/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070308.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, March 8, 2007, Vol. 10, No. 48 Headlines A U S T R A L I A ADVANCED MARKETING: Court Approves Wells Fargo DIP Loan ADVANCED MARKETING: Court Allows Hiring of Capstone as Advisors AGCO CORP: Posts US$128.1-Mln. Net Loss in Quarter Ended Dec. 31 CONSTELLATION BRANDS: Share Repurchase Cues Moody's Neg. Outlook CONSTELLATION BRANDS: Share Repurchase Cues S&P to Cut Ratings CONSTELLATION BRANDS: Fitch Shaves Issuer Default Rating to BB- ETC ELECTRONIC: Will Declare Final Dividend on March 27 ETC HOLDINGS: Creditors Must Prove Debts by March 20 ISECURE PTY: To Declare Final Dividend on March 27 ITRON INC: Earns US$33.8 Million in Year Ended December 31 ITRON INC: Makes US$235 Million Private Placement of Equity KOPPERS HOLDINGS: Dec. 31 Balance Sheet Upside-Down by US$92.4M NORTHERN BRICK: Enters Voluntary Wind-Up RONEC HOLDINGS: Members and Creditors Set to Meet on March 30 S.S. CONTAINER: Members and Creditors to Meet on March 30 SECURENET AUSTRALIA: Will Declare Final Dividend on March 27 SOUTHBANK MARKETING: Members Decide to Shut Down Business TECHNOVA PTY: Members & Creditors' Meeting Set for March 30 UNITED NETWORKS: Members and Creditors to Hear Wind-Up Report WATKINS GROUP: Liquidators to Present Wind-Up Report C H I N A & H O N G K O N G ANDI (HONG KONG): Liquidator Quits Post AUXMAN INVESTMENT: Ha Yue Fuen, Henry Resigns as Liquidator BANK OF COMMUNICATIONS: Analysts Expect 43% Profit Rise in 2006 BANK OF COMMUNICATIONS: HSBC In Talks to Maintain 19.9% Stake CHINA MERCHANTS: Head Says Net Profit Up to 50% CLASSIC FINE: Members to Receive Wind-Up Report MITTOLAND LIMITED: Commences Liquidation Proceedings ORIENT EXPRESS: Members' Final General Meeting Set for April 3 HUA CHIAO: Members' Meeting Slated for April 2 KUNQU SOCIETY: Members' Final Meeting Slated for April 18 PROFESSIONAL HAN: Final Meeting Slated for April 18 TCL CORP: Expects to Record Profit in 2007 UNIVERSAL ALUMINIUM: Members & Creditors Set to Meet on April 4 I N D I A AES CORP: Appoints Andres Gluski As Executive Vice President BHARTI AIRTEL: Bids for Saudi Arabia's Mobile License CANARA BANK: Sets Up Life Insurance JV with HSBC & Oriental Bank CANARA BANK: Government Appoints Vani J. Sharma to Director Post EMCO LTD: 4th Quarter 2006 Net Profit Rises 64% to INR99 Million EMCO LTD: To Declare Interim Dividend for FY 2006-07 HDFC BANK: To Allot 2,73,300 Equity Shares Under ESOS ROYAL & SUN: Completes Disposal of U.S. Businesses to Arrowpoint I N D O N E S I A ALCATEL-LUCENT: European Group Committee Meeting Set on March 16 ALCATEL-LUCENT: Inks Multi-Year Pact with University in Sydney ANEKA TAMBANG: 2006 Unaudited Net Profit Up 85% to US$173 Mil. COMVERSE TECH: Launches Zero Yield Puttable Securities Offering GARUDA INDONESIA: Jet Crashes on Landing in Yogyakarta GENERAL NUTRITION: Consent Deadline on Senior Notes Expires TELKOMSEL: Adds Two Million New Subscribers this Year J A P A N FORD MOTOR: Signs Deal Selling APCO to Trident IV GAP INC: Earns US$219 Million for Period Ended February 3 NIKKO CORDIAL: S&P Puts Group Companies' Ratings on CreditWatch NIKKO CORDIAL: Fitch Revises Rating Watch To Evolving NIKKO CORDIAL: Moody's To Review Issuer Ratings for Upgrade TENNECO INC: Moody's Rates US$830 Million Loans at Ba1 TENNECO INC: S&P Rates Planned US$830 Mil. Bank Facilities at BB TENNECO INC: Timothy Donovan Resigns as Executive Vice-President K O R E A ACTUANT CORP: Inks Third Amendment to JP Morgan Credit Agreement ARAMARK CORP: Subsidiary Inks Beverage Service Deal with NetJets BIOVEST INT'L: Dec. 31 Balance Sheet Upside Down by US$14 Mil. CURON INC: Amends KRW2.37-Billion Contract with Ubistar CURON INC: Names Kim Seh Il as New CEO CURON INC: Completes 12.5-Mil. Rights Issue DURA AUTOMOTIVE: Wants Exclusive Plan-Filing Period Extended MIJU STEEL: Establishes Overseas Subsidiary in Hong Kong WOORI BANK: Group Chairman to Focus on Privatization WOORI BANK: Regularizes 3,000 Contract Workers M A L A Y S I A CRIMSON LAND: Incurs MYR1.77-Mil. Net Loss in Qtr Ended Dec. '06 CYGAL BERHAD: Incurs MYR9.72-Million Net Loss in 4th Quarter '06 EKRAN BERHAD: Asks for Further Extension of Plan Filing Deadline EKRAN BERHAD: Updates on Default Status as of February 2007 FA PENINSULAR: Dec. 31 Balance Sheet Upside Down by MYR6.22 Mil. FCW HOLDINGS: Gains MYR2.32 Mil. in 2nd Quarter Ended Dec. 31 FEDERAL FURNITURE: Shareholders' Deficit at MYR17.67M in Dec. 31 FOREMOST HOLDINGS: Discloses Proposals Under Regularization Plan HALIFAX CAPITAL: Affin Bank Quits Post as Restructuring Adviser SATERAS RESOURCES: Bursa to Delist Securities on March 21 N E W Z E A L A N D AIR NEW ZEALAND: Reaches Agreement with EPMU; SFWU Rejects Deal AIR NEW ZEALAND: Gov't. Should Sell Stake, Aviation Report Says ARIKI PROPERTIES: Court to Hear Wind-Up Petition on April 19 CLEAR CHANNEL: Urges Shareholders to Vote for Proposed Merger DOUG TAYLOR: Faces Liquidation Petition EFL(NEW ZEALAND): Wind-Up Hearing Set on March 15 GENTRY RESIDENTIAL: Names Blanchett and Fatupaito as Liquidators MARKDOWN MARINE: CIR Wants to Liquidate Company MAYFIELD ENTERPRISES: CIR Wants to Liquidate Company NEROBBY HOLDINGS: CIR Seeks to Liquidate Company PLUS SMS: CRE8 Acquires Multiecast Limitada PULZAR SOUND: Court to Hear Wind-Up Petition on March 12 SPACE INTERACTION: Wind-Up Petition Hearing Slated for March 15 STONEDON TRUSTEE: Faces Liquidation Proceedings P H I L I P P I N E S CHIQUITA BRANDS: Delays Annual Report Filing CHIQUITA BRANDS: Unit Rejects 3K Boxes of Coosemupar Bananas GEOGRACE RESOURCES: To Issue 1:3.5 Stock Rights RIZAL COMMERCIAL BANKING: SEC Approves Increase in Capital PHIL. LONG DISTANCE: 2006 Net Income Rises to PHP35.32 Billion S I N G A P O R E ADVANCED MICRO: May Not Meet First Quarter 2007 Revenue Target PETROLEO BRASILEIRO: To Hold Shareholders Meetings on April 2 SHIP FINANCE: Earns US$180.8 Million for Full Year 2006 SPECTRUM BRANDS: To Hold Annual Shareholders' Meeting on Apr. 25 T H A I L A N D DAIMLERCHRYSLER AG: Blackstone is Lead Contender for U.S. Unit FEDERAL-MOGUL: Ernst & Young Raises Going Concern Doubt ITV PCL: Goes Off The Air As Government Gears for Take-Over TRUE MOVE: Expects to Break Even in 2007 - - - - - - - - ================= A U S T R A L I A ================= ADVANCED MARKETING: Court Approves Wells Fargo DIP Loan ------------------------------------------------------- Judge Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware has granted authority to Advanced Marketing Services Inc. and its debtor-affiliates, on a final basis, to dip their hands into the DIP financing facility arranged by Wells Fargo Foothill Inc. The Court also authorized and empowered Debtors to immediately obtain the Postpetition Financing and incur the Obligations pursuant to the terms and conditions of the final DIP ruling and the Loan Documents. The Debtors are also authorized to enter into, execute, deliver, perform, and comply with all of the terms and covenants of the Loan Agreement and other Loan Documents, Judge Sontchi notes. As reported in the Troubled Company Reporter on Jan. 10, 2007, The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware, at a hearing on Jan. 3, 2007, authorized Advanced Marketing Services Inc., and its debtor- affiliates, on an interim basis, to dip their hands into the DIP financing facility arranged by Wells Fargo Foothill. The Debtors sought the Court's authority to obtain from Foothill and the Senior Lenders, though the DIP Loan Facility, cash advances and other extensions of credit in an aggregate principal amount of up to US$75,000,000. The DIP Facility provides, among other things, that each Lender with a Revolver Commitment agrees to make Advances to the Debtors at any one time in amounts not exceeding the Lender's Pro Rata Share of an amount equal to the lesser of (i) the Maximum Revolver Amount -- presently set at US$75,000,000 -- less the Letter of Credit Usage, or (ii) the Borrowing Base less the Letter of Credit Usage. Lender Revolver Commitment ------ ------------------- Wells Fargo Foothill, Inc. US$37,500,000 LaSalle Business Credit, LLC US$16,500,000 Marathon Structured Finance Fund, L.P. US$8,250,000 Capitalsource Finance LLC US$12,750,000 A full-text copy of the Final DIP Ruling is available for free at http://researcharchives.com/t/s?1a2e Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom, and Australia, and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a Chapter 11 Plan will expire on Apr. 28, 2007. ADVANCED MARKETING: Court Allows Hiring of Capstone as Advisors --------------------------------------------------------------- The Hon. Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware approved Advanced Marketing Services Inc. and its debtor-affiliates' application to employ Capstone Advisory Group LLC as their financial advisors in their Chapter 11 cases. Capstone will be entitled to allowance of compensation and reimbursement of expenses, upon the filing and Court approval of monthly, interim, and final applications, Judge Sontchi says. Judge Sontchi notes that the consideration of the "Success Fee" is continued until that time as Capstone seeks Court approval and provides notice to interested parties for it. The rights of all parties with respect to any application are hereby reserved. The Debtors will have no obligation to indemnify Capstone, or to provide contribution or reimbursement to Capstone, for any claim or expense that is judicially determined -- the determination having become final -- to have arisen from Capstone's gross negligence, willful misconduct or bad faith, Judge Sontchi says. The Debtors formerly asked the Court for permission to employ Capstone Advisory Group LLC as their financial advisors in their chapter 11 cases. Specifically, the Debtors will look to Capstone to: (a) analyze and challenge the Debtors' short-term and long- term cash flow forecasts; (b) assist management, as appropriate, in developing corresponding liquidity analysis; (c) analyze the Debtors' business plan and any alternative business plans suggested by the Debtors; (d) assist the Debtors and their advisors in identifying and evaluating strategic financial and restructuring alternatives; (e) support or assist investment banks of the Debtors in their efforts to sell or restructure the business entity; (f) act as a liaison between the Debtors and their investment bankers; (g) assist in providing data and information requested by Houlihan, Lokey, Howard & Zukin Capital Inc., in its efforts to market and refinance the Debtors; (h) assist Houlihan Lokey in its efforts to market or refinance the Debtors; (i) assist Houlihan, Lokey in identifying and executing an alternative transaction that best meets the objectives of the Debtors' and their estates; and (j) perform other tasks as may be requested by the Debtors from time to time. Mark D. Collins, Esq., at Richards, Layton & Finger, PA, in Wilmington, Delaware, related that Capstone specializes in providing creative value-added solutions for stakeholders, lenders and investors dealing with distressed and fraud situations; for parties in commercial disputes; and for lenders and investors evaluating capital transactions. Capstone has provided services to the Debtors since May 2006. At that time, Capstone was hired, through the Debtors' counsel, O'Melveny & Myers LLP, to review the Debtors' short-term and long-term financial forecasts, and assist the Debtors in identifying and evaluating restructuring alternatives. The Debtors also previously sought to employ Focus Management Group U.S.A. Inc. as their financial advisors in a request approved by the Court. Mr. Collins said that Focus was retained prior to Capstone and Focus' familiarity with the Debtors' books, records, and financial reporting has aided Capstone's provision of financial analysis and advisory services. Furthermore, the Debtors, Focus, and Capstone have conferred and will continue to do so to ensure there is no duplication of effort or overlap of work between and among Focus and Capstone in order to ensure that the Debtors estates receive their maximum value. "Focus will be working on a number of projects either in conjunction with Capstone or under the supervision of Capstone," Mr. Collins says. The Debtors will pay Capstone hourly rates on actual hours worked at Capstone's standard hourly rates in effect when the services are rendered. Capstone's hourly rates are: Designation Hourly Rate ----------- ----------- Executive Directors US$505 - US$595 Staff US$275 - US$475 Support US$90 - US$200 The Capstone employees that are expected to be directly responsible for the engagement and their hourly rates are: * Mark Rohman, Capstone Executive Director -- US$595 * Monique Atkins -- US$450 Mr. Collins noted that there will be a fee awarded to Capstone upon the completion of a successful sale or refinancing of the Debtors, equal to 30% of any transaction fee or financing fee paid by the Debtors to Houlihan Lokey. In addition, Mr. Collins stated that Capstone will be reimbursed for all reasonably incurred out-of-pocket expenses in connection with the rendering of services. These include travel, lodging, costs of reproduction, reasonable out-of-pocket counsel fees, and other direct expenses. The Debtors will also indemnify Capstone for its services. Mr. Rohman assured the Court that Capstone and its partners and associates do not have any connection with or any adverse interest to the Debtors, their creditors, or any other parties- in-interest. If, before the earlier of (a) a final order confirming a Chapter 11 plan in the Debtors' bankruptcy cases, or (b) an order closing the Debtors' Chapter 11 cases, Capstone believes that it is entitled to the payment of any amounts by the Debtors on account of the Debtors' indemnification, contribution, and reimbursement obligations under its employment agreement with the Debtors, Capstone must file an application with the Court and the Debtors may not pay any of those amounts before any Court ruling approving the payment. Upon Court approval, the Debtors may indemnify Capstone, pursuant to the terms of the Employment Agreement as amended in the Debtors' employment application, for any claim related to Capstone's performance of the services described in the Employment Agreement. Judge Sontchi further ruled that upon Court approval and in accordance with the Employment Agreement as amended in the Employment Application, the Debtors may indemnify and hold harmless Capstone for any claim related to the consulting services, but not for any claim related to Capstone's postpetition performance of any services other than described in the Employment Agreement unless the postpetition services and indemnification are approved by the Court. About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom, and Australia, and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a Chapter 11 Plan will expire on Apr. 28, 2007. AGCO CORP: Posts US$128.1-Mln. Net Loss in Quarter Ended Dec. 31 ---------------------------------------------------------------- Agco Corp. reported results for its fourth quarter and year ended Dec. 31, 2006. The company reported a net loss of US$128.1 million for the fourth quarter of 2006. The fourth quarter 2006 results reflected a non-cash goodwill impairment charge of US$171.4 million associated with the company's Sprayer business. Adjusted net income, which excluded restructuring and other infrequent expenses and the non-cash goodwill impairment charge, was US$38.8 million for the fourth quarter of 2006. AGCO reported a net loss of US$63.8 million and adjusted net income of US$26.9 million for the fourth quarter of 2005. Net sales for the fourth quarter of 2006 were US$1.6 billion, an increase of 18% compared to US$1,384.9 million of the same period in 2005. The company reported a net loss of US$64.9 million for the full year. Adjusted net income, which excludes restructuring and other infrequent expenses and the non-cash goodwill impairment charge, was US$102.7 million for the full year of 2006. Net income for the full year of 2005 was US$31.6 million. Adjusted net income, which excludes restructuring and other infrequent income, costs associated with a June 2005 bond redemption, and a non-cash deferred income tax adjustment, was US$31.6 million for the full year of 2005. Net sales for the full year of 2006 were US$5.4 billion, which were slightly below the prior year. Excluding the impact of currency translation, AGCO's net sales increased 11.1% during the fourth quarter and decreased 2.4% for the full year of 2006 compared to the same periods in 2005. In the fourth quarter of 2006, net sales increased in the South America and Europe/Africa/Middle East regions, partially offset by sales declines in the North America and Asia/Pacific regions. For the full year of 2006, net sales declined in the North America, South America and Asia/Pacific regions, partially offset by sales increases in the Europe/Africa/Middle East region. The European sales growth was led by strong results in Germany and Eastern Europe where market conditions improved in 2006. Net sales in North America in 2006 were significantly lower compared to 2005 primarily due to weaker market conditions and lower deliveries to dealers, resulting in a reduction in dealer inventory levels. In the South America and Asia/Pacific regions, weaker market conditions contributed to the sales decline. Adjusted income from operations increased $28.1 million for the fourth quarter of 2006 compared to the same period in 2005 primarily due to increased sales achieved in the quarter. For the full year of 2006, adjusted income from operations decreased US$33.4 million compared to 2005 resulting from sales declines and lower production levels. Unit production of tractors and combines for the full year of 2006 was 9% below 2005. "AGCO delivered record free cash flow in 2006," Martin Richenhagen, Chairman, President and Chief Executive Officer, stated. "The company's working capital focus throughout the year resulted in free cash flow of over $300 million and enabled it to further strengthen its balance sheet. During 2006, AGCO reduced its net debt to capital ratio from 30% to 20% and lowered its net debt by US$244 million. Working capital management will continue to be a major focus in 2007." As disclosed in AGCO's third quarter 2006 Form 10-Q, the company performed its annual impairment testing of goodwill and other intangible assets in accordance with SFAS No. 142 during the fourth quarter. As a result of this analysis, the company determined that the total carrying amount of goodwill associated with its Sprayer business should be written off, and, therefore, the company recorded a non-cash goodwill impairment charge of US$171.4 million during the fourth quarter. The company remained committed to its Sprayer business and has strategies in place to strengthen the Sprayer distribution network, enhance the product line and improve future operating results. At Dec. 31, 2006, AGCO Corp.'s balance sheet showed US$4.114 billion in total assets and US$2.620 billion in total liabilities, with US$1.5 billion in total stockholders' equity. About Agco Corp. Headquartered in Duluth, Georgia, Agco Corp. -- http://www.agcocorp.com/-- is a global manufacturer of agricultural equipment and related replacement parts. Agco offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,600 independent dealers and distributors in more than 140 countries worldwide, including Brazil. AGCO products include the following brands: AGCO(R), Challenger(R), Fendt(R), Gleaner(R), Hesston(R), Massey Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R), Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM) Planters. AGCO provides retail financing through AGCO Finance. The company had net sales of US$5.4 billion in 2005. The company has its Asia Pacific headquarters in Australia. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Automotive and Equipment sector, the rating agency confirmed its Ba2 Corporate Family Rating for AGCO Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 1.750% Conv. Sr. Sub. Notes due 2033 B1 B1 LGD5 89% 6.875% Sr. Sub. Notes due 2014 B1 B1 LGD5 89% Sr. Unsec. Shelf Ba3 Ba3 LGD5 81% CONSTELLATION BRANDS: Share Repurchase Cues Moody's Neg. Outlook ---------------------------------------------------------------- Moody's lowered Constellation Brand's corporate family rating to Ba3 from Ba2 and affirmed its SGL-2 after the company reported a new US$500 million share repurchase program. The outlook was changed to stable from negative. Ratings lowered: * Corporate Family Rating to Ba3 from Ba2 * Senior notes and senior secured bank facility to Ba3, LGD4, 50% from Ba2, LGD3, 49% * Senior sub notes to B2, LGD6, 96% from B1, LGD6, 95% * Probability of default rating to Ba3 from Ba2 The company's Speculative Grade Liquidity rating was affirmed at SGL-2. The downgrade was prompted by the higher leverage that will result from the debt-funded share buyback as well as Moody's view that the buyback represents a shift to a more aggressive financial policy. The buyback announcement follows the February announcement of the acquisition of Svedka vodka for US$384 million and follows on the heels of a string of other, larger acquisitions, the most recent of which, Vincor, closed less than one year ago. Although the company has historically demonstrated an ability to quickly integrate acquisitions, repay debt and restore credit metrics, leverage improvement following the last acquisition has been delayed due to a restructuring plan announced in the fall and the swiftness of the subsequent acquisition and buyback plan. Moody's had maintained a negative outlook in the wake of the last acquisitions citing that there was little room at the current rating level for additional leverage. The negative outlook reflected continued concern about Constellation's aggressive financial policy and acquisition strategy, integration risk, and the resulting pressures on its financial and business profile. Using Moody's alcoholic beverage methodology grid, most of the company's financial ratios will be in the B range after the share repurchase, while most of the qualitative measures remain in the Baa range. Following the downgrade, the rating outlook is stable reflecting the company's solid business franchise, good product and geographic diversity, strong margins and the expectation that cash flow generation will continue to be solid as well as the view that the company's current leverage can be tolerated at this rating level. Further rating downgrade is unlikely absent severe operation performance deterioration, a very large increase in debt or an exogenous event. Debt to Ebitda exceeding 6 times could lead to a downgrade. An upgrade could result if the company sustains strong operating performance over the medium term and management shows a commitment to permanently reduce leverage levels such that Debt to Ebitda is sustained below 5x and Ebit to Interest remains above 3x, per Moody's definitions. Constellation Brands, Inc. (NYSE:STZ, ASX:CBR), -- http://www.cbrands.com/-- is an international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Well- known brands in Constellation's portfolio include: Almaden, Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Goundrey, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi Private Selection, Rex Goliath, Toasted Head, Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin, Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve 1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl, Tsingtao. The company has operations in Australia, Japan and New Zealand CONSTELLATION BRANDS: Share Repurchase Cues S&P to Cut Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Fairport, New York-based Constellation Brands Inc., including its corporate credit and bank loan ratings to 'BB-' from 'BB'. The outlook is stable. "The rating actions follow Constellation Brands' announcement that the company's Board of Directors has authorized the repurchase of up to $500 million of its common stock, and reflects our opinion that the company will continue to maintain a highly leveraged capital structure over the near to intermediate term," said Standard & Poor's credit analyst Mark Salierno. Constellation Brands, Inc. (NYSE:STZ, ASX:CBR), -- http://www.cbrands.com/-- is an international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Well- known brands in Constellation's portfolio include: Almaden, Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Goundrey, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi Private Selection, Rex Goliath, Toasted Head, Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin, Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve 1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl, Tsingtao. The company has operations in Australia, Japan and New Zealand CONSTELLATION BRANDS: Fitch Shaves Issuer Default Rating to BB- --------------------------------------------------------------- Fitch Ratings has downgraded its ratings on Constellation Brands Inc. (STZ): -- Issuer Default Rating to 'BB-' from 'BB'; -- Bank credit facility to 'BB-' from 'BB'; -- Senior unsecured notes to 'BB-' from 'BB'; -- Senior subordinated notes to 'B+' from 'BB-'. The Rating Outlook has been revised to Negative. Fitch's ratings apply to STZ's US$3.9 billion credit facilities, US$1.2 billion of senior unsecured debt, and US$250 million of senior subordinated notes. The downgrade and Outlook revision reflect STZ's disclosure that a US$500 million share repurchase program has been authorized on top of the pending SVEDKA acquisition. The company's debt levels are expected to be meaningfully higher in fiscal 2008 ending Feb. 29, 2008, than originally anticipated, even considering the Vincor acquisition, and demonstrate management's willingness to operate at higher leverage levels. In addition, ongoing difficulties in its U.K. operations and plans to reduce U.S. distributor inventory levels in 2008 will affect cash flow in fiscal 2008, limiting any improvement in credit measures despite a full-year contribution from Vincor. The company completed the acquisition of Vincor on June 5, 2006 for US$1.4 billion following major acquisitions of BRL Hardy Ltd. for US$1.2 billion in 2003 and Robert Mondavi Corp. for US$1.4 billion in 2004. Since December 2004, STZ has also made many niche acquisitions including minority positions. These acquisitions have provided STZ with leading market positions and a broad portfolio of wine, spirits and beer in diversified global markets. Over the intermediate term, it is likely that the company will continue to make acquisitions that could result in financial and operational stress. Leverage has increased as a result of successive acquisitions financed primarily with debt, with a significant increase in interest expense. STZ has an excellent track record of integrating such acquisitions. The company had applied cash flow to reduce debt, support capital spending, and restructure acquired operations to enhance productivity and was able to sell non-essential assets. This previous pattern of reducing debt prior to taking on additional acquisitions appears to have been broken and the company may be becoming more aggressive regarding stock repurchases. Constellation Brands, Inc. (NYSE:STZ, ASX:CBR), -- http://www.cbrands.com/-- is an international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Well- known brands in Constellation's portfolio include: Almaden, Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Goundrey, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi Private Selection, Rex Goliath, Toasted Head, Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin, Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve 1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl, Tsingtao. The company has operations in Australia, Japan and New Zealand * * * Moody's Investors Service assigned a Ba2 rating to Constellation Brands, Inc.'s new US$3.5 billion secured credit facility, which replaced its US$2.9 billion secured credit facility. The US$1.3 billion incremental add-on facility, which was proposed at the time of the Vincor International Inc. acquisition announcement, was never executed and the rating has been withdrawn. Constellation's existing ratings are not affected by these actions, and have been affirmed. The ratings outlook remains negative. Ratings affirmed: * US$200 million 8.625% senior unsecured notes, due 2006, Ba2 * US$200 million 8% senior unsecured notes, due 2008, Ba2 * GBP 80 million 8.5% senior unsecured notes, due 2009, Ba2 * GBP 75 million 8.5% senior unsecured notes, due 2009, Ba2 * US$250 million 8.125% senior subordinated notes, due 2012, Ba3 * Ba2 Corporate Family Rating * The SGL-2 Speculative Grade Liquidity rating ETC ELECTRONIC: Will Declare Final Dividend on March 27 ------------------------------------------------------- ETC Electronic Trading Concepts Pty Limited will declare a final dividend on March 27, 2007. Creditors who cannot prove their debts by March 20, 2007, will be excluded in the dividend distribution. Moreover, the company will hold a final meeting for its members on April 3, 2007, at 10:30 a.m. In a report by the Troubled Company Reporter - Asia Pacific, the company commenced liquidation proceedings on Nov. 2, 2006. The company's liquidators can be reached at: Simon A. Wallace-Smith Timothy B. Norman Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About ETC Electronic Located in Victoria, Australia, ETC Electronic Trading Concepts Pty Limited provides business services. ETC HOLDINGS: Creditors Must Prove Debts by March 20 ---------------------------------------------------- ETC Holdings Pty Limited requires its creditors to prove their debts by March 20, 2007. Creditors who cannot prove their debts by the due date will be excluded in the company's declaration of dividend on March 27, 2007. The company's members will also hold a final meeting on April 3, 2007, at 10:30 a.m. to receive the company's wind-up report and property disposal. The company entered wind-up proceedings on Nov. 2, 2006, as reported by the Troubled Company Reporter - Asia Pacific. The company's liquidators can be reached at: Simon A. Wallace-Smith Timothy B. Norman Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About ETC Holdings Located in New South Wales, Australia, ETC Holdings Pty Limited is a distributor of durable goods. ISECURE PTY: To Declare Final Dividend on March 27 -------------------------------------------------- A final dividend will be declared for the creditors of Isecure Pty Ltd on March 27, 2007. Accordingly, creditors must prove their debts by March 20, 2007, to be included in the company's distribution of dividend. Moreover, the company's members will meet on April 3, 2007, at 10:30 a.m., for their final meeting. According to the Troubled Company Reporter - Asia Pacific, the company was placed under voluntary wind-up on Nov. 2, 2006. The company's liquidators can be reached at: Simon A. Wallace-Smith Timothy B. Norman Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About Isecure Pty Headquartered in ACT, Australia, Isecure Pty Ltd provides security systems services. ITRON INC: Earns US$33.8 Million in Year Ended December 31 ---------------------------------------------------------- Itron Inc. reported net earnings of US$33.8 million on total revenues of US$644 million for the year ended Dec. 31, 2006, compared with net earnings of US$33.1 million on total revenues of US$552.7 million a year ago. Sales revenues increased US$90.7 million in 2006, compared with 2005, as a result of increased sales of electricity meters, automated meter reading gas modules and installation services. Service revenues, consisting of post-sale maintenance support and outsourcing revenues, increased slightly in 2006, compared with 2005. One customer, Progress Energy, represented 16% of total revenues for the year ended Dec. 31, 2006. No single customer represented more than 10% of total revenues for 2005. Sales gross margin was US$244.8 million in 2006, compared to US$211.8 million in 2005. As a percentage of revenue, this was slightly lower compared with 2005, due to a shift in product mix, including a higher portion of installation services. Service gross margin was US$22.7 million in 2006, compared with US$21.8 million in 2005. Operating expenses increased to US$205.7 million in 2006, from US$187.4 million in 2005. The increase in total operating expenses is mainly due to approximately US$8.3 million associated with the company's adoption of SFAS 123(R), which requires expensing of stock-based compensation, and the US$11.7 million increase in product development expenses, mainly due to the development of the company's advanced metering infrastructure (AMI) solution. Total other expense was US$9.5 million in 2006, compared to US$18.7 million in 2005. The decrease in other expense was mainly due to the increase in interest income to US$9.5 million in 2006, from interest income of US$302,000 in 2005. The company recorded income tax expenses of US$18.5 million in 2006, compared with an income tax benefit of US$5.5 million in 2005. The 2005 actual income tax rate was a benefit of 20%, which was lower than the statutory tax rate due to the benefit of research credits and the completion of a research credit study for the years 1997 through 2004, in which the company recognized a US$5.9 million net tax credit as an offset to the provision for income taxes. In addition, as part of a reorganization of the company's legal entities for operational efficiencies, the company recognized US$8 million in deferred tax assets from prior years that had been fully reserved, associated primarily with certain foreign operations. At Dec. 31, 2006, the company's balance sheet showed US$988.5 million in total assets, US$597.5 million in total liabilities, and US$391 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1ab6 Cash and Cash Equivalents At Dec. 31, 2006, the company had US$361,405 in cash and cash equivalents, compared to US$33,638 at Dec. 31, 2005. The increase in cash and cash equivalents during 2006 resulted from US$345 million of convertible notes issued in August 2006, the proceeds of which were placed in cash equivalents and short-term investments with the intent to invest in complementary businesses, products or technologies. About Itron Inc. Itron Inc., -- http://www.itron.com/-- is a technology provider and critical source of knowledge to the global energy and water industries. Nearly 3,000 utilities worldwide rely on Itron technology to provide the knowledge they require to optimize the delivery and use of energy and water. Itron creates value for its clients by providing industry-leading solutions for electricity metering; meter data collection; energy information management; demand response; load forecasting, analysis and consulting services; distribution system design and optimization; web-based workforce automation; and enterprise and residential energy management. Itron has operations in Taiwan, Australia and New Zealand. The Troubled Company Reporter - Asia Pacific reported that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency confirmed its Ba3 Corporate Family Rating for Itron Inc. The rating on the company's US$55 million Senior Secured Revolver due 2009 was revised to Baa3 from Ba3. Those debentures were assigned an LGD1 rating suggesting creditors will experience a 3% loss in the event of default. Additionally, Moody's revised its ratings on the company's US$125 million 7.875% Subordinate Notes due 2012 to Ba1 from B2. Moody's assigned those debentures an LGD2 rating suggesting a projected loss-given default of 25%. Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services assigned its 'B' rating to Itron Inc.'s US$345 million convertible senior subordinated notes due Aug. 1, 2026. At the same time, Standard & Poor's affirmed all of its other ratings, including its 'BB-' corporate credit rating, on the meter data technology provider. The notes are rated two notches below the corporate credit rating and are pari passu in terms of payment with the company's existing subordinated notes, which are also rated 'B'. Itron intends to use the proceeds for future acquisitions and/or general corporate purposes. ITRON INC: Makes US$235 Million Private Placement of Equity ----------------------------------------------------------- Itron Inc. has agreed to sell 4,086,958 shares of its common stock to ten institutional investors in a private placement at a price of US$57.50 per share, based on a 5% discount from the five-day average share closing price during the week of Feb. 12, 2007, of US$60.52. The transaction is expected to generate gross proceeds to Itron of US$235 million before fees and other offering expenses. Net proceeds will be used to partially fund the acquisition of Actaris Metering Systems. The sale will be completed on March 1, 2007, subject to customary closing conditions. The shares being sold have not been registered under the Securities Act of 1933 or any state securities laws and, until so registered, may not be offered or sold in the United States or any state absent an applicable exemption from registration requirements. This announcement does not constitute an offer to sell, nor is it a solicitation of an offer to buy, these securities. Pursuant to the terms of the securities purchase agreement with the private placement investors, the Company has agreed to register re-sales of the shares not more than 75 days from the date of closing of the Actaris acquisition. Itron Inc., -- http://www.itron.com/-- is a technology provider and critical source of knowledge to the global energy and water industries. Nearly 3,000 utilities worldwide rely on Itron technology to provide the knowledge they require to optimize the delivery and use of energy and water. Itron creates value for its clients by providing industry-leading solutions for electricity metering; meter data collection; energy information management; demand response; load forecasting, analysis and consulting services; distribution system design and optimization; web-based workforce automation; and enterprise and residential energy management. Itron has operations in Taiwan, Australia and New Zealand. The Troubled Company Reporter - Asia Pacific reported that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency confirmed its Ba3 Corporate Family Rating for Itron Inc. The rating on the company's US$55 million Senior Secured Revolver due 2009 was revised to Baa3 from Ba3. Those debentures were assigned an LGD1 rating suggesting creditors will experience a 3% loss in the event of default. Additionally, Moody's revised its ratings on the company's US$125 million 7.875% Subordinate Notes due 2012 to Ba1 from B2. Moody's assigned those debentures an LGD2 rating suggesting a projected loss-given default of 25%. Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services assigned its 'B' rating to Itron Inc.'s US$345 million convertible senior subordinated notes due Aug. 1, 2026. At the same time, Standard & Poor's affirmed all of its other ratings, including its 'BB-' corporate credit rating, on the meter data technology provider. The notes are rated two notches below the corporate credit rating and are pari passu in terms of payment with the company's existing subordinated notes, which are also rated 'B'. Itron intends to use the proceeds for future acquisitions and/or general corporate purposes. KOPPERS HOLDINGS: Dec. 31 Balance Sheet Upside-Down by US$92.4M --------------------------------------------------------------- Koppers Holdings Inc. reported net income of US$15.2 million on sales of US$1.159 billion for the year ended Dec. 31, 2006, compared with net income of US$9.9 million on sales of 1.03 billion for the year ended Dec. 31, 2005. Fiscal year sales were positively impacted by US$55.8 million of sales related to the acquisition of certain assets of Reilly Industries and increased pricing for most product lines. The increase in net income was due to higher pricing and US$5.2 million of non-conventional fuel tax credits in 2006, along with $4.6 million of pre-tax legal and restructuring charges in the prior year period, which more than offset US$25.3 million of pre-tax charges relating primarily to the Feb. 6, 2006, initial public offering, plant and benefit restructuring and the loss on sale of Alorton. Net income for the quarter ended Dec. 31, 2006, increased to US$3.8 million as compared to US$500,000 in the prior year quarter. Net income for the quarter benefited from higher chemicals pricing and synergies related to the Reilly Industries transaction. The company's sales for the fourth quarter ended Dec. 31, 2006, increased to US$282.6 million, as compared to US$262.3 million for the prior year quarter. This increase was a result of higher sales in the Carbon Materials & Chemicals segment, which increased 22%, or US$33.1 million. Commenting on the quarter and year 2006, President and CEO Walter W. Turner said, "We are very pleased with our fourth quarter and year 2006 results, which have exceeded expectations despite unforeseen conditions regarding the availability of coal tar. The fourth quarter and year 2006 results also reflect the synergies derived from the Reilly transaction. Looking ahead, we are optimistic about 2007 as we anticipate a full year of benefits from the Reilly transaction, additional sales and profit as a result of the expansion of our carbon black plant in Australia, and the beginning of construction of our new joint venture in China. We continue to benefit from strong demand within our primary end markets, aluminum and railroads, as well as our focus on enhancing cash flow and our strict adherence to safety, health and environmental regulations." At Dec. 31, 2006, the company's balance sheet showed US$649.4 million in total assets, US$729.6 million in total liabilities, and US$12.2 million in minority interest, resulting in a US$92.4 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1aab Net Cash Flows As of Dec. 31, 2006, the company had US$24.4 million of cash and cash equivalents and US$61.2 million of unused revolving credit availability for working capital purposes after restrictions by various debt covenants and certain letter of credit commitments. Net cash provided by operating activities for the year ended Dec. 31, 2006, was US$31.6 million, compared with US$58.1 million for the previous year. The decrease was due primarily to the payment of a call premium of US$10.1 million for the redemption of US$101.7 million of the Senior Secured Notes, US$1.1 million of bond consent fees, US$3 million for the buyout of the advisory services agreement with Saratoga Partners, the company's former majority equity owner, and US$2.6 million for the New Zealand Commerce Commission settlement. Net cash used in investing activities increased to US$71.2 million for the year ended Dec. 31, 2006, from net cash used in investing activities of US$28.3 million in 2005, primarily as a result of the Reilly acquisition, capital expenditures related to the Lambson Speciality Chemicals Limited acquisition in the United Kingdom, and the carbon black facility expansion in Australia. Net cash provided by financing activities was $38 million for the year ended Dec. 31, 2006, compared to net cash used in financing activities of US$44.7 million during 2005, primarily due to proceeds of US$121.8 million from the issuance of stock in the company's initial public offering. The proceeds of said IPO was used to redeem US$101.7 million of the Senior Secured Notes due 2013, to pay a related call premium of US$10.1 million, and to pay US$9.6 million of stock issuance expenses related to the offering. About Koppers Koppers Holdings Inc., (NYSE: KOP) -- http://www.koppers.com/-- with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is an integrated producer of carbon compounds and treated wood products. Including its joint ventures, Koppers operates facilities in the United States, United Kingdom, Denmark, Australia, China, the Pacific Rim and South Africa. Koppers Holdings's balance sheet at June 30, 2006, showed total assets of US$625 million and total liabilities of US$733 million resulting in a total stockholders' deficit of US$108 million. Total stockholders' deficit at Dec. 31, 2005 stood at US$206 million. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Chemicals and Allied Products sector, the rating agency confirmed its B1 Corporate Family Rating for Koppers Holding Inc. and its B3 rating on the company's US$203 million 9.875% Sr Unsec Discount Global Notes due 2014. Additionally, Moody's assigned an LGD6 rating to those bonds, suggesting noteholders will experience a 90% loss in the event of a default. NORTHERN BRICK: Enters Voluntary Wind-Up ---------------------------------------- At a general meeting held on Jan. 31, 2007, the members of Northern Brick & Pipe Co Pty Ltd resolved to voluntarily wind up the company's operations. Accordingly, Stephen Robert Dixon and Laurence Andrew Fitzgerald were appointed as joint and several liquidators. The company's Liquidators can be reached at: Stephen Robert Dixon Laurence Andrew Fitzgerald Horwath BRI (Victoria) Pty Ltd Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia About Northern Brick Located in Queensland, Australia, Northern Brick & Pipe Co Pty Ltd is a dealer of lumber and other building materials. RONEC HOLDINGS: Members and Creditors Set to Meet on March 30 ------------------------------------------------------------- The members and creditors of Ronec Holdings Proprietary Limited will meet on March 30, 2007, at 3:30 p.m. for their final meeting. During the meeting, Liquidators V. R. Dye and N. Giasoumi will present the company's wind-up report and property disposal. The Troubled Company Reporter - Asia Pacific reported that the company entered wind-up proceedings on May 1, 2006. The Liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road, Hawthorn East 3123 Australia About Ronec Holdings Located in Victoria, Australia, Ronec Holdings Proprietary Limited is engaged with holding companies. S.S. CONTAINER: Members and Creditors to Meet on March 30 --------------------------------------------------------- The members and creditors of S.S. Container Services Pty. Ltd. will hold a joint meeting on March 30, 2007, at 3:50 p.m., to hear the liquidator's report regarding the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road, Hawthorn East 3123 Australia About S.S. Container Located in Victoria, Australia, S.S. Container Services Pty. Ltd. -- http://www.sscontainers.com.au/-- hires and sells new, refurbished, specialized and customized shipping containers throughout Australia. SECURENET AUSTRALIA: Will Declare Final Dividend on March 27 ------------------------------------------------------------ Securenet Australia Pty Ltd will declare a final dividend on March 27, 2007. In this regard, creditors are required to prove their debts by March 20, 2007, to be included in the company's dividend distribution. Moreover, a final meeting will be held for the company's members on April 3, 2007, at 10:30 a.m. The company went into liquidation on Nov. 2, 2006, according to the Troubled Company Reporter - Asia Pacific. Securenet Australia's liquidators can be reached at: Simon A. Wallace-Smith Timothy B. Norman Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About Securenet Australia Located in Victoria, Australia, Securenet Australia Pty Ltd operates unit investment trusts, face-amount certificate offices, and closed-end management investment offices. SOUTHBANK MARKETING: Members Decide to Shut Down Business --------------------------------------------------------- On Feb. 16, 2007, the members of Southbank Marketing Pty. Ltd. met and decided to shut down the company's business. In this regard, Gregory Stuart Andrews was appointed as liquidator. The company's Liquidator can be reached at: G. S. Andrews G. S. Andrews & Assocs. 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Southbank Marketing Headquartered in Victoria, Australia, Southbank Marketing Pty Ltd is a distributor of electrical apparatus, equipment wiring supplies, and construction materials. TECHNOVA PTY: Members & Creditors' Meeting Set for March 30 ----------------------------------------------------------- A joint meeting of the members and creditors of Technova Pty Ltd will be held on March 30, 2007, at 4:20 p.m. At the meeting, the members and creditors will hear the liquidator's report about the company's wind-up proceedings and property disposal. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road, Hawthorn East 3123 Australia About Technova Pty Technova Pty Ltd is a distributor of metal doors, sash, frames, molding, and trim manufacturing. The company is located in Victoria, Australia. UNITED NETWORKS: Members and Creditors to Hear Wind-Up Report ------------------------------------------------------------- The members and creditors of United Networks (Australia) Pty. Ltd. will hold a joint meeting on March 30, 2007, at 4:30 p.m., to hear the company's wind-up report and property disposal. The company's liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road, Hawthorn East 3123 Australia About United Networks Headquartered in Victoria, Australia, United Networks (Australia) Pty Ltd operates computer and computer software stores. WATKINS GROUP: Liquidators to Present Wind-Up Report ---------------------------------------------------- The members and creditors of Watkins Group Pty Ltd will meet on March 30, 2007, at 4:40 p.m. At the meeting, Liquidators V. R. Dye and N. Giasoumi will present the company's wind-up report and property disposal. The Liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road, Hawthorn East 3123 Australia About Watkins Group Located in Queensland, Australia, Watkins Group Pty Ltd provides engineering services. ================================ C H I N A & H O N G K O N G ================================ ANDI (HONG KONG): Liquidator Quits Post --------------------------------------- On Feb. 23, 2007, Ha Yue Fuen ceased to act as liquidator of Andi (Hong Kong) Limited. The former Liquidator can be reached at: Ha Yue Fuen, Henry Room 1010, 10th Floor Wing On Centre 111 Connaught Road Central Hong Kong AUXMAN INVESTMENT: Ha Yue Fuen, Henry Resigns as Liquidator ----------------------------------------------------------- Ha Yue Fuen, Henry resigned from his post as the liquidator of Auxman Investment Limited on Feb. 23, 2007. According to the Troubled Company Reporter - Asia Pacific, Mr. Ha presented the company's wind-up report on Nov. 23, 2006. The former Liquidator can be reached at: Ha Yue Fuen, Henry Room 1010, 10th Floor Wing On Centre 111 Connaught Road Central Hong Kong BANK OF COMMUNICATIONS: Analysts Expect 43% Profit Rise in 2006 --------------------------------------------------------------- China's Bank of Communications is expected to post a 43% net profit rise in 2006 on the back of stronger loan growth than its rivals, analysts told The Standard. According to the report, 25 analysts polled by Thomson Financial forecasted a net profit of CNY12.78 billion to be recorded by the bank in 2006, compared to CNY8.89 billion for 2005. The analysts based their predictions on the bank's strong loan growth, which range from 16% to 20%, The Standard says. Moreover, Macquarie Research Equities predicts net fee income to be CNY2.8 billion, while UBS forecasts a slightly higher CNY2.84 billion, the paper relates. For non-interest fee income, Macquarie has set a forecast of CNY460 million, while UBS expects CNY380 million. Christina Fok, a banking analyst at Macquarie told The Standard "the bank had a faster loan growth than its peers at 19.5%, which is much higher than the government's benchmark of 15%." Meanwhile, moving forward, analysts expressed concern that the bank's income stream, already less diversified this year, will be further affected by the worsening U.S. economy and the tightening measures being imposed on the property market, the paper relates. "The bank has tended to focus on foreign exchange and the effect of doing that may have been underestimated," The Standard cites Credit Suisse head of financial research Bill Stacey, as saying. * * * Bank of Communications Co Ltd -- http://www.bankcomm.com/jh/en/index.jsp-- is a commercial bank in the People's Republic of China. As of December 31, 2005, the bank had 137 branches and sub-branches, in addition, to over 2,600 business outlets in China. It also has its branches in Hong Kong, New York, Tokyo, Singapore and Seoul. The bank's business is divided into four segments: corporate banking, retail banking, treasury and others. Its corporate banking business provides products and services to the corporate customers, such as loans, deposits, bill discounting, trade finance, fund custody and guarantees. The retail banking business provides retail banking products and services to its retail customers, such as deposits, mortgage loans, debit cards, credit cards, wealth management and foreign exchange trading services. The treasury operations include inter-bank money market transactions, foreign exchange trading and government, and finance bond trading and investment. The bank carries Fitch Rating's D individual rating effective on November 21, 2005. BANK OF COMMUNICATIONS: HSBC In Talks to Maintain 19.9% Stake ------------------------------------------------------------- HSBC Holdings PLC is in talks with the Chinese Government and Bank of Communications Co to maintain its 19.9% stake in Bank of Communications after the planned A-share listing of the bank as early as this month, Market Watch reports. According to a report from Dow Jones Newswires, Bank of Communications plans an initial public offering of as many as 4.5 billion yuan-denominated class A shares as early as March to raise about CNY20 billion. Market Watch relates that Class A shares are yuan-denominated stock of Chinese companies listed on mainland exchanges and are restricted to local investors and approved foreign investors. Vincent Cheng, chairman of HSBC's Asian unit, Hongkong & Shanghai Banking Corp. said HSBC has gained "very strong support" from discussions with Bank of Communications, but declined to comment on the chances of keeping its stake as it is now, Market Watch further relates. "I think the government is looking at that and is aware that HSBC and BoCom want to build up a partnership at the shareholding ratio they're having today," HSBC Chief Executive Michael Geoghegan, was quoted by the paper as saying. * * * Bank of Communications Co Ltd -- http://www.bankcomm.com/jh/en/index.jsp-- is a commercial bank in the People's Republic of China. As of December 31, 2005, the bank had 137 branches and sub-branches, in addition, to over 2,600 business outlets in China. It also has its branches in Hong Kong, New York, Tokyo, Singapore and Seoul. The bank's business is divided into four segments: corporate banking, retail banking, treasury and others. Its corporate banking business provides products and services to the corporate customers, such as loans, deposits, bill discounting, trade finance, fund custody and guarantees. The retail banking business provides retail banking products and services to its retail customers, such as deposits, mortgage loans, debit cards, credit cards, wealth management and foreign exchange trading services. The treasury operations include inter-bank money market transactions, foreign exchange trading and government, and finance bond trading and investment. The bank carries Fitch Rating's D individual rating effective on November 21, 2005. CHINA MERCHANTS: Head Says Net Profit Up to 50% ----------------------------------------------- China Merchants Bank posted a more than 50% rise in its 2006 net profit, Reuters reports, citing a copy of a speech by its chief executive, Ma Weihua. According to Mr. Wa, the bank's non-performing loan ratio dropped to 2.12% last year, and its capital-adequacy ratio reached 11.44%. The bank's total assets jumped nearly 30% to almost CNY1 trillion at the end of last year, Mr. Ma added. Reuters, however, notes that the bank has not officially made public its 2006 results, although it said in January that earnings would be at least US$758 million. Meanwhile, the number of the company's credit cards has topped 10 million, and the company earned about CNY100 million from the credit card business in 2006, Reuters relates. * * * China Merchants Bank -- http://www.cmbchina.com/-- is the second-largest bank among China's 12 nationwide shareholding commercial banks. It was established in 1987 and listed on the Shanghai Stock Exchange in 2002. The Ministry of Communications-owned China Merchants Group is the bank's main shareholder with a 26 percent stake (through various companies). The bank had 410 banking outlets nationwide and 17,829 employees at end-2004. On August 3, 2006, The Troubled Company Reporter - Asia Pacific reported that Fitch Ratings has upgraded its Individual rating on China Merchants Bank to 'D' from 'D/E'. At the same time, the bank's Support rating was affirmed at '3'. Fitch Ratings affirmed on September 5, 2006, China Merchants Bank's Individual D and Support 3 ratings. Fitch on August 3, 2006, upgraded its Individual rating on China Merchants Bank (CMB) to 'D' from 'D/E'. At the same time, CMB's Support rating was affirmed at '3'. CLASSIC FINE: Members to Receive Wind-Up Report ----------------------------------------------- The members of Classic Fine Limited will hold a final meeting on April 3, 2007, at 11:00 a.m., to receive the liquidator's report regarding the company's wind-up proceedings and property disposal. The liquidator can be reached at: Chan Sek Kwan Rays Unit G, 12/F., Seabright Plaza 9-23 Shell Street Hong Kong MITTOLAND LIMITED: Commences Liquidation Proceedings ---------------------------------------------------- At an extraordinary general meeting held on Feb. 26, 2007, the members of Mittoland Limited passed a resolution to wind up the company's operations. In this regard, Man Mo Leung and Kenneth Graeme Morrison were appointed as the company's liquidators. The Liquidators can be reached at: Man Mo Leung Kenneth Graeme Morrison Moores Rowland Mazars Advisory Limited 34th Floor, The Lee Gardens 33 Hysan Avenue, Causeway Bay Hong Kong ORIENT EXPRESS: Members' Final General Meeting Set for April 3 -------------------------------------------------------------- Orient Express Container Air (Hong Kong) Company Limited will hold a final general meeting for its members on April 3, 2007, at 10:00 a.m., at 13/F., Chun Hoi Commercial Building, 688-690 Shanghai Street, Mongkok in Kowloon, Hong Kong At the meeting, the members will hear the report regarding the company's wind-up proceedings and property disposal. In a report by the Troubled Company Reporter - Asia Pacific, the company entered wind-up proceedings on Aug. 14, 2006. The Liquidator can be reached at: Chui Chi Hung 13/F., Chun Hoi Commercial Bldg 688-690 Shanghai Street Mongkok, Kowloon Hong Kong HUA CHIAO: Members' Meeting Slated for April 2 ---------------------------------------------- The members of Hua Chiao Commercial Limited will meet on April 2, 2007, at 4:00 p.m., at 18th Floor, Two International Finance Centre, 8 Finance Street in Central, Hong Kong. At the meeting, the members will receive the liquidator's report regarding the company's wind-up proceedings and property disposal. KUNQU SOCIETY: Members' Final Meeting Slated for April 18 --------------------------------------------------------- The Kunqu Society of Hong Kong Limited will hold a final meeting for its members on April 18, 2007, at 10:00 a.m., at Units C & D, 9/F., Neich Tower, 128 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. The company's liquidator can be reached at: Lam Chi Wai Units C & D, 9/Floor, Neich Tower 128 Gloucester Road, Wanchai Hong Kong PROFESSIONAL HAN: Final Meeting Slated for April 18 --------------------------------------------------- Professional Han Tang Language Institute Limited, which is in members' voluntary wind-up, will hold a final meeting for its members on April 18, 2007, at 10:00 a.m., at Units C & D, 9/F., Neich Tower, 128 Gloucester Road in Wanchai, Hong Kong. At the meeting, the members will hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Lam Chi Wai Units C & D, 9/F., Neich Tower 128 Gloucester Road, Wanchai Hong Kong TCL CORP: Expects to Record Profit in 2007 ----------------------------------------- TCL Corp's group chairman Li Dongsheng is confident the company and its two Hong Kong-listed subsidiaries will post a profit this year, The Edge Daily says. According to TCL, it returned to the black in the third quarter of last year but still expected to post a loss for the full year of 2006. TCL's listed company, TCL Multimedia, posted a HK$1.6 billion net loss in the first half of last year, while TCL Communication Technology Holdings Ltd reported a net loss of HK$71 million in the same period, the paper recounts. The companies have yet to report earnings for the whole of 2006, The Edge notes. Mr. Li said TCL Multimedia has no plans to sell its business in Poland, rejecting reports in Chinese media that TPV Technology Ltd was in talks to buy a television plant in Poland from the company. The Edge recounts that a TPV executive recently told Reuters it expected to finalize a US$35 million deal to buy and expand a liquid-crystal-display TV plant in Poland soon. The executive declined to say if the plant was TCL's. * * * Headquartered in Guangdong Province, China, TCL Corporation -- http://www.tcl.com-- Corporation is principally engaged in the manufacture of TV sets and handset products. TCL Corp is the parent of Hong Kong-listed TV maker TCL Multimedia Technology Holdings Ltd and cellphone maker TCL Communication . Xinhua Far East China Ratings has downgraded on April 7, 2006, the domestic currency issuer credit rating of TCL Corporation to "BB" from "BBB". The ratings outlook remains negative. UNIVERSAL ALUMINIUM: Members & Creditors Set to Meet on April 4 --------------------------------------------------------------- The annual meeting of the members and creditors of Universal Aluminium Company will be held on April 4, 2007, at 10:00 a.m., and 10:30 a.m. respectively, at at 10/F., Xiu Ping Commercial Building, 104 Jervois Street in Sheung Wan, Hong Kong. During the meeting, the members and creditors will hear the liquidator's report regarding the company's wind-up proceedings and property disposal. ========= I N D I A ========= AES CORP: Appoints Andres Gluski As Executive Vice President ------------------------------------------------------------ The AES Corp. appointed Andres Gluski as Executive Vice President and Chief Operating Officer, a move that will enable the company to maintain its focus on operational excellence as it continues to pursue new growth opportunities. Dr. Gluski will oversee AES Corp.'s generation and distribution businesses in its four geographic regions as well as human resources, safety and environment, information technology, engineering and construction, insurance and strategic sourcing. He continues to report to AES Corp. President and Chief Executive Officer Paul Hanrahan. Dr. Gluski, who joined AES Corp. in 2000, most recently was an AES Corp.'s Executive Vice President and President of AES Corp. Latin America. Previously, he held business leadership positions in Chile and Venezuela. Prior to AES Corp., Dr. Gluski worked in executive positions in multilateral and financial institutions and in private utilities. He earned a PhD in Economics from the University of Virginia, an MA in Economics from the University of Virginia and a BA from Wake Forest University, where he graduated Phi Beta Kappa. "As we continue to grow our company into new areas, it is critical that we maintain our focus on our existing operating businesses," Mr. Hanrahan said. "Andres has played a key role in AES Corp.'s overall success and in Latin America in particular. He led our growth initiatives in key markets, including Chile and Panama, and completed the restructuring and refinancing of our Latin American businesses. Andres has the broad experience needed to help us achieve the company's long- term goals in the new position of Chief Operating Officer." AES Corporation -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has Asian presence in China, India and Sri Lanka. * * * 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. BHARTI AIRTEL: Bids for Saudi Arabia's Mobile License ----------------------------------------------------- Bharti Airtel Ltd disclosed in a filing with the Bombay Stock Exchange that it is a part of a consortium bidding for Saudi Arabia's third mobile license. Bharti Airtel said it is supporting a Saudi-led consortium with a minority stake of 15%. Saudi Arabia's telecom regulator Communications and Information Technology Commission had invited bids globally for the third mobile license, Zee News reported. According to The Economic Times, the deadline for submitting applications for the new mobile license was set to February 24, and for the fixed-line license to March 10. The new licenses, when awarded, will break the monopoly of Saudi Telecom Co. in the landline segment in addition to adding a third mobile phone operator after STC and Mobily, The Times relates. Bharti makes it clear that its principal role will be to provide comprehensive management services including negotiation with vendors, roll out of networks, brand building and distribution, setting up management processes and providing training and development under a management services pact. Under the agreement, the company will get a management fee in addition to reimbursement of all actual costs. Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit BB+ ratings on Sept. 21, 2005. CANARA BANK: Sets Up Life Insurance JV with HSBC & Oriental Bank ---------------------------------------------------------------- Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited and Oriental Bank of Commerce on March 5, signed a non-binding Memorandum of Understanding to jointly establish a life insurance company in India. The new company will have exclusive access to the customer bases of both of the State-owned banks, Canara Bank and OBC, and of HSBC in India. This comprises more than 40 million people and a nationwide network of 3,600 branches. This formidable distribution capability will be used by the company to become a significant player in the country's rapidly expanding life insurance industry. Under the proposed agreement, Canara Bank will take a 51% stake in the new company, HSBC a 26% interest and OBC the remaining 23%. The new life insurance company will be capitalized at INR3,250 million (approximately US$73 million), of which HSBC will contribute INR1,770 million (approximately US$40 million), Canara Bank INR1,020 million (approximately US$23 million) and OBC INR460 million (approximately US$10 million). Under the terms of the agreement, HSBC will provide a range of management services, which may include providing executives for senior roles. Life insurance premiums in India grew at an annual rate of 21% in the six years following the opening of the market to private players in 1999, exceeding US$20 billion in 2005. From April to November 2006, new life insurance premiums grew by 155%, according to the business figures released by India's Insurance Regulatory and Development Authority. However, with a penetration rate of only 2.5% in 2005, India's nascent life insurance market has considerable long-term growth potential. Shri M B N Rao, Chairman and Managing Director, Canara Bank, said: "Canara Bank, which has built up a distinguished track record of performance and service excellence over 100 years, has emerged as a front ranking banking institution in India. Recognized as a financial conglomerate with a strong presence across varied financial markets, the Bank has been providing a wide array of need based banking and financial services to its fast growing cross section clientele. Among others, Canara Bank has already established its presence in Mutual Fund, Factoring, Housing and Venture Capital Financing activities through its subsidiary companies and insurance domain by distributing insurance products -- both life and non-life through its network of branches. "The signing of the MoU today to promote a life insurance company with HSBC Insurance and Oriental Bank of Commerce marks a significant step forward for Canara Bank in terms of creating and delivering value added insurance products not only to the existing customers but also to the customers and prospects of our partner institutions. By collaborating with HSBC we shall be in a position to bring the best of international insurance products to the fast growing Indian markets. "I have no doubt indeed that the domain expertise of HSBC with the strong network and presence of the Indian Public Sector Banks augurs well for the success of our alliance." David Fried, Regional Head of Insurance Asia Pacific for HSBC, said: "This is a unique opportunity to expand HSBC's footprint in one of our major emerging markets and to bring to the partnership considerable insurance experience, product range and our proven bancassurance capabilities. HSBC has an extensive and successful bancassurance operation in over 40 countries around the world serving more than 30 million customers, in both developed and emerging markets. HSBC has been in the insurance business since 1808, employs over 6,000 staff in the manufacturing and sourcing of insurance products globally and has 40,000 staff involved in selling insurance. HSBC Insurance also has a long history in Asia and we are recognized in the industry for our prudent management and high quality of service. In Hong Kong, HSBC Insurance has won industry awards such as Asia Insurance Review's Life Insurance Company of the Year in 2006, for being a pioneer in product and service excellence as well as for our effective and sound financial management. "The financial services industry in India has seen remarkable development over the past few years and life insurance has been a key part of that success story. Working closely with our two partners, and by bringing our rich experience to India, we believe we can build a significant presence in India's life insurance industry. The sector has experienced rapid development since it was opened up in 1999 and we expect to see that robust growth continue over the next decade. It is an extremely promising time to be entering this market." Shri Prithviraj, Chairman Oriental Bank of Commerce, said: "OBC has a strong presence in rural and semi-urban areas of northern India with 1,350 branches and extension counters in all important centres across India. Our 14,500 strong work-force is dedicated and committed to exploring new business activities. Around 950 employees have already been handling life and general insurance businesses for the past three years. With this alliance, OBC will augment its revenue streams by improving return on equity after breakeven and commission earnings from premia mobilized. Since OBC understands the needs of the local populace, our input into the design of customer-friendly life insurance products will enable the partners to garner market share. OBC will help formulate products for Inclusive Growth for the needy sectors of society, so as to extend the Social Security net to the deserving." Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie-up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Fitch Ratings gave Canara Bank an individual rating of D on June 1, 2005. CANARA BANK: Government Appoints Vani J. Sharma to Director Post ---------------------------------------------------------------- The central government has nominated Vani J. Sharma, Bangalore, as the new director of Canara Bank effective Feb. 27, 2007, a filing with the Bombay Stock Exchange states. Vani J. Sharma will replace G. Srinivasan of the Reserve Bank of India with immediate effect. Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie-up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Fitch Ratings gave Canara Bank an individual rating of 'D' on June 1, 2005. EMCO LTD: 4th Quarter 2006 Net Profit Rises 64% to INR99 Million ---------------------------------------------------------------- Emco Ltd. reported a 64% rise in net profit in the quarter ended Dec. 31, 2006, to INR99.02 million from the INR60.53 million booked in the corresponding quarter in 2005. The increase was driven by a surge in orders, Reuters says, citing a statement made by an Emco official. Emco's net sales rose 68% from INR971.24 million in the three months ended Dec. 31, 2005, to INR1.63 billion in the latest quarter under review. Operating expenses increased by 67% to INR14.10 billion in the December 2006 quarter bringing the operating profit to INR221.66 million. Operating profit booked in the December 2005 quarter was INR126.05 million. The company booked much higher provisions for taxes in the December 2006 quarter -- INR62.97 million -- more than three times the INR17.5 million booked in the same quarter in 2005. A copy of Emco's financial results for the quarter ended Dec. 31, 2006, is available for free at the Bombay Stock Exchange at http://ResearchArchives.com/t/s?1ae5 Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com/-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the Company offers metering solutions like tamper-proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Credit Analysis and Research Limited downgraded Emco's senior unsecured debt from A to 'BB' on April 1, 2004. EMCO LTD: To Declare Interim Dividend for FY 2006-07 ---------------------------------------------------- Emco Ltd plans to declare an interim dividend for the financial year 2006-07, a filing with the Bombay Stock Exchange reveals. To discuss the declaration of dividend, the company's board of directors will meet on March 15. The board will also discuss in the upcoming meeting a proposed merger of the company with Electrical Industry Company. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 13, 2007, the board showed interest in the electrical equipment industry by allowing the company's managing director to invest up to INR100 crore in that segment. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com/-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the Company offers metering solutions like tamper-proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Credit Analysis and Research Limited downgraded Emco's senior unsecured debt from A to BB on April 1, 2004. HDFC BANK: To Allot 2,73,300 Equity Shares Under ESOS ----------------------------------------------------- HDFC Bank Ltd will be issuing 2,73,300 equity shares to its employees, the bank informs the Bombay Stock Exchange in a regulatory filing. The Investor Grievance (Share) Committee of the Bank at its meeting held on March 6 approved the allotment of shares pursuant to the Employees Stock Option Scheme. As previously reported in the Troubled Company Reporter - Asia Pacific, the Committee approved on Feb. 12 the allotment of 4,18,200 shares to the employees also under ESOS. Headquartered in Mumbai, India, HDFC Bank Limited -- http://www.hdfcbank.com/-- is a private sector bank that offers a range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank operates in three segments: retail banking, wholesale banking and treasury services. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking segment provides loans and transaction services to corporate and institutional customers. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. Fitch Ratings, on June 1, 2005, gave HDFC Bank a 'C' individual rating. ROYAL & SUN: Completes Disposal of U.S. Businesses to Arrowpoint ---------------------------------------------------------------- Arrowpoint Capital Corp. has completed the acquisition of all Royal & SunAlliance USA businesses formerly owned by Royal & Sun Alliance Insurance Group plc of London. Under the terms of the transaction approved Feb. 20 by Delaware Insurance Commissioner Matthew Denn, Arrowpoint Capital will focus on meeting policyholder obligations through a continuation of current operational, financial and governance guidelines. Arrowpoint Capital Corp. was formed in June 2006 by the senior management and outside directors of Royal & SunAlliance USA. The company is led by former R&SA USA President & CEO John Tighe and his senior management team, who have successfully headed Royal's US operation since 2003. "Our focus has always been on our obligation to all of our policyholders - the successful completion of this transaction is a huge win for them," Mr. Tighe said. "The transaction builds on the strong success we've achieved to date through our restructuring efforts and provides us with a solid foundation for taking the business forward. Most importantly, it represents an excellent outcome for our policyholders, who are the primary beneficiaries of the acquisition and the additional US$287.5 million it provides." Under the terms of the transaction, Arrowpoint Capital management purchased 100% of the interests of Arrowpoint General Partnership, the US holding entity, which owned the R&SA USA businesses, for US$300 million of deferred consideration. At the close of the transaction, the Group contributed US$287.5 million of additional capital to the US-regulated entities. "I would like to express my appreciation to Commissioner Denn, the Delaware Insurance Department and Professor Hamermesh, the independent hearing officer, who worked tirelessly to ensure a fair, thorough and open process," Mr. Tighe said. In addition to members of the management team, the Arrowpoint board will include Michael Crall, formerly CEO of Equitas and President & Chief Executive of Argonaut Insurance Company, who serves as chairman; Edward Muhl, former Superintendent of Insurance for the State of New York, Commissioner of Insurance for the State of Maryland and President of the National Association of Insurance Commissioners; and Larry Simmons, former President & CEO of Royal & Sun Alliance Insurance Company of Canada and Western Assurance Company. About Arrowpoint Capital Arrowpoint Capital Corp. is a newly formed company comprised of the former senior management and outside directors of Royal & SunAlliance USA. Headquartered in Charlotte, NC, the company will build on its experience in both run-off and active insurance businesses by focusing on operational objectives, including investment, claim and expense management, to satisfy policyholder obligations. About Royal & Sun Headquartered in London, United Kingdom, Royal & SunAlliance Insurance Group Plc -- http://www.royalsunalliance.com/-- provides risk management and insurance solutions through two divisions focusing on property & casualty business and personal insurance. The group consists of three regions -- U.K., Scandinavia and International. The group has operations in Asia including China, Hong Kong and India, among others. * * * In September 2006, A.M. Best Co. has placed the financial strength ratings of C++ (Marginal) and the issuer credit ratings of "b" of the Royal & SunAlliance U.S.A. Insurance Pool and Royal Surplus Lines Insurance Company under review with developing implications pending the completion of the proposed sale of these operations to Arrowpoint Capital, a new company formed by the existing management team of these operations. All the above companies are domiciled in Wilmington, Delaware. R&SAUS and RSLIC are U.S. subsidiaries of Royal & Sun Alliance Insurance Group plc (London, England). In March 2006, Standard & Poor's Ratings Services lowered its counterparty credit and insurer financial strength ratings on Royal & Sun Alliance Insurance Group PLC's U.S. insurance operations (RSA USA) to 'BB' from 'BB+'. S&P said the outlook remains negative. At the same time, the ratings were withdrawn at the request of the companies' management. ================= I N D O N E S I A ================= ALCATEL-LUCENT: European Group Committee Meeting Set on March 16 ---------------------------------------------------------------- Alcatel-Lucent will bring together an exceptional European Group Committee on March 16 under the leadership of chief executive Patricia Russo, in response to the employee representative's request made during the European Group Committee on Feb 23. During the March 16 meeting, the European perspectives of Alcatel-Lucent will be presented and discussed, as well as the strategies of the different market segments. It has also been reaffirmed to the French Prime Minister that: -- the French restructuring project will be based exclusively on volunteers; -- France remains a strategic center of research and development, especially in mobile broadband technologies, thanks to the acquisition of Nortel's UMTS activity; -- Alcatel-Lucent confirms its involvement in competitive clusters, in particular "Images & Networks" in Brittany. Moreover, Alcatel-Lucent confirmed its willingness to actively participate in the French government initiative to create a working group on the future of telecoms in Europe. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ALCATEL-LUCENT: Inks Multi-Year Pact with University in Sydney ------------------------------------------------------------ Alcatel-Lucent disclosed a multi-year agreement to supply its OmniSwitch 6850 solution for the distribution and access layer of the University of Technology Sydney's IP network upgrade, delivering reliable connectivity to more than 27,000 users across two UTS campuses in Sydney. Alcatel-Lucent's OmniSwitch 6850 solutions, which provide the most advanced services, highest performance and best value in the industry, will replace an existing multi-vendor legacy network, reducing the cost and complexity of network operations for UTS. The 14,000 network ports that make up the access and distribution network will be upgraded in phases by systems integrator, Integ. The initial phase has already been deployed to address UTS' immediate requirements. "We selected Alcatel-Lucent because of the strength of its portfolio and the seamless integration it offered with the rest of our network. We have also, through previous projects with them, built up a level of trust in their solutions," said Peter James, Director IT Infrastructure and Operations at UTS. More universities are responding to the needs of a new generation of tech-savvy faculty and students through network transformations similar to UTS'. The network improvements will enable UTS to differentiate themselves through an enhanced learning process and increased overall user satisfaction. "This win reinforces the partnership and strong ties that we already enjoy with UTS," said Tom Burns, president of Alcatel- Lucent enterprise solutions activities. "The consolidation of this relationship has also contributed to Alcatel-Lucent's continued strong growth in the enterprise sector." UTS, which became a member of Alcatel-Lucent's Research Partner Program in 2003, also selected Alcatel-Lucent in April last year for its 3-D Animation Multimedia Lab, the first of its kind in an Australian university. Developing 3-D animations require sophisticated computers and software applications built over a very high-speed network. Users typically require huge bandwidth at Gigabit Ethernet speeds to meet the demands of a distributed rendering solution. UTS selected the Alcatel-Lucent OmniSwitch 9700 to support the core and the Alcatel-Lucent OmniSwitch 6800 to support the edge of the network in the lab, which is made up of 50 Quad Mac G5 workstations, two Apple X Servers and 19 dedicated render cluster nodes. The two switches are linked together via 10 Gigabit Ethernet in order to deliver maximum performance to simultaneous users. "Alcatel-Lucent's innovation allows our students to do more, learn faster and immediately visualize the results of their 3-D animation," said Peter James of UTS. "The benefit of an Alcatel-Lucent network is a state-of-the-art facility that is closely aligned to industry operating conditions, with flow-on benefits for student creativity and employment opportunities. About UTS The University of Technology, Sydney is Sydney's city university, with a main campus located on the edge of the CBD and the vibrant Chinatown precinct. In 2006 more than 32,700 students were enrolled at UTS in onshore and offshore courses. TS is known for its practical and industry-focused teaching and research in fields including business, engineering, design, science, communications, social inquiry, law, IT, nursing and education. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ANEKA TAMBANG: 2006 Unaudited Net Profit Up 85% to US$173 Mil. -------------------------------------------------------------- PT Aneka Tambang Tbk disclosed unaudited consolidated net profit of IDR1,559 billion (US$173 million) and earnings per share of IDR817 for the full year ending Dec. 31, 2006, an 85% increase from the net profit of IDR842 billion, or US$87 million, and EPS of IDR441 for the full year of 2005. Antam's consolidated net sales rose to IDR5,566 billion, or US$617 million, a 69 % increase over the IDR3,287 billion, or the US$364 million of 2005. The increase was mainly attributed to higher sales volumes and higher prices of ferronickel. To a lesser extent the increase is attributed to higher prices of Antam's other products and higher sales volumes of high grade nickel ore. As in past years, the nickel and gold divisions were the biggest contributors to Antam's revenues. Overall, the revenue of nickel products -- 100% of which were exported -- contributed 84% of revenue in 2006 compared to 76% in 2005. Meanwhile the contribution from gold decreased to 11% from 16% in 2005. Revenues from ferronickel increased 177% to IDR2,731 billion as ferronickel sales volume increased 92% to 13,389 tonnes while the average price increased by 57% to US$10.14 per pound. As a result, ferronickel contributed the largest share of revenues as its share increased to 49% from 30% in 2005. This is in line with the company's strategy to add value by moving away from selling raw materials and increasing the manufacture and sale of processed products. Comparison (%) 2004 2005 2006 -------------- (Audited) (Audited) (Unaudited) 05/04 06/05 ------- ------- --------- ----- ----- Sales 2,858 3,287 5,566 15 69 COGS 1,498 1,827 2,820 22 54 Operating Expenses 264 324 298 23 -8 Operating profit 1,097 1,136 2,448 4 115 Net Income 810 842 1,559 4 85 Net Operating Cash Flow 764 791 1,446 4 83 Capital Expenditure 1,364 1,311 127 -4 (90) (Free Cash Flow) (600) (520) 1,320 N/A N/A Increased ferronickel sales volume was mostly due to the new smelter FeNI III, which began producing export-quality nickel in April 2006, on a trial basis, after two and a half years of construction. Revenue from nickel ore increased by 28% to IDR1,941 billion in 2006 from IDR1,522 billion in 2005. The contribution of nickel ore, 87% of which was from high grade, dropped to second place with a revenue share of 35% compared to 46% in 2005. High grade nickel ore sales volume increased 12% to 3,375,466 wet metric ton. Coupled with an increase in average price of 23% to US$54.74 per wmt, revenues increased 28% to IDR1,691 billion. A new nickel mine, Mornopo, located in North Maluku, which started operation in 2005, contributed significantly to the increase of high grade nickel ore volumes in 2006. Although low grade nickel ore sales volume decreased by 12% to 933,668 wmt, revenues increased 27% to IDR250billion due to a 54% increase in average prices to US$29.38 per wmt. Despite lower sales volumes of gold, which decreased 8% to 3,340 kg from 3,639 kg, gold revenues increased 18.5% to Rp601 billion due to higher prices. The price of gold increased 37% to US$611.59 per troy ounce in 2006. The bauxite division experienced a 5% decrease in sales volume to 1,536,542 wmt despite an increase in production. However, in view of 3% increase in selling price to US$13.60 per wmt, revenues from bauxite increased 3% to IDR192 billion. Revenues from other products, namely silver, iron sands and precious metals refinery services recorded quite significant increases at 7.4%, 450% and 13% respectively. However, their contribution to overall revenues remained small at 1.3%, 0.2% and 0.3% for silver, iron sands and precious metals refinery services respectively. (In IDR Billion) ----------------------- Revenue Shares(%) 2004 2005 2006 2006 ----------------- (Sales) (Sales) (Sales) Growth(%) (2005) (2006) ------- ------- ------- --------- ------ ------ Nickel Ore 1,195 1,522 1,941 27.5 46 35 Ferro nickel 971 986 2,731 176.9 30 49 Gold 457 507 601 18.5 15.5 10.8 Bauxite 135 187 192 2.7 6 3.4 Silver 50 68 73 7.4 2 1.3 Iron Sands /Other 31 2 11 450 0.1 0.2 Others (including precious metals refinery) 20 15 17 13.3 0.4 0.3 ANTAM 2,859 3,287 5,566 100 100 Cost of Sales Antam's 2006 cost of sales rose 55% to IDR3,040 billion from IDR1,832 billion. This increase, however, did not surpass the pace of sales growth which resulted in an increase of Antam's gross margin to 48% from 44%. The top five components accounted for 76% of Antam's cost of sales. In descending order, they were: materials, fuels, mining services, depreciation and labour. Antam's materials costs increased by almost 100% to IDR585 billion in line with higher ferronickel production, which increased the consumption of nickel ore and other production inputs. Included also in this category was the nickel ore Antam began to buy from PT Inco to feed the ferronickel plants. Materials costs contributed 19% of overall cost of sales, up from 12% in 2005. Accounting for 17% of overall cost of sales, fuel was the second largest item in 2006, up from the fourth in 2005 when it accounted 10% of total cost of sales. Fuel costs recorded an increase of 187% to IDR51 billion due to higher ferronickel production, which increased 97% to 14,474 tonnes, as well as due to higher fuel prices, which for MFO rose 42% to IDR3,126 per litre and for IDO rose 123% to IDR4,823 per litre. Fuel is the largest cost component of the energy-intensive ferronickel production process as it requires extraordinary electrical power from Antam's diesel power plant. Antam switched from using mostly Industrial Diesel Oil to using mostly the cheaper Marine Fuel Oil in 2005, to reduce the impact of higher prices. Antam's new 102 megawatt power plant was built, and is operated and maintained by, Wartsila of Finland. The plant can operate normally using MFO, however, the viscosity and other properties of MFO create the need for more frequent power plant maintenance. In 2005, mining services was the top cost, accounting for 20% of the total cost of sales. In 2006, mining services dropped to third position, or 16% of the total cost of sales. The cost of mining services however increased 31% to IDR486 billion due to higher excavation costs of Antam's contractors inline with the increased production volume of nickel ore. Two of Antam's contractors are owned by Antam's pension fund. However, the prices of their services are on par with those of other contractors. Once the production of FeNi III began at the end of March 2006, depreciation of the smelter began. Depreciation therefore increased 148% to IDR414.75 billion and remained Antam's fourth largest cost of sales. Furthermore, interest on the associated debt was no longer capitalized. Labour, last year's second largest cost, dropped to the fifth largest cost in 2006, despite increasing 37.5% to IDR380.86 billion on the back of higher bonuses granted to employees in relation to the higher revenues and profits of the company. Labour is to a large extent a fixed cost and so did not increase in synch with the ramp up in ferronickel production. Operating Expenses and Profit Antam's operating expenses decreased 8% to IDR298 billion, and accounted for 5% of Antam's revenues compared to 10% in 2005. The decrease was mainly due to lower general and administration expenses, which Antam decreased by 16% to IDR255 billion. The largest contributor of this decrease was the absence of expenses related to the Early Retirement Program, which cost IDR103 billion in 2005. Meanwhile, in line with efforts to boost productivity and efficiency, Antam increased training expenditures by almost 80% to IDR12 billion. The largest component of General and Administrative expenses remained salaries, wages and bonuses, which increased by less than 0.2% to IDR130.67 billion, although its contribution to general and administration expenses increased to 51% from only 43% in 2005. Antam's exploration expenses increased by 289% to IDR31.59 billion in 2006 from IDR8.13 billion in 2005 in line with the strategy to increase reserves. When Antam's cost of sales and operating expenses are combined, the rate of cost increase compared to last year was 45%, which was less than the 69% increase of net sales. Thus, Antam's operating profit rose 115.5% to IDR2,448 billion (US$271million) resulting in an operating margin which widened to 44% from 35%. Product/Service Sales Sales Volume Growth (%) Volume 2005 2006 2006 --------------------- ------------ ---------- High grade nickel ore 3,025,841 3,375,466 11.55 Low grade nickel ore 1,060,240 933,668 -11.93 Ferronickel 6,988 13,389 91.60 Gold 3,639 3,340 -8.22 Silver 29,823 21,063 -29.37 Bauxite 1,617,566 1,536,542 -5.00 Other Income and Net Income In 2005, Antam posted Other Income of IDR67 billion, whereas in 2006 Antam recorded Other Expenses of IDR221 billion. Antam's interest expense jumped 572% to IDR172 billion as the interest on the loan associated with the construction of FeNi III was expensed from the end of March, when the assembly and operation of the unit was complete. A foreign exchange gain of IDR20 billion in 2005 turned into a foreign exchange loss of IDR57billion. As the Rupiah strengthened Antam's large dollar assets become less valuable in Rupiah terms. Antam achieved net income of IDR1,559 billion (US$173 million), a 85% increase compared to net income of Rp842 billion in 2005. Cash Costs Antam's ferronickel cash cost of production rose 12% to US$4.40 per pound in 2006 from US$3.92 per pound in 2005, mostly, as explained above, due to higher fuel prices and mining services costs. The cash cost of saprolite and limonite was US$19.83 per wet metric ton and US$8.67 per wmt respectively. The cash cost of gold was 12% higher at US$283.93 per troy ounce inline with higher materials and labor costs. Higher materials costs were inline with work done at the Pongkor gold mine to improve the extraction rate as well as the safety rate of the mine. As such, Antam is achieving over 50% cash cost margin for all of its products. In 2006, the cost of electricity produced by Antam's diesel power plant reached USc12/ kwh. Anticipating the high ferronickel costs, Antam plans to convert the use of diesel in its power plant to other alternative energy in 2009. The energy alternatives being studied are either natural gas, hydropower, or coal. Recently a Canadian engineering firm confirmed the feasibility of the hydropower plan, which has the most momentum as the plans for natural gas have begun to look less likely due to the high cost of transporting the gas relative to the size of Antam's power plant. A new technology called Smart Predictive Line Control, which eliminates fluctuation in the power load, is creating the possibility for Antam to use coal, which previously had been omitted as a potential fuel. Converting to a less expensive fuel will bring the most significant cost reductions. Other efforts include reducing the workforce from 2,754 to 2,500 by 2009, using lower cost equipment and materials and upgrading equipment to benefit from better efficiency and higher productivity. Balance Sheet Antam's balance sheet strengthened as total assets grew by 12% to IDR7,174 billion (US$795million), while total interest- bearing debt decreased 32% to IDR1,335 billion (US$148 million), or 19% of total assets, down from IDR1,973 billion or 31% of total assets. Antam's current ratio remained comfortable at 337% although slightly decreased from 360% in 2005. Antam's working capital, however, increased to IDR2,048 billion from IDR1,308 billion. The ratio of Antam's total liabilities to equity was 67% or 40:60. As an important pillar of Antam's strategic growth plans, efforts will continue to strengthen Antam's financial structure. Of Antam's IDR4,288 billion in total equity, which rose 41.5% from 2005, IDR3,311 billion was retained earnings a 61% increase over last year. Sales Price Sales Price Sales Price Growth (%) 2004 2005 2006 2006 ----------- ----------- ----------- ---------- High grade nickel ore (USS/wmt) 42. 35 44.64 54.74 23 Low grade nickel ore 16. 47 19.06 29.38 54 Ferronickel 6.23 6.45 10.14 57 Gold 411.97 446.14 611.59 37 Silver 6.64 7.27 11.83 63 Bauxite 11.36 11.91 13.60 2.5 Assets The IDR772 billion increase in total assets was largely due to the 54% increase of total current assets to IDR3,201 billion, which itself was largely due to the IDR452 billion, or 63%, increase in cash and cash equivalents to IDR1,173 billion, the IDR366 billion or 78% increase in trade receivables to IDR834 billion and the IDR395 billion, or 75%, increase in inventories to IDR923 billion. The increase in cash was due to higher sales of nickel contained in ferronickel and higher prices of nickel. The cash and its equivalent, which was 96% in US dollars, was held in several banks with about 35% in the form of cash and 65% in form of time deposits. Antam receives interest rates of between 3.75%-5.30% per annum for its US Dollar time deposits and 8.00%-12.75% for its Rupiah time deposits. The increases in trade receivables and inventories are largely due to higher prices for Antam's finished goods and, for inventories, spare parts and supplies. About 60% of Antam's receivables were current, 26% were overdue within 30 days and 14% were overdue for more than 30 days. Antam's allowance for doubtful accounts is sufficient to cover losses from the non-collection of the accounts. Antam's non-current assets decreased by 8% to IDR3,964 billion from IDR4,315 billion mainly due to depreciations of fixed assets. Fixed assets, which represented 85% of non-current assets, decreased by 12% to IDR3,354 billion from IDR3,825 billion. Reflecting Antam's continued focus on exploration, deferred exploration and development expenditures increased 40% to IDR376 billion. Liabilities Antam's total liabilities decreased 14% to IDR2,887 billion, mainly due to a 34% decrease in non-current liabilities to IDR1,724 billion from IDR2,594 billion in view of Antam's continuing debt repayment activities. Due to the abolishment at the end of 2004 of the Avoidance of Double Taxation Treaty between Indonesia and Mauritius, Antam exercised its rights under the terms of the notes issued by its subsidiary, Antam Finance Limited, in Mauritius, to call the AFL notes at par. Antam had taken every reasonable means available to avoid invoking the early redemption clause of the AFL, but there was finally no other choice but to repay the notes early. On 29 December 2006, Antam had fully repaid the US$171 billion of outstanding AFL notes, and refinanced them with a US$71 million drawdown of a US$121 million credit facility provided by BCA and a US$50 million borrowing from a US$60 million Bank Mandiri. Antam also used US$50 million from internal cash. Another significant component of non-current liabilities, pension and post-retirement obligation, increased slightly to IDR582 billion from IDR577 billion. Antam's current liabilities increased 49% to IDR1,162 billion mostly due to the 76% increase of taxes payable to IDR396 billion, and the 783% increase of current maturity of investment credit facilities to IDR265 billion. Antam's trade payables to third parties increased by 7% to IDR121 billion, while another significant portion of current liabilities, Accrued Expenses, decreased by 9% to IDR349 billion. Cash Flow Antam's cash flows reflect the increase in ferronickel production and sales from FeNi III and higher nickel prices, together with higher costs, and reduced investment expenditures as Antam's payments for FeNi III construction began to decrease. Related to FeNi III, Antam's operating cash was furthered bolstered by relatively large tax restitution payments amounting to IDR201 billion. Antam's cash flows from operations increased 83% to IDR1,447 billion as receipts from customers rose 71% to IDR5,245 billion. The largest component of operating cash out flows were payments to suppliers which increased 90% to IDR2,511 billion. Payments to commissioners, directors and employees increased 1.6% to IDR563 billion, and tax payments increased 22% to IDR507 billion. Antam's cash flows used for investing activities decreased by 87% to IDR217 billion as the construction of FeNi III smelter came to an end. This decrease was mainly due to a 95% decrease in payments for fixed assets to IDR71 billion. The largest component of cash flows from investing activities were Antam's expenditures for exploration and development which stood at IDR145 billion, a decrease of 24% from 2005 figure. Antam's capital expenditure in 2006 was IDR127 billion, 90% decrease from 2005 figure. Antam's lower capital expenditure coupled with higher larger operating cash flow resulted in Antam generating free cash flow of IDR1,320 billion, compared to negative free cash flow of IDR520 billion in 2005. Despite a receipt of IDR1,102 billion of long term borrowings, Antam's net cash used for financing activities increased 65% to IDR778 billion, as Antam repaid IDR1,593.5 billion of long term debt, and paid an 11% higher dividend at IDR286 billion. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long term corporate credit rating on Indonesian state-owned mining company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. Moody's Investors Service gave Aneka Tambang a local currency B1 corporate family rating, and a B2 foreign currency bond rating. COMVERSE TECH: Launches Zero Yield Puttable Securities Offering --------------------------------------------------------------- Comverse Technology, Inc. is commencing a cash tender offer for all of its outstanding Zero Yield Puttable Securities Due May 15, 2023 (CUSIP Nos. 205862AK1 and 205862AL9), and New Zero Yield Puttable Securities due May 15, 2023 (CUSIP No. 205862AM7), upon the terms and conditions set forth in the Offer to Purchase and related Letter of Transmittal, each dated March 2, 2007. The delisting of Comverse Technology's Common Stock from The NASDAQ Global Market was a Designated Event under the Indentures governing the ZYPS, and in order to satisfy its obligations under the Indentures, Comverse Technology is offering to purchase all of its outstanding ZYPS at a purchase price of US$1,000 in cash for each US$1,000 principal amount of ZYPS tendered. The Offer is scheduled to expire at 5:00 p.m., New York City time, on March 30, 2007, unless extended by Comverse Technology. As of Jan. 31, 2007, there was US$419,647,000 aggregate principal amount of ZYPS outstanding. Comverse Technology has retained The Bank of New York Trust Company, N.A. to serve as the Depositary and D.F. King & Co., Inc. as the Information Agent for the Offer. Questions regarding the Offer and requests for documents in connection with the Offer may be directed to D.F. King & Co., Inc. at (800) 829-6551 (toll free) or, for banks and brokers, (212) 269-5550 (call collect). In addition, on or about March 19, 2007, Comverse Technology will disclose its unaudited financial results for the fiscal year ended Jan. 31, 2007. As a result of Comverse Technology's ongoing investigation of past stock option grants, including its evaluation of actual dates of measurement for certain grants which differ from the recorded grant dates, and of additional accounting issues, including errors in the recognition of revenue related to certain contracts, errors in the recording of certain deferred tax accounts and the misclassification of certain expenses in earlier periods as well as the possible misuse of accounting reserves and the understatement of backlog, Comverse Technology did not release earnings for the fiscal year ended Jan. 31, 2006, or for any subsequent fiscal quarter. About Comverse Technology Comverse Technology, Inc. (NASDAQ: CMVT) -- http://www.comverse.com/-- provides software and systems that enable network-based multimedia enhanced communication and billing services. Over 450 communication and content service providers in more than 120 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. Comverse has offices all over the world, including Indonesia, Malaysia and the Philippines. The Troubled Company Reporter - Asia Pacific reported on Jan. 4, 2007, that Standard & Poor's Ratings Services said that it is leaving its 'BB-' corporate credit and senior unsecured debt ratings on New York, N.Y.-based Comverse Technology Inc. on CreditWatch with negative implications, where they were placed on March 15, 2006. GARUDA INDONESIA: Jet Crashes on Landing in Yogyakarta ------------------------------------------------------ A PT Garuda Indonesia Airline Boeing 737-400 plane carrying 140 people burst into flames on landing at Yogyakarta airport, Bloomberg News reports, citing Indonesian Transport Minister Hatta Rajasa. Rescuers have evacuated 97 people, Bloomberg's latest update says citing Cabinet Secretary Sudi Silalahi. Twenty-three people have died in the crash, health ministry national crisis center chief Rustam Pakaya told Reuters in a text message. According to Reuters, the flight was carrying some Australian diplomats, officials and journalists who had been accompanying Foreign Minister Alexander Downer, who was not aboard, on a visit to Indonesia. Bloomberg notes of two recent plane crashes in Indonesia. In January, a PT Adam Skyconnection Airlines Boeing Co. 737-300 plane plunged into the ocean off the coast of Indonesia's Sulawesi island and another plane broke up on landing in February, the news agency relates. Bloomberg says that the recent airline accidents have prompted President Susilo Bambang Yudhoyono to order an investigation into the country's transportation safety standards. "It's a serious problem when you have two fatal crashes in a short period of time," Bloomberg quotes Jim Eckes, managing director of Indoswiss Aviation as saying. "There's a lot of indication that airlines in Indonesia are not being maintained properly or that pilot training isn't up to par." About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves another 10 domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which were due on December 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before, the report discloses. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter - Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. Reuters reported that Garuda's outstanding debt, mostly owed to the ECA, fell to US$749 million as of November 2006 from US$794.5 million by the end of 2005. GENERAL NUTRITION: Consent Deadline on Senior Notes Expires ----------------------------------------------------------- GNC Parent Corporation, the parent company of General Nutrition Centers, Inc., revealed that with respect to Parent's previously disclosed tender offer to purchase any and all of its outstanding Floating Rate Senior PIK Notes due 2011, Parent has received valid tenders and consents representing a majority of the aggregate principal amount of Parent Notes outstanding as of the Consent Date. Parent executed the supplemental indenture relating to the Parent Notes, which became effective upon execution but will not become operative until after acceptance of, and final payment for, the Parent Notes on the Payment Date. In addition, Centers with respect to its previously announced tender offer to purchase any and all of each of its outstanding 8-5/8% Senior Notes due 2011 and 8-1/2% Senior Subordinated Notes due 2010 Centers has received valid tenders and consents representing a majority of the aggregate principal amount of each of the Centers Notes outstanding as of the Consent Date. Centers also said that it executed the supplemental indentures relating to each of the Centers Notes, which became effective upon execution but will not become operative in each case until after acceptance of, and final payment for, the respective Centers Notes on the Payment Date. The consent deadline pursuant to the terms of the offers to purchase and consent solicitation statements for each of the Parent Notes and the Centers Notes. In each case, rights to withdraw tendered Notes and to revoke delivered consents terminated on the Consent Date, except in limited circumstances or as otherwise required by law. Centers also disclosed that the consideration payable for each of the Centers Notes given the expected expiration date of 12:00 midnight, New York City time, on March 15, 2007 and the payment date of March 16, 2007, is as follows: -- Holders who validly tendered and did not withdraw their Centers Senior Notes and related consents before the Consent Date will receive, for each US$1,000 principal amount of Centers Senior Notes tendered, tender offer consideration equal to US$1,066.40, which includes a US$30 consent payment. Holders who tender their Centers Senior Notes and deliver their consents after the Consent Date, but before the Expiration Date, will receive, for each US$1,000 principal amount of Centers Senior Notes tendered, tender offer consideration equal to US$1,036.40. Accrued and unpaid interest will be paid on all Centers Senior Notes tendered and accepted for purchase. -- Holders who validly tendered and did not withdraw their Centers Senior Sub Notes and related consents before the Consent Date will receive, for each US$1,000 principal amount of Centers Senior Sub Notes tendered, tender offer consideration equal to US$1,061.35, which includes the Consent Payment. Holders who tender their Centers Senior Sub Notes and deliver their consents after the Consent Date, but before the Expiration Date, will receive, for each US$1,000 principal amount of Centers Senior Sub Notes tendered, tender offer consideration equal to US$1,031.35. Accrued and unpaid interest will be paid on all Centers Senior Sub Notes tendered and accepted for purchase. The tender offers and consent solicitations for each of the Notes are being conducted in connection with the previously announced acquisition of Parent by an affiliate of Ares Management LLC and the Ontario Teachers' Pension Plan. J.P. Morgan Securities Inc. and Goldman, Sachs & Co. are the Dealer Managers for each of the tender offers and Solicitation Agents for each of the consent solicitations. 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. TELKOMSEL: Adds Two Million New Subscribers this Year ----------------------------------------------------- PT Telekomunikasi Selular has added about two million new users so far this year, signalling growth of around 6% from year-end levels, Reuters News reports. According to the report, Telkomsel Marketing General Manager Nirwan Lesmana was optimistic that the company would attract 9.5 million new users this year. The report notes that Mr. Lesmana said that currently they have 37 million users, up by around 2 million from 34.9 million last year, with 95% of these customers are prepaid users. Mr. Lesmana said that the company is optimistic that their 9.5- million target customers for this year can be achieved with the hope that they can even exceed it, the report relates. The company also expects the number of users industry wide would increase by 18 million this year, Mr. Lesmana added. About Telkomsel PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/-- is the leading operator of cellular telecommunications services in Indonesia by market share. By the end of June 2006, Telkomsel had close to 29.3 million customers, which based on industry statistics represented a market share of more than 50%. Telkomsel provides GSM cellular services in Indonesia, through its own nationwide Dual band 900/1800 MHz GSM network, an internationally, through 259 international roaming partner in 53 countries as of June 2006. The company provides its subscribers with the choice between two prepaid cards-simPATI and kartuAs of a pre-paid simPATI service, or the post-paid kartuHALO service, as well as a variety of value-added services and programs. A Troubled Company Reporter - Asia Pacific report that Fitch Ratings, on August 18, 2006, upgraded PT Telekomunikasi Selular's long-term foreign currency issuer default rating to 'BB' from 'BB-'. ========= J A P A N ========= FORD MOTOR: Signs Deal Selling APCO to Trident IV -------------------------------------------------- Ford Motor Company has entered into a definitive agreement to sell Automobile Protection Corporation to Trident IV, L.P., a private equity fund managed by Stone Point Capital LLC. The transaction is the result of the review of strategic options for the business announced by Ford on Oct. 11, 2006. The sale is expected to close during the second quarter and is subject to customary closing conditions, including applicable regulatory approvals. Terms and conditions specific to the agreement are not being disclosed at this time. Last week, Ford estimated US$11,182 million in total life-time costs for restructuring actions. Of the total US$11,182 million of estimated costs, Ford says that US$9,982 million has been accrued in 2006 and the balance, which is primarily related to salaried personnel-reduction programs, is expected to be accrued in the first quarter of 2007. The company expects a curtailment gain for other postretirement employee benefit obligations related to hourly personnel separations that occur in 2007, which gain the company expects to record in 2007. Of the estimated costs, those relating to Job Bank Benefits and personnel-reduction programs also constitute cash expenditure estimates. The restructuring cost estimates relate to the automaker's previously announced commitment to accelerate its restructuring plan, referred to as Way Forward plan. The "Way Forward" plan includes closing plants and laying off up to 45,000 employees. About APCO APCO, a wholly owned subsidiary of Ford Motor Company, was purchased by Ford Motor Company in July 1999. APCO offers vehicle service contracts and related after-market products to dealers of all makes and models. About Trident Stone Point Capital is a global private equity firm based in Greenwich, Conn., that manages the Trident Funds and has raised more than $8 billion in committed capital to make investments in the global insurance and financial services industries. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. The company also has operations in Japan. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. after the company increased the size of its proposed senior secured credit facilities to between US$17.5 billion and US$18.5 billion, up from US$15 billion. The TCR reported on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of both the secured facilities and the senior unsecured convertible notes being offered. On Dec. 5, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. GAP INC: Earns US$219 Million for Period Ended February 3 --------------------------------------------------------- Gap Inc. earned US$219 million on net revenues of US$4.9 billion for the 14 weeks ended Feb. 3, 2007, compared to net income of US$337 million on US$4.8 billion of net revenues for the 13 weeks ended Jan. 28, 2006. The company also earned US$778 million on US$15.9 billion of net revenues for the 53 weeks ended Feb. 3, 2007, compared to a net income of US$1.1 billion on net revenues of US$16 billion for the 52 weeks ended Jan. 28, 2006. The company noted that fiscal year 2006 had 53 weeks versus 52 weeks in fiscal 2005. "We were not satisfied with our 2006 results and are taking action," said Bob Fisher, interim president and chief executive officer of Gap Inc. "In 2007, we are focusing on three priorities: fixing our core business by creating the right product and outstanding store experiences; retaining and developing the best talent in the industry; and examining our organizational structure to ensure that we enable our brands to make decisions and effect change more efficiently. I am confident that we are taking the necessary actions to revitalize our brands." Since January 2007, the company has taken the following actions: * Leadership changes. The company's board of directors announced a change in the chief executive officer position. Mr. Fisher, the company's current non-employee chairman of the board of directors, stepped in to serve as interim president and chief executive officer. The company is in the final stages of selecting a search firm for a permanent chief executive officer. In addition, the company announced Marka Hansen, former president of Banana Republic, as the new president of Gap Brand and Michael Cape as the new executive vice president of marketing for Old Navy. * Conversion of Old Navy's Outlet stores into Old Navy stores. In order to drive improved returns and leverage its existing retail channel, the company made the decision in February to convert its 45 Old Navy Outlet stores into stand-alone Old Navy stores. The company expects the conversion to be completed by October 2007. * Closure of distribution facility. As part of the company's on-going assessment of its network capacity, it made the decision in February to close a distribution facility in Hebron, Kentucky. * Closure of Forth & Towne. After thorough analysis revealed that the concept was not demonstrating enough potential to deliver acceptable long-term return on investment, the company announced on Feb. 26, 2007 that it would close Forth & Towne. The company plans to close all 19 stores by the end of June 2007. Net sales for the 14 weeks ended Feb. 3, 2007, rose 2% to US$4.9 billion, compared with US$4.8 billion for the 13 weeks ended Jan. 28, 2006. Comparable store sales for the 13 weeks ended Jan. 27, 2007 decreased 7%, compared with a decrease of 6% for the fourth quarter of the prior year. Net sales for the 53 weeks ended Feb. 3, 2007, were US$15.9 billion. Net sales were US$16 billion for the 52 weeks ended Jan. 28, 2006. Comparable store sales for the 52 weeks ended Jan. 27, 2007 decreased 7%, compared with a decrease of 5% in the prior year. The company's online sales for the 53 weeks ended Feb. 3, 2007 increased 23 percent compared with the 52 weeks ended Jan. 28, 2006. About Gap Inc. Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 7, 2007, that Moody's Investors Service downgraded Gap Inc. senior unsecured notes to Ba1 and assigned a corporate family rating of Ba1 and speculative grade liquidity rating of SGL-1. The rating outlook is stable. The following ratings are downgraded: For Gap Inc.: Senior unsecured notes to Ba1 (LGD4-58%) from Baa3; For Gap (Japan) K.K.: Senior unsecured notes guaranteed by Gap Inc. to Ba1 (LGD4-58%) from Baa3. The following ratings are assigned: For Gap Inc.: Corporate family rating at Ba1; Probability of default rating at Ba1; Speculative grade liquidity rating at SGL-1. NIKKO CORDIAL: S&P Puts Group Companies' Ratings on CreditWatch --------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch with developing implications its 'BBB-' long-term counterparty credit and senior unsecured debt ratings on Nikko Cordial Corp. At the same time, Standard & Poor's also placed on CreditWatch with developing implications its 'A-3' short-term counterparty credit rating on Nikko Cordial Corp., its 'BBB' long-term counterparty credit and 'A-2' short-term counterparty credit ratings on Nikko Cordial Securities Inc., and its 'A' long-term counterparty credit rating on NikkoCiti Trust & Banking Corp. The CreditWatch listing follows the announcement by U.S.-based Citigroup Inc. (AA/Stable/A-1+) that it will purchase over 50% of Nikko Cordial group's outstanding shares with the aim of making it a consolidated subsidiary. The 'A-1' short-term counterparty credit rating on NikkoCiti Trust & Banking Corp. remains on CreditWatch with negative implications. This is because even if the long-term counterparty credit rating on NikkoCiti Trust & Banking is raised by one notch, there is a high likelihood that the bank's short-term rating will be affirmed. The ratings on the three companies were first placed on CreditWatch on Dec. 26, 2006, following the resignations of the Nikko Cordial group's president and chairman over the group's disclosure problems. Nikko Cordial group's operating base suffered a blow from the impact of faulty accounting practices. If the takeover bid proceeds according to plan, the heightening concerns over Nikko Cordial group's reputation risk and fundraising will recede, as the group will be backed by Citigroup's creditworthiness. In addition, an expansion in profits for Nikko Cordial group, such as in its asset consulting business, from the strengthening of ties with Citigroup is also expected. As a result, the likelihood exists that the company may be upgraded by a few notches. However, the degree of the upgrade depends on Citigroup's ownership percentage following the takeover bid, cohesiveness with the Nikko Cordial group, and strategies going forward. Conversely, if the takeover bid fails to solidify, and Citigroup's support for the Nikko Cordial group becomes unclear, the ratings on the Nikko Cordial group companies may be affirmed or even lowered. As the rating on NikkoCiti Trust & Banking already incorporates to a high degree the support from Citigroup, even if Nikko Cordial group companies are upgraded, there is a low likelihood that NikkoCiti Trust & Banking will also be upgraded. However, NikkoCiti Trust & Banking remains on CreditWatch as its performance is indirectly influenced by the credit quality of the Nikko Cordial group, which will see major changes, including group-wide restructuring. 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. NIKKO CORDIAL: Fitch Revises Rating Watch To Evolving ----------------------------------------------------- Fitch Ratings, on March 7, 2007, revised the Rating Watch on the foreign and local currency Issuer Default and Individual ratings of Nikko Cordial Corporation and Nikko Cordial Securities Inc. to Evolving from Negative. These ratings were placed on Watch Negative on Dec. 21, 2006. The ratings are as follows: NCC: Long-term IDR 'BBB-', the Short-term IDR 'F3', Individual rating 'C/D' and Support rating '5'. Nikko Cordial Securities: Long-Term 'BBB+', Short-term 'F2', Individual 'C' and Support rating '4'. On March 6, Citigroup Inc. of the US and NCC announced a strategic business and capital alliance in which Citigroup will launch a tender offer for 100% of NCC within a week. The success of the bid -- which Citigroup judges to be acquisition of a more than 50% stake in NCC -- is unknown as yet. However in the meantime Citigroup and various Nikko Cordial group companies, including NCC itself, Nikko Cordial Securities and Nikko Citigroup Limited -- which is the JV between NCC (51%) and Citigroup (49%) -- signed an agreement that Citigroup will provide financing to Nikko Citigroup Limited in case of any disruption that may result, if Tokyo Stock Exchange decides on de-listing of NCC stocks. Fitch believes it is in the best interests of Citigroup to protect the franchise, and the prospect of support mitigates our concern which led to the ratings being placed on Watch Negative at the first place. Fitch will continue to monitor developments. An upward rating change could result if Citigroup successfully obtains a controlling stake in NCC. However, failure of the tender offer cannot be ruled out at the moment, at which time we envisage the credit support agreement would lapse. No Impact on Citigroup's Credit Ratings from Planned Tender Offer for Nikko Cordial Fitch said that Citigroup's credit ratings will not be impacted by the announcement to launch a tender offer for 100% of the shares of Nikko Cordial. The potential acquisition of a major stake in Nikko Cordial provides Citigroup an opportunity to capitalize on one of the largest franchises in the Japanese securities business. Citigroup Inc.'s ratings are Long-term Issuer Default 'AA+' Outlook Stable; Short-term 'F1+'; Individual 'A' and Support '5'. The tender offer is designed to protect Citigroup's 4.9% interest in Nikko Cordial as well as its interests in the investment banking joint venture Nikko-Citigroup which had been operating quite successfully until December 2006. The offer is expected to commence shortly. Citigroup's credit ratings are supported by leading franchises in global corporate and retail banking and good financial performance. Announced acquisitions are in line with its goals of expanding retail businesses and improving operating leverage. Importantly, Citigroup remains committed to the maintenance of strong capital ratios. The integration of Nikko Cordial is an opportunity to improve its market share in Japan in retail businesses. Operations are expected to be immediately accretive. About Citigroup Headquartered in New York, Citigroup -- http://www.citigroup.com/-- is today's pre-eminent financial services company, with some 200 million customer accounts in more than 100 countries. Other major brand names under Citigroup's trademark red umbrella include Citi Cards, CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners Club, The Citigroup Private Bank, and CitiCapital. About Nikko Cordial Headquartered in Tokyo, Japan, Nikko Cordial Corporation -- http://www.nikko.jp/-- is mainly engaged in the provision of financial services in the securities-related field. The Company operates in four business segments. The Retail segment provides consulting services for financial products management. The Asset Management segment provides asset management services for individual, corporate and foreign investors. The Investment Banking segment provides corporate finance and capital market services, mergers and acquisitions, advisory services, trading services for institutional investors and research services. The Merchant Banking segment is involved in the investment of corporate issued stocks, bonds, securities-related financial products and other financial products. Nikko Cordial has 62 consolidated subsidiaries. It has oversea operations in the United States, the United Kingdom, Luxemburg and Singapore. The company has a global network. NIKKO CORDIAL: Moody's To Review Issuer Ratings for Upgrade ----------------------------------------------------------- Moody's Investors Service placed the Baa3 issuer rating of Nikko Cordial Corporation, and the Baa2 issuer rating/Commercial Paper P-2 rating of Nikko Cordial Securities under review for upgrade. This follows the announcement of a comprehensive strategic alliance between Citigroup and NCC under which Citigroup will launch a tender offer to become NCC's majority shareholder. The ratings were previously on review for downgrade, due to the ongoing impact of the accounting fraud and potential delisting of Nikko Cordial Corporation. The Aa2/P-1 long-term/short-term ratings of Nikko Citigroup are unaffected. Moody's views the potential takeover of Nikko Cordial Group by Citigroup (rated Aa1) as positive for the debt ratings of NCG. A takeover is expected to stabilize the ongoing business activities of NCG, and provide reassurance regarding liquidity and capital adequacy at the firm. Moody's also notes that Citigroup has entered into a credit support agreement which underpins NCG's creditworthiness even in the event the firm is delisted prior to the bid being completed. Moody's commented that the new review would focus on the details of the acquisition and the integration plans. Moody's would expect to incorporate a high level of parental support in the future ratings of NCG, if Citigroup takes majority ownership of the firm and demonstrates its commitment to making it a core part of its strategy for its business in Japan. Moody's will also examine how smoothly Citigroup can expect to manage the integration of NCG. Whilst noting the benefits of the well-established relationship between the two firms, Moody's also considers the cultural and strategic gap between the two firms to be significant, and to have presented challenges to the wholesale securities JV, Nikko Citigroup. Moody's expects to be able to conclude the ratings review upon the completion of the bid. The following ratings were affected; Baa3 Issuer Rating of Nikko Cordial Corporation -- placed on review for upgrade Baa2 Issuer Rating and P-2 Commercial Paper Rating of Nikko Cordial Securities -- placed on review for upgrade About Citigroup Headquartered in New York, Citigroup -- http://www.citigroup.com/-- is today's pre-eminent financial services company, with some 200 million customer accounts in more than 100 countries. Other major brand names under Citigroup's trademark red umbrella include Citi Cards, CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners Club, The Citigroup Private Bank, and CitiCapital. About Nikko Cordial Headquartered in Tokyo, Japan, Nikko Cordial Corporation -- http://www.nikko.jp/-- is mainly engaged in the provision of financial services in the securities-related field. The Company operates in four business segments. The Retail segment provides consulting services for financial products management. The Asset Management segment provides asset management services for individual, corporate and foreign investors. The Investment Banking segment provides corporate finance and capital market services, mergers and acquisitions, advisory services, trading services for institutional investors and research services. The Merchant Banking segment is involved in the investment of corporate issued stocks, bonds, securities-related financial products and other financial products. Nikko Cordial has 62 consolidated subsidiaries. It has oversea operations in the United States, the United Kingdom, Luxemburg and Singapore. The company has a global network. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 13, 2007, that Fitch Ratings has downgraded Nikko Cordial Corporation's Long- term foreign and local currency Issuer Default ratings to 'BBB-' from 'BBB', the Short-term foreign and local currency IDRs to 'F3' from 'F2', and the Individual rating to 'C/D' from 'C'. The TCR-AP reported on Dec. 22, 2006, that Fitch placed its ratings on Nikko Cordial Corp. and Nikko Cordial Securities Inc. on Rating Watch Negative following the decision announced on Dec. 18 by the Tokyo Stock Exchange to place the shares of NCC on its official watchlist pending the full investigation into reported accounting breaches by the company. As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities and Exchange Surveillance Commission began investigating Nikko Cordial for falsifying its annual financial statements for the business year ended March 30, 2005, declaring JPY14 billion in false profits, and using them to procure money from the market. TENNECO INC: Moody's Rates US$830 Million Loans at Ba1 ------------------------------------------------------ Moody's Investors Service has assigned Ba1 ratings to the new first-lien senior secured credit facilities of Tenneco Automotive, Inc. In a related action, Moody's has affirmed these ratings: * the company's Corporate Family Rating at B1; and, * the ratings on the senior secured second-lien notes and senior subordinated notes, at B1 and B3, respectively. The outlook remains stable. Tenneco's business profile as an automotive component supplier is strong, benefiting from good geographic and customer diversity and well balanced exposures to the original equipment and aftermarket segments. The company's leading positions in the markets it serves are well defended by ongoing investment in new technologies. Tenneco's emission technologies for diesel engines and portfolio of ride control technologies for passenger and commercial vehicles should enable it to increase its content on vehicle platforms and demonstrate strong revenue growth even as overall automotive demand weakens. These attributes are potentially supportive of a higher rating under Moody's rating methodology for auto parts suppliers. However, the ratings balance these strengths against the company's high financial leverage and moderate profit margins; which yield overall financial metrics more consistent with the assigned rating. For the fiscal year ending Dec. 31, 2006. Tenneco's debt/EBITDA is approximately 4.3x, while EBIT/Interest is approximately 1.5x. Going forward, Tenneco expects increased revenue to result from higher booked business in emission controls and greater penetration in the commercial vehicle exhaust segment. Margins should be stable through this time frame as continuing industry pressures and the greater amounts of lower margin substrate sales in revenue are offset by new business growth and continuing efforts to control costs. Nevertheless, the company will face some headwinds from lower production volumes at key automotive OEMs, and ongoing commodity cost volatility. The refinancing should also moderate borrowing costs and enhance the company's overall financial flexibility. Upon closing of the new senior secured credit facilities Tenneco is expected to have full access to its US$375 million revolving credit and unused availability under the US$177.5 million letter of credit/revolving credit facility. The company also maintains large cash balances which could be used to reduce debt, although indenture provisions currently place some limitations on the ability to reduce some of the company's higher coupon obligations during the near term. Ratings assigned: * Ba1, LGD2, 16% to the five-year US$375 million first lien senior secured revolving credit facility; * Ba1, LGD2, 16% to the seven-year US$177.5 million first lien senior secured L/C and revolving credit facility; * Ba1, LGD2, 16% to the five-year US$100 million term loan A; * Ba1, LGD2, 16% to the seven-year US$177.5 million first lien senior secured term Loan B; Ratings affirmed: * B1 Corporate Family rating; * B1 Probability of Default rating; * B1 rating for the US$475 million 10.25% guaranteed senior secured second-lien notes due 2013, with the LGD Assessment changed to LGD3, 43% from LGD3, 42%; * B3, LGD6, 92% rating for the 8.625% guaranteed senior subordinated unsecured notes due November 2014, These ratings will be withdrawn upon their refinancing: * Tenneco's guaranteed credit facilities consisting of: -- Ba1, LGD2, 16% on the US$320 million first-lien senior secured revolving credit facility due December 2008; -- Ba1, LGD2, 16% on the US$155 million first-lien senior secured term loan B letter of credit/revolving loan facility due December 2010; -- Ba1, LGD2, 16% on the US$356 million remaining first- lien senior secured term loan B facility due December 2010; The last rating action was on Sept. 22, 2006 when the LGD Methodology was applied. The rating outlook is stable. Future events that could improve Tenneco's rating or rating outlook include the generation of material new business awards that facilitate improved margins coupled with debt reduction that enhances overall credit metrics. Consideration for a higher rating or outlook could arise if any combination of these factors were to increase EBIT/Interest coverage to over 2.0x or reduce leverage below 4.0x. Assuming no protracted disruptions in automotive production, downward pressure on the ratings is not expected during the near term. Consideration for a lower outlook or rating could arise if credit metrics were to deteriorate such that leverage, measured by Debt/EBITDA, were to exceed 5.0x or if EBIT/Interest coverage fell to 1.0x on a sustained basis. The ratings could also be adversely affected if the company's current sound liquidity profile were to weaken. About Tenneco Inc. Headquartered in Lake Forest, Illinois, Tenneco Inc. -- http://www.tenneco.com/-- is a leading manufacturer of automotive ride control and emissions control products and systems for both the worldwide original equipment market and aftermarket. Leading brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, among others. TENNECO INC: S&P Rates Planned US$830 Mil. Bank Facilities at BB ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' bank loan ratings and recovery ratings of '1' to Tenneco Inc.'s proposed US$830 million bank facilities, indicating expectations for recovery of 100% of principal in the event of a payment default. In addition, a recovery rating of '3' was assigned Tenneco's existing US$475 million 10.25% senior secured notes due Jul. 15, 2013, indicating Standard & Poor's expectation of meaningful prospects for recovery in the event of a payment default. The rating was also raised to 'B+' from 'B'. Standard & Poor's will withdraw its ratings on Tenneco's existing bank facilities upon the closing of the proposed bank facilities. Tenneco's ratings reflect the company's weak business profile and highly leveraged, but stable, financial profile. Tenneco's credit measures modestly slipped in 2006 amid a difficult environment in the second half of the year. The company benefits from good diversity among its customers, business platforms, and regions of operation. However, Tenneco is still exposed to declining vehicle production by its large customers; General Motors Corp. and Ford Motor Co. About Tenneco Inc. Headquartered in Lake Forest, Illinois, Tenneco Inc. -- http://www.tenneco.com/-- is a leading manufacturer of automotive ride control and emissions control products and systems for both the worldwide original equipment market and aftermarket. Leading brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, among others. TENNECO INC: Timothy Donovan Resigns as Executive Vice-President ---------------------------------------------------------------- Tenneco Inc. disclosed that Timothy R. Donovan, executive vice president, general counsel and member of the board of directors, is leaving the company to pursue another opportunity. His resignation from Tenneco is effective Mar. 16, 2007. His resignation from the company's board of directors was effective February 28, 2007. Tim joined Tenneco as senior vice president and general counsel in August 1999. Both internal and external candidates will be considered to fill the general counsel position. "Tim has played an important role in establishing Tenneco as a successful stand-alone company. Over the past seven years, his leadership and strong legal counsel have greatly facilitated Tenneco's restructuring efforts and growth strategies around the world," said Gregg Sherrill, chairman and CEO, Tenneco. "On behalf of all Tenneco employees, I thank Tim for his outstanding contributions and dedication. We wish him much success in his new endeavor." About Tenneco Inc. Headquartered in Lake Forest, Illinois, Tenneco Inc. -- http://www.tenneco.com/-- is a leading manufacturer of automotive ride control and emissions control products and systems for both the worldwide original equipment market and aftermarket. Leading brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, among others. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Automotive and Equipment sectors, the rating agency confirmed its B1 Corporate Family Rating for Tenneco Inc. ========= K O R E A ========= ACTUANT CORP: Inks Third Amendment to JP Morgan Credit Agreement ---------------------------------------------------------------- Actuant Corporation entered into a Third Amendment to the Amended and Restated Credit Agreement, dated as of Feb. 16, 2007, with JP Morgan Chase Bank National Association as the administrative agent. The agreement amends and modifies the company's amended and restated credit agreement, dated as of December 27, 2004. The company said that the third amendment increased the existing term loan facility from US$250 million to US$400 million, which is in addition to the existing US$250 million revolving credit facility, eliminates amortization of the term loan such that the entire amount of the term loan matures on Dec. 22, 2009. Additionally, the third amendment permits the company future incremental term loans and increases in aggregate revolving loan commitments of up to an additional aggregate principal amount of $200 million. It also increases certain limits concerning the incurrence of other indebtedness. The company used the proceeds from the US$150-million increase in the term loans to pay down amounts outstanding under the revolving credit facility and reduce commercial paper borrowings. About Actuant Corporation Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries, including Australia, China, Hong Kong, India, Japan, Taiwan and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from US$482 million to over US$1 billion and its market capitalization from US$113 million to over US$1.5 billion. The company employs a workforce of approximately 6,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. The Troubled Company Reporter - Asia Pacific reported on Oct. 24, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency affirmed its Ba2 Corporate Family Rating for Actuant Corporation. Additionally, Moody's held its Ba2 ratings on the company's US$250 million Senior Unsecured Revolver Due 2009, and US$250 million Senior Term Loan Due 2009. Moody's assigned those debentures an LGD3 rating suggesting lenders will experience a 43% loss in the event of a default. Actuant Corp.'s 2% Convertible Senior Subordinated Debentures due 2023 carry Standard & Poor's B+ rating. ARAMARK CORP: Subsidiary Inks Beverage Service Deal with NetJets ---------------------------------------------------------------- ARAMARK Refreshment Services has been selected by NetJets Services Inc. to provide beverage service for its employees and business clients in its Columbus, Ohio location. "At ARAMARK, we pride ourselves on providing world-class experiences, environments and outcomes for our clients, and for their customers and employees," said Michael Oppenheim, executive vice president of ARAMARK Refreshment Services. "We are pleased to work with NetJets to help get their employees and the executives they serve motivated, energized, and on their way to a great business day." NetJets Services Inc. is a NetJets company. NetJets provides private aviation solutions globally that allow individuals and companies to buy a share of a private business jet at a fraction of the cost of whole aircraft ownership, and guarantees availability 365 days a year with just a few hours' notice. NetJets also offers aircraft management, charter management, and on-demand charter services through its subsidiary, Executive Jet Management. NetJets provides the highest quality services to clients flying on NetJets aircraft, from managing ground transportation to ensuring an executive's favorite food, newspapers and other amenities are onboard. For employees, NetJets strives to provide a comfortable, satisfying work environment to ensure its workforce stays positive and productive. As part of NetJets' strategy to keep employees and business clients happy, ARAMARK is providing coffee service from Green Mountain Coffee Roasters for approximately 2,000 NetJets employees, as well as for nearly 100 aircraft. Green Mountain Coffee provides an assortment of gourmet specialty coffees, including organic, Fair Trade, exotic and seasonal blends. ARAMARK is also supplying NetJets with essentials for its coffee areas, including paper goods and creamers. About Green Mountain Coffee Roasters Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) -- http://www.GreenMountainCoffee.com/--is recognized as a leader in the specialty coffee industry for its award-winning coffees and successful business practices. The Company sells over 100 high quality selections, including Fair Trade CertifiedTM and organic coffees under the Green Mountain Coffee Roasters(R) and Newman's Own(R) Organics brands. While the majority of the Company's revenue is derived from its wholesale, direct mail, and e-commerce operations, it also owns Keurig, Incorporated, a pioneer and leading manufacturer of gourmet single-cup brewing systems. Green Mountain Coffee Roasters has been ranked No. 1 on the list of "100 Best Corporate Citizens" for the past two years, and has been recognized repeatedly by Forbes, Fortune Small Business, and the Society of Human Resource Management as an innovative, high-growth, socially responsible company. About ARAMARK Refreshment Services Headquartered in Philadelphia, Pennsylvania, ARAMARK Corporation (NYSE:RMK) -- http://www.aramark.com/-- is a leader in professional services, providing award-winning food services, facilities management, and uniform and career apparel to health care institutions, universities and school districts, stadiums and arenas, and businesses around the world. In FORTUNE magazine's 2006 list of "America's Most Admired Companies," ARAMARK was ranked number one in its industry, consistently ranking since 1998 as one of the top three most admired companies in its industry as evaluated by peers and industry analysts. The company was also ranked first in its industry in the 2006 FORTUNE 500 survey. ARAMARK has approximately 240,000 employees serving clients in 20 countries, including Japan and Korea. * * * As reported in the Troubled Company Reporter-Europe on Feb. 14, 2007, Fitch has downgraded the Issuer Default Rating for both ARAMARK Corporation and its wholly owned subsidiary, ARAMARK Services, Inc. to 'B' from 'BB-' and has rated the new financing of ARAMARK Corporation: -- US$600 million revolving senior secured credit facility due 2013 'BB-/RR2'; -- US$4.15 billion senior secured term loans due 2014 'BB- /RR2'; -- US$250 million senior secured synthetic letter of credit facility due 2013 'BB-/RR2'; and -- US$1.78 billion senior unsecured notes due 2015 'B-/RR5'. In addition, the rating for the US$250 million senior unsecured notes due 2012 was lowered to 'CCC+/RR6' from 'BB-'. The ratings are removed from Rating Watch Negative. Fitch said the Rating Outlook is Stable. BIOVEST INT'L: Dec. 31 Balance Sheet Upside Down by US$14 Mil. -------------------------------------------------------------- Biovest International, Inc. filed its quarterly financial statements for the three-month period ended Dec. 31, 2006, with the United States Securities and Exchange Commission. At Dec. 31, 2006, the company's balance sheet showed US$8,960,000 in total assets and US$17,034,000 in total liabilities, resulting in a US$14,074,000 stockholders' deficit. At Sept. 30, 2006, stockholders' deficit stood at US$16,520,000. The company's December 31 balance sheet also showed strained liquidity with US$4,122,000 in total current assets available to pay US$15,955,000 in total current liabilities coming due within the next 12 months. For the three-month period ended Dec. 31, 2006, the company reported a US$23,950,000 net loss on US$1,327,000 of total revenues, compared to a net loss of US$3,014,000 on total revenues of US$1,085,000 in the same prior year period. Total revenues for the three months ended Dec. 31, 2006 was US$1.3 million which is an increase of US$0.2 million over the three months ended Dec. 31, 2005. This represents an increase of 18%. This quarterly increase is primarily due to growth in the sales of instrument hardware and disposables. Research and development expenses for the three months ended Dec. 31, 2006 were US$2.9 million compared to the same prior year period of US$2.8 million. These costs relate to vaccine production supporting the on-going clinical trial and design engineering expense associated with design of the AutovaxID. The company has historically had significant losses from operations and these losses continued during the three months ended Dec. 31, 2006 resulting in a net operating cash flow deficit of US$4 million. At Dec. 31, 2006, the company had an accumulated deficit of approximately US$76.2 million and working capital deficit of approximately US$11.8 million. It has been meeting its cash requirements through proceeds from its cell culture and instrument manufacturing activities, various financing transactions, the use of cash on hand, short-term borrowings (primarily from affiliates), the sale of stock to and demand notes from Accentia Biopharmaceuticals, Inc., and by managing its accounts payable. A full-text copy of the company's financial statements for the quarterly period ended Dec. 31, 2006, is available for free at http://researcharchives.com/t/s?1a7e Going Concern Doubt Aidman Piser & Company P.A., in Tampa, Florida, expressed substantial doubt about Biovest International's ability to continue as a going concern after auditing the company's financial statements for the year ended Sept. 30, 2006. The auditing firm cited that the company incurred significant losses and used cash in operating activities during the years ended Sept. 30, 2006 and 2005, and had working capital and shareholders' deficits at Sept. 30, 2006. About Biovest International BioVest International, Inc. -- http://www.biovest.com/-- is a biotechnology company that provides cell culture services to research institutions and the biopharmaceutical industry. BioVest also develops, manufactures and markets cell culture systems. For over 10 years the company has been designated, by the National Institutes of Health, as the National Cell Culture Center. Through its proprietary technology, BioVest provides cell culture services to research institutions, biotechnology companies and the pharmaceutical industry. The company is the holder of a Cooperative Research and Development Agreement with the National Cancer Institute for the commercialization of a personalized biologic therapeutic cancer vaccine for the treatment of non-Hodgkin's lymphoma currently in its phase III pivotal trial. The company has sales offices in China, Europe, Japan, Korea, Singapore, and Taiwan. CURON INC: Amends KRW2.37-Billion Contract with Ubistar ------------------------------------------------------- Curon Inc. has amended its supply contract with Ubistar Co. Ltd., Reuters Key Development relates. Pursuant to the amended contract, Curon will supply RNM- T100(2GB) navigations instead of RNM-T100 PLUS (2GB) navigations to Ubistar, the report says. The contract is worth KRW2.37 billion and is valid from Feb. 1, 2007, to Jan. 31, 2008. Seoul-based Curon Inc. -- http://www.curon.co.kr/-- is engaged in the provision of diaphragms, vaporizers and Video On Demand (VOD) servers. The company provides three main products: diaphragms and vaporizers, which are used in gas meters, speakers, automobiles, medical applications, heavy machinery, industrial valves and pumps; VOD servers such as StreamXpert, which supply High Definition Television (HDTV) multimedia content; and Telematics, which are used in entertainment, games, digital multimedia players, traffic information, satellites, digital versatile discs (DVDs), TVs and radios. Korea Ratings gave Curon Inc.'s US$10 million convertible bond a 'B-' rating with a stable outlook on Feb. 22, 2007. CURON INC: Names Kim Seh Il as New CEO -------------------------------------- Kim Seh Il has been appointed as Curon Inc. Chief Executive Officer, replacing Lee Seung Noh, effective Feb. 12, 2007. Reuters Key Developments notes that Mr. Kim is the company's largest shareholder. Seoul-based Curon Inc. -- http://www.curon.co.kr/-- is engaged in the provision of diaphragms, vaporizers and Video On Demand (VOD) servers. The company provides three main products: diaphragms and vaporizers, which are used in gas meters, speakers, automobiles, medical applications, heavy machinery, industrial valves and pumps; VOD servers such as StreamXpert, which supply High Definition Television (HDTV) multimedia content; and Telematics, which are used in entertainment, games, digital multimedia players, traffic information, satellites, digital versatile discs (DVDs), TVs and radios. Korea Ratings gave Curon Inc.'s US$10 million convertible bond a 'B-' rating with a stable outlook on Feb. 22, 2007. CURON INC: Completes 12.5-Mil. Rights Issue ------------------------------------------- Curon Inc. has completed its issuance of 12,500,000 common shares through a rights issue, Reuters Key Development reports. According to the report, the common shares have a par value and offer price of KRW500 and KRW820, respectively. This brings the company's total number of outstanding common shares to 28,096,389. The confirmed listing date is Feb. 13, 2007. Seoul-based Curon Inc. -- http://www.curon.co.kr/-- is engaged in the provision of diaphragms, vaporizers and Video On Demand (VOD) servers. The company provides three main products: diaphragms and vaporizers, which are used in gas meters, speakers, automobiles, medical applications, heavy machinery, industrial valves and pumps; VOD servers such as StreamXpert, which supply High Definition Television (HDTV) multimedia content; and Telematics, which are used in entertainment, games, digital multimedia players, traffic information, satellites, digital versatile discs (DVDs), TVs and radios. Korea Ratings gave Curon Inc.'s US$10 million convertible bond a 'B-' rating with a stable outlook on Feb. 22, 2007. DURA AUTOMOTIVE: Wants Exclusive Plan-Filing Period Extended ------------------------------------------------------------ Dura Automotive Systems Inc. and its debtor-affiliates ask the United States Bankruptcy Court for the District of Delaware to extend their exclusive periods: (i) to propose and file a plan of reorganization through and including May 23; and (ii) solicit acceptances of that plan through and including July 23. The Court will convene a hearing on March 21 at 10:00 a.m., to consider the Debtors' request. By application of Rule 9006-2 of the Local Rules of Bankruptcy Practice and Procedures of the United States Bankruptcy Court for the District of Delaware, the Debtors' exclusive periods are automatically extended until the conclusion of that hearing. Section 1121(b) of the Bankruptcy Code provides a debtor the exclusive right to file a plan of reorganization for an initial period of 120 days after the commencement of its Chapter 11 case. Section 1121(c)(3) provides that if a debtor files a plan of reorganization within the 120-day initial period, a debtor has 180 days after the commencement of the Chapter 11 case within which to solicit and obtain acceptances of its plan, at which time competing plans may not be filed by any party-in- interest. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that much has been accomplished to rehabilitate the Debtor, not only in the first 120 days of their Chapter 11 cases, but also in the months leading up to the Petition Date. Specifically, the Debtors have: -- ensured a smooth entry into Chapter 11 against a backdrop of continued deterioration in their domestic automotive industry; -- minimized the impact of the Chapter 11 on Dura Automotive Systems, Inc.'s non-debtor affiliates, ensuring that adequate liquidity is available as and when needed; -- engaged management in implementing their operational restructuring through the transfer of business from high to low-cost locations; -- conducted, with their advisors, a bottom-up analysis of their business on a location-by-location and part-by-part basis, and are now developing a transformational business plan based upon those analyses to reflect the changes in the automotive sector; -- augmented senior management to provide further support for their operational and financial restructuring; -- commenced negotiations with major customers, giving them reasons to return business to the Debtors; -- made significant progress in analyzing a potential avoidance action against the Second Lien Lenders based upon certain lien perfections issues, and assessing the potential impact of the litigation on the contours of a consensual plan; -- exchanged, and continues to exchange, substantial information with the Creditors Committee, the Second Lien Committee, and their advisors; and -- demonstrated a commitment to conduct the vast majority of the Chapter 11 tasks outside the courtroom on a consensual basis with its various constituencies. Extending the exclusive periods will permit the Debtors to develop an appropriate plan of reorganization that will best meet the creditors' needs and fit into the development of the Debtors' business plan, Mr. DeFranceschi tells the Court. Mr. DeFranceschi cites the Debtors' sufficiently large and complex cases, which involves 41 debtors, with two tranches of secured institutional debt that are the subject of an intricate intercreditor agreement and multiple issuances of unsecured institutional debt in addition to the standard classes of secured, priority, priority tax, and general unsecured claims. Adding complexity to the Debtors' prepetition financial balance sheet and equity structure is the potential avoidance action against the Second Lien Lenders, Mr. DeFranceschi relates. This potential litigation, he says, has taken time to analyze, and will continue to influence the course of the Debtors' Chapter 11 cases and the development of a plan of reorganization. Mr. DeFranceschi assures the Court that the extension is intended to facilitate an orderly, efficient and cost-effective process for the benefit of all creditors. About DURA Automotive Systems Inc. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia, namely in China, Japan and Korea. * * * The Troubled Company Reporter - Asia Pacific reported on Nov. 6, 2006, that Fitch Ratings placed one tranche from one public collateralized debt obligation and one tranche from private CDO on Rating Watch Negative following Dura Automotive Corp.'s filing for protection under Chapter 11. Standard & Poor's Ratings Services lowered its corporate credit rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The rating outlook is negative. * * * The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 14Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). MIJU STEEL: Establishes Overseas Subsidiary in Hong Kong -------------------------------------------------------- Miju Steel Co., Ltd., has established Miju Steel HK Ltd., a wholly owned subsidiary, in Hong Kong, Reuters Key Development says. The report notes that Miju Steel HK has a capital of KRW60,310,000. Headquartered in Incheon, South Korea, Miju Steel Co., Ltd. -- http://www.mijusteel.com/-- is engaged in the provision of steel pipes. The company produces three major products: electric resistance welded (ERW) carbon steel pipes which used for water supply facilities, buildings, bridges, bicycles, telegraph poles and hand rails; stainless steel pipes, which used for pharmaceutical, food and semiconductor factories, and spirally-welded steel pipes, which used for foundation of buildings, bridges and harbors. Korea Ratings gave the company's US$4,000,000 overseas bond with warrant a 'B+' rating with a stable outlook on August 9, 2006. WOORI BANK: Group Chairman to Focus on Privatization ---------------------------------------------------- New Woori Financial Group Chairman Bahk Byong-won said that he will stake his three-year term on the successful privatization of the state-owned lender without causing any major disturbances in the market, Na Jeong-ju writes for The Korea Times. "The top priority of my duties in Woori will be on its successful privatization to help the government recover its investment in the lender," the paper cites Mr. Bahk as saying. Mr. Bahk also said that he will focus on strengthening non- banking businesses, like investment banking and credit card divisions, to diversify Woori's income sources. About 93% of Woori's profits come from its banking business, The Korea Times notes. The paper says that Mr. Bahk will officially take over Woori at a regular shareholders' meeting scheduled for March 30, replacing current Chairman Hwang Young-key. According to the paper, Mr. Hwang sought for another three-year term, but was rejected by Woori's largest shareholder -- the Korea Deposit Insurance Corp. The KDIC earlier said it will sell 28% of its 78% stake this year, and begin efforts to find a new owner for the country's largest lender, The Korea Times recounts. According to the paper, the KDIC is a state-run deposit insurer, which acquired its stake in Woori through an investment of KRW12 trillion in taxpayers' money after the 1997-98 financial crisis. This year, Mr. Bahk is expected to push for the sale of stakes that are not tied to management rights, the paper says. The Korea Times relates that Mr. Bahk resigned from his post as the vice finance and economy minister to apply for the position of Woori chairman. His resignation has raised speculation that he had already gained the government's approval, the paper says. Unionists of Woori Bank and its affiliates have pledged to hold a strike in protest of Mr. Bahk's appointment, The Korea Times says. According to The Korea Herald, the strike will be held on March 26. Woori Bank -- http://www.wooribank.com/-- is a government-owned bank headquartered in Seoul, Korea. The bank was established in 2002, and includes the former Hanbit Bank, Sangup Bank and Hanil Bank. It is a part of the Woori Financial Group. It has branches all over the world, including in New York, Los Angeles, Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore, Moscow, London, and Dhaka. Moody's Investors Service gave Woori a 'D+' Bank Financial Strength Rating effective March 14, 2006. WOORI BANK: Regularizes 3,000 Contract Workers ---------------------------------------------- On March 1, 2007, Woori Bank granted full employee status to 3,000 short-term workers, The Hankyoreh reports. According to the report, Woori's move was aimed at eliminating job insecurity and increasing benefits for the contract workers. The Hankyoreh relates that the contract workers represent 23% of the bank's total employees, including 1,982 tellers, 548 phone counselors, and 546 paperwork assistants. The newly regularized employees' salaries will increase, but it will still only be 70%-80% of what the current regular employees earn, The Hankyoreh notes. The paper explains that the workers' regularization was accomplished by freezing the wages of the bank's current full- time salaried employees, a move approved by Woori's union. Thus, the company will see increased labor costs of KRW8 billion this year, as opposed to the estimated KRW30 billion. "Nearly 3,000 former non-regular workers joined the union on March 2. If those non-regular workers are freed from labor insecurity by becoming regular workers, the competitive edge of the bank will be enhanced, as well," the paper cites Ma Ho-ung, a union leader of Woori Bank, as saying. However, some insecurities remain for Woori's new regular workers, The Hankyoreh relates. Woori Bank has assigned them yearly salaries and promotional opportunities based only on their group, which will be kept separate from the bank's current regular workers, at least for the time being, the paper explains, noting that workers worry this will pigeonhole them as well as block their access to opportunities afforded to current regular employees. The bank, however, assured that it plans to prepare supplementary measures to correct this disparity in the long term, The Hankyoreh notes. Woori Bank -- http://www.wooribank.com/-- is a government-owned bank headquartered in Seoul, Korea. The bank was established in 2002, and includes the former Hanbit Bank, Sangup Bank and Hanil Bank. It is a part of the Woori Financial Group. It has branches all over the world, including in New York, Los Angeles, Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore, Moscow, London, and Dhaka. Moody's Investors Service gave Woori a 'D+' Bank Financial Strength Rating effective March 14, 2006. =============== M A L A Y S I A =============== CRIMSON LAND: Incurs MYR1.77-Mil. Net Loss in Qtr Ended Dec. '06 ---------------------------------------------------------------- Crimson Land Bhd incurred a net loss of MYR1.77 million on MYR22.07 million of revenues in the second quarter ended Dec. 31, 2006, as compared with a net loss of MYR4.50 million on MYR6.98 million of revenues in the corresponding period in 2005. The company's unaudited balance sheet as of Dec. 31, 2006, showed current assets of MYR220.28 million and current liabilities of MYR74.18 million. As at Dec. 31, 2006, Crimson's total assets amounted to MYR469.92 million and total liabilities aggregated to MYR448.83 million, resulting to a shareholders' equity of MYR21.09 million. A full-text copy of the company's financial statement for the quarter ended Dec. 31, 2006, can be viewed for free at: http://bankrupt.com/misc/crim-2q-results.xls * * * Headquartered in Kuala Lumpur, Malaysia, Crimson Land Berhad's activities are property development, maintenance, investment and rental services. The Company is also into investment holding, property cultivation, growing and trading of marine products, rental of promotional space, management services and investment holding. Crimson Land is currently classified under the Amended-PN17 Companies List of the Bursa Malaysia Securities Bhd and is therefore required to formulate and implement a plan to regularize its financial condition. CYGAL BERHAD: Incurs MYR9.72-Million Net Loss in 4th Quarter '06 ---------------------------------------------------------------- Cygal Bhd posted a net loss of MYR9.72 million on MYR16.58 million of revenues in the fourth quarter ended Dec. 31, 2006, compared with a net loss of MYR10.17 million on MYR30.81 million of revenues in the same quarter in 2005. As of Dec. 31, 2006, the company's unaudited balance sheet reflected strained liquidity with current assets of MYR144.73 million available to pay current liabilities of MYR493.44 million. Cygal's total assets as of end-December 2006 amounted to MYR215.28 million and total liabilities aggregated to MYR508.28 million, resulting to a shareholders' deficit of MYR293 million. A full-text copy of the company's financial statement can be viewed for free at: http://bankrupt.com/misc/cygal-4q-2006.xls * * * Headquartered in Kuala Lumpur, Malaysia, Cygal Berhad's principal activity is civil and building construction works. Its other activities include housing development; manufacturing and trading in ready mix concrete; trading in building materials; leasing of aircraft parts and equipment; provision of hotel management services; and investment holding. The Group's activities are located in Malaysia and Hong Kong. On Nov. 19, 2001, Cygal Berhad and its subsidiary companies finalized a debt restructuring agreement with their lenders on involving debts outstanding of approximately MYR230 million. The Troubled Company Reporter - Asia Pacific reported on Jan. 13, 2006, that Cygal has obtained the consent of the majority of its financial institution creditors for a further extension of time within which Cygal is to meet the conditions precedent as stipulated in its Nov. 2001 Settlement Agreement with its creditors. The deal relates to the settlement of Cygal's MYR229,637,109 debt to its lenders. As of Dec. 31, 2006, Cygal's total assets amounted to MYR215.28 million and its total liabilities aggregated to MYR508.28 million, resulting to a shareholders' deficit of MYR293 million. EKRAN BERHAD: Asks for Further Extension of Plan Filing Deadline ---------------------------------------------------------------- Ekran Bhd asked the Bursa Malaysia Securities Bhd to further extend its deadline to submit a regularization plan to the Securities Commission and other relevant authorities for approval. As reported by the Troubled Company Reporter - Asia Pacific on Jan. 31, 2007, the bourse had already extended to March 7, 2007, Ekran's plan submission deadline. However, the company wasn't able to meet that deadline. The new extension request is currently pending Bursa's approval. * * * In related news, Ekran appointed AmInvestment Bank Berhad as its advisor with regard to the submission of a regularization plan to the Securities Commission and other relevant authorities. * * * Ekran Berhad is a Malaysian company engaged in investment holding and the provision of management services to its subsidiary companies. Through its subsidiaries, the company is engaged in property development; the provision of property management services; timber logging and saw milling; the sale of timber products, and the operation of oil palm plantations. The company's operations are mainly concentrated in Malaysia, China and the Philippines. Ekran has been classified as an affected listed issuer under Amended Practice Note 17, when the auditors have expressed a disclaimer opinion on the company's audited financial report for the financial year ended June 30, 2005, and for defaulting on various credit facilities. EKRAN BERHAD: Updates on Default Status as of February 2007 ----------------------------------------------------------- Ekran Bhd disclosed with the Bursa Malaysia Securities Bhd its payment default status to several lenders as of February 2007. Lenders Claimed Amount ------- -------------- Pengurasan Danaharta MYR28,426,953.08 National Sdn Bhd Danaharta Managers MYR1,217,535.25 Sdn Bhd Danaharta Urus MYR29,535,045.28 Sdn Bhd AmBank Berhad MYR3,079,661.39 (Arab Malaysian Bank Berhad) Plus interest According to the company, negotiations for full and final settlement with these debts are now in progress. * * * Ekran Berhad is a Malaysian company engaged in investment holding and the provision of management services to its subsidiary companies. Through its subsidiaries, the company is engaged in property development; the provision of property management services; timber logging and saw milling; the sale of timber products, and the operation of oil palm plantations. The company's operations are mainly concentrated in Malaysia, China and the Philippines. Ekran has been classified as an affected listed issuer under Amended Practice Note 17, when the auditors have expressed a disclaimer opinion on the company's audited financial report for the financial year ended June 30, 2005, and for defaulting on various credit facilities. FA PENINSULAR: Dec. 31 Balance Sheet Upside Down by MYR6.22 Mil. ---------------------------------------------------------------- FA Peninsular Bhd's unaudited balance sheet as of Dec. 31, 2006, went upside down with total assets of MYR15.86 million and total liabilities of MYR22.08 million, resulting to a shareholders' deficit of MYR6.22 million. In addition, the company's balance sheet as of end-December 2006 reflected strained liquidity with current assets of MYR15.75 million available to pay current liabilities of MYR22.08 million. FA Peninsular incurred a net loss of MYR3.503 million in the third quarter ended Dec. 31, 2006, as compared with a net loss of MYR11.49 million in the same period in 2005. A full-text copy of the company's financial statement for the quarter ended Dec. 31, 2006, can be viewed for free at: http://bankrupt.com/misc/fap-3q-results.doc * * * FA Peninsular's principal activities are processing and trading cocoa. Other activity includes stock and share-broking. Operations are carried out mainly in Malaysia. The company is currently listed in the Amended PN-17 list of companies in the Bursa Malaysia Securities Bhd. FA Peninsular Bhd's unaudited balance sheet as of Dec. 31, 2006, went upside down with total assets of MYR15.86 million and total liabilities of MYR22.08 million, resulting to a shareholders' deficit of MYR6.22 million. FCW HOLDINGS: Gains MYR2.32 Mil. in 2nd Quarter Ended Dec. 31 ------------------------------------------------------------- FCW Holdings Bhd recorded MYR2.32 million of net profit on MYR2.50 million of revenues in the second quarter ended Dec. 31, 2006, as compared with a MYR37,000 net loss on MYR4.14 million of revenues in the same quarter in 2005. As of Dec. 31, 2006, current assets of the company stood at MYR25.54 million and current liabilities amounted to MYR3.08 million. FCW Holdings' total assets of Dec. 31, 2006, aggregated to MYR29.43 million and total liabilities reached MYR3.08 million. Shareholders' equity in the company amounted to MYR25.72 million. A full-text copy of the company's financial statement for the second quarter ended Dec. 31, 2006, can be viewed for free at: http://bankrupt.com/misc/fcw-2q-results.xls * * * Headquartered in Selangor Darul Ehsan, Malaysia, FCW Holdings Berhad is principally involved in investment holding, providing management services and trading of telecommunications equipment. Its other activities include renting of communication access, selling and hiring of telecommunications equipment and electronic goods, providing paging services and turnkey contracting. On May 5, 2006, the Troubled Company Reporter - Asia Pacific reported that FCW Holdings was classified under Bursa Malaysia Securities Berhad's Practice Note 17 category since the company's shareholders' equity has fallen well below the minimum requirement of 25%. As an affected listed issuer, the company is required to submit a plan to regularize its financial condition. FEDERAL FURNITURE: Shareholders' Deficit at MYR17.67M in Dec. 31 ---------------------------------------------------------------- Federal Furniture Holdings Bhd's unaudited balance sheet as of Dec. 31, 2006, showed solvency problem with total assets of MYR135.78 million and total liabilities of MYR153.46 million, resulting to a shareholders deficit of MYR17.67 million. In addition, the company's balance sheet as of end-December 2006 also reflected illiquidity with current assets of MYR37.05 million available to pay current liabilities of MYR149.90 million. Federal Furniture posted a net loss after taxation of MYR5.61 million on MYR13.69 million of revenues in the fourth quarter ended Dec. 31, 2006, as compared with a net loss of MYR2.7 million on MYR9.93 million of revenues in the same quarter in 2005. A full-text copy of the company's financial statement for the fourth quarter ended-Dec. 2006 can be viewed for free at: http://bankrupt.com/misc/ffhb-4q-results.xls * * * Headquartered in Selangor Darul Ehsan Malaysia Federal Furniture Holdings Bhd -- http://www.federal-furniture.com/-- is a listed company on the Kuala Lumpur Stock Exchange and is Malaysia's premier furniture and interior design group. It consists of companies in all the main sectors of the furniture-related industries, from manufacturing, marketing, exporting, contract furnishing and interior design to retail. On June 24, 2004, the Board of Directors of Federal Furniture has proposed a capital reduction, a share premium reduction, rights issue with warrants and a debt settlement scheme with some of its financial institution lenders to restructure and settle a substantial part of its total bank borrowings. On July 5, 2006, the Company submitted its Regularization Plan to Bursa Malaysia Securities Berhad for approval. Federal Furniture Holdings Bhd's unaudited balance sheet as of Dec. 31, 2006, showed solvency problem with total assets of MYR135.78 million and total liabilities of MYR153.46 million, resulting to a shareholders deficit of MYR17.67 million. FOREMOST HOLDINGS: Discloses Proposals Under Regularization Plan ---------------------------------------------------------------- Foremost Holdings Bhd disclosed with the Bursa Malaysia Securities Bhd various proposals under its regularization plan. The Plan, among others, contains: * Proposed Par Value Reduction; * Proposed Share Premium Reduction; * Proposed Amendment; * Proposed Rights Issue with Warrants; * Proposed Exemption; and * Proposed Debt Settlement. Based on its proposal for capital reduction, Foremost will reduce its paid-up share capital of MYR52,620,000 comprising 52,620,000 ordinary shares will be reduced to MYR26,310,000 comprising 52,620,000 ordinary shares of MYR0.50 each. The reduction of MYR0.50 for each existing ordinary share would give rise to a credit of MYR26,310,000, and will be utilized to reduce the company's accumulated losses of MYR45,761,649 based on the audited financial statements of FHB for the financial year ended December 31, 2006. In addition, the company also proposes to use its share premium account of MYR3,630,164 against its accumulated losses. A total of MYR2,330,164 will be utilized towards setting-off against the accumulated losses of the Company as at Dec. 31, 2006, and the remaining balance of MYR1,300,000 will be used towards setting- off the estimated expenses for the Proposals. Accordingly, Foremost proposes to amend its Memorandum and Articles of Association to facilitate the change in the par value of its ordinary shares from MYR1.00 each to MYR0.50 resulting from the Proposed Par Value Reduction. Meanwhile, the company also proposes to issue up to 13,155,000 new ordinary shares of RM0.50 each on the basis of one Rights Share for every four FHB Shares. In addition, the rights issue will be offered together with 39,465,000 free detachable warrants on the basis of three Warrants for every one Rights Share. According to the company, the Proposed Rights Issue with Warrants is expected to raise gross proceeds of MYR6,577,500, which will be utilized to finance the working capital requirements of the Group and to defray the estimated expenses incidental to the Proposals. Foremost also proposes to exempt Ooi Chieng Sim from the obligation to extend a mandatory take-over offer for the remaining FHB Shares not already owned upon the completion of the Proposed Rights Issue with Warrants. Lastly, Foremost proposes to enter into a settlement arrangement with its financial institution creditor by virtue of a corporate guarantee for the debts owing by its 58.75% subsidiary, Yaku Shin (Malaysia) Sdn Bhd, which has been placed under receivership during the financial year ended December 31, 2005. According to the company, the liabilities under the corporate guarantee amounted to MYR16,904,000 has been recognized in the financial statements of the company in its annual report ended December 31, 2006. The board has estimated that after the sale of YKSM's assets and recovery of certain debts by the receiver and manager, the outstanding sum would be in the region of approximately RM15.8 million. Foremost is currently in the advanced stages of negotiations with the creditor and is proposing for the settlement arrangement to be conducted through: (i) issuance of up to 15,800,000 new FHB Shares of MYR0.50 each at par after the Proposed Par Value Reduction to the Creditor as full and final discharge of the bank guarantee; and (ii) Any shortfall arising from the Proposed Issuance of Shares for the bank guarantee will be waived. * * * Foremost Holdings Berhad manufactures and sells automobile speakers, home audio speakers, general-purpose speakers and speaker wooden cabinets. The Company is also engaged in the trading of auto accessories, investment holdings and the provision of management services. Products are distributed in Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United States, other Asian countries, other European countries and other countries. Foremost was classified as an affected listed issuer under Bursa Malaysia Securities Berhad's Practice Note 17 because it has "insufficient financial position to warrant continued listing." As an affected issuer, the Company is required to draft and implement a plan to regularize its finances to avoid being delisted from the Official List. HALIFAX CAPITAL: Affin Bank Quits Post as Restructuring Adviser --------------------------------------------------------------- Halifax Capital Bhd said in a disclosure with the Bursa Malaysia Securities Bhd that it received a letter of withdrawal from Affin Merchant Bank Bhd as its main adviser to the Proposed Restructuring Scheme. The company is now in the midst of finalizing the appointment of a new main adviser, Halifax told the bourse. In related news, Halifax is still waiting for the Bursa's ruling on its request for a further extension of its deadline to file a regularization plan. The company was supposed to submit its regularization plan to the Securities Commission and other relevant authorities by March 7. * * * Headquartered in Kuala Lumpur, Malaysia, Halifax Capital Berhad -- fka Setron (Malaysia) Berhad -- is principally engaged investment holding, and assembly and sale of electrical and electronic products. Setron Sales & Service (M) Sdn. Bhd., the Company's wholly owned subsidiary, is engaged in the distribution of electrical and electronic products. The company is considered an affected listed issuer under Practice Note 17 as the its shareholders' equity on consolidated basis is less than 25% of the issued and paid-up share capital of the listed issuer and such shareholders' equity is less than the minimum issued and paid up share capital. SATERAS RESOURCES: Bursa to Delist Securities on March 21 --------------------------------------------------------- The Bursa Malaysia Securities Bhd will delist the securities of Satera Resources Bhd and will remove them from its official list on March 21, 2007, at 9:00 a.m. According to the bourse, it has decided to delist the securities of Sateras from the Official List as the company does not have adequate level of financial condition to warrant continued listing. In addition, the bourse said that the Securities Commission rejected the company's appeal to extend the implementation of its regularization plan. With the rejection, the bourse said that Sateras is now deemed failed to complete the implementation of its plan within the timeframe prescribed by the SC and no further extension of time has been granted to the company. Sateras filed its regularization plan with the SC and other relevant authorities on July 1, 2003. * * * Headquartered in Kuala Lumpur, Malaysia, Sateras Resources (Malaysia) Berhad is principally engaged in investment holding and provision of management and secretarial services. The principal activities of its subsidiary companies are that of property development, investment in real property, investment holding and educational services. The Company has been experiencing losses since the Asian financial crisis in 1997. Sateras' balance sheet as of Sept. 30, 2006, showed insolvency with total assets of MYR160.99 million and total liabilities of MYR575.17 million. Shareholders' deficit in the company reached MYR414.18 million. ===================== N E W Z E A L A N D ===================== AIR NEW ZEALAND: Reaches Agreement with EPMU; SFWU Rejects Deal --------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on March 5, 2007, the Engineering Printing and Manufacturing Union has been engaged in legal proceedings alleging that Air New Zealand acted in bad faith by deliberately misusing the consultation clause of the ground services Collective Employment Agreement to open negotiations at a time when members could not take legally protected industrial action. Air New Zealand sought to stop the proceedings, but the court rejected the application, the TCR-AP said. Accordingly, the EPMU's case against the airline continued. EPMU and Air NZ Reach Deal However, a report from the New Zealand Press Association relates that a deal -- to save workers' jobs -- between EPMU and Air New Zealand is progressing. Thus, the Employment Court Action against the airline is not going ahead. Stuff.co.nz, citing the NZPA, relates that EPMU and Air New Zealand have reached agreement under which about 40% of staff will get a pay rise, 40% will get a pay cut, and the rest will stay on the same wage rate. Those offered a cut will have an automatic right to redundancy, NZPA notes. The proposal has not been finalized and talks are still continuing, NZPA says. According to EPMU National Secretary Andrew Little, it would be about a month before all the details of the new agreement are finalized and offered to the union members to vote on. SFWU Disagrees Air New Zealand has maintained that the Service and Food Workers Union must also ratify the agreement, The Dominion Post relates. Yet, the Service and Food Workers Union said that it is not a party to the agreement and that it is unlikely its members will agree to it, NZPA points out, noting that the SFWU represents about 300 check-in staff. According to the Dominion Post, the workers had voted to stick together at the last negotiating round, when Air New Zealand had wanted to split the workforce into separate agreements. A coverage clause prevented one group from "negotiating away the core terms and conditions" of the collective, the paper relates. The ballot may yet include a separate vote on whether to accept the EPMU-negotiated deal, SFWU's northern regional secretary, Jill Ovens, said. According to Ms. Ovens, the SFWU did not have to take it to its members because the union has "a separate collective agreement." Unions Council to Step In Accordingly, the Council of Trade Unions will step in to work with both unions over the dispute, Stuff.co.nz relates. The deal would be put to all affected staff and it would be up to them, not their union groups, to decide whether to accept it, NZPA notes. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on Sept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. AIR NEW ZEALAND: Gov't. Should Sell Stake, Aviation Report Says --------------------------------------------------------------- "This may be a good year for the New Zealand Government to sell down its holding in Air New Zealand, to capture some of the value as the share price soars, and to allow private investment to carry the longer term risk," the New Zealand Press Association cites Peter Harbison, executive chairman of the Centre for Asia Pacific Aviation, as saying in a report. On March 7, 2007, the Centre released an outlook report on the aviation sector, which costs US$595 ($NZ8912) to buy, NZPA relates noting that a summary released to the media said the outlook for New Zealand aviation in 2007 is uncertain. According to NZPA, Finance Minister Michael Cullen said that the Government had no intention of selling down, even to 51%, despite sitting on a NZ$735 million paper profit from its rescue investment six years ago. Air New Zealand may be facing domestic headwinds, as Qantas/Jetstar and Pacific Blue reassess their market positions, but the flag carrier's long-haul strategy appears to be working well, NZPA cites the Aviation report, as saying. New Zealand airports are hoping that competition will stimulate growth for them and in the meantime they remain highly profitable, the report says. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on Sept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. ARIKI PROPERTIES: Court to Hear Wind-Up Petition on April 19 ------------------------------------------------------------ On Dec. 18, 2006, the Commissioner of Inland Revenue filed a petition to wind up the operations of Ariki Properties Ltd. The petition will be heard before the High Court of Auckland on April 19, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: Timothy Chemaly c/o Auckland South Service Centre 17 Putney Way, PO Box 76198 Manukau, Auckland New Zealand Telephone:(09) 985 7048 CLEAR CHANNEL: Urges Shareholders to Vote for Proposed Merger ------------------------------------------------------------- Clear Channel Communications, Inc., announced that it will mail a letter to its shareholders regarding the proposed merger with a group led by T.H. Lee Partners, L.P. and Bain Capital Partners, LLC, for US$37.60 per share in cash. The company's letter states: Dear Fellow Shareholder: At the March 21st special meeting of Clear Channel shareholders, you will make a critical decision regarding the future of your company. If shareholders approve the company's agreement to be acquired by funds sponsored by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P., you will receive US$37.60 in cash for each share of common stock you own. The disinterested directors of your Board have unanimously determined that the merger is fair and in your best interests. WE URGE YOU TO VOTE FOR THE PROPOSED MERGER TODAY. THE PROPOSED MERGER IS THE RESULT OF A HIGHLY COMPETITIVE PUBLIC AUCTION CONDUCTED BY THE DISINTERESTED MEMBERS OF THE BOARD The disinterested directors carefully managed the auction process to maximize the competitive dynamics of the bid process to obtain the highest price available: * Multiple rounds of robust bidding, * Firm, fully financed offers submitted by two separate consortiums of private equity funds, * Virtually every leading private equity sponsor participated -- no strategic buyers emerged, and * During the "go-shop" period, the company's financial advisor contacted a total of 22 potential strategic and private equity buyers, none of whom expressed interest in bidding for Clear Channel. WE FIRMLY BELIEVE THERE IS NOT ANOTHER COMPETITIVE BIDDER FOR CLEAR CHANNEL, AND THAT US$37.60 PER SHARE IN CASH MAXIMIZES VALUE AND CERTAINTY The auction process was conducted by the disinterested members of the Board of Directors, and supported by a Special Advisory Committee composed of three disinterested directors. The Board and the Special Advisory Committee also received advice and assistance from separate financial and legal advisors, who were actively involved in the auction process. In order to ensure independence, these meetings - and all of the Board's deliberations in relation to the competitive sale process - were conducted without the participation of Clear Channel management or the Mays family. Chairman and founder L. Lowry Mays has informed the company that he will be selling a substantial majority of his holdings in the transaction. THE PROPOSED MERGER IS THE RESULT OF A COMPREHENSIVE REVIEW OF STRATEGIC ALTERNATIVES This merger proposal is the result of a comprehensive review of strategic alternatives designed to enhance shareholder value, taking into account the continued challenges in the radio sector and the Board's views of the recent growth in the domestic outdoor sector, as well as Clear Channel's future growth opportunities. During their review, the disinterested directors considered a full range of alternatives other than the sale of the company, including a sale or spin-off of Clear Channel Outdoor, recapitalization, share repurchase and special dividend, as well as remaining as an independent company. Particular consideration was given to the structural issues related to any potential separation of Clear Channel Outdoor, including significant tax implications, and the likely trading value of its shares in the absence of this transaction. In light of these considerations, the unanimous conclusion of the disinterested directors was that the US$37.60 per share in cash merger proposal results in the greatest value and delivers the greatest certainty to shareholders. THE MERGER PROPOSAL DELIVERS A 28% PREMIUM OVER THE AVERAGE SHARE PRICE DURING THE 60 TRADING DAYS PRIOR TO THE COMPANY'S ANNOUNCEMENT THAT THE BOARD WAS CONSIDERING STRATEGIC ALTERNATIVES The all-cash merger consideration of US$37.60 per share represents a premium of approximately 28% over the average closing share price during the 60 trading days ended Oct. 24, 2006, the day prior to the company's announcement of the Board's decision to consider strategic alternatives, and a premium of approximately 26% over the average closing share price during the one-year period prior to the announcement of the merger. The merger consideration is also a significant premium to research analysts' stock price targets for Clear Channel, prior to the company's announcement that the Board was exploring strategic alternatives. The merger agreement negotiated by the disinterested directors contains measures designed to ensure shareholders certainty of closing as well as to protect against business and market risks, including: * Certainty of US$37.60 in cash, * Regular annual dividend of US$0.75 per share to be paid quarterly through closing, * Daily "ticking fee"- in order to ensure that the transaction is closed as soon as possible -- of the lesser of 8% interest per year or the company's operating cash flow beginning Jan. 1, 2008, through closing, * Equity and debt commitments with no financing conditions, * Requirement for the buyers to take all necessary steps to obtain regulatory approval, with reverse break-up fees owed in the event of a failure to close should regulatory approval not be received, and * The ability to receive and consider competing proposals. YOUR VOTE IS EXTREMELY IMPORTANT -- NOT VOTING IS A VOTE AGAINST THE MERGER Approval of the merger agreement requires the affirmative vote of two-thirds of Clear Channel's outstanding shares. Not voting has the same effect as a vote against the merger. Please vote for the merger today by telephone or by Internet, as available per the instructions on the enclosed proxy card, or by signing and returning the enclosed proxy card in the postage-paid envelope provided. If you have any questions or need assistance in voting your shares, please call our proxy solicitor, Innisfree M&A Incorporated, toll-free at (877) 456-3427. Thank you for your support. On behalf of the Board of Directors, Alan D. Feld - Perry J. Lewis About Thomas H. Lee Partners, L.P. Thomas H. Lee Partners or THL Partners is one of the oldest and most successful private equity investment firms in the United States. Since its founding in 1974, THL Partners has become the preeminent growth buyout firm, investing approximately US$12 billion of equity capital in more than 100 businesses with an aggregate purchase price of more than US$100 billion, completing over 200 add-on acquisitions for portfolio companies, and generating superior returns for its investors and partners. The firm currently manages approximately US$20 billion of committed capital. Notable transactions sponsored by the firm include Dunkin Brands, Nielsen, Michael Foods, Houghton Mifflin Company, Fisher Scientific, Experian, TransWestern, Snapple Beverage and ProSiebenSat1 Media. About Bain Capital Partners, LLC Bain Capital http://www.baincapital.com/-- is a global private investment firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital and public equity with more than US$40 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 230 companies around the world, including investments in a broad range of companies such as Burger King, HCA, Warner, Chilcott, Toys "R" Us, AMC Entertainment, Sensata Technologies, Burlington Coat Factory and ProSiebenSat1 Media. Headquartered in Boston, Bain Capital has offices in New York, London, Munich, Tokyo, Hong Kong and Shanghai. About Clear Channel Communications Inc. Based in San Antonio, Texas, Clear Channel Communications Inc. - - http://www.clearchannel.com/-- (NYSE:CCU) is a global leader in the out-of-home advertising industry with radio and television stations and outdoor displays. Aside from the U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * Clear Channel's long-term local and foreign issuer credits carry Standard & Poor's BB+ rating. In addition, the company's senior unsecured debt and long-term issuer default ratings were placed by Fitch at BB- on Nov. 16, 2006. DOUG TAYLOR: Faces Liquidation Petition --------------------------------------- Rivervista Ventures No.2 Limited filed an application to wind up the operations of Doug Taylor Builders Ltd. The petition will be heard before the High Court of Auckland on May 17, 2007, at 10:00 a.m. Rivervista Ventures' solicitor can be reached at: Graeme William Hall PO Box 1433, Auckland New Zealand Facsimile:(09) 358 2055 EFL(NEW ZEALAND): Wind-Up Hearing Set on March 15 ------------------------------------------------- On Nov. 20, 2006, the Commissioner of Inland Revenue filed an application to wind up the operations of EFL (New Zealand) Ltd. The petition will be heard on March 15, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: Geraldine Ann Ryan c/o Auckland South Service Centre 17 Putney Way, PO Box 76198 Manukau, Auckland New Zealand Telephone:(09) 984 2002 GENTRY RESIDENTIAL: Names Blanchett and Fatupaito as Liquidators ---------------------------------------------------------------- On Feb. 23, 2007, the shareholders of Gentry Residential Ltd. appointed David Murray Blanchett and Vivian Judith Fatupaito as the company's joint and several liquidators. Accordingly, Mr. Blanchett and Ms. Fatupaito require the company's creditors to prove their debts by May 23, 2007. In a report by the Troubled Company Reporter - Asia Pacific, the High Court of Hamilton heard the wind-up petition against the company on Feb. 26, 2007. The Commissioner of Inland Revenue filed the petition. The company's liquidators can be reached at: David Murray Blanchett Vivian Judith Fatupaito PricewaterhouseCoopers Corner of Bryce and Anglesea Streets PO Box 191, Hamilton New Zealand Telephone:(07) 838 3838 Facsimile:(07) 839 4178 MARKDOWN MARINE: CIR Wants to Liquidate Company ----------------------------------------------- The Commissioner of Inland Revenue filed an application to wind up the operations of Markdown Marine Ltd. on Jan. 19, 2007. The petition will be heard before the High Court of Whangarei on March 19, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: M. B. Smith c/o P. J. Smith Marsden Woods Inskip & Smith 122 Bank Street, PO Box 146 Whangarei New Zealand MAYFIELD ENTERPRISES: CIR Wants to Liquidate Company ----------------------------------------------------- The Commissioner of Inland Revenue filed a petition to wind up the operations of Mayfield Enterprises Ltd on Dec. 18, 2006. The petition will be heard before the High Court of Auckland on April 19, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: Timothy Chemaly c/o Auckland South Service Centre 17 Putney Way PO Box 76198 Manukau, Auckland New Zealand Telephone:(09) 985 7048 NEROBBY HOLDINGS: CIR Seeks to Liquidate Company ------------------------------------------------ On Dec. 18, 2006, the Commissioner of Inland Revenue filed a petition to wind up the operations of Nerobby Holdings Ltd. The High Court of Auckland will hear the petition on April 12, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: Timothy Chemaly c/o Auckland South Service Centre 17 Putney Way PO Box 76198 Manukau, Auckland New Zealand Telephone:(09) 985 7048 PLUS SMS: CRE8 Acquires Multiecast Limitada ------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on Feb. 15, 2007, CRE8 has signed a letter of intent to acquire a leading South American content provider that has operations and connectivity to mobile operators in seven countries as well as distribution agreements with worldwide brands. The deal was forecasted to close in the first quarter of 2007 and generate significant revenue streams for CRE8, the TCR-AP said. In an update, CRE8 has acquired Multiecast Limitada, a leading provider of interactive content services for mobile phone operators and media companies in South America, the company said in a press release. Through its operations in Santiago Chile, Multiecast provides content services to Movistar Chile, Entel PCS, and Claro Chile, and delivers interactive TV services to the three largest media companies in Chile. Multiecast has also enabled some of the most innovative mobile marketing campaigns for brands like Kodak, Gillette, Nestl,, Duracell and banking applications for the largest financial institutions in the region. By combining key assets and capabilities, the two companies aim to create the largest footprint for content services throughout Latin America. Through the Multiecast acquisition, CRE8 extends its content service offering to mobile operators in Chile, Peru and Colombia, and has existing content agreements and strategic relationships in El Salvador, Guatemala, Honduras, Nicaragua, Panama, Boliva and Mexico. CRE8 will base its South American operations in Santiago, Chile, and soon enter into Brazil and Argentina while continuing to expand throughout Central America from Mexico City. Christopher Tiensch, Chief Executive Officer of CRE8. Under the terms of the agreement, Multiecast will operate as a wholly owned subsidiary of CRE8, with CRE8 acquiring all of the equity in return for: * Initial cash consideration of US$500,000 and US$200,000 in working capital to accelerate growth throughout the region; and * Conditional cash consideration of up to US$2 million over two years if Multiecast achieves a 50% yearly revenue growth, EBIT of 25%, and key management remains with the company during the period. "By joining forces with CRE8, the combined company will be in a stronger position to roll-out a portfolio of services throughout Latin America and capitalize on a number a strategic business opportunities," Cristian Olea, Chief Executive Officer of Multiecast said. About CRE8 CRE8 (NZAX: PLS) is a subsidiary company of Plus SMS Holdings Limited. CRE8 is a provider of content, connectivity, and network services for mobile operators, brands and media companies worldwide. About Plus SMS Plus SMS Holdings Ltd. -- http://www.cre-eight.com/-- is the parent company of Plus SMS Limited. It provides access to businesses to the number ranges required for the routing of short message service (SMS) and multimedia messaging system (MMS) messages worldwide using a single short number. On July 4, 2005, Plus SMS Limited acquired Plus SMS Holdings Limited in a reverse acquisition. The company suffered net losses of NZ$366,000 and NZ$362,000 for the years ended March 31, 2006 and 2005, respectively. PULZAR SOUND: Court to Hear Wind-Up Petition on March 12 -------------------------------------------------------- An application to wind up the operations of Pulzar Sound & Vision Ltd. was filed by the Commissioner of Inland Revenue on Jan. 31, 2007. The petition will be heard before the High Court at Christchurch on March 12, 2007, at 10:30 a.m. The CIR's solicitor can be reached at: Julia Dykema Inland Revenue Department Technical and Legal Support Group South Island Service Centre Ground Floor Reception 518 Colombo Street, PO Box 1782 Christchurch 8140 New Zealand Telephone:(03) 968 0809 Facsimile:(03) 977 9853 SPACE INTERACTION: Wind-Up Petition Hearing Slated for March 15 --------------------------------------------------------------- The Commissioner of Inland Revenue filed a petition to wind up the operations of Space Interaction Ltd. on Nov. 24, 2006. The High Court of Auckland will hear the petition on March 15, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: Geraldine Ann Ryan c/o Auckland South Service Centre 17 Putney Way, PO Box 76198 Manukau, Auckland New Zealand Telephone:(09) 984 2002 STONEDON TRUSTEE: Faces Liquidation Proceedings ----------------------------------------------- An application to wind up the operations of Stonedon Trustee Company Ltd. was filed by the Commissioner of Inland Revenue on Nov. 15, 2006. The petition will be heard before the High Court of Auckland on March 15, 2007, at 10:45 a.m. The CIR's solicitor can be reached at: Geraldine Ann Ryan c/o Auckland South Service Centre 17 Putney Way, PO Box 76198 Manukau, Auckland New Zealand Telephone:(09) 984 2002 ===================== P H I L I P P I N E S ===================== CHIQUITA BRANDS: Delays Annual Report Filing -------------------------------------------- Chiquita Brands International Inc. disclosed in a regulatory filing with the United States Securities and Exchange Commission that it delayed the filing of its Annual Report on Form 10-K for the year ended Dec. 31, 2006. The company said it is currently seeking approval of an amendment with lenders under its credit agreement dated as of June 28, 2005, with respect to the treatment of a charge of US$25 million recorded in its financial statements for the year ended Dec. 31, 2006, and certain other related costs in connection with the previously announced U.S. Department of Justice's evaluation of the company's officers and directors. "While the company is currently in compliance with the financial covenants under the credit agreement, this amendment is necessary to mitigate the potential of financial covenant non- compliance in future periods, which would affect the consolidated balance sheet classification of the company's debt as of Dec. 31, 2006, and related disclosures," Brian W. Kocher, Chiquita's vice president, controller and chief accounting officer, said. The company anticipates completing its credit agreement amendment in sufficient time to file Form 10-K for the year ended Dec. 31, 2006, by March 16, 2007, or sooner. U.S. Department of Justice Probe In a press statement dated Feb. 22, 2007, Chiquita disclosed that in April 2003, the company's management and audit committee, in consultation with the board of directors, voluntarily disclosed to the U.S. Department of Justice that its former banana-producing subsidiary in Colombia, which was sold in June 2004, had made payments to certain groups in that country which had been designated under United States law as foreign terrorist organizations. Following the voluntary disclosure, the Justice Department undertook an investigation, including consideration by a grand jury. In March 2004, the Justice Department advised that, as part of its criminal investigation, it would be evaluating the role and conduct of the company and some of its officers in the matter. In September and October 2005, the company was advised that the investigation was continuing and that the conduct of the company and some of its officers and directors was within the scope of the investigation. During the fourth quarter of 2006, the company commenced discussions with the Justice Department about the possibility of reaching a plea agreement. As a result of the discussions, and in accordance with the guidelines set forth in SFAS No. 5, the company has recorded a reserve of $25 million in its financial statements for the quarter and year ended Dec. 31, 2006. The amount reflects liability for payment of a proposed financial sanction contained in an offer of settlement made by the company to the Justice Department. The $25 million would be paid out in five equal annual installments, with interest, beginning on the date judgment is entered. The Justice Department has indicated that it is prepared to accept both the amount and the payment terms of the proposed $25 million sanction. According to the company, negotiations are ongoing, and there can be no assurance that a plea agreement will be reached or that the financial impacts of any such agreement, if reached, will not exceed the amounts currently accrued in the financial statements. Furthermore, the company said that the agreement would not affect the scope or outcome of any continuing investigation involving any individuals. In the event an acceptable plea agreement between the company and the Justice Department is not reached, the company believes the Justice Department is likely to file charges, against which the company would aggressively defend itself. The company is unable to predict the financial or other potential impacts that would result from an indictment or conviction of the company or any individual, or from any related litigation, including the materiality of such events. About Chiquita Brands Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 60 countries including the Philippines and Australia. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * On Nov. 6, 2006, Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. This rating action follows the company's announcement that it had incurred a USUS$96 million net loss for its 2006 third quarter. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. S&P said the ratings remain on CreditWatch with negative implications where they were placed on Sept. 26. CHIQUITA BRANDS: Unit Rejects 3K Boxes of Coosemupar Bananas ------------------------------------------------------------ Tecno Asesora Agricola, a banana exporter and unit of Chiquita Brands International in Panama, has rejected 3 thousand boxes of bananas from the Coosemupar cooperative, Fresh Plaza reports. Coosemupar director Salustiano De Gracia complained to Fresh Plaza that the rejection had no reason, as the fruit was of first quality. He claimed that the rejection leads to losses for the cooperative. Coosemupar has contractual obligations towards Chiquita Brands. The cooperative plans to renegotiate the contract before September, as it wants to sell bananas to another exporter, Fresh Plaza states. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 60 countries including the Philippines and Australia. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * On Nov. 6, 2006, Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. This rating action follows the company's announcement that it had incurred a USUS$96 million net loss for its 2006 third quarter. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. S&P said the ratings remain on CreditWatch with negative implications where they were placed on Sept. 26. GEOGRACE RESOURCES: To Issue 1:3.5 Stock Rights ----------------------------------------------- GEOGRACE Resources Philippines, Inc.'s board of directors, at its meeting on March 6, approved a 1:3.5 stock rights offering to its shareholders. Pursuant to the terms of the rights offering, GEOGRACE Resources will be issuing up to 560,467,915 common shares from its authorized and unissued capital stock. Each investor will be entitled to subscribe to one right per share, at PHP1.00 per offer share, for every three and a half GEOGRACE shares held as of record date. The Record Date will be fixed not less than 15 trading days from the date of the Philippine Stock Exchange's approval. The offer period will commence 30 calendar days from the Record Date. Proceeds from the offer will be used to finance the company's project development programs, acquisition of more mining tenements, drilling programs, payment of advances made by shareholders and additional working capital, GEOGRACE says. AC&D Corporate Partners, Inc., is the company's financial advisor for the transaction. The company did not engage an underwriter for the offer. Angping & Associates Securities, Inc., commits to subscribe to all shares that remain unsubscribed at the end of the Offer Period, the company points out. The issuance and listing of the shares covering the offering is still subject to the approval of the Securities and Exchange Commission and the PSE. Formerly known as Global Equities Inc., GEOGRACE Resources Philippines, Inc., manufactures and distributes absorbent cotton, personal, health and baby care products. The company also develops premier vacation residential area within a Nature Park along Tagaytay Ridge in Batangas. The company also develops properties. GEOGRACE Resources was originally incorporated as La Suerte Gold Mining Corporation on April 20, 1970, primarily to engage in the exploration, exploitation, and development of mineral resources; to purchase, lease and otherwise acquire mining claims and concessions anywhere in the Philippines; and to carry on the business of mining, extracting, smelting, treating, and otherwise producing and dealing in metals and minerals of all kinds including all its products and by-products. The company was included in the Troubled Company Reporter - Asia Pacific's Feb. 9 "Large Companies with Insolvent Balance Sheet" column -- having total assets of US$24.18 million and stockholders' deficit of US$1.81 million. The parent company and subsidiaries have recorded negative stockholders' equity of PHP263.302 million as of Sept. 30, 2006, and PHP27.207 million as of Sept. 30, 2005. RIZAL COMMERCIAL BANKING: SEC Approves Increase in Capital ---------------------------------------------------------- The Securities and Exchange Commission has approved the increase of Rizal Commercial Banking Corp.'s capital stock from PHP9 billion to PHP13 billion, the bank informs the Philippine Stock Exchange in a regulatory filing dated March 6. As reported in the Troubled Company Reporter - Asia Pacific on Jan. 24, the PHP13-billion authorized capital stock will be divided into: -- 1.1 billion Common Shares of stock with par value of PHP10 per share; and -- 200 million of Preferred Shares of stock with a par value of PHP10 per share. To support the increase, the bank will declare 15% stock dividend to holders of its common and preferred shares. The record date of the stock dividend is on the 10th calendar date from receipt of the approval of the Bangko Sentral ng Pilipinas and the SEC. The BSP, in its letter dated Jan. 26, 2007, approved the declaration of the stock dividend. Rizal Commercial Banking Corporation -- http://www.rcbc.com/-- is a universal bank principally engaged in all aspects of banking, and provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the Bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the Bank's foreign exchange exposure. The TCR-AP reported on Nov. 6, 2006, that Moody's Investors Service revised the outlook for the bank's foreign currency senior debt rating of Ba3, foreign currency Hybrid Tier 1 of B3, and foreign currency long-term deposit rating of B1 to stable from negative. The outlook for the foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E+ remains stable. In October 2006 Standard & Poor's Ratings Services assigned its 'CCC' rating to RCBC's US$100 million non-cumulative step-up callable perpetual capital securities. PHIL. LONG DISTANCE: 2006 Net Income Rises to PHP35.32 Billion -------------------------------------------------------------- Philippine Long Distance Telephone Co. filed with the United States Securities and Exchange Commission on Tuesday its consolidated financial statements as at Dec. 31, 2006. PLDT registered total revenues and other income of PHP133.84 billion in 2006, an increase of PHP7.80 billion, or 6%, as compared to PHP126.04 billion in 2005. According to the company, the increase was primarily due to an increase in service revenues and other income by PHP4.08 billion and PHP4.07 billion, respectively. Other income in 2006 included a net reversal of a provision for onerous contract amounting to PHP3.5 billion as a result of an amendment to the Air Time Purchase Agreement, the company notes. PLDT's expenses increased by PHP4.22 billion, or 5%, to PHP91.65 billion in 2006 from PHP87.43 billion in 2005, largely resulting from increases in compensation and benefits, asset impairment, depreciation and amortization, and professional and other contracted services, partly offset by lower provisions, cost of sales and taxes and licenses. Net income attributable to equity holders of PLDT increased by PHP1.00 billion, or 3%, to PHP35.12 billion in 2006 from PHP34.11 billion in 2005. Total net income (attributable to both equity holders and minority interest) increased from PHP34.48 billion in 2005 to PHP35.32 billion in 2006. Basic earnings per common share, however, decreased to PHP187.91 in 2006 from PHP189.96 in 2005 due to an increase in the weighted average number of common shares outstanding from 172.1 million in 2005 to 184.5 million in 2006. As of Dec. 31, 2006, PLDT has assets totaling PHP244.88 billion, liabilities aggregating PHP140.57 billion and stockholders' equity of PHP104.31 billion. The company's Dec. 31, 2006 balance sheet shows strained liquidity with current assets of PHP42.97 billion available to pay current liabilities of PHP55.21 billion. A full-text copy of the company's financials statements for the year ended Dec. 31, 2006, is available at the U.S. SEC Web site at http://ResearchArchives.com/t/s?1ae3 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. ================= S I N G A P O R E ================= ADVANCED MICRO: May Not Meet First Quarter 2007 Revenue Target -------------------------------------------------------------- Advanced Micro Devices Inc. disclosed Monday that it is likely to miss its revenue guidance for the first quarter of 2007. In a regulatory filing with the U.S. Securities and Exchange Commission, the company had said it expected revenues for the first quarter in the range of US$1.6 billion to US$1.7 billion. About AMD Headquartered in Sunnyvale, California, Advanced Micro Devices, Inc., -- http://www.amd.com/-- designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. * * * Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. Standard & Poor's removed the rating from CreditWatch negative where it had been placed on July 24, 2006, following the announced acquisition of unrated ATI Technologies Inc. The ratings outlook is negative. At the same time, the rating agency assigned its 'BB-' bank loan rating, one notch above the corporate credit rating, and a '1' recovery rating to the company's proposed US$2.5 billion senior secured term loan, to be used as partial funding of the acquisition. Standard & Poor's also raised its rating on the company's US$600 million (US$390 million outstanding) senior notes to 'B+' from 'B', because the company plans to withdraw its shelf registration which structurally subordinated the notes. Concurrent with the closing of the new bank loan and pursuant to a debt incurrence test in the indenture for the notes, the notes will become pari passu to the bank loan and the note rating will become 'BB-' with a '1' recovery rating. The Troubled Company Reporter - Asia Pacific reported on Nov. 2, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. technology semiconductor and distributor sector, the rating agency affirmed its Ba3 corporate family rating on Advanced Micro Devices, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$600 Mil. senior unsecured notes B1 Ba3 LGD4 59% Shelf - Sr. Unsecured Notes B1 Ba3 LGD4 59% Shelf - Subor. B2 B2 LGD6 97% Shelf - Preferred B3 B2 LGD6 97% PETROLEO BRASILEIRO: To Hold Shareholders Meetings on April 2 ------------------------------------------------------------- Petroleo Brasileiro SA will hold it's the Ordinary and Extraordinary Meeting on April 2, 2007, at 3:00 p.m. in the auditorium of the company's head office at Avenida Rep�blica do Chile 65, 1st floor in the City and State of Rio de Janeiro for the purpose of deliberating on the following matters: Ordinary General Meeting * Management Report, Financial Statements and Audit Committee's Opinion for the fiscal year 2006; * Capital Expenditure Budget for the fiscal year 2007; * Distribution of results for the fiscal year 2006; * Election of members of the Board of Directors, Audit Board and their respective substitutes; * Election of Chairman of the Board of Directors; * Establishment of the compensation of management and effective members of the Audit Committee, as well as their participation in the profits pursuant to Articles 41 and 56 of the Company's Bylaws. Extraordinary General Meeting * Increase in the Capital Stock through the incorporation of part of the revenue reserves constituted in previous fiscal years amounting to R$ 4.380 million, increasing the capital stock from BRL48.264 million to BRL52.644 million without any change to the number of issued shares pursuant to Article 40, Item III, of the Company's Bylaws, and the consequent modification on article 4� of mentioned Company's Bylaws. * The minimum percentage of the voting capital necessary to apply for multiple voting rights for the purpose of electing members of the Board of Directors at the Ordinary General Meeting is 5% of the voting capital pursuant to CVM Instruction 282 of June 26 1998. Application for exercising multiple voting rights must be made in terms established in 1� of article 141 of Law 6.404 of December 15, 1976. * The shareholders, who are holders of preferred shares, with rights that shall make them eligible at the Ordinary General Meeting to elect, via a separate vote, a representative of this class of shareholders as a members of the Board of Directors, must represent at least 10% of the capital stock, as well as prove uninterrupted ownership of the share ownership since December 31 2006. * The Shareholder wishing to be represented at the aforesaid Meetings must comply with the provisions of Article 126, Paragraph 1 of the Joint Stock Corporation Law and Article 13 of the Company's Bylaws, presenting at the meeting, or, preferably by delivering, the appropriate proxy document containing specific powers to room 2202-A at the Company's Head Office until 5:00 p.m. on March 29, 2007. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. SHIP FINANCE: Earns US$180.8 Million for Full Year 2006 ------------------------------------------------------- Ship Finance International Ltd. released its preliminary results for the fourth quarter and year ended Dec. 31, 2006. Ship Finance posted US$57.81 million in net profit on US$118.43 million in net revenues for the fourth quarter of 2006, compared with US$83.01 million in net profit on US$143.16 million in net revenues for the same period in 2005. The company posted US$180.8 million in net profit on US$415.25 million in net revenues for the full year 2006, compared with US$209.55 million in net profit on US$437.51 million in net revenues for 2005. The Board of Directors has reviewed the long-term prospects for the Company including its significant fixed charter backlog and growth prospects, and decided to increase the dividend payment for the quarter to US$0.54 per share. The dividend will be paid on March 22 to shareholders of record as of March 8. The ex- dividend date is March 6. As of Dec. 31, 2006, the fleet consisted of 60 vessels, including seven vessels under construction or conversion. After subsequent announced sales and new acquisitions, the fleet will consist of 57 vessels, including nine vessels under construction. The gross fixed-rate charter backlog was US$5.2 billion as of Dec. 31, 2006, with an average charter tenor of 11.4 years. Some of our charters have purchase options, which, if exercised, will reduce the fixed charter backlog and average charter tenor. At Dec. 31, 2006, US$449.1 million of the 8.5% Senior Notes due 2013 was outstanding. Senior Notes with a par value of US$51.5 million were subject to Bond Swap Agreements as of year-end. During the first quarter of 2007, this has increased by an additional US$5.0 million. The annual interest rate on the US$56.5 million of Senior Notes held under Bond Swap Agreements has been effectively reduced to approximately Libor + 1.00%. Strategy and Outlook The strategy of the Company is to increase its portfolio of assets and to employ its assets on medium to long-term contracts. The Company will seek to reduce the risks for its shareholders by investing in different sectors of the shipping and oil service industry, and also by having a diversified client base. Over the last 12 months, the Company has committed to new investments in excess of US$1.1 billion, and these investments are expected to increase the Company's fixed charter income and dividend distribution capacity. The Company will continue to pursue new projects, and additional investment opportunities are currently under consideration. The Company has significant capital available to fund the equity portion of new projects, including approximately US$130 million in net cash proceeds from the sale of the six single-hull tankers and US$78.9 million in profit-share due from Frontline. Based on current financing levels available in the market for projects with long-term charters, Ship Finance has the capacity to invest in new projects with a gross cost price in excess of US$1.0 billion without raising additional equity capital. About Ship Finance Headquartered in Bermuda, Ship Finance International Limited -- http://www.shipfinance.org/-- through its subsidiaries engages in the ownership and operation of oil tankers, including oil/bulk/ore (OBO) carriers. The company operates through subsidiaries and partnerships located in Bermuda, Cyprus, Isle of Man, Liberia, Norway and Singapore. It is also involved in the charter, purchase and sale of vessels. * * * Moody's Investors Service affirmed Ship Finance International Ltd.'s ratings, including the Ba3 Corporate Family Rating, the Ba2 Senior Secured Bank Credit Facilities and the B1 Senior Unsecured Notes rating. Moody's said the ratings outlook remains stable. SPECTRUM BRANDS: To Hold Annual Shareholders' Meeting on Apr. 25 ---------------------------------------------------------------- Spectrum Brands, Inc., will hold its annual shareholders' meeting on April 25, 2007, at 8:00 a.m. CT at the company's North American headquarters, at 601 Rayovac Drive in Madison, Wisconsin. Shareholders of record as of March 27, 2007, will be entitled to vote at the meeting. A detailed description of matters to be discussed at the meeting will be included in a proxy statement to be filed with the Securities and Exchange Commission and mailed to shareholders shortly after the record date. About Spectrum Brands Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 13, 2007, that Standard & Poor's Ratings Services lowered all of its ratings on Atlanta, Georgia-based Spectrum Brands Inc., including the company's corporate credit rating, which was lowered to 'CCC+' from 'B-'. The outlook is developing. Moody's Investors Service confirmed Spectrum Brands Inc.'s B3 Corporate Family Rating in connection with the rating agency's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology. =============== T H A I L A N D =============== DAIMLERCHRYSLER AG: Blackstone is Lead Contender for U.S. Unit -------------------------------------------------------------- Blackstone Group is the leading contender to buy DaimlerChrysler AG's Chrysler Group, Reuters reports, citing The Detroit News. According to the report, the private equity firm is moving forward with a detailed analysis of Chrysler's finances and operations with an eye toward making a formal bid. Other possible buyers to the German automaker's troubled U.S. unit include Cerberus Capital Management, Reuters says, quoting The Detroit News. Reuters relates that two sources close to the sales said last week that a detailed sales prospectus for Chrysler Group bidders should be completed soon, the first step toward a potential sale that would unwind the 1998 merger that created DaimlerChrysler. Private equity firms are expected to be among the potential bidders for Chrysler that would consider the automaker's sale- related documents, the sources told Reuters. Lower February Sales As reported in the Troubled Company Reporter on Mar. 2, 2007, 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. FEDERAL-MOGUL: Ernst & Young Raises Going Concern Doubt ------------------------------------------------------- Ernst & Young LLP, in Detroit, Michigan, expressed substantial doubt about Federal-Mogul Corp.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to uncertainties inherent in the bankruptcy process, referring to Federal-Mogul Corp. and its wholly owned United States subsidiaries' voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy code, and the joint filing of certain Federal-Mogul subsidiaries in the United Kingdom for Chapter 11 and Administration under the United Kingdom Insolvency Act of 1986. Federal-Mogul reported a net loss of US$549.6 million on net sales of US$6.326 billion for the year ended Dec. 31, 2006, compared with a net loss of US$334.2 million on net sales of US$6.286 billion for the year ended Dec. 31, 2005. Of the US$40 million increase in net sales in 2006, US$33 million is due to favorable foreign currency. Included in Federal-Mogul's loss before income taxes for 2006 is a charge of US$501 million associated with the settlement of the U.K. pension plans. Gross margin increased by US$64 million in 2006, primarily due to productivity and restructuring initiatives and the reduced pension expense of US$21 million associated with the settlement of the U.K. pension plants, partially offset by the increase in raw material costs over the prior year. Results for the full year were also impacted by reduced selling, general and administrative expenses, reduced charges related to asset impairments, reduced costs associated with the company's Chapter 11 proceedings, and higher average interest rates. "We are pleased with the progress achieved in 2006 and the company's improvement in operational performance. We maintain our focus on the implementation of our global profitable growth strategy to provide leading products, services and innovative technology that create value for our customers worldwide while satisfying our employee and stakeholder expectations," said Chairman, President and Chief Executive Officer Jos, Maria Alapont. "Federal-Mogul reached resolution of the Company Voluntary Arrangements for emergence of the United Kingdom administrated companies with activities in the Americas, Europe and Asia- Pacific, and has received U.S. Bankruptcy Court approval on the supplemental disclosure statement of our plan of reorganization. These are significant milestones toward exit from Chapter 11 and our commitment to confirm, on the hearing date set for May 8, 2007, our restructuring plan to emerge." At Dec. 31, 2006, the company's balance sheet showed US$7.179 billion in total assets, US$8.872 billion in total liabilities, US$54.2 million in minority interest in consolidated subsidiaries, resulting in a US$1.747 billion total stockholders' deficit. Cash Flows Net cash used by operating activities totaled US$422 million for the year ended Dec. 31, 2006, compared to net cash provided by operating activities of $318 million for 2005. Net cash flow used by investing activities was US$239 million in 2006, compared to net cash flow used by investing activities of US$160 million in 2005. Cash flow provided from financing activities was US$608 million during 2006, compared to cash flow used by financing activities of US$406 during 2005. This change primarily resulted from the release of US$762 million in restricted cash in 2006, partially offset by net payments on the company's available credit facilities. About Federal-Mogul Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. In the Asian Pacific region, the company has operations in Malaysia, Australia, China, India, Japan, Korea, and Thailand. The company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue No. 128; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ITV PCL: Goes Off The Air As Government Gears for Take-Over ----------------------------------------------------------- iTV Pcl station went off the air immediately after midnight on March 7, pending the Council of State's ruling as to whether the Public Relations Department can take over and operate the station, which has failed to pay more than THB100 billion in debts to the Prime Minister's Office, The Nation reports. According to The Nation, iTV staff filed a petition with the Central Administrative Court asking for an injunction against the decision of the Prime Minister's Office to temporarily close down the station. However, the report notes, it is uncertain whether the injunction, if granted, will take effect before the Council of State's ruling comes out. The Council of State is expected to issue its ruling on Friday and the PR Department hopes to re-open iTV by Saturday, the report notes. The reopening can only take place if the Council of State agrees that the PR Department is ready to take over iTV. The Nation says that iTV's last hope depends on the Central Administrative Court's decision on the case. According the report, PMO Minister Khunying Dhipavadee Meksawan said that the PMO has no intention to close down iTV, and the sooner the Council of States issues a ruling, the sooner can iTV resume its operations. The Nation recounts that on Tuesday evening, the PMO appointed a Human Resource expert Chira Hongladarom to be the new project manager of Thai Independent Television or TITV, the new name for iTV, and just after midnight, equipment was moved out of the iTV office at the Shinawatra III Building to an old vacant building of the PR Department. According to the report, Prime Minister Surayud Chulanont said that his cabinet had reviewed the information relating to recent events concerning iTV, and they had acted according to law. The report states that, according to Minister Dhipavadee, the temporary closedown of iTV was done in the best interests of the country because the network would become the property of the Prime Minister's Office if iTV fails to settle its debts. Minister Dhipavadee said that the PMO should have the mandate to assign the PR Department to operate the beleaguered station, but the PMO will consult with the Council of State to ensure full compliance with the law. About iTV iTV Pcl's principal activity is producing and broadcasting television programs and channels, including the promotion of related rights and assets. Shin Corp Plc is iTV's major shareholder, with a 53% stake. Singapore's state investment arm Temasek Holdings controls more than 96% of Shin, which was previously owned by caretaker Prime Minister Thaksin Shinawatra's family. Earlier this year, it sold its majority stake in iTV to Temasek. The Troubled Company Reporter - Asia Pacific reported on June 23, 2006, that the Prime Minister's Office demanded a concession fee payment and fines to the government from the television network. The demand, TCR-AP recounted, was a result of the Arbitration Court's consent given to the company to pay an annual concession fee to the Prime Minister's Office amounting to THB230 million. The original rate before the consent amounted to THB1 billion per year. On Dec. 15, 2006, the TCR-AP reported that the Supreme Administrative Court upheld the Central Administrative Court's verdict by voiding the arbitration ruling on concession fee payments won by iTV in 2004. The overdue concession payment and fines that the broadcaster must pay reached THB100 billion. The TCR-AP reported on Mar. 5, 2007, that the Prime Minister's Office will form a panel to supervise iTV Pcl if the company's license is revoked as a result of its failure to pay fines and fees aggregating THB102.21 billion. TRUE MOVE: Expects to Break Even in 2007 ---------------------------------------- True Move Company Limited sets its sale growth target to half of last year's due to shrinking consumer purchasing power, coupled with unusually high sales growth last year and a saturating local mobile-phone market, The Bangkok Post reports. The report states that True Move will also enhance its "lifestyle convergence" policy by differentiating products and services through the True Corp. group's diverse distribution channels to seek new revenue sources and improve the bottom line. "We hope to break even this year after having been in the red since our inception," The Bangkok Post quotes True Move director for marketing and customer-relationship management Suphakit Vuntanadit. The report states that True Move reported a net loss of THB3.008 billion for last year, THB2.11 billion the year before, and earnings before interest deductions and amortizations amounted to THB5.07 billion in 2006, THB5.09 billion in 2005, but revenue increased 14% to THB22.3 billion in 2006. According to the report, Mr. Suphakit said that last year, True Move had 3.1 million customers, up 70% -- a record-high -- lifting the company's customer base to 7.6 million, or 19.3% of the market. Mr. Suphakit also said that True Move wants to have 1.6 million of the 5 million new mobile-phone subscribers expected in 2007, 80% of which would come from the provinces, especially in the Northeast, the report says. About True Move True Move Company Limited, formerly TA Orange, is a wholly owned subsidiary of True Corp Pcl. The company is headquartered in Bangkok, Thailand, and is the country's third largest mobile telecommunications operator. As reported by the Troubled Company Reporter - Asia Pacific on Nov. 27, 2006, Standard & Poor's Ratings Services assigned its BB- long-term corporate credit rating to Thailand's third- largest cellular operator, True Move Co. Ltd. The outlook is negative. In addition, Standard & Poor's assigned its B issue rating to True Move's senior unsecured notes, assuming a debt size of about US$450 million. Moreover on Dec. 20, 2006, the TCR-AP reported that Moody's Investors Services affirmed its B1 corporate family rating for True Move Company Limited and its B2 senior unsecured long-term debt ratings for True Move's US$465 million Notes issue, due 2013, and removed all ratings from their provisional status. ********* 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 ***