/raid1/www/Hosts/bankrupt/TCRAP_Public/070309.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, March 9, 2007, Vol. 10, No. 49
Headlines
A U S T R A L I A
ADVANCED MARKETING: Panel Wants Lowenstein as Lead Counsel
ADVANCED MARKETING: Panel Taps Morris Nichols as Local Counsel
APPLIED MANUFACTURING: Creditors Must Prove Debts by March 13
ARMOR HOLDINGS: Declares US$47.1 Million in MOLLE Orders
COEUR D'ALENE: Earns US$88.5 Million in 2006 Fiscal Year
COMMSCOPE: Earns US$127.2 Million in Quarter Ended Dec. 31, 2006
D1994 PTY: Members to Hear Liquidator's Report on March 27
DAVLYN ELECTRICAL: Creditors Appoint B. Kijurina as Liquidator
ENESCO GROUP: Files Schedules of Assets and Liabilities
ENESCO GROUP: Committee Taps Morris-Anderson as Financ'l Advisor
FANTASY LANE: Members & Creditors Meeting Set for March 28
ITRON: Buying Actaris Metering's Bonds & Stock for US$1.6 Bil.
ITRON INC: S&P Places BB- Rating on Watch Neg. Over Actaris Deal
ITRON INC: Moody's Review Ratings and May Downgrade
KEMBLA TIMBER: Members Opt to Shut Down Business
MULTIPLEX GROUP: Joins Infinity to Develop Pegasus Town
PRUDENTIAL-BACHE: Members' Final Meeting Slated for March 28
SUNCORP-METWAY: Promina Merger Prompts Worry About Job Security
SUNCORP-METWAY: Merger Cues Goldman Sachs to Lift Ratings
TELEPHONE CORPORATION: Placed Under Members' Voluntary Wind-Up
WESTPOINT GROUP: Judge Dismisses ASIC Action Against Rold Corp.
WODONGA PASTORAL: Members & Creditors to Meet on March 30
C H I N A & H O N G K O N G
CAPITAL PITH: Wind-Up Petition Hearing Slated for March 28
CHINESE BUILDING: Members' Final Meeting Set for April 18
CHUN LUNG CONSTRUCTION: Faces Wind-Up Petition by Interlite
CITIC BANK: Banco Bilbao Gets 4.83% Stake for CNY4.9 Billion
HAINAN AIRLINES: Plans Units Merger and Overseas Listing in 2007
HONG KONG FROZEN MEAT: Members Final Meeting Slated for April 11
HUA XIA: Chairman Says Deutsche Bank Won't Raise Stake
M.S. LIMITED: Liquidator to Present Wind-Up Report on April 2
MATTCON ENGINEERING: Court To Hear Wind-Up Petition on April 11
PANVA GAS: Completes Sale of 45% Stake to Towngas
QUADRIGA ASSET: Creditors Must Prove Debts by March 23
RETA ORNAMENT: Dah Sing Bank Seeks to Liquidate Company
STARAUTO LIMITED: Wind-Up Petition Hearing Slated for March 21
TEAMSING ELECTRONIC: Creditors' Meeting Slated for March 20
I N D I A
BRITISH AIRWAYS: To Sustain Charge Over Airline Operations Sale
HMT LTD: Appoints Two New Part-Time Non-Official Directors
ICICI BANK: Board Approves Incorporation of New Subsidiary
ICICI BANK: Allots 61,670 Shares in February Under ESOS
IFCI LTD: Deutsche Securities Increases Shareholding to 5.02%
IFCI LTD: Appoints Atul Kumar Rai as New Director
INDIAN OVERSEAS: Gov't. Names C. Chandramouliswaran as Director
GENERAL MOTORS: Further Delays Filing of Reports Until March 16
I N D O N E S I A
AFC ENTERPRISES: Mr. Keymer Resigns as Chief Executive Officer
ALCATEL-LUCENT: Completes First EDGE Wireless Technology Trial
ALCATEL-LUCENT: Appoints New President for European Operations
ALLIANCE ONE: Closes Private Offering for US$150MM Senior Notes
CORUS GROUP: Unit Hikes Hot Rolled Prices by 5% in EU and UK
CORUS GROUP: Increases UK Wire Rod Prices by 8% to 10%
FREEPORT-MCMORAN: To Launch US$6 Billion Senior Notes Offering
GENERAL NUTRITION: Discloses Fourth Quarter Financial Estimates
HILTON HOTELS: S&P Lifts Rating on US$25MM Certificates to BB+
INTERNATIONAL NICKEL: Posts US$265MM Net Income in 2006 4th Qtr.
J A P A N
ALL NIPPON: Buys 4 More 777-300ER Aircraft To Boost Up Fleet
BANK OF IKEDA: Fitch Affirms C/D Individual Rating
BECKMAN COULTER: Earns US$186.9 Million in Year Ended Dec. 31
FORD MOTOR: Nears Deal to Sell Aston Martin Unit in Auction
JAPAN AIRLINES: Shares Tokyo-Jeju Island Flights with KAL
NANTO BANK: Fitch Affirms Individual Rating at 'C'
NIKKO CORDIAL: Citigroup Offer Too Low, Biggest Shareholder Says
NORTHWEST AIRLINES: Wants Exclusive Periods Extended to June 29
OITA BANK: Fitch Affirms 'C' Individual Rating
SOFTBANK CORP: To Seek Damages Over Financial Times Report
TIMKEN COMPANY: Earns US$222.53 Million in Year Ended 2006
K O R E A
KOOKMIN BANK: To Cut Service Fees to Attract More Customers
LG.PHILIPS: To Sell Czech Display Plant to CTP Invest for EUR40M
MILACRON INC: Posts US$8.6MM Net Loss for 2006 Fourth Quarter
NOVELIS INC: Incurs US$275 Billion Net Loss in 2006 Fiscal Year
QUANTUM CORP: Incurs US$9.5MM Net Loss for Quarter Ended Dec. 31
M A L A Y S I A
COMSA FARMS: Bursa Defers Securities Delisting
FOREMOST HOLDINGS: Posts MYR23.34-Mil. Net Loss in 4th Qtr 2006
HARVEST COURT: Balance Sheet Upside Down By MYR13.6MM in Dec. 31
KUMPULAN BELTON: Bursa to Suspend Securities Trading on March 15
MALAYSIA AIRLINES: No Bidder Yet for Seri Pacific Stake
METROPLEX BERHAD: Bursa to Delist Securities on March 14
SILVERSTONE CORP: Appeals Bursa's Securities Delisting Decision
STAR CRUISES: To Buy Genting's 25% Stake in Macau Casino
P H I L I P P I N E S
MAIDENFORM BRANDS: Earns US$3.2 Million in Quarter Ended Dec. 30
PHIL. LONG DISTANCE: Gov't. to Go After Marcoses on Dividends
TOWER RECORDS: Court OKs Pact Expanding Consor's Retention Scope
* Philippines' End-February GIR Hits US$24-Billion Mark
* Country's Inflation Eases Further to 2.6% in February
S I N G A P O R E
CHINA AVIATION: Closes Jet Fuel Tender for April 2007 Deliveries
PETROLEO BRASILEIRO: Processes 1.9MM Barrels of Crude Last Month
PETROLEO BRASILEIRO: Will Launch Exploratory Drilling in Peru
REFCO INC: Refco LLC Files January 2007 Monthly Operating Report
* SGX Acquires 5% Stake in Bombay Stock Exchange
T H A I L A N D
COMPUTER SCIENCES: Files Delinquent Quarterly Reports with SEC
DAIMLERCHRYSLER AG: Will Develop Hybrid Drive System with BMW
DAIMLERCHRYSLER: Considers Sale of Chrysler Group's Finance Arm
DAIMLERCHRYSLER AG: Two Main Unions Spar Over Chrysler's Future
ITV PCL: Council Of State Approves PR Department's Takeover
PHELPS DODGE: Freeport Offers US$6 Billion Notes to Fund Buy
* Large Companies With Insolvent Balance Sheets
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A U S T R A L I A
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ADVANCED MARKETING: Panel Wants Lowenstein as Lead Counsel
----------------------------------------------------------
The Official Committee of Unsecured Creditors in Advanced
Marketing Services Inc. and its debtor-affiliates bankruptcy
cases seeks the authority of the United States Bankruptcy Court
for the District of Delaware to retain Lowenstein Sandler PC as
its main counsel to perform services relating to the Debtors'
bankruptcy cases, effective as of Jan. 12, 2007.
The Creditors Committee has selected Lowenstein because of its
attorneys' experience and knowledge. The Committee believes
that Lowenstein is well qualified to represent it in the
Debtors' Chapter 11 cases.
As the Creditors Committee's counsel, Lowenstein will:
(a) provide legal advise as necessary with respect to the
Committee's powers and duties as an official committee
appointed under Section 1102 of the Bankruptcy Code;
(b) assist the Committee in investigating the acts, conduct,
assets, liabilities, and financial condition of the
Debtors, the Debtors' business operations, potential
claims, and any other matters relevant to the Debtors'
bankruptcy cases or to the formulation of a Chapter 11
plan;
(c) participate in the formulation of a Plan;
(d) provide legal advices with respect to any disclosure
statement and Plan filed the Debtors' bankruptcy cases,
and with respect to the process for approving or
disapproving disclosure statements and confirming or
denying confirmation of a Plan;
(e) prepare on behalf of the Committee, as necessary,
applications, motions, complaints, answers, orders,
agreements and other legal papers;
(f) appear in the Court to present necessary motions,
applications, and pleadings, and otherwise protecting
the interests of those represented by the Committee;
(g) assist the Committee in requesting the appointment of a
trustee or examiner, should the action be necessary; and
(h) perform other legal services as may be required and that
are in the best interests of the Committee and
creditors.
Lowenstein will be paid on an hourly basis, plus reimbursement
of the actual and necessary expenses that Lowenstein incurs in
accordance with the ordinary and customary rates, which are in
effect on the date the services are rendered.
Lowenstein's hourly rates are:
Professional Hourly Rate
------------ -----------
Partners US$320 - US$595
Counsel US$265 - US$425
Associates US$165 - US$300
Legal Assistants US$75 - US$150
Kenneth A. Rosen, Esq., a member at Lowenstein, relates that the
charges set forth are based on actual time charges on an hourly
basis and based on the experience and expertise of the attorney
or legal assistant involved. The hourly rates are subject to
periodic adjustments to reflect economic and other conditions.
Mr. Rosen assures the Court that his firm represents no other
entity in connection with the Debtors' bankruptcy cases, is a
"disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code, and does not hold or represent any
interest adverse to the Creditors Committee with respect to the
matters on which it is to be employed.
Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry. The company
has operations in the U.S., Mexico, the United Kingdom, and
Australia, and employs approximately 1,200 people worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts of more than $100 million. The Debtors' exclusive
period to file a Chapter 11 Plan will expire on Apr. 28, 2007.
ADVANCED MARKETING: Panel Taps Morris Nichols as Local Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors in Advanced
Marketing and its debtor-affiliates bankruptcy case asks
authority from the United States Bankruptcy Court for the
District of Delaware to retain Morris, Nichols, Arsht & Tunnell
LLP, as its local counsel, nunc pro tunc to Jan. 31, 2007.
The Creditors Committee seeks to retain Morris Nichols because
of the firm's extensive experience, knowledge and resources in
the fields of, inter alia, debtors' and creditors' rights and
business reorganizations under Chapter 11 of the Bankruptcy
Code, William Sinnott of Random House, the Committee
Chairperson, relates.
Morris Nichols has advantage in expertise, experience and
knowledge practicing before the Court, as well as its proximity
to the Court, and its ability to respond quickly to emergency
hearings and other emergency matters in the Court, Mr. Sinnott
says. The Creditors Committee further believes that Morris
Nichols' attorneys are well qualified and able to represent it
in the Debtors' Chapter 11 cases.
As the Creditors Committee's local counsel, Morris Nichols will:
(a) advise the Committee with respect to its rights, duties
and powers in the Debtors' bankruptcy cases;
(b) assist and advise the Committee in its consultations
with the Debtors relative to the administration of the
bankruptcy cases;
(c) assist the Committee in analyzing the claims of the
Debtors' creditors in negotiating with the creditors;
(d) assist with the Committee's investigation of the acts,
conduct, assets liabilities and financial condition of
the Debtors and of the Debtors' business operation;
(e) assist the Committee in its analysis of, and
negotiations with, the Debtors or their creditors
concerning matters related to, among other things, the
terms of a plan or plans of reorganization for the
Debtors;
(f) assist and advise the Committee with respect to its
communications with the general creditor body regarding
significant matters in the Debtors' bankruptcy cases;
(g) assist and counsel the Committee in respect to its
organization; the conduct of its business and meetings;
the dissemination of information to its constituency;
and other matters as are reasonably deemed necessary to
facilitate the administrative activities of the
Committee;
(h) attend the meetings of the Committee;
(i) represent the Committee at all hearings and other
proceedings;
(j) review and analyze all applications, orders, statements
of operations and schedules filed with the Court, and
advise the Committee as to their propriety;
(k) assist the Committee in preparing pleadings and
applications as may be necessary in furtherance of the
Committee's interests and objectives; and
(l) perform other legal services as may be required and are
deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set
forth in the Bankruptcy Code.
Morris Nichols' compensation for professional services rendered
to the Creditors Committee will be based on the hours actually
expended by each assigned professional at each professional's
hourly billing rate.
Morris Nichols' current hourly rates are:
Professional Hourly Rate
------------ -----------
Partners US$425 - US$650
Associates US$220 - US$400
Paraprofessionals US$175
Case Clerks US$100
Morris Nichols has discussed with Lowenstein Sandler PC, the
Debtors' proposed main bankruptcy counsel, regarding the
division of their responsibilities so as to minimize duplication
of services on behalf of the Creditors Committee, Mr. Sinnott
tells the Court.
Eric D. Schwartz, Esq., a member of the firm, assures the Court
that none of Morris Nichols' partners, counsel or associates
hold or represent any interest adverse to the Debtors' estates
or their creditors, and that Morris Nichols is a "disinterested
person," as defined in Section 101(14) of the Bankruptcy Code.
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.
APPLIED MANUFACTURING: Creditors Must Prove Debts by March 13
-------------------------------------------------------------
Applied Manufacturing Pty Ltd, which is subject to a deed of
company arrangement, will declare a first and final dividend for
its creditors on April 17, 2007.
Accordingly, creditors are required to prove their debts by
March 13, 2007, to be included in the company's dividend
distribution.
The company's deed administrator is:
Stephen R. Dixon
Horwath BRI (Victoria) Pty Ltd
Chartered Accountants
Level 30, The Rialto
525 Collins Street
Melbourne Victoria 3000
Australia
About Applied Manufacturing
Applied Manufacturing Pty Ltd is a distributor of sheet
metalwork. The company is located in Victoria, Australia.
ARMOR HOLDINGS: Declares US$47.1 Million in MOLLE Orders
--------------------------------------------------------
Armor Holdings Inc. disclosed the award of a new delivery order
valued at US$47.1 million from the U.S. Army Natick Contracting
Activity. The company stated that this new order brings the
total accumulated orders to US$108.6 million that have been
issued under a US$258.9 million multi-year Indefinite
Delivery/Indefinite Quantity (ID/IQ) contract received in August
2006 for the supply of Modular Light - weight Load Carrying
Equipment -- MOLLE. Production will be performed in 2007 and
2008 by the Armor Holdings Aerospace and Defense Group at its
facilities located in Arizona, Kentucky, Pennsylvania and
Tennessee.
Robert Schiller, President of Armor Holdings, Inc., said, "The
MOLLE line of products has been very well received in the field
as the primary load carrying system for the U.S. Army. We have
invested in our production capacity for this important product
and we are very pleased with continued orders from our
customers. This system is an important part of a suite of
products designed to function together to provide critical
protection and survivability to the troops in the field."
Headquartered in Jacksonville, Florida, Armor Holdings, Inc. --
http://www.armorholdings.com/-- manufactures and distributes
security products and vehicle armor systems for the law
enforcement, military, homeland security, and commercial
markets. The company has operations in Australia, England and
Brazil.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.
Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013. Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.
COEUR D'ALENE: Earns US$88.5 Million in 2006 Fiscal Year
--------------------------------------------------------
Coeur d'Alene Mines Corporation reported record net income for
2006 of US$88.5 million compared to net income of
US$10.6 million for 2005. Results for 2006 include a gain of
US$11.1 million from the strategic sale of Coeur Silver Valley,
as well as US$1.9 million of income generated from CSV prior to
the sale. Cash provided by operating activities increased more
than 13-fold to US$91.2 million for the full year 2006 as
compared to US$6.7 million in 2005.
For the fourth quarter of 2006, the company reported net income
of US$23.2 million compared to net income of US$9.9 million for
the year-ago period. Cash provided by operating activities
increased 47% to US$21.2 million in the fourth quarter of 2006
as compared to US$14.5 million in the year-ago quarter.
Metal sales in the fourth quarter and full year of 2006 were
US$67.1 million and US$216.6 million, respectively, compared to
US$51.3 million and US$156.3 million for the year-ago periods.
In commenting on the company's full-year performance, Dennis E.
Wheeler, Chairman, President and Chief Executive Officer, said,
"For the full year 2006, Coeur reported record-setting
performance in terms of revenues, net income and cash flow, and
gold reserves. Silver production from continuing operations was
up by 10%, while our silver cash production cost per ounce
declined by nearly 6%. In addition, we reported a 16% increase
in our gold reserves. We remain focused on additional growth
initiatives designed to build upon this momentum in the areas of
silver and gold production, exploration, potential acquisition,
and continued management of our cash costs."
Mr. Wheeler added, "Net income in the fourth quarter of 2006 was
more than double that of the year-ago period due largely to
higher silver and gold prices, aided by stronger performance at
the Martha and Endeavor mines."
Mr. Wheeler said, "We expect silver and gold markets to remain
robust during 2007. We believe that strong demand for silver is
likely to support healthy market prices well beyond this year.
Such market conditions, combined with our ongoing strategic
initiatives, should enable the company to continue to generate
attractive earnings and cash flows. In addition, we are
actively evaluating acquisition opportunities that would bring
additional low-cost silver production into our system."
Coeur currently expects its existing mines to produce
approximately 13 million ounces of silver in 2007 with a cash
cost of approximately US$2.35 per ounce, which would represent
the lowest cash operating cost at Coeur in at least a decade.
The company expects full-year gold production to increase
roughly 17% to approximately 136,000 ounces, including
approximately 21,000 ounces from the Kensington gold mine, which
is expected to begin producing metal near the end of 2007.
During 2007, Coeur expects to complete construction of the San
Bartolome project, which will significantly contribute to the
company's silver production commencing in 2008. With the
commencement of production at San Bartolome and Kensington, the
company's production profile in 2008 would be sharply higher
than 2007.
Highlights by Individual Property
Rochester (Nevada)
The silver cash cost per ounce for the fourth quarter and full
year of 2006 were well below the cash costs reported for the
full year 2005 and 2004, reflecting the company's continued
efforts to improve operating efficiency and the benefit of
higher gold by-product credits. Fourth-quarter silver and gold
production were below the levels of the year-ago period due to
normal variations in the recovery of metal from the heap. The
moderate increase in the silver production cash cost per ounce
relative to that of the year-ago quarter was the result of the
lower production.
Cerro Bayo (Chile)
Quarterly silver production increased 53 % and gold production
more than doubled relative to the levels of the preceding
quarter as the company continued to develop the new high-grade
Cascada vein system. Cascada, in particular, contributed to a
51% increase in silver grade and a 100 % increase in gold grade
on a sequential-quarter comparison. Silver production cash cost
per ounce dropped 91% relative to the preceding quarter due in
part to the higher production volumes. Relative to the year-ago
quarter, silver production cash cost per ounce declined 28 % due
to increased byproduct credits for gold. Quarterly silver
production was below the level of the fourth quarter of 2005 due
to fewer tons milled and modestly lower silver grades. The
company expects quarterly production levels to trend upward at
Cerro Bayo as the year progresses as mining continues in the
high-grade Cascada vein system.
Martha (Argentina)
Silver production increased 36% relative to the year-ago period
due to an increase in tons milled and modestly higher silver
grades. In particular, Martha's silver production during the
fourth quarter of 2006 reached its second-highest level in the
mine's history. Silver production cash cost per ounce increased
relative to the year-ago quarter due to higher royalties
resulting from higher metal prices. In addition, the company is
completing a feasibility study regarding possible construction
of a flotation mill at Martha. Currently, Martha's ore is
shipped to Cerro Bayo for processing. If approved by the
company's board of directors, the new mill would enable Martha
to process ore on site and would support the continued expansion
of reserves and resources at Martha and at recently acquired
interests in the Santa Cruz province.
Endeavor (Australia)
Quarterly silver production increased almost five-fold relative
to the year-ago period and 32% relative to the preceding
quarter, due to improvement in mine performance. Silver cash
production cost per ounce was higher than that of both
comparable periods due primarily to higher smelting and refining
charges.
Broken Hill (Australia)
Quarterly silver production declined relative to the year-ago
and preceding quarters due to fewer tons milled and modestly
lower grades. Silver cash production cost per ounce was above
the levels of both comparable periods due mainly to higher
smelting and refining charges.
Update on San Bartolome Project
Coeur estimates the capital cost (excluding political risk
insurance premiums and capitalized interest) at San Bartolome to
be approximately US$174 million, as compared to the previous
cost estimate of US$135 million. The increase is due to overall
inflation impacting capital costs since the updated feasibility
study was completed in 2005. Based upon an initial estimated
cash cost of US$4.00 per ounce and current metal prices, the
company expects the project will provide attractive returns.
Commercial production is expected to commence in January 2008,
with approximately 9 million ounces produced that year.
At San Bartolome, capital expenditures totaled US$7.0 million
and US$14.6 million for the fourth quarter and full year of
2006, respectively. Recent activity has focused on construction
of the tailings facility and preparations for pouring concrete
at the mill site.
Based on available information, the company believes that the
Government of Bolivia has no intention to assume ownership of
the San Bartolome project. The Government has expressed a
desire to increase taxes in the mining sector but has not yet
submitted any formal proposals in this regard, partly because
the country's mining cooperatives are opposed to such a move.
Coeur remains confident that the San Bartolome project will
proceed on schedule.
Update on Kensington Project
Coeur currently estimates the total cost of construction of the
Kensington Gold Mine to be approximately US$238 million, as
compared to the previous cost estimate of US$190 million. The
increase is due to overall inflation that has impacted capital
costs as well as higher expenses associated with a legal
challenge to one of the mine's existing permits. The company
estimates the cash production cost will be US$310 per ounce in
the initial years of operation. The recent improvement in grade
at Kensington is expected to enable the mine to produce as much
as 150,000 ounces of gold annually in its early years of
operation. Coeur believes that commercial production could
commence in late 2007, subject to successful resolution of
litigation concerning an existing permit.
At Kensington, capital expenditures totaled US$35.0 million and
US$121.5 million for the fourth quarter and full year of 2006,
respectively. Recent activity has focused on completion of the
mill and crusher buildings.
Balance Sheet and Capital Investment Highlights
The company had US$341 million in cash and short-term
investments as of Dec. 31, 2006. Capital expenditures during
the fourth quarter and full year of 2006 amounted to US$45.5
million and US$148 million, respectively. The company's capital
investment is focused on the Kensington and San Bartolome
projects.
Exploration Spending Results in
Increased Gold Mineral Reserves
Consistent with the company's objective to steadily increase its
reserves and grow its production profile, Coeur expects to
invest approximately US$15.3 million in exploration and reserve
development in 2007, largely to continue to increase mineral
resources and reserves at its properties in Alaska, Argentina,
and Chile, where the company has multiple prospective vein
systems that have already yielded attractive drill-hole results.
The budget also includes a record-level of spending devoted to
"greenfields" exploration to discover new silver and gold
deposits in prospective regions of the world. The greenfields
exploration targets, which account for nearly 40% of the budget,
are located primarily in Argentina, Tanzania and in parts of
Chile and Mexico where the company has not previously been
active.
The company's 2006 investment of US$9.5 million in exploration
contributed to an increase of 16% in proven and probable gold
mineral reserves as of Dec. 31, 2006, in comparison to the prior
year. In addition, silver mineral reserves increased at year-
end 2006 at Martha, Endeavor, and Broken Hill. Proven and
probable silver mineral reserves for continuing operations also
increased.
Highlights of the company's exploration program and updated
mineral reserve position:
Cerro Bayo -- reported a 21% increase in silver grade, to 9.69
ounces per ton, in its proven and probable mineral reserves.
Recent exploration focus has been on the Cascada and Marcela Sur
vein systems, both of which have shown higher grades than have
previously been seen at Cerro Bayo. Core drilling in 2006
totaled 232,000 feet.
Kensington -- reported 29% increase in gold mineral reserves, to
1.35 million ounces. Kensington also achieved a 24% increase in
gold grade, to 0.31 ounces per ton. Core drilling totaled more
than 32,000 feet at Kensington and 13,500 feet on the adjacent
Jualin property. In addition, at the end of 2006, Kensington
had 866,000 ounces of gold mineral resources (623,000 ounces of
indicated resources and 243,000 ounces of inferred resources).
Martha -- reported a 50% increase in proven and probable silver
mineral reserves to 6.1 million ounces, as well as an increase
in silver grade. Recent focus has been on the Martha, R4,
Catalina, and Francisca veins. All drilling at Martha totaled
87,000 feet.
Argentina Greenfields Activity -- As part of its initial
greenfields exploration in other parts of Argentina, in 2006,
the company acquired four new exploration properties referred to
as the El Aguila, Costa, Sascha and Joaquin properties. Core
drilling commenced on El Aguila in eastern Santa Cruz late in
the year and totaled 3,300 feet.
Australian interests -- Endeavor and Broken Hill both reported
mid-year 2006 increases in silver mineral reserves in relation
to 2005: 37% at Endeavor and 20% at Broken Hill.
Tanzania -- in 2006 the company completed more than 44,000 feet
of shallow, rotary air blast drilling in gold-in-soil anomalies
at Kiziba Hill property, which includes a large zone of
anomalous gold-in-soil values, measuring over 1.2 miles long in
a west-northwest direction by over 0.3 miles wide in an east-
northeast direction. In December of 2006, the company began
core drilling on the nearby Saragurwa property and at year-end
had completed more than 1,300 feet of core drilling. Drilling
will continue at both locations in 2007.
About Coeur d'Alene Mines
Coeur d'Alene Mines Corp. -- http://www.coeur.com/-- is the
world's largest primary silver producer, as well as a
significant, low-cost producer of gold. The company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia
and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15,
2024, carry Standard & Poors' B- rating.
COMMSCOPE: Earns US$127.2 Million in Quarter Ended Dec. 31, 2006
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CommScope Inc. announced strong fourth quarter results for the
period ended Dec. 31, 2006. The company reported fourth quarter
sales of US$393.7 million and net income of US127.2 million. The
reported net income includes after-tax charges of US$1.1 million
related to restructuring costs. Excluding this special item,
adjusted fourth quarter earnings were US$28.3 million.
For the fourth quarter of 2005, CommScope reported sales of
US$345.8 million and net income of US$16.6 million. The
reported net income included total after-tax charges of
US$11.6 million related to restructuring costs and an after-tax
gain of US$8.3 million related to recovery of accounts
receivable that had previously been written off. Excluding
these special items, adjusted earnings were US$19.9 million.
"We are very pleased to celebrate our 30th anniversary with
record performance," said Frank M. Drendel, CommScope Chairman
and Chief Executive Officer. "During 2006, we increased sales
21%, improved operating income by more than 75% and grew cash
flow from operations by 38% to US$118.8 million. I am
particularly proud of CommScope's team for creating profitable
growth while successfully implementing the global manufacturing
initiatives."
"Powerful drivers are changing the face of global
telecommunications," stated Mr. Drendel. "Higher-bandwidth
network applications, broadband video growth and 'IP-everywhere'
business models continue to drive global demand for
infrastructure solutions. We believe that each of our business
segments is well positioned for ongoing success due to the
expanding demand for communications bandwidth."
Sales Overview
Sales for the fourth quarter of 2006 increased 13.9% year over
year, primarily driven by higher prices and increased customer
demand in both the Enterprise and Broadband segments.
Enterprise sales rose 15.0% year over year to US$187.5 million,
primarily due to higher prices and higher sales volume.
Enterprise sales rose across essentially all geographic regions
with particular strength in the Europe, Middle East and Africa
and Central and Latin American regions. As previously expected,
sales declined sequentially primarily due to strong shipments in
the third quarter and the typical seasonal slowdown. The
Enterprise segment continues to experience year-over-year growth
as businesses invest in higher capacity infrastructure solutions
and continue to consolidate data centers.
Broadband segment sales rose to US$144.0 million, up 20.7% year
over year primarily due to price increases implemented in the
first half of 2006, higher sales volume and a product line
acquisition announced in early 2006. The Broadband sales volume
reflects continued competition between cable television
operators and telephone companies that provide bundled services
for residential and commercial customers.
Carrier sales decreased 2.5% year over year to US$62.4 million.
The year-over-year and sequential decrease is due primarily to
the anticipated fourth quarter slowdown in spending by a major
telecommunications company. Despite this volatility, the
Carrier segment was the fastest growing segment for CommScope
during calendar year 2006. CommScope believes that the outlook
for ongoing Carrier growth is positive as telephone companies
continue investing in their infrastructure to support video and
high-speed data services.
Total international sales for the fourth quarter of 2006 rose
11.4% year over year to US$135.0 million, or approximately 34.3%
of total company sales.
External orders booked in the fourth quarter of 2006 were
US$354.4 million, up 15.5% from the year-ago quarter.
Global Manufacturing Initiatives
CommScope's fourth quarter 2006 results reflect net pretax
restructuring charges of US$1.8 million (US$1.1 million after
tax) for costs associated with the previously announced global
manufacturing initiatives. These initiatives have been
substantially completed.
Other Highlights:
-- CommScope, in collaboration with Solarflare(TM)
Communications, recently demonstrated the first standards-
compliant 10GBASE-T server adapter at Cisco Networkers 2007
in Cannes, France. The demonstration featured CommScope's
SYSTIMAX(R) GigaSPEED(R) X10D Solution and Solarflare
Solarstorm(TM) 10GBASE-T server adapters.
-- Gross margin for the fourth quarter was 28.2%, up 240 basis
points year over year. The gross margin improvements were
primarily due to price increases, higher sales volume,
favorable mix and the positive impact of the company's
global manufacturing initiatives.
-- SG&A for the fourth quarter of 2006 was US$64.8 million,
compared to US$40.5 million in the year-ago quarter. The
increase in SG&A results primarily from increased selling
and marketing expenses related to higher sales and the
impact of a US$13.2 million pretax benefit recognized in
2005 related to the recovery of accounts receivable from
Adelphia that had been written off in 2002.
-- Fourth quarter 2006 results include US$1.5 million of
pretax, equity-based compensation expense in accordance
with SFAS No. 123(R).
-- Operating income for the fourth quarter of 2006 was US$36.3
million or 9.2% of sales. Excluding restructuring costs,
operating income would have been US$38.1 million or 9.7% of
sales. In the year-ago quarter, operating income was
US$21.8 million or 6.3% of sales. Excluding special
items, operating income would have been US$27.0 million or
7.8% of sales for the quarter.
-- Total depreciation and amortization expense was US$13.7
million for the fourth quarter of 2006.
-- Net cash provided by operating activities in the fourth
quarter of 2006 was US$87.4 million. Capital spending in
the quarter was US$8.9 million.
Full Year 2006 Results
CommScope reported sales of US$1,623.9 million for calendar year
2006, and net income of US$130.1 million. The company's 2006
results included an after-tax charge of US$8.1 million related
to restructuring costs and an after-tax benefit of
US$18.6 million related to a recovery on a note receivable from
OFS BrightWave, LLC.
CommScope reported sales of US$1,337.2 million for calendar year
2005, and net income of US$50.0 million. The company's 2005
results included an after-tax charge of US$24.6 million related
to restructuring costs, an after-tax benefit of US$8.3 million
related to recovery of accounts receivable from Adelphia, and
other net after-tax charges totaling US$0.5 million.
Gross margin for calendar year 2006 was 27.3% and operating
margin was 9.8%. Excluding pre-tax restructuring costs of
US$12.6 million, operating margin was 10.5%.
Cash flow from operations in 2006 was US$118.8 million and
reflects depreciation and amortization of US$55.6 million.
Capital spending was US$31.6 million for the year and the
company ended 2006 with US$427.9 million in cash, cash
equivalents and short-term investments.
Outlook
CommScope management provided the following guidance for the
first quarter of 2007 and calendar year 2007:
First Quarter 2007
-- For the first quarter of 2007, revenue is expected to be
US$390-US$410 million and operating margin is expected to
be 10.5% - 11.5%, excluding special items.
-- Effective tax rate of approximately 30%-34%.
Calendar Year 2007
-- For calendar year 2007, the company has increased its
revenue and operating margin guidance. CommScope now
expects revenue in the range of US$1.72-US$1.76 billion and
operating margin around the 12% level, excluding special
items.
-- Effective tax rate of approximately 30%-34%.
-- Depreciation and amortization expense of approximately
US$50 million.
-- Capital spending of approximately US$30-US$40 million.
"We are pleased with our record financial performance in 2006,"
said Jearld L. Leonhardt, Executive Vice President and Chief
Financial Officer. "We believe CommScope ended the year with a
solid financial foundation and expect to continue the positive
momentum in 2007.
"Despite volatile raw material costs, we continue to believe
that we can achieve reasonable sales growth while increasing
operating income by more than 20%, excluding special items,"
Mr. Leonhardt concluded.
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) --
http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications. It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications. Backed by strong research and
development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.
CommScope has facilities in Brazil, Australia, China and
Ireland.
* * *
Standard & Poor's Rating Services removed its rating on Hickory,
North Carolina-based CommScope, Inc., from CreditWatch with
negative implications from CreditWatch, where they were placed
with negative implications on Aug. 7, 2006, and affirmed the
existing 'BB' corporate credit rating. S&P said the outlook is
stable.
D1994 PTY: Members to Hear Liquidator's Report on March 27
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The members of D1994 Pty Ltd will have a general meeting on
March 27, 2007, at 2:30 p.m., to hear the liquidator's report
about the company's wind-up proceedings and property disposal.
The company's liquidator is:
Jason Bettles
Worrells Solvency & Forensic Accountants
Level 6, 50 Cavill Avenue Surfers
Paradise Queensland 4217
Australia
Webs site: http://www.worrells.net.au/
About D1994 Pty
Headquartered in Queensland, Australia, D1994 Pty Ltd is a
general contractor of industrial buildings and warehouses.
DAVLYN ELECTRICAL: Creditors Appoint B. Kijurina as Liquidator
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At an extraordinary general meeting held on Feb. 21, 2007, the
members of Davlyn Electrical Services Pty Ltd decided to close
the company's operations.
In this regard, the creditors appointed Brent Trevor Alex
Kijurina of Smith Hancock as the company's liquidator.
Mr. Kijurina can be reached at:
Brent Trevor Alex Kijurina
Smith Hancock Chartered Accountants
Level 4, 88 Phillip Street
Parramatta, New South Wales 2150
Australia
About Davlyn Electrical
Located in New South Wales, Australia, Davlyn Electrical
Services Pty Ltd is a special trade contractor.
ENESCO GROUP: Files Schedules of Assets and Liabilities
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Enesco Group, Inc., filed with the United States Bankruptcy
Court for the Northern District of Illinois its schedules of
assets and liabilities disclosing:
Assets Liabilities
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A. Real Property US$16,400,000
B. Personal Property US$45,479,068
C. Property Claimed as Exempt
D. Secured Claims US$53,997,656
E. Unsecured Priority Claims
F. Unsecured Non-priority Claims US$177,512,524
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Total US$61,879,068 US$231,510,180
Headquartered in Itasca, Illinois, Enesco Group, Inc. ---
http://www.enesco.com/-- is a producer of giftware, and home
and garden decor products. Enesco's product lines include some
of the world's most recognizable brands, including Disney,
Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane,
Border Fine Arts, among others.
Enesco distributes products to a wide array of specialty gift
retailers, home decor boutiques and direct mail retailers, as
well as mass-market chains. The company serves markets
operating in Europe, Mexico, Asia and the Pacific Rim, including
Australia. With subsidiaries in Europe, Canada and a business
unit in Hong Kong, Enesco's international distribution network
leads the industry.
Enesco Group and its two affiliates, Enesco International Ltd.
and Gregg Manufacturing, Inc., filed for chapter 11 protection
on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565).
Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps,
Slate, Meagher & Flom LLP, represent the Debtors. The Debtors'
financial condition as of Nov. 30, 2006, showed total assets of
US$155,350,698 and total debts of US$107,903,518.
ENESCO GROUP: Committee Taps Morris-Anderson as Financ'l Advisor
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The Official Committee of Unsecured Creditors of Enesco Group,
Inc., and its debtor-affiliate, Gregg Manufacturing, Inc., ask
the United States Bankruptcy Court for the Northern District of
Illinois for permission to retain Morris-Anderson & Associates,
Ltd., as its financial advisor.
Morris-Anderson will:
a) assist the Committee in reviewing the Debtors' investment
banker retention application, the current stalking horse
bid and the completeness of the Debtors' current
marketing efforts;
b) meet with the Debtors' investment banker and management
to review the financial condition of the Debtors and
advise the Committee on the appropriateness of the sale
timeline;
c) assess the likelihood of a competing bid for the Debtors
and whether action can be taken to ensure a sale is
completed at current value or higher;
d) review manufacturers, shippers motion (critical vendors)
and related payment needs;
e) review the Debtors' cash budget;
f) monitor the Debtors' financial performance;
g) update the Committee as to findings via weekly
teleconferences;
h) observe the auction and providing input to Committee
counsel during the auction;
i) monitor the Cases until completion of the sale and
beyond, as appropriate; and
j) perform other financial advisory services as may be
required under the circumstances of these Cases and are
deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set
forth in the Bankruptcy Code.
Daniel F. Dooley, a principal of Morris-Anderson, tells the
Court that professionals of the firm bill:
Designation Hourly Rate
----------- -----------
Principals US$450
Managing Directors US$350
Financial Consultants US$300
Mr. Dooley assures the Court that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Headquartered in Itasca, Illinois, Enesco Group, Inc. ---
http://www.enesco.com/-- is a producer of giftware, and home
and garden decor products. Enesco's product lines include some
of the world's most recognizable brands, including Disney,
Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane,
Border Fine Arts, among others.
Enesco distributes products to a wide array of specialty gift
retailers, home decor boutiques and direct mail retailers, as
well as mass-market chains. The company serves markets
operating in Europe, Mexico, Asia and the Pacific Rim, including
Australia. With subsidiaries in Europe, Canada and a business
unit in Hong Kong, Enesco's international distribution network
leads the industry.
Enesco Group and its two affiliates, Enesco International Ltd.
and Gregg Manufacturing, Inc., filed for chapter 11 protection
on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565).
Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps,
Slate, Meagher & Flom LLP, represent the Debtors. The Debtors'
financial condition as of Nov. 30, 2006, showed total assets of
US$155,350,698 and total debts of US$107,903,518.
FANTASY LANE: Members & Creditors Meeting Set for March 28
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A final meeting will be held for the members and creditors of
Fantasy Lane Pty Ltd on March 28, 2007, at 10:30 a.m.
During the meeting, the members and creditors will hear the
liquidator's report regarding the company's wind-up proceedings
and property disposal.
As reported by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Aug. 24, 2006.
The company's liquidator can be reached at:
Gideon Rathner
Lowe Lippmann
Chartered Accountants
5 St Kilda Road
St. Kilda Victoria 3182
Australia
About Fantasy Lane
Located in Victoria, Australia, Fantasy Lane Pty Ltd operates
bookstores.
ITRON: Buying Actaris Metering's Bonds & Stock for US$1.6 Bil.
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Itron Inc. has signed an agreement to acquire all of the stock
and convertible bonds of Actaris Metering Systems. The purchase
price is EUR800 million plus the retirement of approximately
EUR445 million of debt, which, at an exchange rate of 1.30,
totals approximately US$1.6 billion. The acquisition is
expected to close in the second quarter of 2007.
This acquisition will allow Actaris to offer Itron's industry
leading AMR and advanced metering infrastructure technologies,
software and systems expertise to customers outside of North
America, and expand Actaris gas and water meter opportunities in
North America.
For the twelve months ended Dec. 31, 2006, Actaris generated
revenue of approximately US$1 billion and adjusted earnings
before interest, taxes, depreciation and amortization (Adjusted
EBITDA) of approximately US$159 million.
"This acquisition, which will more than double Itron's annual
revenues, brings together two industry leaders and reunites two
former Schlumberger divisions," said LeRoy Nosbaum, chairman and
CEO. "We have been looking for an investment that would allow
Itron to bring its superior AMR technology and systems expertise
to customers outside of North America. Our acquisition of
Actaris is the perfect choice to combine their quality meters
and established distribution channels with our expertise, which
will ultimately bring more value to customers around the globe.
No other meter or AMR provider offers a similar breadth and
depth of solutions to their customers in the utility industry.
This deal combines two companies that share a heritage, vision
and passion for this industry and our combined customers."
The acquisition of Actaris will be funded by approximately
US$1.1 billion of fully-committed senior secured debt
facilities, the net proceeds of the private placement of
approximately US$235 million of common stock, which was
completed February 25, 2007, and cash on hand.
Based on management's expectation for closing in the second
quarter, Itron expects that in 2007 the acquisition will add
approximately US$720 - US$730 million in revenue, US$0.20 -
US$0.30 in non-GAAP EPS and US$110 - US$115 million Adjusted
EBITDA. These estimates are subject to financing terms and
dependent on the closing date of the transaction and do not take
into effect any intangible amortization expenses, in-process
research and development expenses, charges related to inventory
revaluation required under purchase accounting or other
acquisition expenses.
"This acquisition brings together two very talented management
teams, including many individuals who have worked together in
previous careers with Schlumberger," said Mr. Nosbaum. "These
are both well-run companies that produce the highest quality
products in very efficient and productive factories around the
world. Bringing these companies together unites research and
development, manufacturing and business synergies that no other
provider can match.
"There can be no doubt that this acquisition represents a
historical turning point in the life of our company and a
significant commitment on the part of our investors," commented
Mr. Nosbaum. "But as I look at the strength of our businesses
and cash flow, the talent of our combined management team and
employee base, the synergies in our technology offerings, and
the expanding opportunities in the global marketplace, I have no
doubt that this is the right move - both strategically and
financially - and the right time to take Itron to an entirely
new level and drive strong future growth in our business on a
global scale."
Conditions
The acquisition is not subject to U.S. regulatory review.
However, it will be subject to review by several regulatory
bodies in countries outside the U.S., including, Ukraine,
Germany, Brazil, Spain and Portugal, which require filings
regardless of competitive product overlap.
Itron has received a senior secured underwritten agreement from
UBS to finance the transaction. Additionally, UBS acted as
exclusive financial advisor to the Company and sole placement
agent for the private placement of common stock. Gibson, Dunn &
Crutcher LLP and Perkins Coie LLP acted as legal advisors to
Itron. Mayer, Brown, Rowe & Maw LLP acted as legal advisor to
Actaris.
About Actaris
Actaris Metering Systems -- http://www.actaris.com/-- designs
and manufactures meters and associated systems for the
electricity, gas, water and heat markets, providing innovative
products and systems that integrate the latest technologies to
meet the evolving needs of public or private energy and water
suppliers, utility services and industrial companies worldwide.
Actaris is active in more than 30 countries, employs
approximately 6,000 people in 60 locations and has 29
manufacturing sites worldwide. The company has a cumulative
installed base of some 300 million electricity, gas and water
meters throughout the world.
About Itron
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.
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%.
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: S&P Places BB- Rating on Watch Neg. Over Actaris Deal
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
its 'BB-' corporate credit rating, on Itron Inc. on CreditWatch
with negative implications. The CreditWatch placement follows
the company's announcement that it has signed an agreement to
acquire Luxembourg-based Actaris Metering Systems, a European
manufacturer of electric, gas, and water meters, for more than
US$1.6 billion. Itron had total debt of approximately US$469
million as of Dec. 31, 2006.
"The CreditWatch placement reflects the increased financial risk
associated with this type of transformational acquisition," said
Standard & Poor's credit analyst James Siahaan. Although
Itron's annual revenues will more than double with the purchase,
its debt levels will increase by a more than commensurate
amount. The majority of the acquisition price is expected to
debt financed, through a new US$1.1 billion credit facility
along with more than US$325 million of cash on hand. The
company indicates that equity proceeds (via a private placement
in public equity, or PIPE transaction) of roughly US$235 million
will be used to fund a part of the transaction price as well.
Itron's business risk profile is expected to improve somewhat,
as Actaris provides the company with increased geographic and
product diversity, coming by way of a strong foothold in the
European market and the production of water and gas meters.
This should provide additional opportunity for Itron to bundle
its automated meter reading technology to a wider array of
utilities.
Standard & Poor's will resolve the CreditWatch placement
following a meeting with management to discuss the acquisition
in greater detail. The resolution of the CreditWatch will weigh
the expected improvement in Itron's business risk profile and
the company's financial policies against the additional leverage
that will result from the transaction.
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.
ITRON INC: Moody's Review Ratings and May Downgrade
---------------------------------------------------
Moody's Investors Service placed all ratings of Itron Inc under
review for possible downgrade following the company's report
that it was acquiring Actaris Metering Systems, a leading
European manufacturer of electric, gas and water meters, for
approximately $1.6 billion, including the retirement of
approximately EUR445 million of Actaris' debt.
The action is predicated on Moody's expectation that the
transaction will result in a significant increase in leverage at
closing, with approximately $1.1 billion incremental debt and
proforma debt/EBITDA on a reported basis rising to 5.75x from
4.07x at Dec. 31, 2006. Moody's notes that the acquisition will
be also funded with the net proceeds of a $235 million private
placement of equity and cash on hand, which was substantial at
Dec. 31, 2006 following the issuance of $345 million convertible
subordinated notes in August 2006.
During its review, Moody's will look into the financial
implications of the transaction, focusing on the cash flow
profile of the combined entity, the assumed amount of debt-like
obligations such as pension deficit and capitalized operating
leases, as well as the pace at which Itron is expected to de-
lever. The rating agency will also consider the potential
synergies and integration risks associated with a transaction of
this magnitude. To define the scope of the downgrade within the
B rating category, Moody's will weigh the positive factors of
the transaction, primarily broader scale and diversity, and
determine to what extent they bring more stability to cash flows
and mitigate the significant deterioration of the credit metrics
at closing. Moody's cautions that Itron has been historically
exposed to utility spending cycles and partially reliant on
large project-based orders for the marketing of its AMR
technology.
These ratings have been placed under review for possible
downgrade:
-- Ba3 Corporate Family Rating
-- Ba3 Probability of Default Rating
-- Baa3 Senior Secured Revolver due 2009
-- Ba1 Subordinated Notes due 2012
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.
KEMBLA TIMBER: Members Opt to Shut Down Business
------------------------------------------------
At a general meeting held on Feb. 19, 2007, the members of
Kembla Timber & Industrial Services Pty Ltd resolved to shut
down the company's business.
Accordingly, Albert J. Cachia was appointed as liquidator.
The company's Liquidator can be reached at:
Albert J. Cachia
c/o Bartlett & Cachia
Chartered Accountants
Level 1, 13 Victoria Street
Wollongong, New South Wales 2500
Australia
Telephone:(02) 4226 2858
About Kembla Timber
Kembla Timber & Industrial Services Pty Ltd -- also trading as
Bellambi Trade Centre -- is a distributor of durable goods. The
company is located in New South Wales, Australia.
MULTIPLEX GROUP: Joins Infinity to Develop Pegasus Town
-------------------------------------------------------
Multiplex Group will join Infinity Investment Group in the
development of Pegasus Town, Multiplex said in a media release.
In the AU$28.7 million deal, Multiplex will become a 50/50 joint
venture partner in Pegasus Town Limited, a company established
to develop and market the new North Canterbury town. Pegasus,
located just north of Christchurch, will be home to up to 5,000
residents.
Infinity Investment Group is currently involved in over
NZ$1 billion of development in the South Island, with several
new projects on the drawing board.
Infinity Investment Group Chief Executive Officer Bob Robertson
says bringing in Multiplex represents a fantastic combination of
skills and experience.
Multiplex's New Zealand managing director, Peter Wall, says
Multiplex's investment in Pegasus Town is part of the company's
increasing involvement in the development of master-planned
communities.
Multiplex's 50% investment in the joint venture with Infinity
includes Multiplex Group and a significant interest by the
Multiplex Development and Opportunity Fund.
"The expertise of our Australian master-planned community
development division, Multiplex Developments, will be a
significant part of what we can bring to the joint venture," Mr.
Wall says.
Multiplex Master Planned Community's managing director Anthony
Rowbottam will join Peter Wall and Infinity directors Bob
Robertson and John Beattie on the Board of Pegasus Town Limited.
According to Mr. Wall, Multiplex has made the investment in
Pegasus Town in recognition of the success the development has
already enjoyed.
About Multiplex
Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its
revenue from property funds management, construction, property
development, and facilities management. The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East. In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion. Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.
Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties. Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down. In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits. This started a series of profit downgrades throughout
2005.
In May 2005, Multiplex admitted that its troubled Wembley
Stadium construction project may end up with a multimillion
loss. As of February 2006, the Company is faced with liquidity
crisis after posting a massive AU$474 million loss on Wembley.
The Troubled Company Reporter - Asia Pacific reported on
Aug. 18, 2006, that Multiplex Group's financial results for the
year ended June 30, 2006, noted that the Wembley project in the
United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss. The project loss position has
remained unchanged since Dec. 31, 2005.
PRUDENTIAL-BACHE: Members' Final Meeting Slated for March 28
------------------------------------------------------------
The members of Prudential-Bache Securities (Australia) Pty Ltd
will hold a final meeting on March 28, 2007, at 9:00 a.m., to
hear the liquidator's report about the company's wind-up
proceedings and property disposal.
In a report by the TCR-AP, the company was placed under
voluntary wind-up on Dec. 22, 2006.
The company's liquidator can be reached at:
Gary F. Westbrook
c/o T. H. White & Co
1st Floor, 184 Barkly Street
St. Kilda, Victoria 3182
Australia
About Prudential-Bache
Headquartered in Victoria, Australia, Prudential-Bache
Securities (Australia) Pty Ltd is involved with security
brokers, dealers, and flotation companies.
SUNCORP-METWAY: Promina Merger Prompts Worry About Job Security
---------------------------------------------------------------
On March 6, 2007, the Troubled Company Reporter - Asia Pacific
reported that shareholders of insurer Promina Group have
approved an AU$8-billion merger with Suncorp-Metway.
According to the TCR-AP, the next step in the merger process is
for the Federal Court of Australia to hold a second hearing on
the company's scheme of arrangement, which is scheduled to take
place on March 12, 2007. If approved, the effective date of the
scheme will be on March 13, with the implementation date on
March 20.
On Jan. 30, 2007, the TCR-AP reported that Suncorp's proposal to
acquire Promina Group Limited has received regulatory clearance
after being approved under the Financial Sector (Shareholdings)
Act 1998. The company has earlier obtained the Australian
Competition and Consumer Commission's approval for the merger,
the TCR-AP noted.
Suncorp Chairman John Story said that the merger would benefit
customers, shareholders and employees of both companies.
Suncorp Chief Executive John Mulcahy expected to spend
AU$335 million on a program to take advantage of "duplication"
in the merged company that would save AU$225 million a year, the
Sydney Morning Herald relates.
However, Mr. Mulcahy would not comment on the number of jobs
that could be lost in the process, the paper says.
Representatives of both the Finance Sector Union and the Suncorp
Metway Employees Council, an in-house union financed by Suncorp,
have no idea how many jobs could be at stake in the merger, the
Sydney Herald adds.
Suncorp refused to answer questions about the effect of the
merger until it is certain the deal would go through, the paper
cites a spokesman for the FSU, as saying.
About Suncorp-Metway
Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in retail and
business banking, general insurance, life insurance,
superannuation and funds management with a focus on retail
consumers and small to medium businesses. Its brand offering
includes Suncorp and GIO, with GIO being the main insurance
brand outside of Queensland.
Standard and Poor's gave the company a 'B' insurer financial
strength rating on July 10, 2005.
SUNCORP-METWAY: Merger Cues Goldman Sachs to Lift Ratings
---------------------------------------------------------
Goldman Sachs JBWere has upgraded Suncorp Metway Ltd's short-
term rating to "outperform" and its long-term rating to "hold,"
after the proposed merger with Promina Group Ltd was approved by
Promina shareholders, the Sydney Morning Herald says, citing the
Australian Associated Press.
As reported in the Troubled Company Reporter - Asia Pacific on
March 6, 2007, Promina shareholders approved an AU$8-billion
merger with Suncorp-Metway.
However, Goldman Sachs warned that the rating upgrade could be
"very wrong" if Suncorp does not appoint all the key Promina
general insurance people to senior management positions, the
report relates.
According to the AAP, the ratings upgrade was due to the fall of
Suncorp's share price while the market had risen.
"Since the Promina deal was announced, the Suncorp share price
has fallen by 8%, compared with a 9% rise in the market," the
Sydney Herald cites a note from analysts Ryan Fisher and Ben Koo
to clients.
The analysts see potential upside to their outlook for Suncorp
-- particularly related to the likelihood of "large
diversification benefits" to its balance sheet after the merger,
the paper relates, adding that they can also see possible
downside risks like brand confusion and hiccups in the IT
integration process.
The AAP relates that Suncorp Chief Executive John Mulcahy has
ruled out speculation of Suncorp selling its banking division,
but Goldman Sachs believes a big banking deal could still be on
the cards.
"Because we remain of the view that Suncorp is not a seller of
the bank and that, if this deal goes smoothly, it will more
likely look to bolster that side of the business down the
track," AAP cites the analysts as saying.
About Suncorp-Metway
Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in retail and
business banking, general insurance, life insurance,
superannuation and funds management with a focus on retail
consumers and small to medium businesses. Its brand offering
includes Suncorp and GIO, with GIO being the main insurance
brand outside of Queensland.
Standard and Poor's gave the company a 'B' insurer financial
strength rating on July 10, 2005.
TELEPHONE CORPORATION: Placed Under Members' Voluntary Wind-Up
--------------------------------------------------------------
On Feb. 21, 2007, the members of Telephone Corporation Australia
Pty Limited met at a general meeting and agreed to wind up the
company's operations.
Accordingly, Raymond George Tolcher was appointed as liquidator.
Mr. Tolcher can be reached at:
Raymond George Tolcher
Tolcher of Lawler Partners
Chartered Accountants
763 Hunter Street
Newcastle West, New South Wales 2302
Australia
About Telephone Corporation
Located in New South Wales, Australia, Telephone Corporation
Australia Pty Ltd is a distributor of electronic parts and
equipment.
WESTPOINT GROUP: Judge Dismisses ASIC Action Against Rold Corp.
---------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 7, 2006, Rold Corp. Pty Ltd -- a company linked to
Westpoint Group's managing director, Norman Phillip Carey -- was
ordered not to remove assets worth more than AU$1 million,
pursuant to a request by the Australian Securities and
Investments Commission.
On Aug. 9, 2006, the TCR-AP reported that Judge French
temporarily froze the assets of two companies linked to
Mr. Carey, including Rold Corp.
In an update, presiding judge Justice Robert French dismissed
the action against Rold because he did not have the power to
make freezing orders under certain sections of the Federal Court
of Australia Act 1976, The Age relates, citing a report from the
Australian Associated Press.
Justice French also dismissed the application to appoint
receivers to Rold, the paper adds.
The Age recounts that the ASIC alleged that the assets held by
Rold had a history that marked it as a property of Westpoint.
According to the ASIC, on Nov. 25, a Westpoint company --
Renaissance Mezzanine -- paid Rold a AU$1 million after
Westpoint paid Renaissance the same amount the previous day.
According to the ASIC, the on-payment was recorded in
Renaissance's general accounting ledger to purportedly reduce a
debt owed by Vannin Pty Ltd, Westpoint's appointed receivers and
managers.
Justice French opined, "ASIC has not made out a case that it is
either necessary or desirable that receivers be appointed to the
property of Rold."
According to The Age, Rold Corp is the holding company of
Revetment Systems International Group, which manufacturers and
installs concrete erosion control products for embankments and
cliffs.
About Westpoint Group
Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property
development and owns or manages retail and commercial properties
with a total value of over AU$300 million. The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group. The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings. The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years. These wind-up actions are
still continuing.
In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd. The ASIC had
applied to wind up the company on grounds of insolvency. The
ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.
The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected. Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.
WODONGA PASTORAL: Members & Creditors to Meet on March 30
---------------------------------------------------------
The members and creditors of Wodonga Pastoral Holdings Pty.
Limited will meet on March 30, 2007, at 4:50 p.m., to receive
the liquidator's report regarding the company's wind-up
proceedings and property disposal.
The company's liquidators are:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road, Hawthorn East 3123
Australia
About Wodonga Pastoral
Located in Victoria, Australia, Wodonga Pastoral Holdings Pty
Ltd is engaged with general farms, primarily crop.
================================
C H I N A & H O N G K O N G
================================
CAPITAL PITH: Wind-Up Petition Hearing Slated for March 28
----------------------------------------------------------
Dah Sing Bank Limited filed a wind-up petition against
Capital Pith Limited on Jan. 12, 2007.
The petition will be heard by the High Court of Hong Kong on
March 28, 2007, at 9:30 a.m.
Dah Sing's solicitor can be reached at:
K.B. Chau & Co.
16th Floor, Wing Lung Bank Building
45 Des Voeux Road Central
Hong Kong
CHINESE BUILDING: Members' Final Meeting Set for April 18
---------------------------------------------------------
The members of Chinese Building Art and Craft Research Group
Limited will hold a final meeting on April 18, 2007, at
10:00 a.m., at Units C & D, 9/F., Neich Tower, 128 Gloucester
Road in Wanchai, Hong Kong.
During the meeting, the members will hear the liquidator's
report about the company's wind-up proceedings and property
disposal.
The company's liquidator is:
Lam Chi Wai
Units C & D
9F., Neich Tower
128 Gloucester Road
Wanchai, Hong Kong
CHUN LUNG CONSTRUCTION: Faces Wind-Up Petition by Interlite
-----------------------------------------------------------
Interlite (Asia) Limited filed a petition to wind up the
operations of Chun Lung Construction Engineering on Jan. 8,
2007.
The petition will be heard before the High Court of Hong Kong on
March 14, 2007, at 9:30 a.m.
Interlite's solicitor can be reached at:
Patrick K. H. Lam & Co
Room 1416A, 14th Floor
West Wing, New World Centre
20 Salisbury Road
Tsimshatsui, Kowloon
Hong Kong
Telephone: 2620-6128
Facsimile: 2620-6100
CITIC BANK: Banco Bilbao Gets 4.83% Stake for CNY4.9 Billion
------------------------------------------------------------
Spain's Banco Bilbao Vizcaya Argentaria SA buys a 4.83% stake in
China CITIC Bank for CNY4.885 billion, TMC Net News relates.
The two banks agreed to join forces in retail banking, risk
management and other fields, where BBVA will provide advanced
technologies and management experience to the Chinese bank, the
report says.
At the same time, CITIC International Financial Holdings
Limited, another key arm of the CITIC group, decided to sell a
15% stake to BBVA to make the foreign bank its strategic
investor.
TMC says that CITIC International has gained the go-ahead from
Chinese regulators.
* * *
CITIC Bank Co Ltd, formerly China CITIC Bank, is a wholly owned
subsidiary of the state conglomerate Citic Group. With 416
branches, CITIC Bank had total assets of CNY689.5 billion at the
end of September 2006.
On September 11, 2006, Fitch Ratings affirmed the Individual D/E
and Support 3 ratings of China CITIC Bank. The ratings outlook
is stable.
China CITIC Bank's Individual rating reflects its strengthened
financial profile, bolstered by recent capital injections from
its parent, CITIC Group, and the introduction of much-improved
risk management systems.
HAINAN AIRLINES: Plans Units Merger and Overseas Listing in 2007
----------------------------------------------------------------
Hainan Airlines is likely to merge with its three subsidiaries
-- Xinhua Airlines, Chang'an Airlines and Shanxi Airlines -- and
list overseas this year, Forbes says, citing a report from China
Daily.
According to the report, China Daily quoted Hainan Airlines
board chairman Chen Feng as saying that the possibility to go
public in 2007 is very high.
Forbes relates that Hainan Airlines' parent, Hainan Airlines
Group, has won approval from China's civil aviation regulator to
establish a new carrier by merging Hainan Airlines and its three
units.
The new carrier, which will be called Grand China Airlines, is
expected to raise CNY4 billion to CNY5 billion in its listing,
enabling it to compete better with the country's three major
carriers -- Air China, China Eastern and China Southern -- Mr.
Chen said.
In addition, China Daily added that Hainan Airlines has signed a
US$2.7-billion deal with Brazilian aircraft manufacturer Embraer
to buy 100 planes, with deliveries expected to start this year.
* * *
Hainan Airlines Company Ltd's principal activities are providing
domestic aeronautic transportation to passengers and cargoes,
domestic business chartering services, aeronautic maintenance
and services, air traveling and on-board food supply. Other
activities include manufacturing aeronautic field equipment and
components, plane and landing equipment, selling of plane
ticket, cargo & other related services, providing repair
services, development of hotels and managing properties.
On Oct. 31, 2005, Xinhua Far East China Ratings gave the company
a 'CC' issuer credit rating.
HONG KONG FROZEN MEAT: Members Final Meeting Slated for April 11
----------------------------------------------------------------
Hong Kong Frozen Meat Sea Food Wholesalers Retailers
Association Limited will hold a final meeting for its members on
April 11, 2007, at 9:30 a.m., at Flat D, G/F & M/F, Ellen
Building in 192-198 Shau Kei Wan Road, Hong Kong.
During the meeting, the members will be given a report regarding
the company's wind-up proceedings and property disposal.
As reported by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Nov. 24, 2006.
The company's liquidator is:
Cheung Chui Ping Chaplin
9/F, Times Media Centre
133 Wanchai Road, Wanchai
Hong Kong
HUA XIA: Chairman Says Deutsche Bank Won't Raise Stake
------------------------------------------------------
Hua Xia Bank Chairman Liu Haiyan dispelled reports that Deutsche
Bank AG plans to increase its stake in the bank, Market Watch
reports.
The report adds that Mr. Liu also clarified that Hua Xia has no
plans to attract more foreign investors.
Market Watch recounts that Deutsche Bank, Deutsche Bank
Luxembourg SA, and Sal Oppenheim Jr & Cie. acquired a combined
13.98% stake in Hua Xia Bank last year.
Mr. Liu confirmed, however, that Hua Xia and Deutsche will
launch a credit card in the first half of this year, joining the
rising number of co-branded credit cards issued by foreign and
local banks.
* * *
Headquartered in Beijing, Hua Xia Bank Co., Limited --
http://www.hxb.com.cn-- is a commercial bank that offers
financial services to both corporate and individual clients. At
the end of 2005, it has 27 branches and 257 offices nationwide.
On September 21, 2005, Deutsche Bank entered into a preliminary
agreement to purchase a holding of about 10 per cent in Huaxia
Bank, a medium-sized Beijing-based lender, for about US$200
million. People close to the situation said Deutsche had teamed
up with another European financial institution to buy a total of
about 15 per cent in Shanghai-listed Huaxia for more than US$300
million - a slight premium to its market value.
Fitch Ratings affirmed on September 5, 2006, Hua Xia Bank's
Individual D/E and Support 4 ratings.
Hua Xia Bank's Individual D/E rating reflects its weak capital
position, inadequate profitability, and potential asset quality
risks stemming from very rapid loan growth. Total loans
expanded 29% in 2005, the second fastest growth among local
peers.
M.S. LIMITED: Liquidator to Present Wind-Up Report on April 2
-------------------------------------------------------------
The members of M.S. Limited will hold a final general meeting on
April 2, 2007, at 5:20 a.m. to receive the liquidator's report
about the company's wind-up and property disposal.
The company's liquidator is:
Natalia K.M. Seng
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
MATTCON ENGINEERING: Court To Hear Wind-Up Petition on April 11
---------------------------------------------------------------
An application to wind up the operations of Mattcon Engineering
Company Limited was filed by Thorn Security (Hong Kong) Limited
on Feb. 2, 2007.
The petition will be heard before the High Court on April 11,
2007, at 9:30 a.m.
Thorn Security's solicitor is:
Messrs. C.C. Lee & Co.
Room 2206, 22nd Floor
Wing On House
No. 71 Des Voeux Road Central
Hong Kong
PANVA GAS: Completes Sale of 45% Stake to Towngas
-------------------------------------------------
Panva Gas completed the sale of HK$3.23 billion worth of new
shares, or a 45% stake, to Hong Kong & China Gas Co., better
known as Towngas, Dow Jones reports.
In return, Towngas also completed the sale of 10 of its Chinese
gas projects to Panva, the report relates.
Accordingly, Alfred Chan, managing director of Towngas, replaced
Ou Yaping as chairman of Panva Gas, Dow Jones says. Mr. Ou is
no longer on Panva's board.
In addition, Towngas has also appointed three other
representatives to Panva's board of directors, which now
comprises 11 people.
Meanwhile, with the change of its shareholding structure, Panva
plans to change its name, Dow Jones says, citing a person
familiar with the matter. Yet, the report relates that the
source didn't say what the new name might be, or when the change
will take place.
* * *
Panva Gas, listed on the Hong Kong Stock Exchange, is primarily
engaged in the downstream selling and distribution of LPG and
natural gas in Mainland China. Its main operations include the
sale of LPG in bulk and cylinders, the provision of piped
natural gas, the construction of gas pipelines and, to a lesser
extent, the sale of LPG household appliances.
On Dec. 5, 2006, Standard & Poor's Ratings Services had placed
its BB corporate credit rating on Panva Gas Holdings Ltd on
CreditWatch with positive implications following an announcement
that the company plans to acquire 10 piped gas projects from
Hong Kong & China Gas Co. Ltd. At the same time, the BB issue
ratings on US$50 million convertible bonds due 2008 and US$200
million senior unsecured notes due 2011 were also placed on
CreditWatch with positive implications.
Moody's Investors Service, on December 4, 2006, placed under
review for possible upgrade its Ba2 corporate family rating and
senior unsecured bond rating of Panva Gas.
The rating action follows Panva's announcement that it will
issue new shares to Hong Kong and China Gas and, in return,
acquire ten piped gas-operating projects in Eastern China.
Accordingly, the transaction will involve no cash payment.
QUADRIGA ASSET: Creditors Must Prove Debts by March 23
------------------------------------------------------
Quadriga Asset Management, which is in members' voluntary
liquidation, requires its creditors to submit their proofs of
debt by March 23, 2007.
Creditors who cannot prove their debts by the due date will be
excluded from the company's dividend distribution.
According to the Troubled Company Reporter - Asia Pacific, the
company commenced liquidation proceedings on Dec. 27, 2006.
The company's liquidator is:
Liu Kam Lung
Room 1201, 12/F., Methodist House
36 Hennessy Road, Wanchai
Hong Kong
RETA ORNAMENT: Dah Sing Bank Seeks to Liquidate Company
-------------------------------------------------------
On Jan. 12, 2007, Dah Sing Bank, Limited, filed a petition to
liquidate the business of Reta Ornament Company.
The petition will be heard before the High Court of Hong Kong on
March 28, 2007, at 9:30 a.m.
Dah Sing Bank's solicitor is:
K.B. Chau & Co.
16th Floor, Wing Lung Bank Building
45 Des Voeux Road Central
Hong Kong
STARAUTO LIMITED: Wind-Up Petition Hearing Slated for March 21
--------------------------------------------------------------
Ching Ngai Metal & Plastic Factory, on Jan. 12, 2007, filed a
petition to wind up the operations of Starauto Limited.
The petition will be heard before the High Court of Hong Kong on
March 21, 2007, at 9:30 a.m.
Starauto Limited's solicitor is:
Y. C. Lee, Pang & Kwok
2803 Wing On House
71 Des Voeux Road Central
Hong Kong
TEAMSING ELECTRONIC: Creditors' Meeting Slated for March 20
-----------------------------------------------------------
Teamsing Electronic Company, which is in creditors' voluntary
liquidation, will hold a final meeting on March 20, 2007, at
4:00 p.m., at Room 103, Duke of Windsor Social Service Building,
15 Hennessy Road in Wanchai, Hong Kong.
During the meeting, the creditors will be asked to approve the
appointment of a new member of the Committee of Inspection who
will replace Ko Chung Hung. They will also be asked to approve
the appointment of an independent certified public accountant
who will be reviewing the underlying transactions between the
company and its largest creditor.
In a report by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on June 26, 2006, due to its
inability to pay its debts.
The company's liquidator is:
Tony Yuen Wai Ken
Unit 1602-3, 16th Floor
Yue Xiu Bldg, 160-174 Lockhart Road
Wanchai, Hong Kong
=========
I N D I A
=========
BRITISH AIRWAYS: To Sustain Charge Over Airline Operations Sale
---------------------------------------------------------------
British Airways Plc will sustain a higher-than-expected charge
with respect to its regional airline operations sale. Shares
drop on fears that a possible open-skies deal between Europe and
the US will hurt business, the Wall Street Journal reports.
As previously reported, the increase will be around
GBP20 million as a result of losses incurred by BA Connect to
Feb. 28.
British Airways disclosed that it has completed the BA Connect
sale to Flybe Group and the expenses related to the pact will
grow by 20 million pounds due to additional losses incurred by
the regional airline.
WSJ notes that British Airways took a pretax 106 million pounds
writedown for BA Connect in the second quarter and reported
shares that fell 6.6% to 496.50 pence in London trading. Andrew
Fitchie, a Collin Stewart analyst, commented that the drop was
in connection with a draft deal to loosen up trans-Atlantic air
travel that could open up London Heathrow to competition.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited. BA has offices in India and Guatemala.
* * *
British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.
HMT LTD: Appoints Two New Part-Time Non-Official Directors
----------------------------------------------------------
HMT Ltd, in a filing with the Bombay Stock Exchange, discloses
that it appointed two new part-time non-official directors to
its board:
1. N. B. Ballal, for a period of three years with effect
from Feb. 1, 2007, or until further orders, whichever is
earlier; and
2. S. K. Tuteja, for a period of three years with effect from
Feb. 12, 2007, or until further order, whichever is
earlier.
The appointments were made pursuant to Presidential Orders
issued in February.
HMT Limited -- http://www.hmtindia.com/-- is a public sector
engineering conglomerate. The company retains the Tractor's
Business, which develops tractors ranging from 25 horsepower to
75 horsepower. It has an installed capacity of 18,000 tractors
for manufacturing and assembly operations. The company has
three tractor manufacturing units in India located at Pinjore in
Haryana, Mohali in Punjab, and Hyderabad in Andhra Pradesh. The
subsidiaries of the company include HMT Machine Tools Limited,
HMT Watches Limited, HMT Chinar Watches Limited, HMT
(International) Limited, HMT Bearings Limited and Praga Tools
Limited. The principal segments include Machine tools, Watches,
Tractors, Bearings and Exports. The company has a Joint Venture
with SUDMO HMT Process Engineers (India) Limited, Bangalore.
Credit Analysis and Research Limited downgraded HMT's long-term
bond issue of INR310 crore to CARE BB(SO) on Feb. 18, 2005.
At the same time, the company's medium term bond issue of
INR40.40 crore was likewise downgraded to CARE BB(SO).
Instruments rated 'Double B' are considered to be speculative,
with inadequate protection for interest and principal payments.
ICICI BANK: Board Approves Incorporation of New Subsidiary
----------------------------------------------------------
ICICI Bank Ltd's board of directors has approved, subject to
necessary approvals, the incorporation of a new wholly owned
subsidiary, ICICI Holdings, a filing with the Bombay Stock
Exchange states.
In that regard, the board also gave its approval to the bank's
transfer, to its new unit, of its investments in these
companies:
-- ICICI Prudential Life Insurance Company Ltd,
-- ICICI Lombard General Insurance Company Ltd,
-- Prudential ICICI Asset Management Company Ltd, and
-- Prudential ICICI Trust Ltd.
The bank currently holds approximately 74% of ICICI Life and
ICICI General and 51% of ICICI AMC and ICICI Trust. These
investments would be transferred to ICICI Holdings at the book
value in the books of the bank (currently about INR1,950 crore).
The board made the decision at its meeting held on March 1-3,
2007.
"ICICI Life and ICICI General are the largest life insurance and
general insurance private sector Companies in India," the bank
relates.
The bank believes that the growth momentum in the insurance
sector will continue given the growth of the Indian economy,
rising household incomes and growing penetration of insurance
products. This would lead to additional capital requirements
for the insurance businesses, the bank says. According to the
bank, ICICI AMC manages the largest mutual fund in India and is
well placed to capitalize on the growth opportunities in this
space.
ICICI Holdings may consider a public listing of its equity
shares at an appropriate time to meet a part of the further
capital requirements of ICICI Life and ICICI General. The bank
makes it clear that it intends to retain majority ownership in
ICICI Holdings.
The bank proposes to name Kalpana Morparia, its joint managing
director, to assume responsibility for ICICI Holdings as its
managing director and CEO effective from June 1, 2007.
ICICI Bank is India's second largest bank and largest private
sector bank with over 50 years presence in financial services
and with assets of over US$66.83 billion as on December 31,
2006.
It has subsidiaries in the United Kingdom, Canada and Russia,
branches in Singapore and Bahrain, and representative offices in
the United States, China, United Arab Emirates, Bangladesh and
South Africa.
* * *
On Jan. 30, 2007, Standard & Poor's Ratings Services affirmed
ICICI's Bank Fundamental Strength Rating at 'C'.
Moody's Investors Service, on July 14, 2006, assigned to ICICI a
'C-' Financial Strength Rating.
Fitch Ratings gave the bank a 'C' Individual Rating on Dec. 15,
2005.
ICICI BANK: Allots 61,670 Shares in February Under ESOS
-------------------------------------------------------
ICICI Bank Ltd has allotted a total of 61,670 equity shares,
each with face value of INR10, for the month of February:
Date of Allotment No. of Shares
----------------- -------------
Feb. 26, 2007 32,890
Feb. 05, 2007 28,780
The shares were issued pursuant to the bank's Employees Stock
Option Scheme, 2000.
ICICI Bank, is India's second largest bank and largest private
sector bank with over 50 years presence in financial services
and with assets of over US$66.83 billion as on December 31,
2006.
It has subsidiaries in the United Kingdom, Canada and Russia,
branches in Singapore and Bahrain, and representative offices in
the United States, China, United Arab Emirates, Bangladesh, and
South Africa.
* * *
On Jan. 30, 2007, Standard & Poor's Ratings Services affirmed
ICICI's Bank Fundamental Strength Rating at 'C'.
Moody's Investors Service, on July 14, 2006, assigned to ICICI a
'C-' Financial Strength Rating.
Fitch Ratings gave the bank a 'C' Individual Rating on Dec. 15,
2005.
IFCI LTD: Deutsche Securities Increases Shareholding to 5.02%
-------------------------------------------------------------
IFCI Ltd. disclosed in a filing with the Bombay Stock Exchange
that Deutsche Securities Mauritius Ltd acquired 2,222,511 shares
of the company on March 1 in the open market.
With the acquisition, Deutsche Securities' stake in the company
increased from 29,863,203 shares, or 4.68%, to 32,085,714
shares, or 5.02%.
IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector. The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services. Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs. Non-
project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project. Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.
* * *
Fitch Ratings, on June 29, 2006, affirmed IFCI Limited's support
rating at '4'. The outlook on the rating is stable.
Additionally, on February 15, 2006, Credit Analysis and Research
Limited retained a CARE D rating to the long and medium term
debt aggregating INR248 crore. Instruments carrying this rating
are judged to be of the lowest category. They are either in
default or likely to be in default soon.
IFCI LTD: Appoints Atul Kumar Rai as New Director
-------------------------------------------------
IFCI Ltd's board of directors has appointed Atul Kumar Rai as
its whole time director, a filing with the Bombay Stock Exchange
reveals.
The board made the move at its meeting held on March 7, 2007.
According to the BSE filing, Mr. Rai's appointment is effective
from the day he assumes charge.
IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector. The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services. Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs. Non-
project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project. Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.
* * *
Fitch Ratings, on June 29, 2006, affirmed IFCI Limited's support
rating at '4'. The outlook on the rating is stable.
Additionally, on February 15, 2006, Credit Analysis and Research
Limited retained a CARE D rating to the long and medium term
debt aggregating INR248 crore. Instruments carrying this rating
are judged to be of the lowest category. They are either in
default or likely to be in default soon.
INDIAN OVERSEAS: Gov't. Names C. Chandramouliswaran as Director
---------------------------------------------------------------
The Government of India has nominated Chitra Chandramouliswaran
as director of Indian Overseas Bank effective on Feb. 27.
Director Chandramouliswaran will replace C.S. Murthy who
resigned from the director post on Feb. 26.
The government made the appointment pursuant to a notice dated
Feb. 27, in exercise of the powers conferred by the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1970/1980.
Headquartered in Chennai India, Indian Overseas Bank --
http://www.iob.com/-- provides consumer and commercial banking
services. The Company provides various banking services,
including saving bank, current accounts, credit facilities and
other services. IOB also provides non-residential Indian
services, personal banking, foreign exchange reserves
collections services, agri business consultancy, credit cards
and e-banking services. It also provides automated teller
machine services. As of March 31, 2006, IOB had five full-
fledged branches overseas: two in Hong Kong, and one each in
Singapore, Seoul and Sri Lanka. The Bank also had an extension
counter in Sri Lanka and a remittance center in Singapore.
The bank carries Standard & Poor's Ratings Services' 'C' Bank
Fundamental Strength Rating.
GENERAL MOTORS: Further Delays Filing of Reports Until March 16
---------------------------------------------------------------
General Motors Corp. has pushed back the filing of its Annual
Report on Form 10-K with the U.S. Securities and Exchange
Commission until March 16 after failing to make the March 1
filing deadline.
The delay is due to the issues regarding the accounting for
deferred income tax liabilities and certain hedging activities
under the Statement of Financial Accounting Standards.
GM also intends to report restated results for the years ended
Dec. 31, 2002, to Dec. 31, 2005, and for the first three
quarters of 2006.
"As disclosed in prior [SEC] filings the current estimate of the
cumulative impact of the accounting adjustments under SFAS No.
133 to retained earnings, as of September 30, 2006, is an
increase of approximately US$200 million," the company disclosed
in its SEC filing.
"In addition, GM previously disclosed that retained earnings as
of December 31, 2001 and subsequent periods are understated by a
range of US$450 million to US$600 million due to an
overstatement of deferred tax liabilities. GM currently
estimates that the deferred income tax liability overstatement
is approximately US$1 billion. This impact is partially offset
by an estimated US$500 million adjustment to stockholders'
equity related to taxation of foreign currency translation,
arising primarily prior to 2002, and affects all periods through
the third quarter of 2006. The estimate net effect of such tax
adjustments results in an understatement of stockholders' equity
as of December 31, 2001 and subsequent periods of approximately
US$500 million," the company said.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, Mexico, and its vehicles are sold
in 200 countries.
* * *
Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, S&P said that the company's announcement that it
is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).
As reported in TCR-AP on Nov. 16, 2006, Moody's Investors
Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5
Billion secured term loan. The term loan is expected to be
secured by a first priority perfected security interest in all
of the US machinery and equipment, and special tools of GM and
Saturn Corporation.
==================
I N D O N E S I A
==================
AFC ENTERPRISES: Mr. Keymer Resigns as Chief Executive Officer
--------------------------------------------------------------
Chief Executive Officer and President Kenneth L. Keymer of AFC
Enterprises Inc. will resign effective March 30, 2007.
Mr. Keymer joined Popeyes in June 2004 as President and was
promoted to AFC's Chief Executive Officer in September 2005.
Since that time, Mr. Keymer has been instrumental in re-
energizing the Popeyes brand. Some of his many accomplishments
while with AFC and Popeyes include assembling an experienced
management team, accelerating new restaurant opening growth,
strengthening franchisee relations, improving operations
throughout the entire Popeyes system, and driving marketing
initiatives with food-focused advertising.
The AFC Board of Directors has engaged an executive search firm
to work with the company to find a new chief executive with
proven industry leadership.
The company also appointed Frederick B. Beilstein, former Chief
Financial Officer of AFC Enterprises from 2004-2005, as the
interim Chief Executive Officer effective upon Mr. Keymer's
departure. Mr. Beilstein has been a Managing Partner of
Equicorp Partners, LLC, an Atlanta-based investment and advisory
services firm since 2005. Mr. Beilstein has remained an active
consultant to AFC and the Popeyes brand since his departure.
His day-to-day responsibilities will include working with the
existing management team to oversee the execution of the
Company's operations.
AFC also disclosed the promotion of James W. Lyons, the
company's Chief Development Officer, to the newly created
position of Chief Operating Officer. Mr. Lyons joined the
Popeyes management team in July 2004 and he has played a key
role in improving the Company's development pipeline and
accelerating new restaurant openings. Mr. Lyons has more than
20 years experience in the restaurant industry. Prior to
joining Popeyes, Mr. Lyons held senior executive positions with
Burger King Corporation, Domino's Pizza, and Denny's
Corporation. Mr. Lyons holds a bachelor's of arts from the
State University of New York and a master's of business from
Adelphi University.
"Working on the Popeyes brand with our talented and dedicated
employees and franchisees has been one of the most rewarding
experiences in my life," AFC CEO Kenneth Keymer stated.
"Deciding to resign was a very difficult decision, but I am at
the point where I wanted to devote more time to personal
interests and family considerations in Colorado. Today, the
Popeyes' Brand is well positioned; an experienced management
team in place and our franchisees are excited about the prospect
for growth. I believe Popeyes has unlimited potential to
delight all of our guests, investors and franchisees."
"Ken has done an outstanding job and we thank him for his many
significant contributions to the business over the past few
years," AFC Chairman Frank Belatti stated. "We all wish him
much success in the future. Today the Popeyes brand is in an
excellent position and I am confident that the combined efforts
of Fred as our interim CEO, Jim as our new COO, and the rest of
the experienced management team, will continue to drive the
brand forward and deliver the operational performance the
company has previously projected for 2007."
About AFC Enterprises
AFC Enterprises Inc. -- http://www.afce.com/-- engages in the
development, operation, and franchising of quick-service
restaurants. Its restaurants offer food and beverage products.
As of Dec. 25, 2005, the company operated 1,828 Popeyes
restaurants in the United States, Puerto Rico, Guam, and 24
foreign countries including Korea, Indonesia, Canada, Mexico &
Honduras. AFC Enterprises was founded in 1972 and is
headquartered in Atlanta, Georgia.
The Troubled Company Reporter - Asia Pacific reported on
Nov. 1, 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 restaurant sector,
the rating agency revised its Corporate Family Rating for AFC
Enterprises Inc. from B1 to B2.
Additionally, Moody's affirmed its B1 ratings on the company's
US$190 million Guaranteed Senior Secured Term Loan B Due 5/2011
and US$60 million Guaranteed Senior Secured Revolver Due 5/2010.
Moody's assigned the debentures an LGD3 rating suggesting
lenders will experience a 31% loss in the event of default.
ALCATEL-LUCENT: Completes First EDGE Wireless Technology Trial
--------------------------------------------------------------
Alcatel-Lucent has successfully conducted the first live field
trials of EDGE technology in Bangladesh on TM International
Limited's commercial GSM 900MHz and 1800 MHz network.
Alcatel-Lucent was able to quickly and easily upgrade TMIB's
existing Alcatel-Lucent-supplied GSM infrastructure equipment
with simple software activation to support the EDGE trial, which
was conducted in the city center of Dhaka. Data speeds faster
than 230 kilobits per second were achieved without the need for
additional infrastructure equipment. EDGE wireless technology
provides up to three times the data capacity of the technology
currently deployed, enabling service providers to serve three
times as many subscribers, triple their data rate per subscriber
or add extra capacity to their voice communications.
"Alcatel-Lucent's GSM/EDGE solution provides a smooth and cost-
effective evolution to EDGE technology, which increases data
transmission rates with great spectral efficiency and
facilitates the introduction of new applications," said Kamshul
Bin Kasim, CTO, AKTEL.
"With the GSM infrastructure supplied by Alcatel-Lucent being
EDGE ready and with the excellent performance realized during
the trial, we will deploy a superior and field-ready solution
with the fastest time to market. In addition, with EDGE, the
same time slot can support more users. This reduces radio
resources required to support the same traffic, freeing up
capacity for more data or voice services," he added.
"Alcatel-Lucent's EDGE technology will uniquely position TMIB to
deliver applications and solutions that will provide an enriched
communications experience to TMIB's residential and business
customers," saidOlivier Picard, President Alcatel-Lucent Europe
and South.
Alcatel-Lucent has more than 170 GSM/EDGE customers in more than
90 countries, making it a leading player in providing mobile
communications solutions. Alcatel-Lucent is now boosting its
GSM/EDGE portfolio by introducing the field-proven ATCA-based
BSC Evolution associated with the very powerful TWIN Transceiver
module.
About EDGE technology
Further enhancements to GSM networks are provided by Enhanced
Data rates for GSM Evolution technology. EDGE provides up to
three times the data capacity of GPRS. EDGE uses the same TDMA
frame structure, logic channel and 200kHz carrier bandwidth as
today's GSM networks, which allows it to be overlaid directly
onto an existing GSM network. For many existing GSM/GPRS
networks, EDGE is a simple software-upgrade.
About TM International Bangladesh
TM International Limited, which was established in 1996, is a
joint venture company between Telekom Malaysia Berhad and A.K.
Khan & Co. Limited. Under the brand name AKTEL, the company is
one of the fastest growing mobile communication companies and
offers comprehensive GSM mobile solutions to more than 6 million
subscribers. AKTEL boasts the widest international roaming
service in the market connecting 315 operators across 170
countries.
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: Appoints New President for European Operations
--------------------------------------------------------------
Alcatel-Lucent appointed Christian Reinaudo as the President of
the company's European activities. He will also continue in
his current role as Integration Program Office leader and
Steering Council Member. His new responsibility is effective
immediately.
In line with Alcatel-Lucent's business model, regional
presidents are responsible for customer relationships, achieving
sales, managing the overall sales process as well as the
regional operations.
Before his current role as Corporate Executive Vice-President in
charge of the Integration Program Office, Christian Reinaudo led
the Alcatel Optics Group for four years and then led Alcatel's
Asia Pacific Operations for three years. Christian Reinaudo has
been a member of the Alcatel Executive Committee since 2000.
Vin Molinaro, President of Europe for Alcatel-Lucent since
December 1, 2006, has decided to leave the company for personal
reasons.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move. The company has operations in
Indonesia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
* * *
As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating. It's Short-Term Corporate Credit rating stands at B.
Moody's on the other hand put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating. Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.
Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.
ALLIANCE ONE: Closes Private Offering for US$150MM Senior Notes
---------------------------------------------------------------
Alliance One International, Inc., a leading independent leaf
tobacco merchant, has closed on the sale of US$150 million in
aggregate principal amount of unsecured 8.5% senior notes due
2012. The senior notes were sold at 99.507% of their face
amount. Alliance One will use the proceeds of the issuance to
repay outstanding borrowings under its existing senior secured
term loans.
The senior notes have not been and will not be registered under
the Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption
from the registration requirements of the Securities Act and
applicable state securities laws.
About Alliance One
Based in Morrisville, North Carolina, Alliance One
International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a
leaf tobacco merchant. The company has worldwide operations,
including those in Indonesia, Argentina, Brazil, Bulgaria,
Canada, China, France, India, Philippines, Malaysia, and
Singapore.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Sept. 29, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the US Consumer
Products, Beverage, Toy, Natural Product Processors, Packaged
Food Processors and Agricultural Cooperative sectors, the rating
agency confirmed its B2 Corporate Family Rating for Alliance One
International, Inc., and upgraded its B2 rating on the company's
US$300 million senior secured revolver to B1. In addition,
Moody's assigned an LGD3 rating to notes, suggesting note
holders will experience a 37% loss in the event of a default.
CORUS GROUP: Unit Hikes Hot Rolled Prices by 5% in EU and UK
------------------------------------------------------------
Corus Narrow Strip, a division of Corus Group plc, will increase
its Hot rolled prices in mainland EU and the U.K., by 5% across
the full product range for Q2 deliveries.
"We are seeing an improved demand from all of our main customer
sectors, and stocks are now at normal levels," Richard Bell,
Commercial Manager Narrow Strip said. "The increase reflects
strong market conditions, and is fully supported by continuing
healthy demand in both the U.K. and European markets."
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
oninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\
long-term corporate credit rating on U.K.-based steelmaker Corus
Group PLC on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.
This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.
At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications. The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.
All ratings were placed on CreditWatch on Oct. 18, 2006,
following the disclosure of an initial bid by Tata Steel.
On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's
Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating
Watch Negative following a recommended bid, valued at GBP6.2
billion, from India-based Tata Steel Limited in the wake of an
auction process conducted by the UK Takeover Panel on 30-31
January 2007. The RWN also applies to the 'B+' ratings on CS's
EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m
6.75% guaranteed bonds.
At the same time, Moody's Investors Service placed Corus Group
plc's Ba2 Corporate Family and other ratings under review.
CORUS GROUP: Increases UK Wire Rod Prices by 8% to 10%
------------------------------------------------------
Corus Group plc is increasing U.K. wire rod prices by 8 to 10
percent on deliveries from April 2.
"Wire rod demand has improved significantly and high scrap
prices and robust markets across Europe are supporting the price
increase," Gareth Beese General Manager, Sales and Marketing,
stated.
Corus remains committed to delivering high levels of service to
its customers by meeting the demands of the market.
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
oninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\
long-term corporate credit rating on U.K.-based steelmaker Corus
Group PLC on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.
This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.
At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications. The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.
All ratings were placed on CreditWatch on Oct. 18, 2006,
following the disclosure of an initial bid by Tata Steel.
On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's
Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating
Watch Negative following a recommended bid, valued at GBP6.2
billion, from India-based Tata Steel Limited in the wake of an
auction process conducted by the UK Takeover Panel on 30-31
January 2007. The RWN also applies to the 'B+' ratings on CS's
EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m
6.75% guaranteed bonds.
At the same time, Moody's Investors Service placed Corus Group
plc's Ba2 Corporate Family and other ratings under review
FREEPORT-MCMORAN: To Launch US$6 Billion Senior Notes Offering
--------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. intends to offer a total of
US$6 billion aggregate principal amount of senior notes to the
public in two tranches. The first tranche will be 8-year senior
notes and the second tranche will be 10-year senior notes.
FCX intends to use the net proceeds from the offering to fund a
portion of the Phelps Dodge Corporation acquisition
consideration and pay related fees and expenses. The closing of
this offering is conditioned on the Phelps Dodge acquisition.
As previously disclosed, each company will hold a special
meeting of stockholders on March 14, 2007, to vote on the
proposed acquisition of Phelps Dodge by FCX.
The joint book-running managers for the offering are JPMorgan
and Merrill Lynch & Co.Copies of the preliminary prospectus
supplement relating to this offering may be obtained by
contacting J.P. Morgan Securities Inc., 270 Park Avenue, 8th
Floor, New York, New York, 10017 orMerrill Lynch & Co., 4 World
Trade Center, New York, New York, 10080.
About Freeport-McMoRan
Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper
& Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries,
engages in the exploration, mining, and production of copper,
gold, and silver. The company has operations in Indonesia.
* * *
The Troubled Company Reporter - Asia Pacific reported on
March 6, 2007, that Moody's Investors Service assigned a B2,
LGD5, 88% senior unsecured rating to Freeport-McMoRan Copper &
Gold Inc.'s US$6 billion notes issue. The notes will be
unsecured and unguaranteed obligations of Freeport.
Moody's also affirmed Freeport's Ba3 corporate family rating and
its other ratings:
-- the Baa3, LGD1, 1.0% senior secured rating on Freeport's
US$500 million secured revolver;
-- the Ba2, LGD2, 29% senior secured ratings on each of
Freeport's $1 billion secured revolver, US$2.5 billion
secured Term Loan A, and US$7.5 billion secured Term Loan
B; and
-- the Ba2, LGD2, 29% rating on Freeport's existing 6.875%,
10.125% and 7.20% senior unsecured notes.
Moody's also affirmed the B1, LGD4, 63% rating on Phelps Dodge's
Cyprus Amax notes and on Phelps Dodge's other existing senior
unsecured notes.
Standard & Poor's Ratings Services raised its corporate credit
rating on New Orleans, Louisiana-based Freeport-McMoRan
Copper & Gold Inc. to 'BB' from 'BB-'.
Simultaneously, Standard & Poor's lowered its corporate credit
rating on Phelps Dodge Corp. to 'BB' from 'BBB'. In addition,
all ratings were removed from CreditWatch where they were placed
on Nov. 20, 2006, following the disclosure that Freeport had
entered into an agreement agreed to acquire Phelps in a
transaction valued at US$26 billion. The outlook is stable.
Dominion Bond Rating Service confirmed in April the rating of
Freeport-McMoRan Copper & Gold Inc. at BB (low). DBRS said the
trend is Stable.
GENERAL NUTRITION: Discloses Fourth Quarter Financial Estimates
---------------------------------------------------------------
General Nutrition Centers, Inc., an indirect wholly owned
subsidiary of GNC Parent Corporation, disclosed estimated ranges
with respect to certain of its financial results for the fourth
quarter ended December 31, 2006.
GNC disclosed the estimates in connection with its private debt
offering to be completed as part of the financing for the
previously announced agreement of GNC Parent Corporation to be
acquired by an affiliate of Ares Management LLC and the Ontario
Teachers' Pension Plan.
GNC plans to file its annual report on Form 10-K for the year
ended December 31, 2006, on or before March 31, 2007. It is in
the process of completing its audit for 2006 and, as a result,
the ranges presented below are preliminary and unaudited.
GNC expects to report these results for the fourth quarter of
2006:
* net revenues of between US$345.2 million and US$350.2
million compared to US$325.4 million for the same period
in 2005;
* net cash provided by operating activities of between
US$4.3 million and US$5.8 million compared to US$29.5
million for the same period in 2005;
* EBITDA of between US$16.6 million and US$18.5 million
compared to US$29.0 million for the same period in 2005
and;
* Adjusted EBITDA of between US$39.2 million and US$41.1
million compared to US$30.2 million for the same period in
2005.
GNC does not intend to update or otherwise revise these
estimates.
GNC also disclosed that, as of December 31, 2006, it operated
2,554 company-owned stores in the United States, 134 company-
owned stores in Canada, 1,046 domestic franchised stores, 961
international franchised stores in 48 international markets, and
1,227 store-within-a-store locations.
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.
HILTON HOTELS: S&P Lifts Rating on US$25MM Certificates to BB+
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the
US$25 million class A and B trust certificates issued by Public
STEERS Series 1998 HLT-1 Trust to 'BB+' from 'BB' and removed
them from CreditWatch, where they were placed with positive
implications Feb. 5, 2007.
The rating action reflects the March 2, 2007, raising of the
rating on the underlying securities, the US$25 million 7.95%
senior notes due April 15, 2007, issued by Hilton Hotels Corp.
(BB+/Stable/NR) and its removal from CreditWatch positive.
This issue is a swap-independent synthetic transaction that is
weak-linked to the underlying collateral, the US$25 million
7.95% senior notes issued by Hilton Hotels Corp.
About Hilton Hotels
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotel
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.
INTERNATIONAL NICKEL: Posts US$265MM Net Income in 2006 4th Qtr.
----------------------------------------------------------------
PT International Nickel Indonesia's unaudited profit in the
fourth quarter of 2006 has more than quadrupled as high nickel
prices offset lower production, Bloomberg News reports.
According to the report, the company disclosed in its Web site
that net income in the quarter ended Dec. 31, 2006, jumped to
US$265.4 million, or 27 cents a share, from a restated
US$56.7 million, or 6 cents a share, in the same period in 2005.
The company said that its sales more than doubled to
US$589.6 million, the report relates.
The high price of nickel on the London Metal Exchange offset a
6.1% decline in Inco Indonesia's nickel production to 71,700
tons in 2006 after one of the company's furnaces was destroyed
by a fire in May, the report recounts.
Bloomberg says that after the furnace resumed operations, the
company recorded a 21,237-ton production in the fourth quarter
of last year compared with 20,743 tons in the same period in
2005.
Bloomberg notes that prices in the period more than doubled to
US$24,275 a ton.
Inco's full-year net income climbed to US$513.4 million compared
with US$267.8 million in 2005, the report discloses.
The report adds that sales in 2006 rose to US$1.33 billion from
US$885 million in 2005.
About International Nickel
Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://www.pt-inco.co.id/-- is a nickel
producer with a production facility and mine are in Sorowako,
Sulawesi, where it has a contract agreement until 2025. It
produces nickel matte, an intermediate product, from lateritic
ores at its integrated mining and processing facilities near
Sorowako on the island of Sulawesi. Inco Limited of Canada
holds a 60.8% stake of the company and Sumitomo Metal Mining Co
Ltd. holds a 20.1% stake.
* * *
Standard and Poor's gave the company's long-term foreign and
local issuer credit both a BB- rating.
The company carries Fitch Ratings' BB long-term issuer default
and foreign currency long-term debt ratings.
=========
J A P A N
=========
ALL NIPPON: Buys 4 More 777-300ER Aircraft To Boost Up Fleet
------------------------------------------------------------
All Nippon Airways moved its fleet rationalization plan one
stage further as it ordered four more 777-300ER wide-body
aircraft for its intercontinental fleet and sold three 747-400s
to Oasis Growth Income and Investments Limited of Hong Kong, for
operation by Oasis Hong Kong Airlines Limited.
ANA currently operates eight 777-300ER aircraft primarily on
intercontinental routes. The recent deal has a catalogue value
of US$1 billion and brings ANA's total orders for the 777-300ER
to 17.
"Back in 2003, we unveiled our plan to rationalise our fleet
into three types of aircraft and at the same time our intention
to fly the most modern, efficient and passenger pleasing
aircraft available. This is evidenced by today's decision and
our ground breaking launch order for the 787," said Tomohiro
Hidema, Executive Vice President Purchasing, at ANA.
ANA's fleet also comprises 23 747-400s, which fly both domestic
and international routes. Together with the previously
determined sale of 6 747-400s to Avion Aircraft Trading of
Iceland in July of last year, the present sale of 3 747-400s
brings the total number sold to 9.
The three 747s are:
Reg No. Introduced Retired
JA404A 1999 2007
JA405A 2000 2007
JA403A 1999 2008
About All Nippon Airways
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded in
1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including
passenger boarding procedures and loading of hand baggage.
The airlines flies to all key Asian destinations, the United
States and Canada, France, the United Kingdom and key European
countries.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 16, 2007, Fitch Ratings advised All Nippon Airways Co.
Ltd., along with Japan Airlines Corporation, that it may need to
further increase fares and yields and adopt additional cost
reduction measures in order to improve, or at least maintain,
their current financial profiles.
The TCR-AP reported on June 13, 2006, that Fitch said the credit
quality gap between Japan's top two airlines continues to widen
with All Nippon Airways Co. Limited -- rated 'BB+'/Stable --
benefiting from market improvements, while its rival, Japan
Airlines Corporation -- rated 'BB-'/Stable -- continues to be
grounded by internal woes.
The TCR-AP also stated on May 30, 2006, that Moody's Investors
Service has upgraded to Ba1 from Ba3 the senior unsecured debt
ratings of All Nippon Airways Co., Ltd. The rating action
concludes the review initiated on March 3, 2006. The rating
outlook is stable.
On May 3, 2006, Standard & Poor's Ratings Services revised its
outlook on the BB- long-term corporate credit rating on All
Nippon Airways to positive from stable, reflecting the company's
improved earnings and expectations for stable profitability,
thanks to cost reductions efforts as well as a stronger
competitive position.
BANK OF IKEDA: Fitch Affirms C/D Individual Rating
--------------------------------------------------
Fitch Ratings has affirmed the ratings of Bank of Ikeda Ltd. as
follows:
-- Long-Term Issuer Default Rating affirmed at 'BBB-' with
Stable Outlook;
-- Short-Term Issuer Default Rating at 'F3';
-- Individual rating at 'C/D';
-- Support rating at '4'; and
-- dated subordinated debts at 'BB+'.
The capital position of this bank remained generally stable
during the current fiscal year ending March 2007. Bank of
Ikeda's credit quality of loans continued to improve while
exposures to investment risks vary, but Fitch will continue to
monitor these developments.
In Fiscal Year 2007, losses from sales of bonds pressured most
of the bank's top-line revenues as interest rates increased, but
loans/deposits interest margins continued to fall. Fees and
commissions continued to grow, resulting in further
diversification of the bank's revenue source. Along with the
improvement in the credit quality of loans over the past four to
five years, credit costs have generally subsided, although Fitch
notes that some banks recorded an increase in credit costs in
Fiscal Year 2007, leading to lower bottom-line profitability.
About The Bank of Ikeda, Ltd
Headquartered in Osaka, The Bank of Ikeda, Ltd. --
http://www.ikedabank.co.jp/-- operates in four main business
segments. The Banking segment provides banking, loan, stock
investment and currency exchange services through a network of
66 branches and five offices. The Leasing segment is engaged in
the leasing of industrial machinery, construction machinery,
computers and office equipments, among others. The Credit
Guarantee segment provides credit guarantee services for housing
loans.
The Card segment is engaged in the credit card-related business.
Other businesses include venture capital business, investment
consulting business, the development and sale of computer
software, as well as the provision of information services.
The Bank of Ikeda has 11 subsidiaries and one associated company
BECKMAN COULTER: Earns US$186.9 Million in Year Ended Dec. 31
-------------------------------------------------------------
Beckman Coulter reported net earnings of US$186.9 million for
the year ended Dec. 31, 2006, compared with net earnings of
US$150.6 million for 2005. Revenue for 2006 was
US$2.528 billion, up 3.5% compared to revenues of
US$2.443 billion in 2005.
Gross profit margin for 2006 was 47.3%, up 120 basis points over
prior year, impacted favorably by a shift in revenue mix to more
consumables sales and leverage within the service organization.
Operating income increased to US$262.9 million in 2006, from
US$205.7 million in 2005.
Non-operating expense of US$47.7 million in 2006 included costs
of about US$5 million for the early redemption of the company's
2008 notes and $2.7 million for the early redemption of
US$56 million of the company's 2026 debentures. Non-operating
expense in 2005 was US$40.1 million.
For the fourth quarter of 2006, Beckman Coulter Inc. reported
net earnings of US$62.3 million, compared to net earnings of
US$17.8 million for the same period in 2005.
Reported revenue was US$712 million, up 8.6% compared to revenue
of US$655.5 million in the fourth quarter of 2005.
Scott Garrett, president and chief executive officer, said, "The
fourth quarter of 2006 marked the return of meaningful revenue
comparability for the first time since we changed our leasing
policy, which spreads revenue recognition over the life of the
lease, typically five years. As predicted, the results
demonstrate the vitality of our business."
Gross margin expanded about 180 basis points to 46.9% of revenue
due primarily to efficiencies gained in the service
organization.
Operating expense was US$232.8 million, down US$57 million
compared to prior year quarter. This includes US$5.3 million in
incremental non-cash stock option expense and US$2.6 million in
charges to conclude the "one company" restructuring begun in the
third quarter 2005. The decrease in operating expense was due
to savings from restructuring activities and a change in the
timing of accruals for the company's non-sales incentive
compensation plans.
Operating income for the quarter was US$100.8 million including
the US$2.6 million in restructuring charges.
Non-operating expense was US$16.9 million including about
US$5 million for the early redemption of the company's 2008
notes.
At Dec. 31, 2006, the company's balance sheet showed
US$3.291 billion in total assets, US$2.137 billion in total
liabilities, and US$1.154 billion 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?1ac6
About Beckman Coulter
Headquartered in Fullerton, California, Beckman Coulter, Inc.,
is a leading provider of instrument systems and complementary
products that simplify and automate processes in biomedical
research and clinical laboratories. The company reported total
revenue of US$2.4 billion during 2005.
The company has worldwide offices in Argentina, Australia,
Bolivia, Brazil, China, France, Japan, Nigeria, Peru, Trinidad,
the United Kingdom, and Vietnam, among others.
The Troubled Company Reporter - Asia Pacific reported that
Moody's Investors Service affirmed the ratings of Beckman
Coulter. The outlook on Beckman's ratings remains stable.
These ratings were affirmed:
-- US$500 Million Universal Shelf Registration (Senior and
Subordinate); (P) Baa3/ (P) Ba1
-- US$240 Million 7.45% Senior Notes due 2008; Baa3
-- US$235 Million 6.875% Senior Notes due 2011; Baa3
-- US$100 Million 7.05% Senior Debentures due 2026; Baa3
-- US$300 Million revolving credit facility, due 2010; Baa3
FORD MOTOR: Nears Deal to Sell Aston Martin Unit in Auction
-----------------------------------------------------------
Ford Motor Co. could announce the sale of its Aston Martin
sports car unit for GBP450 million earlier, an unidentified
source tells News Limited.
Speaking at the Merrill Lynch Global Automotive Conference in
Geneva on Monday, Ford Europe head Lewis Booth said that the
sale of all or a part of the luxury sports car brand "has not
reached conclusion" but that a sale would conclude sometime this
year, The Wall Street Journal relates.
According to media reports, possible bidders include:
* Motor-racing firm Prodrive, with Egypt's Naeem investment
bank;
* UK buyout firm Doughty Hanson;
* Canadian car parts company Magna;
* Syrian-born property mogul Simon Halabi; and
* a consortium including Australian media billionaire James
Packer.
Ford has explored strategic options for Aston Martin in August
last year, with particular emphasis on a potential sale of all
or a portion of the unit.
Aston Martin, up for sale for more than GBP450 million, is part
of the company's Premier Automotive Group -- the organization
under which all of Ford's European brands are grouped. The
group also includes other brands like Volvo, Land Rover, and
Jaguar.
The sale of Aston Martin is in line with the company's cost
reduction plan, which, according to its chief executive officer
Alan R. Mulally, includes the reduction of the number of vehicle
platforms the company uses around the world and increase in the
number of shared parts.
The auction is run by UBS AG.
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.
JAPAN AIRLINES: Shares Tokyo-Jeju Island Flights with KAL
---------------------------------------------------------
Japan Airlines and Korean Air Lines agreed to expand their code
share operations to include KAL's non-stop daily flights between
Jeju Island, Korea - Tokyo (Narita), and Jeju Island - Osaka
(Kansai). The agreement will come into effect on Mar. 25, 2007,
and is subject to government approval.
Jeju Island will be the third destination in South Korea that
JAL offers its customers. Jeju Island, also known as the
"Island of the Gods," is a popular destination for Japanese
tourists due to its warm climate, stunning natural volcanic
scenery, and beautiful beaches.
At present, JAL including KAL code shares, serves South Korea on
9 routes with a total of 186 round-trip flights per week,
linking Seoul and Busan to 8 cities Japan.
With the addtion of the two new daily code share flights to
Jeju Island, JAL will start offering a total of 11 routes with a
total of 200 round-trip flights linking Japan to three cities in
South Korea.
JAL and Korean Air Lines first started code sharing in
Aug. 1, 2004, with flights between Seoul and the regional
Japanese cities of Komatsu, Niigata and Sapporo.
About Korean Air Lines
Headquartered in Seoul, Korean Air Lines Co., Ltd. --
http://www.koreanair.com/-- is a company engaged in the civil
aviation industry. The company's principal activities consist
of the provision of domestic and international airline services;
the production of aircraft, including military aircraft; the
provision of aircraft maintenance and engineering services, and
the sale of duty-free goods.
Korean Air Lines offers four classes of service: Economy Class;
Business Class, First Class and Premium Class, and provides in-
flight services, including cabin crew, in-flight entertainment,
meal and other services. It is also involved in the provision of
in-flight meals for third parties.
In addition to passenger transportation services, Korean Air
Lines is a cargo carrier that operates freighters worldwide.
During the year ended Dec. 31, 2005 its operations spanned 77
cities in 30 countries with a fleet of 116 aircraft and it
carried 21,710,000 passengers and 1,980,000 tons of freight.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-
term corporate credit rating is negative.
The TCR-AP reported on October 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer
ratings for both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd. The rating affirmation is in
response to the planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the
merger of JAL's two operating subsidiaries, JAL International
and Japan Airlines Domestic. JAL International will be the
surviving company. The rating outlook is stable.
Meanwhile, Fitch Ratings Tokyo analyst Satoru Aoyama said that
the company's debt obligations and expenses for new aircraft
have placed it in an unfavorable financial position. Fitch
assigned a BB- rating on the Company, which is three notches
lower than investment grade.
NANTO BANK: Fitch Affirms Individual Rating at 'C'
-------------------------------------------------
Fitch Ratings has affirmed the ratings of Nanto Bank Ltd. as
follows:
-- Long-Term Issuer Default Rating at 'BBB' with Stable
Outlook;
-- Short-Term IDR at 'F2';
-- Individual rating at 'C';
-- Support rating at '2';
-- dated subordinated debt at 'BBB-'.
The capital position of the bank remained generally stable
during the current fiscal year ending March 2007. Nanto Bank's
capital position is expected to have improved with an issuance
of preferred securities in February 2007, and non-performing
loans ratio and net of loan loss reserves have increased due to
changes in the evaluation methods of loans. While the credit
quality of loans continued to improve at other banks, non-
performing loans ratio, net of loan loss reserves, increased at
Nanto due to changes in the evaluation methods of loans.
In fiscal year 2007, losses from sales of bonds pressured most
of the bank's top-line revenues as interest rates increased.
While Nanto Bank's net interest income increased as a result of
improved returns on securities and increased lending volume,
loans/deposits interest margin continued to fall.
Nanto Bank's fees and commissions continued to grow, resulting
in further diversification of the bank's revenue source.
Along with the improvement in the credit quality of loans over
the past four to five years, credit costs have generally
subsided, although Fitch notes that some banks recorded an
increase in credit costs in fiscal year 2007, leading to lower
bottom-line profitability.
About Nanto Bank Ltd.
Headquartered in Nara Prefecture, The Nanto Bank, Ltd. --
http://www.nantobank.co.jp/-- is a regional bank principally
engaged in the provision of a range of banking and financial
products and services. The bank operates in six main business
segments. The Banking segment provides banking, loan, stock
investment and currency exchange services through a network of
112 branches. The Securities segment is engaged in the stock
investment business. The Credit Guarantee segment provides
credit guarantee services for various loans, including housing
loan. The Leasing segment leases a range of products including
office automation equipments, industrial machinery and
automobiles. The Software Development segment develops and
sells computer systems for office automation backup and business
streamlining. The Credit Card segment provides various credit
card services. Other businesses include building management and
real estate-related services. Nanto Bank has 10 subsidiaries.
NIKKO CORDIAL: Citigroup Offer Too Low, Biggest Shareholder Says
----------------------------------------------------------------
Harris Associates LP, Nikko Cordial's biggest shareholder at
7.5%, said that Citigroup Inc.'s US$10.8-billion takeover offer
is too low, Bloomberg News states.
In an interview with Bloomberg, Harris Associates Chief
Investment Officer of International Equities David Herro said
that Harris will not accept Citigroup's JPY1,350-per-share
offer. He said that Nikko Cordial is worth at least JPY2,000 a
share.
MarketWatch says that Citigroup's offer is also being criticized
in Japan, where Nikko Cordial is seen as worthy of a higher
valuation. Nikko Cordial shares closed up to 1.3% at
JPY1,357 on Wednesday, slightly above Citigroup's bid.
The report states that this somewhat reflected the market's
sentiment that a higher bid may be expected soon.
As reported in the Troubled Company Reporter - Asia Pacific on
Mar. 7, 2007, Citigroup aims to acquire more than 50% -- worth
up to JPY1.25 trillion -- of Nikko Cordial through a tender
offer that will be launched soon. The TCR report said that if
the purchase goes through, it will be the largest foreign
acquisition of a Japanese brokerage, making Nikko Cordial a
Citigroup subsidiary.
The TCR-AP report stated that both Nikko Cordial and Citigroup
announced the agreement after Nikko Cordial's board agreed to
Citigroup's offer to buy Nikko Cordial shares for JPY1,350
apiece, compared with Tuesday's closing price of JPY1,340.
Citigroup currently has a 4.9% stake in Nikko Cordial.
Citigroup, Bloomberg notes, said that its offer is conditional
on getting at least 50.1% of Nikko stock.
According to MarketWatch, Citigroup's offer was seen as
relatively cheap by analysts, and there would have to be a large
amount of investor opposition in order to derail Citigroup's bid
to at least acquire 50.1% of Nikko Cordial.
Bloomberg adds that Citigroup may have to raise its offer to
lure Nikko's other investors, which control about 55% of the
company. Nikko's four biggest shareholders are foreign
institutions, Bloomberg data show.
About Harris Associates LP
Headquartered in Chicago, Harris Associates L.P. --
http://www.harrisassoc.com/-- was founded in 1976 by dedicated
investment professionals who believed that delivering successful
investment results for clients requires a consistent investment
philosophy, a commitment to superior investment research, and a
high level of customer service. As our roster of clients has
grown over the years, these basic beliefs remain unchanged.
Harris Associates L.P. had US$68.5 billion in total assets under
management as of Dec. 31, 2006.
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.
NORTHWEST AIRLINES: Wants Exclusive Periods Extended to June 29
---------------------------------------------------------------
Northwest Airlines Corp. and its debtor-affiliates ask the
United States Bankruptcy Court for the Southern District of New
York to further extend their exclusive periods during which no
other party may file a plan, and for the Debtors to solicit
acceptances of their Plan, until June 29, 2007.
The Debtors' Plan and Disclosure Statement are filed with the
Court, and a hearing to approve their Disclosure Statement is
scheduled for March 26, 2007.
However, the Exclusive Period to solicit votes expires on
March 16, 2007, and accordingly, under the current schedule, the
Debtors do not have sufficient time to obtain approval of their
Disclosure Statement or even to commence the solicitation
process.
Bruce R. Zirinsky, Esq., at Cadwalader, Wickersham & Taft LLP,
in New York, states that the Debtors are on a clear path to
confirmation. He adds that the requested extension of the
Debtors' Exclusive Period will provide sufficient time for the
Debtors to:
(a) obtain approval of the Disclosure Statement; and
(b) mail out the solicitation packages and ballots to all
parties entitled to vote on the Plan, and give them time
to consider the materials provided in the solicitation
packages and return their ballots by the voting
deadline.
Moreover, in connection with the proposed Plan, and concurrently
with the solicitation of votes, creditors will also have the
opportunity to exercise subscription rights as described in the
Plan, says Mr. Zirinsky.
These are all necessary steps for the Debtors to continue on the
path to Plan confirmation and emerge within the timeframe
approved by the Court in a scheduling order, Mr. Zirinsky
explains.
About Northwest Airlines
Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks. Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents. The Company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts. The Official Committee of
Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld
LLP as its bankruptcy counsel in the Debtors' chapter 11 cases.
When the Debtors filed for protection from their creditors, they
listed US$14.4 billion in total assets and US$17.9 billion in
total debts. On Feb. 15, 2007, the Debtors filed an Amended
Plan & Disclosure Statement. The hearing to consider the
adequacy of the Disclosure Statement has been scheduled for
March 26, 2007. (Northwest Airlines Bankruptcy News, Issue No.
59; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
OITA BANK: Fitch Affirms 'C' Individual Rating
----------------------------------------------
Fitch Ratings has affirmed the ratings Oita Bank Ltd. as
follows:
-- Long-term Issuer Default Rating at 'BBB+' with Stable
Outlook;
-- Short-term IDR at 'F2';
-- Individual rating at 'C'; and
-- Support rating at '2'.
The capital position of the bank remained generally stable
during the current fiscal year ending March 2007. At Oita Bank,
the increase in Tier 1 capital has fully offset the increase in
risk assets, resulting in slightly higher Tier 1 ratios,
compared with end-March 2006. The bank's credit quality of
loans continued to improve. The exposure to investment risks
vary, but Fitch will continue to monitor these developments.
In fiscal year 2007, losses from sales of bonds pressured most
of the bank's top-line revenues as interest rates increased.
While Oita Bank's net interest income increased as a result of
improved returns on securities and increased lending volume,
loans/deposits interest margin continued to fall.
Fees and commissions continued to grow, resulting in further
diversification of the bank's revenue source. Along with the
improvement in the credit quality of loans over the past four to
five years, credit costs have generally subsided, although Fitch
notes that some banks recorded an increase in credit costs in
fiscal year 2007, leading to lower bottom-line profitability.
About Oita Bank, Ltd.
Headquartered in Oita Prefecture, The Oita Bank, Ltd. --
http://www.oitabank.co.jp/-- is a regional bank that operates
in three main business segments: banking services, leasing
services and others. The Banking Services segment offers
services such as deposits, loans, securities trading, securities
investment, foreign exchange transactions, futures transactions
and bond fiduciaries and registrations. The Bank has 93 branch
offices, 13 sub-branch offices and four representative offices.
The Leasing segment offers leasing services through its
subsidiary, which is also based in Oita Prefecture. The Others
segment is involved in the credit card, computer, credit
guarantee and financial businesses. This segment provides
financial services for both individual and corporate customers.
Oita Bank has nine consolidated subsidiaries.
SOFTBANK CORP: To Seek Damages Over Financial Times Report
----------------------------------------------------------
Softbank Corp. will take legal action, including damages claims
and an analysis correction, over a Financial Times report on
March 1, 2007, quoting analyst Kieran Calder questioning the
accuracy of Softbank's accounting practices, The Japan Times
reports.
Mr. Calder is a telecom analyst at CLSA Asia-Pacific Markets,
the report relates.
Reuters states that Softbank shares lost US$2 billion in market
value after the Financial Times said that the company was
"facing increased regulatory scrutiny," citing points raised in
the Feb. 27 CLSA report.
Softbank, however, asserted that it was not under any
investigation by Japan's Securities and Exchange Surveillance
Commission.
The Times recounts that the CLSA report asked questions
regarding Softbank's accounting practices, specifically of the
likelihood that the company may have revised its financial
statements after adopting Deloitte Touche Tohmatsu Japan as its
new company auditor in place of ChuoAoyama
PricewaterhouseCoopers.
Reuters adds that the CLSA report expressed concern over
Softbank's exclusion of debt as a criteria for selecting its
subsidiaries because off-balance sheet loans at its non-
consolidated units could become significant if interest rates
continued to rise.
According to Reuters, Softbank defended that loans from outside
lenders that were included as debt at its non-consolidated units
at the end of its fiscal first quarter were below JPY400 million
and only 0.02% of the company's total debt.
Reuters notes that Softbank said its auditor signed off on its
selection of non-consolidated units at the time of first-half
earnings.
Softbank claimed that the newspaper's article "gives a
misconception that our company is conducting inappropriate
accounting policies" and "damages our credibility in the
market," and therefore seeks damages and retraction from both
CLSA and the Financial Times.
About Softbank Corporation
Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese
telecommunications and media corporation, with operations in
broadband, fixed-line telecommunications, e-Commerce, Internet,
broadmedia, technology services, finance, media and marketing,
and other businesses. SoftBank was established on September 3,
1981, and had a market capitalization of approximately
US$32.8 billion at February 28, 2006.
SoftBank's corporate profile includes various other companies
such as Japanese broadband company Cable & Wireless IDC, cable
company BB-Serve, and gaming company GungHo Online
Entertainment. On March 17, 2006, SoftBank announced its
agreement to buy Vodafone Japan, giving it a stake in Japan's
US$78 billion mobile market.
* * *
According to the Troubled Company Reporter - Asia Pacific on
April 18, 2006, Standard & Poor's Rating Services agency
affirmed its 'BB-' long-term corporate credit rating on the
company, with negative implications.
Moody's Investors Service had, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2 from Ba3, concluding a review initiated on March 17,
2006, when the company announced that it would acquire a 97.7%
stake in mobile phone giant Vodafone Group's Japanese unit,
Vodafone K. K.
TIMKEN COMPANY: Earns US$222.53 Million in Year Ended 2006
----------------------------------------------------------
The Timken Company reported net sales for the year ended
Dec. 31, 2006, of approximately US$4.97 billion, as compared
with US$4.82 billion in 2005, in its annual financial statements
filed with the United States Securities and Exchange Commission.
Net income earned for the year ended Dec. 31, 2006, was
US$222.53 million, down from US$260.28 million for the year
ended Dec. 31, 2005.
At Dec. 31, 2006, total assets increased by US$37.8 million, to
US$4.03 billion, from US$3.99 billion at Dec. 31, 2005.
This increase was primarily due to increased property, plant and
equipment - net, and working capital from continuing operations
required to support higher sales, partially offset by the
decrease in assets of discontinued operations that were part of
the sale of Latrobe Steel.
Total current assets at Dec. 31, 2006, were US$1.9 million as
compared with US$1.98 million in 2005. The decrease in total
current assets reflected decreases of US$12.1 million in
deferred income tax, US$6.8 million in deferred charges and
prepaid expenses, US$162.2 million in current assets of
discontinued operations, and US$5.7 in other current assets,
partially offset by increases of US$35.7 million in cash and
cash equivalents, US$16.1 million in net accounts receivable,
and US$52 million of net inventories.
The company lowered its total current debt to US$835.56 million
at Dec. 31, 2006, from US$1.07 billion in 2005, primarily
through lower salaries, wages, and benefits of US$225.40 million
in 2006, from US$364.02 million in 2005.
Total debt was US$597.8 million at December 31, 2006 compared to
US$720.9 million at Dec. 31, 2005. Net debt was
US$496.7 million at December 31, 2006 compared to
US$655.5 million at Dec. 31, 2005.
Credit Facilities
At Dec. 31, 2006, the company had no outstanding borrowings
under its US$500 million Amended and Restated Credit Agreement
Senior Credit Facility that matures on June 30, 2010. It also
had no outstanding borrowings under its letters of credit
outstanding totaling US$33.8 million, which reduced the
availability under the Senior Credit Facility to
US$466.2 million. At Dec. 31, 2006, the company was in full
compliance with the covenants under the Senior Credit Facility
and its other debt agreements.
At Dec. 31, 2006, the company had no outstanding borrowings
under the company's Asset Securitization, which provides for
borrowings up to US$200 million, limited to certain borrowing
base calculations, and is secured by certain domestic trade
receivables of the company. At Dec. 31, 2006, there were
letters of credit outstanding totaling US$16.7 million, which
reduced the availability under the Asset Securitization to
US$183.3 million.
The company expects that any cash requirements in excess of cash
generated from operating activities will be met by the
availability under its Asset Securitization and Senior Credit
Facility. It believes it has sufficient liquidity to meet its
obligations through 2010.
Sales by Segment
For the year 2006, the company's Industrial, Automotive, and
Steel Group had sales of $2.07 billion, US$1.57 billion, and
US$1.33 billion, respectively. Total sales from each of the
segments were US$4.97 billion for the year ended Dec. 31, 2006.
Restructuring
In September 2006, the company announced further planned
reductions in its Automotive Group workforce of approximately
700 associates. These plans are targeted to deliver annual
pretax savings of approximately US$35 million by 2008, with
pretax costs of approximately US$25 million.
In December 2006, the company completed the divestiture of its
Steering business located in Watertown, Connecticut and Nova
Friburgo, Brazil, resulting in a loss on divestiture of
US$54.3 million. The Steering business employed approximately
900 associates.
In December 2006, the company completed the divestiture of its
Latrobe Steel subsidiary.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1aac
About Timken Co.
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries. The company has
operations in Japan, Argentina, Australia, Belgium, Brazil,
Canada, China, Czech Republic, England, France, Germany,
Hungary, India, Italy, Japan, Korea, Mexico, Netherlands,
Poland, Romania, Russia, Singapore, South America, Spain,
Taiwan, Turkey, United States, and Venezuela, and employs
27,000.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Nov. 2, 2006, that Moody's Investors Service confirmed The
Timken Company's Ba1 Corporate Family Rating and the Ba1 rating
on the company's US$300 Million Unsecured Medium Term Notes
Series A due 2028 in connection with the rating agency's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology.
=========
K O R E A
=========
KOOKMIN BANK: To Cut Service Fees to Attract More Customers
-----------------------------------------------------------
Kookmin Bank said that it will exempt or cut online and offline
fees charged to its 25 million customers starting next week, The
Korea Times reports.
According to The Times, beginning March 12, Kookmin will:
(a) remove charges for the issuance of personal checks;
(b) cut money transfer fees by 25%;
(c) drop cash machine charges by up to 50%; and
(d) cut charges for money transfers through the Internet and
cell phones, before fully exempting them from December.
"In the short term, our commission income may decrease.
However, we will be able to attract more customers in the long
term, and that will be helpful for our income growth," the paper
relates, quoting Kookmin President Kang Chung-won.
Mr. Kang noted that he has not calculated the cost of the cuts,
but said that the bank has posted sharp earnings growth for the
past few years, so it wants to share these achievements with its
customers.
It is estimated that the bank generates 17% of its income
through service fees, The Korea Times says, noting that Kookmin
posted a record profit of KRW2.47 trillion (US$2.64 billion)
last year, up 9.76% from KRW2.25 trillion a year earlier.
Seoul-based Kookmin Bank -- http://inf.kbstar.com/-- provides
various commercial banking services, such as deposits, credit
cards, trust funds, foreign exchange transactions, and corporate
finance. The bank also offers Internet banking services.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 24, 2007, that the bank carries Moody's bank financial
strength rating of D+.
LG.PHILIPS: To Sell Czech Display Plant to CTP Invest for EUR40M
----------------------------------------------------------------
LG.Philips Displays is selling its cathode-ray tube factory in
the Czech Republic for EUR40 million to business parks developer
CTP Invest, Bill Rochelle, the bankruptcy columnist for
Bloomberg News, reports.
LG.Philips Displays Holding B.V. is the European holding company
for Hong Kong-based LG.Philips Displays. On Jan. 27, 2006,
LG.Philips Displays Holding B.V. filed for insolvency protection
along with its Dutch subsidiary, LG.Philips Displays Netherlands
B.V., and its German subsidiary in Aachen due to worsening
conditions in the CRT marketplace and unsustainable debt.
Less than two months after the insolvency filings in Europe, the
company's U.S. unit, LG.Philips Displays USA Inc., filed a
chapter 11 petition in the U.S. Bankruptcy Court for the
District of Delaware on March 15.
As reported in the Troubled Company Reporter-Europe, the
LG.Philips Displays group had scaled down its cathode ray tube
production after the market saw an increase in demand for new
flat panel televisions, including liquid crystal display and
plasma televisions.
About LG.Philips Displays
Headquartered in Hong Kong, LG.Philips Displays --
http://www.lgphilips-displays.com/-- manufactures cathode ray
tubes for use in televisions and computer monitors. The company
produces one in every four television and computer monitor tubes
sold. Making use of its global manufacturing infrastructure, it
provides regional supplies to top TV and monitor brands
worldwide. LG.Philips Displays continues to be committed to the
CRT industry and will maintain a strong profile based on its
competitive operations and innovative, high-quality products.
The company's production facilities are in: China, Korea,
Indonesia, Brazil, The Netherlands and United Kingdom.
MILACRON INC: Posts US$8.6MM Net Loss for 2006 Fourth Quarter
-------------------------------------------------------------
Milacron Inc. reported a net loss in the fourth quarter of 2006
of US$8.6 million including US$5.1 million in restructuring
costs and US$1.8 million in refinancing charges. This compared
to net earnings in the fourth quarter of 2005 of US$5.8 million,
which included a US$5.5 million tax benefit. Fourth quarter
2006 operating results were at the mid-point of the range of
guidance issued in November.
Fourth quarter sales were US$198 million, down from
US$217 million in the year-ago quarter. New orders were
US$203 million, compared to US$212 million in 2005. The bulk of
new orders came late in the quarter, which negatively impacted
fourth quarter shipments.
Manufacturing margins in the quarter were 19.4%, comparable to
the year-ago quarter, despite a US$2 million write down of
inventory, which reduced the margin by a full percentage point.
Net cash used by operations during the quarter was
US$0.8 million compared to US$3.3 million of cash provided by
operations in the fourth quarter of 2005. At the end of the
quarter, Milacron had US$39 million in cash, up US$3 million
from the beginning of the quarter. The company had
US$41 million in borrowing availability under its new revolving
credit agreement, signed in December, up from US$36 million
under the previous facility at the beginning of the quarter.
Total liquidity, therefore, rose US$8 million to US$80 million
at quarter-end.
Full Year 2006
Milacron's net loss for the year was US$39.7 million, or
US$1.02 per share, and included US$17.4 million in restructuring
costs and US$1.8 million in refinancing charges. This compared
to a net loss of US$14.0 million, or US$0.42 per share, in 2005,
which included a US$5.5 million one-time tax benefit as well as
US$1.5 million in after-tax restructuring costs.
Sales in 2006 reached US$820 million, up from US$809 million in
2005. New orders were US$828 million compared to US$819 million
in the prior year.
Manufacturing margins for 2006 were 18.5%, up from 18.0% in
2005, as improved pricing and cost reductions more than offset
the effect of the US$2 million inventory write down.
Net cash used by operations for the year was US$19.2 million
compared to a net provision of cash of US$9.2 million in 2005.
The single largest factor in cash flow for the year was a
US$30 million advance contribution made to Milacron's pension
fund in September, 2006.
Annual Meeting Date Set; Reverse Stock Split Proposed
Milacron's board of directors set May 2, 2007, as the date of
the annual meeting of shareholders to be held at 9:00 a.m. EDT
in the Cincinnati Museum Center at Union Terminal, 1301 Western
Avenue, Cincinnati, Ohio. March 9, 2007, was established as the
record date for determination of shareholders entitled to notice
of and to vote at the meeting. The board also approved a
proposal for a one-for-ten reverse split of common stock with
the objective of complying with minimum share price standards
for listing on the New York Stock Exchange. The proposal will
be detailed in the company's proxy statement for approval by
shareholders at the annual meeting.
Segment Results
Machinery Technologies-North America [machinery and related
parts and services for injection molding, blow molding and
extrusion supplied from North America, India and China]: New
orders of US$99 million were comparable to orders of
US$98 million in the fourth quarter of 2005. Sales, however,
fell to US$96 million from US$107 million reflecting soft demand
for injection molding equipment particularly from the automotive
sector. Segment earnings (earnings before interest, taxes and
restructuring charges) were US$5.2 million, off from
US$6.2 million in the year-ago quarter, as the effects of lower
shipping volumes were largely offset by improved pricing and
operating efficiencies.
For the year 2006, new orders in this segment were
US$411 million, up 7% from US$383 million in 2005. Sales also
rose 7% to US$402 million. Segment earnings were
US$17.1 million compared to US$17.3 million in 2005, as benefits
from higher volumes were offset by higher marketing costs,
including the NPE-2006 triennial plastics exposition held in
June and expanded international distribution for the extrusion
systems business.
Machinery Technologies-Europe [machinery and related parts and
services for injection molding and blow molding supplied from
Europe]: Fourth quarter new orders of US$40 million and sales of
US$37 million were flat with those of the year-ago quarter
despite favorable currency translation effects. This segment
lost US$0.6 million in the quarter compared to a loss of
US$0.8 million in the fourth quarter of 2005.
For the year, this segment's new orders were US$154 million, up
US$1 million from 2005, while sales were US$153 million, up from
US$150 million. For 2006, the segment posted an operating loss
of US$4.9 million compared to a loss of US$5.0 million a year
ago.
Mold Technologies [mold bases and related parts and services, as
well as maintenance, repair and operating (MRO) supplies for
injection molding worldwide]: Sales in the fourth quarter of
2006 were US$38 million compared to US$44 million in the fourth
quarter of 2005, reflecting declines primarily in North American
markets. Cost cutting measures mitigated the decline in segment
earnings, which fell to US$0.8 million from US$1.6 million in
the year-ago quarter.
Sales in 2006 were US$159 million, down from US$173 million in
the prior year. Segment earnings declined to US$3.0 million
from US$3.9 million, as benefits of restructuring and other cost
reductions offset most of the effects of lower volume.
Industrial Fluids [water-based and oil-based coolants,
lubricants and cleaners for metal-cutting and metal-forming
operations worldwide]: Fourth quarter sales were US$29 million
compared to US$30 million a year ago, as price increases and
favorable currency translation effects were offset by lower
shipping volumes. Segment earnings improved to US$4.1 million
from US$3.6 million, thanks primarily to improved pricing.
Industrial fluid sales in 2006 were US$117 million, up from
US$112 million in 2005, as price increases compensated for
volume declines. Segment earnings improved to US$10.8 million
versus US$8.7 million in 2005, reflecting improved pricing and
operating efficiency.
Outlook
"Energy and resin prices have declined from historic highs and
appear to be stabilizing," said Ronald D. Brown, chairman,
president and chief executive officer. "These trends should
benefit plastics processors and, as their profitability
improves, enable them to invest in new machinery to replace
their aging equipment and increase productivity. At the same
time, however, the health of processors supplying U.S.
automakers and pressures from consolidation in that industry
have dampened demand in a large segment of the market. Overall,
we are cautiously optimistic with respect to 2007, as we believe
economic fundamentals will continue to favor recovery in
plastics processing industries worldwide.
"As for Milacron, we expect our first quarter 2007 results to be
comparable to those of the first quarter a year ago, as benefits
from our 2006 restructuring measures offset the effects of lower
sales volumes in North America. We have implemented temporary
cost reductions, primarily furloughs, to adapt to lower shipping
volumes in the first half of the year in North America. For
2007 as a whole, we expect 4% to 5% top-line growth, much of it
coming from emerging markets. This increase in overall volume,
along with incremental restructuring benefits and other cost
reductions, should lead to better operating results," Mr. Brown
said.
Headquartered in Cincinnati, Ohio, Milacron Inc. (NYSE: MZ) --
http://www.milacron.com/-- is a leading global manufacturer and
supplier of plastics-processing equipment and related supplies.
Milacron is also one of the largest global manufacturers of
synthetic water-based industrial fluids used in metalworking
applications. The company has major manufacturing facilities
in: North America, Europe, and Asia. Milacron's annual revenues
approximated US$805 million over the last twelve months.
The company has an office in South Korea, and joint ventures in
China and India.
* * *
As reported in the Troubled Company Reporter on Jan. 2, 2007,
Standard & Poor's Ratings Services revised its outlook on
Cincinnati, Ohio-based Milacron Inc., to developing from
negative. At the same time, Standard & Poor's affirmed its
ratings on the company, including its 'CCC+' corporate credit
rating.
Moody's Investors Service affirmed the Caa1 corporate family
ratings of Milacron Inc. and the Caa1 rating of the company's
US$225 million of 11.5% guaranteed senior secured notes due
2011.
NOVELIS INC: Incurs US$275 Billion Net Loss in 2006 Fiscal Year
---------------------------------------------------------------
Novelis Inc. reported its financial results for the full year
ended Dec. 31, 2006. The company incurred a net loss of
US$275 million, or US$(3.71) per share, on net sales of
US$9.8 billion, compared with net income of US$90 million, or
US$1.21 per share, on net sales of US$8.4 billion for 2005.
In 2006, the company reduced its total debt by US$195 million.
Despite a challenging metal price environment, Novelis has
reduced its debt by US$516 million since the company's inception
in January 2005. Cash and cash equivalents as of Dec. 31, 2006,
were US$73 million.
Total rolled products shipments increased to 2,960 kilotons in
2006 from 2,873 kilotons in 2005. This increase was primarily
due to increased shipments to the can market in North and South
America and Europe, as well as increased shipments of hot- and
cold-rolled intermediate products in Europe.
The 2006 net loss includes almost no tax benefit largely because
the Company recorded US$71 million of additional valuation
allowances related primarily to tax losses in certain
jurisdictions where it does not expect to be able to utilize
those losses. Additionally, the company incurred added tax
expense associated with certain exchange items for which there
was no pre-tax benefit. Cash taxes paid in 2006 were
US$68 million.
As reported, Novelis' earnings in 2006 were adversely affected
by higher metal prices, which the company was unable to
completely pass through to certain customers as a result of
metal price ceilings on a portion of its can sheet sales in
North America. In 2006, Novelis was unable to pass through
approximately US$475 million of metal price increases associated
with sales under these contracts. This impact was partially
offset by internal and external hedges, including US$63 million
of gains from the change in fair value of derivative
instruments. Additional items adversely affecting earnings
include higher energy and transportation costs; the adverse
effects of currency exchange rates; and expenses related to the
company's restatement and review process, delayed financial
reporting and continued reliance on third- party consultants to
support its financial reporting requirements.
Ed Blechschmidt, Acting Chief Executive Officer of Novelis,
said, "In the past year we made significant progress in
strengthening the company for the future. We have taken steps
to streamline the manufacturing operations and to introduce
supply chain improvements. We have also improved our financial
controls and procedures and our risk management capabilities.
At the same time, we have strengthened our focus on customer
satisfaction, supported by innovations such as the Novelis
Fusion(TM) technology for multi-alloy sheet products. We
believe that the fundamentals of the business, our operations
and our market position are strong, and that we are well
positioned to build on our accomplishments as we look forward to
our acquisition by Hindalco."
On Feb. 11, 2007, Hindalco Industries Limited and Novelis
announced that they have entered into a definitive agreement for
Hindalco to acquire the outstanding shares of Novelis. Under
the terms of the agreement, Novelis shareholders will receive
US$44.93 in cash for each outstanding common share upon the
closing of the sale transaction.
Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America. The
company operates in 11 countries and has approximately 13,000
employees. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets. In Asia, the company has
operations in Malaysia and Korea.
* * *
As reported in the Troubled Company Reporter on Feb. 16, 2007,
Fitch Ratings placed the Issuer Default Ratings or IDR of 'B'
for Novelis Inc. and its subsidiary Novelis Corp. on Rating
Watch Negative.
The company's senior secured bank debt ratings and senior
unsecured debt ratings that were affirmed are:
Novelis Inc.
-- Senior secured revolver and term loan at 'BB/
Recovery Rating (RR) 1'; and
-- Senior unsecured notes at 'B/RR4'.
Novelis, Corp.
-- Senior secured revolver and term loan B at 'BB/RR1'.
QUANTUM CORP: Incurs US$9.5MM Net Loss for Quarter Ended Dec. 31
----------------------------------------------------------------
Quantum Corp. reported a net loss of US$9.5 million on
US$301 million of revenues for its fiscal third quarter ended
Dec. 31, 2006, compared with a net income of US$819,000 on
US$218 million of revenues for the same period in 2005.
Revenue from devices (tape drives and removable hard drives) and
non-royalty media sales totaled US$81 million in the third
quarter of 2007, down US$33 million from the same period of
2006. Nearly this entire decline was due to the continuing
retirement of older tape drives, with approximately two-thirds
of the revenue reduction in older, entry-level drives sold by
OEMs.
Since Quantum's acquisition of Advanced Digital Information
Corp. in late August, this was the first full quarter in which
the two companies operated as one. As a result, Quantum
increased revenue 38% over the same quarter last year.
"As we've integrated ADIC over the last five months, the
strength and promise of the new Quantum has become even clearer,
and this is reflected in our December quarter results," said
Rick Belluzzo, chairman and CEO of Quantum.
"We delivered on our revenue goal, greatly improved our
operating results and demonstrated significant progress in
driving toward our target business model. We also announced our
new DXi-Series disk-based appliances with de-duplication and
replication technologies and had a strong quarter of software
sales, both of which speak to the broader opportunities we now
have in growing markets."
About Quantum Corp.
Based in San Jose, California, Quantum Corp., (NYSE: DSS) --
http://www.quantum.com-- formerly a maker of hard disk drive
for desktop computers, now produces digital linear tape
technology, such as DLT devices, automated tape library systems,
and the tape cartridges used in these systems. The company has
offices in these Asia-Pacific countries: Australia, China, Hong
Kong, India, Japan, Korea, Malaysia, Singapore.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Aug. 30, 2006 that Standard & Poor's Ratings Services revised
its rating and recovery rating on Quantum Corp.'s proposed
first-lien bank facility to 'B+' and '1' from 'B' and '3',
respectively, following a recent amendment to the terms of the
proposed financing of Quantum's acquisition of Advanced Digital
Information Corporation.
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 Hardware sector this week,
the rating agency confirmed its B3 Corporate Family Rating for
Quantum Corp.
Moody's also revised and held its probability-of-default ratings
and assigned loss-given-default ratings on these two loans and a
bond issue:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$150 million
Sr. Sec. Revolver
due 2009 B2 Ba3 LGD2 24%
US$225 million
Sr. Sec.
First Lien Facility
due 2012 B2 Ba3 LGD2 24%
US$160 million
Subordinated
convertible notes
due 2010 Caa2 Caa2 LGD6 91%
===============
M A L A Y S I A
===============
COMSA FARMS: Bursa Defers Securities Delisting
----------------------------------------------
The Bursa Malaysia Securities Bhd deferred the delisting of
Comsa Farms Bhd's securities pending the bourse's decision on
the appeal submitted by the company.
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 28, 2007, Bursa said that the securities of Comsa Farms
will be delisted from its official list on March 8. The
decision, according to the bourse, came after the company failed
to make a requisite announcement of its regularization plan on
Feb. 16, as required by the extended plan submission deadline.
Comsa Farms appealed the bourse's decision to delist its shares
and contended that it has been in continuous negotiations with
relevant parties with regards to its regularization plan to
comprehensively address its current financial position.
However, the company said that it has been unable to announce
and submit a regularization plan to the Securities Commission on
time due to, among others:
(a) the on-going protracted negotiations with its financial
institution creditors for the settlement of debts; and
(b) the appointment of the Merchant Bank Adviser for the PRS.
Comsa Farms said that it is earnestly working towards
formulating a regularization plan and an appropriate
announcement will be made to Bursa Securities upon finalization.
* * *
Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in
the wholesale and retail of fresh and frozen chicken products,
meat and foodstuff. Its other activities include livestock,
aqua feed milling, poultry feeding, hatchery operations, and
layer farming.
On April 10, 2006, the company was declared a Practice Note 17
company by Bursa Malaysia due to a stockholders' equity deficit.
As an affected listed issuer, Comsa Farms is required to submit
a plan to regularize its financial condition.
As of Dec. 31, 2006, Comsa's balance sheet reflected MYR182.16
million of total assets and MYR291.32 million of total
liabilities, resulting to a shareholders' deficit of MYR109.15
million.
FOREMOST HOLDINGS: Posts MYR23.34-Mil. Net Loss in 4th Qtr 2006
---------------------------------------------------------------
Foremost Holdings Bhd incurred a net loss of MYR23.34 million on
MYR11.23 million of revenues in the fourth quarter ended
Dec. 31, 2006, as compared with a net loss of MYR5.27 million on
MYR22.61 million of revenues in the same period in 2005.
As of Dec. 31, 2006, the company's balance sheet showed strained
liquidity with current assets of MYR24.75 million available to
pay current liabilities of MYR35 million.
Foremost's total assets as of Dec. 31, 2006, amounted to
MYR33.72 million and total liabilities aggregated to
MYR35 million. Shareholders' equity deficit reached
MYR1.54 million.
* * *
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.
HARVEST COURT: Balance Sheet Upside Down By MYR13.6MM in Dec. 31
----------------------------------------------------------------
Harvest Court Industries Bhd's unaudited balance sheet went
upside down with a shareholders' equity deficit of
MYR13.58 million as at Dec. 31, 2006. The company recorded
total assets of MYR36.59 million and total liabilities of
MYR50.17 million.
In addition, as of Dec. 31, 2006, the company's balance sheet
showed strained liquidity with current assets of
MYR10.77 million available to pay MYR49.83 million of current
liabilities.
For the fourth quarter ended Dec. 31, 2006, Harvest Court
incurred a net loss of MYR13.61 million on MYR4.65 million of
revenues, as compared with MYR2.50 million of net loss on
revenues of MYR7.60 million in the same period in 2005.
A full-text copy of the company's financial report for the
quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/harvest-4q-2006.xlx
* * *
Headquartered in Selangor, Malaysia, Harvest Court Industries
Berhad -- http://www.harvestcourt.com/-- is engaged in kiln
drying, saw milling and manufacturing of timber doors and
related products. Other activities include development of
residential and commercial properties and jetty services and
provision of construction works and related maintenance
services. The Group is also involved in the provision of
marketing and management services and investment in shares and
securities. The Group operates in Malaysia and Australia.
The Group has defaulted on several loan facilities because of a
reduction in sales from 2002 onwards due to a weak global market
as a result of the Iraqi and the severe acute respiratory
syndrome, or SARS, as well as its inability to raise funds via
the equity market due to weak market sentiment. Due to its
financial position, Harvest Court had embarked on an exercise to
restructure the Company, including a debt restructuring and
capital reduction. The Company's proposed corporate exercise
was rejected by the Securities Commission in November 2005, on
grounds that the proposals are not comprehensive and are not
capable of resolving all financial problems of the Company. Its
appeal to reconsider the rejection was also junked by the
Commission on February 24, 2006.
Currently, the company is classified under the Amended PN17
category of the Bursa Malaysia Securities Bhd's official list
and is therefore required to implement a plan to regularize its
finances.
Harvest Court Industries Bhd's unaudited balance sheet as at
Dec. 31, 2006, went upside down with total assets of
MYR36.59 million and total liabilities of MYR50.17 million,
resulting to a shareholders' deficit of MYR13.58 million.
KUMPULAN BELTON: Bursa to Suspend Securities Trading on March 15
----------------------------------------------------------------
The Bursa Malaysia Securities Bhd will suspend the trading of
Kumpulan Belton Bhd's securities after the company failed to
submit its regularization plan to the Securities Commission and
other relevant authorities on its March 6, 2007 deadline.
The suspension will commence on March 15, 2007, at 9:00 a.m.
In addition, the bourse said that it will also commence a
delisting procedure against Kumpulan. The bourse will, however,
serve notice to make a representation as to why Kumpulan's
securities should not be delisted from the Official List of
Bursa Securities.
* * *
Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton
Berhad -- http://www.beltongroup.com/-- manufactures and sells
automotive suspension parts and components. Other activities
include property development and investment, provision of
machining and heat treatment services and investment holding.
Operations of the Group are carried out in Malaysia and
Australia.
Kumpulan Belton was identified as an affected listed issuer of
Practice Note 17, as its consolidated shareholders' equity as of
December 31, 2005, was less than 25% of its issued an paid up
capital. As an affected issuer, the Company is required to
submit a Regularization Plan to the relevant authorities for
approval and implement the Regularization Plan within the
timeframe stipulated by the relevant authorities.
MALAYSIA AIRLINES: No Bidder Yet for Seri Pacific Stake
-------------------------------------------------------
The Malaysia Airline Systems Bhd has not received any official
bid for its stake in hotelier Seri Pacific Corp, Reuters says,
citing the airline's disclosure with the Bursa Malaysia
Securities Bhd.
In the statement, Malaysia Airlines confirmed that no
negotiation has taken place with any party for the disposal of
the company's shares in Seri Pacific.
* * *
Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and
international flights. Its global network comprised 32 domestic
and 86 international destinations. Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.
The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes. In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007. Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.
METROPLEX BERHAD: Bursa to Delist Securities on March 14
--------------------------------------------------------
The securities of Metroplex Bhd will be removed from the
official list of the Bursa Malaysia Securities Bhd on March 14,
2007, at 9:00 a.m.
According to the bourse, the decision to delist the company's
securities came after Metroplex failed to submit a
regularization plan to the Securities Commission and other
relevant authorities on its Feb. 28 deadline.
* * *
Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations. Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school. Operations are
carried out in Malaysia, Hong Kong, and the Philippines.
As of October 31, 2006, the company reported MYR1.22 billion in
total assets and MYR1.46 billion in total liabilities, resulting
in a shareholders' deficit of MYR241.23 million.
SILVERSTONE CORP: Appeals Bursa's Securities Delisting Decision
---------------------------------------------------------------
Silverstone Corporation Bhd appealed Bursa Malaysia Securities
Bhd's decision to delist the company's securities from the
bourse's official list.
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 28, 2007, Silverstone failed to submit its regularization
plan to the Securities Commission and other relevant authorities
for approval by the extended deadline set by the Bursa Malaysia
Securities Bhd.
In this regard, the bourse decided to delist the company's
securities from its official list, the TCR-AP said.
Meanwhile, the bourse said that with the appeal, the removal of
the securities of Silverstone will be deferred pending its
decision on the appeal.
* * *
Headquartered in Kuala Lumpur, Silverstone Corporation Berhad is
an investment holding company. The Company operates through
business segments. SCB's business segments consist of tyre and
motor segments. The tyre segment is engaged in the manufacture
sale and distribution of tyres, retreading tyres, rubber
compounds and other related rubber products. SCB's tyres, the
Kruizer 1 and Evol 8 series are developed by using MicroBeta
Silica Technology. The motor segment is engaged in the
manufacturing of motorcycle parts and accessories,
electroplating of motorcycle absorbers, sales, and distribution
of motor vehicles. The company's other business segments
include investment holding, treasury business and provision of
training services. SCB has its operations in Malaysia and
China. Some of the company's subsidiaries include AMB Aerovest
Limited, AMB Harta (L) Limited, AMB Harta (M) Sdn Bhd and AMB
Venture Sdn Bhd.
The company is an affected listed issuer under Bursa Malaysia
Securities Berhad's amended Practice Note No. 17 as its auditors
have expressed a modified opinion with emphasis on the company's
going concern in the company's audited financial statement for
the financial year ended June 30, 2005. Moreover, Silverstone's
shareholders' equity on a consolidated basis as at June 30,
2005, represented 47.2% of the issued and paid-up capital of the
company.
STAR CRUISES: To Buy Genting's 25% Stake in Macau Casino
--------------------------------------------------------
Star Cruises Ltd would buy sister firm Genting International's
25% stake in a Macau casino investment for HK$58.5 million,
Reuters reports, citing a company's disclosure with the Hong
Kong and Singapore bourses.
In its statement, Star Cruises said that the total estimated
funding for the Macau casino project was about HK$3.5 billion.
To meet the funding requirements, the firm said that it would
use bank borrowings or raise new equity.
Exact details on the deal have not been determined, Reuters
relates.
* * *
Star Cruises Limited -- http://www.starcruises.com/-- is a
Company publicly listed in Hong Kong and is a core member of the
Genting Group and 36.1% owned by Resorts World, which is, in
turn, 57.7% owned by Genting Berhad. Star Cruises operates 22
ships with 35,000 lower berths under five main brands: Star
Cruises and Cruise Ferries, which service Asia Pacific, and
three brands under NCL. The company also has operations in
Malaysia.
Moody's Investors Service has placed the B1 corporate family
rating of Star Cruises Limited on review for possible downgrade
on Jan. 25, 2007.
The review has been prompted by SCL's announcement that it and
Genting International Plc, a subsidiary of Genting Berhad, will
acquire a 75% interest in Macau Land Investment Corporation,
which will develop a hotel and casino project on the foreshore
of downtown Macau.
In addition, on December 11, 2006, Standard & Poor's Ratings
Services placed its BB- long-term corporate credit ratings on
Malaysia-based cruise operator Star Cruises Ltd. on CreditWatch
with negative implications.
S&P also placed its BB- long-term corporate credit ratings on
U.S. based cruise operator NCL Corp. Ltd. (NCL) and its B
foreign currency ratings on NCL's senior unsecured debt of
US$250 million due 2014 on CreditWatch with negative
implications.
=====================
P H I L I P P I N E S
=====================
MAIDENFORM BRANDS: Earns US$3.2 Million in Quarter Ended Dec. 30
----------------------------------------------------------------
Maidenform Brands Inc. disclosed its financial results for the
fourth quarter and for the fiscal year ended Dec. 30, 2006.
Additionally, the company provided financial performance
guidance for 2007.
Fourth quarter 2006 highlights versus fourth quarter 2005
include:
-- Net sales increased 6.8% to US$85.0 million with wholesale
net sales increasing 6.9% to US$71.1 million.
-- Consolidated gross margins were 37.4%.
-- Net income increased to US$3.2 million from a loss of
US$0.2 million.
-- Diluted earnings per common share were US$0.13.
Fiscal 2006 highlights versus fiscal 2005 include:
-- Net sales increased 9.1% to US$416.8 million with
wholesale net sales increasing 10.0% to US$360.6 million.
-- Consolidated gross margins were 37.6%.
-- Net income increased to US$27.8 million from
US$8.9 million.
-- Diluted earnings per common share were US$1.15.
-- Total cash and cash equivalents was US$14.6 million at the
end of 2006.
In 2006, Maidenform prepaid US$27.5 million of its debt
outstanding and re-purchased US$7.6 million of its common stock.
Thomas J. Ward, Chief Executive Officer stated, "Our results for
the fourth quarter and full-year 2006 reflected the continued
strength of our multi-channel distribution strategy. The
company's performance was driven by our efforts to grow our
brand franchises and enter new product categories with our
customers. Maidenform's 2006 milestones included:
1) double digit net sales growth in the wholesale business;
2) consolidated gross margin increase to 37.6% through
product mix and sourcing initiatives;
3) leveraged expense structure to 24.3% of net sales; and
4) maximized cash flow utilization by paying down US$27.5
million of debt and repurchasing US$7.6 million of stock.
Looking forward, our team continues to remain focused on
achieving new levels of success."
Financial Results For Fourth Quarter 2006
Versus Fourth Quarter 2005
Net sales for the fourth quarter of 2006 increased
US$5.4 million, or 6.8%, to US$85.0 million. Wholesale segment
net sales in the fourth quarter of 2006 rose US$4.6 million, or
6.9%, to US$71.1 million. Retail segment net sales increased
US$0.8 million, or 6.1%, to US$13.9 million in the fourth
quarter of 2006.
Wholesale Segment
Department Stores & National Chain Stores
Net sales from the department stores and national chain stores
increased US$3.2 million, or 7.5%, to US$45.6 million in the
fourth quarter of 2006. These net sales results were due to
solid performance in Maidenform bras, continued strong growth in
the shapewear category which benefited the company's Flexees(R)
and Collection MTM products, in addition to an expanded
assortment and additional door distribution in the company's
full-figure Lilyette(R) brand.
Mass Merchant
In the fourth quarter, mass merchant net sales increased
US$1.4 million, or 9.4%, to US$16.3 million. Growth in the mass
merchant channel was largely driven by entering new product
classifications, including shapewear, with one mass customer.
Other
Other net sales, which include sales to specialty retailers,
off-price retailers and licensing income, remained unchanged at
US$9.2 million in the fourth quarter of 2006.
International sales, which are included in the total wholesale
segment, increased US$0.6 million, or 10.2%, to US$6.5 million
primarily due to stronger sales from the U.K., Mexico and the
Benelux countries.
Retail Segment
Same store sales for Maidenform's retail outlet stores increased
4.2% in the fourth quarter of 2006 from higher sales of
Flexees(R) and Lilyette(R) products, in addition to sales
strength during the holiday season from higher priced
assortments. Internet sales grew 33.0% to US$0.8 million in the
fourth quarter of 2006. The company had 76 retail outlet stores
as of Dec. 30, 2006, versus 74 at the end of 2005.
Consolidated gross profit increased US$5.7 million, or 21.8%, to
US$31.8 million in the fourth quarter of 2006. As a percentage
of net sales, consolidated gross margins improved to 37.4%. The
company's consolidated gross margins were favorably affected by
product mix, sourcing initiatives and less promotional activity
from certain customers. For the fourth quarter of 2005,
Maidenform's reported wholesale segment gross margins were
unfavorably affected by excess and close-out inventories,
particularly associated with the company's full support product
line and increased retail promotional activities at the end of
2005.
Consolidated selling, general and administrative expense
decreased US$0.6 million, or 2.4%, to US$24.1 million in the
fourth quarter of 2006 due to more targeted advertising
expenditures, partially offset by Sarbanes-Oxley related
expenses. This SG&A expense figure included US$0.4 million of
expenses associated with Maidenform's secondary offering of
stock for various selling stockholders in November 2006. As a
percentage of net sales, SG&A expense was 28.4% in the fourth
quarter of 2006. In the prior year quarter, SG&A expense was
31.0%, which included non-recurring severance related expenses
of US$0.3 million associated with plant closures.
Operating income increased US$6.3 million, more than five times,
to US$7.7 million in the fourth quarter of 2006. Operating
income as a percentage of net sales increased to 9.1% in the
fourth quarter of 2006 from 1.8% in the fourth quarter of 2005.
Net interest expense for the fourth quarter of 2006 decreased
US$0.3 million to US$2.1 million as Maidenform continued to
benefit from lower average debt outstanding, despite higher
average interest rates.
Maidenform's effective income tax rate for the fourth quarter of
2006 was 42.9% due, in part, to certain non-deductible expenses
related to the company's secondary offering in November 2006.
Net income for the fourth quarter of 2006 was US$3.2 million and
diluted earnings per common share were US$0.13. Net income for
the fourth quarter of 2005 was a loss of US$0.2 million with a
diluted loss per common share of US$0.01.
Financial Results for Fiscal 2006 versus 2005
Net sales for 2006 increased US$34.6 million, or 9.1%, to
US$416.8 million. Wholesale segment net sales increased
US$32.8 million, or 10.0%, to US$360.6 million in 2006. This
increase was driven by department stores/national chain stores
channel growth of 9.9% to US$222.8 million and mass merchant
channel growth of 22.1% to US$91.8 million, while other net
sales decreased 7.6% to US$46.0 million largely from lower
liquidation sales. International sales, which are included in
the total wholesale segment, increased US$1.7 million, or 6.3%,
to US$28.5 million. Retail segment net sales for 2006 increased
US$1.8 million, or 3.3%, to US$56.2 million and same store sales
were up 4.0%.
Consolidated gross profit increased US$21.7 million, or 16.1%,
to US$156.8 million for 2006. As a percentage of net sales,
reported consolidated gross margins increased to 37.6% as a
result of product mix and sourcing initiatives. Maidenform's
wholesale segment gross margins for 2005 included unfavorable
manufacturing variances of US$5.7 million, in addition to the
unfavorable effect of excess and close-out inventories from the
company's full support product line in late 2005.
Consolidated SG&A expense decreased US$0.3 million, or 0.3%, to
US$101.3 million for 2006 from US$101.6 million for 2005. As a
percentage of net sales, SG&A expense was 24.3% for 2006 and
26.6% for 2005. The prior year included non-recurring initial
public offering expenses of US$3.8 million, a special bonus paid
in connection with the credit facility amendment of US$1.5
million and severance expense of US$1.3 million associated with
plant closures. Partially offsetting these non-recurring
expenses were, in 2006, increased payroll and related benefits,
increased professional fees associated with being a public
company and Sarbanes-Oxley readiness, as well as expenses
associated with the secondary offering in November 2006.
For 2006, operating income increased US$22.0 million, or 65.7%,
to US$55.5 million. Operating income as a percentage of net
sales increased to 13.3% for 2006 from a reported 8.7% for 2005.
Operating income for 2005 was influenced by non-recurring
expenses associated with plant closures and the company's
initial public offering in July 2005.
Net income for 2006 was US$27.8 million compared to net income,
before preferred stock dividends and changes in redemption
value, of US$8.9 million in 2005. The prior year loss per share
included preferred stock dividends and changes in redemption
value of US$17.3 million.
Total cash and cash equivalents at the end of 2006 was US$14.6
million. Maidenform utilized its excess cash flow by continuing
to de-leverage its balance sheet with US$27.5 million of debt
pre-payments in 2006, including US$10.0 million pre-paid in the
fourth quarter of 2006. Additionally, the company purchased
US$7.6 million of its common stock in 2006. Maidenform's total
debt outstanding was US$110.0 million as of Dec. 30, 2006, with
a debt to EBITDA ratio of 1.83 to 1.0. The company's Board will
continue to evaluate the most prudent use of available cash flow
and borrowings under the revolver.
Financial Performance Guidance for 2007
Maidenform provided the following financial performance guidance
for the full-year 2007:
-- Total net sales growth of 6%-7% with low double-digit net
sales growth in Maidenform's branded wholesale business.
In 2007, the company will re-intensify its Self
Expressions brand with one mass customer as Maidenform
continues to focus aggressively on its branded business.
-- Consolidated gross margins of approximately 38%. In the
first quarter of 2007, the company's consolidated gross
margins are expected to be lower than this annual
projection from higher mass merchant sales and overall
product mix. Margins will then strengthen throughout the
remainder of 2007.
-- Operating income growth of 10%-14%.
-- Total operating cash flow of US$30-US$35 million.
-- EPS growth of 15%-18%.
Maidenform Brands, Inc. -- http://www.maidenform.com/-- is a
global intimate apparel company with a portfolio of established
and well-known brands, top-selling products and an iconic
heritage. Maidenform designs, sources and markets an extensive
range of intimate apparel products, including bras, panties and
shapewear. During the company's 83-year history, Maidenform has
built strong equity for its brands and established a solid
growth platform through a combination of innovative, first-to-
market designs and creative advertising campaigns focused on
increasing brand awareness with generations of women.
Maidenform sells its products under some of the most recognized
brands in the intimate apparel industry, including
Maidenform(R), Flexees(R), Lilyette(R), Self Expressions(R),
Sweet Nothings(R), Bodymates(TM), Rendezvous(R) and Subtract(R).
Maidenform products are currently distributed in 48 foreign
countries and territories, including the Philippines.
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. and Canadian Retail sector, the rating
agency confirmed its B1 Corporate Family Rating for Maidenform
Brands, 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
---------- ------- ------- ------ ----------
Senior secured
revolver Ba3 Ba2 LGD2 29%
Senior secured
term loan Ba3 Ba2 LGD2 29%
PHIL. LONG DISTANCE: Gov't. to Go After Marcoses on Dividends
-------------------------------------------------------------
The Philippine Government will run after the Marcos and
Cojuangco groups to return dividends that they earned from their
previously held shares of Philippine Long Distance Telephone
Co., ABS-CBN Interactive reports, citing Executive Secretary
Eduardo Ermita.
In August 2006, the country's Supreme Court upheld a ruling that
111,415 shares of the Philippine Telecommunication Investment
Corp., registered in the name of Prime Holdings Inc., in PLDT
are part of the ill-gotten wealth amassed by the Marcoses.
Accordingly, the Government sequestered the PTIC shares.
Now, the Government, through the Philippine Commission on Good
Government, wants to go after the dividends on the sequestered
PLDT shares.
In this regard, the PCGG has filed before the Sandiganbayan a
motion for final reconsideration to recover the dividends, PCGG
commissioner Nicasio Conti told ABS-CBN in an interview.
The case, according to ABS-CBN, is filed against the former
First Lady Imelda Marcos, Congresswoman Imee Marcos, Tomas
Manotoc, Irene Marcos Araneta, Gregorio Araneta III, Ferdinand
"Bong-Bong" Marcos Jr., Constante Rubio Nemesio G. Co., Yeung
Chun Kam, Yeung Chun Fan, Imelda Cojuangco, and the estate of
the late Ramon Cojuangco.
Specifically, the agency wants the group to account for all cash
and stock dividends declared and issued by PLDT in favor of PTIC
from 1986 to the present, including compounded interest.
Mr. Conti admits that there is no final figure yet on the value
of the dividends.
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.
TOWER RECORDS: Court OKs Pact Expanding Consor's Retention Scope
----------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
approved a stipulation among MTS Inc. dba Tower Records, its
debtor-affiliates, the Official Committee of Unsecured
Creditors, and an informal committee of secured trade vendors
expanding Consor Intellectual Asset Management's scope of
services.
Pursuant to that stipulation, Consor will now manage the
marketing and sale of the Debtors' intellectual properties under
the direction of the Debtors and in consultation with the
Committees.
The Creditors Committee had retained Consor as its intellectual
property valuation consultant pursuant to a Court-order dated
Dec. 20, 2006.
For its services under the modified retention agreement, Consor
will receive:
a) a non-refundable fee of US$100,000 upon Court approval of
the retention application;
b) an incentive and success fee out of the sale proceeds upon
closing of any sale transaction for each or all of the IP
assets as follows:
-- on the first US$2,000,000 of the gross consideration
received by or for the benefit of the Debtors' estates
for all transactions, no success fee will be payable to
Consor;
-- after generating the first US$2,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions, the success fee
payable to Consor will be 5% of the increment in excess
of US$2,000,000 up to US$4,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions;
-- after generating the first US$4,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions, the success fee
payable to Consor will be 10% of the increment in
excess of US$4,000,000 up to US$6,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions; and
-- after generating the first US$6,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions, the success fee
payable to Consor will be 15% of the increment in
excess of US$6,000,000 of the gross consideration
received by or for the benefit of the Debtors' estates
for all transactions.
To the best of the parties' knowledge, Consor does not hold any
interest adverse to the Debtors' estate.
Consor has started marketing the IP Assets in January 2007.
About Tower Records
Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores. The company has stores in the United Kingdom,
the Philippines and Colombia.
The Company and its affiliates previously filed for chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No. 04-
10394). The Court confirmed the Debtors' plan on March 15,
2004.
The Company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893). Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than $100 million. The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.
Moody's Investors Service gave the company's issuer rating and
long-term corporate family rating a Ca, and its senior
subordinated rating a C.
* Philippines' End-February GIR Hits US$24-Billion Mark
-------------------------------------------------------
The country's gross international reserves climbed further to
another record-high of US$24.37 billion at end-February 2007.
The current preliminary GIR level was US$0.68 billion higher
than the end-January 2007 level of US$23.69 billion.
The increase in reserves was traced to several factors including
the National Government's deposit of the proceeds from its
program loans from the World Bank and the Asian Development
Bank, as well as BSP's foreign exchange operations and income
from investments abroad. These inflows were partly offset,
however, by payments of maturing foreign exchange obligations of
the NG and the BSP. In terms of reserve adequacy, the end-
February 2007 GIR level could cover about 4.7 months of imports
of goods and payments of services and income. This level is
also equivalent to 4.3 times the country's short-term external
debt based on original maturity and 2.5 times based on residual
maturity.
Net international reserves, including revaluation of reserve
assets and reserve-related liabilities, likewise rose to
US$24.36 billion from the end-January 2007 level of US$23.68
billion. NIR refers to the difference between the BSP's GIR and
total short-term liabilities.
* * *
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Jan. 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
BB+/Stable/B) proposed US$1.0 billion global bond issue maturing
in 2032.
On Nov. 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.
The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.
* Country's Inflation Eases Further to 2.6% in February
-------------------------------------------------------
Price pressures continued to abate in February as the headline
inflation decelerated to 2.6%, its lowest level since December
2002. The inflation rates of all major commodity groups slowed
significantly during the month, bringing the year-to-date
average inflation rate to 3.2%. The February inflation outturn
was below the BSP's forecast range of 3.0-3.6%. The significant
slowdown in prices was attributed mainly to the dropping out of
the base effect of the RVAT on the CPI, along with the continued
softening of local fuel prices and the strengthening of the
peso. On a month-on-month basis, prices declined by 0.1% in
February, from a positive growth of 0.3% last month, due mainly
to lower prices of major food and services items.
Year-on-year core inflation also sustained its downtrend,
registering a 0.9% age drop to 3.0 % from 3.9% in the previous
month.
Current price trends continue to support the BSP's expectations
of a generally subdued inflation environment over the next two
years. Easing supply-side pressures, moderate improvements in
demand conditions and well-contained inflation expectations
remain consistent with a generally benign inflation setting.
Barring unforeseen external and domestic shocks, average
inflation for 2007 is expected to settle within the Government's
target range of 4-5 %. Likewise, the 2008 average inflation is
projected to fall within the Government's target of 4.0% +/- 1
percentage point.
Despite the current benign trends in inflation, the BSP keeps
its vigilant eye over the potential risks to the inflation
outlook. These include the volatility in world oil prices and
the sustained surge in liquidity. The BSP will continue to
watch closely the evolving monetary conditions with a view to
formulating the necessary policy response that would ensure the
maintenance of price stability as the economy sustains its
growth momentum.
* * *
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Jan. 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
BB+/Stable/B) proposed US$1.0 billion global bond issue maturing
in 2032.
On Nov. 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.
The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.
=================
S I N G A P O R E
=================
CHINA AVIATION: Closes Jet Fuel Tender for April 2007 Deliveries
----------------------------------------------------------------
China Aviation Oil (Singapore) Corporation Ltd had closed its
latest physical Jet Fuel tender for delivery in April 2007.
In the latest tender, CAO received responses from 17 physical
jet-fuel suppliers. For this tender, total volume of 295,000
metric tonnes of A-1 Grade Jet Fuel was awarded.
The cover ratio for the awarded cargos was approximately 6.0
times. The tender was awarded to the most competitive
suppliers.
The Company expresses its appreciation to all suppliers for
their continued support of its jet fuel procurement business.
About China Aviation Oil (Singapore)
Incorporated in 1983, China Aviation Oil (Singapore) Corp.
Limited -- http://www.caosco.com/-- deals primarily in jet fuel
procurement, although it is also active in international oil
trading and oil-related investment. The firm commands a near-
100% market share of the procurement of imported jet fuel for
China's civil aviation industry, and has expanded its market to
include ASEAN countries, the Far East and the United States.
The company is undergoing restructuring. Its Restructuring Plan
was approved by shareholders on March 3, 2006, and sanctioned by
the High Court of Singapore on March 21, 2006. It became
effective on March 28, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 10, 2006, the company is currently working with an
insolvent balance sheet, with a US$390.07 million shareholder's
deficit on total assets of US$211.96 million.
PETROLEO BRASILEIRO: Processes 1.9MM Barrels of Crude Last Month
----------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA said in
a statement that its refineries processed a record 1.9 million
barrels of crude on Feb. 27.
According to Petroleo Brasileiro's statement, the previous
record of 1.88 million barrels was set on Aug. 16, 2005.
Petroleo Brasileiro told Business News Americas, "These results,
achieved under strict operational reliability and safety
standards at the units, are the outcome of the integrated work
carried out among all downstream and E&P [exploration and
production] areas, from oil lifting and outflow to byproduct
delivery to the customers."
According to BNamericas, Petroleo Brasileiro processed about
1.78 million barrels per day of crude at its 11 domestic plants
in 2006, about 1.5% greater than 2005. The refineries have
combined capacity of 2 million barrels per day.
Petroleo Brasileiro will invest BRL6.7 billion in refining this
year. The investment includes the construction of two new
plants with combined capacity of 350,000 barrels per day to
begin operations after 2011, BNamericas states.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Will Launch Exploratory Drilling in Peru
-------------------------------------------------------------
Brazil's state-owned oil company Petroleo Brasileiro SA is
working with Peruvian counterpart Petroperu to start exploratory
drilling on six blocks in Peru's Maranon basin in the second
half of 2008, news daily El Peruano reports.
Business News Americas relates that Petroleo Brasileiro and
Petroperu signed six technical evaluation accords for blocks
26-31 in November 2006. The two state firms are in a pre-
exploration stage, which involves gathering seismic data and
will require 18 months work before drilling can start.
According to BNamericas, studies will cost US$1 million.
BNamericas underscores that Colombian state oil firm Ecopetrol
will join the Petroleo Brasileiro and Petroperu in the project.
Petroperu and Petroleo Brasileiro will determine the possible
participation of Ecopetrol in the next 45 days, Andina news
agency states.
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.
REFCO INC: Refco LLC Files January 2007 Monthly Operating Report
----------------------------------------------------------------
Albert Togut, the Chapter 7 trustee overseeing the liquidation
of Refco LLC's estate, filed with the United States Bankruptcy
Court for the Southern District of New York a monthly statement
of cash receipts and disbursements for the period from Jan. 1 to
31, 2007.
The Chapter 7 Trustee reports that Refco LLC's beginning balance
as of Jan. 1 totals US$620,415,000. The Debtor's beginning
purchase price account balance totals US$15,212,000, while its
beginning capital account "A" balance aggregates US$605,203,000.
The purchase price account includes activity related to Man
Financial Inc. sale proceeds and related disbursements. Capital
account "A" includes activities related to collection of excess
capital.
Refco LLC received US$13,553,000 and disbursed US$690,000. The
Debtor held US$633,278,000 at the end of the period.
The Chapter 7 Trustee prepared the Monthly Statement in lieu of
comprehensive financial statements.
A full-text copy of Refco LLC's January 2007 Monthly Statement
is available at no charge at:
http://researcharchives.com/t/s?1a9b
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. The Debtors' Amended Plan was confirmed on Dec. 15,
2006. (Refco Bankruptcy News, Issue No. 57; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
* SGX Acquires 5% Stake in Bombay Stock Exchange
------------------------------------------------
Singapore Exchange Limited and Bombay Stock Exchange Limited
disclosed that they have entered into an agreement for SGX to
invest in a 5% stake in BSE.
SGX will subscribe to the shares of BSE at INR5,200 per share
for INR189 crore (US$42.7 million).
The two exchanges have also agreed to actively explore
collaboration in various areas relating to listings and product
development, leveraging on SGX's leading position as a regional
hub for derivatives and international listings and BSE's strong
presence in India.
Rajnikant Patel, Managing Director & CEO of BSE said, "This
strategic tie-up with SGX will offer the Asian advantage to BSE.
SGX is Asia-Pacific's first demutualised and integrated
securities and derivatives exchange. They bring a huge amount
of learning to this partnership. This partnership will not only
be mutually beneficial to both the exchanges, but also
complement our association with Deutsche Borse. This alliance
will position BSE to be an important player in the increasingly
globalised marketplace."
Hsieh Fu Hua, CEO of SGX, said, "We look forward to supporting
BSE's goal to strengthen their international position.
Together, we aim to identify new business development
opportunities and to foster an enduring partnership that is
beneficial to both exchanges and our customers. Our investment
in BSE is consistent with our strategy of building an Asian
Gateway for securities and derivatives products."
The issue of shares is subject to relevant regulatory and
shareholder approvals. Kotak Investment Banking advised BSE and
UBS Investment Bank acted as financial advisor to SGX in
connection with the transaction.
===============
T H A I L A N D
===============
COMPUTER SCIENCES: Files Delinquent Quarterly Reports with SEC
--------------------------------------------------------------
Computer Sciences Corporation is withdrawing its previously
announced consent solicitation with respect to all of its
outstanding:
-- 3.50% Notes due 2008;
-- 6.25% Notes due 2009;
-- 7.375% Notes due 2011; and
-- 5.00% Notes due 2013.
On Feb. 21, CSC commenced the Consent Solicitation requesting a
one-time waiver through July 9 of any default or event of
default that has arisen prior to the effective date of the
waiver by virtue of CSC's failure to file with the United
States Securities and Exchange Commission and furnish to
Citibank, N.A., the Trustee, with respect to the Notes, and
holders of the Notes, certain reports required to be so filed
and furnished by CSC pursuant to the terms of the indentures
governing the Notes.
Stock Options Probe
On Feb. 28, CSC completed its internal investigation of its
stock option grant practices, which was initiated by CSC's Board
of Directors in response to investigations of CSC's option grant
practices by the SEC and the United States Attorney's Office for
the Eastern District of New York.
Following the completion of this internal investigation, CSC has
transmitted to the SEC, for filing on March 5, CSC's Quarterly
Reports on Form 10-Q for the fiscal quarters ended
Sept. 29, 2006, and Dec. 29, 2006, and has also furnished
Citibank, N.A., as Trustee, copies of such reports, which will
cure any default under the indentures for which the one-time
waiver was being sought pursuant to the Consent Solicitation.
Accordingly, CSC has elected to withdraw the Consent
Solicitation effective immediately.
On Dec. 8, 2006, CSC received a notice of default from the
Trustee alleging a default under the various indentures
governing the Notes arising from CSC's failure to timely file
the Quarterly Report for the fiscal quarter ended
Sept. 29, 2006.
On Dec. 21, 2006, CSC obtained a waiver through Mar.9, 2007,
from more than a majority of the holders of CSC's outstanding
6.25% Notes with respect to its failure to file the Quarterly
Report for the fiscal quarter ended Sept. 29, 2006.
About Computer Sciences
Headquartered in El Segundo, Calif., Computer Sciences
Corporation (NYSE: CSC) -- http://www.csc.com/-- is an
information technology services company. The company's services
include systems design and integration; IT and business process
outsourcing; applications software development; Web and
application hosting; and management consulting. The company has
operations in Singapore, the United Kingdom and Thailand.
DAIMLERCHRYSLER AG: Will Develop Hybrid Drive System with BMW
-------------------------------------------------------------
DaimlerChrysler AG and the BMW Group will develop as equal
partners an innovative hybrid module for rear-wheel-drive
premium segment cars in an expansion of their previous
collaboration in the field of hybrid drive systems.
Both carmakers plan to commercialize the new module within the
next three years. This collaboration will allow the two
companies to share their extensive know-how and to achieve
increased efficiency through economies of scale.
The decision to jointly develop hybrid drive components will
allow DaimlerChrysler and BMW to extend their range of
innovative drive systems for rear-wheel-drive premium segment
cars.
Both manufacturers will benefit from the pooling of development
capacity, which will make for faster commercialization, and from
improved cost efficiencies due to higher unit volumes.
The components will be individually adapted by the two companies
to the different character of the two brands.
"Cooperation in the field of innovative drive systems makes good
sense not only from a technical but also from an economic
standpoint," emphasized Dr. Thomas Weber, member of
DaimlerChrysler's Board of Management responsible for Group
Research and Mercedes Car Group Development.
"It will help to strengthen the competitiveness of two German
manufacturers whose requirements in the premium segment are very
similar. This is a segment where rapid commercialization of
drive technologies offering high efficiency, performance, and
comfort is particularly important."
"This collaboration will allow us to broaden our technological
base in the area of future hybrid drive systems for the premium
class and will allow the two companies to pool their innovative
resources," said Dr. Klaus Draeger, member of BMW's Board of
Management responsible for Development and Purchasing.
"The distinct identities of the different brands will not be
affected, since the relevant technologies will be tailored to
fit the specific character of the different vehicles."
Both technically and geographically, the core development work
on the proposed hybrid module, which will be of the mild hybrid
type, will take place in Germany, at the relevant engine and
drive-train development sites.
A common project framework will ensure close integration of the
development teams and will harness the combined knowledge base
of both manufacturers.
Synchronized development procedures, joint testing, and
state-of-the-art quality assurance and development methods will
assist the efficient implementation of the project.
This new collaboration between BMW and DaimlerChrysler extends
the existing cooperation at the Hybrid Development Center in
Troy, USA, which began in 2005.
Both companies are rapidly expanding their portfolio of
alternative drive technologies and rounding out their range of
hybrid drive components.
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.
DAIMLERCHRYSLER: Considers Sale of Chrysler Group's Finance Arm
---------------------------------------------------------------
DaimlerChrysler AG is leaving all options open for Chrysler
Group, including a possible sale of its Chrysler Financial auto
loan and leasing unit, reports say.
If the company decides to divest its loss-making U.S. unit,
DaimlerChrysler CEO Dieter Zetsche said "we have the option to
do the same with the financial arm, or not," Bloomberg relates.
Speculations of a possible sale or spin-off arose after Mr.
Zetsche announced on Feb. 14 that his company is keeping all
options open for Chrysler, a report published by The New York
Times says.
"Chrysler must follow the same turnaround path as Ford and GM,
whether they are part of Daimler or owned by someone else," Pete
Hastings, a fixed-income analyst at Morgan Keegan & Co., was
cited by Bloomberg as saying.
General Motors Corp. last year sold a 51% stake in its General
Motors Acceptance Corp. finance unit to a consortium of
investors led by Cerberus FIM Investors LLC and including wholly
owned subsidiaries of Citigroup Inc., Aozora Bank Ltd., and The
PNC Financial Services Group Inc. The sale carries a US$7.4
billion purchase price, a US$2.7 billion cash dividend from
GMAC, and other transaction related cash flows including the
monetization of certain retained assets. GM and the Cerberus-
led consortium invested US$1.9 billion of cash in preferred
equity in GMAC -- US$1.4 billion by GM and US$500 million by the
consortium.
Ford, on the other hand, said it doesn't plan to sell part of
its Ford Motor Credit finance unit, Bloomberg relates.
Chrysler Group earlier posted an operating loss of EUR1.12
billion in 2006, compared with an operating profit of EUR1.53
million in 2005. Its 2006 revenues of EUR47.1 billion were
significantly lower than in 2005's EUR50.1 billion. The company
blamed lower volumes and a weaker U.S. dollar on average for the
deteriorating operating results.
About DaimlerChrysler
Headquartered 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
costsfor 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.
DAIMLERCHRYSLER AG: Two Main Unions Spar Over Chrysler's Future
---------------------------------------------------------------
DaimlerChrysler AG's two major unions, German IG Metall and the
United Auto Workers of the U.S., disagree over the mechanics of
the looming sale of the troubled Chrysler unit, the Wall Street
Journal relates.
According to the report, labor representatives on the company's
board intend to block a potential all-share deal with GM in
exchange for Chrysler.
As reported in the TCR-Europe on Feb. 28, DaimlerChrysler is
considering General Motors Corp.'s offer to give the company a
minority stake in GM in return for Chrysler if both groups come
to an agreement on the sale of the unit.
The unions' common ground regarding the unit's sale ends there,
however, as regional interests collide. IG Metall is concerned
that capital which could be spent augmenting the German
Mercedes-Benz brand would instead be wasted on saving Chrysler,
WSJ states.
On the other hand, the U.S. arm is highly dependent on the
Mercedes-Benz brand, with UAW President Ron Gettelfinger urging
DaimlerChrysler's management to use the German division's
resources to fix Chrysler, the report says.
The Troubled Company Reporter revealed on Feb. 28 that the
company's Chrysler Group and UAW agreed on two special programs
that will provide retirement and separation incentives for the
Company's bargaining-unit employees in the U.S. as part of the
Chrysler Group's Recovery and Transformation Plan.
Meanwhile, DaimlerChrysler plans to give bonuses of EUR2,000
each to 132,000 of its German employees as reward for the
stellar performances of its Mercedes unit and commercial-truck
division, WSJ reports.
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.
ITV PCL: Council Of State Approves PR Department's Takeover
-----------------------------------------------------------
The Council of State ruled that the Public Relations Department
could legally run iTV Pcl, which is in transition from a
privately owned to a state-owned entity, The Nation reports.
The report states that Prime Minister Surayud Chulanont
immediately ordered the PRD to allow the station, whose name has
now been changed to Thai Independent Television, or TITV, to
continue broadcasting without further interruptions.
The Troubled Company Reporter - Asia Pacific reported on Mar 8,
2007, that the iTV station went off the air immediately after
midnight on March 7, pending the Council of State's ruling over
the PRD's takeover of the network, which has failed to pay more
than THB100 billion in debts to the Prime Minister's Office.
The TCR-AP stated that iTV staff, while waiting for the Council
of State's ruling, had filed a petition with the Central
Administrative Court asking for an injunction against the
decision of the PMO to temporarily close down the station.
The Nation, citing Council of State Secretary-General Pornthip
Jala, states that it was already clear that the Council of State
would rule on whether it was legally possible for the PRD to run
iTV, and that any other decision regarding the network's fate
rested on Surayud, PMO Minister Dhipavadee Meksawan, and the
Cabinet.
The Nation adds that PRD Director-General Pramoj Rathavinij
assured the PMO that his agency was ready and fully capable of
managing iTV without any interference with the channel's
programming and editorial independence. iTV will still retain
its 70:30 ratio of news versus entertainment content, but the
network has to move from its old headquarters in the Shinawatra
3 Building to the PRD's building.
The report states that the PRD would seek a budget of
THB90 million a month from the PMO to advance operational costs
for TITV, which generally earns about THB130 million and spends
about THB100 million a month. The money, according to the
report, will be returned to the PMO later.
The PRD is willing to continue hiring iTV staff, offering the
same salaries and benefits making them new PRD employees, and as
for companies having contracts with iTV, the PRD will now be the
new contract party, the report explains.
The PMO's permanent secretary, Jullayuth Hiranyawasit, also
informed iTV staff members that they could sign new employment
contracts with the PRD if they wished to continue working for
the channel, The Nation relates.
On how to take action against iTV, Mr. Jullayuth said his agency
would ask the Attorney-General's Office to help with legal
matters. He added that they are looking into the possibility of
demanding compensation and a bankruptcy suit.
The report further notes that the staff could seek severance pay
from iTV.
Minister Dhipavadee says that iTV's management was responsible
for the contract breach and they should come out and apologize
to the staff.
About iTV
iTV PLC's principal activity is producing and broadcasting
television programs and channels, including the promotion of
related rights and assets. Shin Corp Plc is iTV's major
shareholder, with a 53% stake. Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family. Earlier this year, it sold its majority
stake in iTV to Temasek.
The Troubled Company Reporter - Asia Pacific reported on
June 23, 2006, that the Prime Minister's Office demanded a
concession fee payment and fines to the government from the
television network.
The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's Office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.
On Dec. 15, 2006, the TCR-AP reported that the Supreme
Administrative Court upheld the Central Administrative Court's
verdict by voiding the arbitration ruling on concession fee
payments won by iTV in 2004. The overdue concession payment and
fines that the broadcaster must pay reached THB100 billion.
A TCR-AP report on March 8, 2007, indicated that the station
failed to pay more than THB100 billion in debts to the PMO.
Thus, iTV's operations was turned over to the Public Relations
Department instead of being shut down. iTV's name is now Thai
Independent Television.
PHELPS DODGE: Freeport Offers US$6 Billion Notes to Fund Buy
------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. announced that it intends to
offer a total of US$6 billion aggregate principal amount of
senior notes to the public in two tranches. The first tranche
will be 8-year senior notes and the second tranche will be 10-
year senior notes.
Freeport-McMoRan intends to use the net proceeds from the
offering to fund a portion of the Phelps Dodge Corp. acquisition
consideration and pay related fees and expenses. The closing of
this offering is conditioned on the Phelps Dodge acquisition.
As previously announced, each company will hold a special
meeting of stockholders on March 14, 2007, to vote on the
proposed acquisition of Phelps Dodge by Freeport-McMoRan.
The joint book-running managers for the offering are JPMorgan
and Merrill Lynch & Co. Copies of the preliminary prospectus
supplement relating to this offering may be obtained by
contacting J.P. Morgan Securities Inc., 270 Park Avenue, 8th
Floor, New York, New York, 10017 or Merrill Lynch & Co., 4 World
Trade Center, New York, New York, 10080.
This announcement is neither an offer to sell nor a solicitation
of an offer to buy any securities and shall not constitute an
offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale would be unlawful. Any offers of
the notes will be made exclusively by means of a prospectus and
prospectus supplement.
About Freeport-McMoran Copper & Gold Inc.
Freeport-McMoRan Copper & Gold Inc. is a Louisiana based
producer of copper and gold through its Grasberg mine in
Indonesia. Freeport's revenue in 2006 was US$5.8 billion.
About Phelps Dodge Corp
Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.
Phelps Dodge has operations in Thailand, China, the Philippines
and Japan, among others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
March 6, 2007, Moody's Investors Service affirmed the B1 (LGD4,
63%) rating on Phelps Dodge's Cyprus Amax notes and on Phelps
Dodge's other existing senior unsecured notes.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker ($MM) ($MM)
------- ------ ------ ------------
AUSTRALIA
Hutchison Telecommunications
(Aust) Ltd. HTA 1696.65 -786.31
Indophil Resources NL IRN 37.79 -69.96
Intellect Holdings Limited IHG 15.01 -0.83
KH Foods Ltd KHF 62.30 -1.71
Lafayette Mining Limited LAF 78.17 -127.82
Life Therapeutics Limited LFE 59.00 -0.38
Stadium Australia Group SAX 135.23 -41.84
CHINA AND HONG KONG
Artel Solutions Group
Holdings Limited 931 29.19 -18.65
Asia Telemedia Limited 376 10.89 -5.50
Chang Ling Group 561 77.48 -76.83
Chengdu Book Digital Co. Ltd. 600083 21.50 -3.07
China Liaoning International
Cooperation Holdings Ltd. 638 20.12 -42.96
China Kejian Co. Ltd. 35 54.71 -179.23
Datasys Technology
Holdings Ltd 8057 14.1 -2.07
Dynamic Global Holdings Ltd. 231 39.43 -2.21
Everpride Biopharmaceutical
Company Limited 8019 10.16 -2.16
Fujian Changyuan Investment
Holdings Limited 592 31.36 -54.04
Guangdong Kelon Electrical
Holdings Co Ltd 921 685.74 -96.88
Guangdong Meiya Group
Company Ltd. 529 107.16 -49.54
Guangxia (Yinchuan) Industry
Co. Ltd. 557 62.19 -115.50
Hans Energy Company Limited 554 94.75 -10.76
Hualing Holdings Limited 382 242.26 -28.15
Huda Technology & Education
Development Co. Ltd. 600892 17.29 -0.19
Hunan Genuine Material
Co., Ltd. 156 77.57 -77.92
Hunan GuoGuang Ceramic
Co., Ltd. 600286 87.44 -68.55
Hunan Hengyang 600762 68.45 -7.20
Innovo Leisure Recreation
Holdings Ltd. 703 13.37 -3.89
Jiamusi Paper Co. Ltd. 699 109.07 -86.57
Junefield Department
Store Group Limited 758 16.80 -6.34
Loulan Holdings Limited 8039 13.01 -1.04
New World Mobile Holdings Ltd 862 295.66 -12.53
Orient Power Holdings Ltd. 615 176.86 -64.20
Plus Holdings Ltd. 1013 18.52 -3.34
Shenyang Hejin Holding
Company Ltd. 633 83.18 -20.87
Shenzhen Dawncom Business Tech
and Service Co., Ltd 863 79.84 -37.30
Shenzhen Shenxin Taifeng
Group Co., Ltd. 34 95.27 -44.65
Sichuan Changjiang Packaging
Holding Co. Ltd. 600137 13.11 -72.76
Sichuan Topsoft Investment
Company Limited 583 113.12 -148.61
Songliao Automobile Co. Ltd. 600715 49.56 -3.76
Taiyuan Tianlong Group Co.
Ltd 600234 13.47 -87.63
Winowner Group Co. Ltd. 600681 38.03 -62.88
Xinjiang Hops Co. Ltd 600090 86.63 -11.26
Yueyang Hengli Air-Cooling
Equipment Inc. 622 49.89 -17.71
Zarva Technology Co. Ltd. 688 101.76 -102.01
Zhejiang Haina Science & Tech
Co., Ltd. 925 21.43 -33.33
INDIA
Andhra Cement Ltd. ANDC 58.94 -13.48
ATV Projects India Ltd. ATV 68.25 -30.17
Bagalkot Udyog Ltd. BUL 20.55 -0.63
Baroda Rayon Corp. Ltd. BR 41.16 -26.62
Birla VXL Ltd. NVXL 98.77 -14.62
Core Healthcare Ltd. CPAR 214.36 -199.02
Deccan Aviation Pte. Ltd. DECA 86.94 -2.83
Fairfield Atlas Ltd. ATG 20.03 -0.15
GKW Ltd. GKW 35.75 -13.52
Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.01
Himachal Futuris HMFC 574.62 -38.68
HMT Ltd. HMT 238.05 -288.85
IFCI Ltd. IFCI 2566.01 -727.71
JCT Electronics Ltd. JCTE 118.28 -165.74
Jenson and Nicholson
(India) Ltd. JN 15.41 -77.32
Kinetic Engineering Ltd. KNEL 72.82 -5.40
Kothari Sugars and
Chemicals Ltd. NKTSG 43.24 -29.24
Lloyds Steel Industries Ltd. LYDS 380.94 -69.93
LML Ltd. LML 81.21 -11.89
Mafatlal Ind. MFI 110.62 -74.82
Malanpur Steel Ltd. HDC 82.08 -52.01
Modern Threads MRT 78.18 -20.71
Mysore Cements Ltd. MYC 82.02 -14.57
Mysore Kirloskar Ltd. MK 23.71 -3.04
Phil Corporation Ltd. NPPI 22.13 -4.96
RPG Cables Ltd. NRPG 51.43 -20.19
Saurashtra Cement Ltd. SRC 112.31 4.57
Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38
Shyam Telecom NSHY 147.34 -22.80
Singer India Ltd. SING 12.32 -6.69
SIV Ind. Ltd. NSIV 101.16 -66.27
SpiceJet Ltd. SJET 121.34 -2.75
INDONESIA
Ades Waters Indonesia Tbk ADES 21.35 -8.93
Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21
Hotel Sahid Jaya SHID 71.05 -4.26
Mulialand Tbk MLND 141.33 -45.99
Steady Safe SAFE 19.65 -2.43
Toba Pulp Lestrari Tbk INRU 403.58 -198.86
Unitex Tbk UNTX 29.08 -5.87
Wicaksana Overseas
International Tbk WICO 43.09 -46.36
Sekar Bumi Tbk SKBM 23.07 -41.95
Suba Indah Tbk SUBA 85.17 -9.18
JAPAN
Mamiya-OP Co., Ltd. 7991 152.37 -67.11
Montecarlo Co. Ltd. 7569 66.29 -3.05
Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10
Sumiya Co., Ltd. 9939 89.32 -11.57
Yakinikuya Sakai Co., Ltd. 7622 79.34 -11.20
MALAYSIA
Antah Holdings Bhd ANT 184.60 -98.30
Ark Resources ARK 25.91 -28.35
Cygal Bhd CYG 58.47 -69.79
Mentiga Corporation Berhad MENT 22.13 -18.25
Metroplex Bhd MEX 323.51 -49.28
Mycom Bhd MYC 222.58 -136.17
Olympia Industries Bhd OLYM 272.49 -281.44
Pan Malay Industries PMRI 199.08 -6.30
Park May Bhd PMY 11.04 -13.58
PSC Industries Bhd PSC 62.80 -116.18
Setegap Berhad STG 19.92 -26.88
Wembley Industries Holdings Bhd WMY 111.72 -204.61
PHILIPPINES
APC Group Inc. APC 67.04 -163.14
Atlas Consolidated Mining and
Development Corp. AT 33.59 -57.17
Cyber Bay Corporation CYBR 11.54 -58.06
East Asia Power Resources Corp. PWR 92.55 -64.61
Filsyn Corporation FYN 19.20 -8.83
Gotesco Land, Inc. GO 17.34 -9.59
Prime Orion Philippines Inc. POPI 98.36 -74.34
Unioil Resources & Holdings
Company Inc. UNI 10.64 -9.86
United Paragon Mining Corp. UPM 21.19 -21.52
Uniwide Holdings Inc. UW 61.45 -30.31
Victorias Milling Company Inc. VMC 127.83 -32.21
SINGAPORE
China Aviation Oil (Singapore)
Corporation CAO 211.96 -390.07
Compact Metal Industries Ltd. CMI 54.36 -25.64
Falmac Limited FAL 10.90 -0.73
Informatics Holdings Ltd INFO 22.30 -9.14
Liang Huat Aluminium Ltd. LHA 19.30 -76.43
Lindeteves-Jacoberg Limited LJ 225.52 -53.23
Pacific Century Regional PAC 1381.26 -107.11
See Hup Seng Ltd. SHS 17.36 -0.09
SOUTH KOREA
BHK Inc 3990 24.36 -17.38
C & C Enterprise Co. Ltd. 38420 28.05 -14.50
Cenicone Co. Ltd. 56060 36.82 -1.46
Cheil Entech Co. Ltd. 53330 37.25 -0.31
DaeyuVesper Co. Ltd. 41140 19.06 -1.60
Everex Inc. 47600 23.15 -5.10
EG Greentech Co. 55250 186.00 -1.50
EG Semicon Co. Ltd. 38720 166.70 -12.34
Tong Yang Major 1520 2332.81 -86.95
TriGem Computer Inc 14900 629.32 -292.96
THAILAND
Bangkok Rubber PCL BRC 70.19 -56.98
Circuit Electronic
Industries PCL CIRKIT 20.37 -64.80
Kuang Pei San Food Products
Public Co. POMPUI 12.51 -9.87
Sahamitr Pressure Container
Public Co. Ltd. SMPC 20.77 -28.13
Sri Thai Food & Beverage Public
Company Ltd SRI 18.29 -43.37
Tanayong PCL TYONG 178.27 -734.30
Thai-Denmark PCL DMARK 21.37 -18.88
Thai-Wah PCL TWC 91.56 -41.24
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Andrei Sanchez, Nolie Christy Alaba, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano,
Catherine Gutib, Tara Eliza Tecarro, Freya Natasha Fernandez,
and Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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*** End of Transmission ***