/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070302.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 Friday, March 2, 2007, Vol. 10, No. 44 Headlines A U S T R A L I A AUBURN FRUIT: Liquidator to Present Wind-Up Report BRINTAM PTY: Members to Receive Wind-Up Report DRIVELINE PUMPS: Federal Court Enters Wind-Up Order EVANS & TATE: Reports AU$6.7MM Net Loss for HY-Ended Dec. 2006 FREESURF PUBLISHING: Members to Hear Wind-Up Report J.R. THOMAS: Federal Court Issues Wind-Up Order LIFESTYLE VISION: Members Resolve to Close Business PROLEC ENTERPRISES: Members and Creditors to Meet on March 28 ST GEORGE: Will Declare Dividend for Unsecured Creditors SYMBION HEALTH: Reports AU$94 Million EBIT for 1H2007, Up 16% SYMBION HEALTH: Caroly Kay Resigns as Non-Executive Director THE TEXT CITY: Members to Receive Wind-Up Report TOPCON AUSTRALIA: Creditors Must Prove Debts by March 20 C H I N A & H O N G K O N G EAST RIGHT: Placed Under Members' Voluntary Liquidation FINSTAR LIMITED: Members' Final Meeting Slated for March 23 MANLAI COURT: Liquidators Quit Posts PACICO INTERNATIONAL: Creditors Must Prove Debts by March 23 YIU WING: Court to Hear Wind-Up Petition on March 14 I N D I A AES CORP: Restatement Issues Won't Affect Ratings Yet, S&P Says AES CORP: Fitch Affirms Subsidiary's B- Issuer Default Rating GENERAL MOTORS: Expects 6-7% Decrease in February U.S. Sales LML LTD: Narrows 4Q Net Loss to INR144.5 Mil. from INR226 Mil. ORIENTAL BANK OF COMMERCE: Increases BPLR to 12.50% from 11.75% RELIANCE INDUSTRIES: Seeks Members' Consent for Warrants Issue RELIANCE INDUSTRIES: Discloses Board Resolutions at Meeting * India Budget Shows Efforts on Fiscal Consolidation, S&P Says I N D O N E S I A ALCATEL-LUCENT: Inks Marketing Partnership Pact with ConSentry ALLIANCE ONE: Amends & Restates Senior Secured Credit Facility EXCELCOMINDO PRATAMA: Sets to Issue IDR1.5-Tril. Bond in April EXCELCOMINDO PRATAMA: Promotes Mobile Video Services FOSTER WHEELER Wins Contract for Terrace-Wall Reformer FOSTER WHEELER: Wins Contract from Nigeria's LNG Liquefaction GENERAL NUTRITION: Moody's Assigns 'B3' Corporate Family Rating MCDERMOTT INT'L: No TXU Update Regarding Contracts Amidst Sale TELKOM INDONESIA: Plans to Lower Internet Speedy Access Rate TELKOM INDONESIA: Gov't Nominates CFO Rinaldi Firmansyah as CEO TELKOM INDONESIA: Workers Union Calls for Reshuffle J A P A N BANCO BRADESCO: Fourth Quarter 2006 Results Worse Than 2005 BANCO BRADESCO: Regulator Fines Bank BRL8.4MM for Capital Raise DELPHI CORP: Posts US$5.5 Bil. Loss in 2006; Losses to Continue DELPHI CORP: Talks with IUE-CWA Reaches Impasse DELPHI CORP: Amends Equity Purchase Agreement with Investors DELPHI CORP: Court Okays Ivins Phillips as Special Tax Counsel FUJI HEAVY: Sets 683,000-Unit Sales Target in New Business Plan HANKYU HANSHIN: May Sell HDSL Stocks to Hankyu Dep't. Stores MACDERMID INC: S&P Junks Rating on Proposed US$465 Million Notes NIKKO CORDIAL: Stock Dives on Talks of TSE's Final Decision NORTHWEST AIRLINES: Court Approves Mesaba Aviation Acquisition SANYO ELECTRIC: SESC Won't File Charges for Inaccurate Reports US AIRWAYS: America West Merger Plans Spur ALPA to File Lawsuit * Japanese Breweries Need Brand Rationalization, Fitch Says * Outlook Generally Stable for Japan Oil Industry, Moody's Says K O R E A JEONBUK BANK: Posts Highest BIS Ratio Among Regional Banks JEONBUK BANK: Posts Lower SBL Ratio at 0.84% in End-2006 KOREAN DEV'T BANK: Unveils Executive Management Changes KOREA EXPRESS: Earmarks 9,914 New Shares for Seoul Guarantee KOREA EXPRESS: Irish Triumph II Buys 24.06% Stake KOREA MUTUAL: Declares Dividends After 3% Rise in Interim Profit KOOKMIN BANK: Grants Stock Options to Key Management People KOOKMIN BANK: Sets AGM on March KYONGNAM BANK: Records Lowest SBL Ratio Among Regional Banks KYONGNAM BANK: Gets Second Lowest BIS Ratio Among Regional Banks M A L A Y S I A DATUK KERAMAT: Bursa Hands Public Reprimand, Fines Directors GEORGE TOWN: Gets Reprimand Over Failure to File Financials TAP RESOURCES: Bursa to Suspend Securities Trading on March 9 N E W Z E A L A N D ATECH CUTTING: Court Appoints Joint Liquidators BOP HORTICULTURE: Court to Hear Liquidation Petition on March 8 EAST COAST: Appoints Official Assignee as Liquidator FRUEHAUF TRAILERS: Placed Under Receivership, Lays Off Workers HI TECH BUILDING: Faces Liquidation Proceedings KATANA BUSINESS: Shareholders Appoint Joint Liquidators MID CITY: CIR Seeks to Liquidate Company OCTAGON HOUSING: Liquidation Hearing Slated for May 3 PETERRY HOLDINGS: Commences Liquidation Proceedings PUKEATUA CONTRACTING: Court Hears Liquidation Petition THE COVE: Hearing of Liquidation Petition Set for May 3 TRUE DIMENSION: Shareholders Opt to Close Business WHANGAPOUA PROPERTIES: Creditors' Proofs of Claim Due on May 15 WOOL EQUITIES: Commission Completes Review of Trading in Shares P H I L I P P I N E S PHIL. LONG DISTANCE: First Pacific Completes Buying 6.4% Stake PRIME ORION: Subsidiary Sells Pepsi Stake for US$21.16 Million * Bear Stearns Sees Further Strengthening of Peso in June S I N G A P O R E CHINA FORTUNE: High Court to Hear Wind-Up Petition on March 2 GOUDIE ASSOCIATES: Pays First and Final Dividend to Creditors LAZARD LTD: Dec. 31 Balance Sheet Upside-Down by US$240.3 Mil. LEAR CORP: Net Loss Down to US$707.5 Mil. in Year Ended Dec. 31 LIANG HUAT: Net Loss Down by 45% to SGD16.08 Mil. in FY 2006 OVERSEAS SHIPHOLDING: Posts Net Income of US$392.7MM in FY 2006 T H A I L A N D DAIMLERCHRYSLER AG: Chrysler Group February Sales Down 8% PICNIC CORP: SET Posts "Halt" Sign Until Public Fin'l Disclosure SIAM CITY: Appoints New Director and Executive Director TRUE CORP: Posts THB4.18-Billion Net Loss in FY 2006 * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= AUBURN FRUIT: Liquidator to Present Wind-Up Report -------------------------------------------------- The members and creditors of Auburn Fruit World Pty Limited will hold a meeting on March 29, 2007, at 11:00 a.m. At the meeting, Liquidator Bruce Gleeson will present the final accounts of the company's wind-up proceedings and property disposal exercises. The company's Liquidator can be reached at: Bruce Gleeson c/o Jones Partners Chartered Accountants Australia Telephone:(02) 9251 5222 About Auburn Fruit Auburn Fruit World Pty Limited is a distributor of durable goods. The company is located in New South Wales, Australia. BRINTAM PTY: Members to Receive Wind-Up Report ---------------------------------------------- The members of Brintam Pty Limited will hold a general meeting on March 27, 2007, at 10:00 a.m., to hear the liquidator's report about the company's wind-up proceedings and property disposal. As reported by the Troubled Company Reporter - Asia Pacific, the company went into liquidation on Nov. 22, 2006. The company's liquidator can be reached at: J. A. Shaw Ferrier Hodgson Chartered Accountants PO Box 840 Newcastle, New South Wales 2300 Australia About Brintam Pty Brintam Pty Limited provides management services. The company is located in New South Wales, Australia. DRIVELINE PUMPS: Federal Court Enters Wind-Up Order --------------------------------------------------- On Feb. 9, 2007, the Federal Court of Australia entered an order to wind up the operations of Driveline Pumps (Aust) Pty Ltd. Accordingly, Steven Nicols was appointed as liquidator. The company's liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia About Driveline Pumps Driveline Pumps (Aust) Pty Ltd is into manufacturing industries. The company is located in New South Wales, Australia. EVANS & TATE: Reports AU$6.7MM Net Loss for HY-Ended Dec. 2006 -------------------------------------------------------------- Evans & Tate Limited reported a net loss of AU$6.7 million for the half-year ended Dec. 31, 2006, an 85% improvement compared with the figure reported for the corresponding period in 2005. In contrast to the previous year, there were no "one-off" charges recorded in the current period, the company noted. At Dec. 31, 2006, the company had net debt of AU$148 million, including the company's listed Convertible Notes of AU$20 million and the listed WinES preference shares of AU$29.8 million. This represents a net debt reduction of AU$21 million from the position as at June 30, 2006. Operating revenue for the 2006 2nd half was AU$39,371,000, a decrease of 11.2% from the previous corresponding period. Despite this, the loss before financing costs was significantly reduced to AU$512,000, an improvement of 98.7% on the loss of AU$39,298,000 incurred in the previous corresponding period. As of Dec. 31, 2006, the company's balance sheet revealed illiquidity with AU$60.030 billion in total current assets available to pay AU$149.287 billion of total current liabilities. Evans & Tate's Dec. 31, 2006 balance sheet also showed total liabilities of AU$180.620 billion exceeding total assets of AU$160.189 billion, resulting to total shareholders' deficit of AU$74.431 billion. On Feb. 23, 2007, the Directors resolved not to declare any dividend on either the company's preference shares or ordinary shares. During the period, the company made steady progress on its plan to restructure its balance sheet as outlined in the June 30, 2006, annual report. In addition, the company has also disclosed to the market several offers it has received subsequent to balance date from Yarraman Winery Inc. in respect of a proposed merger by way of scheme of arrangement. As of Feb. 28, 2007, the company is engaged in a 21-day period of due diligence in respect of that offer. Evans & Tate notes that it continues to enjoy the support of ANZ Bank and its financial statements have been prepared on a going concern basis. Outlook The results of the first half point to continuing price and promotional pressures on top-line revenues. However, tight cost control and better margins have enabled the company to deliver its bottom line improvement. The Board expects that revenue growth for the full-year will now be in the low single digit range, but continuing focus on the margins and costs will deliver the EBIT breakeven profit forecasted at the company's Annual General Meeting in November 2006. The Board remains committed to restructuring the company's significant debt burden and is actively pursuing a resolution to this. Auditor Issues Going Concern Doubt Evans & Tate's directors believe that it is appropriate to prepare the financial statements on a going concern basis for these reasons: (a) the consolidated entity continues to receive the financial support of ANZ; (b) the Directors' belief that breaches of the existing covenants under ANZ facility agreement will continue to be waived until the time as the balance sheet restructure or other alternatives refinancing is complete; (c) the waiver of the covenant requirement under the Trust Deed until June 30, 2007, is sufficient time to allow the consolidated entity to either restructure its balance sheet or complete other alternative refinancing and therefore achieve compliance by this date. In the event that the consolidated entity is unable to complete either the balance sheet restructure proposal or alternative refinancing solutions by June 30, 2007, the Directors are confident that an extension of the waiver of the covenant requirement under the Trust Deed would be achieved; (d) the extension of the existing ANZ facilities expiry date to Dec. 31, 2007; (e) the projected working capital requirement over the next 12 months will be met by either the proceeds of the new preferred equity issue, alternative refinancing or directly through existing facilities by ANZ in the interim; (f) the Directors' belief that in the event that there is a substantial variation or delay in the restructure proposal, ANZ will continue to support the consolidated entity to identify alternative finance or restructure solutions; and (g) the consolidated entity remains on target to achieve a positive earnings before interest and tax in the 2007 year. Both ANZ facility agreement and the Trust Deed provide that if an event of default occurs, ANZ and the Trustee of the Unsecured Convertible Note holders have various rights including, but not limited to, demanding immediate repayment of the amount due. Should such a circumstance arise or the ANZ withdraws its support of the consolidated entity and if the consolidated entity is not successful in restructuring its balance sheet and financing arrangements or identifying any other acceptable alternatives, there is significant uncertainty whether or not the consolidated entity will be able to continue as a going concern. The company's auditors -- PKF Chartered Accountants -- also pointed at the consolidated entity's incurred net loss during the period ended Dec. 31, 2006, of AU$6,740,000 (2005: loss of AU$44,398,000) and, as of that date, the consolidated entity's current liabilities exceeded its current assets by AU$89,257,000 (June 30, 2006: AU$67,653,000). Accordingly, PKF noted that these conditions along with other matters indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity's ability to continue as a going concern, and therefore whether it will realize its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. About Evans & Tate Headquartered in Wembley, Western Australia, Evans & Tate Limited -- http://www.etw.com.au/-- is an Australian wine company listed on the Australian Stock Exchange. The primary businesses of the Evans & Tate Wine Group are the production, marketing and distribution of a number of branded, exclusive labeled and unbranded wines; contract winemaking; wine trading; viticultural services; and wine tourism through its Visitor Centers. The Troubled Company Reporter - Asia Pacific reported on Sept. 15, 2006, that Evans & Tate posted a loss of AU$63.9 million for the 2005-2006 financial year, down 12% on the corresponding figure for the previous year. Evans & Tate's Dec. 31, 2006 balance sheet also showed total liabilities of AU$180.620 billion exceeding total assets of AU$160.189 billion, resulting to total shareholders' deficit of AU$74.431 billion. The company's auditors -- PKF Chartered Accountants -- raised substantial doubt on the company's ability to continue as going concern after auditing the company's financial report for the half year period ended Dec. 31, 2006. FREESURF PUBLISHING: Members to Hear Wind-Up Report --------------------------------------------------- The members of Freesurf Publishing Pty Ltd will meet on March 27, 2007, at 10:00 a.m., to hear the liquidators' report regarding the company's wind-up proceedings and property disposal. The Troubled Company Reporter - Asia Pacific reported that the company commenced liquidation proceedings on July 31, 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 Freesurf Publishing Located in Victoria, Australia, Freesurf Publishing Pty Ltd is a distributor of durable goods. J.R. THOMAS: Federal Court Issues Wind-Up Order ----------------------------------------------- On Feb. 9, 2007, the Federal Court of Australia issued an order to wind up the operations of J.R. Thomas & Co Pty Ltd. In this regard, Steven Nicols was appointed as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia About J.R. Thomas Located in New South Wales, Australia, J.R. Thomas & Co Pty Ltd is a distributor of durable goods. LIFESTYLE VISION: Members Resolve to Close Business --------------------------------------------------- The members of Lifestyle Vision Pty Ltd met on Feb. 9, 2007, and resolved to voluntarily wind up the company's operations. In this regard, Mathew Campbell Muldoon and Kenneth Stewart Sellars were appointed as liquidators. The company's Liquidators can be reached at: Mathew Campbell Muldoon Kenneth Stewart Sellars SimsPartners Level 2, 446 Collins Street Melbourne, Victoria 3000 Australia About Lifestyle Vision Located in Victoria, Australia, Lifestyle Vision Pty Ltd operates miscellaneous retail stores. PROLEC ENTERPRISES: Members and Creditors to Meet on March 28 ------------------------------------------------------------- The members and creditors of Prolec Enterprises Pty Limited will have their final meeting on March 28, 2007, at 11:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. In this regard, Bruce Gleeson was appointed as liquidator. The company's Liquidator can be reached at: Bruce Gleeson c/o Jones Partners Chartered Accountants Australia Telephone:(02) 9251 5222 About Prolec Enterprises Headquartered in New South Wales, Australia, Prolec Enterprises Pty Limited is a distributor of durable goods. ST GEORGE: Will Declare Dividend for Unsecured Creditors -------------------------------------------------------- St George Welding Industries (Aust) Pty Limited will declare a first and final dividend for its unsecured creditors on March 28, 2007. Unsecured creditors must prove debts by March 27, 2007, to be included in the company's distribution of dividend. The company's liquidators can be reached at: Murray Godfrey RMG Partners Level 12, 88 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9231 0889 About St George St George Welding Industries (Aust) Pty Ltd is a special trade contractor. The company is located in New South Wales, Australia. SYMBION HEALTH: Reports AU$94 Million EBIT for 1H2007, Up 16% ------------------------------------------------------------- Symbion Health Limited reported a 16% increase in continuing business earnings before interest and tax for the six-months ended Dec. 31, 2006. Symbion Health's Directors declared a fully franked final dividend of 4.25 cents per share. According to Symbion Health's Managing Director and Chief Executive Officer Robert Cooke, the company "has delivered a strong first half result, with all divisions improving their performance." Key financial information for the continuing business includes: -- a 10% increase in revenue to AU$1,876.5 million; -- a 15.9% increase in EBIT to AU$94.0 million. EBIT is now reported on a pre-securitization basis. A change in accounting policy during the period resulted in the reclassification of the pharmacy debtors securitization charge to a financing charge; -- a 0.5% decrease in NPAT to AU$46.9 million as a result of higher charges incurred in 1H07; and -- expect FY07 growth in pre-securitization EBIT to be broadly in line with the 16% growth achieved in 1H07. Sales Revenue and Earnings Symbion Health reported a 10% increase in continuing business sales revenue to AU$1,876.5 million in 1H07. EBIT increased 15.9% to AU$94 million over the prior corresponding period, driven by an increase in earnings from the Pathology (including Medical Centers), Pharmacy, and Consumer divisions, and to a lesser extent imaging. The company recorded NPAT of AU$46.9 million in 1H07, compared to AU$47.1 million in 1H06. The increase in earnings from operations was more than offset by an increase in the securitization charge and a higher interest expense. Interest expense increased significantly in 1H07 reflecting the higher debt levels assumed by Symbion Health after the demerger. Similarly, earnings per share decreased marginally from 7.1 cents in 1H06 to 7.0 cents in 1H07. Cashflow and gearing After adjusting for net cash outflows of AU$13.2 million in relation to prior period significant items, cash generated from operations amounted to AU$103.2 million, compared to AU$123.2 million in the prior corresponding period. Cash generated from operations was equivalent to 86% of EBITDA in 1H07. This was lower than the prior corresponding period due to an increase in inventories as a result of higher sales, and a decrease in trade and other creditors balances. The cashflow conversion is expected to return to more normal levels in the second half and going forward. Net debt as at Dec. 31, 2006, was AU$423.4 million, and gearing stood at 33.1%. Symbion expects full year 2007 growth in pre-securitization EBIT to be broadly in line with the 16% growth achieved in 1H07. Melbourne-based Symbion Health Limited -- http://www.symbionhealth.com/-- formerly Mayne Group Limited, provides health products and services. The principal activities of Symbion Health, during the fiscal year ended June 30, 2006, consisted of diagnostic and wellness products and services through its Pathology, Imaging, Medical Centers, Pharmacy Services and Consumer divisions. Symbion Pathology owns and operates private pathology practices, providing pathology services to healthcare professionals and their patients. Symbion Medical Centers provides local communities with healthcare and family medicine. Symbion Imaging provides imaging services to patients on the eastern seaboard of Australia. Symbion Pharmacy Services supplies a line of pharmaceuticals and associated products to pharmacies. Symbion Consumer manufactures and markets nutraceuticals (vitamins and mineral supplements). On Feb. 22, 2007, Moody's Investors Service confirmed the Ba1 issuer rating of Symbion Health Limited and stable outlook. This rating action concludes the review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). As reported in the TCR-AP on Oct. 12, 2005, Moody's affirmed the company's senior unsecured rating of Ba1. At the same time, Moody's revised the rating outlook to stable from negative. The company also carries Moody's NP short-term rating. The TCR-AP has also reported that Standard & Poor's Ratings Services placed its 'BB' corporate credit rating and debt issue ratings on Mayne Group Ltd. on CreditWatch with positive implications. The action follows the lodgment of the company's scheme booklet for consideration by shareholders. SYMBION HEALTH: Caroly Kay Resigns as Non-Executive Director ------------------------------------------------------------ Symbion Health advises the Australian Securities Exchange that Carolyn Kay has retired as a director of the company effective March 1, 2007. Melbourne-based Symbion Health Limited -- http://www.symbionhealth.com/-- formerly Mayne Group Limited, provides health products and services. The principal activities of Symbion Health, during the fiscal year ended June 30, 2006, consisted of diagnostic and wellness products and services through its Pathology, Imaging, Medical Centers, Pharmacy Services and Consumer divisions. Symbion Pathology owns and operates private pathology practices, providing pathology services to healthcare professionals and their patients. Symbion Medical Centers provides local communities with healthcare and family medicine. Symbion Imaging provides imaging services to patients on the eastern seaboard of Australia. Symbion Pharmacy Services supplies a line of pharmaceuticals and associated products to pharmacies. Symbion Consumer manufactures and markets nutraceuticals (vitamins and mineral supplements). On Feb. 22, 2007, Moody's Investors Service confirmed the Ba1 issuer rating of Symbion Health Limited and stable outlook. This rating action concludes the review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). As reported in the TCR-AP on Oct. 12, 2005, Moody's affirmed the company's senior unsecured rating of Ba1. At the same time, Moody's revised the rating outlook to stable from negative. The company also carries Moody's NP short-term rating. The TCR-AP has also reported that Standard & Poor's Ratings Services placed its 'BB' corporate credit rating and debt issue ratings on Mayne Group Ltd. on CreditWatch with positive implications. The action follows the lodgment of the company's scheme booklet for consideration by shareholders. THE TEXT CITY: Members to Receive Wind-Up Report ------------------------------------------------ The members of The Text City Newspaper Company Pty Ltd will hold a meeting on March 27, 2007, at 10:00 a.m., to receive the liquidator's report regarding the company's wind-up proceedings and property disposal. The company was placed in liquidation on July 31, 2006, as reported by the Troubled Company Reporter - Asia Pacific. 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 The Text City The Text City Newspaper Company Pty Ltd -- also trading as The Melbourne City Weekly -- is involved with publishing and printing business. The company is located in New South Wales, Australia. TOPCON AUSTRALIA: Creditors Must Prove Debts by March 20 -------------------------------------------------------- The creditors of Topcon Australia Pty Limited are required to prove their debts by March 20, 2007, to be included in the company's distribution of final dividend. In a report by the Troubled Company Reporter - Asia Pacific, the company entered wind-up proceedings on Nov. 1, 2006. The company's liquidators can be reached at: C. R. Campbell D. J. F. Lombe Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Topcon Australia Headquartered in New South Wales, Australia, Topcon Australia Pty Limited -- http://www.topcon.com.au/-- is a wholly owned subsidiary of Topcon Corporation, a Japanese producer of optical products and equipments used with the products. The company sells products, supplied by its parent company, for ophthalmic, GPS and surveying industries throughout Australia and New Zealand. ================================ C H I N A & H O N G K O N G ================================ EAST RIGHT: Placed Under Members' Voluntary Liquidation ------------------------------------------------------- The members of East Right Enterprises Limited met on Feb. 14, 2007, and resolved to voluntarily wind up the company's operations. In this regard, Chan Shu Kin and Chow Chi Tong, the appointed liquidators, require the company's creditors to submit their proofs of debt by March 23, 2007. The company's Liquidators can be reached at: Chan Shu Kin Chow Chi Tong 9th Floor, Tung Ning Building 249-253 Des Voeux Road Central Hong Kong FINSTAR LIMITED: Members' Final Meeting Slated for March 23 ----------------------------------------------------------- The members of Finstar Limited will hold a final meeting on March 23, 2007, at 11:00 a.m., at Suite 905, 9/F, Centre Point, 181-185 Gloucester Road in Wanchai, Hong Kong. At the meeting, the members will hear the liquidator's report regarding the company's wind-up proceedings and property disposal. MANLAI COURT: Liquidators Quit Posts ------------------------------------ Chan Wah Tip, Michael and Ho Man Kei, Keith ceased to act as liquidators of Manlai Court Property Management Company Limited on Feb. 13, 2007. The company was placed under members' voluntary wind-up on Oct. 9, 2006, as reported by the Troubled Company Reporter - Asia Pacific. The company's former Liquidator can be reached at: Chan Wah Tip, Michael Ho Man Kei, Keith 601 Prince's Building Chater Road, Central Hong Kong PACICO INTERNATIONAL: Creditors Must Prove Debts by March 23 ------------------------------------------------------------ The creditors of Pacico International Limited are required to prove their debts by March 23, 2007, to be included in the company's distribution of dividend. In a report by the Troubled Company Reporter - Asia Pacific, the company entered liquidation proceedings on Feb. 14, 2007. The company's liquidators can be reached at: Lai Kar Yan, Derek Darach E. Haughey 35th Floor, One Pacific Place 88 Queensway Hong Kong YIU WING: Court to Hear Wind-Up Petition on March 14 ---------------------------------------------------- On Jan. 10, 2007, Impact Entertainment International Limited -- trading as Entertainment Impact -- filed a petition to wind up the operations of Yiu Wing Investment Holdings Limited before the High Court of Hong Kong. The petition will be heard on March 14, 2007, at 9:30 a.m. Impact Entertainment's solicitor can be reached at: Raymond T. Y. Chan Victoria Chan & Co. 3rd Floor, Crocodile House I 50 Connaught Road Central Hong Kong Telephone: 2523 2820 Facsimile: 2845 1605 ========= I N D I A ========= AES CORP: Restatement Issues Won't Affect Ratings Yet, S&P Says --------------------------------------------------------------- Standard & Poor's Ratings Services said that The AES Corp.'s (BB-/Stable/--) announcement that it would delay the release of its 2006 10-K, that it would restate previous financial statements because it has discovered certain errors mostly related to previously identified material weaknesses, and that it is reviewing its accounting for long-term compensation, does not immediately affect the company's ratings or outlook. The review is not yet complete and AES Corp. has not yet determined the final amount of the adjustments, but at this time the company does not believe they will be material or will affect its cash balances. The restatements should not affect our view of the company's future credit quality, but they do raise further questions regarding AES Corp.'s accounting and financial controls, problems with which were first brought to light about two years ago. Although not expected to cause credit deterioration on their own, these accounting issues could hinder the company's ability to develop positive rating momentum as long as they go unresolved. 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 presence in China, India and Sri Lanka. * * * In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. AES CORP: Fitch Affirms Subsidiary's B- Issuer Default Rating ------------------------------------------------------------- Fitch has affirmed AES Dominicana Energia Finance, S.A.'s foreign currency Issuer Default Rating at 'B-'. The rating outlook is stable. Fitch has also affirmed the 'B-/RR4' rating of the company's US$160 million of senior unsecured notes due 2015. The notes are jointly and severally guaranteed by AES Dominicana's two operating companies, AES Andres B.V. and Dominican Power Partners. In addition, the notes benefit from a six-month debt- service reserve account and a US$23.5 million guarantee from AES Corp., rated 'B+' by Fitch. The 'RR4' recovery rating reflects the Dominican Republic's recovery rating cap. AES Dominicana's ratings are based on the credit quality of the company's two main electricity generation assets, Andres and Dominican Power. The company's credit metrics are considered strong for the rating category and have recently improved significantly. The ratings also consider the company's dependence on government subsidies and the systemic risks associated with the power sector in the Dominican Republic. Over the next two years, Fitch expects the government to continue to support the sector via subsidies and the sector to slowly recover. The recent government initiatives to re- negotiate power purchase agreements might increase cash flow generation uncertainty for generation companies. Andres and Dominican Power enjoy a competitive advantage due to their favorable power purchase agreements and the use of liquefied natural gas or LNG versus other fuels to generate electricity. AES Dominicana controls the only LNG import point into the Dominican Republic. Andres is the newest and most efficient power plant in the country and ranks among the lowest cost electricity generators in the country. Andres' combined- cycle plant burns natural gas and is expected to be fully dispatched as a base load unit as long as the LNG price is not more than 15% above the imported price of fuel oil No. 6. Due to increased electricity generation, strong collections and favorable natural gas prices, AES Dominicana's credit metrics have exceeded expectations and are considered to be one year ahead of projections. The company generated EBITDA of US$74.3 million as of the last twelve months ended Sep. 30, 2006. Annual debt service of US$17.6 million can be adequately met using cash on hand of US$46 million as of Sept. 30, 2006, and free cash flow generation. The Dominican Republic power sector is characterized by low collections from end users and high electricity losses. This creates great uncertainty towards the government respect for private property. Such conditions have kept distribution companies from effectively transferring cash to the country's generation companies. The proposed electricity law reform that will penalized electricity theft is viewed as positive for the sector. Should the reform be approved by congress and passed into law, the sector benefits are expected to take place in two phases. Phase one will be a sharp reduction in electricity losses from theft of electricity from industrial customers. The second phase would be more challenging given that it requires significant investments from distribution companies in order to convert non-paying non-subscribers families and small users to regulated customers. Over the past two and a half years, the Dominican government has provided approximately US$1.4 billion of subsidies to the sector and has budgeted US$400 million in subsidies for 2007. This compare favorably with the US$500 million budgeted and allocated subsidies during 2006 and the US$600 million of subsidies during 2005. Going forward, subsidies to distribution companies are expected to decline as discos should increase efficiency by increasing collections and reducing losses and government funding tightens. If the sector's systemic problem does not improve, it will continue depending on the government's onerous subsidy program in order to endure. AES Dominicana is an energy group operating in the Dominican Republic, which manages two of AES Corp.'s wholly owned generation assets, Andres and Dominican Power. AES Dominicana, through an AES Corp subsidiary, also has a management agreement to operate EDE-Este, one of the three distribution companies in the country. Andres is a power plant with a 304 MW combined cycle generation facility with duel fuel capability (gas and diesel) but with natural gas supplied through the LNG import facility serving as the primary fuel while DPP is a 236 MW power plant comprising two simple-cycle combustion turbines that can burn both natural gas and fuel oil Number 2. Both plants together have PPA contracts with EDE-Este for 260 MW that increase over time, but Andres is currently servicing all contracts given its greater efficiency. Andres LNG terminal includes a large tanker berth and jetty, an LNG refueling pier, and a one million barrel (160,000 cubic meters, m3) LNG storage tank, as well as regasification and handling facilities for both LNG and diesel. 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 presence in China, India and Sri Lanka. GENERAL MOTORS: Expects 6-7% Decrease in February U.S. Sales ------------------------------------------------------------ Following its decision to reduce sales to daily rental fleets, General Motors Corp. expects its February U.S. sales to be down between 6 to 7%, Reuters reports. GM reduced discounted fleet sales with the prospect of returning to profitability in North America. The move, according to analysts, allowed the automaker to keep its assembly plants running but eroded the value of its brands. GM spokesman John McDonald told Reuters in an interview that the company expects retail sales to be flat for the month. Overall, Mr. McDonald added, GM expects the U.S. February industry sales to come in at an annualized rate of 16 million units. According to Reuters, GM planned to cut its daily rental sales more than 200,000 units this year after a reduction of about 77,000 units in 2006. The planned cuts would take GM's annual rental-related sales below 700,000 units by the end of 2008 from more than 1 million before the effort began. GM shares eased more than 2% in pre-market trading after finishing almost 1% lower in Monday trade on the New York Stock Exchange, Reuters said. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including India, Mexico, and its vehicles are sold in 200 countries. * * * Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed on March 29, 2006. As reported in the Troubled Company Reporter - Asia Pacific on Jan. 31, 2007, S&P said that the company's announcement that it is restating financial results from 2002 through the third quarter of 2006 raises new concerns about the integrity of the company's financial reporting and internal controls, but has no immediate effect on the ratings on GM, GMAC LLC (BB+/Developing/B-1), or GMAC unit Residential Capital LLC (ResCap; BBB/Negative/A-3). As reported in TCR-AP on Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan. The term loan is expected to be secured by a first priority perfected security interest in all of the US machinery and equipment, and special tools of GM and Saturn Corporation. LML LTD: Narrows 4Q Net Loss to INR144.5 Mil. from INR226 Mil. -------------------------------------------------------------- Despite a sharp fall in revenues, LML Limited narrowed its net loss to INR144.5 million in the quarter ended Dec. 31, 2006, from the INR225.9-million net loss incurred in the corresponding quarter in 2005. LML's total income plunged to INR6.12 million in the December 2006 quarter from the INR1.11 billion in the December 2005 quarter. LML said that its operations have been severely affected due to the illegal strike by its workmen pursuant to which a lockout was declared on March 7, 2006. The lockout is still continuing and, currently, the company's operations relate to only one segment -- motorized two-wheelers. With the lockout, the company incurred operating expenditures totaling to INR42.5 million in the fourth quarter of 2006, compared with INR1.32 billion in the same quarter in 2005. Interest charges showed slight change -- INR46.7 million in the December 2006 quarter and INR51.6 million in the December 2005 quarter. The company recorded depreciation expense of INR61 million and provision for taxes of INR500,000 for the December 2006 quarter. A copy of the company's financial results for the quarter ended Dec. 31, 2006, is available for free at http://ResearchArchives.com/t/s?1a99 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, 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. For the 18 months ended Sept. 30, 2006, LML 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. ORIENTAL BANK OF COMMERCE: Increases BPLR to 12.50% from 11.75% --------------------------------------------------------------- The Oriental Bank of Commerce increased its benchmark prime lending rate by 75 basis points from 11.75% to 12.50% with effect from Feb. 23, 2007. The rate has been raised in view of increase in cost of deposits, recent cash recovery rate hike coupled with increased provisioning requirement on standard advances under certain segments, Zee News says, citing a statement made by the bank. The BPLR hike is, however, not applicable to housing loans up to INR20 lakh and education loan up to INR4 lakh, the news agency notes. Headquartered in New Delhi, India, Oriental Bank of Commerce -- http://www.obcindia.com/-- is a scheduled commercial bank. The company's domestic services include deposits, comprised of term deposits, savings accounts, current accounts and the Suvidha deposit scheme; advances, which consist of corporate advances, a range of retail credit products and specialty schemes, and government business, comprised of direct tax collection, pension disbursement and savings bonds. It also provides non-resident Indian banking solutions, including non-resident external accounts, non-resident ordinary accounts, foreign currency non- resident accounts and resident foreign currency accounts. It also offers debit card services. The bank also provides treasury services and merchant banking services. * * * The Troubled Company Reporter - Asia Pacific reported on Aug. 21, 2006, that Fitch Ratings assigned a long-term foreign currency issuer default rating of BB+ to Oriental Bank of Commerce. The Bank's individual and support ratings have been affirmed at C/D and 4, respectively. The outlook on the ratings is stable. RELIANCE INDUSTRIES: Seeks Members' Consent for Warrants Issue -------------------------------------------------------------- Reliance Industries Limited has initiated the necessary steps to implement its proposal of the Preferential Offer of Warrants to its promoter/promoter group pursuant to a meeting of its board of directors held on Feb. 24, 2007. Consent of the Shareholders is being sought through a postal ballot. The issue price of the shares arising out of exercise of the warrants will be INR1,402. This price is the average of the weekly high and low of the closing prices of the company's equity shares quoted on the National Stock Exchange of India Limited during the two weeks preceding the relevant date -- Feb. 27, 2007. The INR1,402 price is against the price of INR1,253 per share being the average of the weekly high and low of the closing prices of the company's equity shares quoted on the National Stock Exchange of India Limited during the six months preceding Feb. 27, 2007. The last date for receipt of the Postal Ballot from the shareholders is March 29, 2007. The company is expected to announce the results of the resolution being passed through Postal Ballot on March 30, 2007. Reliance Industries Ltd -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. RELIANCE INDUSTRIES: Discloses Board Resolutions at Meeting ----------------------------------------------------------- The board of directors of Reliance Industries Ltd has made these decision at its meeting: 1. Confirm the decision taken on Nov. 9, 2006, to raise US$2 billion to finance the capital expenditure plan for oil and gas business through External Commercial Borrowings by way of debt. 2. Raise further equity by way of preferential issue of 12 crore warrants exercisable into equal number of equity shares of INR10 each of the company to the Promoters as per SEBI guidelines for Preferential Issues, subject to shareholders approval. An amount equivalent to 10% of the price would be paid on allotment of warrants and the remaining 90% would be paid at the time of subscription to equity shares on exercise of rights attached to the warrants within a period of 18 months. On exercise of such rights the paid up capital of the company will increase from INR1,393 crore to INR1,513 crore. 3. Build one of the largest integrated cracker and petrochemicals complex with a total capacity of 2 mmtpa in the SEZ at Jamnagar. This cracker will use refinery off gases and other byproducts as feedstock to manufacture ethylene, propylene and its downstream commodity and specialty derivatives. The proposed facility will be built at a capital cost of US$3 billion and is expected to go on stream by 2010-11. This unique integration with the refinery will place the proposed cracker complex at par with the most efficient producers of olefins and derivatives in the world including those in the Middle East and will enable the Company to achieve one of the most competitive cost positions. 4. Appoint Dr. R.A. Mashelkar as an independent director on the Company's board, subject to necessary Government approvals. Dr. Mashelkar is an eminent scientist and engineer and has an outstanding academic record and has held several high positions in the field of Science and Technology. Dr. Mashelkar is presently the President of the Indian National Science Academy and President of Global Research Alliance, a network of publicly funded R&D institute from Asia Pacific, Europe & U.S.A. with over 60,000 scientists. Dr. Mashelkar was awarded the Padmashri in 1991 and Padmabhushan in 2000, and is the only third Indian engineer to have been elected as Fellow of Royal Society (FRS) London in the twentieth Century. Reliance Chairman Mukesh Ambani said "The Board's approval to enhance the equity capital of the Company by Preferential issue of warrants to promoters demonstrates our commitment to value creation at Reliance. The substantial enhancement of shareholders funds will take RIL to a higher growth platform by strengthening its capital structure. I am really excited about accelerating our investments in all our key businesses - oil & gas, refining, petrochemicals and retailing by both organic and inorganic growth initiatives." Reliance Industries Ltd -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. * India Budget Shows Efforts on Fiscal Consolidation, S&P Says -------------------------------------------------------------- Standard & Poor's Ratings Services, on March 1, 2007, said that the budget announced by the Indian government (foreign currency BBB-/Stable/A-3; local currency BBB-/Stable/A-3) reflects ongoing efforts toward fiscal consolidation. The fiscal 2007-2008 (ending March 31, 2008) budget targets a central government deficit of 3.4% of GDP, after registering 3.7% in fiscal 2006-2007. The expected reduction in the deficit keeps the government on a path to achieve the objectives set out under the Fiscal Responsibility and Budget Management Act 2003, among which is to reduce the budget deficit to 3.0% by 2009. Continuing adherence to the fiscal targets set out in the FRBM remains a cornerstone in maintaining the sovereign's creditworthiness. A key challenge facing the government in the coming years will be its ability to balance the need for further fiscal consolidation with its pro-growth objectives. The Eleventh Plan, which begins in 2007-2008 and provides the framework for the latest budget and those in the next several years, aims to achieve a growth rate of about 10% by 2012-2013. Other challenges include the risk of increasing political pressure to spend in the run-up to national polls due in 2009 and the Sixth Pay Commission. Both of these factors could derail what has been steady progress in recent years on the fiscal front, with the deficit decreasing to its present levels from 5.9% in 2002- 2003. The latest budget looks to have struck a balance between fiscal consolidation and the need to spend, especially in key areas such as agriculture, the rural economy, and social services. Expectations for continuing strong revenue growth, especially tax revenues, have allowed the government greater room to spur growth and reduce poverty. The flexibility accorded by such revenue growth will be vital given ongoing spending pressures related to public investment, infrastructure, and the rural and social sectors. The latest budget, in which the government has increased its allocations for education and health by 34% and 22%, respectively, underlines such spending commitments. The latest budget also introduces measures to address price- related pressures. Leading the way is a reduction in customs and excise duties for a number of commodities such as edible oil, cement, gasoline, and diesel to ease the prices for such commodities. Notably, the agriculture sector is a key focus of the latest budget, reflecting the sector's central role in India's overall growth story and its social-political importance. The budget addresses the need to alleviate price pressures emanating from this sector due to supply constraints. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Inks Marketing Partnership Pact with ConSentry -------------------------------------------------------------- ConSentry Networks, announced a multi-year worldwide Original Equipment Manufacturer or OEM agreement with Alcatel-Lucent for its award-winning LANShieldTM Switch and LANShield Controller platforms as well as its InSightTM Command Center. Under the terms of the agreement, Alcatel-Lucent will market the ConSentry products under the OmniAccess SafeGuard brand across the global Alcatel-Lucent enterprise market beginning in March 2007. Supporting both pre-admission and post-admission controls, the ConSentry LANShield family provides enterprises with a proven and affordable solution for controlling access to resources and applications on the LAN. Since introducing its Controller platform in September 2005 and Switch platform in May 2006, ConSentry has deployed LANShield systems capable of controlling more than a half-million end users. With the agreement, ConSentry adds the power and breadth of the Alcatel-Lucent sales, service, and support teams to capitalize on that strong momentum and extend its leadership position. "The ConSentry platform is unique in its ability to provide both comprehensive threat control and identity-based access control, including the ability to provide per-application enforcement. We believe the all-in-one platform provides strong differentiation for security managers looking to increase overall security and improve visibility in a simple, cost- effective way," said Tom Burns, head of Alcatel-Lucent enterprise solutions activities. "We had a record fourth quarter, and this agreement with Alcatel-Lucent marks another major milestone for ConSentry," said Tom Barsi, ConSentry president and CEO. "Alcatel-Lucent has developed an impressive global base of customers and partners. Our relationship with the company will enable us to expand our global market reach and accelerate our leadership position in LAN security." Many industry observers have forecast 2007 as the year of Network Access Control or NAC maturation. While many NAC products focus solely on LAN admission, the ConSentry LANShield family provides a more comprehensive approach to LAN security, focusing on post-admission controls. So in addition to the authentication and posture check functionality that ensures only valid people and systems can enter a LAN, the ConSentry devices also offer complete visibility into all network activities, logged by user and including server and application details; identity-based controls to restrict access to resources based on a user's role in an organization; and zero-day malware containment to automatically minimize the impact of worms, viruses, and other network-borne threats to LAN security. "The demand for increased security control embedded into traditional network infrastructure equipment will clearly increase starting this year," said Mark Fabbi, vice president and distinguished analyst in Gartner's enterprise infrastructure team. "Enterprise network architects must realize that the focus for future network purchases will shift from connecting the dots to providing more business-focused services for the enterprise. Vendors that recognize and lead this shift will be in a good position to gain traction in the competitive network infrastructure market." About ConSentry Networks ConSentry Networks delivers Control without Compromise with its family of award-winning LANShield platforms - the LANShieldTM Controller and LANShield Switch. ConSentry enables businesses to protect their corporate assets, ensure continuity of operations, and dramatically reduce the risk of security breaches. ConSentry's LANShield platforms and InSightTM Command Center provide network admission control, visibility, identity- based control, and threat control. This combination of pre- and post-admission controls provides enterprises with a simple, proven, and affordable means of integrating security into their LAN infrastructure and controlling access to business resources and applications. Backed by blue-chip venture capital firms that include Accel Partners, DAG Ventures, INVESCO Private Capital, and Sequoia Capital, ConSentry is headquartered in Milpitas, California. ConSentry Networks also has offices in Germany, United Kingdom and Japan. 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. ALLIANCE ONE: Amends & Restates Senior Secured Credit Facility -------------------------------------------------------------- Alliance One International, Inc., a leading independent leaf tobacco merchant, commenced a process to amend and restate its existing senior secured credit facility. Alliance One expects the amended and restated credit facility to consist of a three and one-half year US$250.0 million senior secured revolving credit line and a four-year US$135.0 million senior secured term loan. Alliance One expects the amendment and restatement, which requires the approval of the lenders under the existing senior secured credit facility, to occur on or prior to March 31, 2007. However, there can be no assurance that the amendment and restatement of the senior secured credit facility will close at the time currently expected or at all. About Alliance One Based in Morrisville, North Carolina, Alliance One International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a leaf tobacco merchant. The company has worldwide operations, including those in Indonesia, Argentina, Brazil, Bulgaria, Canada, China, France, India, Philippines, Malaysia, and Singapore. * * * The Troubled Company Reporter - Asia Pacific reported on Sept. 29, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its B2 Corporate Family Rating for Alliance One International, Inc., and upgraded its B2 rating on the company's US$300 million senior secured revolver to B1. In addition, Moody's assigned an LGD3 rating to notes, suggesting noteholders will experience a 37% loss in the event of a default. EXCELCOMINDO PRATAMA: Sets to Issue IDR1.5-Tril. Bond in April -------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on Jan. 22, 2007, that PT Excelcomindo Pratama Tbk plans to raise IDR1.5 trillion (US$164.3 million) by issuing bonds in the second quarter of 2007. In an update, Reuters relates that Excelcomindo Pratama will offer its planned bond issue on April 18-20. Excelcom, according to the report, said that the five-year bonds will be listed on The Surabaya Stock Exchange on April 27. The company, recounts Reuters, had earlier said that it is seeking up to US$430 million in loans to fund capital spending to meet the demands of its growing user base. Hasnul Suhaimi, Excelcom's president director, said in an interview that the company's shareholders have approved to obtain the loans, in which around a third of it, or about IDR1.5 trillion, would be in bonds, the TCR-AP report stated. The TCR-AP, in a separate report on Feb. 8, 2007, cited Bisnis Indonesia as saying that the company, together with a unit of parent firm Telekom Malaysia Bhd, hired PT CIMB GK Securities Indonesia, PT Standard Chartered Securities Indonesia, and PT Danareksa Sekuritas as managers for the issue. The Reuters report also includes BS Vickers Securities Indonesian in the list of managers. About Excelcomindo Pratama Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/-- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider (ISP) and Voice over Internet Protocol services. In addition, Excelcomindo provides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its call centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. Excelcomindo is Indonesia's third-largest cellular operator; as at the first quarter of 2006 the company had 8.2 million subscribers representing total market share of around 15% but with cellular revenue market share of approximately 10%. TM and its parent Khazanah together hold 73.7% in XL. * * * A Feb. 7, 2007 report by the Troubled Company Reporter - Asia Pacific stated that Moody's Investors Service revised the outlook to positive from stable on Excelcomindo Finance Company B.V.'s Ba3 foreign currency senior unsecured bond rating. The bond is irrevocably and unconditionally guaranteed by PT Excelcomindo Pratama. This rating action follows Moody's decision to revise the rating outlook on Indonesia's Ba3 foreign currency sovereign ceiling to positive. At the same time, Moody's has affirmed the Ba2 local currency corporate family rating of Excelcomindo Pratama. The outlook for the rating remains stable. A subsequent TCR-AP report says that Fitch Ratings, on June 5, 2006, upgraded PT Excelcomindo Pratama's Long-term foreign currency and local currency Issuer Default Ratings to 'BB-' from 'B+'. The outlook on the ratings is stable. EXCELCOMINDO PRATAMA: Promotes Mobile Video Services ---------------------------------------------------- PT Excelcomindo Pratama Tbk says its 10 million-strong subscriber base will soon be able to enjoy mobile video technology, Teleography reports. According to the report, this is due to a tie-up with technology developers IP Unity Glenayre, Dilithium, Polycom, locally based Asia Quattro Net and Inphosoft. The company in a statement said that it is working with IP Unity Glenayre, a specialist in delivering messaging and multimedia solutions over IP, Time Division Multiplexing and enterprise networks, to bring mobile video services to South East Asia, the report notes. The report recounts that Excelcom launched its 3G network in September 2006, claiming that they are the first with the widest & fastest 3G network in Indonesia. About Excelcomindo Pratama Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/-- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider (ISP) and Voice over Internet Protocol services. In addition, Excelcomindoprovides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its call centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. Excelcomindo is Indonesia's third-largest cellular operator; as at the first quarter of 2006 the company had 8.2 million subscribers representing total market share of around 15% but with cellular revenue market share of approximately 10%. TM and its parent Khazanah together hold 73.7% in XL. * * * A Feb. 7, 2007 report by the Troubled Company Reporter - Asia Pacific stated that Moody's Investors Service revised the outlook to positive from stable on Excelcomindo Finance Company B.V.'s Ba3 foreign currency senior unsecured bond rating. The bond is irrevocably and unconditionally guaranteed by PT Excelcomindo Pratama. This rating action follows Moody's decision to revise the rating outlook on Indonesia's Ba3 foreign currency sovereign ceiling to positive. At the same time, Moody's has affirmed the Ba2 local currency corporate family rating of Excelcomindo Pratama. The outlook for the rating remains stable. A subsequent TCR-AP report says that Fitch Ratings, on June 5, 2006, upgraded PT Excelcomindo Pratama's Long-term foreign currency and local currency Issuer Default Ratings to 'BB-' from 'B+'. The outlook on the ratings is stable. FOSTER WHEELER Wins Contract for Terrace-Wall Reformer ------------------------------------------------------ Foster Wheeler Ltd.'s subsidiary, Foster Wheeler Energy Limited, part of its Global Engineering and Construction Group, has been awarded an engineering and materials supply contract for a Terrace-Wall reformer and three fired heaters by CTCI Corporation. CTCI is the engineering, procurement & construction prime contractor for the Bangchak Petroleum Public Co. Ltd.'s Product Quality Improvement project at its refinery in Thailand. The objective of the project is to upgrade fuel oil to produce higher-value products such as gasoline, kerosene and diesel. The Foster Wheeler contract value was not disclosed and the award was included in the company's fourth-quarter 2006 bookings. The project includes a hydrogen production plant, which will use steam-reforming technology licensed from Foster Wheeler and a Foster Wheeler Terrace-Wall reformer. The hydrogen production plant will have the capacity to produce 40 million standard cubic feet per day, or 44,680 normal cubic meters per hour, of high-purity hydrogen. The hydrogen production plant is planned for operation by mid-2008. Foster Wheeler will also supply three fired heaters for the vacuum distillation and hydrocracker units. "This award further strengthens Foster Wheeler's excellent relationship with the Bangchak Refinery. We first worked at the refinery in 1995, on the successful clean fuels project," said Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited. "This award also reinforces our position as a leading supplier of technology and reformers for hydrogen production, in particular where heavier feedstocks are processed that require pre-reformer technology." Foster Wheeler's Terrace-Wall reformer features a unique firing arrangement within a sloped-wall radiant section, enabling long catalyst and catalyst tube life, and can be designed for natural draft operation, providing additional operational, reliability and cost benefits. Foster Wheeler has supplied over 200 Terrace-Wall steam reformers to the refining and petrochemical industries in more than 40 countries worldwide. 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: Wins Contract from Nigeria's LNG Liquefaction ------------------------------------------------------------- Foster Wheeler Ltd. 's UK and Nigerian subsidiaries, Foster Wheeler Energy Limited and Foster Wheeler Limited, which are both part of its Global Engineering and Construction Group, in a joint venture with Chiyoda Corporation have been awarded a contract by Nigeria LNG Limited for the Project Specification, or front-end engineering design, for the SevenPlus project. The SevenPlus project involves the construction of two new natural gas liquefaction trains, each producing 8.5 million metric tonnes of LNG per annum, at NLNG's Bonny Island LNG complex in Nigeria. On completion, these will be the two largest LNG trains in the world. NLNG is a partnership of the Nigerian National Petroleum Company, Shell, Total and ENI. The terms of the contract were not disclosed, and the award was included in Foster Wheeler's fourth-quarter 2006 bookings. Foster Wheeler and its joint venture partner will produce a project specification package, which will form the basis for an invitation to bid for an engineering, procurement and construction contract. "Foster Wheeler is proud to be leading this joint venture," said Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited. "This award demonstrates NLNG's confidence in the quality and experience of our technical experts and our LNG track record. We are committed to working with NLNG to meet its objectives including safety, quality, cost, schedule and local content." "We welcome Foster Wheeler's leadership in our plans to design and build the world's two largest LNG trains in Nigeria," commented Chinasa Ego-Osuala, expansion co-ordinator, Nigeria LNG Limited. "Foster Wheeler has over 30 years' experience in Nigeria and brings substantial LNG liquefaction expertise from other LNG projects in Australia, the Middle East and the Far East." 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. GENERAL NUTRITION: Moody's Assigns 'B3' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service assigned a B3 corporate family rating and SGL-3 liquidity rating to General Nutrition Centers, Inc. Moody's also rated GNC's proposed secured bank loan at B1, senior notes at Caa1, and senior subordinated notes at Caa2. Proceeds from the new debt, together with preferred and common equity from the new owners Ares Management and Ontario Teachers' Pension Plan, will be used to finance the leveraged buyout of GNC from Apollo Management for total consideration of almost US$1.7 billion. The rating outlook is stable. Ratings/assessments assigned are the following: -- US$710 million senior secured credit facility at B1; -- US$300 million floating-rate seven-year senior notes at Caa1; -- US$125 million fixed-rate eight-year senior subordinated notes at Caa2; -- Corporate family rating at B3; -- Probability-of-default rating at B3; -- Speculative Grade Liquidity rating at SGL-3. As part of this action assigning ratings to the post-LBO iteration of GNC, the corporate family and probability-of- default ratings were transferred to General Nutrition Centers, Inc from GNC Parent Corporation. The ratings on the existing bank loan, senior notes, senior subordinated notes, and holding company notes will be withdrawn upon completion of this transaction. GNC's corporate family rating of B3 balances the company's very weak post-transaction credit metrics and revenue vulnerability to new product introductions against certain qualitative aspects that have low investment grade or high non-investment characteristics. Also weighing down the overall rating with B characteristics is the company's financial policy that is leading to higher leverage compared to before the transaction. The ongoing challenges in matching changes in consumer preferences for VMS products also constrain the ratings. The company's geographic diversification and the relative lack of cash flow seasonality have solidly investment grade scores, while the company's scale and widespread consumer recognition of the GNC name in the intensely competitive segment of vitamin, mineral, and nutritional supplement retailing have Ba scores. In accordance with Moody's hybrid securities methodology, the proposed preferred stock falls in basket C. The outlook reflects Moody's expectation that debt protection measures will improve over the next six quarters. The stable rating outlook also recognizes that the sales and operating profit trends have turned positive over the past six quarters, and that liquidity is adequate. Concerns about liquidity if free cash flow does not exceed break-even, a return to declining store-level operating performance, or another aggressive financial policy action would cause the ratings to be lowered. Debt to EBITDA remaining above 7 times twelve to eighteen months from now, EBIT to interest expense below 1 time, or negative free cash flow would cause ratings to be lowered. Given the sizable contribution to operating profit from franchise royalties, operating weaknesses among franchisees also would negatively impact the ratings. In the near term, Moody's believes that a rating upgrade is unlikely. Ratings could eventually move upward if the company establishes a long-term track record of sales stability and improved margins, the system expands both from new store development and existing store performance, and if the company begins to substantially reduce debt. Debt protection measures that Moody's will focus on include EBIT coverage of interest expense meaningfully greater than 1 time, debt to EBITDA below 6.5 times, and Free Cash Flow to Debt approaching 3%. About General Nutrition Pittsburgh, Pennsylvania-based General Nutrition is a subsidiary of GNC Corp. -- http://www.gnc.com/-- a specialty retailer of health and wellness products, including vitamins, minerals, herbal, and specialty supplements (VMHS), sports nutrition products and diet products. The company sells its products through a worldwide network of more than 5,800 locations operating under the GNC brand name and operates in three business segments: retail, franchise and manufacturing/ wholesale. GNC's Asian operations include those in Indonesia and the Philippines. MCDERMOTT INT'L: No TXU Update Regarding Contracts Amidst Sale -------------------------------------------------------------- McDermott International Inc. announced that it has not received any notices from TXU Corp. pursuant to an announcement that TXU has agreed to be acquired. However, prior to the acquisition news, TXU had given notice to McDermott's subsidiary, The Babcock & Wilcox Company, to suspend performance on five of the eight projects in Texas for the design and supply of supercritical coal-fired boilers and selective catalytic reduction systems. A notice of suspension is a client-initiated directive to wind down and suspend all work on the affected units until a notice of resumption or termination is issued. These suspended projects will remain in McDermott's backlog until TXU provides further notice. For the suspended units, the contract(s) require that TXU compensate Babcock & Wilcox for all work performed to date and for all costs associated with the suspension, storage and resumption. Also, under the terms of the contract, Babcock & Wilcox is permitted to file claims for contract changes in all terms, including price and schedule should work resume. In the event of termination, the contract(s) provide for recovery of costs and a reasonable profit. Babcock & Wilcox is continuing to perform on the remaining unsuspended units. "We read TXU's press release this morning and their comments regarding reducing the number of plants. However, Babcock & Wilcox has not received any official word today from TXU related to either the suspended units or the other three," said Bruce W. Wilkinson, Chairman and Chief Executive Officer of McDermott. "Babcock & Wilcox is a clear industry leader in improving emissions associated with the power generation market, including carbon capture technology," continued Wilkinson. "Regardless of the potential change in TXU's ownership or the status of these projects, we expect TXU will remain a valued customer." About McDermott Int'l Headquartered in Houston Texas, McDermott International, Inc. (NYSE:MDR) -- http://www.mcdermott.com/-- through its subsidiaries, operates as energy services company worldwide, including Indonesia and the United Kingdom. * * * The Troubled Company Reporter - Asia Pacific reported on Oct. 11, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors last week, the rating agency confirmed its B1 Corporate Family Rating for McDermott International Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Multiple Seniority Shelf (Senior Unsecured) (P)B3 (P)B3 LGD6 97% Multiple Seniority Shelf (Subordinate) (P)Caa2 (P)B3 LGD6 97% Multiple Seniority Shelf (Preferred) (P)Caa3 (P)B3 LGD6 97 TELKOM INDONESIA: Plans to Lower Internet Speedy Access Rate ------------------------------------------------------------ PT Telekomunikasi Indonesia Tbk is trying to reduce the rate of Internet broadband access called Speedy by 30% in 2007 and by another 20% to 30% next year, Antara News reports, citing Telkom Director Arwin Rasyid. According to the report, Mr. Rasyid said that the plan is part of efforts to participate in the provision of national Internet Protocol and in the development of local network so that in participating, Internet access rate that is provided by Speedy will be equal to the rates offered by regional operators. The report also notes that Mr. Rasyid said the role of telecommunications in the national implementation of information and communications technology will create effective and efficient IP-based infrastructure through broadband wireline and broadband wireless. Mr. Rasyid said that the company will take part in the development of broadband wireless-3G service program and Palapa Ring consortium project that aim's to improve accessibility in the eastern parts of Indonesia, the report says. 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 and local currency corporate credit ratings of BB+. TELKOM INDONESIA: Gov't Nominates CFO Rinaldi Firmansyah as CEO --------------------------------------------------------------- Indonesia's state enterprises ministry nominated the chief financial officer of PT Telekomunikasi Indonesia Tbk, Rinaldi Firmansyah, as the company's new chief executive, Reuters reports. According to the report, former Telkom CEO Arwin Rasyid, together with some other company directors, tendered their resignation at a shareholders' meeting on Feb. 28. The report notes that speculation about a possible change in the state-run company's leadership has driven Telkom's shares down in recent weeks. Telkom's shares have lost nearly 12% of their value since the start of the year, underperforming the 3.6% decline in the overall market. 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 And local currency corporate credit ratings of BB+. TELKOM INDONESIA: Workers Union Calls for Reshuffle --------------------------------------------------- PT Telekomunikasi Indonesia Tbk's workers union called on the Indonesian Government to replace all of the state-owned telecommunications company's executives at its Shareholder's General Meeting, Antara News reports. According to the report, Telkom Workers Union Founder Dian Rachmawan made the remarks in response to controversies with regard to candidates for Telkom's executive positions that surfaced in the Meeting. The report notes that Telkom's Meeting created controversies as various circles took with them their own individual interests in filling Telkom's executive positions. Ms. Rachmawan said that they want Telkom's executive positions in the top management, including the president director's post, to be occupied by people who truly understand telecommunications business and technology, the report relates. Antara says that Ms. Rachmawan said the government should appoint best candidates who were able to bring stability to Telkom's management. Ms. Rachmawan added that the company's Workers Union had sent a letter to the minister for states enterprises explaining the performance of Telkom in the 2005-2006 period, which has some encouraging aspects as well as discouraging ones, the report points out. Antara recounts that in the 2005-2006 period, the management was able to raise the prices of Telkom's shares at the New York Stock Exchange so that the value of Telkom's market capitalization rose to US$17 billion. Ms. Rachmawan also said that this is not fundamental as it is short-term in nature and prone to changes, the report adds. 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 and local currency corporate credit ratings of BB+. ========= J A P A N ========= BANCO BRADESCO: Fourth Quarter 2006 Results Worse Than 2005 ----------------------------------------------------------- Unibanco Corretora analyst Carlos Macedo told Business News Americas that the fourth quarter 2006 results for Banco Bradesco and Banco Itau Holding Financeira SA were worse than 2005, but in line with expectations. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2007, the 2006 fourth quarter recurring net income of Banco Bradesco was BRL1.620 billion, +0.6% compared to the 2006 third quarter. In the year of 2006, the annualized return on average stockholders' equity stood at 30% (32.1% in 2005), and at 32.3% in the quarter annualized (32.7% in 2006 third quarter). Total Assets reached BRL265.5 billion, +27.2% when compared to December 2005 and +9.2% when compared to September 2006, BRL96.2 billion or 36.2% of which represented by Loans and Leasing. Mr. Macedo told BNamericas, "What propped up Bradesco were the insurance businesses, accounting for 43% of net income in fourth quarter 2006. Insurance keeps growing because the banking business no longer achieves results. The loan portfolio expanded, but not among profitable loans." Banco Bradesco started developing its credit card business in 2005 after it bought Amex operations in Brazil for US$490 million, while the bank's private label accords with retailers like Casas Bahia did not help boost lending in the fourth quarter of 2006, BNamericas says, citing Mr. Macedo. Mr. Macedo told BNamericas that Banco will likely deliver strong results in 2007, with return on equity above 29%. "But it has to deliver better results from its banking business. The insurance sector is going through a positive period, but there is no telling on how abruptly that may end," Mr. Macedo commented to BNamericas. Meanwhile, Banco Itau Holding Financiera SA's results looked good at first. Further analysis revealed the bulk came from treasury operations, BNamericas says, citing Mr. Macedo. BNamericas underscores that Banco Itau's recurring net income in the fourth quarter 2006 increased 14.2% to BRL1.63 billion, from the fourth quarter 2005. "The NPL [non-performing loan] ratio improved a lot, but I wonder if it's going to improve in 2007," Mr. Macedo told BNamericas. About Banco Itau Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA (Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 26, 2007, Fitch Ratings affirmed these issuer default ratings on Bradesco, with a Stable Outlook: -- Long-term foreign currency at 'BB+'; -- Long-term local currency at 'BBB-'; -- Individual rating at 'B/C'; -- Local currency short-term at 'F3'; -- Short-term at 'B'; -- Support rating of '4'; -- National short-term rating 'F1+(bra)'; and -- National long-term rating 'AA+(bra)'. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 27, 2006, Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of Banco Bradesco SA's foreign and local currency counterparty credit rating, however it changed the ratings outlook to positive from stable on both ratings: -- Foreign currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Local currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Brazil national scale rating * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1 BANCO BRADESCO: Regulator Fines Bank BRL8.4MM for Capital Raise --------------------------------------------------------------- Published reports say that the Brazilian securities Comissao de Valores Mobiliarios has fined Banco Bradesco SA BRL8.4 million. for breaching rules governing capital increases in 1998. Banco Bradesco can file an appeal on the regulator's decision through the finance ministry, Business News Americas reports. BNamericas did not provide further details regarding Banco Bradesco's capital increase. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported on Jan. 26, 2007, Fitch Ratings placed these ratings assigned to Banco BMC SA on Rating Watch Positive: -- Local foreign currency long-term Issuer Default Rating 'B-'; -- Foreign currency long-term IDR 'B-'; -- Local currency short-term 'B'; -- Fixed-rate notes issuance maturing 2008 'B-/RR4'; -- Support '5'; -- National Short-Term rating 'F3(bra)'; and -- National long-term rating 'BBB-(bra)'. In addition, Fitch affirmed BMC's: -- Individual rating at 'D/E'; and -- Foreign currency short-term at 'B'. At the same time, Fitch also affirmed these IDRs on Bradesco, with a Stable Outlook: -- Long-term foreign currency at 'BB+'; -- Long-term local currency at 'BBB-'; -- Individual rating at 'B/C'; -- Local currency short-term at 'F3'; -- Short-term at 'B'; -- Support rating of '4'; -- National short-term rating 'F1+(bra)'; and -- National long-term rating 'AA+(bra)'. As reported on Nov. 30, 2006, Moody's Investors Service upgraded these ratings of Banco Bradesco SA: -- long-term foreign currency deposits to Ba3 from B1; and -- long- and short-term global local currency deposit ratings to A1/Prime from A3/Prime-2. Moody's said the ratings outlook is stable. DELPHI CORP: Posts US$5.5 Bil. Loss in 2006; Losses to Continue --------------------------------------------------------------- Delphi Corp. reported that its revenues for the fourth quarter of 2006 totaled US$6.4 billion, down from US$6.8 billion in the same period last year. Non-GM revenue for the quarter was US$3.7 billion, essentially the same as in the fourth quarter of 2005, representing 57% of fourth quarter 2006 revenues. The company's incurred an US$853 million in the fourth quarter of 2006 compared to an US$828 million net loss in the fourth quarter of 2005. Included in the 2006 fourth quarter net loss were US$200 million non-cash impairment charges related to long- lived assets. For the fourth quarter of the prior year, US$589 million of non-cash impairment charges was included and related to long-lived assets, goodwill and intangible assets. The company's fourth quarter net loss was US$853,000,000, compared to Q4 2005 net loss of US$828,000,000. Included in the Q4 2006 net loss were US$200,000,000 non-cash impairment charges related to long-lived assets. Included in the Q4 2005 net loss was US$589,000,000 of non-cash impairment charges related to long-lived assets, goodwill and intangible assets. Delphi reported a net loss of US$5.5 billion for 2006, which includes US$3 billion of charges related to the attrition of more than 20,000 traditional employees through its U.S. hourly special attrition programs. According to Robert Dellinger, Delphi Corp.'s chief financial officer, "Excluding those charges, Delphi's 2006 net loss was approximately the same as the 2005 net loss of US$2.4 billion. With that said, our losses are likely to continue until we completely and successfully address our high U.S. cost structure and complete all aspects of our transformation plan. Delphi's losses in 2006 were concentrated in the U.S. as we continued to see lower volumes, partially reflecting market share losses by GM, and commodity price increases, in addition to the charges associated with implementing our U.S. hourly attrition plans." Revenues in 2006 totaled US$26.4 billion, down from US$26.9 billion in 2005. Non-GM revenue in 2006 reached US$14.8 billion, up 5% from US$14.1 billion in CY 2005, up 4% excluding the effects of foreign exchange rates. For the year, 56% of revenues came from customers other than GM. In 2006, revenues from GM declined US$1.2 billion or 10% year-over-year. Cash flow from operations for the year was US$43 million, down from US$154 million in CY 2005. At year-end 2006, Delphi had US$1.7 billion of cash and cash equivalents and US$1.7 billion of debt capacity under the recently refinanced DIP credit facility. In 2006, Delphi contributed US$243 million to its U.S. pension plans, representing the portion of the pension contribution attributable to services rendered by employees in the plan year ended Sept. 30, 2006. Delphi's U.S. under-funded pension plan status as of Dec. 31, 2006 was US$4.2 billion. Delphi's year-end 2006 OPEB obligation was US$9.1 billion. "Despite a difficult 2006 calendar year with significant losses stemming from the challenges we are experiencing in our U.S. operations, we remain clearly focused on two key elements to ensure Delphi's long term success," said Rodney O'Neal, Delphi Corp. chief executive officer and president. "First is meeting our customers' expectations with respect to innovation, quality, delivery and value. Second is transforming Delphi and emerging from Chapter 11 as a strong, competitive, global company." "With our customers, we continue to execute, as evidenced by our strong operating performance -- a true testament to our employees' dedication to operational excellence and to our customers. As a result, we were awarded a very solid and diverse portfolio of new business bookings. And with our business reorganization, the hourly attrition programs negotiated with several of our labor unions and General Motors Corp. were an important step in our ongoing transformation. We are fully committed to addressing the remaining uncompetitive issues within our U.S. operations, and the challenges associated with completing our transformation and emerging from Chapter 11 business reorganization." A full-text copy of Delphi's Form 10-K report for the fourth quarter and year ended Dec. 31, 2006, filed with the Securities and Exchange Commission is available for free at: http://ResearchArchives.com/t/s?1a7a 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. DELPHI CORP: Talks with IUE-CWA Reaches Impasse ----------------------------------------------- The International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers-Communications Workers of America began intensive meetings with Delphi Corp., the Plan Investors, and General Motors Corp. on Feb. 12, 2007, in an attempt to reach local and national agreements at the auto parts manufacturer. The negotiations, however, have not yielded meaningful results for the Union, Raymond L. Smith of Tribune Chronicle reports. "The company has failed to propose meaningful language to address the long-term concerns of our members," Willie Thorpe, chairman of the IUE-CWA Automotive Conference Board, said in a memo to IUE-CWA members. "They have fallen short on all aspects of the proposed agreement. "We are prepared to resume talks when Delphi, GM, and the investor group indicate their willingness to address the concerns of our workers," Mr. Thorpe continued. Delphi Corp. spokesperson Lindsey Williams, on the other hand, related to Tribune Chronicle that he is unaware of any postponements in Delphi's negotiations with the IUE-CWA. The union negotiations are expect to resume soon, according to Mr. Smith. Delphi and the Plan Investors, including Appaloosa Management LP and Cerberus Capital Management LP, have agreed that the Equity Purchase and Commitment Agreement may be terminated on or before Feb. 28, 2007, if the Debtors have not reached agreements with its labor unions and GM by Jan. 31, 2007. According to IUE-CWA Local 717 Chairman Mike O'Donnell, the Local was not consulted about the deadline. "I do not expect national negotiations to be completed at that time. The company wants wage and benefit cuts, but it is not willing to make any job guarantees nor is it willing to make commitment to any of its communities," Mr. O'Donnell told the newspaper. 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. DELPHI CORP: Amends Equity Purchase Agreement with Investors ------------------------------------------------------------ Delphi Corporation has entered into an amendment to the Equity Purchase and Commitment Agreement dated Jan. 18, 2007, with its Plan Investors -- affiliates of Cerberus Capital Management, L.P., Appaloosa Management L.P., and Harbinger Capital Partners Master Fund I, Ltd., as well as with Merrill Lynch & Co. and UBS Securities LLC. The EPCA amendment granted an extension of the date by which the company, the affiliate of Cerberus or the affiliate of Appaloosa have the right to terminate the agreement on account of not having completed tentative labor agreements with Delphi's principal U.S. labor unions and a consensual settlement of legacy issues with General Motors Corporation. The amendment provides that the day-to-day right to terminate will continue beyond Feb. 28, 2007 through a future date to be established pursuant to a 14-day notice mechanism in the amendment. Delphi, the affiliate of Cerberus and the affiliate of Appaloosa agreed not to exercise such termination right before March 15, 2007. The amendment also extends the deadline to make certain regulatory filings under the federal antitrust laws in connection with the framework transaction. A full-text copy of the EPCA Amendment is available for free at http://ResearchArchives.com/t/s?1a90 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. DELPHI CORP: Court Okays Ivins Phillips as Special Tax Counsel -------------------------------------------------------------- The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York authorized Delphi Corporation and its debtor-affiliates to employ Ivins, Phillips & Barker as their special pension benefits tax counsel, nunc pro tunc to Nov. 1, 2006. Since November 2005, the Debtors employed IPB as an ordinary course professional pursuant to the Ordinary Course Professionals Order. It is apparent, however, that IPB will exceed the fee cap established in the OCP Order, John D. Sheehan, vice president and chief restructuring officer of Delphi Corporation, informs the Court. Pursuant to the OCP Order, if IPB is to continue rendering the services that it had been engaged by the Debtors to perform, the Debtors must formally retain IPB, Mr. Sheehan noted. Mr. Sheehan related that IPB is especially attuned to the unique employee benefits issues that arise in the Debtors' industry. Accordingly, the Debtors believed that IPB is well qualified to serve as special pension benefits tax counsel in their Chapter 11 cases in an efficient and effective manner. The Debtors believed that the continued employment of IPB would enhance, and will not duplicate, the employment of any of the other professionals they have retained. As the Debtors' tax counsel, IBP will render legal advice and services to: -- the Debtors' employment, compensation, and employment benefit plans and arrangements; -- the Debtors' corporate, employee benefits, and employment tax matters; and -- the Debtors' representation before federal agencies, Congress and the courts. The Debtors will pay IPB based on the firm's hourly rates: Category Hourly Rate -------- ----------- Lawyers US$725 - US$200 Paralegals & other paraprofessionals US$200 William L. Sollee, Jr., Esq., a shareholder of Ivins Philipps, assured the Court that the firm and its attorneys are "disinterested persons" as defined in Section 101(14) of the Bankruptcy Code. 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. FUJI HEAVY: Sets 683,000-Unit Sales Target in New Business Plan --------------------------------------------------------------- Fuji Heavy Industries Ltd. unveiled a new four-year business plan, setting a target of achieving global auto sales of 683,000 units and an operating profit ratio of 5% in business 2010 by enhancing its foothold in the U.S. market, The Japan Times says. According to The Times, Fuji Heavy President Ikuo Mori said that the company will increase the number of its U.S. dealers to 625 in 2010 from 601 in 2006 because the company believes that its future rests on the success of its U.S. market. The report states that Fuji Heavy will aim for a group operating profit of JPY80 billion in its 2010 business year, an increase from its forecast of JPY50 billion in 2006. The Times adds that Fuji Heavy will strengthen its ties with Toyota Motor Corp., its biggest shareholder with an 8.7% stake, in the areas of development and production to meet its business goals. "We only have a market share of 1 percent on a global basis. But we can manufacture unique products because we are small. We will attach greater importance to quality than to quantity," The Times quotes Mr. Mori. The report further says that Fuji Heavy is expecting to sell 575,000 Subaru cars worldwide and achieve 3.3% in the ratio of operating profit to sales in the current business year ending March 31, and that the company wants to expand its auto sales in the U.S. market to 236,000 units, up from projected sales of 179,000 units in business 2006. About Fuji Heavy Industries Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. -- http://www.fhi.co.jp/-- is a manufacturing company engaged in the production, sale, repair and leasing of automobile and transportation-related products. Standard & Poor's Ratings Services lowered its long-term credit rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based on diminished prospects for a recovery in profitability and cash flow over the near term along with intensifying competition in the global auto industry. HANKYU HANSHIN: May Sell HDSL Stocks to Hankyu Dep't. Stores ------------------------------------------------------------ Hankyu Hanshin Holdings Inc. will propose selling the stocks of affiliate Hanshin Department Store Ltd. to Hankyu Department Stores Inc. as an optional integration method for the two in the holding firm's midterm management plan, The Yomiuri Shimbun reports. The report states that Hankyu Hanshin is believed to be discussing several plans for the integration, including setting up a holding firm to control the two department stores and making Hanshin Department Store a subsidiary of Hankyu Department Stores. Sources say that the creation of a holding firm is a favorable option if the morale of the employees of the two department stores is to be considered, the report adds. The report states that the integration will be made as early as Oct. 1, 2007. The Shimbun states that the sale price of Hanshin Department Store's stocks will be negotiated based on a third-party asset evaluation to satisfy stockholders of Hankyu Hanshin Holdings and Hankyu Department Stores. The Shimbun explains that Hanshin Department Store is a wholly owned subsidiary of Hanshin Electric Railway Co., which is under Hankyu Hanshin Holdings, but Hanshin Department Store is not under the control of the holding firm because Hankyu Department Stores and Hankyu Hanshin cross-hold only a small percentage of their stocks. The Troubled Company Reporter - Asia Pacific reported on Oct. 6, 2006, that Hankyu Holdings Inc. and Hanshin Electric Railway Co. merged into Hankyu Hanshin Holdings Inc. The TCR-AP said that Hankyu Hanshin Holdings is expected to announce a mid-term management plan through March 2010 in March 2007. About Hankyu Hanshin Holdings Headquartered in Osaka, Hankyu Hanshin Holdings,Inc., formerly Hankyu Holdings, Inc. -- http://www.hankyu.co.jp/-- is a holding company with seven business segments. The City Transportation segment is involved in the railway, bus, taxi, automobile maintenance, car rental and vehicle manufacturing businesses. The Real Estate segment leases, purchases, sells and manages real estates and operates investment assets. Travel and International Transportation segment is involved in traveling and cargo delivery services. The Hotel segment is engaged in the hotel business, while the Entertainment and Communication segment is involved in the opera business, theater operations, advertising agency services and the publishing business. The Retail segment is engaged in the retail, as well as food and drink businesses. Finance services, information, human resource and accounting agency services, golf course management, movie entertainment, construction and broadcasting are operations under the "Others" segment. * * * The Troubled Company Reporter - Asia Pacific reported on June 23, 2006, that Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit and 'BB+' senior unsecured debt ratings on Hankyu Holdings following completion of the company's takeover bid for Hanshin Electric Railway Co. Ltd. and clarification of Hankyu's financial burden from the takeover. At the same time, Standard & Poor's removed the ratings from CreditWatch, where they were placed on May 1, 2006, following Hankyu's official announcement of merger discussions. The outlook on the long-term credit rating is stable. The TCR-AP reported on June 22, 2006, that Fitch Ratings Agency affirmed the BB+ long-term foreign and local currency Issuer Default Rating of Hankyu Holdings as well as its BB+ senior guaranteed debt rating, on June 21. MACDERMID INC: S&P Junks Rating on Proposed US$465 Million Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to MacDermid Inc.'s proposed US$560 million senior secured credit facilities, based on preliminary terms and conditions. The 'B+' bank loan rating and the '1' recovery rating indicate the rating agency's expectation that lenders will experience full (100%) recovery of principal in a payment default scenario. Standard & Poor's also assigned its 'CCC+' rating to the proposed US$250 million senior unsecured notes due in 2014 and to the proposed US$215 million senior subordinated notes due 2017. Both note issues are rated two notches below the expected 'B' corporate credit rating to reflect the substantial amount of priority debt in the capital structure. Standard & Poor's said that its 'BB+' corporate credit rating and other existing ratings on MacDermid remain on CreditWatch with negative implications, where they were placed on Sept. 6, 2006. The ratings were placed on CreditWatch after the disclosure that MacDermid received a proposal letter from the investor group consisting of Daniel H. Leever, MacDermid's chairman and chief executive officer, Court Square Capital Partners, and Western Presidio to purchase all of its outstanding common stock at US$32.50 per share. Subsequently, the merger agreement was signed on Dec. 15, 2006, with a purchase price of US$35.00 per share. The investor group will use proceeds from the new bank credit facilities, the senior unsecured notes, and the senior subordinated notes to finance the acquisition of MacDermid in a transaction valued at about US$1.3 billion. Upon successful completion of the acquisition and proposed financing, Standard & Poor's will resolve the CreditWatch listing. "We will lower the corporate credit rating on MacDermid to 'B' from 'BB+' to reflect the substantial increase in debt and subsequent deterioration of the financial profile," said Standard & Poor's credit analyst David Bird. "We also expect to withdraw all of the ratings on the existing debt instruments upon closing of the proposed refinancing." After the completion of the pending transaction, the ratings on MacDermid will reflect its satisfactory business position, offset by a highly leveraged financial profile. About MacDermid Inc. MacDermid Inc. -- http://www.macdermid.com-- is manufacturer of a broad line of chemicals and related equipment for a range of applications, including metal and plastic finishing, electronics, graphic arts and printing, and offshore drilling. The company maintains its headquarters in Denver, Colorado, but operates facilities worldwide, including China, Germany, Italy, and Japan. Revenues for the twelve months ended June 30, 2006, were US$797 million. NIKKO CORDIAL: Stock Dives on Talks of TSE's Final Decision ----------------------------------------------------------- Nikko Cordial Corporation's stock plunged nearly 15% on Wednesday in reaction to a media report that said the Tokyo Stock Exchange was already in the final stages of a decision to delist the brokerage in April, the Associated Press reports. AP, citing Japanese business daily The Nikkei, relates that the TSE would announce a decision "soon" on delisting Nikko Cordial, mentioning the systematic involvement of the firm's executives in an accounting manipulation scandal. The Japan Times, however, points out that the TSE denied having made a decision. According to the report, Nikko Cordial's stock dived despite the TSE's clarification, taking its daily maximum allowable loss of JPY200 to end at JPY1,147. "We are proceeding with screening so that we can reach a conclusion on whether to delist Nikko Cordial around mid-March. At this moment, we have no direction affecting the conclusion," The Times quotes TSE President Taizo Nishimuro. AP relates that Nikko Cordial issued a statement saying all customer services were operating normally, and that the company was also mulling various strategies including tie-ups and capital alliances. The report recounts that Nikko Cordial's shares were placed on the exchange's supervisory post for review in December after the company announced that it would correct its net profit for the fiscal years ended March 2005 and March 2006 as inappropriate booking of proceeds from derivatives trading inflated earnings. The Times adds that if the TSE formally decides to proceed with Nikko Cordial's delisting, the brokerage's stock will be transferred to the liquidation post the next day, where it will trade normally for a month until it is delisted. Yet, the report explains, even with the delisting, Nikko Cordial customers' assets, including stocks and investment trusts, are secured under the Securities and Exchange Law. Citing sources, The Times report says that the TSE thinks Nikko Cordial should be disqualified from trading because former managers maliciously padded group profits and because of the scandal's impact on the stock market. As reported in the Troubled Company Reporter - Asia Pacific reported on Feb. 27, Nikko Cordial has decided to file a legal action against and seek a total of JPY3 billion in damages from three former senior executives -- Nikko Cordial President Junichi Arimura; former chairman of Nikko Principal Investments Japan Ltd., Hirofumi Hirano; and former executive managing director of Nikko Cordial Securities Inc., Hajime Yamamoto -- for their involvement in the accounting scandal surrounding the company. In addition, The Times says that Nikko Cordial is losing customers to rival brokerages, and alliance talks with interested financial institutions are expected to accelerate toward the delisting decision deadline. A separate TCR-AP report stated that Citigroup Inc. may increase its stake in Nikko Cordial Corp. from 4.9% to 33.4% or JPY330 million (US$2.73 million) to shore up the Japanese brokerage. Mizuho Financial Group may also seek an alliance with Citigroup in connection with a takeover of Nikko Cordial. About Nikko Cordial Headquartered in Tokyo, Japan, Nikko Cordial Corporation -- http://www.nikko.jp/-- is mainly engaged in the provision of financial services in the securities-related field. The Company operates in four business segments. The Retail segment provides consulting services for financial products management. The Asset Management segment provides asset management services for individual, corporate and foreign investors. The Investment Banking segment provides corporate finance and capital market services, mergers and acquisitions, advisory services, trading services for institutional investors and research services. The Merchant Banking segment is involved in the investment of corporate issued stocks, bonds, securities-related financial products and other financial products. Nikko Cordial has 62 consolidated subsidiaries. It has oversea operations in the United States, the United Kingdom, Luxemburg and Singapore. The company has a global network. The Troubled Company Reporter - Asia Pacific reported on Feb. 13, 2007, that Fitch Ratings has downgraded Nikko Cordial Corporation's Long- term foreign and local currency Issuer Default ratings to 'BBB-' from 'BBB', the Short-term foreign and local currency IDRs to 'F3' from 'F2', and the Individual rating to 'C/D' from 'C'. The TCR-AP reported on Dec. 22, 2006, that Fitch placed its ratings on Nikko Cordial Corp. and Nikko Cordial Securities Inc. on Rating Watch Negative following the decision announced on Dec. 18 by the Tokyo Stock Exchange to place the shares of NCC on its official watchlist pending the full investigation into reported accounting breaches by the company. As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities and Exchange Surveillance Commission began investigating Nikko Cordial for falsifying its annual financial statements for the business year ended March 30, 2005, declaring JPY14 billion in false profits, and using them to procure money from the market. NORTHWEST AIRLINES: Court Approves Mesaba Aviation Acquisition -------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York authorized Northwest Airlines Corp. and its debtor- affiliates to enter into a stock purchase and reorganization agreement with Mesaba Aviation, Inc. Subject to (i) a plan of reorganization becoming effective in Mesaba's bankruptcy case that implements the terms of the Agreement, and (ii) consummation of the Closing of the transactions contemplated by the Agreement, Judge Gropper granted Mesaba a US$145,000,000 allowed general unsecured claim plus interest, in Northwest's bankruptcy case. The Mesaba Allowed Claim is not subject to reconsideration pursuant to Rule 3008 of the Federal Rules of Bankruptcy Procedure or Section 502(j) of the Bankruptcy Code. The Air Line Pilots Association, International, sought to reserve its rights to pursue a grievance under its agreement with Northwest in relation to actions that may be taken by Northwest pursuant to or following its transaction with Mesaba. ALPA pointed out that after the Mesaba Agreements were reached, Northwest announced that 36 CRJ-900 aircraft it has ordered would be placed in service at Mesaba. The aircraft can be configured to carry between 51 and 76 passengers. ALPA noted that its new collective bargaining agreement with Northwest provides that if the Debtors establish a feeder carrier which is an affiliate and which operates 51-76 seat aircraft, they must comply with certain provisions set out in the CBA. ALPA is the exclusive bargaining representative of Northwest Airlines pilots. ALPA has filed a grievance challenging Northwest's actions under the CBA. Under the CBA, a "Feeder Carrier" is one that "conducts operations pursuant to a capacity purchase, fee for scheduled block hours, fee for departure or similar basis for the Company and is engaged in code sharing with the Company [.]" ALPA argued that the Debtors' announced intent to place CRJ-900 aircraft at Mesaba after the transactions are approved and consummated implicate the provisions of the CBA. However, Northwest will have established a Feeder Carrier affiliate without complying with the CBA. Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP, in Washington D.C., representing Northwest, pointed to the Court that the ALPA's response does not constitute an objection and does not set forth any basis for denying the request. "ALPA brings to the Court's attention the fact that Northwest and ALPA have different interpretations of the collective bargaining agreement extant between Northwest and its pilots, which agreement provides a mechanism for resolving such a dispute," Mr. Ellenberg said. Judge Gropper said the Court will retain jurisdiction with respect to any matters, claims, rights or disputes arising from or related to the implementation of the Court order. About Mesaba Aviation Headquartered in Eagan, Minn., Mesaba Aviation Inc., dba Mesaba Airlines -- http://www.mesaba.com/-- operates as a Northwest Airlink affiliate under code-sharing agreements with Northwest Airlines. The Company filed for chapter 11 protection on Oct. 13, 2005 (Bankr. D. Minn. Case No. 05-39258). Michael L.Meyer, Esq., at Ravich Meyer Kirkman McGrath & Nauman PA, represents the Debtor in its restructuring efforts. Craig D. Hansen, Esq., at Squire Sanders & Dempsey, L.L.P., represents the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed total assets of US$108,540,000 and total debts of US$87,000,000. The Debtor filed its Plan of Reorganization on Jan. 22, 2007. It filed its Disclosure Statement two days later on Jan. 24, 2007. The hearing to consider the adequacy of the Debtor's Disclosure Statement has been set for Feb. 27, 2007. 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: SESC Won't File Charges for Inaccurate Reports -------------------------------------------------------------- Japan's Securities and Exchange Surveillance Commission has decided not to file a criminal complaint against Sanyo Electric Co. amid allegations that the company dressed up its financial statements, Japan Today reports, citing sources familiar with the matter. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 26, 2007, the SESC had commenced an investigation on whether Sanyo Electric failed to fully disclose its losses. The TCR-AP report said that Sanyo Electric had allegedly 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 it may have falsely reported a profit when it was in the red. Moreover, Japan Today says that the SESC also decided to refrain from recommending that the Financial Services Agency order Sanyo Electric to pay fines in connection with the alleged accounting fraud. Citing a Kyodo News report, Bloomberg News adds that the FSA will not press charges because of Sanyo Electric's intention to provide corrected earnings reports to the government. Bloomberg states that Sanyo Electric stock gained 9.2% to JPY189 on the Osaka Securities Exchange on Thursday after the media reported the SESC's decision not to seek penalties against the company. The rise in stock price, according to the report, was Sanyo Electric's biggest advance in 10 days. 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. US AIRWAYS: America West Merger Plans Spur ALPA to File Lawsuit --------------------------------------------------------------- The US Airways and America West units of the Air Line Pilots Association, International, filed a lawsuit with the United States District Court of Philadelphia demanding that US Airways halt plans that attempt to illegally merge the airlines until a single contract is reached between both pilot groups, as is required under the Railway Labor Act and an agreement reached by the parties in September 2005. US Airways plans to eliminate America West's HP designator code from reservation systems, which means that all flights will be listed as a US Airways flight. The code elimination is in violation of the Transition Agreement negotiated with the two pilot groups that promised that the two airlines would remain separated until a single pilot collective bargaining agreement is reached. The parties have been negotiating for a year and a half, but US Airways management is continuing to pass bankruptcy-era proposals that ignore the investment that the pilots made in order to keep their airline viable after 9/11. Until a single agreement is reached, the company must operate both airlines separately. Instead, management apparently is trying to reap the benefits of the merger without fulfilling their promise to first get a single, fair pilot contract. ALPA contends that US Airways is violating their obligation to negotiate a single agreement and asks that the status quo be maintained until then. "US Airways wants desperately for our pilots to look like, dress like, and act like they work for a merged airline. However, the only road to a real merged airline is through a single contract," US Airways Master Executive Council Chairman Captain Jack Stephan said. "Our pilot group will not tolerate management attaining synergies they haven't paid for or negotiated. Like our passengers, we are frustrated dealing with management's empty promises and their reluctance to properly merge our airline." "US Airways continues to drag the merger process on and on, to the detriment of our passengers and our employees," America West Master Executive Council Chairman Captain John McIlvenna said. "Instead of focusing on productive negotiations, management is trying to grab operational efficiencies they can't legally have. Until the America West and US Airways pilots have a fair, single contract, we are far from being one airline." Founded in 1931, Air Line Pilots Association, International -- http://www.alpa.org/represents 60,000 pilots at 39 airlines in the U.S. and Canada. About US Airways Headquartered in Arlington, Virginia, US Airways' primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. Under a chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. * * * As reported in the Troubled Company Reporter on Jan. 11, 2007, Standard & Poor's Ratings Services stated that its ratings on US Airways Group, including the 'B-' corporate credit ratings on US Airways Group and its major operating subsidiaries America West Holdings Corp., America West Airlines Inc., and US Airways Inc., remain on CreditWatch with developing implications, where they were initially placed on Nov. 15, 2006. * Japanese Breweries Need Brand Rationalization, Fitch Says ----------------------------------------------------------- Fitch Ratings commented that the Japanese brewing sector needs to evolve if it wants to improve its currently sub-par profitability. The agency added that not only does the industry need to reduce the number of players, it has to also rationalize its brand offerings. "The Steel Partners' bid for Sapporo may trigger an evolution of the industry structure," said Yuri Shinoda, associate director in Fitch's Corporate team. "But if the existing brands remain after a merger, the potential synergies are likely to be limited," she added. Since Sapporo's announcement on Feb. 15, 2007, that they had received a 66.6% share purchase proposal from Steel Partners Japan Strategic Fund (Offshore), L.P., there have been several media reports referring to the possibility of a consolidation in the sector. A similar plan by Steel Partners to acquire Myojo Foods Co. was scuttled last year by a larger competitor, Nissin Food Products Co., which made a more attractive offer. Although the main parties, Sapporo, Asahi Breweries, Ltd. and Kirin Brewery Company Ltd. have until now denied such discussions were underway, there is increasing pressure for the industry structure to evolve as its profitability is well below other mature markets in Europe or the U.S. EBITDA margins of Asahi's and Kirin's domestic alcoholic beverage operations are around 11% to 12%; excluding liquor tax, they are assumed to be around 20%. These figures are significantly lower than, for example, those of the Anheuser-Busch Companies Inc., are around 30%, with market share of the U.S. beer market at about 50%. The Japanese beer market is highly competitive, despite virtual oligopoly, where the two largest companies, Asahi and Kirin, command more than 75% of the market. The marginal gap between Asahi and Kirin in their market share has generated intense competition. Due to the declining population and the heightened health concerns in Japan, the domestic beer market has continued to shrink, though marginally, further stiffening competition in the industry. Japanese brewers' profit margins are generally lower than those of its global peers. One of the main factors of the lower margins is the race to develop new products/brands; this has resulted in too many products flooding the market. This has led to higher advertising and promotional expenses, dilution in brand value and shorter product cycles, in order to whet Japanese consumers' appetites. The building and scrapping of new brands at such short intervals makes it difficult to reduce the production costs as well as promotion or marketing costs. "Reducing the number of players in itself would not address any of these concerns. Each brewing company has individually made efforts to cut costs, and these efforts will continue regardless of the consolidation," said Ms. Shinoda. "Distribution costs and procurement may contribute, to some extent, to the improvement and efficiency of the merged entity. However, it is highly improbable that they would be sufficient to compensate the acquisition costs raised by possible takeover bids," she added. "Accordingly, the synergistic effects should be minimal unless they eliminate a wide range of brands, which may initially cause a decrease in the sales of the merged entities. If consolidation occurs in form of the capital alliance without Sapporo being a wholly owned subsidiary of its acquiring company, due to a competition law, any positive effects of such an alliance would be uncertain. This would create a deadlock, making any rationalisation of the industry structure even more difficult to achieve," noted Ms. Shinoda. The intervention of an overseas brewer is highly unlikely. The already mature and intensively competitive Japanese brewing industry does not seem attractive to the main international brewers, who, for the most part, have to fight against a long- term negative trend in their own domestic markets. As a result, they tend to focus their investment efforts on markets with strong long-term growth potential, such as Russia, China, India or Latin America. In the medium and long term, for the Japanese brewers, operational and geographical diversification will be key to their growth. Given that most diversified businesses of domestic brewers are not generating the comparable level of cash flows with significant synergy with their brewing operation, the companies have to be selective in their investments. In 2006, domestic beer-like beverage shipment volumes declined by 0.7%. The sector's top-line is likely to remain under pressure in 2007. All three brewers forecast that the market will shrink by around 1% for 2007. However, their sales estimates are strong; Asahi foresees a 5.7% increase in its total sales volume, Kirin sees a 4.8% increase and Sapporo sees a 7.0% increase. Marketing and promotion costs are expected to increase across the industry in 2007 in accordance with a strong sales estimate. If any of the brewers fall considerably short of its sales target, it will suffer squeezed margins. Despite low profitability, Asahi and Kirin's domestic brewing businesses are currently strong cash generators. For Sapporo's domestic beer operations however, cash generation is limited due to lower profitability and this raises questions regarding the viability of this business on a stand-alone basis. Taking an initiative to reduce the number of brands/products and focus on a select few strong brands makes more sense in improving profitability rather than merely reducing the number of players. * Outlook Generally Stable for Japan Oil Industry, Moody's Says --------------------------------------------------------------- The outlook is in general stable condition for Moody's Investors Service's universe of Japan's oil industry -- Nippon Oil Corporation (A3), TonenGeneral Sekiyu K.K. (Baa1), Cosmo Oil Co., Ltd. (Ba1) and Nippon Mining Holdings, Inc. (Ba2) -- says the rating agency in a new report. However, management efforts to reduce debts have benefited the capital structures of Nippon Mining Holdings and Cosmo Oil in recent years, and Moody's therefore sees a possibility of positive rating pressures for these issuers. The report, "Japanese Oil Industry Outlook for 2007," comments that although the refining and marketing companies' operating performances remain vulnerable to cyclical Japanese economic downturns, supply and demand and crude oil costs, they have adopted various cost-cutting measures to lower their breakeven points. In addition, all Japanese oil companies have successfully diversified into non-R&M businesses. "We view this diversification positively, as the rated companies have thereby increased the resistance of their operating performances to market downturns of refined products," says Junichi Yamaki, Moody's Senior Vice President and author of the report. In addition, Japanese oil companies have raised oil product exports in response to growing demand in Asia. With Japan's long-term deflation, a weakening of the yen and ongoing efforts to reduce costs, domestic petroleum product prices are competitive with those in other parts of Asia. Moody's expects that an export volume increase for refined products will be moderate, but will help raise the operating rates of Japanese refineries. The report further states that while the capital structures of the rated Japanese oil companies generally remain weak compared to global peers, in line with management efforts to reduce debts they have been showing modest improvement However, the report also notes that the oil industry in Japan has been facing two structural problems. First, price competition is hurting profitability. Second, rises in crude oil prices are decreasing demand -- encouraging the industrial sector to convert from oil to other energy sources and shrinking the gasoline market as drivers move to use less gasoline and use more energy-efficient vehicles. "Although Japan's economy and oil industry are much more resilient to high oil prices than they were during past oil crises, the industry needs to adjust itself to a new environment: high crude costs and decreased domestic demand," describes Moody's Yamaki. While crude oil prices fell back to $50 per barrel in January 2007 from their 2006 record summer highs, consumers have retained a sense of energy conservation, and the trend toward less consumption is likely to continue, causing earnings pressure for the oil companies, Moody's report comments. If oil prices remain high, Moody's believes demand for oil products in Japan will continue to decline due to energy source substitution in the industrial sector and energy saving sentiment nationwide. As a result, the industry will have excess production capacity. Disposition of this will eventually be necessary and would benefit the industry, in Moody's view. About Nippon Holdings Ltd Headqartered in Tokyo, Nippon Mining Holdings Ltd.-- http://www.shinnikko-hd.co.jp/-- is a Japan-based holding company mainly engaged in the oil, metals and electronics materials business. The Company operates in five business segments. The Oil segment develops, drills, and manufactures energy resources, such as gasoline, petroleum and natural gas. The segment is also involved in the petrochemical and oil- related business. The Resources and Metal segment develops and drills non-iron metallic resources, as well as manufactures and sells gold, silver, bronze, zinc and others. This segment also provides industrial waste services for non-iron metallic products, as well as transportation services related to its metals business. The Electronic Materials segment manufactures and sells copper foils, thin-film material and others. The Metal Processing segment offers copper and brass products and other metal processing products. The Others segment is involved in the information processing, funding and other business-related work. ========= K O R E A ========= JEONBUK BANK: Posts Highest BIS Ratio Among Regional Banks ---------------------------------------------------------- Jeonbuk Bank posted a BIS capital adequacy ratio of 12.22% at the end of September 2006, overtaking Jeju Bank as the regional bank with the highest BIS ratio. The September 2006 ratio compares to the 11.54% the bank chalked up at the end of June 2006, the second lowest among all regional banks for that period. A Troubled Company Reporter - Asia Pacific report on Sept. 1, 2006, explained 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. The FSS release contains the following information on regional banks' BIS Capital Ratio (in percent): June Sept. 2003 2004 2005 2006 2006 ------ ------ ------ ------ ------ Daegu 10.58 10.66 11.33 11.60 11.73 Busan 11.66 10.84 12.25 11.61 11.14 Kwangju 10.72 11.81 11.60 11.89 11.55 Jeju 10.96 10.91 11.71 12.22 11.70 Jeonbuk 10.79 10.72 11.53 11.54 12.22 Kyongnam 11.69 11.34 10.59 11.42 11.35 Regional Banks 11.13 11.02 11.52 11.63 11.49 Jeonju-si, Jeollabuk-do, Korea-based Jeonbuk Bank -- http://www.jbbank.co.kr/-- provides commercial and retail banking services mainly to the Jeonbuk province in South Korea. The Bank's services include deposits, loans, credit cards, foreign exchange, trust accounts, corporate loans, telebanking, and Internet banking. Moody's Investors Service gave Jeonbuk Bank a D- bank financial strength rating effective on Dec. 8, 2003. JEONBUK BANK: Posts Lower SBL Ratio at 0.84% in End-2006 -------------------------------------------------------- Jeonbuk Bank posted an SBL -- Substandard Bank Loan -- ratio of 0.84% on total loans of KRW3.50 trillion at the end of 2006, according to a Financial Supervisory Service press release. The end of 2006, the bank's SBL ratio is a 34.88% decrease from the SBL ratio of 1.29% at the end of 2005. Jeonju-si, Jeollabuk-do, Korea-based Jeonbuk Bank -- http://www.jbbank.co.kr-- provides commercial and retail banking services mainly to the Jeonbuk province in South Korea. The Bank's services include deposits, loans, credit cards, foreign exchange, trust accounts, corporate loans, telebanking, and Internet banking. Moody's Investors Service gave Jeonbuk Bank a D- bank financial strength rating effective on Dec. 8, 2003. KOREAN DEV'T BANK: Unveils Executive Management Changes ------------------------------------------------------- Korea Development Bank has named In Sung Chung and Moon Hei Huh as its new executive directors, the bank said in a press release. Mr. In Sung, former director of Financial Management Division, is now Executive Director of Consulting Business Division, succeeding In-Chul Kim. Mr. Moon, former General Manager of Planning Department, is now Executive Director of Regional Banking Division, succeeding Young-Kee Kim. Other changes in the company's executive management are: * Yeon Hee Lee, former General Manager of Corporate Restructuring Department, was promoted to Director of Risk Management Division, succeeding Mr. Sang Woon Shim. * You Hun Kim, former General Manager of International Finance Department, was promoted to Director of Finance Division (previously Financial Management Division), succeeding In Sung Chung. * Young Chan Kim, former Executive Director of Corporate Banking Division, succeeded Ho In as Executive Director of Planning & Admin. Division. * Young-Kee Kim, former Executive Director of Regional Banking Division, succeeded Young Chan Kim as Executive Director of Corporate Banking Division. * In Sup Shim, former Director of KDB Technology Evaluation Institute, succeeded Hee Dall Lee as Director of IT Division. * Sang Woon Shim, former Director of Risk Management Division, succeeded Byung Soo Kim as Director of Trust Business Division. The official term for the new officials commences on Feb. 5, 2007. In addition, Investment Banking Division has been transformed and re-named as Public Banking & Investment Division. Likewise, International Banking Division has is now known as Global Banking Division. Korea Development Bank -- http://www.kdb.co.kr/-- is South Korea's long-term funds provider to major industrial projects. The company is wholly owned by the Korean Government. KDB also offers short and long-term loans, investments, guarantees and trusts to international finance. Its major funding sources are Industrial Finance Bonds, client deposits, special-purpose funds and foreign-currency funds. Moody's Investors Service gave KDB a 'D-' Bank Financial Strength Rating effective on January 24, 2006. KOREA EXPRESS: Earmarks 9,914 New Shares for Seoul Guarantee ------------------------------------------------------------ The Korea Express Co., Ltd., will sell 9,914 new common shares to Seoul Guarantee Insurance Company at the price of KRW25,000 per share, effective March 15, 2007, Reuters Key Development reports. The aggregate value of the sale is KRW247.85 million. 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: Irish Triumph II Buys 24.06% Stake ------------------------------------------------- Triumph II Investments (Ireland) Limited has acquired 552,000 shares of The Korea Express Co., Ltd., from December 6, 2006, to January 1, 2007, giving Triump II a 24.01% holding in Korea Express, Reuters Key Development reports. The aggregate value of the sale is KRW247.85 million. 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 MUTUAL: Declares Dividends After 3% Rise in Interim Profit ---------------------------------------------------------------- Korea Mutual Savings Bank has declared an interim cash dividend of KRW250 per share of common stock, payable on January 30, 2007, to shareholders of record as of December 31, 2006, Reuters Key Development reports. The total cash dividend amount is approximately KRW1.25 billion. The bank posted a net income of KRW23.60 billion for the six months ending December 31, 2006, a 2.99% increase from the year before net income of KRW22.91, Bloomberg News relates. For the period in review, the bank reported interest income of KRW42.88 billion, 14.15% higher than the previous corresponding period, data obtained from Bloomberg shows. The report adds that the bank lowered its provisions for loan losses by 19.75% to KRW29.17 billion for the six months to December 31, 2006 from KRW36.35 billion a year earlier. The lower provisions paved the way for a net interest income after provisions of KRW13.71 billion, more than tenfold higher than the year ago value. Headquartered in Seoul, Korea, Korea Mutual Savings Bank -- http://www.ksbank.co.kr-- offers its services under two segments: deposits and loans. Its deposits segment provides ordinary savings, salary, current, fixed, social security direct and labor deposits. Its loans segment offers discounted bills, installments, contract loans, ordinary loans, passbook loans, secured loans and other related services. Korea Ratings gave Korea Mutual's Subordinated Unsecured Debt a non-investment grade 'BB+' rating effective on May 10, 2004. KOOKMIN BANK: Grants Stock Options to Key Management People ----------------------------------------------------------- Kookmin Bank's board of directors has resolved to grant stock options to some of its senior executive vice presidents, executive vice presidents and heads of regional head offices, the company said in a 6-K filing with the Securities and Exchange Commission. The stock grant is to be approved during the company's general meeting of stockholders on March 23, 2007. The purpose of these stock option grants is to derive better performance by relating performance and compensation, in order to elevate shareholder value. 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 the bank carries Moody's bank financial strength rating of D+. KOOKMIN BANK: Sets AGM on March ------------------------------- Kookmin Bank's board of directors has scheduled the company's general meeting of shareholders for the fiscal year 2006 on March 23, 2007, at 10:00 a.m. at the 4th floor Auditorium, Kookmin Bank, 36-3 Yeouido-dong, Yeongdeungpo-gu, in Seoul, Korea. The meeting's agenda are: 1. approval of non-consolidated financial statements (balance sheet, income statement and statement of appropriation of retained earnings) for the fiscal year 2006; 2. appointment of directors; 3. appointment of candidates for the members of the Audit Committee, who are non-executive directors; 4. approval of previously granted stock options, and; 5. grant of stock options. The shareholders may exercise their voting rights without attending the meeting in person by submitting voting cards via mail. 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 the bank carries Moody's bank financial strength rating of D+. KYONGNAM BANK: Records Lowest SBL Ratio Among Regional Banks ------------------------------------------------------------ Data from the Financial Supervisory Service shows that Kyongnam Bank, along with Daegu Bank, has the lowest SBL -- Substandard Bank Loan -- 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 this 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 Kyongnam Bank -- http://www.kyongnambank.co.kr/-- has served as a regional financial center of South Gyeongsang Province from its stronghold bases in Masan, Changwon and Ulsan, the three major industrial centers in Korea. Fitch Ratings gave Kyongnam Bank an individual rating of 'C' effective April 25, 2006. KYONGNAM BANK: Gets Second Lowest BIS Ratio Among Regional Banks ---------------------------------------------------------------- Kyongnam Bank posted an 11.35% BIS capital adequacy ratio at the end of September 2006, lower than the 11.42% BIS ratio the bank reported at the end June 2006, according to preliminary data released by the Financial Supervisory Service. The bank's BIS ratio is the lowest among all regional banks, with the exception of Busan Bank's 11.14% A Troubled Company Reporter - Asia Pacific report on Sept. 1, 2006, explained 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. The FSS release contains this information on regional banks' BIS Capital Ratio by Bank (in percent): June Sept. 2003 2004 2005 2006 2006 ------ ------ ------ ------ ------ Daegu 10.58 10.66 11.33 11.60 11.73 Busan 11.66 10.84 12.25 11.61 11.14 Kwangju 10.72 11.81 11.60 11.89 11.55 Jeju 10.96 10.91 11.71 12.22 11.70 Jeonbuk 10.79 10.72 11.53 11.54 12.22 Kyongnam 11.69 11.34 10.59 11.42 11.35 Regional Banks 11.13 11.02 11.52 11.63 11.49 Kyongnam Bank -- http://www.kyongnambank.co.kr/-- has served as a regional financial center of South Gyeongsang Province from its stronghold bases in Masan, Changwon and Ulsan, the three major industrial centers in Korea. Fitch Ratings gave Kyongnam Bank an individual rating of 'C' effective April 25, 2006. =============== M A L A Y S I A =============== DATUK KERAMAT: Bursa Hands Public Reprimand, Fines Directors ------------------------------------------------------------ The Bursa Malaysia Securities Bhd publicly reprimanded Datuk Keramat Holdings Bhd after the company failed to file its annual report for the financial year ended Dec. 31, 2005, and quarterly report for the period ended June 30, 2006, within the stipulated timeframe. In addition, Bursa Malaysia had also taken enforcement action against some of the company's directors for failing to ensure the timely filing of the company's financial reports with the bourse. Datuk Keramat has yet to file these financial reports: -- annual audited accounts for the financial years ended Dec. 31, 2004 and Dec. 31, 2005; -- annual report for the financial year ended Dec. 31, 2004; and -- quarterly reports for the financial period ended March 31, 2005, June 30, 2005, Sept. 30, 2005, Dec. 31, 2005, and March 31, 2006. The directors who are facing fines are: * Azimuddin bin Ab. Ghani -- MYR63,000 * Willie Howard Pickle -- MYR25,200 * Mohd Nor bin Abdul Raman -- MYR25,200. * * * Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings Berhad is engaged in investment and property holding. The Company is also involved in management services; property investment services; project management services and development; credit and financing activities; distribution and publication of magazines; media design and advertising; management of supermarket and departmental store; trading and distribution of pharmaceutical, management of car park, garment manufacturing and financial services. The Group is facing numerous suits filed by financiers and trade creditors who have alleged that outstanding debts are owed to them. On January 24, 2005, the Company was served with a wind- up petition by Affin Bank Bhd, who claimed a sum ofMYR15.66 million in respect of revolving credit facilities granted to the company. GEORGE TOWN: Gets Reprimand Over Failure to File Financials ----------------------------------------------------------- George Town Holdings Bhd failed to submit its annual report for the financial year ended Dec. 31, 2005, and quarterly report for the period ended June 30, 2006, within the timeframe set by Bursa Malaysia Securities Bhd. Accordingly, the bourse publicly reprimanded the company for violating its listing requirements. In addition, Bursa Securities had also taken enforcement action against some of the company's directors for their failure to ensure the filing of these financial statements within the stipulated time frame: -- annual audited accounts for the financial years ended Dec. 31, 2004 and Dec. 31, 2005; -- annual report for the financial year ended Dec. 31, 2004; and -- quarterly reports for the financial period ended March 31, 2005, June 30, 2005, Sept. 30, 2005, Dec. 31, 2005 and March 31, 2006. These fined directors are: * Azimuddin bin Ab. Ghani, Executive Director -- MYR63,000 * Willie Howard Pickle -- MYR25,200 * Mohd Nor bin Abdul Raman -- MYR25,200 * * * Headquartered at Petaling Jaya, in Selangor Darul Ehsan, Malaysia, George Town Holdings Berhad operates supermarkets, department stores and convenience stores. Its other activities include property development, trading in pharmaceutical products, media design and advertising, management services, goldsmith and jewelers, management of car parks, bakery, pastry and fast food center, financial services, hotel management and investment holding. The Group operates in Malaysia, Continental Europe/Offshore Islands and other countries. The company has been categorized as an Affected Listed Issuer under Practice Note 17, based on its unaudited financial statement as at December 31, 2004, wherein it showed that it had MYR28.7 million shareholders' equity representing 23.4% of the issued and paid-up share capital which is less than the 25% minimum required under the listing requirements of Bursa Securities. TAP RESOURCES: Bursa to Suspend Securities Trading on March 9 ------------------------------------------------------------- The Bursa Malaysia Securities Bhd will suspend the trading of Tap Resources Bhd's securities on March 9, 2007, at 9:00 a.m. after the company failed to submit its regularization plan to relevant authorities. As an affected listed issuer under the Amended PN 17 category of the bourse, Tap Resources was expected to submit a plan showing the steps it will take to stabilize its financial and operational operation on Feb. 28, 2007, to the Securities Commission and other relevant authorities. * * * TAP Resources Berhad is principally engaged in property development. Its other activities include general contracting; manufacturing and general trading of building materials, construction chemicals, ready mixed concrete and non-baked bricks; installing air-conditioners, process control and switch gear automation; selling of electrical goods; and investment holding. The Group operates wholly in Malaysia. The company is classified under the PN17 category because, for the nine months ended January 31, 2006, its shareholders' equity on a consolidated basis is equal to or less than 25% of the issued and paid up capital of the Company and such shareholders equity is less than the minimum issued and paid up capital as required under paragraph 8.16A (1) of the Listing Requirements of Bursa Malaysia Securities Berhad, plus it has a default in payments and is unable to provide a solvency declaration. With Tap's failure to comply with the requirements, Bursa Securities will commence a suspension and delisting procedure on the company's securities. ===================== N E W Z E A L A N D ===================== ATECH CUTTING: Court Appoints Joint Liquidators ----------------------------------------------- The High Court of Auckland appointed Henry David Levin and Barry Phillip Jordan as joint and several liquidators of Atech Cutting Ltd on Feb. 15, 2007. Accordingly, the liquidators fixed March 15, 2007, as the last day for the company's creditors to lodge their claims. The Joint Liquidators can be reached at: Henry David Levin Barry Phillip Jordan PPB McCallum Petterson Level 11, Forsyth Barr Tower 55-65 Shortland Street, Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 BOP HORTICULTURE: Court to Hear Liquidation Petition on March 8 --------------------------------------------------------------- The High Court of Auckland will hear a liquidation petition against BOP Horticulture Ltd on March 8, 2007, at 10:00 a.m. Accident Compensation Corp. filed the petition on Nov. 20, 2006 Accident Compensation's solicitor can be reached at: Dianne S. Lester Maude & Miller 2nd Floor, McDonald's Building Cobham Court (PO Box 50555 or DX SP 32505) Porirua City New Zealand EAST COAST: Appoints Official Assignee as Liquidator ---------------------------------------------------- On Feb. 13, 2007, the Official Assignee of East Coast Plasterers Ltd was named as the company's liquidator. As reported by the Troubled Company Reporter - Asia Pacific, the High Court of Gisborne heard the liquidation petition against the company on that day. The Commissioner of Inland Revenue filed the petition. The Liquidator can be reached at: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: http://www.insolvency.govt.nz FRUEHAUF TRAILERS: Placed Under Receivership, Lays Off Workers -------------------------------------------------------------- On Feb. 23, 2007, PricewaterhouseCoopers placed Fruehauf Trailers Ltd. under receivership. However, the company advised that it is continuing to trade as normal. According to Receiver Malcolm Hollis, of PriceWaterhouseCoopers, the company was put into receivership because it was trading at a loss and owed more than NZ$1 million, stuff.co.nz cites the Manawatu Standard. The company will stay open with a trimmed workforce for about six weeks and the company will be sold as a going concern, Mr. Hollis noted, adding that manufacturing in New Zealand is becoming increasingly difficult. On Feb. 28, 2007, 13 Fruehauf Pacific workers, which include welders, fitters, spray painters and engineers, were laid off, the Manawatu Standard relates, noting that the remaining 33 workers will also be laid off and the business closed if receivers cannot sell it as a going concern. The reason for the lay off of 13 workers was to reduce workers to compensate for the current level of work in the company. Mr. Hollis said "we have had to restructure so we don't lose money while we are here." Mr. Hollis further said that the 13 workers would be paid their two days of outstanding wages, but would not receive holiday pay unless receivers get the necessary cash. The laid-off workers will not receive redundancy payouts, as it was not in their contract, the paper notes. The company's is based in Feilding with branches in Auckland and Christchurch. Stuff.co.nz recounts that Fruehauf Pacific cut 20 jobs from its Feilding workforce nine months ago. One other worker has been laid off in Christchurch, the paper adds. About Fruehauf Trailers Fruehauf Trailers -- http://www.fruehauf.co.nz/-- is New Zealand's leading manufacturer of heavy transport trailers and ancillary equipment, meeting a wide variety of transport needs. Fruehauf's design, quality and production systems reflect it's international standing as a leading supplier. HI TECH BUILDING: Faces Liquidation Proceedings ----------------------------------------------- A petition to liquidate Hi Tech Building Systems Ltd was heard before the High Court of Christchurch on Feb. 26, 2007. Chapman Engineering Ltd filed the petition with the Court on Sept. 18, 2006. Chapman Engineering's solicitor can be reached at: P. M. James Saunders & Co 227 Cambridge Terrace (PO Box 18) Christchurch New Zealand Telephone:(03) 379 7690 Facsimile:(03) 353 0469 KATANA BUSINESS: Shareholders Appoint Joint Liquidators ------------------------------------------------------- On Feb. 7, 2007, the shareholders of Katana Business Group Ltd appointed Peri Micaela Finnigan and Victoria Toon as the company's joint and several liquidators. In this regard, the Liquidators fixed March 15, 2007, as the deadline within which the company's creditors are to prove their debts. The Joint Liquidators can be reached at: Peri Micaela Finnigan Victoria Toon McDonald Vague PO Box 6092, Wellesley Street Post Office Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz MID CITY: CIR Seeks to Liquidate Company ---------------------------------------- On Dec. 19, 2006, the Commissioner of Inland Revenue filed a petition to liquidate Mid City Concrete Ltd. The petition will be heard before the Court of Napier on March 1, 2007, at 10:00 a.m. The CIR's solicitor can be reached at: R. J. Collins Elvidge & Partners corner of Raffles and Bower Streets Napier New Zealand OCTAGON HOUSING: Liquidation Hearing Slated for May 3 ----------------------------------------------------- On Jan. 16, 2007, Newmarket European Ltd filed a liquidation petition against Octagon Housing 3000 Ltd before the High Court of Auckland. The petition will be heard on May 3, 2007, at 10:45 a.m. Newmarket European's solicitor can be reached at: Malcolm Whitlock Debt Recovery Group NZ Limited 149 Ti Rakau Drive, Pakuranga Auckland New Zealand PETERRY HOLDINGS: Commences Liquidation Proceedings --------------------------------------------------- On Feb. 14, 2007, the shareholders of Peterry Holdings Ltd resolved to liquidate the company's business. In this regard, Neil William Evetts was appointed as liquidator. The company's Liquidator can be reached at: Neil William Evetts 28 Vivian Street, New Plymouth New Zealand Telephone:(06) 757 9074 Facsimile:(06) 758 1182 PUKEATUA CONTRACTING: Court Hears Liquidation Petition ------------------------------------------------------ A liquidation petition filed against Pukeatua Contracting 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 THE COVE: Hearing of Liquidation Petition Set for May 3 ------------------------------------------------------- The High Court of Auckland will hear a liquidation petition filed against The Cove Ltd on May 3, 2007, at 10:00 a.m. Hilti (New Zealand) Ltd filed the petition on Dec. 20, 2006. Hilti (New Zealand)'s solicitor can be reached at: Malcolm Whitlock Debt Recovery Group NZ Limited 149 Ti Rakau Drive, Pakuranga Auckland New Zealand TRUE DIMENSION: Shareholders Opt to Close Business -------------------------------------------------- On Feb. 15, 2007, the shareholders of True Dimension Investment Ltd resolved through a resolution to liquidate the company's business. Subsequently, Nigel Andrew Milton was appointed as liquidator. The Liquidator can be reached at: Nigel Andrew Milton c/o John Schollum BDO Spicers, PO Box 51563 Pakuranga, Auckland Telephone:(09) 274 9340 Facsimile:(09) 274 0863 WHANGAPOUA PROPERTIES: Creditors' Proofs of Claim Due on May 15 --------------------------------------------------------------- The creditors of Whangapoua Properties Ltd are required to submit their proofs of claim by May 15, 2007, and to establish any priority claims they may have. According to the Troubled Company Reporter - Asia Pacific, the Court heard the liquidation petition against the company on Feb. 15, 2007. The Commissioner of Inland Revenue filed the petition. The company's 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 WOOL EQUITIES: Commission Completes Review of Trading in Shares --------------------------------------------------------------- The Securities Commission has completed a review of trading in the shares of Wool Equities Limited, the company said in a disclosure to the New Zealand Stock Exchange. The matter was referred to the Commission by NZX on Nov. 22, 2006, after a complaint by some shareholders. The review related to allegations of insider trading against the former chairman, Richard Bentley, and the former chief executive officer, Mark O'Grady. The Commission will not be taking any further action in this matter, the company notes. Wellington, New Zealand-based Wool Equities Ltd. -- http://www.woolequities.co.nz/-- is a technology investment company, with shareholdings in a diverse range of companies, focusing in the biotech sector. The companies include Karatec Limited, which is a manufacturing, marketing/distribution and technology licensing business extracting high-value protein fractions used for applications in personal care, consumer health and medical materials; Canesis Networks Limited, which is engaged in wool science and textile technology; Orico Limited, and Paracco Limited. From June 30, 2006, Covita Limited was a subsidiary of the company. The group suffered net losses of NZ$3,571,000 and NZ$7,996,000 for the years ended June 30, 2006, and 2005, respectively (parent: NZ$2,852,000 and NZ$5,942,000). ===================== P H I L I P P I N E S ===================== PHIL. LONG DISTANCE: First Pacific Completes Buying 6.4% Stake -------------------------------------------------------------- First Pacific's shareholders, on Feb. 28, approved the company's acquisition of an additional interest in approximately 46% in Philippine Telecommunications Investment Corporation for a consideration of PHP25.2 billion (equivalent to approximately 510.6 million). This additional investment in PTIC represents an attributable interest of approximately 6.4% issued common share capital of Philippine Long Distance Telephone Company, thereby raising First Pacific's interest in PLDT to approximately 29%. The acquisition approved by the shareholders at a special general meeting, allowed First Pacific to complete on Feb. 28 the conditional sale and purchase agreement signed with the Philippine Government on Feb. 14, 2007. This finalizes a process that commenced with a public auction initiated by the Philippine Government on Dec. 8, 2006. The transaction has been financed with a combination of approximately US$90.6 million of internal resources and US$420 million of borrowings. Manuel V. Pangilinan, First Pacific's Managing Director and Chief Executive Officer, said: "We are pleased to have this valuable opportunity to further increase our investment in PLDT, which has been a strategic investment of the Group since 1998. PLDT has reported outstanding performances over last few years and is a major earnings and dividend contributor to the Group. We are confident that the Group will continue to benefit from the strong performance of PLDT." About First Pacific First Pacific is a Hong Kong-based investment and management company with operations located in Asia. Its principal business interests relate to Telecommunications, Consumer Food Products and Infrastructure. Listed in Hong Kong (Stock code: 00142), First Pacific's shares are also available in the United States through American Depositary Receipts (ADR code: FPAFY). About PLDT Based in Makati City, Philippines, Philippine Long Distance Telephone Co. -- http://www.pldt.com.ph/-- is the leading national telecommunications service provider in the Philippines. Through three principal business groups -- wireless, fixed line, and information and communications technology -- the company offers a wide range of telecommunications services to over 22 million subscribers in the Philippines across the nation's most extensive fiber optic backbone and fixed line, cellular and satellite networks. * * * On Nov. 3, 2006, Moody's Investors Service affirmed PLDT's Ba2 senior unsecured foreign currency rating and changed its outlook to stable from negative. The Ba2/stable rating is above the Philippines' foreign currency country ceiling of Ba3/stable, Moody's notes. According to the agency, the foreign currency senior unsecured debt rating incorporates convertibility risk, which is the likelihood of the government declaring a debt moratorium to counter a foreign currency crisis. Moody's views foreign currency bonds subject to international law as less likely to be subject to a debt moratorium than foreign currency obligations subject to local law. Therefore, a differential exists between PLDT's foreign currency bond rating and the sovereign rating. As such, PLDT's foreign currency bond rating is a function of its own risk of default and the probability of a Philippine government default on its foreign debt (implied by its B1 rating), the likelihood that the government would declare a moratorium in the event of a default (implied by the Ba3 foreign currency ceiling) and, if it did, the chances that it would exempt a company such as PLDT. PRIME ORION: Subsidiary Sells Pepsi Stake for US$21.16 Million -------------------------------------------------------------- Prime Orion Philippines, Inc., said that its wholly owned subsidiary, Orion Brands International, Inc., sold on Feb. 28, 584,283,294 common shares stock of Pepsi-Cola Products Philippines, Inc. In a disclosure with the Securities and Exchange Commission and the Philippine Stock Exchange, Prime Orion reveals that its unit sold the Pepsi-Cola Stake to The Nassim Fund for a cash consideration of US$21,163,362 or US$0.36 per share. Nassim is a Singapore-based absolute return hedge fund that invests in Asia Pacific equities, the company says. Headquartered in Makati City, Philippines, Prime Orion Philippines, Inc. acquires by purchase, exchange, assign, donate or otherwise, and to hold, own and use, for investment or otherwise and to sell, assign, transfer, exchange, lease, let, develop, mortgage, pledge, traffic, deal in and with, and otherwise operate, enjoy and dispose of any and all properties of every kind and description and wherever situated, as and to the extent permitted by law, including but not limited to, buildings, tenements, warehouses, factories, edifices and structures and other improvements, and bonds, debentures, promissory notes, shares of capital stock, or other securities and obligations, created, negotiated or issued by any corporation, association, or other entity, domestic or foreign. Prime Orion Philippines, Inc. and subsidiaries have principal business interests in real estate, financial services and manufacturing. As previously reported in the Troubled Company Reporter - Asia Pacific, the company's balance sheet as of Sept. 30, 2006, showed capital deficiency of PHP4.6 billion. * Bear Stearns Sees Further Strengthening of Peso in June --------------------------------------------------------- Even with easing of regulations on foreign exchange, the Philippine peso could strengthen between 47 and 48 against the United States dollar by June, the Manila Standard Today quotes Bear Stearns and Co. Inc. as saying in its weekly journal. The Bangko Sentral ng Pilipinas has recently made changes to its foreign exchange regulatory framework, which is set to take effect on April 2. The central bank will now allow banks and individuals to hold more dollars and allow local companies to make more overseas investments. Bear Stearn says this move is aimed at slowing the Philippine peso's appreciation. The international brokerage firm admits that the new regulations may temporarily weaken the peso but by mid-year will be back to its march toward stronger levels. The international brokerage firm believes that the peso could even go up to 45 to 46 over the next few years. Bear Stearns said the peso had been the best-performing currency in Asia and even lagged other currencies such as the Korean won and the Thai baht, the Manila Standard points out. Bear Stearns based it forecast on the peso's further rise on heavy foreign exchange inflows in 2006 that resulted in a balance of payments position of US$3.7 billion. * * * On Jan. 10, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured debt rating to the Republic of Philippines' (foreign currency BB-/Stable/B, local currency BB+/Stable/B) proposed US$1.0 billion global bond issue maturing in 2032. On Jan. 10, 2007, Fitch Ratings assigned a Long-term foreign currency rating of 'BB' to the Republic of the Philippines' (rated foreign currency Issuer Default 'BB') US$1 billion global bond maturing in 2032 and priced to yield 6.55%. On Nov. 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= CHINA FORTUNE: High Court to Hear Wind-Up Petition on March 2 ------------------------------------------------------------- Poh Tiong Choon Holdings (Pte) Ltd filed a petition on Feb. 8, 2007, to wind up the operations of China Fortune Investment Corporation Pte Ltd. The petition will be heard before the High Court of Singapore on March 2, 2007, at 10:00 a.m. Poh Tiong's solicitor can be reached at: Gurbani & Co 9 Temasek Boulevard #17-01 Suntec Tower 2 Singapore 038989 GOUDIE ASSOCIATES: Pays First and Final Dividend to Creditors ------------------------------------------------------------- Goudie Associates Singapore Pte Ltd, which is under creditors' voluntary liquidation, paid the first and final dividend to its creditors on Feb. 22, 2007. The company paid 33.91% on account of all received claims. The company's liquidator can be reached at: Kon Yin Tong 47 Hill Street #05-01 Chinese Chamber of Commerce & Industry Building Singapore 179365 LAZARD LTD: Dec. 31 Balance Sheet Upside-Down by US$240.3 Mil. -------------------------------------------------------------- Lazard Ltd. reported that at Dec. 31, 2006, its balance sheet showed total assets of US$3.2 billion and total liabilities of US$3.4 billion, resulting in a total stockholders' deficit of US$240.3 million. The company earned US$236.2 million for the year ended Dec. 31, 2006, from pro forma net income of US$172.3 million for the year ended Dec. 31, 2005. Operating income for the full year 2006 increased 31% to US$327.2 million, compared to pro forma US$248.9 million for 2005. For the full year 2006, operating revenue increased 16% to a record US$1.57 billion compared to US$1.36 billion for 2005. Net income, before exchange of outstanding exchangeable interests for the full year 2006, increased 44% to US$93 million compared to pro forma income from continuing operations of US$64.5 million for 2005. Net income on a fully exchanged basis for the fourth quarter of 2006 increased by 50% to US$85.8 million from US$57.3 million for the fourth quarter of 2005. Operating income increased by 49% to US$115.2 million for the fourth quarter of 2006, from US$77.1 million for the fourth quarter of 2005. Operating revenue for the fourth quarter of 2006 increased by 27% to US$491.5 million, from US$387.7 million for the fourth quarter of 2005. Net income before exchange of outstanding exchangeable interests for the fourth quarter of 2006 increased 68% to US$36.6 million compared to pro forma income from continuing operations of US$21.7 million for the fourth quarter of 2005. "Lazard had an exceptional first full year as a publicly traded firm and these results demonstrate the continued effectiveness of our simple business model. We are particularly pleased to have successfully implemented our three-year plan in Asset Management," said Bruce Wasserstein, Chairman and Chief Executive Officer of Lazard Ltd. "We are a premium financial services firm that is committed to excellence, intellectual rigor, integrity and creativity for our clients on a global scale." "During 2006, Lazard marked a number of milestones in the history of the firm. We are pleased to report record annual revenues in both Financial Advisory and Asset Management," said Steven J. Golub, Lazard's Vice Chairman. "We advised on a large number of major transactions, including Pfizer's US$16.6 billion sale of its consumer business, the Cerberus consortium's US$14 billion acquisition of a controlling stake in GMAC, Fisher Scientific's US$12.8 billion merger with Thermo Electron, and Caisse d'Epargne's reorganization of its Caisse des Depots et Consignations partnership and its negotiations with Groupe Banque Populaire in the creation of NATIXIS. We delivered positive net inflows in Asset Management for the fourth quarter and the full year, and reached an all time record of over US$110 billion of assets under management. "In December, we successfully completed our second public equity offering, raising US$349 million for us. This enables us to invest in our businesses, furthering our ability to achieve our strategic vision," noted Golub. "We also have continued to control costs, while retaining and attracting talented professionals." Lazard believes that pro forma results assuming full exchange of outstanding exchangeable interests provide the most meaningful basis for comparison among present, historical and future periods. Financial Advisory revenue increased 13% to US$973.4 million for 2006, from US$865.3 million for 2005, driven by strong M&A performance and growth in Corporate Finance and Other revenue offset by lower Financial Restructuring revenue. Asset Management revenue increased 18% to US$548.5 million for 2006 compared with US$463.7 million for the 2005. Capital On Dec. 6, 2006, Lazard Ltd. issued 14,050,400 shares of Class A common stock, of which 8,050,400 shares were sold by Lazard Ltd. for net proceeds of US$349.1 million and 6,000,000 shares were sold by its selling shareholders, for which Lazard Ltd did not receive any proceeds. The issuance increased the total issued shares, on a fully exchanged basis, by 8,050,400. About Lazard Ltd. Lazard Ltd. -- http://www.lazard.com/-- one of the world's preeminent financial advisory and asset management firms, operates from 29 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides services including mergers and acquisitions advice, asset management, and restructuring advice to corporations, partnerships, institutions, governments, and individuals. The company has locations in Australia, China, France, Germany, India, Japan, Korea and Singapore. LEAR CORP: Net Loss Down to US$707.5 Mil. in Year Ended Dec. 31 --------------------------------------------------------------- Lear Corporation's net loss for the year ended Dec. 31, 2006, decreased to US$707.5 million from US$1,381.5 million in the year ended Dec. 31, 2005, reflecting loss on divestiture of the company's interior business of US$636 million in 2006 and goodwill impairment charges of US$1.0 billion in 2005. Net sales for the year ended Dec. 31, 2006, increased by 4.4%, or US$750 million, to US$17,838.9 million from US$17,089.2 million in 2005. New business favorably impacted net sales by US$1.9 billion. The increase was partially offset by the impact of unfavorable vehicle platform mix and lower industry production volumes primarily in North America, which reduced net sales by US$1.2 billion. The company's balance sheet at Dec. 31, 2006, showed total assets of US$7,850.5 million, total liabilities of US$7,248.5 million, and total stockholders' equity of US$602.0 million. Lear's total stockholders' equity at Dec. 31, 2005, was US$1,111.0 million. Gross profit and gross margin were US$928 million and 5.2% in 2006, as compared to US$736 million and 4.3% in 2005. New business favorably impacted gross profit by US$186 million. Gross profit also benefited from productivity initiatives and other efficiencies. The 2005 period also included incremental fixed asset impairment charges of US$72 million. The improvements in gross profit were partially offset by the impact of net selling price reductions, unfavorable vehicle platform mix and lower industry production volumes primarily in North America, which collectively reduced gross profit by US$175 million. Gross profit was also negatively impacted by higher raw material and commodity costs. Selling, general and administrative expenses, including research and development, were US$647 million for the year ended Dec. 31, 2006, as compared to US$631 million for the year ended Dec. 31, 2005. As a percentage of net sales, selling, general and administrative expenses were 3.6% and 3.7% in 2006 and 2005, respectively. The increase in selling, general and administrative expenses was largely due to inflationary increases in compensation, facility maintenance and insurance expense, as well as incremental infrastructure and development costs in Asia, partially offset by a decrease in litigation- related charges and the impact of recent census reduction actions. Interest expense was US$210 million in 2006, as compared to US$183 million in 2005. The increase was largely due to an increase in short-term interest rates and increased costs associated with debt refinancings. Cash Flows Net cash provided by operating activities was US$285 million in 2006, as compared to US$561 million in 2005. The net change in sold accounts receivable resulted in a US$589 million decrease in operating cash flows between periods. The decrease was partially offset by the net change in recoverable customer engineering and tooling, which resulted in a US$307 million increase in operating cash flows between periods. Decreases in accounts receivable and accounts payable were a source of US$153 million of cash and a use of US$359 million of cash, respectively, in 2006, reflecting the timing of payments received from customers and made to suppliers. Net cash used in investing activities was US$312 million in 2006, as compared to US$542 million in 2005, reflecting a US$221 million decrease in capital spending between periods. In 2006, cash received of US$35 million related to the sales of interest in two affiliates was partially offset by a US$21 million indemnity payment related to 1999 acquisition of UT Automotive, Inc. Financing activities were a source of US$277 million of cash in 2006, as compared to a use of US$347 million of cash in 2005. In 2006, financing activities include the incurrence of an additional US$600 million of term loans due 2010 under primary credit facility, the issuance of US$900 million aggregate principal amount of senior notes due 2013 and 2016, the repurchase of US$1.3 billion aggregate principal amount (or accreted value) of senior notes due 2008, 2009 and 2022 and the issuance of 8.7 million shares of common stock in a private placement for a net purchase price of US$199 million. Capitalization In addition to cash provided by operating activities, the company utilizes a combination of available credit facilities to fund capital expenditures and working capital requirements. For the years ended Dec. 31, 2006, and 2005, the company's average outstanding long-term debt balance, as of the end of each fiscal quarter, was US$2.4 billion and US$2.3 billion, respectively. The weighted average long-term interest rate, including rates under committed credit facility and the effect of hedging activities, was 7.3% and 6.5% for the respective periods. The company utilizes uncommitted lines of credit as needed for short-term working capital fluctuations. For the years ended Dec. 31, 2006, and 2005, average outstanding unsecured short- term debt balance, as of the end of each fiscal quarter, was US$20 million and US$38 million, respectively. The weighted average interest rate, including the effect of hedging activities, was 4.4% and 3.7% for the respective periods. The availability of uncommitted lines of credit may be affected by financial performance, credit ratings and other factors. Uncommitted lines of credit available from banks decreased by approximately US$75 million from Dec. 31, 2005, to Dec. 31, 2006. AREP Merger Deal As reported in the Troubled Company Reporter on Feb. 12, 2007, Lear and American Real Estate Partners entered into an agreement for Lear to be acquired by AREP, in a transaction valued at approximately US$5.3 billion, including the assumption of debt. Under the terms of the agreement, Lear shareholders would receive US$36.00 per share in cash. Closing is expected to occur by the end of the second quarter of 2007. Under the terms of the agreement, Lear may solicit alternative proposals from third parties for a period of 45 days from the execution of the agreement and intends to consider any such proposals with the assistance of its independent advisors. In addition, Lear may, at any time, subject to the terms of the merger agreement, respond to unsolicited proposals. If Lear accepts a superior proposal, a break-up fee would be payable to AREP. Restructuring In the second quarter of 2005, the company began to implement consolidation and census actions in order to address unfavorable industry conditions. The actions continued throughout 2005 and 2006 and are part of a comprehensive restructuring strategy intended to (i) better align manufacturing capacity with the changing needs of customers, (ii) eliminate excess capacity and lower operating costs and (iii) streamline organizational structure and reposition business for improved long-term profitability. In connection with the restructuring actions, Lear expects to incur pretax costs of approximately US$300 million through 2007, although all aspects of the restructuring actions have not been finalized. Restructuring and related manufacturing inefficiency charges were US$100 million in 2006 and US$104 million in 2005. The remainder of the restructuring costs are expected to be incurred in 2007. Financing Transactions On April 25, 2006, Lear amended and restated its primary credit facility. On Nov. 24, 2006, Lear completed the issuance of US$300 million aggregate principal amount of 8.50% senior notes due 2013 and US$600 million aggregate principal amount of 8.75% senior notes due 2016. Using the net proceeds from the financing transactions, the company repurchased EUR194 million aggregate principal amount of 8.125% senior notes due 2008, US$759 million aggregate principal amount of 8.11% senior notes due 2009 and outstanding zero-coupon convertible notes due 2022 with an accreted value of US$303 million. In connection with the refinancing transactions, Lear recognized a net loss on the extinguishment of debt of approximately US$48 million in 2006. On Nov. 8, 2006, Lear completed the sale of 8,695,653 shares of its common stock in a private placement to affiliates of and funds managed by Carl C. Icahn for a purchase price of US$23 per share. The proceeds of the offering will be used for general corporate purposes, including strategic investments in the company's core businesses. A full-text copy of the financial report can be accessed for free at http://researcharchives.com/t/s?1a8c About Lear Corporation Headquartered in Southfield, Michigan , Lear Corporation (NYSE: LEA) -- http://www.lear.com/-- supplies automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products. Lear has operations in these Asian countries: Singapore, China, India, Japan, the Philippines and Thailand. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 15, 2007, that following Lear's agreement to be acquired by Carl Icahn- controlled American Real Estate Partners, L.P., Standard & Poor's Ratings Services lowered its corporate credit rating on Lear to 'B' from 'B+' and placed its ratings on CreditWatch with negative implications. The TCR-AP also noted on Feb. 7, 2007, that Moody's Investors Service placed Lear's corporate family rating at B2, under review for possible downgrade. The company's speculative grade liquidity rating of SGL-2 has been affirmed. LIANG HUAT: Net Loss Down by 45% to SGD16.08 Mil. in FY 2006 ------------------------------------------------------------ On Feb. 27, 2007, Liang Huat Aluminium Limited posted in the Singapore Stock Exchange its financial results for the fiscal year ended Dec. 31, 2006. Liang Huat recorded a SGD16.08-million net loss in the fiscal year ended Dec. 31, 2006, representing a 45% decrease from the SGD29.22-million net loss incurred in 2005. This was mainly due to the positive effects from the deconsolidation of non-core subsidiaries amounting to SGD10.0 million. The Group's turnover for the financial year ended Dec. 31, 2006, reduced by approximately 69.1% from SGD8.76 million to SGD2.71 million. The reduction in turnover was the result of: * Continued difficult operating environment in light of the ongoing restructuring; * Effects of the plant shutdown in its China subsidiary, Foshan City Nanhai Hualian Aluminium Co., Ltd. Foshan City Nanhai contributed SGD4.3 million or 48.8% to the turnover for the financial year ended Dec. 31, 2005; * Cessation of rental income subsequent to the completion of disposal of the company's leasehold property, Liang Huat Industrial Complex, in January 2006 as part of the company's restructuring plans; and * Revenue from new contract manufacturing orders yet to be recognized. The current level of business volume of the Group is very low and the revenue generated is insufficient to cover the fixed costs of operations, hence resulting in gross loss for both fiscal year 2006 and fiscal year 2005. However, with the cost cutting measures that have been in place, the Group has reduced gross loss from operations by 65.5% from SGD1.8 million in fiscal year 2005 to SGD0.6 million in fiscal year 2006. The effects of the continuous efforts of cost cutting measures is also reflected in operating expenses which have decreased by 56.7% from SGD4.7 million to SGD2.0 million. The significant increase in other operating income is mainly due to: -- increase in gain on disposal of property, plant and equipment from SGD32,000 in fiscal year 2005 to SGD0.9 million in fiscal year 2006; -- increase in gain on de-consolidation of non-core subsidiaries totaling SGD10.0 million in fiscal year 2006 compared to SGD1.6 million in fiscal year 2005; and -- reversal of costs and expenses over-recognized in prior years amounting to SGD8.9 million in fiscal year 2006 compared to SGD1.6 million in fiscal year 2005. As of Dec. 31, 2006, the company's balance sheet showed total assets of SGD0.84 million and SGD138.78 million in total liabilities, which leaves a shareholders' equity deficit of SGD137.93 million. Moreover, the Group's Dec. 31, 2006, balance sheet showed total assets of SGD4.58 million and total liabilities of SGD150.8 million, resulting in a shareholders' equity deficit of SGD146.22 million. A full-text copy of Liang Huat's financial statement for the fiscal year ended Dec. 31, 2006, is available for free at: http://bankrupt.com/misc/LiangHuatFY2006.pdf About Liang Huat Liang Huat Aluminium -- http://www.lianghuatgroup.com.sg/-- is a vertically integrated, professionally run group of companies based in Singapore focusing on producing high quality aluminum products and processed glass for both the industrial and construction industries. It also supplies and installs aluminum and processed glass for major commercial and residential projects mainly in Singapore. Liang Huat was the subject of a wind-up petition filed by Lim Ah Siong trading as Lian Siong Aluminium & Trading on August 26, 2004. Presently, the company is undergoing a financial restructuring exercise. It is also working a Scheme of Arrangement with its major creditor banks. As of Dec. 31, 2006, the company's balance sheet showed total assets of SGD0.84 million and SGD138.78 million in total liabilities, which leaves a shareholders' equity deficit of SGD137.93 million. OVERSEAS SHIPHOLDING: Posts Net Income of US$392.7MM in FY 2006 --------------------------------------------------------------- Overseas Shipholding Group, Inc., reported on Feb. 27, 2007, the results for the fiscal year and fourth quarter ended Dec. 31, 2006. For the fiscal year ended December 31, 2006, the company reported a 3.2% increase in Time Charter Equivalent1 revenues to US$992.8 million from US$961.7 million in 2005. The increase was principally due to increases in average daily TCE rates for VLCCs and Handysize Product Carriers, partially offset by an 888 day decrease in revenue days. EBITDA1 for the year decreased to US$595.1 million from US$705.5 million in 2005 and reflected a US$27.0 million increase in the reserve recorded in the third quarter for the settlement of a Department of Justice investigation announced Dec. 19, 2006. Net income for fiscal year ended December 31, 2006 was US$392.7 million, or US$9.92 per diluted share, compared with US$464.8 million, or US$11.77 per diluted share, a year ago. During the year, OSG sold or sold and leased-back four vessels and benefited from gains on vessel sales and sales of securities of US$74.1 million, representing US$1.56 per diluted share, compared with US$66.1 million, or US$1.40 per diluted share, a year ago. For the fourth quarter ended December 31, 2006, TCE revenues declined by 11.0% to US$241.6 million from US$271.1 million in the fourth quarter of 2005. EBITDA for the fourth quarter was US$170.3 million compared with US$170.5 million in the fourth quarter of 2005. Net income for the quarter ended December 31, 2006 was US$113.2 million, or US$2.86 per diluted share, compared with US$113.7 million, or US$2.88 per diluted share, for the fourth quarter of 2005. The current quarter benefited from gains on vessel sales and sale of securities of US$53.1 million, or US$1.12 per diluted share, compared with US$5.4 million, or US$0.09 per diluted share, in the same period a year ago. Of the US$53.1 million, US$28.4 million, or US$0.72 per diluted share, was associated with the sale of the Majestic Unity and US$24.7 million, or US$0.40 per diluted share, related principally to gains from liquidating security positions in the Capital Construction Fund in preparation for qualified withdrawals in connection with three newbuild Articulated Tug Barges. "Investment and expansion in each of our market segments has resulted in significant value creation for OSG shareholders," stated Morten Arntzen, President and Chief Executive Officer. "We continue to balance growth and investment across each of our four operating units through active asset management and fleet diversification. Adding to our already significant presence in the Americas, the proposed Heidmar acquisition will enable us to provide full service lightering services on the East Coast, West Coast and U.S. Gulf, further strengthening our position in the Americas." Arntzen further remarked, "Our objective of building a large base of contractual revenues has progressed significantly with more than US$340 million, or 32% of projected TCE revenues locked in for 2007. Further, the delivery of two LNG carriers in the second half of this year, each of which will commence 25-year charters transporting natural gas to the U.K., begins a new era for OSG in the gas segment. We are very excited about our prospects for the future." TCE revenues in the fourth quarter of 2006 for the International Crude Tanker segment were US$155.3 million, a decrease of US$40.6 million from the same period of 2005. The decline was principally due to a counter seasonal decline in rates, an increase in the number of days vessels were out of service due to drydocking and repairs and the sale of two Aframaxes in the third quarter of 2006. TCE revenues for the International Product Carrier segment increased US$5.4 million, or 11%, to US$54.4 million from US$49.0 million in the year earlier period. The increase was principally the result of higher rates earned by the Handysize Product Carriers. Revenue days remained consistent between the two periods, as the delivery of two chartered-in newbuilding Handysize Product Carriers in the third quarter of 2006 was offset by an increase in the number of days vessels were out of service due to drydocking and repairs. U.S. Flag TCE revenues increased US$8.5 million, or 44% quarter-over- quarter, to US$28.1 million from US$19.6 million in the same period a year ago, principally due to the Martitrans acquisition, which added 444 revenue days and US$11.8 million of TCE revenues to the U.S. unit during the period. Income from vessel operations was US$98.1 million in the fourth quarter of 2006, compared with US$118.1 million in the same period a year earlier. For the quarter ended December 31, 2006, total operating expenses decreased US$3.6 million to US$161.6 million from US$165.2 million in the corresponding quarter in 2005. Time and bareboat charter hire expenses increased quarter-over-quarter principally due to the sale lease-back of the Overseas Crown in the third quarter. Vessel expenses increased quarter-over-quarter due to the inclusion of the Maritrans fleet beginning November 29, 2006 and higher crew costs. General and administrative expenses decreased principally due to the change in recognition of targeted cash incentive compensation from an annual to a quarterly basis, partially offset by an increase in overall compensation and the addition of Tampa and Philadelphia operations of Maritrans. Business Highlights -- Future revenues associated with noncancelable time charters as of December 31, 2006, excluding time charters entered by the pools in which OSG participates and the Gas segment, totaled US$1.2 billion up from US$746.1 million as of December 31, 2005. This amount represented 37,669 revenue days. This increase reflects the company's balanced growth strategy and expansion in segments characterized by long-term charters during the last two years. Revenues of US$308.4 million or 13,159 days, is already secured for 2007. During 2006, approximately 69% of the company's TCE revenues were derived from the spot market and 31% of TCE revenues were generated from time or bareboat charters. -- OSG purchased 313,500 shares at an average price of US$59.09 per share through December 31, 2006, under the US$300 million share repurchase program authorized by the company's Board of Directors in June 2006. -- On January 23, 2007, OSG sold 4.6 million shares of common stock of Double Hull Tankers, Inc. in a registered public offering. OSG expects to recognize a gain from the transaction of approximately US$15 million in the first quarter of 2007. As a result of the sale, OSG's beneficial ownership of DHT's common stock is approximately 29.17%, or 8,751,500 shares. -- On February 9, 2007, the Board declared a US$0.25 per share dividend to stockholders of record on February 23, 2007, payable on March 8, 2007. Recent Activities and Quarterly Events The company entered into a number of transactions in furtherance of its strategy to expand its fleet, balance the mix of owned and chartered-in tonnage and capitalize on the strong market for second-hand tonnage. Crude Oil Tankers * The sale of the Majestic Unity, a 1996-owned VLCC tanker, closed on December 13, 2006 generating a gain of approximately US$28.4 million. * Three new partners joined Aframax International bringing the total number of pool partners to nine. * The addition of five, 44-meter beam newbuild Aframaxes brings the pool's modern, double hull operated, committed and newbuild fleet to 43. * On January 19, 2007, OSG entered into a joint venture for two VLCC tankers, in which it will own 49.9% interest. The tankers, which will be built at the Jiangnan shipyard in China, are scheduled to deliver in October 2009 and February 2010. The contract price for each of the tankers is approximately US$108 million. * On February 26, 2007, OSG announced an agreement in principle to acquire the Houston-based Heidmar Lightering business from Heidmar Inc., a subsidiary of Morgan Stanley Capital Group Inc. The operation, a fleet of four International Flag Aframax tankers and two U.S. Flag workboats, provides crude oil lightering services to refiners, oil companies and trading companies primarily in the U.S. Gulf. The lightering operation will create synergies and expand OSG's Aframax cargo and logistical system in the Atlantic basin as well as provide opportunities to serve U.S. West Coast customers with lightering service using OSG's Panamax tankers. Product Carriers * On December 1, 2006, OSG chartered-in one 47,350 dwt IMO III Product Carrier from Daishin Technos Co., Ltd., a privately held shipping company in Japan, for a period of eight years with an option to purchase the vessel beginning in 2015. The vessel, to be named the Overseas Carina, will be built by Imabari Shipbuilding Co., Ltd. in Japan, and is expected to be delivered to OSG in the third quarter of 2010. * On December 6, 2006, the company agreed to build two 52,000 dwt IMO III Product Carriers at Hyundai Mipo Dockyard Co. Ltd. The vessels, hull number 2107 and hull number 2108, are scheduled to be delivered to OSG in 2010. * On January 27, 2007, OSG took delivery of the Overseas Cygnus. The vessel, a 51,000 dwt IMO III Product Carrier, has been chartered-in through April 2017. * On February 14, 2007, the company sold and bareboat chartered back two 1996-built Product Carriers, the Overseas Nedimar and the Overseas Limar. The lease-back periods range from six and one-half years to eight years. The estimated US$11.2 million gain from sales will be deferred and recognized over the terms of the charters. U.S. * On November 28, 2006, the company completed the acquisition of Maritrans Inc., a leading U.S. Flag crude oil and petroleum product shipping company with a fleet of 19 operating and newbuild vessels. OSG paid US$37.50 per share, which valued the transaction at approximately US$506 million, including debt assumed upon closing. OSG has initially financed the acquisition through borrowings under existing credit facilities. OSG will be able to use approximately US$292 million of its Capital Construction Fund to fund payments towards the construction contracts and related costs of the three newbuild ATBs. As a result of the combination, OSG's U.S. fleet now totals 34 operating and newbuild vessels that include Handysize Product Carriers, ATBs, Dry Bulk Carriers and a Car Carrier. The strategic acquisition gives OSG a presence in all major U.S. Jones Act trading routes and provides customers with a broad range of short and long-haul transportation and lightering services. * On February 7, 2007, OSG announced an agreement in principle to bareboat charter up to six additional newbuild MT-46 Jones Act Product Carriers from American Shipping Corporation, a subsidiary of Aker American Shipping for initial terms of 10 to 15 years. Three of the vessels are fixed and the company holds options for an additional three. The agreement is subject to final documentation and customary closing conditions. * On February 9, 2007, OSG took delivery of the Overseas Houston, the first of the 10-ship order placed at the Aker Philadelphia Shipyard. Fleet Metrics and Corporate Statistics -- As of December 31, 2006, OSG's owned or operated fleet totaled 103 International Flag and U.S. Flag vessels compared to 89 at December 31, 2005. Fifty-eight percent, or 60 vessels, were owned as of December 31, 2006, compared with 56%, or 50 vessels, as of December 31, 2005. OSG's newbuild program of chartered-in and owned vessels totaled 34 and spanned all lines of business. Updates on most vessels under construction can be found in the Fleet section of http://www.osg.com -- Revenue days in the quarter totaled 7,688, comparable to 7,620 in the same period a year earlier. The change reflects the addition of the Maritrans fleet, partially offset by the sale of older tankers and an increase in drydock and repair days. -- At year-end, the company had 3,980 employees comprised of 3,579 sea going personnel and 401 shore side staff, compared with 3,437 employees at year end 2005, comprised of 3,187 sea going personnel and 250 shore side staff. Financial Profile As of Dec. 31, 2006, the company's balance sheet registered total assets of US$4.23 billion, total liabilities of US$2.02 billion leaving a shareholders' equity of US$2.21 billion. A full-text copy of the company's financial statement for the fiscal year and fourth quarter ended Dec. 31, 2006, is available for free at: http://bankrupt.com/misc/OSGFY2006.pdf About Overseas Shipholding Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. * * * As reported in the Troubled Company Reporter - Asia Pacific on August 14, 2006, Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. =============== T H A I L A N D =============== DAIMLERCHRYSLER AG: Chrysler Group February Sales Down 8% --------------------------------------------------------- DaimlerChrysler AG's Chrysler Group reported sales for February 2007 of 174,506 units; down 8% compared with February 2006 with 190,367 units. All sales figures are reported unadjusted. "In a generally soft market environment in February, the Chrysler Group had good traffic and solid customer interest especially for our newly launched, fuel efficient models like the Dodge Avenger, Dodge Caliber, and Jeep(R) Compass. Also, the Jeep Wrangler had its best February ever," Chrysler Group Vice President for Sales and Field Operations Steven Landry said. The Dodge Avenger posted sales of 5,205 units. The vehicle is one of the Chrysler Group's five new models that achieve 30 miles per gallon or better in highway driving. Jeep Wrangler and Wrangler Unlimited continued to post strong sales in February with 9,240 units, a rise of 63% over February 2006 sales of 5,673 units. February 2007 marks the best month of February in the history of the Jeep Wrangler. Sales of the Jeep Compass increased 3% over the previous month with 4,071 units compared with 3,965 units in January 2007. The Dodge Caliber finished February with sales of 9,900 units, an increase of 14% compared with last month with 8,672 units. Dodge Ram pickup sales continued to increase after an already strong January and posted sales of 28,633 units, up by 17% over the previous month with 24,379 units. "Building on the sales momentum of the Dodge Ram in the first two months of 2007, March will be the Chrysler Group's 'National Truck Month.' "Our marketing approach will primarily focus on our biggest volume model, the Dodge Ram, and tie it with the value of one of our most successful product features, the legendary HEMI(R) engine," Chrysler Group Vice President for Sales and Dealer Operations Michael Manley said. "Customers have the opportunity to get a no-extra-charge HEMI engine upgrade for the Dodge Ram 1500 as well as the Dodge Durango. We are confident that 'National Truck Month' will resonate well with our customers." Chrysler Group finished the month with 492,230 units of inventory, or a 68-day supply. Inventory is down by 8% compared with February 2006 when it was at 532,534 units. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells 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 company's worldwide locations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam and Australia. 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. 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. 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. PICNIC CORP: SET Posts "Halt" Sign Until Public Fin'l Disclosure ---------------------------------------------------------------- Picnic Corporation Pcl had already submitted its audited financial statements for the period ending December 31, 2006, to the Stock Exchange of Thailand, but the company did not disclose its report to the public via the SET's Electronic Listed Companies Information Disclosure system. As a result, the SET has posted the "H" -- Halt -- sign on Picnic Corp's securities effective on the first trading session of Feb. 28, 2007, until the company's financial report has been disseminated to the public. About Picnic Corporation PCL Headquartered in Bangkok, Thailand, Picnic Corporation Public Company Limited -- http://www.picniccorp.com/-- is engaged in liquefied petroleum gas trading business under "Picnic Gas" trademark transferred from Union Gas and Chemicals Company Ltd. Picnic's financial troubles began in 2005 when its two major shareholders and former executives, Supaporn and Theeratchanon Lapvisuthisin, were charged with accounting fraud and dishonest management. Troubles add up as the company took over B Grimm Engineering Plc, a company that had languished in the Stock Exchange of Thailand's rehabilitation sector since the financial crisis. Going Concern Doubt After auditing the company's financial statement for the third quarter ended September 30, 2006, Somchai Kurujitkosol of S.K. Accountant Services Co Ltd, raised substantial doubt on Picnic Corp's ability to continue as a going concern. Mr. Somchai specifically pointed at the company's strained liquidity status, where current liability exceeds current assets by THB1.6 million. Mr. Somchai added that Picnic Corp's ability to continue its operations is dependent on its ability to negotiate its debt restructuring and share capital increment. The auditor also added that the ability of the company to collect debt is significant in the company's capability to continue operations. SIAM CITY: Appoints New Director and Executive Director ------------------------------------------------------- In a regulatory filing with the Stock Exchange of Thailand on Mar. 1, 2007, Siam City Bank PCL disclosed that it has appointed Chaiwat Utaiwan as its new Director & Executive Director. The notice states that Mr. Chaiwat's appointment is effective on April 2. About Siam City Bank PCL Siam City Bank Public Company Limited -- http://www.scib.co.th/ -- principal activity is the provision of commercial banking services, which includes deposits, payments, credit cards, consumer loans and e banking. Other activities include real estate development, computer consultancy and provision of capital market services. Operations are carried out primarily in Thailand. On October 19, 2006, Fitch assigned these ratings to Siam City Bank: * Long-term foreign currency Issuer Default rating of 'BB'; * Short-term foreign currency rating of 'B'; * National long-term rating of 'A-(tha)'; and * National Short-term rating of 'F1(tha)'. The Outlook on the ratings is Stable. Fitch has also upgraded the bank's Individual rating to 'D' from 'D/E' and affirmed its Support rating at '4'. The bank also currently carries Moody's Bank financial strength rating of D. TRUE CORP: Posts THB4.18-Billion Net Loss in FY 2006 ---------------------------------------------------- True Corp. reported a worse-than-expected THB4.18-billion (THB1.36 per share) net loss in 2006 due to rising operating expenses and higher interest costs, The Bangkok Post reports. The report says that True Corp. incurred a net loss of THB2.26 billion in the fourth quarter of 2006, almost the same as the net loss incurred in the same period in 2005. The Post states that the company's revenues last year rose 18% to THB51.9 billion from the figure recorded in 2005, due to a consolidation of its cable television business, TrueVisions (formerly UBC), and stronger contributions from True Move and broadband Internet. According to the report, True Corp Chief Executive Officer Supachai Chearavanont said that the company's total subscribers, which increased 33% to more than 11 million, will grow significantly in 2007. The Post says that True Corp. aims to win a third of the 4 million new mobile-phone subscribers expected this year, and the company expects its broadband Internet unit to have about 700,000 new subscribers, along with an additional 600,000 to its already 1 million pay-television subscribers. The company's operating expenses increased nearly 20% to THB52 billion due to high network expansion costs, while service costs rose 24% and interest expenses jumped to 32%, The Post adds. About True Corp. PCL True Corporation Public Company Ltd, formerly called TelecomAsia, is headquartered in Bangkok, Thailand, and is an integrated provider of fixed line, broadband, internet, mobile services and lately cable TV -- via the UBC acquisition -- in that country. The Troubled Company Reporter - Asia Pacific reported on Nov. 27, 2006, that Moody's Investors Service affirmed True Corp. PCL's Ba3 corporate family rating and at the same time changed the rating outlook to negative from stable. The TCR-AP reported on Nov. 21, 2006, that Standard & Poor's Ratings Services lowered its corporate credit rating on True Corp. Public Co. Ltd. to 'BB-' from 'BB'. The outlook is negative. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------- ------ ------ ------------ AUSTRALIA Hutchison Telecommunications (Aust) Ltd. HTA 1696.65 -786.31 Indophil Resources NL IRN 37.79 -69.96 Intellect Holdings Limited IHG 15.01 -0.83 KH Foods Ltd KHF 62.30 -1.71 Lafayette Mining Limited LAF 78.17 -127.82 Life Therapeutics Limited LFE 59.00 -0.38 Stadium Australia Group SAX 135.23 -41.84 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Chang Ling Group 561 77.48 -76.83 Chengdu Book Digital Co. Ltd. 600083 21.50 -3.07 China Liaoning International Cooperation Holdings Ltd. 638 20.12 -42.96 China Kejian Co. Ltd. 35 54.71 -179.23 Datasys Technology Holdings Ltd 8057 14.1 -2.07 Dynamic Global Holdings Ltd. 231 39.43 -2.21 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Guangdong Kelon Electrical Holdings Co Ltd 921 685.74 -96.88 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangxia (Yinchuan) Industry Co. Ltd. 557 62.19 -115.50 Hans Energy Company Limited 554 94.75 -10.76 Hualing Holdings Limited 382 242.26 -28.15 Huda Technology & Education Development Co. Ltd. 600892 17.29 -0.19 Hunan Genuine Material Co., Ltd. 156 77.57 -77.92 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Hunan Hengyang 600762 68.45 -7.20 Innovo Leisure Recreation Holdings Ltd. 703 13.37 -3.89 Jiamusi Paper Co. Ltd. 699 109.07 -86.57 Junefield Department Store Group Limited 758 16.80 -6.34 Loulan Holdings Limited 8039 13.01 -1.04 New World Mobile Holdings Ltd 862 295.66 -12.53 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd. 1013 18.52 -3.34 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenzhen Dawncom Business Tech and Service Co., Ltd 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co., Ltd. 34 95.27 -44.65 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xinjiang Hops Co. Ltd 600090 86.63 -11.26 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 Zhejiang Haina Science & Tech Co., Ltd. 925 21.43 -33.33 INDIA Andhra Cement Ltd. ANDC 58.94 -13.48 ATV Projects India Ltd. ATV 68.25 -30.17 Bagalkot Udyog Ltd. BUL 20.55 -0.63 Baroda Rayon Corp. Ltd. BR 41.16 -26.62 Birla VXL Ltd. NVXL 98.77 -14.62 Core Healthcare Ltd. CPAR 214.36 -199.02 Deccan Aviation Pte. Ltd. DECA 86.94 -2.83 Fairfield Atlas Ltd. ATG 20.03 -0.15 GKW Ltd. GKW 35.75 -13.52 Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.01 Himachal Futuris HMFC 574.62 -38.68 HMT Ltd. HMT 238.05 -288.85 IFCI Ltd. IFCI 2566.01 -727.71 JCT Electronics Ltd. JCTE 118.28 -165.74 Jenson and Nicholson (India) Ltd. JN 15.41 -77.32 Kinetic Engineering Ltd. KNEL 72.82 -5.40 Kothari Sugars and Chemicals Ltd. NKTSG 43.24 -29.24 Lloyds Steel Industries Ltd. LYDS 380.94 -69.93 LML Ltd. LML 81.21 -11.89 Mafatlal Ind. MFI 110.62 -74.82 Malanpur Steel Ltd. HDC 82.08 -52.01 Modern Threads MRT 78.18 -20.71 Mysore Cements Ltd. MYC 82.02 -14.57 Mysore Kirloskar Ltd. MK 23.71 -3.04 Phil Corporation Ltd. NPPI 22.13 -4.96 RPG Cables Ltd. NRPG 51.43 -20.19 Saurashtra Cement Ltd. SRC 112.31 4.57 Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38 Shyam Telecom NSHY 147.34 -22.80 Singer India Ltd. SING 12.32 -6.69 SIV Ind. Ltd. NSIV 101.16 -66.27 SpiceJet Ltd. SJET 121.34 -2.75 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21 Hotel Sahid Jaya SHID 71.05 -4.26 Mulialand Tbk MLND 141.33 -45.99 Steady Safe SAFE 19.65 -2.43 Toba Pulp Lestrari Tbk INRU 403.58 -198.86 Unitex Tbk UNTX 29.08 -5.87 Wicaksana Overseas International Tbk WICO 43.09 -46.36 Sekar Bumi Tbk SKBM 23.07 -41.95 Suba Indah Tbk SUBA 85.17 -9.18 JAPAN Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Yakinikuya Sakai Co., Ltd. 7622 79.34 -11.20 MALAYSIA Antah Holdings Bhd ANT 184.60 -98.30 Ark Resources ARK 25.91 -28.35 Cygal Bhd CYG 58.47 -69.79 Mentiga Corporation Berhad MENT 22.13 -18.25 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 222.58 -136.17 Olympia Industries Bhd OLYM 272.49 -281.44 Pan Malay Industries PMRI 199.08 -6.30 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Setegap Berhad STG 19.92 -26.88 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Filsyn Corporation FYN 19.20 -8.83 Gotesco Land, Inc. GO 17.34 -9.59 Prime Orion Philippines Inc. POPI 98.36 -74.34 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 SINGAPORE China Aviation Oil (Singapore) Corporation CAO 211.96 -390.07 Compact Metal Industries Ltd. CMI 54.36 -25.64 Falmac Limited FAL 10.90 -0.73 Informatics Holdings Ltd INFO 22.30 -9.14 Liang Huat Aluminium Ltd. LHA 19.30 -76.43 Lindeteves-Jacoberg Limited LJ 225.52 -53.23 Pacific Century Regional PAC 1381.26 -107.11 See Hup Seng Ltd. SHS 17.36 -0.09 SOUTH KOREA BHK Inc 3990 24.36 -17.38 C & C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 Cheil Entech Co. Ltd. 53330 37.25 -0.31 DaeyuVesper Co. Ltd. 41140 19.06 -1.60 Everex Inc. 47600 23.15 -5.10 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Tong Yang Major 1520 2332.81 -86.95 TriGem Computer Inc 14900 629.32 -292.96 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 ********* 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 ***