/raid1/www/Hosts/bankrupt/TCRAP_Public/070312.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
Monday, March 12, 2007, Vol. 10, No. 50
Headlines
A U S T R A L I A
AMD 350: Commences Liquidation Proceedings
AMD HOLDINGS: Taps Antony de Vries & Riad Tayeh as Liquidators
CELLSITES INT'L: Liquidator to Give Wind-Up Report on April 10
FAIRGILL MANAGEMENT: Members Decide to Wind Up Firm
HIDES CONSULTING: Members and Creditors to Meet on March 29
ITRON INC: Ambassador Thomas S. Foley Retires as Director
MACDONALD INSURANCE: Members' Final Meeting Set for April 2
NORD RESOURCES: Plantinum Fails to Pay US$2 Mln. Termination Fee
NORSKE SKOGINDUSTRIER: Lars Groholt to Leave Post as Chairman
NRG ENERGY: 2006 Net Income Increases to US$621 Million
PACIFIC EXPLOSIVES: To Declare Dividend on March 15
PASDONNAY PTY: To Hold Joint Meeting on March 28
POLYPORE INT'L: Moody's Affirms Junk Rtg. on Sr. Discount Notes
REALOGY CORP: Moody's Rates Proposed US$4.27-B Facility at Ba3
SAMPSON PROPERTIES: Final Meeting Slated for March 28
ZEINA NOMINEES: Liquidators Present Wind-Up Report
C H I N A & H O N G K O N G
BANK OF COMMUNICATIONS: Expects Mainland Listing by July
BANK OF COMMUNICATIONS: 2006 Net Profit Rises 32.7% to CNY12BB
CENTURY ASIA: Annual Meetings Slated for March 15
FUYAO GLASS: Strong Sales Hike '06 Net Profit by 55% to CNY607MM
HONG KONG BUS: Members & Creditors Meeting Set for March 15
PANVA GAS: Moody's Hikes Ratings to Ba1 After Town Gas Deal
PG TIME: Members Opt for Voluntary Wind-Up
QING MIAO: Members to Receive Wind-Up Report on April 18
REMEDY HK: Members' Final Meeting Set for April 2
WEMBLEY HONG KONG: Members to Hold Final Meeting on April 3
ZTE CORP: Comtech Signs US$10-Million Optical Solution Deal
I N D I A
JCT ELECTRONICS: Net Loss Soars 33% in 2006 4th Quarter
KOTAK MAHINDRA: Allots 60,533 Shares Under Equity Options Plan
LML LTD: Auditors Comment on 4th Quarter 2006 Financials
NAGARJUNA FERTILIZERS: Fourth Qtr. Profit Down 53% to INR40.5MM
ORIENTAL BANK: Forms Life Insurance JV with Canara Bank & HSBC
ORIENTAL BANK: Gov't. Names S. K. Newlay as New Director
ROYAL & SUN: Posts GBP20-Mln Net Losses in Year Ended Dec. 31
RYERSON INC: James Kackley to Join Board of Directors
SOUTHERN IRON: Shareholders Okay Issuance of 99,00,000 Shares
UTSTARCOM INC: Defers 10-K Filing Due to Financial Restatements
I N D O N E S I A
ALCATEL-LUCENT: Premiers Unified Access to Mobile TV in Germany
ALCATEL-LUCENT: Deploys IPTV Service Solution to TDC A/S
APEXINDO PRATAMA: Pefindo upgrades Ratings from "idA-" to "idA"
ARPENI PRATAMA: Forms JV Company with Hyundai Merchant Marine
BAKRIE SUMATERA: Signs Agreement with Co-Operative Council
BANK MANDIRI: Plans Acquisition of Competitors
BANK MANDIRI: Expects NPL Ratio to Return to Normal in 2007
BANK PERMATA: 6,700 Employees Get Early Retirement Offers
BANK PERMATA: Posts IDR311.5-Billion Net Income in 2006
FAJAR SURYA: Expects 43% Increase in Revenue for 2007
FOSTER WHEELER: Wins Contract for Steam Generators in Korea
GOODYEAR TIRE: Unit Reports US$120 Million in Losses Due to Fire
HANOVER COMPRESSOR: Earns US$86.52-Mil in Year Ended December 31
INDOSAT: Forms Partnership with PT Trikomsel Multimedia-Bisnis
MEDCO ENERGI: Starts Production from Camar and Singa Field
MEDCO ENERGI: Libyan Operations Pay Off
MEDCO ENERGI: Unit Plans to Build Ethanol Plant
METSO OYJ: Cancels 2003 Stock Options
NORTEL NETWORKS: Powers TVA Mobile WiMAX Trial in Brazil
WILLBROS GROUP: Incurs US$105.4 Mil. Net Loss in Full Year 2006
J A P A N
AMERICAN AIRLINES: Earns US$164 Million in Year Ended Dec. 31
FORD MOTOR: In Talks w/ Navistar on Diesel Engine Price Dispute
JAPAN AIRLINES: To Use LOSA To Decrease Human Flight Errors
METHANEX CORP: Board Declares Quarterly Cash Dividend
NIKKO CORDIAL: 3-Way Tie-Up With Citigroup and Mizuho Looms
NORTHWEST AIRLINES: Wants Exclusive Periods Extended to June 29
NORTHWEST AIRLINES: Posts US$30-Mil. Net Loss in December 2006
NORTHWEST AIRLINES: Posts US$349-Mil. Net Loss in January 2007
ON SEMICONDUCTOR: Moody's Rates Amended & Restated Facility Ba1
M A L A Y S I A
LITYAN HOLDINGS: Court Moves Certoriari Hearing to April 12
LITYAN HOLDINGS: Loan Default Amounts to MYR19.12MM in Feb. '07
MBf CORP: Incurs MYR6.34-Mil. Net Loss in Fourth Quarter 2006
OCI BERHAD: Posts MYR4.99MM Net Loss in Quarter Ended Dec. '06
PANGLOBAL BERHAD: Books MYR20.59-Mil. Net Loss in 2006 4th Qtr
PAN MALAYSIAN: Balance Sheet Upside Down by MYR87.5MM at Dec. 31
PARK MAY: Dec. 31 Shareholders' Deficit at MYR57.25 Million
N E W Z E A L A N D
CASTLE SECURITY: Wind-Up Petition Hearing Slated for March 12
CHRISTCHURCH FINANCE: Creditors Must Prove Debts by March 19
CSG PROPERTIES: Faces CIR's Wind-Up Petition
DEPENDABLE STORAGE: CIR Wind-Up Motion Set for Apr. 19 Hearing
EQUITY DEVELOPMENTS: CIR Seeks to Liquidate Company
J & E WILLIAMS: Creditors' Proofs of Claim Due on April 6
JR MEDIA: Canwest Seeks to Liquidate Company
KINGETT MITCHELL: Shareholders Resolve to Liquidate Business
PEEL BACK: High Court to Hear Wind-Up Petition on April 12
SOUTH PACIFIC: High Court to Hear Wind-Up Petition on March 15
STICKY BEAK: High Court to Hear CIR Wind-Up Petition on April 19
TULL HOLDINGS: CIR Seeks to Wind-Up Company
WYONG HOLDINGS: CIR Wants to Wind Up Firm; Hearing Set for May 3
P H I L I P P I N E S
WARNER MUSIC: Pre-Conditional Offer Inadequate, EMI Board Says
* Philippines' Central Bank Maintains Key Policy Rates
S I N G A P O R E
AUDIOPLEX PTE: Pays Dividend to Unsecured Creditors
BENCHMARK ELECTRONICS: Net Earnings Soar to US$111.7-Mil in 2006
FALMAC LIMITED: Profit in 2006 Drops 60.27% to SGD952 Thousand
MINOTAUR INVESTMENTS: Creditors Must Prove Debts by April 2
SAW SPECIALIST: Court Issues Wind-Up Order
SEA CONTAINERS: Wants Court OK to Provide Funding to SC Treasury
TA POCKETHOMES: High Court Hears Wind-Up Petition
TRAD TECHNOLOGY: Pays Preferential Dividend
TRI-MIX PTE: Unsecured Creditors Must Prove Debts by March 16
ZHONGGUO JILONG: Wind-Up Petition Hearing Slated for March 16
T H A I L A N D
ABICO HOLDINGS: Reports Restructuring Progress in 2006
ADVANCED PAINT: Reports THB25.6 Million Annual Net Loss for 2006
DAIMLERCHRYSLER: Offers US$100,000 Buyouts to Shed 13,000 Jobs
DAIMLERCHRYSLER AG: CEO Confirms Proposed SUV Deal with GM
DAIMLERCHRYSLER: CEO Hints Difficulty in Chrysler Piecemeal Sale
FEDERAL-MOGUL: Wants Court OK on Anderson Mem. Settlement Pact
FEDERAL-MOGUL: Earns US$48.3 Million in January 2007
iTV PCL: Directors Resign After PR Department's Takeover
- - - - - - - -
=================
A U S T R A L I A
=================
AMD 350: Commences Liquidation Proceedings
------------------------------------------
The members of AMD 350 Pty Ltd held a general meeting on
Feb. 16, 2007, and resolved to shut down the company's
operations.
In this regard, Riad Tayeh and Antony de Vries were appointed as
liquidators.
The company's Liquidators can be reached at:
Riad Tayeh
Antony de Vries
de Vries Tayeh
c/o Level 3, 95 Macquarie Street
Parramatta, New South Wales 2150
Australia
About AMD 350
Headquartered in New South Wales, Australia, AMD 350 Pty Ltd is
an investor relations company.
AMD HOLDINGS: Taps Antony de Vries & Riad Tayeh as Liquidators
--------------------------------------------------------------
At an extraordinary general meeting held on Feb. 16, 2007, the
members of AMD Holdings Pty Ltd agreed to wind up the company's
operations.
Accordingly, Antony de Vries & Riad Tayeh were appointed as
liquidators.
The Liquidators can be reached at:
Antony de Vries
Riad Tayeh
de Vries Tayeh
c/o Level 3, 95 Macquarie Street
Parramatta, New South Wales 2150
Australia
About AMD Holdings
Headquartered in New South Wales, Australia, AMD Holdings Pty
Ltd is an investor relations company.
CELLSITES INT'L: Liquidator to Give Wind-Up Report on April 10
--------------------------------------------------------------
The members and creditors of Cellsites International Pty Ltd
will have a meeting on April 10, 2007, at 11:30 a.m., to hear
the liquidator's report about the company's wind-up proceedings
and property disposal.
The company's liquidator is:
R. W. Whitton
c/o Lawler Partners
Level 7, 1 Margaret Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 8346 6000
About Cellsites International
Headquartered in New South Wales, Australia, Cellsites
International Pty Ltd provides management-consulting services.
FAIRGILL MANAGEMENT: Members Decide to Wind Up Firm
---------------------------------------------------
On Feb. 16, 2007, the members of Fairgill Management Pty Ltd
held a general meeting and agreed to wind up the company's
operations.
In this regard, Antony de Vries & Riad Tayeh were appointed as
liquidators.
The Liquidators can be reached at:
Antony de Vries
Riad Tayeh
de Vries Tayeh
c/o Level 3, 95 Macquarie Street
Parramatta, New South Wales 2150
Australia
About Fairgill Management
Located in New South Wales, Australia, Fairgill Management Pty
Ltd provides business services.
HIDES CONSULTING: Members and Creditors to Meet on March 29
-----------------------------------------------------------
A final meeting among the members and creditors of Hides
Consulting Group Pty Ltd is slated for March 29, 2007, at
11:00 a.m.
During the meeting, the members and creditors will be asked to:
-- receive the final report on the progress of the
company's liquidation;
-- receive the final account of receipts and payments for
the liquidation; and
-- discuss other business.
The company's liquidator is:
Dino Travaglini
c/o Moore Stephens
Level 3, 12 St Georges Terrace
Perth, Western Australia 6000
Australia
Telephone: 9225 5355
About Hides Consulting
Headquartered in Western Australia, Australia, Hides Consulting
Group Pty Ltd provides business services.
ITRON INC: Ambassador Thomas S. Foley Retires as Director
---------------------------------------------------------
Itron Inc. reported that Ambassador Thomas S. Foley retired from
the Board of Directors of Itron on Feb. 24, 2007. Ambassador
Foley advised the Board that he could not participate fully in
the Board's required attendance and deliberative processes.
Ambassador Foley will, however, become a company's consultant
and will advise on international business matters.
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.
MACDONALD INSURANCE: Members' Final Meeting Set for April 2
-----------------------------------------------------------
MacDonald Insurance Brokers Pty. Limited, which is in voluntary
liquidation, will hold a final meeting for its members on
April 2, 2007, at 10:00 a.m.
During the meeting, the members will receive the liquidator's
report about the company's wind-up proceedings and property
disposal.
The company's liquidator is:
Ruwald & Evans
Level 1, 1 Alfred Street
Sydney
Australia
About MacDonald Insurance
Located in New South Wales, Australia, MacDonald Insurance
Brokers Pty Ltd provides services for insurance agents and
brokers.
NORD RESOURCES: Plantinum Fails to Pay US$2 Mln. Termination Fee
----------------------------------------------------------------
Nord Resources Corporation's chairman of the Board of Directors,
Ronald Hirsch, reported that Platinum Diversified Mining Inc.
failed to pay the US$2 million termination fee in an all-cash
merger transaction with Plantinum Diversified.
In Nord Reources' Notice of Termination dated Feb. 15, 2007, the
company demanded payment of the termination fee before the close
of business on Tuesday, Feb. 20, 2007, and placed Platinum
Diversified on notice that it reserved all of Nord Resources'
rights to pursue Platinum Diversified for damages.
As disclosed by Nord Resources, the delivery of the Notice of
Termination followed a request by Platinum Diversified to re-
negotiate the merger consideration.
Nord Resources is meeting with its legal counsel with the view
to determining what steps it should take to preserve its rights
in this matter.
Headquartered in Dragoon, Arizona, Nord Resources Corporation
(Pink Sheets:NRDS) -- http://www.nordresources.com/-- is a
natural resource company focused on near-term copper production
from its Johnson Camp Mine and the exploration for copper, gold
and silver at its properties in Arizona and New Mexico. The
company also owns approximately 4.4 million shares of Allied
Gold Limited, an Australian company. In addition, the company
maintains a small net profits interest in Sierra Rutile Limited,
a Sierra Leone, West African company that controls the world's
highest-grade natural rutile deposit.
* * *
Nord Resources Corporation's balance sheet at June 30, 2006,
showed US$4,214,657 in total assets and US$8,430,713 in total
liabilities, resulting in a US$4,216,056 stockholders' deficit.
The company had a US$3,120,573 deficit at March 31, 2006.
Going Concern Doubt
Mayer Hoffman McCann PC expressed substantial doubt about Nord's
ability to continue as a going concern after it audited the
company's financial statements for the years ended Dec. 31, 2005
and 2004. The auditing firm pointed to the company's
significant operating losses. Nord incurred a US$3,084,166 net
loss for the year ended Dec. 31, 2005, in contrast to a
US$864,357 net loss in the prior year.
NORSKE SKOGINDUSTRIER: Lars Groholt to Leave Post as Chairman
-------------------------------------------------------------
Norske Skogindustrier ASA's chair of the board, Lars Wilhelm
Groholt, notified Idar Kreutzer, chair of the company's
nomination committee, that he does not wish to seek re-election
at the annual general meeting to be held on April 12.
Mr. Groholt has been chair of Norske Skogindustrier ASA since
2002.
"These five years have seen declining earnings and a challenging
market," Mr. Groholt commented. "The past two years have been
especially demanding for both the board and the executive
management, with many difficult and important decisions for the
company."
A new chief executive and corporate management team were
appointed in 2006, and a substantial turnaround process launched
to reach the company's financial targets.
"I'm confident that the turnaround is well under way, and firmly
believe that the company will reach its goals to the benefit of
shareholders and employees," Mr. Groholt added. "I feel the
time is now ripe to bring in new resources on the board, and
have therefore notified the chair of the nomination committee
that I will not be seeking re-election."
About Norske Skog
Headquartered in Lysaker, Norway, Norske Skogindustrier ASA --
http://www.norskeskog.com/-- manufactures paper and pulp. It
produces long and short fiber sulphate pulp, newsprint, bleached
Kraft paper and others. The Company owns and operates paper
mills in Europe, Asia, Australia, Africa and North and South
America. Norske has posted three consecutive annual net losses
of EUR116.3 million in 2004, EUR315.4 million in 2003, and
EUR849 million in 2002. It has paper mills in Chile and Brazil.
* * *
As of Feb. 14, Norske Skog carries these ratings:
Moody's:
-- Long-Term Corporate Family: Ba1
-- Senior Unsecured Debt: Ba1
-- Outlook: Stable
Standard & Poor's:
-- Long-Term Foreign Issuer Credit: BB+
-- Long-Term Local Issuer Credit: BB+
-- Short-Term Foreign Issuer Credit: B
-- Short-Term Local Issuer Credit: B
-- Outlook: Stable
NRG ENERGY: 2006 Net Income Increases to US$621 Million
-------------------------------------------------------
NRG Energy, Inc., filed its annual financial statements for the
year ended Dec. 31, 2006, with the United States Securities and
Exchange Commission on Feb. 28, 2007.
The company's total operating revenues were US$5.62 billion for
the year ended Dec. 31, 2006, as compared with US$2.43 billion
for the year ended Dec. 31, 2005, an increase of
US$3.19 billion.
Net income for the year 2006 was US$621 million, up from US$84
million for the year 2005.
Cost of operations for 2006 was US$3.27 billion, as compared
with US$1.83 billion for 2005, an increase of US$1.43 billion.
The company's annual depreciation and amortization expense for
2006 and 2005 was US$593 million and US$162 million,
respectively. Its general, administrative and development costs
for 2006 were US$316 million, as compared with US$181 million in
the previous year. General, administrative and development costs
were adversely impacted by US$6 million of costs associated with
the unsolicited acquisition offer by Mirant Corp. and about
US$14 million of NRG Texas integration costs.
Equity earnings from the company's investments in unconsolidated
affiliates were US$60 million for the year ended Dec. 31, 2006,
down from US$104 million for the prior-year.
During 2006, the company sold its interests in James River and
Cadillac, as well as interests in certain Latin American power
funds for a pre-tax loss of US$6 million, a pre-tax gain of
US$11 million, and a pre-tax gain of $3 million, respectively.
Refinancing expenses incurred in 2006 and 2005 were US$187
million and US$65 million, respectively. In the first quarter
2006, the company partially financed the acquisition of Texas
Genco LLC through borrowings under new debt facilities and
repaid and terminated previous debt facilities. As a result of
this financing, it incurred US$178 million of refinancing
expenses.
Interest expense for the year ended Dec. 31, 2006, was US$599
million, as compared with US$184 million for the year ended Dec.
31, 2005. Income tax expense was US$325 million and US$47
million for the years ended Dec. 31, 2006, and 2005,
respectively.
For the years ended Dec. 31, 2006, and 2005, the company
recorded income from discontinued operations, net of income tax
expense of US$66 million and US$12 million, respectively.
The company's balance sheet as of Dec. 31, 2006, showed
US$19.435 billion in total assets, US$13.529 billion in total
liabilities, US$1 million in minority interests, US$247 million
in outstanding convertible perpetual preferred shares, and
US$5.658 billion in total stockholders' equity.
A full-text copy of the company's 2006 annual report is
available for free at http://ResearchArchives.com/t/s?1aa9
About NRG Energy, Inc.
NRG Energy, Inc. (NYSE: NRG) -- http://www.nrgenergy.com/--
presently owns and operates a diverse portfolio of power-
generating facilities, primarily in Texas and the Northeast,
South Central and Western regions of the United States. Its
operations include baseload, intermediate, peaking, and
cogeneration facilities, thermal energy production and energy
resource recovery facilities. NRG also has ownership interests
in generating facilities in Australia and Germany.
* * *
As reported in the Troubled Company Reporter on Nov. 14, 2006,
Fitch Ratings assigned a rating of 'B+/RR3' on NRG Energy's
issuance of US$1.1 billion senior notes due 2011.
As reported in the Troubled Company Reporter on Nov. 9, 2006,
Standard & Poor's Rating Services affirmed its 'B+' corporate
credit on NRG Energy Inc. S&P says the outlook is stable.
As reported in the Troubled Company Reporter on Nov. 7, 2006,
Moody's Investors Service affirmed NRG Energy Inc.'s Preferred
stock rating at B2, LGD 6, 98%, and assigned a B1 rating to
US$1.1 billion of senior unsecured notes (LGD 5, 77%).
PACIFIC EXPLOSIVES: To Declare Dividend on March 15
---------------------------------------------------
Pacific Explosives Pty Ltd, which is subject to a deed of
company arrangement, will declare a dividend on March 15, 2007.
Creditors who were not able to prove their debts by March 1,
2007, will be excluded from the company's dividend distribution.
The company's deed administrator can be reached at:
Raj Khatri
Worrells Solvency & Forensic Accountants
8th Floor, 102 Adelaide Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3225 4333
Facsimile:(07) 3225 4311
Web site: http://www.worrells.net.au/
About Pacific Explosives
Located in Queensland, Australia, Pacific Explosives Pty Ltd is
a distributor of durable goods.
PASDONNAY PTY: To Hold Joint Meeting on March 28
------------------------------------------------
The members and creditors of Pasdonnay Pty Ltd will hold a joint
meeting on March 28, 2007, at 10:30 a.m., to receive 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 went into liquidation on Aug. 5, 2005.
The company's liquidator can be reached at:
K. A. Strickland
SimsPartners
Level 12, Dwyer Durack House
40 St George's Terrace
Perth, Western Australia 6000
Australia
About Pasdonnay Pty
Headquartered in Western Australia, Australia, Pasdonnay Pty Ltd
is a distributor of general industrial machinery and equipment.
POLYPORE INT'L: Moody's Affirms Junk Rtg. on Sr. Discount Notes
---------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Polypore
International, Inc., and the ratings of Polypore, Inc.:
-- corporate family rating, B3;
-- guaranteed senior secured credit facilities, Ba3;
-- guaranteed senior subordinated notes, Caa1; and
-- unguaranteed senior discount notes, Caa2.
The outlook is changed to stable from negative.
The ratings continue to reflect the company's high leverage and
weak interest coverage metrics which are consistent with a low
speculative grade rating.
However, in changing the rating outlook, Moody's recognizes the
actions that the company has taken to stabilize performance and
enhance future earnings and cash flow. During the past year
Polypore has successfully applied focused sales efforts, cost
saving initiatives, and select price increases to improve
performance in its energy business.
At the same time, Polypore has restructured its healthcare
business, exiting cellulosic membrane production and increasing
volumes in its synthetic membranes business; actions which
should stem losses from the healthcare sector. The stable
rating outlook also reflects Moody's view that Polypore's
liquidity profile should provide the company with sufficient
financial flexibility to continue to implement its turnaround
initiatives.
These ratings were affirmed:
* Polypore International, Inc.
-- B3 Corporate Family rating;
-- B3 Probability of Default rating;
-- Caa2 rating for the $300 million of 10.5% unguaranteed
senior discount notes due October 2012, with LGD
assessment modified to LGD6, 91% from LGD6, 90%;
* Polypore, Inc.
-- Ba3 ratingfor the guaranteed senior secured credit
facilities, with LGD assessment unchanged;
-- Caa1 rating for the U.S. Dollar guaranteed senior
subordinated notes due May 2012, with LGD assessment
modified to LGD4, 65% from LGD4, 61%; and
-- Caa1 rating for the Euro guaranteed senior subordinated
notes due May 2012, with LGD assessment modified to
LGD4, 65% from LGD4, 61%.
The last rating action was on Sept. 22, 2006 when the LGD
Methodology was applied.
Using Moody's standard adjustments for the last twelve months
ended Sept. 30, 2006, Polypore's consolidated total debt/EBITDA
leverage approximated 8.3x, inclusive of the holding company
discount notes. EBIT coverage of cash interest was 1.1x, and
free cash flow was approximately US$35MM for the LTM period.
However, the company's interest coverage is enhanced by the fact
that a portion of interest expense is non-cash, and the
company's free cash flow further benefits from its relatively
modest ratio of CAPEX to depreciation.
Moody's believes that in order to more comfortably service its
significant debt burden and support a higher level of
reinvestment in the business, Polypore will need to demonstrate
improved revenue growth and sustained margin improvement. The
restructuring actions taken over the course of the past year
should help in this regard and support the stable outlook for
the B3 rating.
Polypore maintains a US$90 million revolving credit facility
under which there were no borrowings at Sept. 30, 2006. The
financial covenants under the senior secured facilities should
provide sufficient cushion for the company to access the full
revolving credit in the near-term. The company also maintained
US$64 million of cash on hand.
Future events that could potentially improve Polypore's ratings
or outlook include: improving revenues and operating margins
through organic growth and improved free cash flow generation
that facilitates debt reduction. Consideration for a higher
outlook or rating could arise if any combination of these
factors were to increase EBIT/Interest coverage to over 1.25x or
reduce leverage below 6.0x.
Future events that could result in a reduction in the rating or
outlook include: sustained erosion of revenues or margins, or
inability to sustain free cash flow generation as the company
increases in level of business reinvestment. Acquisitions or
business investments, as well as any incremental returns of
capital to investors, that increase debt or delay debt reduction
would also adversely affect the rating. Consideration for a
lower rating could arise if any combination of these factors
results in increasing leverage, EBIT/cash interest coverage
below 1.0x, or deteriorating liquidity.
Polypore International Inc. -- http://www.polypore.net/-- is a
worldwide developer, manufacturer and marketer of highly
specialized polymer-based membranes used in separation and
filtration processes. Polypore's products and technologies
target specialized applications and markets that require the
removal or separation of various materials from liquids, with
concentration in the ultrafiltration and microfiltration
markets. As a global provider, Polypore has manufacturing
facilities or sales offices in ten countries serving five
continents. Polypore's corporate offices are located in
Charlotte, NC. The company has operations in Australia and
China.
REALOGY CORP: Moody's Rates Proposed US$4.27-B Facility at Ba3
--------------------------------------------------------------
Moody's Investors Service assigned a provisional corporate
family rating of B3 in connection with the pending leveraged
buyout of Realogy Corporation. Moody's concurrently assigned a
Ba3 rating to the proposed US$4.27 billion senior secured credit
facility, which along with senior unsecured and subordinated
indebtedness, will be used to finance the leveraged buyout.
The B3 Corporate Family Rating of Realogy reflects weak pro
forma financial strength and profitability metrics, Moody's
expectation of continued softness in the residential real estate
market in the intermediate term and minimal business line
diversification. The ratings are supported by leading market
positions, strong brands and long term growth fundamentals for
the existing home segment of the residential real estate
industry.
The US$4.27 billion senior secured credit facility consists of
-- a US$1.45 billion term loan facility;
-- a US$1.22 billion delayed draw term loan facility;
-- a US$750 million revolving credit facility; and
-- an US$850 million synthetic letter of credit facility.
The provisional ratings will be converted to definitive ratings
upon the closing of the transaction. The rating outlook for
Realogy is stable.
On Dec. 19, 2006, Moody's placed the Baa2 senior unsecured note
ratings of Realogy Corporation on review for possible downgrade
following its disclosure that it had entered into a definitive
agreement to be acquired by an affiliate of Apollo Management,
L.P. The buyout is expected to be financed with a
US$1.45 billion term loan facility, US$220 million of initial
borrowings under a US$750 million revolving credit facility,
US$2 billion of senior unsecured cash pay notes, US$750 million
of senior unsecured PIK toggle notes, US$900 million of senior
subordinated notes and an equity contribution of US$2.0 billion.
Consummation of the merger is not subject to a financing
condition, but is subject to other conditions, including receipt
of the affirmative vote of the holders of a majority of the
outstanding shares of Realogy, insurance regulatory approvals,
and other customary closing conditions. The buyout is expected
to close in April 2007.
The US$1.22 billion delayed draw term loan facility may be used
to redeem up to US$1.2 billion of existing fixed and floating
rate senior unsecured notes of Realogy to the extent put to the
Company after a ratings downgrade to non investment grade and
change of control. Of the US$1.2 billion delayed draw facility,
US$970 million will be available through July 31, 2007 and can
be used to complete any change of control offers with respect to
the existing senior notes. The remaining US$250 million will be
available through Oct. 31, 2007 and may be used to complete any
change of control offers or to fund the redemption of the
US$250 million of existing floating rate notes once their par
call period commences on Oct. 22, 2007.
The indenture governing the existing senior notes provide that
if Realogy experiences a change of control and the ratings on
the notes are lowered to non-investment grade by each rating
agency within 60 days after the change in control, the company
will be required to offer to purchase the notes at 100% of their
principal amount, plus accrued and unpaid interest. Upon
closing of the buyout, the existing senior notes of Realogy will
become secured in accordance with the terms of the indenture and
will rank pari passu with the new secured bank facilities of the
company. If the company obtains shareholder approval for the
adoption of the merger agreement, Moody's will conclude its
review for possible downgrade and lower the ratings on the
existing senior notes to Ba3. The Ba3 rating would reflect the
notes expected priority position in the post-acquisition capital
structure and the significant amount of junior ranking debt and
non-debt obligations.
Moody's affirmed the Baa2 ratings on the existing
US$1.65 billion senior unsecured credit facility since the
rating agency expects this debt to be repaid in connection with
the closing of the transaction. Moody's will withdraw the
senior unsecured credit facility ratings upon closing of the
transaction.
These ratings were assigned:
* Realogy Corp.
-- US$750 million 6 year secured revolving credit
facility, Ba3, LGD2, 19%
-- US$1.45 billion 7.5 year secured term loan, Ba3, LGD2,
19%
-- US$1.22 billion 7.5 year delayed draw term loan
facility, Ba3, LGD2, 19%
-- US$850 million 7.5 year secured synthetic letter of
credit facility, Ba3, LGD2, 19%
-- Corporate family rating, B3
-- Probability of Default rating, B3
The above ratings are subject to Moody's review of final
documentation.
These ratings remain on review for downgrade:
* Realogy Corp.
-- US$250 million floating rate senior unsecured notes due
2009, Baa2
-- US$450 million senior unsecured notes due 2011, Baa2
-- US$500 million senior unsecured notes due 2016, Baa2
-- Senior unsecured issuer rating, Baa2
Affirmed:
-- US$1.05 billion senior unsecured revolving credit
facility
due 2011, Baa2
-- US$600 million senior unsecured term loan facility due
2011, Baa2
Headquartered in Parsippany, N.J., Realogy Corporation (NYSE:H)
-- http://www.realogy.com/-- is real estate franchisor and a
member of the S&P 500. The company has a diversified business
model that also includes real estate brokerage, relocation, and
title services. Realogy's world-renowned brands and business
units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker
Commercial(R), ERA(R), Sotheby's International Realty(R), NRT
Incorporated, Cartus, and Title Resource Group. Realogy has
more than 15,000 employees worldwide. The company operates in
Australia, Brazil and France.
SAMPSON PROPERTIES: Final Meeting Slated for March 28
-----------------------------------------------------
The members and creditors of Sampson Properties Pty Ltd will
hold a final meeting on March 28, 2007, at 10:00 a.m., to
receive the liquidator's wind-up report and property disposal.
The company's liquidator is:
Anthony Matthews
Anthony Matthews & Associates
Chartered Accountants
Ground Floor, 91 Hutt Street
Adelaide, South Australia 5000
Australia
Telephone:(08) 8232 8885
Facsimile:(08) 8232 8886
e-mail: info@matthewsassociates.com.au
About Sampson Properties
Sampson Properties Pty Ltd is a land subdivider and developer,
except for cemeteries. The company is located in South
Australia, Australia.
ZEINA NOMINEES: Liquidators Present Wind-Up Report
--------------------------------------------------
Zeina Nominees Pty Ltd held a meeting for its members and
creditors on Feb. 26, 2007.
At the meeting, Zeina's appointed liquidators, V. R. Dye and N.
Giasoumi, presented the company's wind-up report and property
disposal.
The Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road, Hawthorn East 3123
Australia
About Zeina Nominees
Zeina Nominees Pty Ltd operates miscellaneous general
merchandise stores. The company is located in Victoria,
Australia.
================================
C H I N A & H O N G K O N G
================================
BANK OF COMMUNICATIONS: Expects Mainland Listing by July
--------------------------------------------------------
Bank of Communications expects to list A-shares in Shanghai by
July, AFX News Limited reports.
The report, citing Bank of Communication Chairman Jiang
Chaoliang, relates that work towards the listing is progressing
smoothly and that the bank is currently awaiting regulatory
approval.
According to Mr. Jiang, a listing in the mainland will enable
the bank to seize the opportunities presented by China's fast-
growing economy better and create more value for shareholders,
as well as resolve the issue of non-tradable shares, AFX notes.
The pricing will be done based on market conditions as it is not
possible to price the IPO in line with the bank's current H-
share price in Hong Kong, Mr. Jiang explained.
Mr. Jiang also told AFX that after the A-share listing, China's
finance ministry and HSBC will remain the bank's first and
second largest shareholders. HSBC, which currently owns 19.9%
stake in Bank of Communications, can exercise its anti-dilution
right, he said.
As reported by the Troubled Company Reporter - Asia Pacific on
March 8, 2007, HSBC is in talks with the Chinese Government and
Bank of Communications to maintain its 19.9% stake after the
planned A-share listing of the bank.
Mr. Jiang said that he expects HSBC to make appropriate
arrangements and coordinate with relevant regulatory authorities
in China regarding its shareholdings in Bank of Communications
amid the A-share listing.
* * *
Bank of Communications Co Ltd --
http://www.bankcomm.com/jh/en/index.jsp-- is a commercial bank
in the People's Republic of China. As of December 31, 2005, the
bank had 137 branches and sub-branches, in addition, to over
2,600 business outlets in China. It also has its branches in
Hong Kong, New York, Tokyo, Singapore and Seoul.
The bank's business is divided into four segments: corporate
banking, retail banking, treasury and others. Its corporate
banking business provides products and services to the corporate
customers, such as loans, deposits, bill discounting, trade
finance, fund custody and guarantees. The retail banking
business provides retail banking products and services to its
retail customers, such as deposits, mortgage loans, debit cards,
credit cards, wealth management and foreign exchange trading
services. The treasury operations include inter-bank money
market transactions, foreign exchange trading and government,
and finance bond trading and investment.
The bank carries Fitch Rating's 'D' individual rating effective
on November 21, 2005.
BANK OF COMMUNICATIONS: 2006 Net Profit Rises 32.7% to CNY12BB
--------------------------------------------------------------
China's Bank of Communications announced a 32.7% year-on-year
rise in net profits to CNY12.27 billion in 2006, Xihua News
reports, citing the company's recent financial statement.
Based on the bank's annual business report for 2006, its total
assets reached CNY1.72 trillion, up 20.8% compared with the same
period in 2005.
The earnings per share were CNY0.27, a 22.7% rise over 2005, the
report say.
About 80% of the bank's yuan loan business was carried out in
the Yangtze River Delta in eastern China and the Pearl River
Delta in southern China, BoComm's report said.
In addition, the bank also strengthened cooperation with Hong
Kong and Shanghai Banking Corporation last year in 93 programs
involving human resources and corporate management, the paper
relates.
Xinhua recounts that HSBC acquired a 19.9% stake in Bank of
Communications by investing nearly US$2.2 billion.
* * *
Bank of Communications Co Ltd --
http://www.bankcomm.com/jh/en/index.jsp-- is a commercial bank
in the People's Republic of China. As of December 31, 2005, the
bank had 137 branches and sub-branches, in addition, to over
2,600 business outlets in China. It also has its branches in
Hong Kong, New York, Tokyo, Singapore and Seoul.
The bank's business is divided into four segments: corporate
banking, retail banking, treasury and others. Its corporate
banking business provides products and services to the corporate
customers, such as loans, deposits, bill discounting, trade
finance, fund custody and guarantees. The retail banking
business provides retail banking products and services to its
retail customers, such as deposits, mortgage loans, debit cards,
credit cards, wealth management and foreign exchange trading
services. The treasury operations include inter-bank money
market transactions, foreign exchange trading and government,
and finance bond trading and investment.
The bank carries Fitch Rating's 'D' individual rating effective
on November 21, 2005.
CENTURY ASIA: Annual Meetings Slated for March 15
-------------------------------------------------
Century Asia Enterprises Limited, which is in creditors'
voluntary liquidation, will hold the annual meetings for its
members and creditors on March 15, 2007, at 9:30 a.m. and
10:00 a.m., respectively, at the 5th Floor, Ho Lee Commercial
Building, 38-44 D'Aguilar Street in Central, Hong Kong.
FUYAO GLASS: Strong Sales Hike '06 Net Profit by 55% to CNY607MM
----------------------------------------------------------------
Fuyao Group Glass Industries Co Ltd's net profit in 2006 rose
55.01% to CNY607.22 million, boosted by strong sales, CNN Money
reports, citing the company's annual report filed with the
Shanghai Stock Exchange.
According to the company's report, it recorded CNY3.88 billion
of revenues in 2006, up 33.42%, with about 75% derived from the
sales of windshields and the rest from the sales of float glass,
which is mainly used in buildings.
However, the gross profit margin for windshields narrowed to
36.57% from 37.6% and the margin for float glass was 16.84%, up
from 8.66% in 2005, CNN relates.
Earnings per share surged to CNY0.61 from CNY0.39.
The company said income from the international original
equipment manufacturer business surged 103.18% in 2006, adding
that it plans to expand these operations in 2007.
Assets totaled CNY7.51 billion at the end of 2006 against
CNY6.55 billion a year earlier.
* * *
Headquartered in Fuqing, Fujian Province, Fuyao Group Glass
Industries Co., Ltd. -- http://www.fuyaogroup.com/-- is a
manufacturer of automotive and industrial safety glass. The
company provides laminated and tempered glass for automobiles,
encapsulation products, bulletproof glass, laminated and
tempered glass for buildings, furniture and decorative glass
products, front panel glass for electrical appliances and panel
glass for other specialty industrial applications. The Company
has seven production bases in the People's Republic of China and
two wholly owned subsidiaries in the United States. FYG mainly
exports to North America and Asia Pacific.
Xinhua Far East China Ratings gave the company a BB+ issuer
credit rating on June 29, 2005.
HONG KONG BUS: Members & Creditors Meeting Set for March 15
-------------------------------------------------------------
The members and creditors of Hong Kong Bus Company Limited --
under creditors' voluntary liquidation -- will hold their annual
meetings on March 15, 2007, at 10:30 a.m. and 11:00 a.m.,
respectively, at 5th Floor, Ho Lee Commercial Building, 38-44
D'Aguilar Street in Central, Hong Kong.
PANVA GAS: Moody's Hikes Ratings to Ba1 After Town Gas Deal
-----------------------------------------------------------
Moody's Investors Service, on March 8, 2007, has upgraded Panva
Gas Holdings' corporate family rating and senior unsecured bond
rating to Ba1 from Ba2. This concludes the review for possible
upgrade, which began on December 4, 2006.
The outlook for both ratings is positive.
The decision follows the completion of the transaction between
Panva and Towngas, whereby Towngas became Panva's major
shareholder with 44% ownership.
"The upgrade has been prompted by Moody's assessment of the
likelihood of the strong financial and operational support Panva
will receive from Towngas as its largest shareholder," says
Jennifer Wong, Moody's lead analyst for Panva.
"Going forward, it is also likely that Panva will become
increasingly integrated into the Towngas group, as evidenced by
various management and board appointments which have already
taken place," she says.
Moody's had previously expressed concerns about the
effectiveness of Panva's risk management practices. However,
because Towngas now holds effective management control, Moody's
expects a strengthening in corporate governance standards and
risk control practices. Towngas has appointed 4 out of 10
members of the board of directors, with Alfred Chan, Towngas
Managing Director, becoming Panva Chairman.
The financial impact of the transaction on Panva is minimal as
only 3 of the 10 Towngas projects will be consolidated.
Furthermore, they are small in scale when compared to Panva's
existing portfolio, and will show limited contributions to
revenue and cash flow in the near term. Nevertheless, Moody's
expects improvements in Panva's capital structure as the
acquisition is majority equity funded.
The outlook for the ratings is positive, reflecting Moody's
expectation that Panva will benefit from its collaboration and
integration with Towngas on future China projects. At the same
time, Panva will likely see improvements in the next 12 months
in both its risk management practices and in its financial
policies.
Upward rating pressure will evolve with evidence of: ongoing
support from Towngas, such as allowing Panva to play an
important role as a platform for its China operations; providing
funding support to Panva; and/or Towngas increasing its
ownership of Panva, especially to majority control.
At the same time, Panva will need to demonstrate financial
stability through growing its cash flow from piped gas sales and
new projects. The company would also need to improve its overall
EBITDA margins without materially increasing its leverage; or it
would have to permanently de-leverage to improve its balance
sheet strength.
On the other hand, the rating is sensitive to changes in Moody's
assessment of operational and financial support from Towngas.
Accordingly, downward rating pressure would emerge if Towngas'
ownership level falls, which Moody's does not expect to occur in
the near term; or if there is evidence that Towngas is not
providing the expected level of support.
Furthermore, the rating may experience downward pressure if
Panva is unable to achieve its expected growth and returns, or
if regulatory changes negatively affecting its cash-generating
ability occur. The key credit metrics that Moody's would
consider for a rating downgrade include Adjusted FFO/Interest
below 2.0x.
Panva Gas, listed on the Hong Kong Stock Exchange, is primarily
engaged in the downstream sale 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.
PG TIME: Members Opt for Voluntary Wind-Up
------------------------------------------
At an extraordinary general meeting held on Feb. 24, 2007, the
members of PG Time Limited decided to voluntarily wind up the
company's operations.
In this regard, Von Burg, George Josef, was appointed as
liquidator for the company.
The Liquidator can be reached at:
Von Burg, George Josef
House 4, Lot 1508 DD 243
10 Pik Sha Road
The Riviera, Sai Kung
Hong Kong
QING MIAO: Members to Receive Wind-Up Report on April 18
--------------------------------------------------------
Qing Miao Poetry Association Limited, which is in members'
voluntary wind-up, will hold a meeting for its members on
April 18, 2007, at 10:00 a.m., at Units C & D, 9/F., Neich
Tower, 128 Gloucester Road in Wanchai, Hong Kong.
During the meeting, the members will hear the liquidator's
report about the company's wind-up proceedings and property
disposal.
REMEDY HK: Members' Final Meeting Set for April 2
-------------------------------------------------
The members of Remedy HK Limited will hold a final meeting on
April 2, 2007, at 10:00 a.m., at the 8th Floor, Gloucester
Tower, The Landmark in 15 Queen's Road Central, Hong Kong.
At the meeting, the liquidator will present a report about the
company's wind-up proceedings and property disposal.
WEMBLEY HONG KONG: Members to Hold Final Meeting on April 3
-----------------------------------------------------------
The members of Wembley Hong Kong Limited will hold a final
meeting on April 3, 2007, at 3:00 p.m., to hear the liquidator's
report about the company's wind-up proceedings and property
disposal.
The company's liquidator is:
Edward Middleton
8/F, Prince's Building
10 Chater Road, Central
Hong Kong
ZTE CORP: Comtech Signs US$10-Million Optical Solution Deal
-----------------------------------------------------------
Comtech Group, Inc., has signed a US$10-million deal to provide
optical module solutions to ZTE Corporation, PR Newswire
reports.
Under the terms of the agreement, Comtech will supply cutting
edge optical module solutions to ZTE Corporation, starting from
this quarter, with shipments scheduled to be completed by 2007,
PRN relates.
Jeffrey Kang, President & Chief Executive Officer of Comtech
Group, Inc., said, "ZTE has been a client of ours for many years
now, and we are delighted that we have expanded our long term
partnership with this deal."
The signing of the contract also increased the presence of
Comtech in China, particularly in the telecom industry, Mr. Kang
added.
* * *
Headquartered in Shenzhen, China, ZTE Corp's --
http://www.zte.com.cn/-- principal activities are the
production and sale of general system and communication terminal
equipments.
The group operates both in the domestic and international
market.
The Troubled Company Reporter - Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. Long-term foreign
and local currency Issuer Default ratings of 'BB+'. The rating
outlook is stable.
=========
I N D I A
=========
JCT ELECTRONICS: Net Loss Soars 33% in 2006 4th Quarter
-------------------------------------------------------
JCT Electronics Ltd's net loss soared 33% to INR565.4 million in
the quarter ended Dec. 31, 2006, from the INR426.3-million net
loss incurred in the corresponding quarter in 2005.
JCT Electronics' revenues slid 4% from INR625.9 million total
income booked in the fourth quarter of 2005 to INR598.2 million
in the December 2006 quarter.
The company posted operating expenditures totaling
INR693.5 million in the December 2006 quarter, resulting in an
operating loss of INR95.3 million.
For the quarter under review, the company recorded interest
charges of INR361.6 million, depreciation of INR107.8 million
and provision for taxes of INR0.7 million.
A copy of the company's financial results for the quarter ended
Dec. 31, 2006, is available for free at the Bombay Stock
Exchange http://ResearchArchives.com/t/s?1b0c
JCT Electronics Ltd. manufactures color picture and black &
white tubes for television sets. The company also manufactures
cathode ray tubes and gas discharge tubes.
JCT Electronics incurred net losses for at least two consecutive
years -- INR1.64 billion in the fiscal year ending March 31,
2005, and INR1.98 billion in the year ending March 31, 2006. As
of March 31, 2006, the company posted a shareholders equity
deficit of INR7.40 billion.
India's Board for Industrial and Financial Reconstruction has
circulated a rehabilitation scheme to JCT's lenders for
consideration.
KOTAK MAHINDRA: Allots 60,533 Shares Under Equity Options Plan
--------------------------------------------------------------
Kotak Mahindra Bank Ltd has allotted 60,533 equity shares of
INR10 each pursuant to the exercise of stock options granted
under the Kotak Mahindra Equity Options Plan 2002-03:
Plan Series Equity Shares
----------- -------------
2002-03/05 1,875
2002-03/06: 58,658
The bank issued the shares through its ESOP Allotment Committee
at a meeting held March 2, 2007.
Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank. The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services. Corporate Centre segment includes
strategic investment and activities. Car Finance segment offers
car financing. Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization. Investment
Banking segment includes advisory and transactional services
providing financial advisory services. Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits. Insurance segment offers life
insurance. Others segment includes forex broking, asset
management services and others.
On Jan. 19, 2007, Fitch assigned a 'C/D' Individual
rating to Kotak Mahindra Bank Ltd. and affirmed the bank's
support rating at '5'.
LML LTD: Auditors Comment on 4th Quarter 2006 Financials
--------------------------------------------------------
In the limited review report of LML Ltd for the quarter ended
Dec. 31, 2006, the company's auditors notes, among others, that
the company's accounts are prepared on a going concern basis.
The auditors, however, pointed out that LML Ltd has become a
sick industrial company due to the erosion of its entire net
worth and that it has made a reference to the Board for
Industrial and Financial Reconstruction.
"Due to these factors and also the lockout of the factory due to
strike of its workmen from March 7, 2006, which is still
continuing, the Company's ability to continue, as a going
concern may be dependent upon successful resolution of these
matters/issues," the auditors state.
In case the going concern concept is vitiated, necessary
adjustments will be required on the carrying amount of assets
and liabilities, which are not ascertainable, the auditors add.
Because the lockout is still continuing and adjustment or
provision, if any, required for claims and dues of workers has
not been ascertained, the auditors were unable to express any
opinion as to the lockout's effect on the company's accounts for
the quarter under ended Dec. 31, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
March 2, 2007, the company recorded a net loss of
INR144.5 million in the fourth quarter of 2006.
Headquartered in Kanpur, India, LML Limited manufactures
scooters and motorcycles. The LML NV, manufactured with
Piaggio, is a scooter that is loaded with features such as a
large taillight, cushioned backrest, improved handlebar design
and speedometer, a utility box and a large glove compartment.
The Company's motorcycles, which are made in collaboration with
Daelim of Korea, feature a three-valve, 109-cubic centimeter
engine, a long wheelbase and broad tires. The Energy FX model
features a four-speed gearbox, while the Adreno FX sports a
five-speed unit. The bikes come in a large variety of colors
offer other features such as disc brakes and electronic
ignition.
As reported in the Troubled Company Reporter - Asia Pacific, LML
disclosed that its board of directors, at a meeting on Sept. 8,
2006, decided that LML has become a sick industrial company
under the Sick Industrial Companies (Special Provisions Act)
1985. The company is currently working for the restructuring of
its business, which includes the possibility of a strategic or
financial partnership.
For the 18 months ended Sept. 30, 2006, LML posted a net loss of
INR2.45 billion, INR44.3 per share. The company says operations
have been severely effected due to illegal strike by its workmen
that resulted in a lockout on March 7, 2006, which is still
continuing.
NAGARJUNA FERTILIZERS: Fourth Qtr. Profit Down 53% to INR40.5MM
---------------------------------------------------------------
Nagarjuna Fertilizers & Chemicals Ltd. recorded a net profit of
INR40.5 million in the quarter ended Dec. 31, 2006, 53% less
than the INR86.8 million profit booked in the corresponding
period in 2005.
The company's revenues, however, increased from the
INR4.29 billion booked in the quarter ended Dec. 31, 2005, to
INR4.91 billion total income in the December 2006 quarter.
Along with the increased revenues, comes the boost in expenses.
The company's operating expenses leaped to INR4.15 billion in
the December 2006 quarter from INR3.63 billion in the December
2005 quarter.
The company explained that what really brought the figures down
is the provision for taxes. In the quarter ended Dec. 31, 2005,
the company booked net deferred tax debit of INR45.6 million
while in the December 2006 quarter it posted a net deferred tax
credit of INR(25.3) million.
A copy of the company's financial statements for the quarter
ended Dec. 31, 2006, is available for free at the Bombay Stock
Exchange at http://ResearchArchives.com/t/s?1b15
Headquartered in Andhra Pradesh, India, Nagarjuna Fertilizers &
Chemicals Ltd. -- http://www.nagarjunafertilizers.com/--
manufactures and distributes ammonia, urea and several plant
protection products that consist of herbicides, insecticides and
fungicides. The Company also sells fertilizers, seeds and
provides assistance of cultivation practices, pest control and
planting destiny.
Credit Analysis and Research Limited gave the company Senior
Unsecured Debt and Fixed Deposit 'D' ratings.
ORIENTAL BANK: Forms Life Insurance JV with Canara Bank & HSBC
--------------------------------------------------------------
Oriental Bank of Commerce, Canara Bank and HSBC Insurance (Asia-
Pacific) Holdings Ltd, on March 5, 2007, signed a non-binding
Memorandum of Understanding to jointly establish a life
insurance company in India.
The new company will have exclusive access to the customer bases
of both of the State-owned banks, Canara and OBC, and of HSBC in
India. This comprises more than 40 million people and a
nationwide network of 3,600 branches. This formidable
distribution capability will be used by the Company to become a
significant player in the country's rapidly expanding life
insurance industry.
Under the proposed agreement, Canara Bank will take a 51% stake
in the new Company, HSBC a 26% interest and OBC the remaining
23%. The new life insurance company will be capitalised at
INR3250 million (approximately US$73 million), of which HSBC
will contribute INR1770 million (approximately US$40 million),
Canara Bank INR1,020 million (approximately US$23 million), and
OBC INR460 million (approximately US$10 million).
Under the terms of the agreement, HSBC will provide a range of
management services, which may include providing executives for
senior roles.
Life insurance premiums in India grew at an annual rate of 21%
in the six years following the opening of the market to private
players in 1999, exceeding US$20 billion in 2005. From April to
November 2006, new life insurance premiums grew by 155%,
according to the Business figures released by India's insurance
Regulatory and Development Authority. However, with a
penetration rate of only 2.5% in 2005, India's nascent life
insurance market has considerable long-term growth potential.
The signing of MoU on March 5, 2007, to promote a Life Insurance
Company with HSBC Insurance and OBC marks a significant step
forward for Canara Bank in terms of creating and delivering
value added insurance products not only to the existing
customers but also to the customers and prospects of the Bank's
partner institutions. By collaborating with HSBC, OBC will be
in a position to bring the best of international insurance
products to the fast growing Indian markets.
On the occasion Shri. Prithviraj said that OBC has a strong
presence in rural and semiurban areas of northern India with pan
India presence at all important centres with 1350 branches and
extension counters. The 14,500 work force is dedicated and
committed to explore new business activities. Around 950
employees are already handling life and general Insurance
business for three years now. As a part of proposed JV for life
OBC will augment the revenue stream on two counts viz., return
on equity after breakeven of and commission from premium
mobilized.
Since OBC understands needs of local populace in the command
area, launch of tailor made customer friendly Life Insurance
Products will enable the partners to gamer relatively higher
business levels. OBC will help formulation of products for
Inclusive Growth for the needy sector of the society, so as to
extend the Social Security net to the deserving.
Completion of the transaction is subject to various conditions
including obtaining regulatory and other approvals and agreeing
final terms among the partners.
Headquartered in New Delhi, India, Oriental Bank of Commerce --
http://www.obcindia.com/-- is a scheduled commercial bank. The
company's domestic services include deposits, comprised of term
deposits, savings accounts, current accounts and the Suvidha
deposit scheme; advances, which consist of corporate advances, a
range of retail credit products and specialty schemes, and
government business, comprised of direct tax collection, pension
disbursement and savings bonds. It also provides non-resident
Indian banking solutions, including non-resident external
accounts, non-resident ordinary accounts, foreign currency non-
resident accounts and resident foreign currency accounts. It
also offers debit card services. The bank also provides
treasury services and merchant banking services.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Aug. 21, 2006, that Fitch Ratings assigned a long-term foreign
currency issuer default rating of BB+ to Oriental Bank of
Commerce. The Bank's individual and support ratings have been
affirmed at C/D and 4, respectively. The outlook on the ratings
is stable.
ORIENTAL BANK: Gov't. Names S. K. Newlay as New Director
--------------------------------------------------------
The Government of India, pursuant to a notice dated Feb. 27,
2007, named S. K. Newlay, Reserve Bank of India Nominee, as
director to Oriental Bank of Commerce's board, the bank informs
the Bombay Stock Exchange in a regulatory filing.
The bank further informs the Bombay Stock Exchange of the
retirement of three of the bank shareholders' directors with
effect from March 2, 2007:
-- G. R. Sundaravadival,
-- V. R. Galkar, and
-- T. R. Krishnakumar Rao.
Headquartered in New Delhi, India, Oriental Bank of Commerce --
http://www.obcindia.com/-- is a scheduled commercial bank. The
company's domestic services include deposits, comprised of term
deposits, savings accounts, current accounts and the Suvidha
deposit scheme; advances, which consist of corporate advances, a
range of retail credit products and specialty schemes, and
government business, comprised of direct tax collection, pension
disbursement and savings bonds. It also provides non-resident
Indian banking solutions, including non-resident external
accounts, non-resident ordinary accounts, foreign currency non-
resident accounts and resident foreign currency accounts. It
also offers debit card services. The bank also provides
treasury services and merchant banking services.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Aug. 21, 2006, that Fitch Ratings assigned a long-term foreign
currency issuer default rating of BB+ to Oriental Bank of
Commerce. The Bank's individual and support ratings have been
affirmed at C/D and 4, respectively. The outlook on the ratings
is stable.
ROYAL & SUN: Posts GBP20-Mln Net Losses in Year Ended Dec. 31
-------------------------------------------------------------
Royal & Sun Alliance Insurance Group plc released its financial
results for the year ended Dec. 31, 2006.
Royal & Sun posted GBP20 million in net losses against
GBP5.5 billion in net written premiums for the year ended
Dec. 31, 2006, compared with GBP605 million in net profit
against GBP5.3 billion in net written premiums for the same
period in 2005.
At Dec. 31, 2006, the Group's balance sheet showed
GBP22.6 billion in total assets, GBP19.8 billion in total
liabilities, resulting in a GBP2.9 billion stockholders' equity.
"It has been a good twelve months for the Group," Andy Haste,
Group CEO of Royal & Sun Alliance Insurance Group plc,
commented. "We have achieved another strong performance with an
18% increase in the underwriting result and continued delivery
against our strategic objectives. The completion of our US
disposal resolves the Group's last remaining legacy issue. Our
portfolio of businesses is strong, we are growing profitably in
our target trades and we are well positioned to continue
delivering sustainable profitable performance. As it stands
today, we expect the Group to deliver a combined operating ratio
of better than 95% for 2007."
"As a reflection of our confidence in the earnings of the Group
and our capital strength, we are announcing a 35% increase in
the final dividend to 4.12p, bringing the total dividend for the
year to 5.87p up 24% on 2005. We plan to grow future dividends
at least in line with inflation," Mr. Haste added.
Headquartered in London, England, Royal & Sun Alliance Insurance
Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100
company, listed on the London Stock Exchange and in New York.
The group consists of three regions -- U.K., Scandinavia and
International -- with operations in 30 countries, providing
general insurance products to over 20 million customers
worldwide. The group has operations in Asia, including China,
Hong Kong and India, among others.
* * *
As of Feb. 22, Royal & Sun Alliance Insurance Group PLC carries
Moody's Ba1 preferred stock rating.
RYERSON INC: James Kackley to Join Board of Directors
-----------------------------------------------------
Ryerson Inc.'s Board of Directors has elected James R. Kackley
as part of the Board.
"We are extremely pleased to have James Kackley join our Board,"
said Neil Novich, Chairman and Chief Executive Officer of
Ryerson. "James brings an extensive background in finance and
experience auditing multi-location retailers and distributors.
In the past three years, we have added five new directors to
Ryerson's Board, part of an ongoing process to bring a fresh
perspective and relevant experience that complements our
outstanding and active Board of Directors," added Mr. Novich.
James R. Kackley, 64, is a private investor. Mr. Kackley
practiced as a public accountant for Arthur Andersen from 1963
to 1999. From 1974 to 1999, he was an audit partner for the
firm, dealing with a substantial number of public and non-public
companies, including companies engaged in manufacturing,
distribution, and retail businesses. In addition, in 1998 and
1999, he served as Chief Financial Officer for Andersen
Worldwide, then a US$16 billion a year professional services
firm operating in more than 100 countries. From June 1999 to
May 2002, Mr. Kackley was an adjunct professor at the Kellstadt
School of Management at DePaul University. Mr. Kackley
currently serves as a director, member of the audit and
management compensation committees and the audit committee
financial expert for PepsiAmericas, Inc., a US$4 billion soft-
drink bottler based in Minneapolis, Minnesota. In addition, he
currently serves as a director, Chairman of the audit committee
and as the audit committee financial expert of Herman
Miller, Inc., a Michigan-based manufacturer of office furniture.
He also acts as a director and Chairman of the audit and finance
committee for Orion Energy Systems, Inc., a Wisconsin-based
manufacturer of industrial lighting. Previously, he served on
the audit committees of Northwestern University and the Chicago
Symphony Orchestra, not-for-profit corporations. He is
currently a Life Trustee of Northwestern University and the
Museum of Science and Industry in Chicago.
The Board also determined that, as part of a planned succession
process, Gregory P. Josefowicz, a member of the company's Board
since 1999, will succeed James A. Henderson as the Chair of the
company's nominating and governance committee, effective at the
next Annual Meeting of Stockholders. The Chair of this
committee acts as the presiding director of the Board and chairs
all executive sessions of the non-management and independent
directors. Mr. Josefowicz is the retired Chairman, President
and Chief Executive Officer of Borders Group, Inc., an operator
of book superstores and mall-based bookstores. Previously, he
was Chief Executive Officer of the Jewel-Osco division of
American Stores Company, which operates food and drug stores in
Illinois and Wisconsin, and was Albertson's President, Midwest
Region after Albertsons acquired Jewel.
About Ryerson Inc.
Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a
distributor and processor of metals in North America, with 2006
revenues of US$5.9 billion. The company services customers
through a network of service centers across the United States
and in Canada, Mexico, India, and China. On Jan. 1, 2006, the
company changed its name from Ryerson Tull, Inc. to Ryerson Inc.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 21, 2007, Standard & Poor's Ratings Services lowered its
corporate credit rating to 'B+' from 'BB-' on Chicago, Illinois-
based metals processor and distributor Ryerson Inc., and lowered
its senior unsecured rating to 'B-' from 'B'.
SOUTHERN IRON: Shareholders Okay Issuance of 99,00,000 Shares
-------------------------------------------------------------
Southern Iron & Steel Company Ltd's shareholders approved the
issuance and allotment of 99,00,000, 11% Redeemable Cumulative
Non-Convertible Preference Shares of INR10 each to the promoters
or their associates or any other entity or persons to be decided
by the Board of Directors, on preferential basis.
In a filing with the Bombay Stock Exchange, Southern Iron
discloses that the decision to issue the shares, which aggregate
INR9,90,00,000, was made at the company's extraordinary general
meeting on March 7, 2007.
Headquartered in Salem, India, Southern Iron & Steel Company
Limited is engaged in the business of manufacturing pig iron,
billets, bars and rods. The Company produces these products at
its integrated steel plant located in the district of Salem,
Tamil Nadu. The plant has a capacity of 0.3 metric tons per
annum. Southern Iron and Steel Company Ltd. also has plants for
the generation of power and production of oxygen.
On July 20, 2006, CRISIL Ratings reaffirmed the outstanding 'D'
rating on the INR280 million Non-Convertible portion of the
Optionally Convertible Debenture Issue of Southern Iron & Steel
Company Limited indicating that the instrument continues in
default. The original instrument has been restructured and is
due for redemption in two installments on May 17, 2007, and
May 17, 2008.
UTSTARCOM INC: Defers 10-K Filing Due to Financial Restatements
---------------------------------------------------------------
UTStarcom Inc. reported an expected delay in filing its Annual
Report on Form 10-K for the year ended Dec. 31, 2006.
Because of time needed to analyze and compute the financial
statement effects of the errors in measurement dates identified
in the Governance Committee's on-going review of the company's
equity grant award practices, to prepare restated financial
statements, and for audit by the company's independent
registered public accounting firm, the company did not file its
2006 10-K by the scheduled due date of March 1, 2007.
As previously communicated on Feb. 1, 2007, the Governance
Committee review found that in certain instances all actions
that establish a measurement date under the requirements of
Accounting Principles Board No. 25, Accounting for Stock Issued
to Employees, had not occurred at the grant date, which had been
used as the measurement date in accounting for Company stock
option grants. A later date, when all such actions had taken
place, should have been used as the measurement date for these
stock options. The Audit Committee of the company's Board of
Directors then determined, in consultation with and on the
recommendation of the company's management, the effect of using
incorrect measurement dates would require the company to record
material additional stock-based compensation charges in its
previously issued financial statements.
The Company therefore previously announced, based on preliminary
information, its previously issued financial statements for the
years 2000 through 2006, including interim periods within these
fiscal years, should no longer be relied upon, and its estimate
that the restatement may involve additional non-cash
compensation and related charges of approximately US$50 million.
The company has filed a notification of late filing with the
Securities and Exchange Commission, which reports: (i) the
company will be unable to file its 2006 10-K by the required
filing date and (ii) the company does not currently anticipate
the 2006 10-K will be filed on or before the fifteenth calendar
day following the prescribed due date according to Rule 12b-25.
The company will file its restated financial statements as soon
as practicable, but as is customary when required filings with
the SEC are not timely made, it expects to receive a notice from
Nasdaq concerning the possible delisting of its common stock.
This information is preliminary and is subject to changes that
might result from completion of the Governance Committee's
investigation, management's review of the findings of the
Governance Committee, and audit by the company's independent
registered public accounting firm, but it provides management's
best estimates based on available information.
Headquartered in Alameda, Calif., UTStarcom Inc. (Nasdaq: UTSI)
-- http://www.utstar.com/-- provides IP-based, end-to-end
networking solutions and international service and support. The
company sells its broadband, wireless, and handset solutions to
operators in both emerging and established telecommunications
markets around the world. The company maintains operations in
India, France, Italy, Spain, China, Japan, Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 24, 2007, noteholders of UTStarcom Inc.'s 7/8% convertible
subordinated notes due 2008 agreed to the proposed amendments of
certain provisions of the indenture pursuant to which the notes
were issued and a waiver of rights to pursue remedies available
under the indenture with respect to certain default.
Under the terms of the indenture, during the period beginning
Jan. 9, 2007, and ending 5:30 p.m., May 31, 2007, any failure by
the company to comply with certain provisions will not result in
a default or an event of default, and the Notes will accrue an
additional 6.75% per annum in special interest from and after
Jan. 9, 2007 to the maturity date of the Notes, unless the Notes
are earlier repurchased or converted.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Premiers Unified Access to Mobile TV in Germany
---------------------------------------------------------------
Alcatel-Lucent is demonstrating, for the first time in Germany,
seamless access on a single device to a selection of Mobile TV
channels delivered via either 3G or broadcast networks,
including German language channels RTL Mobile TV, National
Geographic Channel and Eurosport. This demonstration, which is
taking place in Alcatel-Lucent's premises in Stuttgart in front
of representatives from German operators and TV broadcasters, is
based on the new DVB-SH mobile broadcast standard using the S-
Band.
Thanks to Alcatel-Lucent's Mobile interactive TV solution, users
are also able to interact with the content of all the 3G and
broadcast Mobile TV channels available on the terminal. This
achievement is opening the way to a truly interactive and
personalized Mobile TV experience for the mass market and to the
provisioning of new services offered as a complement to Mobile
TV such as voting, content downloading or mobile commerce.
These features also enable the delivery of personalized
advertisements to mobile TV viewers.
For the first time in Germany, Alcatel-Lucent is also
demonstrating plain broadcast Mobile TV in the S-Band using
SAGEM myMobileTV handsets.
Olivier Coste, President of Alcatel-Lucent's Mobile broadcast
activities declared: "Germany is a key market for the roll-out
of mass market Mobile TV in Europe. Following the adoption
during 3GSM of DVB-SH by DVB Project and the EC Decision on the
use of a harmonized 2.2 GHz spectrum for EU-wide hybrid Mobile
TV services, our Stuttgart's demonstration definitely positions
Alcatel-Lucent's Unlimited Mobile TV solution as a serious
option for all operators willing to deploy their Mobile TV
strategies in Europe."
Unique DVB-SH features allowing reception quality enhancement
under difficult and mobility conditions are demonstrated. The
improved Mobile TV user experience made possible by these
features will allow operators to offer a universal high-quality
Mobile TV service that users are ready to pay for.
Alcatel-Lucent is committed to support service providers in
delivering a truly converged TV experience. Alcatel-Lucent has
already established a leading position in interactive TV
services, and already enables TV, video and music services for
more than 110 fixed and mobile service providers around the
world.
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: Deploys IPTV Service Solution to TDC A/S
--------------------------------------------------------
Alcatel-Lucent has deployed its IPTV solution, including the
Microsoft IPTV Edition software platform, to TDC A/S.
TDC has rolled-out a nationwide commercial IPTV service.
Together with the recent TDC TV launch, the company inaugurated
Denmark's largest and most state-of-the-art interactive TV
network, with services available to more than 1.6 million
households.
Building on Alcatel-Lucent's commitment to support service
providers in delivering a truly converged TV experience, this
critical market milestone follows TDC's selection of Alcatel-
Lucent's IPTV offering, including the Microsoft IPTV Edition
software platform, in 2006.
Alcatel-Lucent has established a leading position in interactive
TV services, and already enables TV, video, and music services
for more than 110 fixed and mobile service providers around the
world.
The solution delivered to TDC includes comprehensive Alcatel-
Lucent services integration as well as the Microsoft TV IPTV
Edition software platform. Based on this solution, TDC TV
subscribers will benefit from an enriched entertainment
experience with broadband access to 35 television channels, an
electronic program guide, digital recorder with pause feature,
and access to more than 200 movie titles available at their
convenience via video on demand technology. The network is also
HDTV-ready.
"The new generation of TDC TV is one of TDC's most important
growth projects within broadband for many years. This is one
example of how broadband will be playing a still greater role in
our everyday lives in the future," said Gert Rieder, President
of TDC Solutions.
"We deliver telephony, Internet, and TV through one and the same
wall outlet. This is clearly the most user-friendly solution in
the market because it is interactive and offers convenient
access to individual content preferences such as on-demand movie
rentals."
"With the launch of TDC TV, TDC is playing a market leadership
role by pioneering IPTV service delivery in the Nordic region,"
said Lars Boilesen, head of Alcatel-Lucent's activities in the
Nordic & Baltic countries.
"The successful delivery of advanced entertainment services is a
milestone not only for TDC and Alcatel-Lucent but also for other
carriers in the region who are looking to capitalize on
increasing demand for advanced, enhanced entertainment
services," Mr. Boilesen added.
About TDC A/S
Headquartered in Copenhagen, Denmark, TDC A/S --
http://www.tdc.dk/-- through its subsidiaries and affiliates,
provides communication solutions in Europe. It provides
communication services in Denmark and Switzerland, and has a
significant presence in selected Northern and Central European
telecommunication markets. It operates through five business
lines.
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.
APEXINDO PRATAMA: Pefindo upgrades Ratings from "idA-" to "idA"
---------------------------------------------------------------
Pefindo upgraded its ratings for PT Apexindo Pratama Duta Tbk
and the Company's Bond I/2005 of IDR510 bn to "idA" from "idA-"
and at the same time upgraded the Company's syariah-ijarah Bond
I/2005 of IDR240 bn to "idA" from "idA-", while the outlook for
those ratings remained Stable.
The upgrades reflect the Company's continued improvement in its
rigs daily rates, long-term contracts with major oil and gas
companies, and strengthening financial profile. However, the
ratings are mitigated by high operational risks and relatively
high concentration to a single customer.
APEX is the largest national drilling contractor and is regarded
as one of the major drilling players in Southeast Asia. The
Company's operation is currently supported by 5 offshore rigs
and 8 onshore rigs, while the new jack-up rig will be coming
soon in 2Q 07. APEX has also been able to maintain its strong
business relationship with prominent oil and gas companies, such
as Total E&P Indonesia, VICO, Unocal, Pertamina, and etc.
As of September 30, 2006, the Company was 51.7% owned by PT
Medco Energi Internasional Tbk, the largest private Indonesian
oil and gas company, 31.9% by SeaDrill Ltd., a Norwegian
offshore drilling company, and 16.5% by others, including
public.
About Apexindo Pratama
Headquartered in Jakarta, Indonesia, PT Apexindo Pratama Duta
Tbk -- http://www.apexindo.com/-- is a national onshore and
offshore drilling contractor that has been serving both
prominent local and international clients domestically as well
as abroad for the last two decades.
Apexindo Pratama is controlled by Indonesia's largest listed
energy firm, PT Medco Energi International Tbk (MEDC.JK), which
has a 52% stake.
Apexindo Pratama has recorded a net loss of IDR43.126 billion in
fiscal year 2005, compared with a IDR36.524-billion net loss in
2004.
ARPENI PRATAMA: Forms JV Company with Hyundai Merchant Marine
-------------------------------------------------------------
PT Arpeni Pratama Ocean Line Tbk signed a memorandum of
understanding with Hyundai Merchant Marine Co. Ltd. to set up a
50:50 joint venture company, Reuters Key Development says citing
AFX Asia News.
According to the report, the joint venture will buy two tankers
worth US$100 million to carry liquid cargoes. The tankers will
be delivered in 2008.
About Arpeni Pratama
PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is
a marine shipping company. The company's activities include
bulk and liquid transportation services. Arpeni operates a
fleet of general-purpose specialist, such as their tweendecker
MV Alas, which is designed to transport, dry cargoes such as
plywood and agricultural products.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
May 2, 2006, Fitch Ratings has assigned a final rating of "BB-"
to the US$160 million guaranteed notes due 2013 issued by Arpeni
Pratama Ocean Line Investment B.V. and guaranteed by PT Arpeni
Pratama Ocean Line Tbk -- Arpeni, rated Long-term Foreign and
Local Currency Issuer Default 'BB-'/Stable -- and its
subsidiaries.
This follows the completion of the notes issue and receipt of
documents conforming to information already received. The notes
are secured by first priority pledges of capital stock of
Arpeni's equity interest in most of its subsidiaries. The
ratings are not constrained by the "BB-" Country Ceiling of the
Republic of Indonesia.
According to another TCR-AP report on April 24, 2006, Standard &
Poor's Ratings Services has assigned its B+ corporate credit
rating to PT Arpeni. The outlook is stable. At the same time,
Standard & Poor's assigned its 'B+' rating to the proposed
US$160 million seven-year senior unsecured notes to be issued by
the company.
The company intends to use a part of the net proceeds -- about
US$93 million -- for refinancing existing debt, and the balance
for capital expenditure and vessel financing.
BAKRIE SUMATERA: Signs Agreement with Co-Operative Council
----------------------------------------------------------
PT Bakrie Sumatera Plantations Tbk has signed an agreement with
the Co-Operative Council of Indonesia to develop, process and
market biofuel as an alternative energy source, Reuters Key
Development reports.
About Bakrie Sumatera
Headquartered in Sumatra, Indonesia, Bakrie Sumatera Plantations
Tbk is Indonesia's third largest largest publicly traded
plantation company. It is 54% owned by PT Bakrie & Brothers
Tbk, and its products include crude palm oil, palm kernel oil
and latex. It was listed in 1990 on the Jakarta Stock Exchange.
BSP carries Standard & Poor's Ratings Services' 'B' corporate
credit rating. The outlook is stable.
Moody's Investors Service has affirmed the B2 senior secured
debt rating for Bakrie Sumatera Plantations Tbk following its
decision to increase the existing bond size of US$110 million by
another US$45 million. At the same time, Moody's has also
affirmed the B2 corporate family rating for BSP. The outlook
for all the ratings is stable.
BANK MANDIRI: Plans Acquisition of Competitors
----------------------------------------------
PT Bank Mandiri says it plans acquisitions as the government
urges consolidation in the industry.
Bank Mandiri plans to buy other banks in the coming year after
strengthening its finance. Mandiri plans to buy competitors
that have strong operations in the consumer, small and medium-
enterprise segments, Managing Director Abdul Rachman said in an
interview in Singapore.
About Bank Mandiri
PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.
The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service revised the outlook to
positive from stable of PT Bank Mandiri's senior debt and
foreign currency long-term deposit ratings. The bank's short-
term deposit rating and long-term subordinated debt rating
continue to carry Moody's stable outlook while the bank
financial strength remains on review for possible upgrade.
Moody's detailed ratings for Bank Mandiri are:
-- senior/subordinated debt of Ba3/Ba3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of E+.
Fitch Ratings has affirmed all the ratings of Bank Mandiri as
follows:
* Long-term foreign and local currency Issuer Default ratings
'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA(idn)',
* Individual 'D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
BANK MANDIRI: Expects NPL Ratio to Return to Normal in 2007
-----------------------------------------------------------
The Indonesian government hopes that Bank Mandiri's non-
performing loan ratio can return to a normal level of below 5%
this year after reaching a peak of 26.66% in 2005, Bank Mandiri
said on its Web site.
"In 2007, we hope Bank Mandiri will reach a normal NPL level,
thereby debtors, particularly from Bank Mandiri, will be free to
move again, so that the real sector could grown in 2007,"
explained State Minister for State Enterprises Sugiharto during
a hearing with the parliament. Mr. Sugiharto said that several
efforts were still being made to lower Bank Mandiri's non-
performing loan ratio, including improving the state owned
bank's performance.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 25, 2007, that the ratio of Bank Mandiri's non-performing
loans to its total loans fell to 7.88% on Dec. 31, 2006,
compared with 16.14% in 2005. The report also cited the bank's
president director, Agus Martowardoyo, as saying that the ratio
of its gross NPLs to its total loans also dropped to 17.86% from
26.66%. TCR-AP also stated that Mr. Martowardoyo said that the
success in lowering Bank Mandiri's NPL resulted from a drop in
the amount of NPLs in its main obligors' debit accounts from
IDR16.1 trillion on Dec. 31, 2005, to IDR9.58 trillion on Dec.
31, 2006. The bank also had reached an agreement with two main
obligors -- Argo Pantes and Raja Garuda Mas -- to restructure
their debts, the report adds.
About Bank Mandiri
PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.
The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service revised the outlook to
positive from stable of PT Bank Mandiri's senior debt and
foreign currency long-term deposit ratings. The bank's short-
term deposit rating and long-term subordinated debt rating
continue to carry Moody's stable outlook while the bank
financial strength remains on review for possible upgrade.
Moody's detailed ratings for Bank Mandiri are:
-- senior/subordinated debt of Ba3/Ba3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of E+.
Fitch Ratings has affirmed all the ratings of Bank Mandiri as
follows:
* Long-term foreign and local currency Issuer Default ratings
'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA(idn)',
* Individual 'D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
BANK PERMATA: 6,700 Employees Get Early Retirement Offers
---------------------------------------------------------
According to Reuters Key Development, Bisnis Indonesia has
reported that PT Bank Permata offered voluntarily pension
programs to its 6,700 employees at all levels to boost
productivity.
The report adds that the program started on January 31 and will
end on March 31, 2007.
About Bank Permata
Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's
-- http://www.permatabank.com/-- products and services include
liabilities, asset, credit card and bancassurance, PermataFOREX,
commercial banking, e-channels and preferred banking. The bank
has approximately 318 domestic branches, sub branches and cash
offices throughout the country. The bank's subsidiaries, which
are engaged in the securities industry, the consumer finance and
leasing sector, the general insurance business and the banking
sector, include PT Bali Securities, PT Bali Tunas Finance, PT
Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan
Rakyat.
The Troubled Company Reporter -- Asia Pacific reported on Feb.
06, 2007, that Moody's Investors Service revised the outlook of
PT Bank Permata Tbk's long-term deposit rating to positive from
stable. The short-term deposit rating continues to carry a
stable outlook while the bank financial strength rating remains
on review for possible upgrade.
Bank Permata's detailed ratings are:
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of E+.
Fitch Ratings has affirmed the 'D' Individual and '4' Support
rating of Bank Permata.
BANK PERMATA: Posts IDR311.5-Billion Net Income in 2006
-------------------------------------------------------
PT Bank Permata Tbk disclosed annual financial results for the
year ended December 2006.
Net interest income for the year ending December 2006 is
IDR1.64 trillion, 18% higher compared to the IDR1.39-trillion
income booked in the corresponding period in 2005.
The company's operating income for the year ended December 2006
soared to IDR521.6 billion from the IDR389.8 million for the
year ended December 2005.
Net income for the year ended December 2006 increased to
IDR311.5 billion from the IDR295 billion net profit gained in
2005.
About Bank Permata
Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's
-- http://www.permatabank.com/-- products and services include
liabilities, asset, credit card and bancassurance, PermataFOREX,
commercial banking, e-channels and preferred banking. The bank
has approximately 318 domestic branches, sub branches and cash
offices throughout the country. The bank's subsidiaries, which
are engaged in the securities industry, the consumer finance and
leasing sector, the general insurance business and the banking
sector, include PT Bali Securities, PT Bali Tunas Finance, PT
Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan
Rakyat.
The Troubled Company Reporter -- Asia Pacific reported on Feb.
06, 2007, that Moody's Investors Service revised the outlook of
PT Bank Permata Tbk's long-term deposit rating to positive from
stable. The short-term deposit rating continues to carry a
stable outlook while the bank financial strength rating remains
on review for possible upgrade.
Bank Permata's detailed ratings are:
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of E+.
Fitch Ratings has affirmed the 'D' Individual and '4' Support
rating of Bank Permata.
FAJAR SURYA: Expects 43% Increase in Revenue for 2007
-----------------------------------------------------
According to Reuters Key Development, Bisnis Indonesia has
reported that PT Fajar Surya Wisesa Tbk has predicted that its
revenue will be IDR1.75 trillion for the fiscal year 2006.
The report adds that the company also expects that the number
will increase by 43% to IDR2.5 trillion in 2007.
The Troubled Company Reporter - Asia Pacific learns from data
obtained from Bloomberg that the company posted a net income of
IDR108.13 billion for the three quarters to Sept. 30, 2006. The
company has yet to release its full year 2006 results.
About Fajar Surya
PT Fajar Surya Wisesa -- http://www.fajarpaper.com/-- is among
the largest industrial paper manufacturers in Indonesia with a
focused range of products comprising liner board, corrugated
medium paper and coated duplex board.
The Troubled Company Reporter - Asia Pacific reported on
November 2, 2006, that Fitch Ratings has assigned a final rating
of 'B+' and a Recovery Rating of 'RR4' to the US$100 million
guaranteed secured notes due 2011 issued by Fajar Paper Finance
B.V. and guaranteed by PT Fajar Surya Wisesa. The rating action
follows the completion of the notes issue and receipt of
documents conforming to information previously received
FOSTER WHEELER: Wins Contract for Steam Generators in Korea
------------------------------------------------------------
Foster Wheeler Ltd's subsidiary within its Global Power Group
has been awarded a contract from the Hanwha International
Corporation for the design and supply of three circulating
fluidized-bed steam generators for a chemical facility located
in the Yeosu area of Southern Korea. Hanwha International
Corporation is a wholly owned subsidiary of Hanwha Chemical
Corporation, which is a leading petrochemical manufacturer and
supplier in Asia.
Foster Wheeler has received a full notice to proceed on this
contract and the undisclosed contract value will be included in
Foster Wheeler's first-quarter 2007 bookings.
The three 100 MWe CFB steam generators are designed to fire
bituminous coal. To burn this fuel as cleanly as possible,
limestone bed material will be used to capture the fuel's sulfur
within the CFB boilers. The CFB boilers will also be equipped
with Foster Wheeler's advanced selective non-catalytic NOx
reduction technology to minimize NOx emissions from the plant.
Construction of the CFB boilers is expected to begin in the
summer of 2007, with commercial operation of the plant scheduled
for the end of 2009.
"We are pleased to supply these state-of-the-art CFB boilers to
the Hanwha International Corporation and to be part of this
important project," said Gary Nedelka, president and chief
executive officer of Foster Wheeler North America Corp. "This
is another example of Foster Wheeler's commitment to supply
environmentally friendly and cost-effective technology to
support our clients in the chemical industry."
"We selected Foster Wheeler due to our confidence both in their
CFB technology and their track record of successful CFB projects
in Asia," said Youn T. Kim, president and chief executive
officer of Hanwha International Corporation.
About Foster Wheeler
With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of
engineering, procurement, construction, manufacturing, project
development and management, research and plant operation
services. Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.
The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand and Vietnam.
* * *
On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company. The company had about
US$217 million of total debt at Sept. 29, 2006.
GOODYEAR TIRE: Unit Reports US$120 Million in Losses Due to Fire
----------------------------------------------------------------
Goodyear Jamaica Ltd., The Goodyear Tire & Rubber Co.'s Jamaican
subsidiary, has lost an estimated US$120 million from the recent
fire at its Spanish Town Road plant, Radio Jamaica reports.
Goodyear Jamaica said in its audited financial statements for
2006 that inventories totaling US$120 million and office
equipment that cost US$250,000 were lost in the fire.
Goodyear Jamaica told Radio Jamaica that the inventories and
office equipment were insured through Goodyear Tire's Global
Insurance Policy.
Goodyear Jamaica's revenue increased by US$122 million to US$1.3
billion in 2006, from 2005. However, a 20% boost in the cost of
sales brought down its profit to US$25.2 million in 2006,
compared to US$73 million in 2005, Radio Jamaica states.
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,and
Thailand. Goodyear employs more than 80,000 people worldwide.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2007, that Moody's Investors Service affirmed Goodyear
Tire & Rubber Company's Corporate Family Rating of B1. Ratings
on Goodyear's existing secured and unsecured obligations were
also affirmed as was the company's Speculative Grade Liquidity
rating of SGL-2. The outlook has reverted to stable from
negative.
Fitch Ratings has affirmed ratings for the Goodyear Tire &
Rubber Company and removed the ratings from Rating Watch
Negative. The ratings were placed on Rating Watch Negative on
Oct. 18, 2006, when the company announced a US$975 million draw
down of its bank revolver. Goodyear's debt and recovery ratings
are as follows:
-- Issuer Default Rating (IDR) 'B';
-- US$1.5 billion first lien credit facility 'BB/RR1';
-- US$1.2 billion second lien term loan 'BB/RR1';
-- US$300 million third lien term loan 'B/RR4';
-- US$650 million third lien senior secured notes 'B/RR4';and
-- Senior unsecured debt 'CCC+/RR6'.
The TCR-AP also reported on Jan. 5, 2007, that Standard & Poor's
Ratings Services affirmed its 'B+' corporate credit and other
ratings on Goodyear Tire & Rubber Co. and removed them from
CreditWatch where they were placed with negative implications on
Oct. 16, 2006, as a result of the labor dispute at several of
the company's North American plants.
HANOVER COMPRESSOR: Earns US$86.52-Mil in Year Ended December 31
----------------------------------------------------------------
Hanover Compressor Co. reported total revenues of US$1.67
billion for the year ended Dec. 31, 2006, as compared with total
revenues of US$1.37 billion for the year ended Dec. 31, 2005.
The company generated a net income of US$86.52 million for the
year 2006, versus a net loss of US$38.01 million for the
previous year.
The company's Dec. 31, 2006, balance sheet showed US$3.07
billion in total assets, US$2.04 billion in total liabilities,
and US$11.99 million in minority interests, resulting in a $1.01
billion total stockholders' equity.
The company's unrestricted cash and cash equivalents as of
Dec. 31, 2006, amounted to US$73.28 million, up from US$48.23
million a year ago. Working capital decreased to US$326.56
million as of Dec. 31, 2006, from US$351.69 million as of Dec.
31, 2005.
The company had total contractual cash obligations totaling
US$2.37 billion as of Dec. 31, 2006, which consisted of US$1.37
long-term debt, US$594.01 million interests on long-term debt,
US$11.87 million minority interest obligations, US$385.27
million in purchase commitments, and US$6.37 million in
facilities and other equipment operating leases.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1ad0
About Hanover Compressor Company
Headquartered in Houston, Texas, Hanover Compressor Company
-- http://www.hanover-co.com-- rents and repairs compressors
and performs natural gas compression services for oil and gas
companies. It has a fleet of more than 6,520 mobile compressors
ranging from 8 to 4,735 horsepower. The company's subsidiaries
also provide service, fabrication, and equipment for oil and
natural gas processing and transportation applications. Hanover
Compressor is disposing of its non-oilfield power generation
facilities and used equipment businesses to focus on core
operations. In 2006 the company sold the US amine treating
rental assets of Hanover Compression Limited Partnership to oil
and gas firm Crosstex Energy for about US$52 million.
The company has locations in Indonesia, India, China, Japan,
Korea, Taiwan, the United Kingdom, and Vietnam, among others.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 12, 2007, that Standard & Poor's Ratings Services placed
the 'BB-' corporate credit ratings on oilfield service company
Hanover Compressor Co. and its related entity Hanover
Compression L.P. on CreditWatch with positive implications.
At the same time, Standard & Poor's affirmed the 'BB' corporate
credit ratings on oilfield service company Universal Compression
Holdings Inc. and its related entity Universal Compression Inc.
The rating actions come after the report that Hanover Compressor
and Universal Compression Holdings have entered into a
definitive agreement to merge in an all-stock transaction.
Moody's Investors Service, in connection with the implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Forest Products sector,
confirmed its B1 Corporate Family Rating for Hanover Compressor
Company.
Four layers of bond debt issued by Hanover Compressor and
maturing between 2008 and 2014 carry low-B ratings from Moody's
Investors Service and Standard & Poor's Rating Services.
INDOSAT: Forms Partnership with PT Trikomsel Multimedia-Bisnis
--------------------------------------------------------------
PT Indosat Tbk signs a strategic agreement with PT Trikomsel
Multimedia to enhance its cooperation in the retail business for
distributing product and value added service to the public.
This cooperation will further enhance and strengthen the
strategic partnership between both parties.
"Indosat greatly welcomes this partnership with Trikomsel. We
already have an excellent relationship with Trikomsel for many
years and we are excited by the opportunity to explore new
business partnerships with them. This should significantly
enhance the relationship between our two companies and also
result in more exciting services and solutions for our
customers," said Kaizad B. Heerjee, Deputy President Director
Indosat. "This partnership is further demonstration of
Indosat's commitment to continuously increase quality of service
to our customers and to work together with our partners to grow
their business." he added.
Indosat and Trikomsel realize that inline with the dynamic
development of the cellular industry, a more developed business
partnership between telecommunication industry and retail
business distribution cannot be avoided. Indosat as one of the
leading cellular operator in Indonesia and Trikomsel believes
that this partnership will be mutually beneficial to one
another.
Indosat, Indonesia's leading full network service provider, has
more than 16 million customer and has one of the widest network
coverage, while Trikomsel, owns Okeshop with the biggest retail
shop network in Indonesia. Okeshop is spread out in more than
100 cities in Indonesia totaling of 700 outlets. Indosat and
Trikomsel are sure that the synergy has a positive impact for
both companies and a firm position in anticipating the market
that keeps growing.
President Director Trikomsel, Sugiono Wiyono said,"The strategic
partnership between Indosat and Trikomsel retail business, is
hoped to increase service of both parties to customers and the
public". Trikomsel with its Okeshop will provide retail
distribution with a wider coverage in domestic market in
supplying various Indosat service. Other than that, Trikomsel
will also prepare integrated sales and marketing activities for
both parties, through advertising promotion activities, and
roadshow to cities in Indonesia.
About Trikomsel
PT Trikomsel Multimedia was established in 1996 as the official
distributor of Nokia and Sony Ericsson in Indonesia. With
branches in 23 cities in Indonesia and distribution network
trough Okeshop, place Trikomsel in a strategic position to
anticipate a fast and accurate market.
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company is a provider of international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has affirmed the Ba1 local
currency corporate family rating of PT Indosat Tbk, and the Ba3
foreign currency senior unsecured bond rating of Indosat Finance
Company B.V. and Indosat International Finance Company B.V. The
bonds are irrevocably and unconditionally guaranteed by Indosat.
The outlooks for the ratings remain positive.
A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'. The outlook on the ratings is
stable.
MEDCO ENERGI: Starts Production from Camar and Singa Field
----------------------------------------------------------
PT Medco Energi Internasional Tbk will start the oil production
from its Camar field and the gas production from its Singa field
in South Sumatra, Reuters Key Development reports citing Asia
Pulse.
The report adds that the Camar and Singa field will produce
around 1,000 barrels of crude oil per day and around 70 million
cubic feet of gas per day, respectively.
About Medco Energi
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter - Asia Pacific stated on Dec. 21,
2006, that Standard & Poor's Ratings Services affirmed its 'B+'
corporate credit rating on Medco Energi. The outlook remains
negative.
According to S&P, the negative outlook on Medco reflects the
company's weaker financial profile due to its increased debt
burden to fund its aggressive capital expenditure.
In a TCR-AP report on Aug. 16, 2006, Moody's Investors Service
has changed the outlook on Medco Energi's ratings to negative
from stable. The ratings affected by the outlook change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
MEDCO ENERGI: Libyan Operations Pay Off
---------------------------------------
PT Medco Energi Internasional Tbk has announced that its wholly
owned subsidiary, Medco International Ventures Limited, and its
partner, Verenex Energy Inc., a Canadia-based oil and gas
exploration and production company which are also the operator
of Area 47 in Ghadames basin, Libya, have confirmed the status
of first exploration well, A1-47/02 well, as an oil discovery,
Reuters Key Development reports.
About Medco Energi
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter - Asia Pacific stated on Dec. 21,
2006, that Standard & Poor's Ratings Services affirmed its 'B+'
corporate credit rating on Medco Energi. The outlook remains
negative.
According to S&P, the negative outlook on Medco reflects the
company's weaker financial profile due to its increased debt
burden to fund its aggressive capital expenditure.
In a TCR-AP report on Aug. 16, 2006, Moody's Investors Service
has changed the outlook on Medco Energi's ratings to negative
from stable. The ratings affected by the outlook change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
MEDCO ENERGI: Unit Plans to Build Ethanol Plant
-----------------------------------------------
PT Medco Ethanol Bunyu, a subsidiary of PT Medco Energi
Internasional Tbk, plans to build an ethanol plant with a
capacity of 170,000 barrels per year in East Java in 2010,
Reuters Key Development reports citing AFX Asia.
The construction of the plant will cost about US$100 million to
US$150 million.
About Medco Energi
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter - Asia Pacific stated on Dec. 21,
2006, that Standard & Poor's Ratings Services affirmed its 'B+'
corporate credit rating on Medco Energi. The outlook remains
negative.
According to S&P, the negative outlook on Medco reflects the
company's weaker financial profile due to its increased debt
burden to fund its aggressive capital expenditure.
In a TCR-AP report on Aug. 16, 2006, Moody's Investors Service
has changed the outlook on Medco Energi's ratings to negative
from stable. The ratings affected by the outlook change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
METSO OYJ: Cancels 2003 Stock Options
-------------------------------------
The Board of Directors of Metso Oyj has decided to cancel 2003
stock options in such a way that after the cancellation there
remains only 135,000 of 2003A options.
Out of these options, 35,000 have been granted and 100,000 are
held by Metso's subsidiary Metso Capital Ltd. Of the granted
options, 2,000 have been used to subscribe Metso shares in
February 2007.
About Metso
Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj
--http://www.metso.com/-- is a global engineering and
technology corporation with 2005 net sales of around EUR4.2
billion. Its 22,000 employees in more than 50 countries serve
customers in the pulp and paper industry, rock and minerals
processing, the energy industry and selected other industries.
The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.
* * *
As of Feb. 9, Metso Oyj carries a 'BB+' long-term and 'B' short
term corporate credit ratings and 'BB' senior unsecured debt
rating from Standard and Poor's.
NORTEL NETWORKS: Powers TVA Mobile WiMAX Trial in Brazil
--------------------------------------------------------
In preparation for future large-scale deployment of wireless
broadband access services across Latin America's largest market,
TVA, one of the leading pay TV companies in Brazil, is building
a WiMAX trial network based on innovative 4G solutions and
services from Nortel Networks Corporation.
The two companies disclosed a trial agreement at a press event
held in Sao Paulo. Nortel's mobile MIMO-powered WiMAX solution
will allow carriers like TVA to quickly and cost-effectively
deliver true high-speed broadband access, mobile TV and video,
VoIP, streaming media, data applications and mobile electronic
commerce.
"With 4G/WiMAX, Nortel is changing the economics of the game and
positioning carriers to deliver true mobile broadband and a
hyper-connected communication experience to businesses and
consumers," said Juan Chico, president, Nortel Brazil. "Our
trial agreement with TVA will allow us to demonstrate the
technology's ability to replicate the user's fixed PC
capabilities, such as blogging, video and VoIP, from any
location."
Nortel will provide an end-to-end solution including consumer
devices, base stations, ASN gateway and professional services
for the trial. Testing is scheduled to start in second quarter
of 2007 in the city of Sao Paulo on the 2.5 GHz frequency band.
Under the agreement, Nortel will provide the equipment and will
be responsible for the deployment, support and maintenance of
the entire infrastructure for the trial network.
"TVA has been working to maximize use of the Multichannel
Multipoint Distribution Service spectrum. The first step was
video digitalization, which allows us to offer over 100
channels. Through this trial with Nortel, we can reinforce our
efforts to increase our service portfolio moving forward", said
VirgC-lio Amaral, director Strategy and Technology, TVA.
The advantages provided by a WiMAX network are many compared to
traditional broadband systems. An example is its flexibility,
enabling hybrid connectivity both for wireline and wireless
services. Because it does not require fixed lines, deploying a
WiMAX network requires one-third the investment of a wired
network and improves operator profitability through reduced
deployment time, operation and maintenance costs. In addition,
WiMAX delivers superior data throughput and mobility, allowing
users to stay connected and experience true broadband - even
while on the move.
Nortel's 4G WiMAX solution delivers the highest performance in
the smallest footprint with the most competitive cost-per-mega-
bit in the industry. It is built on a foundation of OFDM-MIMO,
a combination of innovative transmission and antenna
technologies that maximizes spectrum to deliver the lightning-
fast speeds and high bandwidth essential to high-quality mobile
video and TV.
About TVA
TVA is the first triple play operator in Brazil, offering home
entertainment, information, culture and education to its
subscribers through diversified Subscription TV (TVA), broadband
Internet (Ajato) and VoIP (TVA Voz) services. Supported by a
qualified infrastructure, it distributes its services via Cable
(digital and analog) and MMDS (digital and analog) technologies.
Today, its product portfolio includes TVA Digital, TVA DVR, TVA
HDTV, Portable TVA (Slingbox), Ajato and TVA Voz.
About Nortel Network
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges. Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.
* * *
As reported in the Troubled Company Reporter on Oct. 5, 2006
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS says all trends are stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
WILLBROS GROUP: Incurs US$105.4 Mil. Net Loss in Full Year 2006
---------------------------------------------------------------
Willbros Group Inc. reported its financial results for the
fourth quarter and the full year 2006. On revenue of US$543.3
million, from continuing operations, the net loss for the full
year 2006 was US$22.0 million, an improvement over the loss of
US$30.5 million in 2005. Net loss from discontinued operations
for the full year 2006 was US$83.4 million compared to US$8.3
million in 2005. Total net loss for the full year 2006 was
US$105.4 million compared to a net loss of US$38.8 million in
2005.
Randy Harl, President and Chief Executive Officer, commented,
"While our annual results were disappointing, 2006 was a year of
change and transition for Willbros. We spent much of our time,
effort and resources reducing the risks in our portfolio and
positioning the Company to take advantage of one of the most
robust markets we have seen in years. As a result, in the
fourth quarter of 2006, the revenue from North America and Oman
operations increased 52% compared to the third quarter of 2006
with improved contract margins. An important milestone in 2006
included deciding to sell the Nigerian operations. The Nigerian
sale and recent awards in North America, which exhibit better
terms and conditions and contract margins, resulted in
significantly improving the risk profile of our backlog.
Equally important was implementing more sophisticated business
processes and controls and obtaining the capital and financial
resources necessary to win projects that fit our risk profile.
Our markets in North America, where we are well positioned,
continue to exhibit strength. We are achieving our objective to
reduce general and administrative costs and are continuing to
refine our business processes and controls."
"In summary, we accomplished the goals we established in the
fourth quarter 2006 which are as follows:
* We sold Nigerian operations in February 2007.
* We reduced our G&A to a run rate to 6-8% of revenue going
forward.
* We delivered the revenue and contract margins per our
previous guidance."
Fourth Quarter 2006 Continuing Operations
The company reported revenue from continuing operations of
US$191.1 million in the fourth quarter of 2006 compared to
US$125.5 million in the third quarter of 2006 which represented
a 52% increase quarter over quarter. The increase in revenue
was due primarily to the startup of new projects in the fourth
quarter of 2006, which were delayed from starting in the third
quarter of 2006. Despite heavy rains and flooding at multiple
job sites, contract margin in the fourth quarter 2006 increased
to 11.6% from 9.6% in the third quarter of 2006.
General and Administrative expenses were US$20.2 million, 10.6%
of revenue, for the fourth quarter of 2006. G&A expenses
included severance charges of US$5.0 million related to
executive management changes. With the reductions made during
the fourth quarter of 2006, the Company expects its G&A expense
as a percentage of revenue to be in line with guidance of 6-8%
beginning in 2007.
The net loss from continuing operations from the fourth quarter
of 2006 was US$3.4 million compared to a net loss of US$5.0
million in the third quarter of 2006.
2006 Full Year Continuing Operations
The company reported revenue from continuing operations of
US$543.3 million for the full year 2006 compared to US$294.5
million in 2005, an 84% increase year over year. The increase
in revenue was due to higher levels of activity in engineering,
construction and engineering, procurement and construction
projects primarily in North America. Contract margin for 2006
increased to 9.9%, which was an improvement over 2005 contract
margin of 9.6%. G&A expenses were US$53.4 million, 9.8% of
revenue, in 2006 compared to US$42.4 million, 14.4% of revenue,
in 2005.
2006 Discontinued Operations
Discontinued operations reported an US$83.4 million loss for the
full year of 2006 and US$37.2 million loss for the fourth
quarter of 2006. Losses from discontinued operations are almost
entirely attributable to our Nigeria operations. The operating
results in Nigeria for 2006 were negatively impacted by:
* schedule delays;
* increasing costs related to labor, equipment, materials,
and security;
* disputes with clients related to change orders; and
* the lack of revenues on certain projects due to force
majeure.
While in the process of selling our Nigerian operations, the
company incurred costs to protect the value of our franchise in
Nigeria by continuing to qualify for future projects and by
maintaining a certain level of workforce.
About Willbros
Willbros Group, Inc. (NYSE:WG) -- http://www.willbros.com/-- is
an independent contractor serving the oil, gas and power
industries, providing engineering and construction, and
facilities development and operations services to industry and
government entities worldwide. Willbros has operations in
Indonesia.
Long-term Debt Waivers
During the period from Nov. 23, 2005, to June 14, 2006, the
company entered into four additional amendments and waivers to
the 2004 Credit Facility with its syndicated bank group to waive
non-compliance with certain financial and non-financial
covenants. Among other things, the amendments provided that:(1)
ertain financial covenants and reporting obligations were waived
and/or modified to reflect the Company's current and anticipated
future operating performance; (2) the ultimate reduction of the
facility to US$70,000 for issuance of letter of credit
obligations only; and (3) a requirement for the Company to
maintain a minimum cash balance of US$15,000.
=========
J A P A N
=========
AMERICAN AIRLINES: Earns US$164 Million in Year Ended Dec. 31
-------------------------------------------------------------
American Airlines Inc. reported net earnings of US$164 million
on total operating revenues of US$22.49 billion for the year
ended Dec. 31, 2006, compared with a net loss of US$892 million
on total operating revenues of US$20.657 billion in 2005.
The company's 2006 earnings were due in part to the company's
success in implementing fare increases to partially offset
higher fuel prices. In 2006, mainline passenger load factor
increased 1.5 points year-over-year to 80.1% and mainline
passenger revenue yield increased 6.7% year-over-year.
Offsetting these fare increases, the company's 2006 fuel expense
increased US$704 million compared to 2005 despite a decrease in
mainline capacity of more than one percent. In 2006, the price
of a gallon of jet fuel was 129.5% higher than in 2003 and the
company's fuel expense was US$3.2 billion higher in 2006 than in
2003 on a mainline capacity increase of approximately 5%.
At Dec. 31, 2006, the company's balance sheet showed
US$25.85 billion in total assets and US$26.916 billion in to
al liabilities, resulting in a US$1.066 billion total
stockholders' deficit.
The company's balance sheet at Dec. 31, 2006, also showed
strained liquidity with US$6.75 billion in total current assets,
available to pay US$9.117 billion in total current liabilities.
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?1abc
Cash Flow
At Dec. 31, 2006, the company had US$4.6 billion in unrestricted
cash and short-term investments and US$468 million in restricted
cash and short-term investments.
The company's cash flow from operating activities improved in
2006. Net cash provided by operating activities during the year
ended Dec. 31, 2006 was US$1.6 billion, an increase of
US$865 million over 2005, due primarily to an improved revenue
environment and the impact of certain company initiatives to
improve revenue.
Capital expenditures during 2006 were US$508 million and
primarily included the acquisition of two Boeing 777-200ER
aircraft and the cost of improvements at the John F. Kennedy
International Airport. Substantially all of the company's
construction costs at JFK are being reimbursed through a fund
established from a previous financing transaction.
About American Airlines
American Airlines -- http://www.AA.com/-- is the world's
largest airline. American, American Eagle and the
AmericanConnection regional airlines serve more than 250 cities
in over 40 countries with more than 3,800 daily flights.
American Airlines flies to Belgium, Brazil, Japan, among others.
The combined network fleet numbers more than 1,000 aircraft.
American Airlines is a founding member of the oneworld Alliance,
whose members serve more than 600 destinations in over 135
countries and territories.
American Airlines, Inc. and American Eagle are subsidiaries of
AMR Corp.
* * *
As reported in the Troubled Company Reporter on Nov. 21, 2006,
Moody's Investors Service affirmed its 'B3' Corporate Family
rating for AMR Corp. and its subsidiary, American Airlines Inc.
FORD MOTOR: In Talks w/ Navistar on Diesel Engine Price Dispute
---------------------------------------------------------------
Ford Motor Co. and Navistar International Corp. are in
negotiation to temporarily settle a long-running pricing dispute
over diesel engines Navistar supplies for Ford's heavy-duty F-
Series pickups, Jeff McCracken of The Wall Street Journal
reports.
The negotiation follows the automaker and the engine supplier's
motion Wednesday last week asking Oakland County Circuit Court
Judge John McDonald to delay ruling on the companies' pricing
dispute.
Judge McDonald ordered the two sides to negotiate yesterday and
today, the Journal said.
According to the source, Navistar will for now continue to ship
diesel engines to Ford, which are used in the Ford Super Duty F-
Series pick-up truck line.
The dispute, the report said, goes back over a year, involving a
previous diesel truck engine Navistar built for Ford from 2002
through the end of 2006. It also involves a new engine Navistar
began shipping last month with the launch of the redesigned Ford
F-Series Super Duty pick-up truck.
The F-series pick-up truck is Ford's best-selling and most
profitable line of vehicles, the Journal relates.
Navistar, the Journal says, is the sole supplier of diesel
engines to Ford, producing 225,000 to 300,000 of them a year.
Last week, Ford estimated US$11,182 million in total life-time
costs for restructuring actions.
Of the total US$11,182 million of estimated costs, Ford said
that US$9,982 million has been accrued in 2006 and the balance,
which is primarily related to salaried personnel-reduction
programs, is expected to be accrued in the first quarter of
2007.
The company expects a curtailment gain for other postretirement
employee benefit obligations related to hourly personnel
separations that occur in 2007, which gain the company expects
to record in 2007. Of the estimated costs, those relating to
job bank benefits and personnel-reduction programs also
constitute cash expenditure estimates.
The restructuring cost estimates relate to the automaker's
previously announced commitment to accelerate its restructuring
plan, referred to as Way Forward plan.
The "Way Forward" plan includes closing plants and laying off up
to 45,000 employees.
Ford, which incurred a US$12,613 million net loss on
US$160,123 million of total sales and revenues for the year
ended Dec. 31, 2006, said in a regulatory filing with the
Securities and Exchange Commission that its overall market share
in the United States has declined in each of the past five
years, from 21.1% in 2002 to 17.1% in 2006. The decline in
overall market share primarily reflects a decline in the
company's retail market share, which excludes fleet sales,
during the past five years from 16.3% in 2002 to 11.8% in 2006,
the automaker said.
Ford also reported a US$16.9 billion decrease in its
stockholders' equity at Dec. 31, 2006, which, according to the
company, primarily reflected 2006 net losses and recognition of
previously unamortized changes in the funded status of the
company's defined benefit postretirement plans as required by
the implementation of Statement of Financial Accounting
Standards No. 158, offset partially by foreign currency
translation adjustments.
About Navistar International Corp.
Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp. The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market. The company
also provides truck and diesel engine parts and service sold
under the International brand. A wholly owned subsidiary offers
financing services.
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: To Use LOSA To Decrease Human Flight Errors
-----------------------------------------------------------
Japan Airlines will introduce Line Operation Safety Audit
(LOSA), a program for the management of human error in flight
operations. Through introducing the system, JAL aims to further
decrease human error and improve operational quality.
LOSA, a program recommended by the U.S. Federal Aviation
Administration and the International Civil Aviation
Organization, the world body responsible for civil aviation, was
developed in 1990 by the University of Texas with the support of
the FAA. LOSA uses regular monitoring of flight line operations
to discover trends in handling human errors and factors that
trigger human errors of each airline by analyzing and evaluating
results of the monitoring.
For three months from April 2007, in the largest LOSA program
ever performed on one airline, monitoring personnel from TLC, a
LOSA operating company, and JAL flight crew who have received
training on LOSA, will travel on 435 domestic and international
flights, and observe flight crew performance and actual flight
conditions from the human factor viewpoint. TLC will
scientifically analyze the results of these observations, and
JAL will implement any necessary corrective actions based on the
results of the analyses. The effects of corrective actions will
be verified in future through continually monitoring.
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.
METHANEX CORP: Board Declares Quarterly Cash Dividend
-----------------------------------------------------
Methanex Corporation's Board of Directors has declared a
quarterly dividend of US$0.125 per share that will be payable on
March 31 to holders of common shares of record on
Mar. 16, 2007. The Board has designated this dividend as an
"eligible dividend" for the purposes of Canadian tax law.
Methanex's Board also approved an increase in the company's
current normal course issuer bid, increasing the maximum
allowable repurchase by 2 million common shares to 7,495,763
shares, representing about 8 per cent of the public float as at
May 8, 2006. As at the close of business on Mar. 2, 2007, the
Company had repurchased 5,000,000 common shares under the bid at
an average price of US$23.85 (CDN$27.17) per share.
Bruce Aitken, president and CEO of Methanex commented, "We have
generated significant cash flow from operating activities over
the past year. The extension of our share repurchase program
reflects our balanced approach to the utilization of cash and
demonstrates our ongoing commitment to returning excess cash to
shareholders." Mr. Aitken added, "We have excellent financial
strength and flexibility with US$355 million in cash at the end
of the fourth quarter of 2006, an undrawn US$250 million credit
facility and an outlook for continued strong cash generation."
The normal course issuer bid repurchase program was originally
filed and accepted by the Toronto Stock Exchange (TSX) on
May 9, 2006. The program is carried out through the facilities
of the TSX. Purchases under the program, which commenced on
May 17, 2006, will terminate on the earlier of May 16, 2007, and
the date upon which the Company has acquired the maximum number
of common shares permitted under the program or otherwise
decided not to make further purchases. Purchases will be made
from time to time at the then current market price of the
Company's common shares as traded on the TSX and the common
shares purchased will be cancelled.
About Methanex Corp.
Headquartered in Vancouver, British Columbia, Methanex Corp. --
http://www.methanex.com-- is a producer and marketer of
methanol. The company has locations in Belgium, Chile, China,
Japan, Trinidad and the United Kingdom, among others.
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Chemicals and Allied Products sector,
the rating agency confirmed its Ba1 Corporate Family Rating for
Methanex Corp.
Moody's also affirmed its probability-of-default ratings and
assigned loss-given-default ratings to these two bond issues:
Projected
POD LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- ----------
US$200 million
8.75%
Sr Unsec Notes
due 2012 Ba1 LGD4 56%
US$150 million
6.00%
Sr Unsec Notes
due 2015 Ba1 LGD4 56%
NIKKO CORDIAL: 3-Way Tie-Up With Citigroup and Mizuho Looms
-----------------------------------------------------------
Mizuho Financial Group Inc. and Citigroup Inc. have decided to
look at the possibility of a three-way alliance with
Nikko Cordial Crop, after Nikko becomes a Citigroup subsidiary,
The Japan Times reports.
Japan Today states that Mizuho Corporate Bank President Hiroshi
Saito and Citigroup Chef Executive Officer Charles Prince came
into terms with the move through several phone calls over the
last few days.
The Troubled Company Reporter - Asia Pacific reported on
Mar. 7, 2007, that Citigroup aims to acquire more than 50% --
worth up to JPY1.25 trillion -- of Nikko Cordial through a
tender offer.
The Japan Times states that Mizuho Financial, which owns 5% of
Nikko Cordial, is in favor a Citigroup takeover.
MarketWatch believes that Mizuho's stake, if unsold, could
hinder Citigroup's bid for a total takeover of Nikko Cordial's
operations, but keeping Mizuho involved as a shareholder could
benefit Citigroup as it could facilitate investment banking
deals with companies close to Mizuho.
The Japan Times states that Citigroup seeks to broaden its
retail banking operations in the Japanese financial asset market
work JPY1,500 trillion, while Mizuho is looking to expand its
brokerage services to corporate customers operating in
North America.
The report adds that the Citigroup and Mizuho Financial are
looking to team up in operations such as loans, credit card
services, investment trusts, fundraising, and mergers and
acquisition activities.
The Troubled Company Reporter - Asia Pacific reported on Mar 08,
2007 that Moody's Investors Service placed the Baa3 issuer
rating of Nikko Cordial Corporation, and the Baa2 issuer
rating/Commercial Paper P-2 rating of Nikko Cordial Securities
under review for upgrade. This follows the announcement of a
comprehensive strategic alliance between Citigroup and Nikko
Cordial under which Citigroup will launch a tender offer to
become Nikko Cordial's majority shareholder. The TCR-AP stated
that the ratings were previously on review for downgrade, due to
the ongoing impact of the accounting fraud and potential
delisting of Nikko Cordial Corporation. The Aa2/P-1 long-
term/short-term ratings of Nikko Citigroup are unaffected.
About Mizuho Financial Group Inc.
Headquartered in Tokyo, Japan, Mizuho Financial Group, Inc. --
http://www.mizuho-fg.co.jp/english/-- is a financial
institution. The company primarily is engaged in the banking,
trust, securities, asset management and credit card businesses,
as well as the investment advisory business. Through its
subsidiaries, Mizuho Financial Group also is engaged in the
consulting, system management, credit guarantee, temporary
staffing and office work businesses, among others. Its main
subsidiaries and associated companies include Mizuho Bank, Ltd.,
Mizuho Trust & Banking Co. (USA), Mizuho Trust & Banking
(Luxembourg) SA, Mizuho Corporate Bank, Ltd., Mizuho Trust &
Banking Co., Ltd., Mizuho Private Wealth Management Co., Ltd.,
Mizuho Financial Strategy Co., Ltd., Mizuho Capital Markets
Corporation, Mizuho Securities Co., Ltd., Mizuho Bank
Switzerland Ltd., Mizuho International plc., Mizuho Securities
USA, Inc. and Mizuho Investors Securities Co., Ltd. The company
has 130 consolidated subsidiaries and 19 associated companies.
About Citigroup
Headquartered in New York, Citigroup --
http://www.citigroup.com/-- is today's pre-eminent financial
services company, with some 200 million customer accounts in
more than 100 countries. Other major brand names under
Citigroup's trademark red umbrella include Citi Cards,
CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners
Club, The Citigroup Private Bank, and CitiCapital.
About Nikko Cordial
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The Company
operates in four business segments. The Retail segment provides
consulting services for financial products management.
The Asset Management segment provides asset management services
for individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services.
The Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore.
The company has a global network.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Feb. 13, 2007, that Fitch Ratings has downgraded Nikko Cordial
Corporation's Long- term foreign and local currency Issuer
Default ratings to 'BBB-' from 'BBB', the Short-term foreign and
local currency IDRs to 'F3' from 'F2', and the Individual rating
to 'C/D' from 'C'.
The TCR-AP reported on Dec. 22, 2006, that Fitch placed its
ratings on Nikko Cordial Corp. and Nikko Cordial Securities Inc.
on Rating Watch Negative following the decision announced on
Dec. 18 by the Tokyo Stock Exchange to place the shares of NCC
on its official watchlist pending the full investigation into
reported accounting breaches by the company.
As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating Nikko
Cordial for falsifying its annual financial statements for the
business year ended March 30, 2005, declaring JPY14 billion in
false profits, and using them to procure money from the market.
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.
57; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
NORTHWEST AIRLINES: Posts US$30-Mil. Net Loss in December 2006
--------------------------------------------------------------
Northwest Airlines Corporation
Unaudited Condensed Consolidated Balance Sheet
As of December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents US$1,461,000,000
Unrestricted short-term investments 597,000,000
Restricted cash, cash equivalents &
short-term investments 424,000,000
Accounts receivable, net 638,000,000
Flight equipment spare parts, net 104,000,000
Prepaid expenses & other 342,000,000
---------------
Total current assets 3,566,000,000
Property and equipment:
Flight equipment, net 7,609,000,000
Other property & equipment, net 571,000,000
---------------
Total property & equipment 8,180,000,000
Flight Equipment under capital leases, net 12,000,000
Other assets:
International routes 634,000,000
Investments in affiliated companies 42,000,000
Other 781,000,000
---------------
Total other assets 1,457,000,000
---------------
Total assets US$13,215,000,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Air traffic liability US$1,557,000,000
Accounts payable & other liabilities 1,441,000,000
Current maturities of long-term debt
& capital lease obligations 213,000,000
---------------
Total current liabilities 3,211,000,000
Long-term debt 3,899,000,000
Deferred Credits & other liabilities:
Long-term pension & postretirement
Health care benefits 86,000,000
Other 161,000,000
---------------
Total deferred credits & other liabilities 247,000,000
Liabilities Subject to Compromise 13,572,000,000
Preferred redeemable stock subject to Compromise 277,000,000
Common Stockholders' Equity (Deficit)
Common stock 1,000,000
Additional paid-in capital 1,505,000,000
Accumulated deficit (7,384,000,000)
Accumulated other comprehensive
income (loss) (1,100,000,000)
Treasury stock (1,013,000,000)
---------------
Total common stockholders' equity (deficit) (7,991,000,000)
---------------
Total Liabilities &
Stockholders' Equity (deficit) US$13,215,000,000
Northwest Airlines Corporation
Unaudited Condensed Consolidated Statement of Operations
For Month Ended December 31, 2006
Operating Revenues
Passenger US$729,000,000
Regional carrier revenues 90,000,000
Cargo 71,000,000
Other 77,000,000
---------------
Total Operating Revenues 967,000,000
Operating Expenses
Aircraft fuel and taxes 275,000,000
Salaries, wages, and benefits 209,000,000
Selling and marketing 63,000,000
Aircraft maintenance materials and repair 81,000,000
Other rentals and landing fees 33,000,000
Depreciation and amortization 46,000,000
Aircraft rentals 17,000,000
Regional carrier expenses 103,000,000
Other 149,000,000
Other unusual items 1,000,000
---------------
Total Operating Expenses 977,000,000
Operating Income (Loss) (10,000,000)
Other Income (Expense)
Interest expense, net (45,000,000)
Investment income 11,000,000
Reorganization items, net (24,000,000)
Other, net 3,000,000
---------------
Total other income (expense) (55,000,000)
---------------
Income (Loss) Before Income Taxes (65,000,000)
Income tax expense (benefit) (35,000,000)
---------------
Net Income (Loss) ($30,000,000)
Northwest Airlines Corporation
Unaudited Condensed Consolidated Statement of Cash Flows
For Month Ended December 31, 2006
Cash Flows from Operating Activities:
Net income (loss) ($30,000,000)
Adjustments to reconcile net loss to net
cash provided by (used in)
operating activities:
Depreciation and amortization 46,000,000
Pension and other postretirement benefit
contributions less than expense 9,000,000
Changes in certain assets & liabilities (67,000,000)
Long-term vendor deposits/holdbacks 20,000,000
Reorganization items 24,000,000
Other, net (37,000,000)
---------------
Net cash used in operating activities (35,000,000)
Cash Flows from Reorganization Activities:
Net cash provided by (used in)
reorganization activities 1,000,000
Cash Flows from Investing Activities:
Capital expenditures (159,000,000)
Proceeds from sales of short term investment (8,000,000)
Decrease (increase) in restricted
cash, cash equivalents &
short-term investments (24,000,000)
Other, net 1,000,000
---------------
Net cash provided by (used in) investing
activities (190,000,000)
Cash Flows from Financing Activities:
Proceeds from long-term debt 779,000,000
Payments of long-term debt and capital
lease obligations (771,000,000)
Other, net (16,000,000)
---------------
Net cash provided by (used in)
financing activities (8,000,000)
---------------
Increase (Decrease) in Cash and
Cash Equivalents (232,000,000)
Cash & cash equivalents at beginning of period 1,693,000,000
---------------
Cash & cash equivalents at end of period US$1,461,000,000
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)
NORTHWEST AIRLINES: Posts US$349-Mil. Net Loss in January 2007
--------------------------------------------------------------
Northwest Airlines Corporation
Unaudited Condensed Consolidated Balance Sheet
As of January 31, 2007
ASSETS
Current assets:
Cash and cash equivalents US$1,622,000,000
Unrestricted short-term investments 614,000,000
Restricted cash, cash equivalents &
short-term investments 512,000,000
Accounts receivable, net 619,000,000
Flight equipment spare parts, net 103,000,000
Prepaid expenses & other 346,000,000
---------------
Total current assets 3,816,000,000
Property and equipment:
Flight equipment, net 7,694,000,000
Other property & equipment, net 566,000,000
---------------
Total property & equipment 8,260,000,000
Flight Equipment under capital leases, net 12,000,000
Other assets:
International routes 634,000,000
Investments in affiliated companies 41,000,000
Other 683,000,000
---------------
Total other assets 1,358,000,000
---------------
Total assets US$13,446,000,000
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Air traffic liability US$1,720,000,000
Accounts payable & other liabilities 1,511,000,000
Current maturities of long-term debt
& capital lease obligations 211,000,000
---------------
Total current liabilities 3,442,000,000
Long-term debt 3,954,000,000
Deferred Credits & other liabilities:
Long-term pension & postretirement
health care benefits 86,000,000
Other 161,000,000
---------------
Total deferred credits & other liabilities 247,000,000
Liabilities Subject to Compromise 13,866,000,000
Preferred redeemable stock subject to Compromise 275,000,000
Common Stockholders' Equity (Deficit)
Common stock 1,000,000
Additional paid-in capital 1,506,000,000
Accumulated deficit (7,732,000,000)
Accumulated other comprehensive
income (loss) (1,100,000,000)
Treasury stock (1,013,000,000)
---------------
Total common stockholders' equity (deficit) (8,338,000,000)
---------------
Total Liabilities &
Stockholders' Equity (deficit) US$13,446,000,000
Northwest Airlines Corporation
Unaudited Condensed Consolidated Statement of Operations
For Month Ended January 31, 2007
Operating Revenues
Passenger US$692,000,000
Regional carrier revenues 87,000,000
Cargo 60,000,000
Other 53,000,000
---------------
Total Operating Revenues 892,000,000
Operating Expenses
Aircraft fuel and taxes 265,000,000
Salaries, wages, and benefits 202,000,000
Aircraft maintenance materials and repair 62,000,000
Selling and marketing 57,000,000
Other rentals and landing fees 47,000,000
Depreciation and amortization 39,000,000
Aircraft rentals 32,000,000
Regional carrier expenses 71,000,000
Other 139,000,000
---------------
Total Operating Expenses 914,000,000
Operating Income (Loss) (22,000,000)
Other Income (Expense)
Interest expense, net (45,000,000)
Investment income 9,000,000
Reorganization items, net (291,000,000)
Other, net -
---------------
Total other income (expense) (327,000,000)
---------------
Income (Loss) Before Income Taxes (349,000,000)
Income tax expense (benefit) -
---------------
Net Income (Loss) (US$349,000,000)
Northwest Airlines Corporation
Unaudited Condensed Consolidated Statement of Cash Flows
For Month Ended January 31, 2007
Cash Flows from Operating Activities:
Net income (loss) (US$349,000,000)
Adjustments to reconcile net loss to net
cash provided by (used in)
operating activities:
Depreciation and amortization 39,000,000
Pension and other postretirement benefit
contributions less than expense (2,000,000)
Changes in certain assets & liabilities 227,000,000
Long-term vendor deposits/holdbacks 86,000,000
Reorganization items 291,000,000
Other, net 3,000,000
---------------
Net cash provided by operating activities 295,000,000
Cash Flows from Reorganization Activities:
Net cash provided by (used in)
reorganization activities 6,000,000
Cash Flows from Investing Activities:
Capital expenditures (5,000,000)
Proceeds from sales of short term investment (15,000,000)
Decrease (increase) in restricted
cash, cash equivalents &
short-term investments (88,000,000)
Other, net 1,000,000
---------------
Net cash provided by (used in) investing
activities (107,000,000)
Cash Flows from Financing Activities:
Proceeds from long-term debt -
Payments of long-term debt and capital
lease obligations (33,000,000)
Other, net -
---------------
Net cash provided by (used in)
financing activities (33,000,000)
---------------
Increase (Decrease) in Cash and
Cash Equivalents 161,000,000
Cash & cash equivalents at beginning of period 1,461,000,000
---------------
Cash & cash equivalents at end of period US$1,622,000,000
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)
ON SEMICONDUCTOR: Moody's Rates Amended & Restated Facility Ba1
----------------------------------------------------------------
Moody's Investors Service upgraded the corporate family ratings
of ON Semiconductor Corporation to B1 from B2 and assigned a Ba1
rating to the amended and restated credit facility. Moody's
will withdraw the ratings on the existing US$200 million term
loan and US$25 million revolver upon completion of the facility
amendment.
The ratings outlook remains positive.
The upgrade reflects ongoing improvements to the company's
capital structure, which has enhanced credit metrics and
improved financial flexibility by reducing borrowing costs and
extending near-term debt maturities. Importantly, the upgrade
reflects continued good internal execution on cost reduction,
manufacturing improvements, inventory management and supply
chain optimization that have resulted in margin expansion and
higher gross cash flows compared to prior year periods. It also
factors in the company's broad product portfolio, diversified
end markets, more favorable product mix and strong product
development strategy, which has resulted in ON Semi's move up
the value chain. Moody's notes that ON Semi's financial metrics
suggest a Ba3 rating, however the rating is constrained by the
increase in fixed costs related to the new Gresham fab,
potential heightened competition and some modest customer
concentration.
The positive outlook reflects the company's dedicated focus on
reducing debt and interest expense and Moody's expectation of
continued capital structure improvements. It also factors
Moody's expectation that the company will achieve above-average
revenue growth and expand gross and operating margins in
connection with incremental benefits from increasing
semiconductor content within OEM/ODM platforms, a gradual shift
to higher margin power products and continued cost savings. The
current ratings and outlook incorporate expectations of
expanding free cash flow, minimal acquisition activity and
limited share repurchases.
Ratings upgraded:
* Corporate Family Rating to B1 from B2
* Probability of Default Rating to B1 from B2
These new ratings were assigned to the amended and restated
credit facility:
* US$25 million Guaranteed Senior Secured Revolving Credit
Facility due 2013 to Ba1, LGD1, 4%
* US$175 million Guaranteed Senior Secured Term Loan maturing
through 2013 to Ba1, LGD1, 4%
These ratings will be withdrawn upon completion of the facility
amendment:
* US$25 million Guaranteed Senior Secured Revolving Credit
Facility due 2008, Ba3, LGD2, 25%
* US$200 million Guaranteed Senior Secured Term Loan Tranche
H due 2009, Ba3, LGD2, 25%
The ratings outlook is positive.
About ON Semiconductor
ON Semiconductor -- http://www.onsemi.com/-- supplies power
solutions to engineers, purchasing professionals, distributors
and contract manufacturers in the computer, cell phone, portable
devices, automotive and industrial markets. The company has
operations in Japan and the Czech Republic.
* * *
ON Semiconductor Corp.'s bank loan debt and long-term corporate
family rating carry Moody's B2 ratings. The ratings were placed
on Dec. 15, 2005 with a positive outlook.
===============
M A L A Y S I A
===============
LITYAN HOLDINGS: Court Moves Certoriari Hearing to April 12
-----------------------------------------------------------
The Kuala Lumpur High Court has moved to April 12, 2007, the
hearing for Lityan Holdings Bhd's ex-parte application for leave
to issue a certiorari to squash the decision of the Securities
Commission rejecting the company's Proposed Restructuring
Scheme.
In the interim, Bursa Securities Malaysia Berhad also agreed to
stay the delisting of the company's securities until April 12.
As reported by the Troubled Company Reporter - Asia Pacific on
June 19, 2006, Bursa Malaysia commenced delisting procedures
against Lityan Holdings after the Securities Commission did not
approve the proposed restructuring scheme of the company.
According to the TCR-AP, the Securities Commission raised a
concern regarding Lityan's Proposed Scheme.
* * *
Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding. The Group carries out its operations in
Malaysia and the Philippines.
On May 10, 2005, the Company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category. On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring itself onto stronger financial footing via an
injection of new viable businesses.
Lityan Holdings Bhd's unaudited balance sheet as of December 31,
2006, showed total assets of MYR66.35 million and total
liabilities of MYR148.19 million, resulting to a shareholders'
deficit of MYR81.84 million.
LITYAN HOLDINGS: Loan Default Amounts to MYR19.12MM in Feb. '07
---------------------------------------------------------------
Lityan Holdings Bhd filed before the Bursa Malaysia Securities
Bhd an update on the status of its default to credit facilities
as of Feb. 28, 2007.
As of end-January 2006, Lityan Holdings' default plus interest
owed to various credit facilities total MYR19.12 million.
Total Principal and
Lender Type of Facility Interest in Default
------ ---------------- -------------------
RHB Bank Berhad Overdraft Facility MYR290,590.35
of MYR225,000/-
RHB Bank Berhad Overdraft Facility 581,250.14
of MYR450,000/-
Bank Islam Malaysia Letter of Credit 10,582,811.77
Berhad Labuan Facility/Murabah
Offshore Branch Working Capital
(Formerly known as Financing/Revolving
Bank Islam (L) Ltd) Al-Bai-Bithaman-Ajil
Facility of US$10 mil.
(Secured)
Bank Islam Malaysia Revolving Al-Bai- 6,388,836.24
Berhad Labuan Bithaman-Ajil Facility
Offshore Branch of US$5 million
(secured)
Ambank Berhad Overdraft Facility 1,275,635.44
of MYR1 million ----------------
MYR19,119,123.94
Lityan also told the bourse that it is currently looking into
other business opportunities within its core activities and also
actively taking steps to dispose the Group's non-core
investments and non-operating assets to address its current
financial position.
The company also clarified that its three subsidiaries, Lityan
Systems Sdn Berhad, Digital Transmission Systems Sdn Bhd and
Lityan (L) Incorporated, which have defaulted in various credit
facilities to the financial institutions, are not major
subsidiaries.
* * *
Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding. The Group carries out its operations in
Malaysia and the Philippines.
On May 10, 2005, the Company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category. On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring itself onto stronger financial footing via an
injection of new viable businesses.
Lityan Holdings Bhd's unaudited balance sheet as of December 31,
2006, showed total assets of MYR66.35 million and total
liabilities of MYR148.19 million, resulting to a shareholders'
deficit of MYR81.84 million.
MBf CORP: Incurs MYR6.34-Mil. Net Loss in Fourth Quarter 2006
-------------------------------------------------------------
MBf Corp Bhd posted a net loss of MYR6.34 million on
MYR4.64 million of revenues in the fourth quarter ended Dec. 31,
2006, as compared with the MYR244.95-million net loss on
MYR6.95 million of revenues in the same period in 2005.
As of Dec. 31, 2006, the company's unaudited balance sheet
showed current assets of MYR133.76 million available to pay
current liabilities of MYR77.17 million.
MBf Corp's total assets as of Dec. 31, 2006, amounted to
MYR377.25 million and total liabilities aggregated to
MYR254.43 million, resulting to a shareholders' equity of
MYR122.83 million.
A full-text copy of the company's financial statement for the
quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/mbf-4q-results.xls
* * *
Headquartered in Kuala Lumpur, Malaysia, MBf Corporation Berhad
is principally involved in promoting and selling property, club
and timeshare memberships; leasing factoring facilities, credit
cards, consumer financing and related products and property
development. Other activity include investment holding.
The Group operates in three main areas, namely, Malaysia,
Indonesia and Hong Kong and Taiwan collectively. The Group's
principal activities are mainly operated in Malaysia except for
the credit card business, which is carried out in Indonesia.
The Group has no significant operations in Hong Kong and Taiwan
other than certain residual assets from a subsidiary that has
since been liquidated in Taiwan.
The Company is classified under Bursa Malaysia Securities
Berhad's Practice Note 17 category and is required to formulate
a plan to raise its shareholders' equity to avoid getting
delisted.
OCI BERHAD: Posts MYR4.99MM Net Loss in Quarter Ended Dec. '06
--------------------------------------------------------------
OCI Bhd incurred a net loss of MYR4.99 million on
MYR22.78 million of revenues in the second quarter ended
Dec. 31, 2006, as compared with a net loss of MYR318,000 on
MYR29.38 million of revenues in the same quarter in 2005.
As of Dec. 31, 2006, the company's unaudited balance sheet
reflected strained liquidity with current assets of
MYR56.38 million available to pay current liabilities of
MYR72.54 million.
OCI's total assets as of Dec. 31, 2006, amounted to
MYR104 million and total liabilities aggregated to
MYR90.96 million, resulting to a shareholders' equity of
MYR13.04 million.
A full-text copy of the company's financial statement for the
quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/oci-2q-results.xls
* * *
OCI Berhad manufactures adhesives used in the production of
shoes for the footwear, toy making, building/construction,
automotive, furniture and packaging industries.
The company is an affected listed issuer under Bursa Malaysia
Securities Berhad's Practice Note 17 category as the auditors
have expressed a modified opinion with emphasis on the company's
going concern in the company's audited financial statements for
the financial year ended June 30, 2006. Moreover, the
shareholders' equity of the company on a consolidated basis as
at June 30, 2006, represented 40.8% of the company's issued and
paid-up capital.
PANGLOBAL BERHAD: Books MYR20.59-Mil. Net Loss in 2006 4th Qtr
--------------------------------------------------------------
Panglobal Bhd incurred a net loss of MYR20.59 million on
MYR62.07 million of revenues in the fourth quarter ended
Dec. 31, 2006, as compared with a net loss of MYR21.41 million
on MYR71.45 million of revenues in the same period in 2005.
As of Dec. 31, 2006, the company's unaudited balance sheet
showed strained liquidity with current assets of
MYR191.27 million available to pay current liabilities of
MYR286.60 million.
In addition, Panglobal's balance sheet also reflected solvency
problems with total assets of MYR1.07 billion and total
liabilities of MYR680.26 million, resulting to a shareholders'
equity of MYR388.67 million.
A full-text copy of the company's financial report in the
quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/pan-4q-results.xls
* * *
Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.
PanGlobal is listed under Practice Note 4/2001. The Bursa
Malaysia Securities has required the company to regularize its
financial condition, curb huge losses and settle debts in order
to continue operating. The company has already submitted a
Proposed Restructuring Scheme to the Securities Commission on
Sept. 9, 2005. On April 6, 2006, the Securities Commission
approved PanGlobal Berhad's proposed restructuring scheme.
Panglobal's balance sheet as of Dec. 31, 2006, reflected
solvency problems with total assets of MYR1.07 billion and total
liabilities of MYR680.26 million, resulting to a shareholders'
equity of MYR388.67 million.
PAN MALAYSIAN: Balance Sheet Upside Down by MYR87.5MM at Dec. 31
----------------------------------------------------------------
Pan Malaysian Industries Bhd's balance sheet went upside-down
with a shareholders' deficit of MYR87.47 million as of Dec. 31,
2006. The company recorded total assets of MYR657.26 million
and total liabilities of MYR744.72 million as of end-December
2006.
In addition, the company's unaudited balance sheet as at
Dec. 31, 2006, reflected strained liquidity with current assets
of MYR204.90 million available to pay current liabilities of
MYR448.78 million.
Pan Malaysian also incurred a net loss of MYR122.63 million on
MYR1,000 of revenues in the third quarter ended Dec. 31, 2006,
as compared with a net loss of MYR123.17 million on MYR28,000 of
revenues in the same quarter 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/pmi-3q-results.pdf
* * *
Headquartered in Kuala Lumpur, Malaysia, Pan Malaysian
Industries Berhad is involved in the operation of departmental
and specialty stores and hypermarket. Its other activities
include investment and property holding. The Group's operation
is predominantly in Malaysia, Hong Kong and Singapore.
The Group has been suffering recurring losses since 1999.
Moreover, Pan Malaysian Industries Bhd's balance sheet went
upside down with a shareholders' deficit of MYR87.47 million as
of Dec. 31, 2006. The company's balance sheet showed total
assets of MYR657.26 million and total liabilities of
MYR744.72 million.
PARK MAY: Dec. 31 Shareholders' Deficit at MYR57.25 Million
-----------------------------------------------------------
Park May Bhd's unaudited balance sheet as of Dec. 31, 2006,
showed solvency problems with total assets of MYR39.25 million
and total liabilities of MYR96.51 million, resulting to a
shareholders' deficit of MYR57.25 million.
In addition, the company's balance sheet as of end-December 2006
also showed strained liquidity with current assets of
MYR13.06 million available to pay current liabilities of
MYR90.24 million.
Park May also incurred a net loss of MYR1.99 million on
MYR13.24 million of revenues in the fourth quarter ended
Dec. 31, 2006, as compared with a net profit of MYR1.34 million
on MYR9.15 million revenues in the same quarter 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/park-4q-results.xls
* * *
Headquartered in Kuala Lumpur, Malaysia, Park May Berhad --
http://www.parkmayberhad.com/-- provides public bus
transportation in Peninsular Malaysia, categorized as stage bus
and express bus. Its other activities include operation and
construction of light rail transit system, trading and property
holding, and investment holding and managing operation.
The Company has defaulted in its payment of monthly interest of
MYR1.1 million on its MYR135.6-million Combined and Converted
Short Term Loan Facility due on April8, 1999. On December 30,
1999, the Corporate Debt Restructuring Committee successfully
assisted Park May Berhad to finalize a debt-restructuring scheme
with its lenders and main suppliers involving debt outstanding
as at even date of MYR146 million. On April 17, 2000, the
Securities Commission approved Park May's Proposals. On
February 28, 2003, Park May registered a deficit in
shareholders' equity on a consolidated basis of MYR23.17
million, making it an affected listed issuer under Bursa
Malaysia Securities' Practice Note 4 category. As an Affected
Listed Issuer, the Company is required to regularize its
financial condition.
Park May Bhd's unaudited balance sheet as of Dec. 31, 2006,
showed solvency problems with total assets of MYR39.25 million
and total liabilities of MYR96.51 million, resulting to a
shareholders' deficit of MYR57.25 million.
=====================
N E W Z E A L A N D
=====================
CASTLE SECURITY: Wind-Up Petition Hearing Slated for March 12
-------------------------------------------------------------
The Commissioner of Inland Revenue filed on Jan. 30, 2007, a
petition to wind up the operations of Castle Security Ltd.
The Wind-Up Petition will be heard before the High Court of
Christchurch on March 12, 2007, at 10:30 a.m.
The CIR's solicitor can be reached at:
Julia Dykema
c/o Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception
518 Colombo Street
PO Box 1782, Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
CHRISTCHURCH FINANCE: Creditors Must Prove Debts by March 19
------------------------------------------------------------
On Feb. 23, 2007, the shareholders of Christchurch Finance Ltd.
resolved to liquidate the company's business.
Accordingly, the company requires its creditors to file their
proofs of debt by March 19, 2007, to be included in the
company's dividend distribution.
The company's liquidator is:
G. L. Hansen
Goldsmith Fox PKF
PO Box 13141, Christchurch
New Zealand
Telephone:(03) 366 6706
Facsimile:(03) 366 0265
CSG PROPERTIES: Faces CIR's Wind-Up Petition
--------------------------------------------
An application to wind up the operations of CSG Properties Ltd.
was filed by the Commissioner of Inland Revenue on Dec. 18,
2006.
Accordingly, the petition will be heard before the High Court of
Auckland on May 3, 2007, at 10:00 a.m.
The CIR's solicitor can be reached at:
Timothy Chemaly
Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
Telephone:(09) 985 7048
DEPENDABLE STORAGE: CIR Wind-Up Motion Set for Apr. 19 Hearing
--------------------------------------------------------------
An application to wind up the operations of Dependable Storage
Ltd. will be heard before the High Court of Auckland on
April 19, 2007, at 10:45 a.m.
The petition was filed by the Commissioner of Inland Revenue on
Dec. 18, 2006.
The CIR's solicitor can be reached at:
Timothy Chemaly
c/o Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
Telephone:(09) 985 7048
EQUITY DEVELOPMENTS: CIR Seeks to Liquidate Company
---------------------------------------------------
On Dec. 18, 2006, the Commissioner of Inland Revenue filed an
application to wind up the operations of Equity Developments
2003 Ltd.
The petition will be heard before the High Court of Auckland on
May 3, 2007, at 10:00 a.m.
The CIR's solicitor can be reached at:
Timothy Chemaly
c/o Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
Telephone:(09) 985 7048
J & E WILLIAMS: Creditors' Proofs of Claim Due on April 6
---------------------------------------------------------
The creditors of J & E Williams Builders Ltd. are required to
prove their debts by April 6, 2007.
Failure to prove debts by the claims bar date will exclude a
creditor from sharing in the company's dividend distribution.
In a report by the Troubled Company Reporter - Asia Pacific, the
High Court of Auckland heard the petition against the company on
Feb. 15, 2007. Accident Compensation Corporation filed the
petition.
The company's liquidators are:
John T. Whittfield
Peri Micaela Finnigan
McDonald Vague
PO Box 6092
Wellesley Street Post Office, Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz/
JR MEDIA: Canwest Seeks to Liquidate Company
--------------------------------------------
On Jan.17, 2007, Canwest TVWorks Limited filed a petition to
wind up the operations of JR Media Ltd.
The High Court of Auckland will hear the petition on May 10,
2007, at 10:00 a.m.
Canwest's solicitor can be reached at:
T. M. Bates
c/o AEL Legal, Ground Floor
31-33 Great South Road
Newmarket, Auckland
New Zealand
KINGETT MITCHELL: Shareholders Resolve to Liquidate Business
------------------------------------------------------------
On Feb. 23, 2007, the shareholders of Kingett Mitchell Ltd. met
at a general meeting and decided to liquidate the company's
assets.
Accordingly, Rowan Kingstone was appointed as liquidator.
The company's Liquidator can be reached at:
Rowan Kingstone
KDB Chartered Accountants Limited
16 Morgan Street
Newmarket, Auckland
New Zealand
Telephone:(09) 303 3007
Facsimile:(09) 303 1600
PEEL BACK: High Court to Hear Wind-Up Petition on April 12
----------------------------------------------------------
The High Court of Auckland will hear a petition to wind up the
operations of Peel Back Ltd. on April 12, 2007, at 10:45 a.m.
The petition was filed by the Commissioner of Inland Revenue on
Dec. 18, 2006.
The CIR's solicitor is:
Timothy Chemaly
Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
Telephone:(09) 985 7048
SOUTH PACIFIC: High Court to Hear Wind-Up Petition on March 15
--------------------------------------------------------------
A petition to wind up the operations of South Pacific Project
Management Ltd. was filed by the Commissioner of Inland Revenue
on Nov. 21, 2006.
The High Court of Auckland will hear the petition on March 15,
2007, at 10:45 a.m.
The CIR's solicitor can be reached at:
Geraldine Ann Ryan
Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
STICKY BEAK: High Court to Hear CIR Wind-Up Petition on April 19
----------------------------------------------------------------
The Commissioner of Inland Revenue filed a petition to wind up
the operations of Sticky Beak Ltd on Dec. 18, 2006.
The petition will be heard before the High Court of Auckland on
April 19, 2007, at 10:45 a.m.
The CIR's solicitor can be reached at:
Timothy Chemaly
Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
Telephone:(09) 985 7048
TULL HOLDINGS: CIR Seeks to Wind-Up Company
-------------------------------------------
On Dec. 18, 2006, the Commissioner of Inland Revenue filed a
petition to wind up the operations of Tull Holdings Ltd.
The High Court of Auckland will hear the petition on April 19,
2007, at 10:45 a.m.
The CIR's solicitor can be reached at:
Timothy Chemaly
c/o Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
Telephone:(09) 985 7048
WYONG HOLDINGS: CIR Wants to Wind Up Firm; Hearing Set for May 3
----------------------------------------------------------------
The Commissioner of Inland Revenue filed, on Dec. 18, 2006, a
petition to wind up the operations of Wyong Holdings Ltd.
The petition will be heard before the High Court of Auckland on
May 3, 2007, at 10:00 a.m.
The CIR's solicitor can be reached at:
Timothy Chemaly
c/o Auckland South Service Centre
17 Putney Way, PO Box 76198
Manukau, Auckland
New Zealand
Telephone:(09) 985 7048
=====================
P H I L I P P I N E S
=====================
WARNER MUSIC: Pre-Conditional Offer Inadequate, EMI Board Says
--------------------------------------------------------------
The Board of Directors of EMI Group plc rejected a
GBP2.1 billion (US$4.1 billion) non-binding takeover bid from
Warner Music Group Corp. saying that the price of 260 pence per
share in cash for EMI is inadequate.
The Board concluded that "it is not in the best interests of EMI
shareholders to entertain a pre-conditional offer which would
entail prolonged regulatory uncertainty and unacceptable
operational risk at a critical time for the Company."
There can be no certainty that the approach by WMG will lead to
an offer being made for the Company or as to the terms on which
any offer might be made.
EMI remains focused on maximizing the performance of the
business including implementation of the restructuring program
disclosed on Jan. 12.
Warner Music Group Corp. approached EMI on Jan. 24, after it
obtained the support of Brussels-based Impala, a trade group for
independent European record labels ending its opposition to a
Warner-EMI merger, reports say. WMG clarified Feb. 21 that any
possible takeover offer for EMI Group PLC is likely to be solely
in cash.
In 2006, EMI and Warner were locked in a GBP2.3 billion takeover
battle. A European Court halted the deal in June 2006 following
the annulment of the 2004 Sony-BMG tie-up.
Analysts believed that an EMI-Warner merger could generate cost
savings of about GBP150 million a year.
About EMI
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.
About Warner Music Group
Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--
is a music company that operates through numerous international
affiliates and licensees in more than 50 countries, including
the Philippines. In Latin America, Warner Music has affiliates
in Argentina, Brazil, Chile, Columbia and Mexico. Warner Music
is home to a collection of record labels in the music industry
including Asylum, Atlantic, Bad Boy, Cordless, East West,
Elektra, Lava, Maverick, Nonesuch, Reprise, Rhino, Rykodisc,
Sire, Warner Bros., and Word.
* * *
On Feb. 27, Standard & Poor's Ratings Services placed its
ratings on Warner Music Group Corp., including the 'BB-'
corporate credit rating, on CreditWatch with negative
implications, following the company's statement that it is
exploring a possible merger agreement with EMI Group PLC
(BB-/Watch Neg/B), which EMI management has confirmed.
Warner Music Group Corp. carries Fitch Ratings' BB- issuer
default rating assigned in May 2006.
* Philippines' Central Bank Maintains Key Policy Rates
------------------------------------------------------
The Monetary Board has decided to maintain the Bangko Sentral ng
Pilipinas' key policy interest rates at 7.5% for the overnight
borrowing or reverse repurchase rate and 9.75% for the overnight
lending or repurchase rate. The tiering system on bank
placements with the BSP was also kept in place.
The Monetary Board noted that the continued moderation in both
headline and core inflation would support monetary easing.
Reduced supply-side pressures (e.g., the dropping out in
February of the base effects of RVAT on the CPI, the continued
strengthening of the peso) and continued moderate improvements
in demand conditions, are behind the abatement of underlying
price pressures. Latest BSP forecasts suggest benign inflation
for the rest of the year.
On balance, however, the Monetary Board believes there continue
to be important reasons to maintain the current monetary policy
settings. Growth in domestic liquidity has strengthened further
in recent months, and may persist given the prospect for
sustained strong foreign exchange inflows. The strong growth in
domestic liquidity has not triggered a rise in inflationary
pressures, in part due to the growing absorptive capacity of the
economy. Recent evidence indicates that bank lending has
started to increase with the implementation of the tiering
scheme.
* * *
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
=================
AUDIOPLEX PTE: Pays Dividend to Unsecured Creditors
---------------------------------------------------
The Audioplex Pte Limited, which is in creditors' voluntary
liquidation, paid the first and final dividend to its unsecured
creditors on March 2, 2007.
The company paid 6.7368% to all admitted unsecured claims
The company's liquidator is:
Timothy James Reid
Ferrier Hodgson
50 Raffles Place #16-06
Singapore Land Tower
Singapore 048623
BENCHMARK ELECTRONICS: Net Earnings Soar to US$111.7-Mil in 2006
----------------------------------------------------------------
Benchmark Electronics Inc. reported net income of US$111.7
million on sales of US$2.9 billion for the year ended Dec. 31,
2006, compared to net income of US$80.6 million on sales of
US$2.3 billion in the previous year.
Excluding restructuring charges, the impact of stock-based
compensation expense and a tax benefit resulting from the
closure of the company's UK facility, the company would have
reported net income of US$113.1 million in 2006.
For the fourth quarter of 2006, the company reported net income
of US$28.3 million on sales of US$737 million, compared to net
income of US$24.7 million on sales of US$625 million for the
same period in 2005.
"We are pleased with our performance in the fourth quarter. We
had a solid finish to 2006 and achieved record annual sales and
earnings" stated Benchmark's Chief Executive Officer Cary T. Fu.
"Our teams have delivered strong revenue growth for the past
five years."
At Dec. 31, 2006, the company's balance sheet showed
US$1.406 billion in total assets, US$421.1 million in total
liabilities, and US$985 million in total 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?1af2
Cash and cash equivalents increased to US$123.9 million at
Dec. 31, 2006, from US$110.8 million at Dec. 31, 2005.
Cash used in operating activities was US$80.5 million in 2006.
The cash used in operations during 2006 consisted primarily of
US$111.7 million of net income adjusted for US$27.4 million of
depreciation and amortization, offset by a US$106 million
increase in accounts receivable, a US$58.4 million increase in
inventories and a US$36.9 million decrease in accounts payable.
Cash provided by investing activities was US$71.3 million for
the year ended Dec. 31, 2006, primarily due to proceeds from
sales and maturities of short-term investments offset by the
purchase of additional property, plant and equipment and short-
term investments. Capital expenditures of US$42.3 million were
primarily concentrated in manufacturing production equipment in
Asia and the Americas to support ongoing business and to expand
certain existing manufacturing operations.
Cash provided by financing activities was US$21.3 million for
the year ended Dec. 31, 2006. During 2006, the company received
US$16.1 million from the exercise of stock options and US$5.2
million in federal tax benefits of stock options exercised.
Subsequent Event
Effective Jan. 8, 2007, the company acquired Pemstar Inc., a
publicly traded electronics manufacturing services company
headquartered in Rochester, Minnesota. With the closing of the
merger, Pemstar became a wholly owned subsidiary of the company.
With the acquisition of Pemstar, the company's global operations
now include 24 facilities in nine countries.
The aggregate purchase price was US$220.9 million, including
common shares valued at US$202.5 million, stock options and
warrants valued at US$8.7 million, convertible debt valued at
US$4.8 million and estimated acquisition costs of US$4.9
million.
About Benchmark Electronics
Benchmark Electronics, Inc. -- http://www.bench.com/--
manufactures electronics and provides its services to original
equipment manufacturers of computers and related products for
business enterprises, medical devices, industrial control
equipment, testing and instrumentation products, and
telecommunication equipment. Benchmark's global operations
include facilities in eight countries. Benchmark's Common Shares
trade on the New York Stock Exchange under the symbol BHE.
The company has operations in United States, Brazil, Mexico,
Europe, and Asia, which includes Thailand, China and Singapore.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 6, 2006, Standard & Poor's Ratings Services placed its 'BB-
'corporate credit rating on Benchmark Electronics Inc. on
CreditWatch with positive implications after the company
announced it will acquire Pemstar Inc. in a stock transaction
valued at about US$300 million.
Moody's rates Benchmark's long-term corporate family rating at
Ba3; Bank loan debt at Ba2; and equity linked at B2. The
ratings were assigned on March 2003.
FALMAC LIMITED: Profit in 2006 Drops 60.27% to SGD952 Thousand
--------------------------------------------------------------
Falmac Limited disclosed annual financial results for the
company's group for the year ended Dec. 31, 2006.
Falmac's consolidated turnover in 2006 dropped 16.01% to
SGD14.87 million, compared to SGD17.70 million in 2005.
It's cost of sales also went down to SGD13.92 million in 2006
from the SGD15.31 million incurred in 2005.
The group's gross profit went down 60.27% to SGD952 thousand for
the year ended Dec. 31, 2006, from the SGD2.4 million booked in
2005.
Falmac Limited's balance sheet as of Dec. 31, 2006, showed
illiquidity with total current assets of SD6.23 million and
total current liabilities of SGD18.10 million. The balance
sheet balance also showed insolvency, with total assets of
SGR16.12 million, total liabilities of SGD19.66 million
resulting to a shareholder's deficiency of SGD3.53 million.
Falmac Limited 's financial statements for the year ending Dec.
31, 2006, is available for free at
http://bankrupt.com/misc/FALMAC_LIMITED.pdf
About Falmac Ltd.
Headquartered in Singapore, Falmac Limited manufactures and
trades knitting machines and related precision parts and
components, as well as cotton yarn.
A report by the Troubled Company Reporter - Asia Pacific on
July 8, 2004, stated that the company has entered into these
definitive agreements in relation to the company's restructuring
on July 6, 2004:
(1) Restructuring Deed with Ho Liong Fen, Falmac
Investment Holdings Pte Ltd, and the creditor banks
of the Company.
(2) Shareholder's Loan Agreement with Sino Equity.
(3) Strategic Subscription Agreement with Sino Equity.
Moreover, the TCR-AP reported on Aug. 16, 2006, that the company
registered a widening shareholders' deficit, from a shortfall of
SGD1.21 million as of December 31, 2005, to a deficit of SGD1.88
million as of June 30, 2006.
The company's total assets as of June 30, 2006, stood at
SGD17.62 million, while the total liabilities figure was at
SGD19.50 million. The company has SGD10.39 million of secured
loans repayable within in one year, but current assets stands at
SGD7.23 million.
MINOTAUR INVESTMENTS: Creditors Must Prove Debts by April 2
-----------------------------------------------------------
Minotaur Investments Pte Ltd, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by April 2, 2007.
Creditors who cannot prove debts by the due date will be
excluded from the company's dividend distribution.
The company's liquidators are:
Yeap Lam Kheng
Bob Yap Cheng Ghee
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
SAW SPECIALIST: Court Issues Wind-Up Order
------------------------------------------
On Feb. 23, 2007, the High Court of Singapore entered an order
to wind up the operations of Saw Specialist & Machinery Pte Ltd.
Teh Hock Lai and Yeo Suay Hwee filed the petition on Jan. 26,
2007, according to the Troubled Company Reporter - Asia Pacific.
The company's liquidator is:
Lien Fain Sze
M/s Onn Ping Lan & Co.
809 French Road #05-168
Singapore 200809
SEA CONTAINERS: Wants Court OK to Provide Funding to SC Treasury
----------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to provide a
secured, intercompany line of credit of up to US7,000,000 to its
non-debtor subsidiary Sea Containers Treasury Ltd.
Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor LLP,
in Wilmington, Delaware, discloses that starting in 2002, SCL
initiated an operational restructuring program targeted at
evaluating and selling identified non-core assets held directly
by its foreign, non-debtor subsidiaries. The Non-Core Asset
sale program requires support from SCL, both in the form of
management oversight and through case flow support.
Mr. Greecher says many of the businesses identified as Non-Core
Assets cannot fully fund their operations on a stand-alone basis
from cash receipts alone because they are cyclical businesses
that have significant funding needs during certain parts of the
year. Hence, to maintain the operation of the businesses for a
sufficient time to allow for thorough marketing and maximization
of sale value, SCL has been required to fund their operations.
The Debtors believe that the targeted intercompany funding
accomplishes two primary objectives, both aimed at the ultimate
goal of maximizing the value of SCL's assets.
Mr. Greecher relates that the Debtors have determined that
meeting the funding needs of certain non-debtor subsidiaries
will preserve the value of Non-Core Assets during a robust
marketing and sale process that will achieve its maximum value.
Also, the Debtors have identified a need to ease cash flow
problems of some non-debtor subsidiaries that could not survive
on their own to prevent creditors from initiating insolvency or
foreclosure proceedings in foreign jurisdiction that would be
detrimental on the Debtors' reorganization and could destroy
value for the stakeholders.
Before Oct. 15, 2006, the Debtors formed SC Treasury as a
financing subsidiary that would carry out the business of
funding the operations of international subsidiaries that are or
hold Non-Core Assets. Throughout the Chapter 11 cases, it has
successfully operated to help fund operations for various non-
debtor subsidiaries.
SCL has identified a process by which funding requests are made
to SC Treasury and reviewed before any intercompany loans are
made to non-debtor foreign subsidiaries. The SC Treasury
mechanism has proven to be an effective vehicle to preserve
value in the Non-Core Assets and allow for the orderly
reorganization of the Debtors without an undue cash drain, Mr.
Greecher notes.
As of March 2, 2007, the cash needs of SCL's non-debtor foreign
subsidiaries have been lower than originally projected. As of
Feb. 21, about US$2,520,000 remained in SC Treasury. SCL
projects SC Treasury could reallocate the remaining funds and
allow for continued financing of the non-debtor subsidiaries
through March 2007 and will run out of funds after that.
Mr. Greecher tells the Court that the Debtors' decision to make
the intercompany loan to facilitate the continued operation of
the SC Treasury funding mechanism for non-debtor foreign
subsidiaries is calibrated to maximize value of their estates
for the benefit of creditors in the form of increasing sale
values for the Non-Core Assets and reducing secondary liability
claims against SCL. Indirectly, the mechanism avoids the
expense, distraction and potential value-destroying effect of a
series of international insolvency filings for the non-debtor
subsidiaries, he adds.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA,
SCRB)-- http://www.seacontainers.com/-- provides passenger and
freight transport and marine container leasing. Registered in
Bermuda, the company has regional operating offices in London,
Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The
company is owned almost entirely by United States shareholders
and its primary listing is on the New York Stock Exchange (SCRA
and SCRB) since 1974. On October 3, the company's common shares
and senior notes were suspended from trading on the NYSE and
NYSE Arca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.
The Debtors' exclusive period to file a plan expires on June 12,
2007. Their exclusive period to solicit acceptances expires on
Aug. 11, 2007. (Sea Containers Bankruptcy News, Issue No. 12;
Bankruptcy Creditors' Service, Inc.
http://bankrupt.com/newsstand/or 215/945-7000)
TA POCKETHOMES: High Court Hears Wind-Up Petition
-------------------------------------------------
An application to wind up the operations of Ta Pockethomes Pte
Ltd was heard before the High Court of Singapore on March 9,
2007.
The petition was filed Axa-Corp Construction Pte Ltd on Feb. 13,
2007.
Axa-Corp's solicitor is:
Alfred Dodwell
No. 3 Pickering Street
#01-63 Nankin Row
China Square Central
Singapore 048660
TRAD TECHNOLOGY: Pays Preferential Dividend
-------------------------------------------
Trad Technology Construction Pte Ltd. paid the first and final
preferential dividend to its creditors on Feb. 15, 2007.
The company paid 22.98% to all received claims.
The company's official receiver can be reached at:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
TRI-MIX PTE: Unsecured Creditors Must Prove Debts by March 16
-------------------------------------------------------------
Tri-Mix Pte Ltd, which is in creditors' voluntary liquidation,
requires its unsecured creditors to file their proofs of debt by
March 16, 2007.
The company's liquidators are:
Bob Yap Cheng Ghee
Neo Ban Chuan
c/o KPMG Business Advisory Pte Ltd
16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
ZHONGGUO JILONG: Wind-Up Petition Hearing Slated for March 16
-------------------------------------------------------------
On Feb. 2, 2007, Cooperatieve Centrale Raiffeisenboerenleenbank
B.A. -- trading as Rabobank International, Singapore branch --
filed a petition to wind up the operations of Zhongguo Jilong
Limited.
The High Court of Singapore will hear the petition on March 16,
2007, at 10:00 a.m.
===============
T H A I L A N D
===============
ABICO HOLDINGS: Reports Restructuring Progress in 2006
------------------------------------------------------
In a regulatory filing with the Stock Exchange of Thailand on
Mar. 2, 2007, Abico Holdings PCL reported its progress in the
implementation of its restructuring plan within 2006:
Dates of operation Operations And Procedures
January to March The company continued to do business
following the Restructuring Plan.
April to June Interests are paid to creditors
for the period starting Jan. 1, 2006,
to Jun. 30, 2006, using the interest
rate specified in the company's
Restructuring Plan.
July to September The company continues with normal
business following the Restructuring
Plan.
October to December Interest are paid to creditors
for the period starting July 1, 2006,
to Dec. 31, 2006, with interest rates
specified by the company's
Restructuring Plan.
In 2006, Abico Holdings employed AMC Office Co. Ltd as its
auditor and Sukanya Sutheeprasert as its certified public
accountant, as approved by the plan administrator.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 16, 2004, that Abico Holdings furnished the SET a copy of
the summary of its Rehabilitation Plan passed by the Central
Bankruptcy Court on Nov. 29, 2004, for the benefit of its
investors and other related persons.
A copy of the rehab plan summary is available fore free at:
http://bankrupt.com/misc/ABICOHOLDINGS121504.txt
About Abico Holdings PCL
Headquartered in Pathumthani, Thailand, Abico Holdings Public
Company Limited -- http://www.abicogroup.com/-- is into trading
palm oil, real estate development and raw milk producer and
distributor.
On April 12, 2004, Thailand's Central Bankruptcy Court issued an
order for the rehabilitation of the Company and appointed the
Company as its own rehabilitation plan manager. The Company's
rehabilitation plan was then approved by creditors and the
Central Bankruptcy Court.
The Troubled Company Reporter - Asia Pacific reported on Mar. 5,
2007, that the Stock Exchange of Thailand placed "SP" or
suspension sign on Abico Holdings' securities for the company's
failure to timely submit its financial statements for the period
ending Dec. 31, 2006.
ADVANCED PAINT: Reports THB25.6 Million Annual Net Loss for 2006
----------------------------------------------------------------
Advance Paint & Chemical PCL Advanced Paint reported losses of
THB25,617,172 on total revenues of THB35,765,236 for the year
ended Dec. 31, 2006, as compared with losses of THB43,822,721 on
total revenues of THB52,186,174 in the same period in 2005.
Advanced Paint's consolidated balance sheet as of Dec. 31, 2006,
showed strained liquidity with THB15,039,732 in current assets
available to pay THB59,218,522 in current liabilities coming due
within the next 12 months.
The company's balance sheet also reported total assets of
THB100,769,254 million and total shareholders' equity of
THB41,550,732.
After auditing the company's 2006 annual financial statements,
ANS Audit Co. Ltd. stated that due to the company's increased
losses and the fact that its current liabilities exceed its
current assets, the company's ability to continue operations as
a going concern is dependent on its ability to generate
sufficient profit and cash flows to serve its debts.
A full-text copy of Advance Paint & Chemical PCL's financial
results for fiscal year ended Dec. 31, 2006, and 2005 can be
viewed for free at: http://bankrupt.com/misc/APCE2.xls
About Advanced Paint & Chemicals PCL
Headquartered in Bangkok, Thailand, Advanced Paint & Chemicals
Public Company Limited manufactures and distributes decorative
paint, heavy-duty coating, and industrial painting under Dutch
boy, and Seven Stars brand names. It has assets of THB124.83
million in December 2005. The Company signed a 30-year contract
with Sherwin-Williams Company starting from June 1, 1987, for
the use of brand names and technology.
Advance Paint is currently undergoing business rehabilitation
and is categorized under the Non-Performing Group Sector of the
Stock Exchange of Thailand.
Going Concern Doubt
Atipong AtipongSakul of ANS Audit Company Ltd raised doubt on
Advanced Paint & Chemical (Thailand) Pcl's ability to continue
operations as a going concern after auditing the company's
financial results for the third quarter and nine-month periods
ended September 30, 2006.
According to Mr. Atipong, the company continues to operate on
recurring losses and has current liabilities substantially in
excess of current assets. "The Company's ability to continue
operations as a going concern is dependent on its ability to
generate sufficient profit and cash flows to serve its debts,"
he said.
Advanced Paint incurred a THB6.42-million net loss on
THB11.61 million revenues in the third quarter ended
September 30, 2006, as compared with the THB7.47-million net
loss on THB10.94 million revenues posted in the same quarter
last year.
As of September 30, 2006, the company's consolidated balance
sheet showed strained liquidity with THB19.21 million in current
assets available to pay THB58.99 million in current liabilities.
DAIMLERCHRYSLER: Offers US$100,000 Buyouts to Shed 13,000 Jobs
--------------------------------------------------------------
DaimlerChrysler AG's Chrysler Group will offer as much as
US$100,000 to some of its 49,600 hourly workers at 11 U.S.
plants to leave the company as part of its recovery plan, the
Associated Press relates.
Published reports claim that the company intends to eliminate
11,000 hourly positions and 2,000 salaried jobs in an effort to
return to profitability following its US$1.475 billion loss in
2006.
As reported in the TCR-Europe on March 1, Chrysler and the
United Auto Workers agreed to two special programs that will
provide retirement and separation incentives for the company's
bargaining-unit employees in the United States as part of the
Chrysler Group's Recovery and Transformation Plan.
The negotiated programs include an Incentive Program for
Retirement with US$70,000 cash lump-sum amount for employees
with 30 or more years of credited service, or who meet a
combination of age and years-of-service eligibility, and an
Enhanced Voluntary Termination of Employment Program, which
provides a lump sum payment of US$100,000 for employees with at
least one year of credited service.
Chrysler wants to slash production by 400,000 vehicles per year
and plans to offer the buyouts to workers in select plants in
the U.S. and Canada, including one slated for closure in Newark,
Delaware, the Associated Press states.
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 AG: CEO Confirms Proposed SUV Deal with GM
----------------------------------------------------------
DaimlerChrysler AG Chief Executive Officer Dieter Zetsche
confirmed his company is talking to General Motors Corp. about
sharing the costs of future sport-utility vehicles, but he and
GM's CEO stayed mum about whether GM could try to buy its
Chrysler arm outright, Stephen Power and Neal E. Boudette of the
Wall Street Journal report.
According to the source, Mr. Zetsche reiterated that the
automaker is considering "all options" for Chrysler, including a
possible sale, which move came amid rising investor frustration
over the division's losses.
Possible buyers that have expressed interest in Chrysler include
auto-parts maker Magna International Inc. and private-equity
groups Blackstone Group LP and Cerberus Partners LP, the Journal
said citing people familiar with the matter.
Sources said early this week that Blackstone Group topped in its
bid to buy DaimlerChrysler's Chrysler Group. The private equity
firm, the reports said, is moving forward with a detailed
analysis of Chrysler's finances and operations with an eye
toward making a formal bid.
Lower February Sales
As reported in the Troubled Company Reporter on Mar. 2, 2007,
DaimlerChrysler AG's Chrysler Group reported sales for February
2007 of 174,506 units; down 8% compared with February 2006 with
190,367 units. All sales figures are reported unadjusted.
"In a generally soft market environment in February, the
Chrysler Group had good traffic and solid customer interest
especially for our newly launched, fuel efficient models like
the Dodge Avenger, Dodge Caliber, and Jeep(R) Compass. Also,
the Jeep Wrangler had its best February ever," Chrysler Group
Vice President for Sales and Field Operations Steven Landry
said.
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: CEO Hints Difficulty in Chrysler Piecemeal Sale
----------------------------------------------------------------
DaimlerChrysler AG CEO Dieter Zetsche discounts the idea of
selling Chrysler Group in pieces because the U.S. automaker's
integrated production system, which binds together various
Chrysler brands, would be difficult to separate, Mark Landler
writes for the International Herald Tribune.
However, Mr. Zetsche emphasized that he was making an
observation not commenting on the options DaimlerChrysler might
consider for its loss-making unit, Mr. Lander continues.
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 carried by The New York
Times says.
DaimlerChrysler hinted early this week of a possible sale of its
Chrysler Financial auto loan and leasing unit, which could
parallel a similar scenario taken by General Motors Corp. last
year.
GM 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.
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 its EUR50.1 billion revenues in 2005.
The company blamed lower volumes and a weaker U.S. dollar on
average for the deteriorating operating results.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
FEDERAL-MOGUL: Wants Court OK on Anderson Mem. Settlement Pact
--------------------------------------------------------------
In 1992, Anderson Memorial Hospital filed an individual and
class action against T&N, plc, in the South Carolina Circuit
Court. The Debtors acquired T&N in 1998 and subsequently
assumed all of its liabilities, Scotta E. McFarland, Esq., at
Pachulski Stang Ziehl Young Jones & Weintraub LLP, in
Wilmington, Delaware, notes.
Since filing for bankruptcy, the Circuit Court Litigation
against Federal-Mogul Corporation and its debtor-affiliates has
been stayed pursuant to Section 362(a) of the Bankruptcy Code.
Anderson Memorial also filed eight class proofs of claim and
2,907 asbestos property damage claims against the Debtors.
Anderson Memorial currently serves as a member of the Official
Committee of Asbestos Property Damage Claimants.
Through various orders from the U.S. Bankruptcy Court for the
District of Delaware and voluntary withdrawals, only 886
Anderson Memorial Claims are pending in the Debtors' bankruptcy
cases. The Remaining Anderson Memorial Claims roughly represent
97% of the 912 remaining unresolved Asbestos Property Damage
Claims against the Debtors, according to Ms. McFarland.
Anderson Memorial asserts that the aggregate amount for damages
and removal costs for its Remaining Claims is more than
US$1,000,000,000.
Although the Debtors strongly dispute the amount of the
Remaining Anderson Memorial Claims, the Debtors acknowledge that
Anderson Memorial has provided them with evidence supporting the
legitimacy of some of the Remaining Claims.
The Debtors also acknowledge that despite the many meritorious
defenses they have asserted or could assert against the
Remaining Anderson Memorial Claims, it would be extremely costly
and time-consuming for them to continue pursuing existing claim
objections and file additional claims objections to the
Remaining Claims.
Accordingly, the Debtors, along with the Official Committee of
Unsecured Creditors, negotiated a settlement agreement with
Anderson Memorial, which provides for the complete resolution of
the Remaining Anderson Memorial Claims.
Pursuant to the Settlement Agreement, the Debtors will deliver a
US$36,200,000 settlement fund to the Class Counsel, in complete
satisfaction of the Remaining Anderson Memorial Claims, on the
later of:
(i) six months after the effective date of a plan of
reorganization; or
(ii) the Circuit Court's final approval of the Settlement
Agreement without modification.
The Debtors will also withdraw any and all pending objections to
the Remaining Anderson Memorial Claims.
If the Circuit Court does not approve the Settlement Agreement,
or if the Debtors terminate the Settlement Agreement, the
Settlement Fund will be transferred to a trust to be maintained
and administered by W. D. Hilton of Trust Services,
Incorporated, or another qualified individual or entity mutually
acceptable to the Class Counsel and the Debtors.
The sole recovery for the Remaining Anderson Memorial Claims
will be limited to the Settlement Fund, Ms. McFarland clarifies.
In addition, the Debtors will amend their Chapter 11 Plan to
incorporate the Settlement Agreement with Anderson Memorial.
Anderson Memorial and the Class Claimants agree to unanimously
vote in favor of the Plan, and to cooperate with the Debtors in
seeking confirmation of the Plan on any issues relating to the
Settlement Agreement.
The Debtors thus ask the Court to:
(a) approve their Settlement Agreement with Anderson
Memorial;
(b) lift the automatic stay to allow Anderson Memorial to
seek the Circuit Court's approval of the Settlement
Agreement; and
(c) authorize the Trust to oversee the allocation and
distribution of the Settlement Fund among the Class
Claimants if the Circuit Court disapproves the
Settlement Agreement.
About Federal-Mogul Corporation
Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's
largest automotive parts companies with worldwide revenue of
some US$6 billion. The company has also has operations in
Malaysia, Australia, China, India, Japan, Korea, and Thailand.
The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue
No. 128; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan. On July 28,
2004, the District Court approved the Disclosure Statement. The
estimation hearing began on June 14, 2005. They then submitted
a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006,
and the Bankruptcy Court approved that Disclosure Statement on
Feb. 6, 2007. The confirmation hearing is set for May 8, 2007.
(Federal-Mogul Bankruptcy News, Issue No. 130; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
FEDERAL-MOGUL: Earns US$48.3 Million in January 2007
----------------------------------------------------
Federal-Mogul Global, Inc., et al.
Unaudited Balance Sheet
As of January 31, 2007
(In millions)
Assets
Cash and equivalents US$42.8
Accounts receivable 550.3
Inventories 438.4
Deferred taxes 191.3
Prepaid expenses and other current assets 94.9
--------
Total current assets 1,317.7
Summary of Unpaid Postpetition Debits (34.1)
Intercompany Loans Receivable (Payable) 1,449.7
--------
Intercompany Balances 1,415.6
Property, plant and equipment 819.3
Goodwill 967.0
Other intangible assets 345.0
Insurance recoverable 859.9
Other non-current assets 485.8
--------
Total Assets US$6,210.3
Liabilities and Shareholders' Equity
Short-term debt US$358.5
Accounts payable 221.0
Accrued compensation 83.5
Restructuring and rationalization reserves 22.1
Current portion of asbestos liability -
Interest payable 4.5
Other accrued liabilities 231.9
--------
Total current liabilities 921.6
Long-term debt -
Post-employment benefits 752.5
Other accrued liabilities 522.9
Liabilities subject to compromise 5,808.4
Shareholders' equity:
Preferred stock 1,050.6
Common stock 658.1
Additional paid-in capital 7,986.0
Accumulated deficit (11,410.9)
Accumulated other comprehensive income (78.9)
Other -
--------
Total Shareholders' Equity (1,795.1)
--------
Total Liabilities and Shareholders' Equity US$6,210.3
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Operations
For the Month Ended January 31, 2007
(In millions)
Net sales US$253.7
Cost of products sold 212.7
--------
Gross margin 41.0
Selling, general & administrative expenses (44.1)
Amortization (1.1)
Reorganization items 86.1
Interest expense, net (45.4)
Other expense, net 11.5
--------
Earnings before Income Taxes 47.9
Income Tax (Expense) Benefit 0.4
--------
Earnings before cumulative effect of change
in acctg. Principle 48.3
--------
Net Earnings (loss) US$48.3
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Cash Flows
For the month ended January 31, 2007
(In millions)
Cash Provided From (Used By) Operating Activities:
Net earning (loss) US$48.3
Adjustments to reconcile net earnings (loss) to net cash:
Depreciation and amortization 12.6
Adjustment of assets held for sale and
other long-lived assets to fair value -
Asbestos charge -
Summary of unpaid postpetition debits -
Cumulative effect of change in acctg. Principle -
Change in post-employment benefits (16.5)
Decrease (increase) in accounts receivable (6.9)
Decrease (increase) in inventories (18.0)
Increase (decrease) in accounts payable 19.8
Change in other assets & other liabilities (25.8)
Change in restructuring charge -
Refunds (payments) against asbestos liability -
--------
Net Cash Provided From Operating Activities 13.4
Cash Provided From (Used By) Investing Activities:
Expenditures for property, plant & equipment (6.0)
Proceeds from sale of property, plant & equipment -
Proceeds from sale of businesses -
Business acquisitions, net of cash acquired -
Other -
--------
Net Cash Provided From (Used By) Investing Activities (6.0)
Cash Provided From (Used By) Financing Activities:
Increase (decrease) in debt (15.5)
Sale of accounts receivable under securitization -
Dividends -
Other 0.1
--------
Net Cash Provided From Financing Activities (15.4)
Increase (Decrease) in Cash and Equivalents (8.0)
Cash and equivalents at beginning of period 50.8
--------
Cash and equivalents at end of period US$42.8
Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's
largest automotive parts companies with worldwide revenue of
some US$6 billion. The company has also has operations in
Malaysia, Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan. On July 28,
2004, the District Court approved the Disclosure Statement. The
estimation hearing began on June 14, 2005. They then submitted
a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006,
and the Bankruptcy Court approved that Disclosure Statement on
Feb. 6, 2007. The confirmation hearing is set for May 8, 2007.
(Federal-Mogul Bankruptcy News, Issue No. 130; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
iTV PCL: Directors Resign After PR Department's Takeover
--------------------------------------------------------
iTV Pcl acting director Chira Honglada-rom, iTV chief officer
and director Niwattum-rong Boonsongpaisan, and three other
directors -- Anan Leetrakul, Songsak Premsuk and Saparanan
Tanviruch -- quit their posts as the now-government owned
station braces to face bankruptcy and other legal actions by the
Prime Minister's Office for non-payment of fines and concession
fees amounting to THB100 billion, The Nation reports.
iTV Chairman Somprasong Boonyachai resigned a day before iTV's
broadcasting license was revoked on March 6, the report says.
The report says that Somkid Wangcherdchu-wong, Nit-thimon
Juengsiri, Sumethee Innu, Vichakoraput Rattanavichaien and
Jiraporn Viwongsakdi are the only directors left in iTV's board.
The Nation relates that Mr. Chira submitted his resignation
after a meeting with PMO Minister Khunying Dhipava-dee Meksawan,
who is the chairperson of the board of directors overseeing iTV
-- which has been renamed TITV.
Mr. Chira said that TITV has deemed him to be not fully
qualified to take job at the station as the PMO's planned legal
action subject him "to asset seizures," but not full-scale
bankrupt status. Yet, The Nation notes, Minister Dhipavadee
asked Mr. Chira to act as an advisor for the technical committee
of the network after he submitted his resignation.
The Nation recounts that Mr. Chira's assets had been confiscated
by the court when he was not able to settle his loan worth
THB800,000 plus interests amounting to about THB200,000. As a
result, the court sanctioned Mr. Chira to follow a refinancing
plan to pay his debt.
The report notes that iTV shareholders will meet on March 20 to
consider and approve procedures for the company's operations,
rather than to settle the dispute between iTV and the Prime
Minister's Office.
The report says that TITV plans to hire an outside company to
manage its accounting system, billing, collections, legal
documents, and other tasks regarding the network's working
relationship with the Thai government including preparations for
a legal case that will continue after March 8, the report says.
About iTV
iTV PLC's principal activity is producing and broadcasting
television programs and channels, including the promotion of
related rights and assets. Shin Corp Plc is iTV's major
shareholder, with a 53% stake. Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family. Earlier this year, it sold its majority
stake in iTV to Temasek.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 23, 2006, that the Prime Minister's Office demanded a
concession fee payment and fines to the government from the
television network.
The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's Office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.
On Dec. 15, 2006, the TCR-AP reported that the Supreme
Administrative Court upheld the Central Administrative Court's
verdict by voiding the arbitration ruling on concession fee
payments won by iTV in 2004. The overdue concession payment and
fines that the broadcaster must pay reached THB100 billion.
The TCR-AP reported on Mar. 8, 2007, that iTV station went off
the air immediately after midnight on March 7 due to its failure
to pay the more than THB100 billion in debts to the Prime
Minister's Office. That marked the station's transition from
being a private station to a state-owned network. A subsequent
TCR-AP report on Mar. 9, said that the Council of State ruled
that the Public Relations Department would legally run iTV,
which has been renamed Thai Independent Television, or TITV.
Prime Minister Surayud Chulanont immediately ordered the PRD to
allow the station to continue broadcasting without further
interruptions.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Andrei Sanchez, Nolie Christy Alaba, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano,
Catherine Gutib, Tara Eliza Tecarro, Freya Natasha Fernandez,
and Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***