited. A2 Milk Company LLC provided the Company with a research basis for launching A2 Milk in the North American market. The company suffered net losses of NZ$925,847 and NZ$9,017,633 for the years ended March 31, 2006, and March 31, 2005, respectively. BLUEPARK SEAFOODS: Court Hears Liquidation Petition --------------------------------------------------- The High Court of Palmerston North heard the liquidation petition against Bluepark Seafoods (NZ) Ltd on Feb. 26, 2007. The Commissioner of Inland Revenue filed the petition on Jan. 10, 2007. The CIR's solicitor can be reached at: Catherine Ann Sweet 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 3281 Facsimile:(04) 890 0009 CAPITAL PROPERTIES: To Purchase 2007 Capital Notes on April 15 -------------------------------------------------------------- Capital Properties New Zealand Limited advises the New Zealand Stock Exchange that it will be exercising its option, under the conditions applicable to the 2007 Capital Notes, to purchase for cash on April 15, 2007, the 2007 Capital Notes (those capital notes having an election date of April 15, 2007) on issue. On April 16, 2007, Capital Properties pay to the holders of 2007 Capital Notes for each such capital note an amount equal to the aggregate of the principal amount, accrued and unpaid interest, if any, as at the Election Date. Wellington, New Zealand-based Capital Properties New Zealand Limited -- http://www.cpnz.co.nz/-- is a long-term investor in commercial property. The company provides investors with an income stream by actively managing and developing its portfolio. The company's portfolio includes properties in Wellington and Auckland/New Plymouth, which is made up of office, office/retail, office/retail/carpark and industrial. It includes Bowen House, Bowen State Building, Charles Fergusson Tower and Annex, Defence House, Freyburg Building, St. Paul's Square, State Services Commission Building, Vogel Building, William Clayton Building, Novell House and Lambton Square, Bayleys Building, Forsyth Barr House, Oracle Tower, University of Otago House, Kitchener Street Carpark, National Bank Center, Forsyth Barr Tower, Crown Institute Building, National Bank Computer Center, Ashton Scholastic Building and Center City Building. In April 2006, CNZ was acquired by AMP Property Portfolio Investments Limited. * * * The Troubled Company Reporter - Asia Pacific's Distressed Bonds column in Feb. 27, 2007, reported Capital Properties' bonds with 8.500% and 8.000% coupons with maturity dates of April 15, 2007 and April 15, 2010, as trading at 9.75% and 8.06%, respectively. CLASSIC DE'COR: Faces Liquidation Proceedings --------------------------------------------- An application to liquidate Classic De'cor Painters Ltd was heard before the High Court of Hamilton on Feb. 26, 2007. The Commissioner of Inland Revenue filed the petition on Dec. 22, 2006. The CIR's solicitor can be reached at: Kay Susanne Morgan Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0373 CMA SHELL: Creditors Must Prove Claims by March 2 ------------------------------------------------- The creditors of CMA Shell Ltd are required to prove their claims by March 2, 2007. Failure to prove claims by the due date will exclude a creditor from sharing in any distribution the company will make. The joint liquidators can be reached at: Jeffrey Philip Meltzer Karen Betty Mason Meltzer Mason Heath Chartered Accountants PO Box 6302, Wellesley Street Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 COULIBALY & ASSOCIATES: Petition Hearing Slated for March 8 ----------------------------------------------------------- On Nov. 28, 2006, the Commissioner of Inland Revenue filed a liquidation petition against Coulibaly & Associates Ltd before the High Court of Auckland. The petition will be heard on March 8, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: E. M. Duncan-Sittlington Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0471 GILL INVESTMENTS: Commences Liquidation Proceedings --------------------------------------------------- On Feb. 8, 2007, the shareholders of Gill Investments Taranaki Ltd -- formerly known as Taranaki Glass & Glazing (2000) Ltd -- resolved by special resolution to liquidate the company's business. Subsequently, Alison Ann Turner was appointed as liquidator. The Liquidator can be reached at: Alison Ann Turner Staples Rodway Taranaki Limited 109-113 Powderham Street, New Plymouth New Zealand Telephone:(06) 758 0956 Facsimile:(06) 757 5081 GLOVER LAND: Shareholders Resolve to Close Business --------------------------------------------------- On Feb. 9, 2007, the shareholders of Glover Land Ltd resolved by special resolution to liquidate the company's business and appointed Michael Crawford as liquidator. The Liquidator can be reached at: Michael Crawford PO Box 17, Hamilton New Zealand Telephone:(07) 838 4800 Facsimile:(07) 838 4810 HALLS EARTHWORKS: Creditors' Meeting Slated for March 5 ------------------------------------------------------- The creditors of Halls Earthworks Ltd will hold a meeting on March 5, 2007, at 11:00 a.m. At the meeting, the creditors will consider: -- the liquidators' report containing a statement of the company's affairs; -- whether to confirm the appointment of Bernard S. Montgomerie and Stuart J. Cunningham as joint and several liquidators or to appoint another liquidator; -- whether the liquidators should be asked to have regard to the views, if any, of creditors in conducting the liquidation; and -- whether a liquidation committee be appointed and, if so, to appoint the members of that committee. The joint and several liquidators can be reached at: Bernard Spencer Montgomerie Stuart James Cunningham Montgomerie & Associates Insolvency Practitioners CPO Box 65, Auckland 1015 New Zealand Telephone:(09) 368 7672 Facsimile:(09) 307 0174 MANE HAIR: Hearing of Liquidation Petition Set for April 5 ---------------------------------------------------------- The Commissioner of Inland Revenue filed a petition to liquidate Mane Hair Design Ltd on Jan. 8, 2007. Accordingly, the petition will be heard before the High Court of Auckland on April 5, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: Kay Susanne Morgan Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0373 TE HAU KAINGA: Creditors' Proofs of Claim Due on May 19 ------------------------------------------------------- The creditors of Te Hau Kainga Holdings Ltd are required to submit their proofs of claim by May 19, 2007, to be included in the company's distribution. According to the Troubled Company Reporter - Asia Pacific, the liquidation hearing against the company was heard on Feb. 19, 2007. The Commissioner of Inland Revenue filed the petition. The joint liquidators can be reached at: Vivian Judith Fatupaito Richard Dale Agnew PricewaterhouseCoopers Level 8, PricewaterhouseCoopers Tower 188 Quay Street, (Private Bag 92162) Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 VIDEOWORKS LTD: Court to Hear Liquidation Petition -------------------------------------------------- The High Court of Auckland will hear a liquidation petition against Videoworks Ltd on April 5, 2007, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition on Jan. 8, 2007. The CIR's solicitor can be reached at: Kay Susanne Morgan Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0373 WAI ARIKI: Creditors Must Prove Debts by March 20 ------------------------------------------------- The creditors of Wai Ariki Holdings Ltd are required to prove their debts by March 20, 2007, or they will be excluded from sharing in any distribution the company will make. As reported by the Troubled Company Reporter - Asia Pacific, the High Court of Wanganui heard the liquidation petition against the company on Jan. 31, 2007. Sheetmetal Industries Rotorua Ltd filed the petition. The joint liquidators can be reached at: Grant Bruce Reynolds Gilbert Dale Chapman Reynolds & Associates Limited Insolvency Practitioners PO Box 259059, Greenmount East Tamaki, Auckland New Zealand Telephone:(09) 577 0162 Facsimile:(09) 577 0243 ===================== P H I L I P P I N E S ===================== CHIQUITA BRANDS: Sets Shareholders Annual Meeting for May 24 ------------------------------------------------------------ Chiquita Brands International Inc. will hold its Annual Meeting of Shareholders on May 24, 2007, at the Hilton Cincinnati Netherland Plaza. The record date for determining shareholders entitled to vote at the meeting will be April 6, 2007. The company will mail to shareholders of record in mid-April a notice of the meeting and related proxy materials. About Chiquita Brands Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 60 countries including the Philippines and Australia. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. On Nov. 6, 2006, Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. This rating action follows the company's announcement that it had incurred a USUS$96 million net loss for its 2006 third quarter. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. S&P said the ratings remain on CreditWatch with negative implications where they were placed on Sept. 26. COVANTA HOLDING: Earns US$12 Mil. in Quarter Ended Dec. 31, 2006 ---------------------------------------------------------------- Covanta Holding Corporation reported financial results for the three and twelve months ended Dec. 31, 2006. The company is presenting comparative financial results on an as reported basis for the fourth quarter and a pro forma basis for the full year. The pro forma information was prepared as if the acquisition of Covanta ARC Holdings Inc., which occurred in June 2005, was consummated on Jan. 1, 2005. The company believes that such presentation will assist in assessing Covanta's performance. Fourth Quarter Results For the three months ended Dec. 31, 2006 total operating revenues were US$318 million versus US$303 million in the prior year period. Net income was US$12 million, which compares with 2005 fourth quarter net income of US$6 million. The fourth quarter of 2006 was impacted by a higher than expected effective tax rate. At Covanta Energy Corporation, the company's principal subsidiary, domestic waste and energy operating revenues grew 7% to US$290 million, driven primarily by higher energy rates, contractual service fee escalation and the inclusion of a full quarter of revenue from the Warren facility in the fourth quarter of 2006. International revenues of US$25 million decreased approximately US$3 million versus the prior year primarily due to the sale of a small facility in China during the second quarter of 2006. Covanta Energy's adjusted EBITDA was US$118 million compared to US$126 million in the prior year period. The reduction was primarily due to the Company's increased spending on scheduled domestic plant maintenance during the fourth quarter of 2006. Full Year 2006 For the twelve months ended Dec. 31, 2006, total operating revenues rose 5% to US$1.3 billion while net income was US$106 million, up 53% from the prior year period. Covanta Energy's adjusted EBITDA grew 8% to US$542 million resulting from higher revenues, strong operating performance and the successful execution of cost reduction initiatives. "We are very pleased with our strong operating results in 2006, in particular the meaningful growth we produced from our existing facilities." said Anthony Orlando, the company's President and Chief Executive Officer. "We are also happy with our recently completed recapitalization which positions Covanta to take advantage of promising domestic and international growth opportunities." Recapitalization Plan Successfully Implemented The company completed a comprehensive recapitalization utilizing a series of equity and debt financings in the first quarter of 2007, which included the following components: -- the refinancing of Covanta Energy's debt facilities with new Covanta Energy debt facilities, comprised of a US$300 million revolving credit facility, a US$320 million funded letter of credit facility, and a US$650 million term loan (collectively referred to as the "New Credit Facilities"); -- an underwritten public offering of 6.118 million shares of Covanta's common stock, in which the Company received proceeds of US$136.6 million, net of underwriting discounts and commissions; -- an underwritten public offering of US$373.75 million aggregate principal amount of convertible debentures issued by the company, from which Covanta received proceeds of US$364.4 million, net of underwriting discounts and commissions; and -- the repayment, by means of a tender offer, of US$604.4 million in aggregate principal amount of outstanding notes previously issued by Covanta Energy's intermediate subsidiaries. 2007 Guidance Reaffirmed The Company is reaffirming its full year 2007 guidance on the following key metrics: -- Covanta Energy Adjusted EBITDA in the range of US$545 million to US$565 million; -- Covanta Energy Free Cash Flow in the range of US$290 million to US$320 million; and -- Covanta diluted earnings per share in the range of US$0.65 to US$0.75. Headquartered in Fairfield, New Jersey, Covanta Energy Corp. -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develop, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. Covanta has operations in the Philippines, China, Costa Rica, India, and Bangladesh. * * * As reported in the Troubled Company Reporter on Jan. 24, 2007, Standard & Poor's Ratings Services assigned a 'BB-' corporate credit rating to Covanta Holding Corp. and a 'B' issue rating to the company's US$325 million senior unsecured convertible bonds. At the same time, Standard & Poor's also raised the corporate credit rating on subsidiary Covanta Energy Co., to 'BB-' from 'B+' and assigned a 'BB-' issue rating, with a '2' recovery rating (reflecting 80% to 100% of recovery in a default scenario) to its proposed US$1.3 billion credit facilities consisting of a US$680 million, first-lien secured term loan, US$320 million in funded LOCs, and US$300 million in revolving credit facilities. The outlook remains stable. Moody's Investors Service also assigned a Ba2 rating to Covanta Energy Corp.'s new US$1.3 billion senior secured credit facility and a B1 rating to Covanta Holding Corp.'s US$325 million convertible debentures. The Ba2 rating assigned to the new credit facility is effectively a two-notch upgrade from the B1 rating assigned to Covanta's current first lien credit facility. With the convertible debenture offering, Moody's has reassigned the Corporate Family Rating to Covanta Holding Corp. from its subsidiary, Covanta Energy Corp. Concurrently, the CFR has been upgraded to Ba2 from Ba3. MIRANT CORP: NY Units Want Confirmation Trial Moved to March 21 --------------------------------------------------------------- Mirant New York, Inc., Hudson Valley Gas Corporation and Mirant Bowline, LLC, affiliates of Mirant Corp., asks the Honorable D. Michael Lynn of the United States Bankruptcy Court for the Northern District of Texas to issue an order: (a) approving a proposed form of notice of recommencement of confirmation in connection with their Chapter 11 cases; (b) setting a status conference and hearing on their Supplemental Joint Chapter 11 Plan; (c) establishing a deadline to file objections to the Supplemental Plan; (d) finding that the Supplemental Plan does not alter in any respect the treatment of the holders of unsecured claims against each Emerging New York Entity; therefore, all votes cast by the unsecured claimholders in respect of the confirmed Joint Plan of Reorganization filed by the New Mirant Entities will be deemed votes cast in respect of the Supplemental Plan; and (e) finding that the Supplemental Plan fully incorporates the tax dispute settlement between the Emerging New York Entities and the Town of Haverstraw, the Assessor of the Town of Haverstraw, the Rockland North Central School District and Rockland County, New York; therefore, New York Taxing Authorities with claims against the Emerging New York Entities are unimpaired under the Supplemental Plan. Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth, Texas, relates that the proposed Recommencement Notice establishes March 21, 2007, at 1:30 p.m. prevailing Central Time, as the date on which the Confirmation Hearing will recommence, and March 16, 2007, at 4:00 p.m., as the last day to object to the Supplemental Plan. The Emerging New York Entities will serve the Recommencement Notice on all of their creditors. The Recommencement Notice will also be published in (i) The Wall Street Journal, and (ii) The Journal News, no less than 25 days prior to the recommencement of the Confirmation Hearing. Mr. Prostok asserts that no further disclosure is required in connection with the Supplemental Plan because the treatment of holders of unsecured claims against the Emerging New York Entities under the Supplemental Plan is identical to the treatment the holders would have received under the confirmed Mirant Plan. Under these circumstances, Mr. Prostok continues, there is no need for holders of unsecured claims to receive any disclosures over and above what was received under the Original Disclosure Statement. The votes cast by the holders in respect of the confirmed Mirant Plan should also be deemed votes cast in favor of the Supplemental Plan, he adds. Mr. Prostok reminds the Court that Section 1124 of the Bankruptcy Code provides that a class of claims or interests is unimpaired if the plan "leaves unaltered the legal, equitable, and contractual rights to which such claim of interest entitles the holder of such claim or interest." Section 1126(f) further provides that a class of claims that is unimpaired under a plan is conclusively presumed to have accepted the plan. Mr. Prostok points out that Class 1 - Taxing Jurisdiction Settlement Claims is unimpaired since the Supplemental Plan provides that the Class 1 Claims will "receive the treatment specified in the New York Settlement." The Class 1 Claimholders will receive all their legal, equitable and contractual rights under the New York Settlement without modification, and should conclusively be deemed to have accepted the Supplemental Plan, Mr. Prostok asserts. The Supplemental Plan is available at the Bankruptcy Services Inc. at Third Avenue, 3rd Floor, New York, New York 10017. For questions, if any, contact Jeff Prostok, Esq., Forshey & Prostok LLP 777 Main Street, Suite 1290, Fort Worth, Texas 76102; or Craig H. Averch, Esq., White Case LLP, 633 West Fifth Street, Suite 1900, Los Angeles, California 90071 About Mirant Corp. Headquartered in Atlanta, Georgia, Mirant Corp. (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean and the Philippines. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03- 46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. * * * Moody's Investors Service assigned its B2 corporate family rating, effective July 13, 2006, on Mirant Corporation. Moody's Investors Service assigned its B2 corporate family rating, effective July 13, 2006, on Mirant Corporation. WARNER MUSIC: S&P Puts Ratings on Watch After EMI Merger Talks -------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Warner Music Group Corp., including the 'BB-' corporate credit rating, on CreditWatch with negative implications, following the company's statement that it is exploring a possible merger agreement with EMI Group PLC (BB-/Watch Neg/B), which EMI management has confirmed. "The two companies have not announced a deal or the possible structure of financing, other than indicating that consideration for any deal would be entirely in cash," said Standard & Poor's credit analyst Michael Altberg. "This has prompted our consideration of a potential downgrade." As of Dec. 31, 2006, Warner Music had approximately US$2.27 billion of debt outstanding. In resolving the CreditWatch listing, Standard & Poor's will continue to monitor developments related to the potential buyout proposal. About EMI Group Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in China, Brazil, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near GBP2 billion and operating profit generated was over GBP225 million. About Warner Music Group Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a music company that operates through numerous international affiliates and licensees in more than 50 countries, including the Philippines. ================= S I N G A P O R E ================= CHINA AVIATION: Proposes Dividend of SGD0.02 Per Share ------------------------------------------------------ China Aviation Oil Singapore Corporation Ltd proposed a first and final dividend of SGD0.02 per share. This is pursuant to the increase of the Group's net profit after tax to about SGD369 million for the full year ended Dec. 31, 2006. Excluding the amount of about SGD312 million of debt waived under the restructuring exercise, the Group's profit after tax registered a strong growth of about 95% to SGD57.3 million compared to 2005. The Chairman of China Aviation, Lim Jit Poh, said, "We would like to thank all our shareholders for their continued confidence and support. The proposed dividend is evident that CAO is back on track and has achieved good growth in 2006." The Group's revenue for 2006 was almost SGD3 billion, as compared to about SGD21 million for 2005. This large difference arose because CAO resumed jet fuel procurement on a principal basis in June 2006 and recorded the value of the underlying contracts as revenue. Prior to this, only commission income received was recorded as revenue under the agency model of procurement. In 2006, 4.66 million Metric Tonnes of jet fuel was procured as against 3.04 million MT in 2005. This represents an increase of 53%. Gross profit from jet fuel procurement also increased 31% to SGD22.4 million. The Group received SGD15.2 million in dividend from its 5% investment in Compania Logistica de Hidrocarburos, S.A. This was higher than SGD11 million received in 2005. CAO's associate company, Shanghai Pudong International Aviation Fuel Supply Company Ltd, contributed SGD35.5 million to the profit, compared to SGD38.8 million for 2005. The reduction in total expenses incurred of about US$7 million or 21% compared with 2005 helped contribute to the Group's better overall performance in 2006. This was primarily due to lower professional fees incurred following the completion of the restructuring exercise. However, there was an increase of about US$4 million in finance costs as interest payments of about US$8.4 million were made for the deferred debt under the restructuring exercise. Looking forward, jet fuel demand in China is expected to grow with increased air travel. However, import level is linked to domestic production. Overall, the Group expects the import volume to remain stable. Over the course of the year, the Board had continually focused on strengthening CAO's corporate governance, rebuilding its core business and setting future directions. The Board implemented most of the proposals recommended by the Corporate Governance Assessment Committee to improve the Group's corporate governance. These include the establishment of additional Board Committees, strengthening internal audit functions, setting up a whistle blowing system and improving risk management and internal control capabilities. On the business front, the Group successfully changed its jet fuel procurement business from agency to principal model in June 2006. This marked a milestone for CAO in rebuilding its core business and laid the foundation for the resumption of trading. Further, the Board took the decision to rationalize the company's investments. The company entered into a conditional sale and purchase agreement on Jan. 24, 2007, to sell its 5% stake in Compania Logistica for EUR171 million or SGD342 million. It is the intention of the Board to use the cash proceeds from this sale to retire all the debts under the Creditors' Scheme earlier than scheduled. If this is successful, the Group will save a total interest expense of US$13.1 million over the next four years. The Board believes that full prepayment of the debt will not only relieve CAO of its debt burden, thereby enhancing the Group's ability and flexibility to generate future earnings, but will also improve its standing with existing lenders. The Group also sold a portion of its stake in Xinyuan Petrochemicals Co. Ltd, a non-core investment, to another shareholder of Xinyuan, reducing its equity stake from 80% to 39%. The Board believes that the purchaser is better placed to exploit the potential of Xinyuan's lossmaking oil tank farm and in turn help increase CAO's return on its investment. However, the Group retains its 33% interest in Pudong, as its business model is in line with CAO's core business and it has generated good performance. "Whilst CAO focused on building strong foundations in 2006, the company will implement its development strategy for growth in 2007. The company hopes to complete the joint-asset injection plan under the Memorandum of Understanding signed with China National Aviation Fuel Holding Company and with BP, and to resume trading activities that are consistent with good risk management practices," said Mr. Lim. About China Aviation Oil (Singapore) Incorporated in 1983, China Aviation Oil (Singapore) Corp. Limited -- http://www.caosco.com/-- deals primarily in jet fuel procurement, although it is also active in international oil trading and oil-related investment. The firm commands a near- 100% market share of the procurement of imported jet fuel for China's civil aviation industry, and has expanded its market to include ASEAN countries, the Far East and the United States. The company is undergoing restructuring. Its Restructuring Plan was approved by shareholders on March 3, 2006, and sanctioned by the High Court of Singapore on March 21, 2006. It became effective on March 28, 2006. As reported in the Troubled Company Reporter - Asia Pacific on Nov. 10, 2006, the company is currently working with an insolvent balance sheet, with a US$390.07 million shareholder's deficit on total assets of US$211.96 million. COMPACT METAL: Net Loss Down by 43% to SGD14.34 Mil. in FY 2006 --------------------------------------------------------------- On Feb. 27, 2007, Compact Metal Industries Limited submitted to the Singapore Stock Exchange its unaudited financial results for the fiscal year ended Dec. 31, 2006. The Group reported a net loss of SGD14.34 million for the fiscal year ended Dec. 31, 2006, a 43% decrease from the recorded SGD25.19 million net loss in the fiscal year ended Dec. 31, 2005. The Group attributed the significant reduction to lower losses incurred in the facade engineering business of SGD8.5 million and a gain of SGD1.6 million from the sale of its entire shareholding in an associate company in 2006. For the fiscal year ended Dec. 31, 2006, the Group reported SGD66.81 million in revenues, a 14% decrease against the SGD77.7 million revenues in the corresponding period in 2005. As of Dec. 31, 2006, the Group's balance sheet showed SGD72.04 million in total assets and SGD128.0 million in total liabilities, resulting in a shareholders' equity deficit of SGD55.96 million. On the other hand, the company's balance sheet as of Dec. 31, 2006, showed total assets of SGD40.93 million and SGD90.95 million in total liabilities leaving a shareholders' equity deficit of SGD50.02 million. A full-text copy of the company's financial statement for the fiscal year ended Dec. 31, 2006, is available for free at: http://bankrupt.com/misc/CompactMetalFY2006.pdf About Compact Metal Headquartered in Singapore, with offices in Malaysia, Compact Metal Industries Limited manufactures, fabricates, and sells aluminum windows and doors, aluminum sections, and other metal products. The company also manufactures and sells bricks, undertakes aluminum architectural contracts and engineering works, and sub-contracts building projects. Its other activities include trading aluminium and related products, and hotel ownership and others. As reported by the Troubled Company Reporter - Asia Pacific on Aug. 10, 2006, auditors KPMG raised significant doubt on Compact Metal's ability to continue as a going concern, citing reasons that include: i. the group's and company's current liabilities that exceeded their current assets by SGD81.96 million and SGD78.82 million, respectively, as of December 31, 2005; ii. the group's and company's recorded net liabilities attributable to equity holders of the parent of SGD43.10 million and US$43.83 million, respectively, as of December 31, 2005; and iii. the group's recorded recurring losses with net losses attributable to equity holders of the parent of US$24.09 million for the year ended December 31, 2005. DREAMWORLD ENTERTAINMENT: Proofs of Debt Due on March 23 -------------------------------------------------------- Chee Yoh Chuang and Lim Lee Meng, the appointed liquidators of Dreamworld Entertainment Pte Ltd, requires the company's creditors to file their proofs of debt by March 23, 2007. Creditors who cannot prove debts by the due date will be excluded from the company's distribution of dividend. The Liquidators can be reached at: Chee Yoh Chuang Lim Lee Meng 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 EXCEL MACHINE: Creditors Approve Statement of Proposals at EGM -------------------------------------------------------------- At an extraordinary general meeting held on Feb. 15, 2007, the requisite majority creditors of Excel Machine Tools Ltd -- under judicial management -- approved the judicial managers' Statement of Proposals and the proposed Scheme of Arrangement. The judicial managers will be applying to the High Court of Singapore for sanction of the Scheme of Arrangement. Moreover, the company's independent shareholders passed the two ordinary resolutions at a meeting held on Feb. 23, 2007. The two ordinary resolutions are: -- to approve the Subscription Agreement and the Issue of New Shares; and -- to approve the Whitewash Resolution. FAIRFAX FINANCIAL: Earns US$159.1 Million in 2006 Fourth Quarter ---------------------------------------------------------------- Fairfax Financial Holdings Ltd. reported US$159.1 million in net earnings for the fourth quarter of 2006 and US$227.5 million for the 2006 year, including the effects of a US$69.7 million pre- tax gain on the secondary offering of OdysseyRe common stock during the fourth quarter and a US$412.6 million pre-tax and after-tax non-cash charge related to the commutation in the third quarter of the Swiss Re corporate insurance cover. Fairfax's insurance and reinsurance operations generated favorable underwriting results in 2006, notwithstanding the anticipated continued broad softening in 2006 in commercial insurance and reinsurance classes and lines of business other than certain catastrophe-exposed commercial property markets. The combined ratios of Fairfax's insurance and reinsurance operations were 88.4% and 95.5% for the fourth quarter and 2006 year, respectively, compared to 112.7% and 107.7% for the fourth quarter and 2005 year, respectively (prior to giving effect to the 2005 hurricane losses, the 2005 fourth quarter and fiscal year combined ratios were 92.0% and 93.7%, respectively). Fairfax's insurance and reinsurance operations produced an aggregate underwriting profit of US$198.2 million in 2006, compared to an aggregate underwriting loss of US$333.9 million in 2005. The improved underwriting results and significantly increased investment income, combined with major initiatives including the company's OdysseyRe secondary offering and the commutation of the Swiss Re corporate insurance cover, allowed Fairfax to strengthen its financial position during 2006. Corporate liquidity remained strong, and Fairfax ended 2006 with US$767.4 million of cash, short- term investments and marketable securities at the holding company level, increased from US$559.0 million at the end of 2005. Holding company debt decreased by US$210.1 million during the year to US$1,399.7 million, and Fairfax's debt maturity profile remained largely unchanged, with no significant debt maturities until 2012. "During 2006, our operating insurance and reinsurance subsidiaries performed well and generated significant underwriting profits, while in our runoff units we continued to make solid progress in reducing claims and containing costs," Prem Watsa, chairman and CEO, commented. "Our investment performance was gratifying given the conservative positioning of our investment portfolio. We successfully undertook several measures to significantly strengthen our balance sheet and to bolster our liquidity. We enter 2007 with improved financial strength, disciplined and underwriting-focused operating teams at our insurance and reinsurance companies, effective and economical management of our runoff units and very conservative investment portfolios." Other highlights for 2006 included: * Net premiums written during 2006 at the company' insurance and reinsurance operations increased modestly to US$4.43 billion from US$4.35 billion. * Cash flow from operations at Northbridge, Crum & Forster and OdysseyRe during 2006, even though impacted by the payment of 2005 hurricane claims, increased significantly to US$1,024.0 million from US$752.4 million in 2005. * Total interest and dividend income increased to US$746.5 million in 2006 from US$466.1 million in 2005, due primarily to higher short term interest rates and increased investment portfolios arising from positive cash flows from operations and the realization of investment gains. * Net realized gains on portfolio investments in 2006 increased significantly to US$765.6 million (after being reduced by US$251.0 million of losses, including mark-to- market adjustments recorded as realized losses, related to derivative securities positions) from US$385.7 million in 2005 (after being reduced by US$107.8 million of losses, including mark-to-market adjustments recorded as realized losses, related to derivative securities positions). * During the fourth quarter, the company sold 10.165 million common shares of OdysseyRe in a public secondary offering for net proceeds of US$337.6 million and a gain on sale of US$69.7 million, reducing the company's ownership of OdysseyRe to 59.6%. * During the third quarter, the company commuted the Swiss Re corporate insurance cover. As a result of this transaction, reinsurance recoverables declined by US$1 billion, funds withheld payable to reinsurers declined by US$587.4 million and the company recorded a US$412.6 million non-cash charge (pre-tax and after-tax) in its European runoff unit. * The Runoff and Other segment had a 2006 pre-tax loss of US$20.8 million excluding the financial impact of the aforementioned gain on the OdysseyRe common shares sold by U.S. Runoff companies to facilitate the company's public secondary offering (U.S. Runoff recorded a pre-tax gain on sale of US$111.6 million, a portion of which was eliminated on consolidation, resulting in a US$69.7 million pre-tax gain on a consolidated basis) and the US$412.6 million pre- tax and after-tax charge recorded by European Runoff on the commutation of the Swiss Re corporate insurance cover. The 2006 pre-tax loss for Runoff and Other was US$321.8 million. * During the fourth quarter of 2006, in recognition of progress made to date and the reduced level of resources required going forward, the company announced the closing of three U.S. runoff locations and reduced worldwide runoff staffing levels, incurring a pre-tax charge of US$14.7 million. * Consolidated cash and investments increased to US$16.8 billion at December 31, 2006 from US$14.9 billion at the end of 2005 (net of US$783.3 million and US$700.3 million, respectively, of liabilities for economic hedges against a decline in the equity markets). * The pre-tax net unrealized gain on portfolio investments declined to US$310.6 million at December 31, 2006 from US$558.4 million at the end of 2005, after realizing US$765.6 million in net gains during 2006. * Total common shareholders' equity increased to US$2.7 billion (US$150.16 per basic share) at December 31, 2006 from US$2.4 billion (US$137.50 per basic share) at Dec. 31, 2005, principally as a result of 2006 earnings. * Reinsurance recoverables decreased to US$5.5 billion at December 31, 2006 from US$7.7 billion at December 31, 2005, reflecting the US$1 billion Swiss Re commutation, collections on paid claims related to 2005 hurricane ceded losses and continued collections and commutations by the runoff units. * At December 31, 2006, Crum & Forster's principal operating subsidiaries remained in a positive earned surplus position, with a combined estimated dividend capacity in 2007 of US$138.4 million. Fairfax's 2006 Annual Report is scheduled to be posted on its Web site -- http://www.fairfax.ca/-- after the close of markets on March 9, 2007 and will be mailed shortly thereafter to shareholders. Fairfax held a conference call to discuss its year-end results on Feb. 23, 2007. A replay of the call will be available from shortly after the termination of the call until 5:00 p.m. Eastern time on March 9, 2007. The replay may be accessed at (888) 562-2937 (Canada and U.S.) or 1 (203) 369-3751 (International). Based in Toronto, Ontario, Fairfax Financial Holdings Ltd. (TSX: FFH)(NYSE: FFH) -- http://www.fairfax.ca/-- is a financial services holding company with subsidiaries engaged in property and liability insurance and reinsurance in Canada, the United States, and internationally. Fairfax Asia comprises the company's Asian holdings and operations: Singapore-based First Capital Insurance Limited, Hong Kong-based Falcon Insurance Limited and a 26.0% equity- accounted interest in Mumbai-based ICICI Lombard General Insurance Company Limited, India's largest (by market share) private general insurer (the remaining 74.0% interest is held by ICICI Bank, India's second largest commercial bank). * * * Moody's Investors Service changed the rating outlook for Fairfax Financial Holdings Ltd.'s Ba3 senior debt rating to stable from negative. Moody's said the change in outlook reflects the improved liquidity position at the holding company and within FFH's run-off operations. GETRONICS NV: Inks Strategic Partnership with NTT Data Corp ----------------------------------------------------------- Klaas Wagenaar, CEO of Getronics N.V., and Tomokazu Hamaguchi, President and CEO of NTT Data Corp., have agreed to form a strategic partnership between the firms in Japan. The proposed transaction will enable Getronics to expand its workspace management activities in Japan and increase international client business with NTT Data Corporation. As part of this strategic partnership, NTT Data Corporation has agreed to acquire 70% of Getronics' local operations in Japan for an undisclosed sum. The proposed transaction is subject to agreement of definitive documents and necessary consents, and will be completed in the second quarter of 2007. NTT Data Corporation is well established in Japan, with a particularly strong position in the financial services sector and an extensive local service network. Getronics' current Japanese business is also strong in the financial services sector, in particular in the area of banking application services. As such, there is a strong fit between the two operations. NTT Data Corporation will work closely with Getronics to ensure that the interface with Getronics' Global Service Delivery Model is effective and that their local service delivery operations are smoothly integrated with Getronics' remote service delivery network. NTT Data Corporation's established local presence in Japan will help Getronics to increase its regional profile. In turn, Getronics' leadership position in service innovation will enable NTT Data Corporation to follow more opportunities with new and existing clients. "By forming strong partnerships with leading local players, Getronics can ensure the depth of service that our international clients demand," Mr. Wagenaar said. "We also look forward to exploring shared business opportunities with NTT Data Corporation, as its major clients look to our key markets." Getronics operations in Japan generated EUR103 million of revenues in 2006. The parties expect that no further financial details will be provided until completion. About NTT Data Corporation NTT Data Corporation is a public company currently traded on the Tokyo Stock Exchange (9613 JP) and is a subsidiary of NTT Group of Japan. NTT is an abbreviation for Nippon Telegraph and Telephone Corporation of Japan. As an US$8 billion system integrator with over 20,000 employees globally, NTT Data Corporation has regional offices/subsidiaries in Japan, Asia (Beijing, Shanghai, South Korea, and Kuala Lumpur), Europe (London) and North America (New York, New Jersey, Pennsylvania, Washington D.C., and California). About Getronics Headquartered in Amsterdam, Netherlands, Getronics N.V. -- http://www.getronics.com/-- designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics has some 27,000 employees in over 30 countries and approximate revenues of EUR3 billion. The company has regional offices in Boston, Madrid and Singapore. Its shares are traded on Euronext Amsterdam. * * * Getronics N.V.'s 'B' long-term corporate credit rating, along with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3' recovery ratings on CreditWatch with negative implications, where they had originally been placed on Jan. 19. The '3' recovery rating indicates Standard & Poor's expectation of meaningful (50%-80%) recovery of principal for secured lenders in the event of a payment default. Moody's Investors Service downgraded Getronics' corporate family rating to B2 from B1 and placed the ratings on review for possible downgrade following the company's announcement of half year results showing a widening of net losses and fall in margins below the company's expectations. Concurrently the rating on the EUR100 million senior unsecured convertible Dutch bonds due 2008 has been downgraded to Caa1 from B3. LIFEXCHANGE ASIA: Pays Preferential Dividend -------------------------------------------- Lifexchange Asia Pacific Pte Ltd paid the first and final dividend to its creditors on Feb. 26, 2007. The company paid 100% to all received claims. The liquidators can be reached at: Chia Soo Hien Ng Geok Mui 5 Shenton Way #07-01 UIC Building Singapore 068808 MONEYLINE TELERATE: Creditors Must Prove Debts by March 23 ---------------------------------------------------------- The creditors of Moneyline Telerate (Singapore) Pte Ltd are required to prove their debts by March 23, 2007. Creditors who cannot prove their debts by the due date will be excluded in the company's distribution of dividend. The liquidators can be reached at: Lau Chin Huat c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 PETROLEO BRASILEIRO: To Study Petrosix Technology at Attarat ------------------------------------------------------------ Brazilian state oil firm Petroleo Brasileiro SA has signed a memorandum of understanding with Jordan's energy and mineral resources ministry to study the use of its Petrosix technology at block AUG 21 in the Attarat field, Business News Americas reports. Business News Americas relates that AUG 21 covers about 11 square kilometers and has potential reserves of 1.7 billion barrels. Petroleo Brasileiro said in a statement that its international and downstream officials will conduct the two-year technical and economic feasibility studies. 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 issuer default rating of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. =============== T H A I L A N D =============== DAIMLERCHRYSLER: Plans to Cut 1,000 Salaried Jobs by June 2007 -------------------------------------------------------------- As part of DaimlerChrysler AG's Chrysler Group Recovery and Transformation Plan, the company has targeted the reduction of 2,000 salaried positions by 2008. The Chrysler Group intends to reach that target through attrition and special programs. The special programs include the following separation incentive and early retirement packages for non-bargaining unit, or salaried employees. The aim of the packages is to reach the 2007 reduction target of 1,000 salaried positions by June 30, 2007. The packages include the following programs: Separation Incentive Program: * Eligibility All non-union salaried employees aged 62 or older with 10 Or more years of service as of May 31, 2007. * Program Terms: -- Offers made May 7, 2007, and returned by May 31, 2007. -- Retirements effective May 31, 2007. -- Program incentives include three months salary and either a US$20,000 car voucher grossed up for taxes, or a US$20,000 contribution to the Retirement Health Care Account. -- 100% Retiree Choice medical credits through aged 64 and at age 65 100% Credits in the Health Care Retirement Account. Ordinarily, an employee must be aged 60 with 30 years of service to receive 100%. Special Early Retirement: * Eligibility All non-union salaried employees aged 53 to 61 years old with 10 or more years of service, with earnings in 2006 of less than US$100,000 and select non-union salaried employees, aged 55 to 61 years old with 10 or more years of service with 2006 earnings of US$100,000 or greater. -- This is in compliance with Internal Revenue Service guidelines. -- Eligibility requirements must be satisfied by June 30, 2007. * Program Terms: -- Offers will be made to select employees Jun. 4, 2007, and returned by Jun. 29, 2007. -- Retirements effective Jun. 30, 2007. -- Retirement benefits will not be reduced by an early retirement reduction percent. -- 100% Retiree Choice medical credits through age 64 and at age 65 100% credits in the Health Care Retirement Account. Ordinarily, an employee must be age 60 with 30 years of service to receive 100%. DaimlerChrysler had about 16,800 salaried workers and about 82,500 total employees as of Dec. 31, 2006, Reuters reports citing Chrysler Group spokesman Mike Aberlich. 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: Chrysler & UAW Ink Two Employee Incentive Deals ---------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group and the United Auto Workers agreed to two special programs that will provide retirement and separation incentives for the Company's bargaining-unit employees in the United States as part of the Chrysler Group's Recovery and Transformation Plan. The negotiated programs include an Incentive Program for Retirement with US$70,000 cash lump-sum amount for employees with 30 or more years of credited service, or who meet a combination of age and years-of-service eligibility, and an Enhanced Voluntary Termination of Employment Program, which provides a lump sum payment USof $100,000 for employees with at least one year of credited service. "These actions enable us to become more competitive going forward," Chrysler Group Communications Vice President Jason Vines said. "Chrysler Group and the UAW want to ensure that we have socially responsible separation incentives that will allow us to align our workforce needs with the capacity needs of our manufacturing operations." A letter outlining the plans was sent to affected employees yesterday. 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: May Accept GM Stake in Exchange for Chrysler ---------------------------------------------------------------- DaimlerChrysler AG mulls accepting a minority stake in General Motors Corp. in return for Chrysler if both groups come to an agreement on the sale of the unit, John Reed writes for the Financial Times. As reported in the Troubled Company Reporter-Europe on Feb. 19, citing German publication Manager Magazin, DaimlerChrysler and General Motors are in talks about a possible purchase of the Chrysler Group by GM. If the all-equity deal pushes through, DaimlerChrysler stands to save billions of dollars in synergies and merger costs, FT states. According to the report, both companies have not confirmed the discussions, although at least two of DaimlerChrysler institutional shareholders are in favor of the all-share deal. DaimlerChrysler also has the option to sell the ailing unit to private equity or industry investors and is relying on JPMorgan Chase for advice on its available alternatives, FT relates. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader since 1931. Founded in 1908, GM employs about 284,000 people around the world. It has manufacturing operations in 33 countries and its vehicles are sold in 200 countries. GM sells cars and trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and Vauxhall. 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: Chrysler Eyes Sale of Dodge Cars in China ------------------------------------------------------------- Chrysler Group, the troubled U.S. unit of DaimlerChrysler AG, will start selling Dodge cars in China to further tap demand and increase market share in the country, Bloomberg News reports. Chrysler will introduce a Dodge model, three Jeep models and one Chrysler vehicle in China this year. Chrysler sold 1,477 cars in January, up 81% from the same period in 2006. The company will also start the production of its Chrysler Sebring sedans at its joint venture in Beijing at end-2007, Trevor Hale, a DaimlerChrysler spokesman in China, told Bloomberg News. The company's profitable Mercedes-Benz unit, meanwhile, currently trails behind Audi and BMW, which have been in China for around two years. Mercedes-Benz sold 2,700 units in January, up 64% from the same period in 2006, Bloomberg News relays. DaimlerChrysler and its partners are investing EUR1.5 billion in China to increase capacity and hike its market share. The company opened a manufacturing site with 105,000-unit capacity in Beijing in September 2006. The site could produce up to 25,000 Mercedes-Benz E-Class and C-Class sedans annually, as well as Chrysler and Mitsubishi Motor vehicles. 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. G STEEL: Appoints New Member to Board of Directors -------------------------------------------------- In a regulatory filing with the Stock Exchange of Thailand on Feb. 27, 2007, G Steel PCL disclosed that Kornpranom Wongmongkol had been appointed as a new member to the company's board of directors. Mr. Kornpranom now fills the vacant position left by Stephane Benayon, who resigned from the board on Jan. 5. The other members of the board are: -- Somsak Leeswadtrakul -- Patama Chiachuabsilp -- Pol. Lt. General Prakard Sataman -- Yanyong Kurovat co-signing with Vijit Supinit -- Ryuzo Ogino -- Sasivimon Kasemsri About G Steel PCL G Steel Public Company Ltd, headquartered in Bangkok, produces hot rolled coils (HRC) in different grades and gauges. G Steel is a stand-alone operating entity with no related group companies. * * * Standard & Poor's Ratings Services said on September 26, 2006, that it has affirmed the B+ corporate credit rating on Thailand's G Steel Public Co. Ltd. The outlook is negative. In addition, Moody's Investors Service on September 21, 2006, downgraded G Steel's corporate family and senior unsecured bond ratings from B1 to B2. This rating action follows the company's announcement that it has completed the purchase of up to US$180 million in NSM convertible bonds, which will allow G Steel to convert into approximately 33% stake in NSM over the next 18 months. The ratings outlook is stable. ITV PCL: Gov't Will Seize Control if Penalties Are Unsettled ------------------------------------------------------------ Thailand's military-backed government will seize iTV Pcl, unless the broadcaster pays THB100 billion (US$2.8 billion) in penalties by Mar. 6, 2007, Bloomberg News reports. Bloomberg relates that seizing the broadcaster from Temasek Holdings Pte, the Singaporean company that controls it, may deepen a diplomatic crisis that escalated after Thailand's army chief accused Singapore of spying with assets bought from former Prime Minister Thaksin Shinawatra. Moreover, it would also leave all six free-to-air Thai networks in the hands of the government, which was installed by the military after Prime Minister Thaksin was deposed in a September coup. However, according to Bloomberg, iTV Executive Chairman Niwattumrong Boonsongpaisan said that it will be impossible for iTV to settle the fines, which were imposed because the company did not show enough news and educational programs, and pay a full concession for its license. iTV's fines, the report further explains, arose because iTV was granted reduced concession fees and a cut in the number of hours it had to devote to news and educational programming by an arbitration panel in 2005. Thai courts later overturned the panel's decision and ordered iTV to pay THB2.2 billion in back- fees and interest of 15%, plus a THB97.8 billion fine. The company was also told to restore programming to 70% news and education. The company had proposed paying only the back-fees, pending an arbitration tribunal decision on whether the fine is reasonable and the conditions are fair, Bloomberg recalls. In January, the company proposed that the Government take a controlling stake to offset some of the money owed, or for it to be allowed to pay concession fees in installments, while the fine is negotiated. Temasek, Thaksin Bloomberg recounts that Temasek, in 2006, led a group of investors buying Shin Corp., which controls iTV; Advanced Info Service Pcl, Thailand's biggest mobile-phone company; and Shin Satellite Pcl, the country's only satellite operator among other assets. The group, the report relates, bought more than 96% of Shin Corp. for THB143.12 billion. About half was bought from Prime Minster Thaksin's family, sparking demonstrations because the deal was structured so they didn't have to pay tax on the proceeds. Bloomberg explains that the subsequent coup, the imposition of capital controls and an escalation of violence by Muslim separatists triggered an exodus by investors. The value of investment applications in Thailand fell 24%. The military junta deployed soldiers in Thai newspapers and television stations after the coup and directed media not to report Prime Minister Thaksin's movements or comments. iTV Turnover Thailand's interim government, installed by the junta following the Sept. 19 coup, intends to establish a committee under Thipawadi Meksawan, minister to the Prime Minister's Office, to run iTV until it finds experts in the television business to take over, the report says, citing Finance Minister Pridiyathorn Devakula. iTV's name will be changed, and the Government will continue to pursue payment, Mr. Pridiyathorn said. Mr. Pridiyathorn told Bloomberg that the Government wants to make the transition for iTV as smooth as it can and that it intends to keep all the network's employees. iTV will try to compensate workers who will be forced to find new jobs or sign onto the state-run version of iTV, Bloomberg relates. The company will hold a shareholder meeting on March 20. About iTV iTV Pcl'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. PHELPS DODGE: Moody's Lowers Ratings on US$556.7MM Notes to B1 -------------------------------------------------------------- Moody's Investors Service confirmed Freeport-McMoRan Copper & Gold Inc.'s Ba3 corporate family rating and reported 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, LGD4, 50%. The outlook for both Freeport and Phelps Dodge is stable. In related rating actions, Moody's assigned a Baa3, LGD1, 1.0% senior secured rating to Freeport's $500 million secured revolver and Ba2, LGD2, 29% senior secured ratings to each of Freeport's $1 billion secured revolver, $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, LGD2, 29% 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, LGD4, 63% 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 Nov. 20, 2006 following the disclosure 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: * Freeport-McMoRan Copper & Gold Inc. -- Corporate Family Rating: Ba3 -- Probability of Default Rating: Ba3 Ratings assigned: * 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: * Freeport-McMoRan Copper & Gold Inc. -- US$340 million 6.875% Senior Unsecured Notes due 2014, B1 to Ba2, LGD2, 29% -- US$272 million 10.125% Senior Unsecured Notes due 2010, B1 to Ba2, LGD2, 29% -- US$0.2 million 7.20% Senior Unsecured Notes due 2026, B1 to Ba2, LGD2, 29% Ratings to be downgraded: * Cyprus Amax Minerals Company -- US$60.1 million 7.375% Senior Notes due 2007, Baa2 to B1, LGD4, 63% * Phelps Dodge Corporation -- US$107.9 million 8.75% Senior Notes due 2011, Baa2 to B1, LGD4, 63% -- US$115 million 7.125% Senior Notes due 2027, Baa2 to B1, LGD4, 63% -- US$150 million 6.125% Senior Notes due 2034, Baa2 to B1, LGD4, 63% -- US$193.8 million 9.50% Senior Notes due 2031, Baa2 to B1, LGD4, 63% Ratings to be withdrawn: * PD Capital Trust I -- Preferred Stock Shelf, currently (P)Baa3 * PD Capital Trust II -- Preferred Stock Shelf, currently (P)Baa3 * Phelps Dodge Corporation -- Multiple Seniority Shelf, currently (P)Ba1 Outlook Actions: * Freeport-McMoRan Copper & Gold Inc. -- Outlook, Changed To Stable from Rating Under Review * Cyprus Amax Minerals Company -- Outlook, Changed To Stable from Rating Under Review * Phelps Dodge Corporation -- Outlook, Changed To Stable from Rating Under Review About Phelps Dodge Corp Phelps Dodge -- http://www.phelpsdodge.com/-- is among the world's largest producers of molybdenum, molybdenum-based chemicals, and manufacturer of wire and cable products. Phelps Dodge has operations in Thailand, China, the Philippines and Japan, among others. * * * On June 26, 2006, Moody's Investors Services has placed Phelps Dodge's Ba1 junior preferred shelf rating in CreditWatch for a possible downgrade. ********* 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 ***