/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070322.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, March 22, 2007, Vol. 10, No. 58 Headlines A U S T R A L I A AUSTRALIAN TEA: Declares First & Final Dividend BESHOLD PTY: Members' Final Meeting Set for April 5 CARTIGNY MANUFACTURING: Members & Creditors to Meet on April 13 CARTIGNY (ADMINISTRATION): Final Meeting Slated for April 13 ELENIUM PTY: Members & Creditors' Final Meeting Set on April 13 EUPHRON PTY: Liquidators to Present Wind-Up Report HORVAT CONSTRUCTION: Will Declare First Dividend on April 28 INDOPHIL RESOURCES: Posts AU$197.1-Million NPAT for FY 2006 INDOPHIL RESOURCES: Increases Interest in Tampakan Project JAISTO INVESTMENTS: Members Resolve to Close Business LANE COVE: Creditors' Proofs of Debt Due on April 2 LONE STAR: Members' Final Meeting Set for April 16 MELBOURNE ACRYLIC: To Declare Final Dividend on April 17 SIEMENS LOGISTICS: Members Opt to Wind Up Firm TREJAY PTY: Will Declare Dividend on March 23 VIC PILE: Members' Final Meeting Slated for April 12 C H I N A & H O N G K O N G ADDCORE DEVELOPMENT: Liquidators Quit Posts APEX DRAGON: Members Resolve to Liquidate Business BENQ: Board Rejects Chairman's Offer to Resign CAMPELL INTERNATIONAL: Liquidators Resign from Posts CHINA MINSHENG: Gains CNY18.2 Billion in Shares Sale CITIC BANK: Plans US$3 Billion IPO in H.K. & Shanghai Listing CREDIT GLORY: Taps Borrelli and Walsh as Liquidators CROWNITY LIMITED: Placed Under Voluntary Wind-Up P. K. NG: Liquidator to Receive Proofs of Debt Until April 16 PRIME SKILL: Appoints Wong Tak Shing as Liquidator RIVERSTONE NETWORKS: Inability to Pay Debts Prompts Wind Up STAR WORLD: Huen Ho Yin Quits Liquidator Post TOM GROUP: 2006 Operating Profit Reaches HK$291 Million TRI-BEST: Names Chiu Man Wai as Liquidator UNITON PROPERTIES: Appoints Lau Wing Yat as Liquidator YIU FAI: Creditors to Prove Debts Until April 16 ZTE CORP: Obtains US$1.5 Billion on Loan Deal with ETC I N D I A KARNATAKA BANK: To Issue Tier II Bonds to Augment Capital LML LTD: Members Approves Directors and Auditors' Reappointments LSI LOGIC: Near Completion of Merger Cues S&P's Positive Watch ORIENTAL BANK OF COMMERCE: Signs MOU with IDBI Capital PUNJAB NATIONAL BANK: Goldman Sachs Investments Increases Stake TRANSWITCH CORP: Cuts Net Loss to US$11MM in Yr. Ended Dec. 31 STATE BANK OF INDIA: To Raise INR10-Billion via Bonds * SEBI Eases Listing Regulation for Firms Issuing Debentures I N D O N E S I A ALCATEL-LUCENT: Equips S-Bahn Berlin With IP-Based Network ALCATEL-LUCENT: Extends Existing Alliance With T-Systems ALCATEL-LUCENT: Grabs No. 1 Spot in 4th Qtr. IP DSLAM Shipments APEXINDO PRATAMA: May Post IDR400-Bil. Profit in 2006 AVNET INC: To Release 3rd Qtr. FY2007 Results on April 26 BANK NEGARA: Leads Financing of IDR1.52-Trillion Toll Road CORUS GROUP: Shareholders Approve Tata Steel Offer CORUS GROUP: LSE Admits 49,000,000 Ordinary Shares for Trading CORUS GROUP: Deutsche Bank Holds 3.06% Equity Stake HESS CORP: Declares Regular Quarterly Dividend on Common Stock INDOSAT: To Raise IDR1.5 Trillion by Bond Issue in Second Qtr. MARSH: Declares Quarterly Dividend on Outstanding Common Stock METSO OYJ: Supplies Handling Equipment to Bateman Africa NORTEL NETWORKS: Board Wants KPMG as Auditor Replacing Deloitte J A P A N ALL NIPPON: Hotels Business Attracts 30 Bidders ASAHI MUTUAL: JCR Upgrades Senior Debt Rating to BB+/Stable DAIEI INC: To Invite Yoshiharu Kawato To Be New Chairman HYAKUJUSHI BANK: Completes Share Repurchase HYAKUJUSHI BANK: Posts JPY13-Bil. Income for 9 Months to Dec. 31 HITACHI ZOSEN: Court Imposes US$83MM In Damages for Bid Rigging JAPAN AIRLINES: Labor Unions Calls Off Planned 24-Hour Walk-Out JAPAN AIRLINES: Sells 3 Hotels To Lone Star for JPY15 Billion MACDERMID INC: Moody's Affirms B2 Rating and Revises LGD Rates MACDERMID INC: Amendments Cues S&P to Hold B+ Rating on Debt MAZDA MOTOR: Changes Overseas Production Statistics MITSUBISHI UFJ: To Act As Intermediary for University Patents MIYAZAKI BANK: To Sell 450,000 Shares Through Private Offering MIYAZAKI BANK: Posts JPY3.86-Bil. Income For 9 Months to Dec. 31 MIZUHO FINANCIAL: Fitch Affirms Ratings of 3 Operating Banks MIZUHO FINANCIAL: Trims Profit Forecast by 25% Over Bad Loans SHIMIZU BANK: Leaner Operating Expenses Lead to Turn Around TENNECO INC: Fitch Rates New US$831 Mln Senior Facility at BB+ US AIRWAYS: Fitch Upgrades Senior Unsecured Rating to CCC/RR6 K O R E A HYNIX SEMICONDUCTOR: Ends Legal Feud w/ Toshiba & Inks Accord HYNIX SEMICONDUCTOR: Signs NAND Cross-License Deal with Sandisk M A L A Y S I A FOREMOST HOLDINGS: CIMB Bank Agrees to Debt Settlement Proposal HALIFAX CAPITAL: Bourse Extends Plan Filing Deadline to June 6 KL INFRASTRUCTURE: Gets Plan Filing Extension Until August 31 METROPLEX BERHAD: Unit Faces Ken Grouting's Wind-Up Petition N E W Z E A L A N D AIR NEW ZEALAND: February Group Traffic and Capacity Increase BIG SKY DAIRY: Bank of New Zealand Appoints Liquidator P H I L I P P I N E S HERTZ CORP: S&P Affirms BB- Corporate Credit Rating MIRANT CORP: Bowline Wants to Assume US$200MM Insurance Policy MIRANT CORP: Sells Surplus Equipment to LS Power for US$22 Mil. PHIL. AIRLINES: Orders Two Boeing 777-300ER Passenger Planes PRIME ORION: APA and BPI File Complaint Against Firm's Units SAN MIGUEL: Hong Kong Unit Posts Increased Losses in 2006 S I N G A P O R E GERMAN DISTRICENTRE: Court Issues Wind-Up Order GETRONICS NV: Moody's Confirms Junk Rating on 2008 Bonds GETRONICS NV: Posts EUR145 Million Net Loss for Full Year 2006 GETRONICS NV: Declines to Comment on KPN Takeover Speculation HEXION SPECIALTY: Posts US$109MM Net Loss in Year Ended Dec. 31 PETROLEO BRASILEIRO: Joins Ultra Group & Braskem to Buy Ipiranga SCOTTISH RE: Unit Inks Term Loan Pact with Ableco & Mass. Mutual S R I L A N K A SINHAPUTHRA FINANCE: Fitch Assigns 'BB(lka)' Long-Term Rating T H A I L A N D AGRO INDUSTRIAL: Announces Completion of Rehabilitation Plan ASIA HOTEL: Earns THB159 Million in Year Ended Dec. 31, 2006 BANGKOK RUBBER: Ernst & Young Expresses Going Concern Doubt BANK OF AYUDHYA: Posts Assets and Liabilities as of February '07 TOTAL ACCESS: To Apply for Stock Listing; IPO To Raise THB7 Bil. V I E T N A M * Fitch Affirms Ratings for Socialist Republic of Vietnam - - - - - - - - ================= A U S T R A L I A ================= AUSTRALIAN TEA: Declares First & Final Dividend ----------------------------------------------- Australian Tea Tree Management Pty Limited, which is in liquidation, has declared its first and final dividend on March 20, 2007. Creditors who were unable to prove their debts on March 16, 2007, were excluded from sharing in the dividend distribution. The company's liquidator is: Deryk R. Andrew c/o Cor Cordis Chartered Accountants PO Box Q1165, QVB Post Office Sydney, New South Wales 1230 Australia Telephone:(02) 8221 8433 Facsimile:(02) 8221 8422 About Australian Tea Australian Tea Tree Management Limited provides ornamental shrub and tree services. The company is located in New South Wales, Australia. BESHOLD PTY: Members' Final Meeting Set for April 5 --------------------------------------------------- The members of Beshold Pty. Ltd. will have their final meeting on April 5, 2007, at 10:00 a.m. to receive the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidators are: David M. McCarthy Christopher R. Campbell Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 About Beshold Pty. Located in South Australia, Beshold Pty Ltd is an investor relation company. CARTIGNY MANUFACTURING: Members & Creditors to Meet on April 13 --------------------------------------------------------------- Cartigny Manufacturing (New South Wales) Pty Limited will hold a final meeting for its members and creditors on April 13, 2007, at 10:00 a.m. During the meeting, Liquidator P. M. Walker will present a report about the company's wind-up proceedings and property disposal. The Liquidator can be reached at: P. M. Walker Ferrier Hodgson Chartered Accountants Level 13, 225 George Street Sydney, New South Wales 2000 Australia About Cartigny Manufacturing Cartigny Manufacturing (New South Wales) Pty Limited operates manufacturing industries. CARTIGNY (ADMINISTRATION): Final Meeting Slated for April 13 ------------------------------------------------------------ A final meeting will be held for the members and creditors of Cartigny (Administration) Pty Limited on April 13, 2007, at 10:30 a.m. During the meeting, the members and creditors will hear the liquidator's report regarding the company's wind-up proceedings and property disposal. The company's liquidator is: P. M. Walker Ferrier Hodgson Chartered Accountants Level 13, 225 George Street Sydney, New South Wales 2000 Australia About Cartigny (Administration) Located in New South Wales, Australia, Cartigny (Administration) Pty Limited provides business services. ELENIUM PTY: Members & Creditors' Final Meeting Set on April 13 --------------------------------------------------------------- The members and creditors of Elenium Pty Limited will have their final meeting on April 13, 2007, at 10:30 a.m., to: -- consider the liquidators' report about the company's financial circumstances; and -- approve the liquidators' remuneration for the finalization of the wind-up proceedings. The company's liquidators' are: M. W. Prentice A. L. Smith PPB, Level 46 MLC Centre, 19 Martin Place Sydney, New South Wales 2000 Australia About Elenium Pty Elenium Pty Limited -- also trading as Parkville Farmers, Glengallan Farmers, and Glen Gallan -- is involved with livestock business. EUPHRON PTY: Liquidators to Present Wind-Up Report -------------------------------------------------- Euphron Pty Limited will hold a final meeting for its members and creditors on April 13, 2007, at 11:30 a.m., to receive the report of Liquidators M. W. Prentice and A. L. Smith about the company's wind-up proceedings and property disposal. The Liquidators can be reached at: M. W. Prentice A. L. Smith PPB, Level 46 MLC Centre, 19 Martin Place Sydney, New South Wales 2000 Australia About Euphron Pty Euphron Pty Limited operates holding companies. The company is located in New South Wales, Australia. HORVAT CONSTRUCTION: Will Declare First Dividend on April 28 ------------------------------------------------------------ Horvat Construction Pty Limited, which is subject to a deed of company arrangement, will declare a first dividend for its creditors on April 28, 2007. Accordingly, creditors are required to file their proofs of debt by March 21, 2007, to be included in the dividend distribution. The company's deed administrator is: John Frederick Lord PKF Chartered Accountants Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9251 4100 Facsimile:(02) 9240 9821 Web site: http://www.pkf.com.au About Horvat Construction Horvat Construction Pty Limited is a general contractor of industrial buildings and warehouses. The company is located in New South Wales, Australia. INDOPHIL RESOURCES: Posts AU$197.1-Million NPAT for FY 2006 ----------------------------------------------------------- Indophil Resources NL has filed its unaudited consolidated financial results for fiscal year ended Dec. 31, 2006, with the Australian Securities Exchange, revealing a net profit after income tax of AU$197.1 million for the period, compared with a net loss after tax of AU$49.6 million in fiscal year 2005. Excluding the reversal of the fair value of the MIM Option and the sale of the company's 62.5% beneficial interest in Sagittarius Mines Inc., the net loss after income tax for the year was AU$1.4 million, compared with a net loss after income tax of AU$2.6 million in the previous year. The exercise by Xstrata Queensland Limited -- formerly MIM Holdings Limited -- of the MIM Option over 62.5% of the Class A shares on issue in Sagittarius Mines Inc., the entity through which Indophil holds its interest in the Tampakan Copper-Gold Project, has resulted in the Group recording in its Income Statement of these transactions for the year-ended Dec. 31, 2006: (a) the reversal of the fair value liability of the MIM Option of AU$146.2 million brought to account in 2005 in accordance with AASB 139 "Financial Instruments: Recognition and Measurement; and (b) the recognition of a profit of AU$52.3 million on sale of the 62.5% beneficial interest in Sagittarius. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 1, 2007, Indophil disclosed that Xstrata Queensland has exercised its option to acquire 62.5% of the Tampakan Copper- Gold Project. Indophil revealed that on adoption of AASB 139 in 2005, it brought to account AU$146.2 million in the fair value liability of the MIM Option in favor of Xstrata Queensland through a charge: * to retained earnings/(accumulated losses) of AU$99.2 million for the fair value liability of the MIM Option created by the company's exploration and evaluation activities at the Tampakan Project from the date on which Indophil and Xstrata Queensland entered into the MIM Option Agreement up until at Dec. 31, 2004; and * to the Income Statement of AU$47.0 million for the increase in the fair value liability of the MIM Option during the 2005 year representing the value created from another year of exploration and evaluation activities at the Tampakan Project, including the completion of a scooping study. The fair value amounts charged in 2005 were derived from an option pricing model used to value the "call" option in favor of Xstrata Queensland, Indophil explained. As noted in the TCR-AP, Indophil and Xstrata Copper will complete the exercise and management handover of the project on March 30, 2007. On that date, Indophil will receive AU$50.8 million from the sale, Indophil noted in its Financial Report. The company noted that it had cash balances of AU$62.4 million as at Dec. 31, 2006. No Dividend The company noted that there were no dividends paid during the period (2005: nil) and no dividend is proposed to be paid at balance date Dec. 31, 2006 (2005: nil). There are no nil franking credits available for future reporting periods, the company added. Sets Annual General Meeting The company will hold the annual general meeting of shareholders on May 1, 2007, at 11:00 a.m. The AGM will be held at Level 2, Bayside Room 6, RACV Club, in Bourke Stree, Melbourne. About Indophil Resources Headquartered in Melbourne, Australia, Indophil Resources NL -- http://www.indophil.com/-- conducts mineral exploration and evaluation activities in the Philippines. On April 12, 2005, Indophil and Xstrata Queensland Limited (Xstrata Copper) signed a binding letter of agreement to amend the option granted to Xstrata Copper to acquire a 62.5% interest in the Tampakan Copper-Gold Project. According to the revised agreement, Indophil is required to sole fund an agreed pre-feasibility study work program. The Troubled Company Reporter - Asia Pacific reported on Jan. 26, 2007, that Indophil's balance sheet as of Jan. 25 recorded US$37.79 million in total assets and US$69.96 million in stockholders' equity deficit. INDOPHIL RESOURCES: Increases Interest in Tampakan Project ---------------------------------------------------------- Indophil Resources NL increases its direct interest in the Tampakan Copper-Gold Project in the southern Philippines by agreeing to purchase Filipino partner Alsons Corporation's 5% interest. Under the agreement, Indophil will progressively lift its stake in the Tampakan project from 32.5% to 37.5%. Xstrata Copper, the copper division of the major global mining group Xstrata plc, will hold the remaining 62.5% as part of a separate agreement that will see Xstrata Copper assume project management responsibilities for the Tampakan project on March 30, 2007. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 1, 2007, Indophil Resources disclosed that Xstrata Queensland Limited has exercised its option to acquire 62.5% of the Tampakan Copper-Gold Project. Under the Indophil-Alsons arrangement, Alsons will exchange its 5% interest in the Tampakan project for newly issued Indophil shares and cash payments. The consideration is made up of the equivalent of AU$4.3 million cash and 37 million new shares in Indophil. The transaction will be executed over three tranches as certain key project milestones are met. As each milestone is achieved Indophil will receive approximately one third of Alsons' existing 5% Tampakan project interest. The 11.1 million new shares to be issued to Alsons under the first tranche of this agreement will take the number of shares on issue in Indophil to 386.7 million (up from 375.6m currently). This means that Alsons will immediately hold 3.8% of the issued shares in the company and Indophil will increase its equity in the Tampakan project to approximately 34%. The exchange of shares between Indophil and Alsons directly aligns both companies interests over the long-term. It gives Alsons a direct interest in Indophil, and with the implementation of agreed milestones it ensures that Alsons' long-term involvement in the project is maintained. Under the progressive agreement, Alsons remains firmly committed to playing a vital local role in successfully developing the project by providing a range of strategic and specialized services to maintain and strengthen the project's social license with government and the people of the Philippines. According to Indophil's Managing Director, Tony Robbins, "Indophil Resources remains in a strong financial position. On exercise of the Xstrata option on March 30, 2007, Indophil will have some AU$110 million cash in the bank." The Tampakan project is held by Philippine company Sagittarius Mines Inc., under the Columbio Financial or Technical Assistance Agreement that is a contract with the Philippine Government on behalf of its people. The Tampakan Copper-Gold Project is a two billion tonnes deposit, with potential for growth. Based on current studies, Tampakan is a long-life operation containing 11.6 million tonnes of copper and 14.6 million ounces of gold at a 0.3% copper cut- off grade. It is poised to produce 210,000 tonnes of copper and 218,000 ounces of gold per annum during its first 10 years of production. About Indophil Resources Headquartered in Melbourne, Australia, Indophil Resources NL -- http://www.indophil.com/-- conducts mineral exploration and evaluation activities in the Philippines. On April 12, 2005, Indophil and Xstrata Queensland Limited (Xstrata Copper) signed a binding letter of agreement to amend the option granted to Xstrata Copper to acquire a 62.5% interest in the Tampakan Copper-Gold Project. According to the revised agreement, Indophil is required to sole fund an agreed pre-feasibility study work program. The Troubled Company Reporter - Asia Pacific reported on Jan. 26, 2007, that Indophil's balance sheet as of Jan. 25 recorded US$37.79 million in total assets and US$69.96 million in stockholders' equity deficit. JAISTO INVESTMENTS: Members Resolve to Close Business ----------------------------------------------------- On Feb. 26, 2007, the members of Jaisto Investments Pty Ltd met at a general meeting and decided to liquidate the company's business. In this regard, Ian Carson was appointed as liquidator. The Liquidator can be reached at: Ian Carson PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia About Jaisto Investments Located in Victoria, Australia, Jaisto Investments Pty Ltd is involved with trucking business, except local. LANE COVE: Creditors' Proofs of Debt Due on April 2 --------------------------------------------------- Lane Cove North Estate Pty Limited, which is subject to a deed of company arrangement, requires its creditors to file their proofs of debt by April 2, 2007. The company will declare its first dividend on April 16, 2007. The company's deed administrator is: Ozem Kassem Cor Cordis Chartered Accountants Level 8, 50 Carrington Street Sydney, New South Wales 2000 Australia Telephone:(02) 8221 8433 Facsimile:(02) 8221 8422 About Lane Cove Lane Cove North Estate Pty Limited is involved with residential construction. The company is located in New South Wales, Australia. LONE STAR: Members' Final Meeting Set for April 16 -------------------------------------------------- Lone Star Steakhouse & Saloon (Western Australia) Pty Limited and Lone Star Steakhouse & Saloon (Victoria) Pty Limited will hold final meetings for members on April 16, 2007, at 2:55 p.m. and 3:00 p.m., respectively. Liquidator Geoffrey W. Foster will give a report about the companies' wind-up proceedings and property disposal during the meeting. In a report by the Troubled Company Reporter - Asia Pacific, the companies started to wind up its operations on Oct. 18, 2006. The companies' Liquidator can be reached at: Geoffrey W. Foster Blake Dawson Waldron Level 36 Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Lone Star Lone Star Steakhouse & Saloon (Western Australia) Pty Limited and Lone Star Steakhouse & Saloon (Victoria) Pty Limited operates restaurants. MELBOURNE ACRYLIC: To Declare Final Dividend on April 17 -------------------------------------------------------- Melbourne Acrylic Coatings Pty Ltd will declare a final dividend on April 17, 2007. Failure to prove debts by March 27, 2007, will exclude a creditor from sharing in the dividend. The company's liquidator is: G. M. Rambaldi Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia About Melbourne Acrylic Melbourne Acrylic Coatings Pty Ltd is a distributor of paints and allied products. The company is located in Victoria, Australia. SIEMENS LOGISTICS: Members Opt to Wind Up Firm ---------------------------------------------- At a general meeting held on Feb. 23, 2007, the members of Siemens Logistics and Assembly Systems Pty Ltd resolved to voluntarily wind up the company's operations. In this regard, Geoff Ridgeway was appointed as liquidator. Mr. Ridgeway can be reached at: Geoff Ridgeway Jenkins Peake & Co Chartered Accountants PO Box 1570 Geelong, Victoria 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 About Siemens Logistics Siemens Logistics and Assembly Equipment (Suzhou) Co., Ltd is a distributor of general industrial machinery and equipment. The company is located in Suzhou, China. TREJAY PTY: Will Declare Dividend on March 23 --------------------------------------------- Trejay Pty Ltd, which is in liquidation, will declare a first and final dividend on March 23, 2007. Creditors who were unable to prove their debts on March 12, 2007, are excluded from sharing in the company's dividend distribution. The company's liquidator is: G. S. Andrews G. S. Andrews & Associates 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Trejay Pty Trejay Pty Ltd is a distributor of hand and edge tools. The company is located in Victoria, Australia. VIC PILE: Members' Final Meeting Slated for April 12 ---------------------------------------------------- A final meeting will be held for the members of Vic Pile Pty Ltd on April 12, 2007, at 11:00 a.m. At the meeting, the members will receive the liquidator's report about the company's wind-up proceedings and property disposal. The TCR-AP reported that the company commenced wind-up proceedings on Dec. 12, 2005. The company's liquidator is: Geoff Ridgeway Jenkins Peake & Co Chartered Accountants 1st Floor, Lexen Building 200 Malop Street, PO Box 1570 Geelong, Victoria 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 About Vic Pile Vic Pile Pty Ltd is involved with highway and street construction. The company is located in Victoria, Australia. ================================ C H I N A & H O N G K O N G ================================ ADDCORE DEVELOPMENT: Liquidators Quit Posts ------------------------------------------- Jacky Chung Wing Muk and Gabriel Chi Kok Tam ceased to act as liquidators of Addcore Development Limited on March 6, 2007. According to the Troubled Company Reporter - Asia Pacific, Messrs. Muk and Tam presented the final report about the company's wind-up proceedings on that day. The former Liquidators can be reached at: Jacky Chung Wing Muk Gabriel Chi Kok Tam 8th Floor, Prince's Building 10 Chater Road, Central Hong Kong APEX DRAGON: Members Resolve to Liquidate Business -------------------------------------------------- At an extraordinary general meeting held on March 2, 2007, the members of Apex Dragon E & M Engineering Company Limited agreed to voluntarily wind up the company's operations. In this regard, Desmond Chung Seng Chiong and Roderick John Sutton were appointed as liquidators. The Liquidators can be reached at: Desmond Chung Seng Chiong Roderick John Sutton Ferrier Hodgson Limited 14th Floor, Hong Kong Club Building 3A Chater Road, Central Hong Kong BENQ: Board Rejects Chairman's Offer to Resign ---------------------------------------------- BenQ Corp.'s Board of Directors refused to accept Chairman K.Y. Lee's offer to resign and instead demanded him to turn the company around. Mr. Lee offered to resign from his post after the company failed to make its former German mobile phone subsidiary profitable. The company's board said it will form a task force to review and report on all losses attributed to the acquisition of the mobile phone maker. The Troubled Company Reporter - Asia Pacific reported on March 21, 2007, that BenQ posted a net loss of NT$7.89 billion or US$238 million for the October-December quarter. The TCR-AP also noted that the quarterly loss is the company's fifth straight as its handset business continues to drag after it declared its German unit insolvent late last year. * * * Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the deadline in finding a buyer for the company on Dec. 31, 2006. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's: * continuing operating losses from its handset operations; * high leverage; and * the competitive nature and low profitability of the LCD monitor industry. CAMPELL INTERNATIONAL: Liquidators Resign from Posts ---------------------------------------------------- Lai Kar Yan (Derek) and Darach E. Haughey resigned to be the liquidators of Campell International (Hong Kong) Limited on March 9, 2007. The company started to close its business on Feb. 14, 2006, as reported by the Troubled Company Reporter - Asia Pacific. The former Liquidators can be reached at: Lai Kar Yan (Derek) Darach E. Haughey 35th Floor, One Pacific Place 88 Queensway Hong Kong CHINA MINSHENG: Gains CNY18.2 Billion in Shares Sale ---------------------------------------------------- China Minsheng Bank raised CNY18.2 billion (US$2.3 billion) by issuing shares at CNY9.08 per share, CCTV says, citing a report from Beijing Times. According to a March 20, 2007 report by the Troubled Company Reporter - Asia Pacific, a total of 2 billion new A shares, comprising about 16% of the bank's expanded share capital, were offered to seven domestic institutional investors at an 18% discount. Liu Yonghao, the president of New Hope Group, remains the largest shareholder of the bank, China Minsheng said. New Hope's subsidiaries, New Hope Investment Co. Ltd and Sichuan Nanfang New Hope Industry Co Ltd, secured 410 million shares, the report says, while China Life Insurance Company and Ping An Insurance of China were given six hundred million shares each, the maximum amount allowed to a single investor. The TCR-AP noted that the bank needs the funds to support its expansion and boost its capital adequacy ratio. * * * China Minsheng Banking Corporation Ltd's principal activity is the provision of commercial banking services that include absorbing public deposits, providing short term, medium term, and long term loans, making domestic and international settlement, discounting bills and issuing financial bonds. On September 4, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed on September 5, 2006, China Minsheng Banking Corp.'s Individual D/E and Support 4 ratings. CITIC BANK: Plans US$3 Billion IPO in H.K. & Shanghai Listing ------------------------------------------------------------- China CITIC Bank will launch a US$3 billion initial public offering in which 60% will be listed in Hong Kong and the remaining 40% in the Shanghai bourse, Reuters reports, citing people familiar with the matter. The Hong Kong bourse will hear CITIC Bank's application for listing today, the report says. Sources told Reuters that the bank planned to offer 15% to 20% of its share capital at a discount and that about 10% of the shares on offer are old shares. Banco Bilbao Vizcaya Argentaria, which paid EUR501 million for 5% of CITIC Bank, has an option to increase its holding to 9.9% after the listing, Daisy Ku writing for Reuters adds. China International Capital Corp. and Lehman Brothers are the underwriters of the share sale, Reuters notes. * * * CITIC Bank Co Ltd, formerly China CITIC Bank, is a wholly owned subsidiary of the state conglomerate Citic Group. With 416 branches, CITIC Bank had total assets of CNY689.5 billion at the end of September 2006. On September 11, 2006, Fitch Ratings affirmed the Individual D/E and Support 3 ratings of China CITIC Bank. The ratings outlook is stable. China CITIC Bank's Individual rating reflects its strengthened financial profile, bolstered by recent capital injections from its parent, CITIC Group, and the introduction of much-improved risk management systems. CREDIT GLORY: Taps Borrelli and Walsh as Liquidators ---------------------------------------------------- On March 9, 2007, the creditors of Credit Glory Company Limited appointed Cosimo Borrelli and G Jacqueline Fangonil Walsh as liquidators. The Liquidators can be reached at: Cosimo Borrelli G Jacqueline Fangonil Walsh Borrelli Walsh Limited 1401, Level 14, Tower 1 Admiralty Centre, 18 Harcourt Road Hong Kong CROWNITY LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------ The shareholders of Crownity Limited met on March 8, 2007, and agreed to voluntarily wind up the company's operations. Accordingly, creditors are required to file their proofs of debt by April 10, 2007, to be included in the company's dividend distribution. The company's liquidators are: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong P. K. NG: Liquidator to Receive Proofs of Debt Until April 16 ------------------------------------------------------------- Seto Sau Kuen Christine, as the liquidator of P. K. Ng & Associates Limited, requires the company's creditors to file their proofs of debt by April 16, 2007. The company commenced wind-up proceedings on March 10, 2007. The company's Liquidator can be reached at: Seto Sau Kuen Christine Room 1509 C C Wu Building 302 Hennessy Road, Wanchai Hong Kong PRIME SKILL: Appoints Wong Tak Shing as Liquidator -------------------------------------------------- Wong Tak Shing was appointed as liquidator of Prime Skill Limited Morning Signal Development Limited on March 12, 2007. Mr. Wong can be reached at: Wong Tak Shing Flat A, 2nd Floor Tung Tai Building Nos. 118-124 Main Street East Shaukiwan, Hong Kong RIVERSTONE NETWORKS: Inability to Pay Debts Prompts Wind Up ----------------------------------------------------------- The members of Riverstone Networks Limited held an extraordinary general meeting on March 2, 2007, and decided to voluntarily wind up the company's operations due to its inability to pay its debts. Cosimo Borrelli and G Jacqueline Fangonil Walsh were appointed as liquidators. The Liquidators can be reached at: Cosimo Borrelli G Jacqueline Fangonil Walsh Borrelli Walsh Limited Level 14, Tower 1 Admiralty Centre, 18 Harcourt Road Hong Kong STAR WORLD: Huen Ho Yin Quits Liquidator Post --------------------------------------------- Huen Ho Yin ceased to act as the liquidator of Star World Electronics Company Limited on March 14, 2007. The former Liquidator can be reached at: Huen Ho Yin Units 3309-3311, 33rd Floor West Tower, Shun Tak Centre 168-200 Connaught Road Central Sheung Wan Hong Kong TOM GROUP: 2006 Operating Profit Reaches HK$291 Million ------------------------------------------------------- TOM Group Limited (HKEX: 2383), the Chinese-language media corporation in Greater China, released the annual results of the Group for the year ended Dec. 31, 2006: Financial Highlights: -- Group revenues reached HK$2,911 million -- Operating profit* was HK$291 million -- Profit attributable to shareholders was HK$32 million -- Basic earnings per share was HK0.82 cents For the year ended HK$ million 12/31/2006 12/31/2005 ---------- ---------- Turonver 2,911 3,105 Operating profit 291 311 Profit Attributable to Shareholders 32 260 Basic Earnings Per Share (HK cents) 0.82 6.67 Tommei Tong, Chief Executive Officer and Executive Director of the Group said, "2006 was a year of consolidation for TOM Group. We have started to execute the strategic plan as set out early in the year to rebuild profitability. We streamlined existing operations, disposed non-performing units, rationalized internal resources, strengthened niche products and services, and acquired businesses which add synergy to the Group. Leveraging our established platform on traditional media, coupled with making prudent efforts to expand selective operations in the new media arena, TOM Group is well positioned to drive sustainable growth across our business segments in the years to come." Business Highlights: Publishing -- Engage in internet and e-commerce business via acquisition of Pixnet Digital Media in Taiwan -- Continuous growth of publishing arm in Mainland China Taiwan remains the main growth avenue for the Publishing Group. In February 2007, the group took a significant step in developing internet and e-commerce business by acquiring a leading social networking Web site, namely Pixnet Digital Media -- http://www.pixnet.net/-- which offers blog, photo and online community services in Taiwan. In addition, the online gaming community, Game Base -- http://www.gamebase.com.tw/-- developed by the PC Gamer magazine under Cite Publishing Group, has become the second largest gaming community website in Taiwan in terms of membership registrations and traffic. Game Base began making profit in 2006. Leveraging on the existing content, advertisers and readers base, the group will continue to explore opportunities in expanding online business to capture the robust growth of e-commerce and internet advertising market in Taiwan. In 2006, the circulation of Business Weekly, one of the flagship magazines in Taiwan, continues to grow and is now the best selling magazine in Taiwan, reaching over 137, 000 copies in circulation per issue in the third quarter certified by ABC (Audit Bureau of Circulations). Magazines namely DG Best, Global Business, International Wrist Watch, and MOOK were launched in Mainland China by the Taiwan operations. Global Business, the Mainland China extension of Business Weekly, was launched in the first quarter of 2006. Two quarters later, its circulation per issue was close to 80,000 copies, certified by the BPA (Business of Performing Audits). Outdoor Media -- Diversify media assets to include bus-shelter digital light boxes and other innovative media -- Increase self-owned/leased asset to 88% The group has been actively exploring potential acquisition of outdoor assets in different categories with higher margin in the first tier cities including Beijing, Shanghai, Guangzhou and Shenzhen and selective leading second tier cities. During the year, OMG entered into an agreement with New Media Information Broadcasting Company Limited, a subsidiary of Shanghai Media and Entertainment Management Group, where OMG obtained the sole advertising right of not less than 1,000 bus-shelter digital light boxes located at Puxi area for a period of five years from Jan. 1, 2007 to Dec. 31, 2011. To maximize advertising value for customers, OMG also secured the sole and exclusive distribution rights of Novamedia's advanced illuminated display technology in Greater China and Singapore from Novamedia LP, a US leading illuminated displays provider. In 2006, OMG achieved an increase of 19% total media asset space to over 345, 000 square meters. Self-owned/leased assets increased to 88%. Television and Entertainment -- New media business continues to grow In 2006, CETV was voted among the Top 10 Most Influential TV Brands in Mainland China. New media business continues to grow via partnership with TOM Online and other services providers. Mobile interactive programs like "Happy Laisee" and "Hi! Lucky Taxi" were well received. During the year, a new media distribution company was set up to broaden the revenue streams of the group. The major business of the new company is mainly engaged in interactive programming and third party content online syndication. In March 2007, the pilots for two new interactive programs were completed and one of the programs will go into formal production for pre-sales through our online network. In October 2006, TOM Group acquired Chi-Chi Dei Entertainment Limited, a cutting-edge reality-content production studio aimed at the growing Asian youth market, to further enhance content production capacity. About 30% of programs broadcasted in CETV during prime time were original productions with the rest acquired from Korea, Taiwan and overseas; CETV targets to increase original production broadcast during prime time to 40%. New original production in 2006 included "2R Blog" and "Celebrity Kitchen." CETV will continue to integrate commercial elements to create more branded content and sponsored productions. Sports -- Reposition YC as an integrated marketing communication expert to develop integrated communication campaigns and expand client portfolio TOM Group has repositioned YC Advertising Ltd, a subsidiary of sports group, as an integrated marketing communication expert. Drawing on the diversified media platform of TOM Group, YC will leverage on its excellent relationship with key media in Mainland China and its own all-rounded event management experience to develop integrated communication campaigns with influencing media. It will also provide value-added executions to clients by cross-selling relevant products of TOM's business groups. The client portfolio will be further expanded to include international advertising/PR agencies in China, and clients in industries with substantial expenditure in below-the- line activities. China Open 2006 was held from September 11-24, 2006, in Beijing. In March 2007, the Group signed an agreement to dispose of an associated company, Beijing China Open Promotion Company Limited and the subsidiaries holding the memberships of ATP (Association for Tennis Professionals) and WTA (Women Tennis Association) for a total consideration of HK$120.9 million; an impairment provision of HK$11 million relating to the disposal was made in 2006. Upon completion of the disposal, the Group will exit the sport business and focus its resources on the other four business groups. Internet -- Develop e-commerce business in China in partnership with eBay/Eachnet -- On-going efforts to develop and innovate new value added services for TOM-Skype In response to the changing operating environment, TOM Online has focused on managing its wireless Internet cost structure to boost profitability and competitiveness, as well as increasing online advertising revenues and other returns from its portal assets during the year. TOM Online will continue to explore new opportunities to leverage its portal assets on the introduction of 3G wireless services. The joint venture agreement with eBay/Eachnet combines the respective expertise to build a new China marketplace business in 2007. The combination of eBay's global e-commerce knowledge and the company's solid local market expertise creates an attractive and profitable online market place for Mainland Chinese buyers and sellers. Moreover, the joint venture will benefit from TOM Online's strong position in the Chinese wireless Internet market in developing new mobile commerce opportunities in the long run. TOM Online is also working to maintain the rapid growth of the TOM-Skype community in 2007 with the objective of developing and innovating new value added services around the TOM-Skype community commencing from later part of 2007. At the end of January 2007, there were over 31.5 million registered TOM-Skype users, up from over 9.0 million at the end of February 2006, an increase of over 22.5 million new registered users. A more detailed copy of TOM Group's results announcement is available for free at: http://202.66.146.82/listco/hk/tomgroup/annual/2006/res.pdf About TOM Group Limited TOM Group Limited (stock code: 2383) is listed on the Main Board of the Stock Exchange of Hong Kong. A leading Chinese-language media conglomerate in Greater China, TOM Group has diverse business interests in Internet (TOM Online), Outdoor Media (TOM Outdoor Media Group), Publishing, Television and Entertainment across markets in Mainland China, Taiwan and Hong Kong. In each of the areas it operates, TOM Group has secured market leadership. The Group was founded in October 1999 as a joint venture between Hutchison Whampoa, Cheung Kong (Holdings) Limited, and other strategic investors. Headquartered in Hong Kong, the Group has regional headquarters in Beijing, Shanghai and Taipei with over 4,000 employees in more than 20 cities. On March 13, 2007, Standard & Poor's Ratings Services affirmed its BB+ long-term corporate credit rating on TOM Group Ltd. The outlook is stable. At the same time, Standard & Poor's also affirmed its BB+ issue rating on the outstanding convertible bonds due 2008 that were issued by its subsidiary, TOM Holdings Ltd., and guaranteed by TOM. TRI-BEST: Names Chiu Man Wai as Liquidator ------------------------------------------ At an extraordinary general meeting held on March 12, 2007, the members of Tri-Best Limited passed a resolution appointing Chiu Man Wai as liquidator. The Liquidator can be reached at: Chiu Man Wai Room 901, One Hysan Avenue Causeway Bay Hong Kong UNITON PROPERTIES: Appoints Lau Wing Yat as Liquidator ------------------------------------------------------ On March 7, 2007, Lau Wing Yat was appointed as liquidator of Uniton Properties Limited. The Liquidator can be reached at: Lau Wing Yat Unit C, 16th Floor, Chinaweal Centre, 414 Jaffe Road Wanchai, Hong Kong YIU FAI: Creditors to Prove Debts Until April 16 ------------------------------------------------ Yiu Fai Knitting Factory Limited, which is in members' voluntary wind-up, requires its creditors to file their proofs of debt by April 16, 2007. Failure to prove debts by the due date will exclude a creditor from sharing in the company' dividend distribution. The company's liquidator is: Fan King Kit, Terence Flat B, 16th Floor, Kwong On Bank (Mongkok Branch) Building 728 Nathan Road Mongkok, H.K.S.A.R. ZTE CORP: Obtains US$1.5 Billion on Loan Deal with ETC ------------------------------------------------------ ZTE Corp signed a US$1.5 billion loan deal with Ethiopian Telecommunications Corp for the upgrading of its telephone network, Forbes relates, citing the online version of Ethiopian newspaper, Capital. The deal, according to the report, was inked at the Sino-Africa forum held in China last year. Forbes also recounts that in September 2006, ETC signed a memorandum of understanding with ZTE Corp, Huawei Technologies Co, and Chinese International Telecommunication Construction Corporation, to undertake expansion projects worth US$2.4 billion, effective for four years. * * * 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 ========= KARNATAKA BANK: To Issue Tier II Bonds to Augment Capital --------------------------------------------------------- Karnataka Bank Ltd proposes to raise funds through the issue, for private placement, unsecured redeemable nonconvertible subordinated (tier II) bonds (series I), the bank discloses in a regulatory filing with the Bombay Stock Exchange. To consider the proposal, the bank's board of directors will meet on March 26, 2007. Without disclosing how much funds it plans to raise, the bank says the proceeds will be used to augment its capital. The bonds will be issued in the form of promissory notes/debentures. Headquartered in Mangalore, India, Karnataka Bank Ltd -- http://karnatakabank.com/ktk/Index.jsp-- provides products and services for business and personal purposes that include borrowing facilities, deposits, providing optimum returns on surplus funds or helping with overseas transactions. The bank has two business segments: Treasury and Other Banking Operations. Treasury Operations mainly comprise of surplus statutory liquidity ratio and non-SLR investments. Other Banking Operations mainly consist of advance portfolio of the bank and SLR securities to the extent of SLR requirements. The bank provides Working Capital Finance, Term Loans and Infrastructure Finance. The Business Finance Products offers both fund-based and non-fund-based products. The bank has diversified into the marketing of life insurance products of MetLife India Insurance Co. Pvt. Ltd. The Bank has entered into a memorandum of understanding with Bajaj Allianz General Insurance Co. Ltd. for distribution of its general insurance products through its branches. Fitch Ratings gave Karnataka Bank a support rating of 5. LML LTD: Members Approves Directors and Auditors' Reappointments ---------------------------------------------------------------- LML Ltd's shareholders at the 21st Annual General Meeting on Feb. 28, 2007, have agreed to the reappointment of: -- Sanjeev Shriya and L. K. Singhania, as directors of the company; and -- M/s. Parikh & Jain, Chartered Accountants, Kanpur and M/s. Khandelwal Jain & Co., Chartered Accountants, Mumbai as auditors of the company. The shareholders also accorded to the appointment of R. K. Srivastava as new director, liable to retire by rotation. Furthermore, the members agreed to the adoption of the company's audited balance sheet as at Sept. 30, 2006, and the profit and loss account for the year ended on that date, together with the related reports of directors and auditors. 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. LML'S board of directors, at a meeting on Sept. 8, 2006, decided that the company 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. LSI LOGIC: Near Completion of Merger Cues S&P's Positive Watch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' corporate credit rating and other ratings on Milpitas, California-based LSI Logic Corp. on CreditWatch with positive implications, reflecting the anticipated completion of its planned share- funded merger with Agere Systems Inc. by the end of the March quarter. LSI Logic Corp. is a leading supplier of application-specific integrated circuits (ASICs) and multicustomer application- specific standard products (ASSPs) used in the communications and data storage industries, and also supplies storage systems. Agere supplies chips for the storage industry and wireless handsets. "The merger should strengthen the combined company's position in its industry and reduce costs through the elimination of redundant operations," said Standard & Poor's credit analyst Bruce Hyman. During 2006, both companies completed their evolution to a fabless business model, thereby obviating future large capital expenditures and also substantially reducing likely free cash flow volatility. Pro forma for the merger, the company had sales of US$3.5 billion in 2006, with EBITDA of US$380 million and debt of US$1.0 billion, including capitalized operating leases and Agere's pension and postretirement benefit obligations. Pro forma cash balances were US$1.5 billion. Following the completion of the merger, the corporate credit rating will be raised to 'BB' with a stable outlook, and the subordinate debt rating will be raised to 'B+'. Milpitas, Calif.-based LSI Logic Corporation (NYSE: LSI) -- http://www.lsi.com/-- provides silicon-to-system solutions that are used at the core of products that create, store, and consume digital information. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions, and software applications. LSI products enable technology companies in the Storage and Consumer markets to deliver some of the most advanced and well-known electronic systems in the market today. The company has offices in India, Korea, and Singapore. ORIENTAL BANK OF COMMERCE: Signs MOU with IDBI Capital ------------------------------------------------------ Oriental Bank of Commerce has signed a memorandum of understanding with IDBI Capital Market Services Ltd. for providing Online Share Trading facility for its customers, the bank informs the Bombay Stock Exchange in a regulatory filing. The filing did not provide the financial details of the deal. IDBI Capital Market, a securities firm, is a wholly owned subsidiary of IDBI Ltd. IDBI Capital offers a full suite of products and services including primary dealing in government securities, corporate bonds and bank bonds, stock broking- institutional and retail and distribution of financial products. 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 rating have been affirmed at C/D. On March 15, 2007, Fitch upgraded the support rating of the bank to '3' from '4'. PUNJAB NATIONAL BANK: Goldman Sachs Investments Increases Stake --------------------------------------------------------------- Goldman Sachs Investments (Mauritius) I Ltd has increased its stake in Punjab National Bank to 5.195% after buying 2,000,000 shares in the bank on March 7. A disclosure with the Bombay Stock Exchange reveals that before the acquisition, Goldman Sachs Investments had 14,380,350 shares in the company, or 4.561%. With the shares, which were purchased in open market, the investment firm now owns 16,380,350 shares in the bank. Headquartered in New Delhi, India, Punjab National Bank -- http://www.pnbindia.com/-- is a public-sector commercial bank in India, offering banking products and services to corporate and commercial, retail and agricultural customers. The bank has expanded its operations to provide products and services to over 36 million customers across India through more than 4,510 branches. Its banking operations for corporate and commercial customers include a range of products and services for large- corporate customers, as well as for small- and middle-market businesses and government entities. It also caters to the financing needs of the agricultural sector and other priority sectors, including small-scale industries. Its retail credit products include home loans, personal loans and automobile loans. Through its subsidiaries and joint ventures, the Bank deals in Indian government securities and provides housing finance and asset-management services. Fitch Ratings gave Punjab National Bank a 'C/D' individual rating. TRANSWITCH CORP: Cuts Net Loss to US$11MM in Yr. Ended Dec. 31 -------------------------------------------------------------- TranSwitch Corp. reported that for year ended Dec. 31, 2006, its net loss was US$10.85 million on total net revenues of US$38.92 million, as compared with a net loss of US$23.75 million on total net revenues of US$32.9 million for the year ended Dec. 31, 2005. As of Dec. 31, 2006, the balance sheet of the company showed total assets totaling US$82.65 million, total liabilities of US$58.6 million, resulting to total stockholders' equity of US$24.05 million. The company had cash and cash equivalents of US$57.72 million as of Dec. 31, 2006, up from US$38.84 million in 2005. This is the company's primary source of liquidity, since it is not currently generating positive cash flow from its operations. The company's cash equivalents as of Dec. 31, 2006 consist of money market instruments and commercial paper. The company has financed its operations and has met its capital requirements since incorporation in 1988 primarily through private and public issuances of equity securities, convertible notes, bank borrowings and cash generated from operations. Financial Commitments The company has existing commitments to make future interest payments on the Plus Cash Notes and to redeem these notes in September 2007. Over the remaining life of the outstanding Plus Cash Notes, it expects to accrue and pay about US$1.6 million in interest to the holders of the Notes. The company has outstanding operating lease commitments of US$39.7 million, payable over the next 11 years. Some of these commitments are for space that is not being utilized and, for which, the company recorded restructuring charges in prior years for excess facilities. Total contractual obligation of the company as of Dec. 31, 2006, amounted to US$74.94 million. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1b78 About TranSwitch Corp. Based in Shelton, Conn., TranSwitch Corporation (NASDAQ: TXCC) -- http://www.transwitch.com/-- designs, develops and markets innovative semiconductors that provide core functionality and complete solutions for voice, data and video communications network equipment. TranSwitch is an ISO 9001: 2000 registered company. The company has locations in India, Germany and the United States. * * * TranSwitch Corp. carry Standard and Poor's Ratings Service's B- long-term foreign and local issuer credit ratings. STATE BANK OF INDIA: To Raise INR10-Billion via Bonds ----------------------------------------------------- State Bank of India plans to raise INR10 billion (US$228 million) through a placement of lower Tier-II bonds this week, Reuters reports, citing an unnamed banking source. The bonds reportedly will mature in nine years and three months carrying coupon of 9.85% payable annually. Reuters sources said that the bank is in talks with Central Board of Trustees, which manages pension funds. "It is also in talks with two banks for raising this amount," the news agency quotes its source as saying. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on Feb. 8, 2007, assigned its 'BB' rating to the proposed Hybrid Tier I perpetual notes to be issued by the State Bank of India. S&P's Bank Fundamental Strength Rating for SBI remains at 'C'. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. * SEBI Eases Listing Regulation for Firms Issuing Debentures ------------------------------------------------------------ The Securities and Exchange Board of India permits submission of unaudited financial results subject to limited review for companies whose debentures are listed. SEBI vide circular dated March 20, 2007, has amended the listing agreement for debentures in order to rationalize the provisions of continuous disclosures made by issuers who have listed their debt securities and not their equity shares; and to introduce submission of unaudited financial results with a limited review. Pursuant to the amendment, issuers whose debentures have been issued on private placement basis will submit unaudited half- yearly results subject to a limited review instead of half- yearly audited results, as required at present. Issuers whose debentures have been issued on public/rights issue basis will be required to submit unaudited quarterly results subject to a limited review instead of unaudited quarterly results without limited review required at present. The results are to be submitted to the exchange within one month from the end of the reporting period and a copy of the limited review report prepared by the statutory auditors of the company (or in case of public sector undertakings, by any practicing Chartered Accountant) is to be submitted within two months from the end of the period. The circular also provides a format for the limited review report. A full-text copy of the circular is available for free at: http://www.sebi.gov.in/circulars/2007/circfd2007.pdf ================= I N D O N E S I A ================= ALCATEL-LUCENT: Equips S-Bahn Berlin With IP-Based Network ---------------------------------------------------------- Alcatel-Lucent is equipping the Deutsche Bahn AG`s S-Bahn Berlin GmbH urban railway system in Berlin and Brandenburg, Germany, with a highly available, fully IP-based communication network that will support train dispatch by the driver via CCTV. This unique installation speeds up train dispatch at the platform and improves passenger safety, and is the first of its kind worldwide for an urban railway system. S-Bahn Berlin's technical operations will be improved significantly by the combination of fixed and mobile communications technology in a unique new operating and information system. For the first time, train dispatch can be realized via television-quality CCTV images of the platform and car doors that are transmitted to the driver's cab. Four stationary video cameras on the platform transfer images directly to a monitor in the driver's cab and to the control office via solution developed by Alcatel-Lucent. The system not only speeds up operations, but also enhances safety. Passenger information in the form of loudspeaker announcements, information kiosks on the platforms, and displays in the trains are also delivered via the new IP network. With this investment, Deutsche Bahn AG is moving forward in its efforts to enhance customer satisfaction and win new customers by deploying state-of-the-art technology. Around 1.4 million passengers a day use the S-Bahn Berlin network in the Berlin- Brandenburg region. "We have exact safety standards and want to keep our customers informed about rail traffic and special occurrences as quickly and reliably as possible via display boards and loudspeaker announcements. It's essential that we introduce these measures today to ensure that our new railway infrastructure will still fulfill our requirements in the future. By choosing an IP/MPLS network, Deutsche Bahn AG in Berlin will have a multimedia platform at its disposal that can be scaled to support speeds of up to 200 Gbps and expanded nationwide, providing a solid foundation for innovative technologies of the future," explains Erik Brych, project manager for the communication network and CTO of the overall project for S-Bahn Berlin GmbH. "For Alcatel-Lucent, this is an international reference project that will demonstrate our system integration expertise. Our solution also fulfills the most stringent availability demands," said Alf Henryk Wulf, board member of Alcatel-Lucent Deutschland AG in Stuttgart, Germany. The full-scale installation of the communication network on the platforms has begun, following eight months of a successful pilot operation. As the system integrator, Alcatel-Lucent will be installing the complete IP-based information and operating system, as well as the CCTV surveillance system. Video specialist Indigovision will be delivering the video management system, a flexible and highly scalable, television- quality video-over-IP solution. Alcatel-Lucent will also be cooperating with BUG Verkehrsbau AG in delivering the optical- fiber network. The train dispatch system will be installed in cooperation with PSI Transcom GmbH. The components of the MPLS WAN include Alcatel-Lucent 7750 Service Routers for the backbone network, the Alcatel-Lucent 7450 Ethernet Service Switch for the edge, and the Alcatel- Lucent OmniSwitch 6224 for connectivity to unmanned stations. The Alcatel-Lucent 7750 SR supports service- and content- specific unicast/multicast routing and security functions. The provision of the new passenger information on stations with dispatcher personnel is realized via the Alcatel-Lucent 7450 ESS. The administration of the MPLS WAN will be handled by the Alcatel 5620 Service Aware Manager, which automates routine tasks while supporting the introduction and administration of new services. 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: Extends Existing Alliance With T-Systems -------------------------------------------------------- Alcatel-Lucent is continuing an existing alliance with T- Systems, the business customer division of Deutsche Telekom. This new agreement extends an existing agreement focused on IP- enabled voice solutions, and now offers T-Systems' enterprise customers with the opportunity to transform their networks and services through the convergence of voice and data networks using the industry's most complete enterprise communications solutions portfolio. The agreement is focused on transforming enterprise networks in order to improve the efficiency and security of their networks while reducing overall costs and enabling enterprises to generate new business through improved interaction with customers. As a result of the breadth of Alcatel-Lucent's enterprise portfolio, T-Systems will be able to accurately address all segments of the enterprise network - from small businesses to multinationals. Under the new agreement, Alcatel-Lucent's IP-based data products such as the OmniStack, OmniSwitch and OmniAccess will complement the voice communications offerings already being provided to T- Systems' customers, and customers will benefit from the availability of complete end to end solutions from a single vendor. Helmut Binder, Chief Marketing and Product management Officer, T-Systems: "With a complete product portfolio of Alcatel-Lucent IP telecommunications systems and data equipment, we're in an excellent position to deliver our enterprise customers complete, custom-tailored, IP-based solutions. We have already successfully marketed the first complete solutions." "Alcatel-Lucent has expanded its partnership with T-Systems to include powerful data communications products that will allow enterprise customers to transform their businesses, as they ramp up the level of availability and security associated with their communications systems. We want to support T-Systems in its role as a leading ICT provider in delivering integrated voice and data solutions on a one-stop basis," explained Hubert de Pesquidoux, President of Alcatel-Lucent's enterprise activities. Alcatel-Lucent products cover every need regarding availability, security, scalability and flexible communications infrastructures while being easy to manage. About T-Systems T-Systems delivers high-quality services combining information and communication technology. The company's broad expertise in both fields makes the business customer division of Deutsche Telekom a preferred partner for multinational corporations, small and medium-sized businesses and public institutions. Over 60,000 customers from every industry worldwide benefit from the company's special expertise in providing integrated ICT solutions from a single source. T-Systems is the only company to offer its own complete ICT portfolio and to combine IT and communication technology to produce new solutions. In 2006, 56,000 employees in over 20 countries generated sales of 12.6 billion euros. For more information about the company and its services, see external link http://www.t-systems.com/ 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: Grabs No. 1 Spot in 4th Qtr. IP DSLAM Shipments --------------------------------------------------------------- Broadbandtrends, industry analyst firm, has reported that Alcatel-Lucent took the No. 1 position worldwide for IP DSLAM shipments in the 4th quarter of 2006 with a 32% market share. This major accomplishment in a very competitive market is further confirmation of Alcatel-Lucent's technological leadership and innovation in the IP access market segment. Teresa Mastrangelo, Principal Analyst at Broadbandtrends commented: Alcatel-Lucent continues to successfully deliver solutions that anticipate the market and operational needs of network operators. This was demonstrated by strong operator demand for Alcatel-Lucent's IP-DSLAM platform, resulting in sequential growth of 58% and year over year growth that far exceeds its competitors." Alcatel-Lucent has consistently been acknowledged as the market leader in broadband access. At the beginning of 2007, industry analyst firm Dell'Oro again confirmed the company's worldwide leadership in the DSL market, with 126 million DSL lines shipped worldwide and an overall market share of 42% for 2006. This is almost 4 times more than its closest competitor. Alcatel-Lucent continues to set the pace for next generation access with its ISAM product family, which includes the 7302 ISAM, the ISAM voice package, the 7330 ISAM FTTN, and the 7342 ISAM FTTU which extends the bandwidth potential of fiber from the network core to the subscriber premises using the latest GPON recommendations of the Full Service Access Network group. =The ISAM product family is designed for 100% IPTV and NGN /IMS voice convergence in access. Moreover, it provides an unsurpassed IPTV experience with a 5 star rating for video support, as well as cost effective migration to packet-based voice. As well as award winning products, Alcatel-Lucent also provides added value elements in its access portfolio that include business consultancy, network operations, network management and digital home care solutions. More than 125 customers have adopted the ISAM product family globally -- including 80% of the top 20 DSL operators in the world. Alcatel-Lucent is also engaged in more than 60 FTTx projects around the world, more than 20 of which are with GPON. 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: May Post IDR400-Bil. Profit in 2006 ----------------------------------------------------- PT Apexindo Pratama Duta may report a profit of IDR400 billion in 2006 due to higher sales and foreign-exchange gains, Bloomberg News says, citing an Investor Daily Indonesia report. Apexindo Finance Director Agustinus B. Lomboan expects orders for offshore gas-drilling rigs will boost company sales to rise 30% this year, Investor Daily relates. Apexindo reportedly plans to pay PT Bank Central Asia its US$8-million debt by August from internal cash. 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. AVNET INC: To Release 3rd Qtr. FY2007 Results on April 26 --------------------------------------------------------- Avnet, Inc. revealed that its third quarter fiscal year 2007 earnings disclosure is scheduled to be webcast live via the Internet at http://www.ir.avnet.com/on Thursday, April 26, 2007. Avnet will issue a press release outlining its financial results followed by an interactive webcast at 2:00 p.m. Eastern, 1:00 p.m. Central, 12:00 p.m. Mountain and 11:00 a.m. Pacific time. Roy Vallee, Avnet's chairman and chief executive officer, and Ray Sadowski, Avnet's chief financial officer, along with other members of Avnet's senior management team, will comment on the Company's results and respond to participants' questions, which may be submitted via the Internet. Please log on to the webcast at least 15 minutes prior to the start of the event to register and download any necessary software. Additional financial information accompanying the webcast will also be available at http://www.ir.avnet.com/ About Avnet Inc. Avnet, Inc., headquartered in Phoenix, Arizona, is one of the largest worldwide distributors of electronic components and computer products, primarily for industrial customers. Revenues for the fiscal year ended July 1, 2006 were US$14.3 billion. It has operations in these Asia-Pacific countries: Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines and Singapore. The Troubled Company Reporter - Asia Pacific reported on March 6, 2007, that Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. Ratings affirmed: * Corporate Family Rating, Ba1 * Senior Unsecured Notes with various maturities, Ba1, LGD3, 49% * Senior/Subordinated shelf ratings, Ba1 / Ba2 The outlook is positive. BANK NEGARA: Leads Financing of IDR1.52-Trillion Toll Road ---------------------------------------------------------- PT Bank Negara Indonesia led syndication with two other creditors to finance PT Marga Nujyasuma Agung for the construction of the Surabaya - Mojokerto toll road of approximately 36.5 km. The syndicated loan was signed by the President Director of BNI, Sigit Pramono, on behalf of the creditors, and the President Director of PT Marga Nujyasuma Agung, A Moelia Aida; witnessed by the Minister of Public Works of the Republic of Indonesia, Djoko Kirmanto, and Chairman of the Toll Road Operating Board, Hisnu Pawenang. This credit syndication is used to finance a project amounting to IDR1.52 trillion, and which encompasses four regencies in Surabaya, Sidoarjo, Gresik and Mojokerto. Previously, in 2006, BNI had also financed the construction of the overpass intersection in the Waru toll section amounting to IDR422 billion. On the ocassion, Sigit Pramono remarked that the signing of this syndication underlines BNI's commitment to support the acceleration of economic growth through the construction of toll roads. "Infrastructure remains one of the focal points of BNI in our financing program," he said. He went on to say that, from a target of IDR4.1 trillion of financing that had been set for the infrastructure sector in 2006, by December of the year, the realized figure exceeded this target, reaching IDR8.60 trillion. Infrastructure credit from BNI comprises financing for toll roads, energy and electricity, and agriculture. About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, a securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 6, 2007, Moody's Investors Service revised the outlook from positive to stable the ratings of PT Bank Negara Indonesia's senior debt and foreign currency long-term deposit ratings to positive from stable. The bank's short-term deposit rating and long-term subordinated debt rating continue to carry the rating agency's stable outlook and the bank financial strength rating a positive outlook. The bank's detailed ratings are: -- senior/subordinated debt of Ba3/Ba3; -- foreign currency long-term/short-term deposit of B2/Not Prime; and -- bank financial strength of E. TCR-AP reported on Feb. 1, 2007, Fitch Ratings has affirmed all the ratings of Bank Negara as follows: * Long-term foreign and local currency Issuer Default ratings 'BB-' * Short-term rating 'B', * National Long-term rating 'A+(idn)', * Individual 'D', and * Support '4'. The Outlook for the ratings was revised to Positive from Stable. Standard & Poor's Ratings Services revised the outlook on the local currency counterparty credit rating on Bank Negara to stable from positive. At the same time, Standard & Poor's affirmed its foreign and local currency ratings on BNI (B+/Stable/B). CORUS GROUP: Shareholders Approve Tata Steel Offer -------------------------------------------------- The scheme of arrangement to implement the recommended offer for Corus Group plc by Tata Steel UK Limited at a price of 608 pence per ordinary share in cash was considered. At both the Court Meeting and at the Extraordinary General Meeting, shareholders approved the Scheme by the requisite majority. Voting Results Court Meeting Resolution Description For Votes % Against Votes % ----------- --------- - ------------- - To approve the Scheme 226,783,105 97.43 5,988,195 2.57 Extraordinary General Meeting Resolution For Against Description Votes % Votes % Abstentions ----------- ----- - ------- - ----------- Special 227,167,597 97.48 5,866,894 2.52 2,252,884 resolution to approve Scheme, to amend Articles of Association of the company, to cancel all Cancellation Shares and Corus Deferred Shares, to reduce share capital, to increase authorized capital, and to authorize allotment of shares. A total of 31,985 shareholders holding in aggregate 232,771,300 shares attended the Court Meeting in person and shareholders holding, in aggregate, 233,034,491 shares attended the Extraordinary General Meeting in person. The expected timetable of the remaining principal events required to implement the Scheme is: March 27 Court hearing to sanction the Scheme March 29 Dealings in Corus Shares suspended on the London Stock Exchange and the Amsterdam Stock Exchange and dealings in Corus ADSs suspended on the New York Stock Exchange March 30 Court hearing to confirm the Reduction of Capital April 2 Effective Date of the Scheme Tata Steel disclosed on Feb. 7 that it intends to dispatch the consideration pursuant to the Scheme as soon as practicable following the Effective Date and, if practicable, on the Effective Date. Tata Steel is, in any event, required under the terms of the Scheme to despatch the consideration pursuant to the Scheme not more than 14 days after the Effective Date. "Tata Steel is pleased with the outcome of the EGM. It stands committed to work along with Corus to create a vibrant and value creating enterprise," Tata Steel Managing Director B. Muthuraman was quoted by The Telegraph as saying. As previously repoorted in the Troubled Company Reporter - Asia Pacific, Tata Steel won an auction for Corus over Companhia Siderurgica Nacional after offering investors 608 pence per share in cash, or GBP5.7 billion (US$11.3 billion). About Tata Steel Established in 1907, Tata Steel is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). About Corus Group Corus Group plc, fka British Steel, was formed when the UK privatized its major steelworks in 1988. It then changed its name to Corus Group after acquiring most of Dutch rival oninklijke Hoogovens. Corus makes coated and uncoated strip products, sections and plates, wire rod, engineering steels, and semi-finished carbon steel products. It also manufactures primary aluminum products. Customers include companies in the automotive, construction, engineering, and household-product manufacturing industries. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. * * * As reported in the Troubled Company Reporter - Asia Pacific on Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\ long-term corporate credit rating on U.K.-based steelmaker Corus Group PLC on CreditWatch with developing implications, after the completion of the auction process, during which India-based steel manufacturer Tata Steel Ltd. offered the highest bid of 608 pence per share. This values the company at GBP5.75 billion, up from the 455 pence per share of the initial bid. At the same time, the 'BB+' long-term debt rating on Corus' EUR700 million senior secured bank loan and the 'BB-' unsecured debt ratings on Corus remain on CreditWatch with developing implications. The 'B' short-term corporate credit rating remains on CreditWatch with positive implications. All ratings were placed on CreditWatch on Oct. 18, 2006, following the disclosure of an initial bid by Tata Steel. On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating Watch Negative following a recommended bid, valued at GBP6.2 billion, from India-based Tata Steel Limited in the wake of an auction process conducted by the UK Takeover Panel on 30-31 January 2007. The RWN also applies to the 'B+' ratings on CS's EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m 6.75% guaranteed bonds. At the same time, Moody's Investors Service placed Corus Group plc's Ba2 Corporate Family and other ratings under review. CORUS GROUP: LSE Admits 49,000,000 Ordinary Shares for Trading -------------------------------------------------------------- Application has been made to The U.K. Listing Authority and the London Stock Exchange for block listings totaling 49,000,000 Ordinary shares of 50 pence each to trade on the London Stock Exchange and to be admitted to the Official List upon issuance. The shares shall rank equally with the existing issued shares of Corus Group plc. The Block listings consist of 43,000,000 shares to be issued under the Leverage Equity Acquisition Plan and 6,000,000 shares to be issued under the Executive Share Option Scheme. About Tata Steel Established in 1907, Tata Steel is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). About Corus Group Corus Group plc, fka British Steel, was formed when the UK privatized its major steelworks in 1988. It then changed its name to Corus Group after acquiring most of Dutch rival oninklijke Hoogovens. Corus makes coated and uncoated strip products, sections and plates, wire rod, engineering steels, and semi-finished carbon steel products. It also manufactures primary aluminum products. Customers include companies in the automotive, construction, engineering, and household-product manufacturing industries. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. * * * As reported in the Troubled Company Reporter - Asia Pacific on Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\ long-term corporate credit rating on U.K.-based steelmaker Corus Group PLC on CreditWatch with developing implications, after the completion of the auction process, during which India-based steel manufacturer Tata Steel Ltd. offered the highest bid of 608 pence per share. This values the company at GBP5.75 billion, up from the 455 pence per share of the initial bid. At the same time, the 'BB+' long-term debt rating on Corus' EUR700 million senior secured bank loan and the 'BB-' unsecured debt ratings on Corus remain on CreditWatch with developing implications. The 'B' short-term corporate credit rating remains on CreditWatch with positive implications. All ratings were placed on CreditWatch on Oct. 18, 2006, following the disclosure of an initial bid by Tata Steel. On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating Watch Negative following a recommended bid, valued at GBP6.2 billion, from India-based Tata Steel Limited in the wake of an auction process conducted by the UK Takeover Panel on 30-31 January 2007. The RWN also applies to the 'B+' ratings on CS's EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m 6.75% guaranteed bonds. At the same time, Moody's Investors Service placed Corus Group plc's Ba2 Corporate Family and other ratings under review. CORUS GROUP: Deutsche Bank Holds 3.06% Equity Stake --------------------------------------------------- Corus Group plc received notification on March 16 from Deutsche Bank AG London, in accordance with DTR 5 of the Transparency Obligations Directive, that on March 12 Deutsche Bank AG and its subsidiary companies had a notifiable interest in 28,909,772 ordinary shares amounting to 3.06% of Corus Group plc's issued share capital. Deutsche Bank AG London is a branch of Deutsche Bank AG, a corporation domiciled in Frankfurt, Germany. About Corus Group Corus Group plc, fka British Steel, was formed when the UK privatized its major steelworks in 1988. It then changed its name to Corus Group after acquiring most of Dutch rival oninklijke Hoogovens. Corus makes coated and uncoated strip products, sections and plates, wire rod, engineering steels, and semi-finished carbon steel products. It also manufactures primary aluminum products. Customers include companies in the automotive, construction, engineering, and household-product manufacturing industries. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. * * * As reported in the Troubled Company Reporter - Asia Pacific on Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\ long-term corporate credit rating on U.K.-based steelmaker Corus Group PLC on CreditWatch with developing implications, after the completion of the auction process, during which India-based steel manufacturer Tata Steel Ltd. offered the highest bid of 608 pence per share. This values the company at GBP5.75 billion, up from the 455 pence per share of the initial bid. At the same time, the 'BB+' long-term debt rating on Corus' EUR700 million senior secured bank loan and the 'BB-' unsecured debt ratings on Corus remain on CreditWatch with developing implications. The 'B' short-term corporate credit rating remains on CreditWatch with positive implications. All ratings were placed on CreditWatch on Oct. 18, 2006, following the disclosure of an initial bid by Tata Steel. On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating Watch Negative following a recommended bid, valued at GBP6.2 billion, from India-based Tata Steel Limited in the wake of an auction process conducted by the UK Takeover Panel on 30-31 January 2007. The RWN also applies to the 'B+' ratings on CS's EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m 6.75% guaranteed bonds. At the same time, Moody's Investors Service placed Corus Group plc's Ba2 Corporate Family and other ratings under review. HESS CORP: Declares Regular Quarterly Dividend on Common Stock -------------------------------------------------------------- The board of directors of Hess Corporation declared a regular quarterly dividend of 10 cents per share payable on the company's common stock on March 30, 2007. Only holders of record at the close of business on March 16, 2007, are eligible for the dividends. Headquartered in New York, Hess Corporation (NYSE:HES) -- http://www.hess.com/-- is a global integrated energy company engaged in the exploration for and the development, production, purchase, transportation and sale of crude oil and natural gas. The corporation also manufactures, purchases, trades and markets refined petroleum and other energy products. The company has operations in the United States, United Kingdom, Norway, Thailand and Indonesia, among others. The Troubled Company Reporter - Asia Pacific reported on September 27, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. and Canadian Exploration and Production sector this week, the rating agency confirmed its Ba1 Corporate Family Rating for Hess Corporation. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings to these securities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 7.375% Sr. Unsec. Notes due 2009 Ba1 Ba1 LGD4 55% 7.875% Sr. Unsec. Bonds due 2029 Ba1 Ba1 LGD4 55% 7.3% Sr. Unsec. Notes due 2031 Ba1 Ba1 LGD4 55% 6.65% Sr. Unsec. Notes due 2011 Ba1 Ba1 LGD4 55% 7.125% Sr. Unsec. Bonds due 2033 Ba1 Ba1 LGD4 55% 5.75% Pollution Control Revenue Bonds, Ser 2002 due 2032 Ba1 Ba1 LGD 4 55% 6.05% Pollution Control Revenue Bonds, Ser 2004 due 2034 Ba1 Ba1 LGD4 55% Multiple Seniority Shelf (Senior Unsecured (P)Ba1 (P)Ba1 LGD4 55% Multiple Seniority Shelf (Subordinate) (P)Ba2 (P)Ba2 LGD6 97% Multiple Seniority Shelf (Cumulative Preferred) (P)Ba3 (P)Ba2 LGD6 97% Multiple Seniority Shelf (Non-Cumulative Preferred) (P)Ba3 (P)Ba2 LGD6 97% INDOSAT: To Raise IDR1.5 Trillion by Bond Issue in Second Qtr. -------------------------------------------------------------- PT Indosat Tbk plans to sell IDR1.5 trillion of bonds in the second quarter to fund its expansion plan, Bloomberg News reports, citing Bisnis Indonesia. According to the report, Indosat Director Wong Heang Tuck said that the company has invited investment banks to help it sell the bonds but didn't confirm the amount to be sold. As reported in the Troubled Company Reporter - Asia Pacific on Dec. 4, 2006, Indosat is planning to spend more than US$1 billion mainly on the development of its cellular services in 2007. About 70% to 80% of the investment will go to the development of cellular services, while the rest will be used to develop multimedia, data communication and Internet services, the TCR-AP report quoted Indosat Marketing Director, Wahyu Wijayadi, as saying. 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 inIndonesia. 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 onds 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. MARSH: Declares Quarterly Dividend on Outstanding Common Stock -------------------------------------------------------------- The Board of Directors of Marsh & McLennan Companies, Inc. declared a quarterly dividend of US$.19 per share on outstanding common stock, payable on May 15, 2007 to shareholders of record on April 6, 2007. Marsh & McLennan Companies, Inc. -- http://www.mmc.com/-- is a global professional services firm with annual revenues of approximately US$12 billion. It is the parent company of Marsh, the world's leading risk and insurance services firm; Guy Carpenter, the world's leading risk and reinsurance specialist; Kroll, the world's leading risk consulting company; Mercer, a major global provider of human resource and specialty consulting services; and Putnam Investments, one of the largest investment management companies in the United States. Approximately 55,000 employees provide analysis, advice, and transactional capabilities to clients in over 100 countries, including Indonesia, Australia, China, India, Japan, Korea and Singapore. * * * As reported in the Troubled Company Reporter on Aug. 25, 2006, Standard & Poor's Ratings Services assigned its preliminary 'BBB' senior debt, 'BBB-' subordinated debt, and 'BB+' preferred stock ratings to Marsh & McLennan's unlimited universal shelf. Standard & Poor's also affirmed its 'BBB' counter party credit rating on MMC. The outlook in negative. As reported in the Troubled Company Reporter - Asia Pacific on Sept. 29, 2006, Moody's Investors Service assigned provisional ratings to Marsh & McLennan's new universal shelf registration, including a (P)Ba1 rating on the Company's provisional preferred stock. The rating outlook for MMC remains negative. METSO OYJ: Supplies Handling Equipment to Bateman Africa -------------------------------------------------------- Metso Minerals, a division of Metso Oyj, will supply bulk materials handling equipment to Bateman Africa (Pty) Ltd. for Richards Bay Coal Terminal (RBCT) situated on the east coast of South Africa. The delivery, installation and commissioning will be completed by the first quarter of 2009. The value of the order is around EUR17 million. The order comprises a twin-cell rotary railcar dumper system and a stacker reclaimer. The railcar dumper rotates two railcars at a time and will be capable of unloading trains at the rate of 65 railcars per hour. The stacker reclaimer has a 60-meter boom outreach with an average reclaim rate of 4,500 tons per hour and a stacking rate of 6,000 tons per hour. The order also comprises commissioning and installation services. Metso's supply is part of the overall solution for the expansion of the terminal. Once the expansion is completed, the terminal annual throughput capacity will increase from 72 million tons to 91 million tons. Bateman Africa is the main contractor for engineering, procurement and construction (EPC) for the RBCT phase V expansion project. RBCT is the largest single export coal terminal in the world and it employs around 500 permanent people. 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: Board Wants KPMG as Auditor Replacing Deloitte --------------------------------------------------------------- Deloitte & Touche LLP is the independent public accountant for Nortel Networks Corporation and Nortel Networks Limited its principal operating subsidiary, for the fiscal year 2006. As part of Nortel Networks' evaluation in its corporate renewal process, the company's board of directors proposed that KPMG LLP serve as its principal independent public accountant commencing with fiscal year 2007. KPMG will also be appointed as Limited's auditor if shareholders will approve its appointment at the company's annual and special meeting, scheduled for May 2, 2007. The company said the proposed change in auditor does not result from any disagreement or dissatisfaction between it and Deloitte. Deloitte's audit reports for the company and Limited for their financial statements for the fiscal years ended Dec. 31, 2006, and Dec. 31, 2005, did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. The company's and Limited's management disclosed in Form 10-K that it concluded that a material weakness in internal control over financial reporting existed as of Dec. 31, 2006. Deloitte expressed an unqualified opinion on management's assessment of the effectiveness of internal control over financial reporting and an adverse opinion on the effectiveness of internal control over financial reporting as of Dec. 31, 2006. About Nortel Networks 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. ========= J A P A N ========= ALL NIPPON: Hotels Business Attracts 30 Bidders ----------------------------------------------- All Nippon Airways Co. Ltd.'s hotel portfolio has attracted 30 bidders, drawing the interests of foreign investors keen for Japanese real estate, Market Watch says, citing The Financial Times. The report says that ANA is selling 13 hotels and is expected to pocket US$2.1 billion in proceeds, more than double than what analysts predicted three months ago when the hotels were put up for bid. As reported in the Troubled Company Reporter - Asia Pacific on Dec. 12, 2006, ANA was set to sell 10 of its hotels in Japan in a deal that could total more than JPY100 billion (US$1.1 billion). Market Watch, citing people knowledgeable with the deal, states that ANA has shortlisted 10 bidders, which include Blackstone Group, Goldman Sachs Group Inc., Merrill Lynch & Co. Inc., Lone Star, George Soros, Starwood Capital and Deutsche Bank AG. ANA is advised by Jones Lang LaSalle and Nomura Securities in the sale. About All Nippon Airways Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. The airlines flies to all key Asian destinations, the United States and Canada, France, the United Kingdom and key European countries. The Troubled Company Reporter - Asia Pacific reported on Jun. 13, 2006, that Fitch said the credit quality gap between Japan's top two airlines continues to widen with All Nippon Airways Co. Limited -- rated 'BB+'/Stable -- benefiting from market improvements, while its rival, Japan Airlines Corporation -- rated 'BB-'/Stable -- continues to be grounded by internal woes. The TCR-AP also stated on May 30, 2006, that Moody's Investors Service has upgraded to Ba1 from Ba3 the senior unsecured debt ratings of All Nippon Airways Co., Ltd. The rating action concludes the review initiated on Mar. 3, 2006. The rating outlook is stable. On May 3, 2006, Standard & Poor's Ratings Services revised its outlook on the BB- long-term corporate credit rating on All Nippon Airways to positive from stable, reflecting the company's improved earnings and expectations for stable profitability, thanks to cost reductions efforts as well as a stronger competitive position. ASAHI MUTUAL: JCR Upgrades Senior Debt Rating to BB+/Stable ----------------------------------------------------------- Japan Credit Rating Agency, Ltd., has upgraded the ratings on both Asahi Mutual Life Insurance Company's senior debts and ability to pay insurance claims from BB/Stable to BB+/Stable. Asahi Mutual Life's efficiency measured by persistency rate of the policies and retention rate of sales persons has been increasing steadily. Its mortality and morbidity gains have begun to rise and the core capital has been increasing steadily. Accordingly, JCR upgraded the rating for Asahi Mutual Life by one notch. However, its profitability is low due to the heavy burden for negative spread. Capital amount also remains poor. JCR will follow the future developments as to whether Asahi Mutual Life can expand the earnings and capital amount as well significantly through accumulation of retained earnings. About Asahi Mutual Headquartered in Tokyo, Japan, Asahi Mutual Life Insurance Company -- http://www.asahi-life.co.jp/-- is a Japanese life insurance Company that focuses on individual life insurance. The Group also sells non-insurance products provided by its partners and provides investment trust products. DAIEI INC: To Invite Yoshiharu Kawato To Be New Chairman -------------------------------------------------------- Daiei Inc. will invite Yoshiharu Kawato from the Aeon supermarket chain to be its new chairman, The Japan Times reports. The move, according to The Times, is part of the business and capital alliance between the two retailers. The report says that Mr. Kawato, currently a board member at Aeon Co. and president of affiliated company Aeon Mall will initially join Daiei as an adviser in April and will then replace Fumiko Hayashi as Daiei chairman after a vote at Daiei's general shareholders' meeting in May. Mr. Hayashi will become vice chairman and will no longer have the right to represent the company. The Times states that Daiei will also ask Aeon Managing Director Akinori Yamashita to become its adviser in April. Mr. Yamashita's position, which also needs to be approved by Daiei's shareholders, has yet to be decided. According to The Times, Toru Nishimi -- sent by Marubeni Corp. to Daiei last year -- will remain as president and will be the only executive with the right to represent Daiei. "The new management will put our collaboration into shape and by learning Aeon's business expertise from (Kawato and Yamashita), we will speed up Daiei's rehabilitation, with the support of Aeon and Marubeni Corp.," the report quotes Mr. Nishimi. The Troubled Company Reporter - Asia Pacific reported on Mar. 13, 2007, that Aeon will acquire a 15% stake in Daiei for JPY46.2 billion in an alliance that would create Japan's biggest retail group. The report said that pursuant to the deal, Aeon is buying the shares from Daiei's primary shareholder, Marubeni Corp., which owns 44.6% of the supermarket chain. About Aeon Headquartered in Chiba, Japan, Aeon Company Ltd. -- http://www.aeon.info/-- is a retailing group of over a hundred member companies in Japan and overseas whose business model is based on shopping center operation. Aeon had 1,159 stores and about 150 discounters nationwide as of Aug. 20, 2006. Sales at Aeon accounted for about 3.4% of the Japanese retail market, or JPY4.43 trillion, in the year ended Feb. 20, 2006. About Daiei Headquartered in Kobe, Japan, Daiei Incorporated -- http://www.daiei.co.jp/-- operates about 3,000 stores through its subsidiaries and franchisees. Its retail businesses include supermarkets, discount stores, department stores, and specialty shops. Other businesses include restaurants, hotels, and real estate services. Domestic sales make up more than 90% of its revenues. Daiei diversified haphazardly during the 1980s loading up on debt and failing to keep up with new, more efficient competitors. Daiei, with the support of the Industrial Rehabilitation Corporation of Japan, has decided to close 54 stores nationwide, including subsidiaries, as part of its new business reconstruction plan. Daiei has been rehabilitated under the auspices of the Industrial Revitalization Corp. of Japan after accumulating huge debts during the bubble economy of the late 1980s. With the IRCJ's help since late 2004, Daiei's finances have started to show a recovery as it has shut down unprofitable stores and sold subsidiaries. As reported in the Troubled Company Reporter - Asia Pacific on Aug. 18, 2006, Marubeni Corporation assumed the leading role in Daiei's turnaround efforts by acquiring the entire 33.67% stake held by the IRCJ in Daiei. Marubeni now holds a 44.6% stake in the company. A subsequent TCR-AP report on Sept. 1, 2006, stated that Marubeni is keen on selling part of its 44.6% holding in Daiei. However, in order for prospect buyers to accept Marubeni's proposal, Daiei's liabilities must be trimmed to an acceptable level. Daiei, as a result, cut its group interest-bearing liabilities to about JPY400 billion as of the end of February 2006 from more than JPY1 trillion a year earlier. According to The Japan Times, Aeon Company, the nation's biggest supermarket chain, was picked in 2006 to set up a business alliance to rehabilitate Daiei. HYAKUJUSHI BANK: Completes Share Repurchase ------------------------------------------ The Hyakujushi Bank, Ltd., has repurchased 2,150,000 shares of its common stock during the period from November 24, 2006, to March 16, 2007, Reuters Key Developments says. The total value of the shares repurchased is JPY1,582,400,000, the report adds. About The Hyakujushi Bank Headquartered in Kagawa Prefecture, Japan, The Hyakujushi Bank, Ltd. -- http://www.114bank.co.jp/-- is a regional bank based in the Shikoku area. The bank operates in three business segments. The banking segment is engaged in the provision of deposit accounts services, government bonds services, loan services, investment trust services, foreign exchange services, telephone banking services, Internet banking services, capital transfer confirmation services, international banking services and other banking services. The leasing segment is engaged in the provision of leasing services. The others segment is involved in the provision of credit card services and other financial services. The Troubled Company Reporter - Asia Pacific reported on Mar. 21, 2007, that Fitch Ratings upgraded Hyakujushi Bank's individual rating to C from C/D. HYAKUJUSHI BANK: Posts JPY13-Bil. Income for 9 Months to Dec. 31 ---------------------------------------------------------------- The Hyakujushi Bank, Ltd., recorded a JPY13.21-billion net income for the nine months ending Dec. 31, 2006, a decrease of 13.15% from the JPY15.21-billion net income the company reported for the nine months ending Dec. 31, 2005, data obtained from Bloomberg News shows. For the period in review, the company reported a JPY37.17-billion net interest income, and operating profit of JPY14.38 billion. The company's financials include these data (in JPY, billions): Nine Months Ending 12/31/2005 12/31/2006 Change ---------- ---------- ------ Interest & Investment Income 41.22 42.51 3.11% Interest Expense 3.87 5.34 37.82% Net Interest Income 37.35 37.17 -0.49% Operating profit 15.02 14.38 -4.25% Profit before Extraordinary Items 15.60 13.87 -11.12% Net Profit 15.21 13.21 -13.15% About The Hyakujushi Bank Headquartered in Kagawa Prefecture, Japan, The Hyakujushi Bank, Ltd. -- http://www.114bank.co.jp/-- is a regional bank based in the Shikoku area. The bank operates in three business segments. The banking segment is engaged in the provision of deposit accounts services, government bonds services, loan services, investment trust services, foreign exchange services, telephone banking services, Internet banking services, capital transfer confirmation services, international banking services and other banking services. The leasing segment is engaged in the provision of leasing services. The others segment is involved in the provision of credit card services and other financial services. The Troubled Company Reporter - Asia Pacific reported on Mar. 21, 2007, that Fitch Ratings upgraded Hyakujushi Bank's individual rating to C from C/D. HITACHI ZOSEN: Court Imposes US$83MM In Damages for Bid Rigging --------------------------------------------------------------- Hitachi Zosen Corp., along with Mitsubishi Heavy Industries Ltd. of Tokyo and Takuma Co. of Amagasaki, had been ordered by a Tokyo court to pay US$83 million in damages for rigging bids on four publicly financed Tokyo incineration projects, United Press International says. According to the report, District Judge Toshihiko Tsuruoka, ruling for the three-judge panel, said that the three construction companies rigged bids from 1994 to 1998. UPI, citing Kyodo News, states that an ombudsman group had demanded the firms to pay US$262 million to the city and the sanitation union for wasting taxpayers' money. The report says that the Fair Trade Commission ordered the three companies and two others to stop bid rigging in June 2006 but the companies sued the following month seeking to have the FTC order overturned. About Hitachi Zosen Headquartered in Osaka, Japan, Hitachi Zosen Corporation -- http://www.hitachizosen.co.jp-- develops, manufactures, sells and maintains machinery and systems. The company has five business segments. The Environment and Plant segment offers refuse incineration plants, industrial waste treatment plants, biomass energy systems, water and sludge treatment plants and others. The Ship and Sea segment is involved in the building, improvement and repair of ships, and the creation of ocean structures. The Steel, Construction and Logistics segment offers bridges, hydraulic gates, steel chimneys, water pressure pipes, offshore engineering, disaster prevention systems, and others. The Machinery and Motors segment includes steel-making machinery, food machines, medical equipment, power generators and internal combustion engines. The Others segment is involved in electronic and control systems, package software, information systems and other businesses. As reported in the Troubled Company Reporter - Asia Pacific on Aug. 31, 2006, Rating and Investment Inc. affirmed the BB- issuer rating of Hitachi Zosen Corporation with a negative outlook. JAPAN AIRLINES: Labor Unions Calls Off Planned 24-Hour Walk-Out --------------------------------------------------------------- Japan Airlines Co. labor unions called off a planned 24-hour strike after reaching a compromise with the airline's management over pay and other labor conditions, The Japan Times says, citing airline officials. The report recounts that four unions, including the JAL Flight Crew Union -- comprising 1,154 pilots -- and the JAL Cabin Crew Union -- comprising 1,828 workers -- had threatened to walk out for the entire day on Tuesday. Bloomberg News states that the strike was a reaction to JAL's decision not to raise the base pay for its workers. The planned strike would have paralyzed about 26% of JAL's domestic flights. The Troubled Company Reporter - Asia Pacific reported on Feb. 9, 2007, that JAL would cut 4,300 employees from its payrolls by March 2010, the end of its 2009 fiscal year, from its 53,100-strong work force. The report said that this comes on top of the ongoing elimination of 6,000 ground jobs for the period through March 2008, announced several years ago. 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 Oct. 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. JAPAN AIRLINES: Sells 3 Hotels To Lone Star for JPY15 Billion ------------------------------------------------------------- Japan Airlines Corp. sold three hotels -- Hotel Nikko Naha Grandcastle, Hotel Nikko Yaeyama and JAL Private Resort Okuma -- in Okinawa for at least JPY15 billion (US$128 million) to Lone Star Funds, Bloomberg News reports, citing people knowledgeable about the sale. The report says that the advice to sell the properties came from Mizuho Securities Co., but Mizuho's spokesman Keita Onuki declined to comment. Lone Star's executives, who refused to be identified, also did not comment on the matter. "JAL is selling everything it can in order to return to profit. It's the right strategy," Bloomberg quotes Mana Nakazora, chief credit analyst at JPMorgan Securities Japan Co. According to Bloomberg, JAL aims to trim its liabilities to 30%, or JPY1 trillion, over four years to regain a positive investment-grade credit rating. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 5, 2007, Japan Airlines plans to sell its stakes in seven hotels for more than JPY70 billion (US$580 million) in order to focus on its core airline business. About Lone Star Funds Headquartered in Dallas, Lone Star Funds -- http://www.lonestarfunds.com/En-- are closed-end, private- equity limited partnerships that include corporate and public pension funds, university endowments, foundations, bank holding companies, family trusts and insurance companies. Since 1995, the principals of Lone Star have organized private equity funds totaling more than US$13.3 billion to invest globally in secured and corporate unsecured debt instruments, real estate related assets and select corporate opportunities. Lone Star has affiliate offices in London, Tokyo, Seoul, Taipei, Dallas, Dublin, Brussels, Luxembourg, and Frankfurt. Its general partner is a Bermuda-based entity headquartered in Hamilton. 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 Oct. 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. MACDERMID INC: Moody's Affirms B2 Rating and Revises LGD Rates -------------------------------------------------------------- Moody's Investors Service affirmed MacDermid, Incorporated's B2 corporate family rating and revised the loss given default assessments and LGD rates on MacDermid's proposed debt to reflect a revision to the company's proposed debt financings. Proceeds from the new debt offerings combined with private equity investments from funds managed by Court Square Capital Partners and Weston Presidio, along with an investment from MacDermid's CEO, Daniel Leever, and management will be used to purchase all of MacDermid's outstanding stock in a transaction valued at approximately US$1.3 billion. The ratings outlook remains stable. The revisions to the proposed debt financing structure include: * elimination of the US$250 million guaranteed senior unsecured notes due 2014-2015 (ratings withdrawn), * a US$100 million increase in the term loan principal amount to the US dollar equivalent of US$610 million (the term loan will now have both a US$360mm tranche and a Euro tranche) and * a US$135 million increase in the senior subordinated notes due 2017 to US$350 million. In addition to these changes, the company will have US$15 million in Japanese senior secured bank debt. The revisions to the debt structure have not impacted the issue ratings, but do impact the LGD assessments and LGD rates. The following summarizes the ratings activity: MacDermid, Incorporated Ratings affirmed: * Corporate family rating -- B2 * Probability of default rating -- B2 * US$50 million Gtd sr sec revolving credit facility due 2013 - B1, LGD3, 34% * US$360 million Gtd sr sec term loan due 2014 -- B1, LGD3, 34% * Euro Gtd sr sec term loan due 2014 -- B1, LGD3, 34% * US$350 million Gtd sr subordinated notes due 2017 -- Caa1, LGD5, 87% Ratings withdrawn: * US$250 million Gtd sr unsec notes due 2014-2015 -- WR MacDermid's B2 corporate family rating reflects the company's high leverage, elevated interest expense and limited growth opportunities in certain businesses. The company has grown top line sales over the past three years, however earnings have not kept pace. While the overall EBITDA for the company has been relatively stable over the past three years, certain of the company's businesses (primarily in the Advanced Surface Finishing segment) have grown sales and profits, and other businesses (primarily in the Printing Solutions segment) have turned in lackluster returns. Moody's expect that MacDermid should be better positioned to grow after the introduction of certain new products and the integration of the 2005 Autotype acquisition. The notes will be privately placed and the company does not plan to register the notes at a later time. As a result, the company does not anticipate that it will file public financial statements, but will provide more abbreviated disclosure to debtholders. The ratings are supported by MacDermid's relatively stable EBITDA margins that have remained positive despite some adverse market conditions over the past seven years, geographic, operation and product diversity, strong market positions in certain niche markets, modest capital expenditure requirements and limited exposure to volatile raw materials costs. The stable outlook reflects Moody's expectation that MacDermid will be able to grow its sales and apply positive free cash flow to debt reduction. The outlook also assumes that MacDermid will smoothly transition to a private ownership structure and be capable of shouldering the significant new debt burden. Before an upgrade could be considered, Moody's would expect to see MacDermid demonstrate the ability to generate EBITDA greater than US$160 million per year and maintain a Debt/EBITDA ratio less than 7.0 times on a sustained basis as well as generate meaningful free cash flow. Should the company not be successful in improving profitability and generating meaningful free cash flow to be applied towards debt reduction, the ratings could come under negative pressure. About MacDermid Inc. MacDermid Inc. -- http://www.macdermid.com/-- is manufacturer of a broad line of chemicals and related equipment for a range of applications, including metal and plastic finishing, electronics, graphic arts and printing, and offshore drilling. The company maintains its headquarters in Denver, Colorado, but operates facilities worldwide, including China, Germany, Italy, and Japan. Revenues for the twelve months ended June 30, 2006, were US$797 million. MACDERMID INC: Amendments Cues S&P to Hold B+ Rating on Debt ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its bank loan and recovery ratings on MacDermid Inc.'s proposed senior secured credit facilities, following the report that the company will increase the term loan principal amount to the U.S. dollar equivalent of US$610 million. The proposed term loan will now have both a US$360 million tranche and a EUR250 million tranche. The secured loan rating is 'B+' and the recovery rating is a '1', indicating the expectation for full recovery of principal in the event of a payment default. Other changes to the debt financing structure include the cancellation of the US$250 million senior unsecured notes due in 2014, a US$135 million increase in the senior subordinated notes due in 2017 to US$350 million, and the addition of US$15 million in Japanese senior secured bank debt due in 2014. Proceeds from the new bank credit facilities and the senior subordinated notes will be used to finance the acquisition of MacDermid in a transaction valued at about US$1.3 billion. Upon successful completion of the acquisition and proposed financing, Standard & Poor's will resolve the CreditWatch listing. Standard & Poor's also expects to withdraw all of the ratings on the existing debt instruments upon closing of the proposed refinancing. Ratings List: * MacDermid Inc. -- Corporate credit rating, BB+/Watch Neg/ -- Senior secured credit facilities, B+, Recovery rating: About MacDermid Inc. MacDermid Inc. -- http://www.macdermid.com/-- is manufacturer of a broad line of chemicals and related equipment for a range of applications, including metal and plastic finishing, electronics, graphic arts and printing, and offshore drilling. The company maintains its headquarters in Denver, Colorado, but operates facilities worldwide, including China, Germany, Italy, and Japan. Revenues for the twelve months ended June 30, 2006, were US$797 million. MAZDA MOTOR: Changes Overseas Production Statistics --------------------------------------------------- Mazda Motor Corporation has made changes to the way it records overseas production figures in its monthly production and sales results, effective January 2007. In the future, Mazda said that its overseas production figures will reflect the number of Mazda brand vehicles that come off the production line at overseas production facilities except for complete knock down vehicles and vehicles produced by other original equipment manufacturers. Since November 1998, Mazda's overseas production figures have included an estimation of parts and component shipments for Mazda brand models that have been assembled at overseas production facilities. Under the new statistical reporting system, Mazda brand vehicles produced with 100% locally procured parts -- which previously could not be counted -- will also be included in the overseas production total. These changes will enable a more accurate disclosure of Mazda's production statistics. Headquartered in Hiroshima Prefecture, Mazda Motor Corporation -- http://www.mazda.co.jp/-- together with its subsidiaries and associates, is primarily involved in the manufacture and distribution of automobiles. The company manufactures passenger cars and commercial vehicles. Mazda Motor distributes its products in both domestic and overseas markets. The company has 58 subsidiaries. It has overseas operations in the United States, Canada, Mexico, Germany, Belgium, France, the United Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand, Indonesia and China. The Company has a global network. Standard and Poor's Ratings Service gave Mazda Motor's long-term local and foreign issuer a BB- rating. MITSUBISHI UFJ: To Act As Intermediary for University Patents ------------------------------------------------------------- Mitsubishi UFJ Trust and Banking Corp gained the rights to manage The University of Yamanashi's patents and license them to companies, The Asahi Shimbun reports. According to The Shimbun, the university is the first to put its patents under trust after the Trust Business Law was revised in 2004 to cover patents and other intellectual property rights as trust properties. The report adds that Mitsubishi UFJ Trust and Banking will act as a middle-man to find companies interested in developing commercial applications of the university's technologies. The bank will receive royalties on the patents from the companies and pay part of the license fees to the university in the form of dividends. The Shimbun explains that when a patent such as technology to oxidize carbon monoxide contained in a gaseous fuel has been entrusted, chemical makers are expected to use the patent through the intermediation of the trust bank. The report states that The University of Yamanashi is famous for its fuel cell research, currently with 50 related patents. At Japanese universities, many patented technologies developed by science and engineering departments have never been applied because these universities, on their own, cannot find companies to develop products based on the patents, the report notes. The Shimbun states that former state-run universities, such as the University of Yamanashi, are under pressure to raise funds by themselves now that they are incorporated as independent administrative agencies. About Mitsubishi UFJ Trust and Banking Corp Mitsubishi UFJ Trust and Banking Corp. -- http://www.tr.mufg.jp/english/-- is one of Japan's leading asset-management companies with JPY28 trillion in managed assets, Mitsubishi UFJ Trust and Banking meets the needs of international investors with a variety of creative investment products. Fitch Ratings upgraded Mitsubishi UFJ Trust and Banking's individual rating to C from C/D on Jan. 1, 2006. MIYAZAKI BANK: To Sell 450,000 Shares Through Private Offering -------------------------------------------------------------- The Miyazaki Bank, Ltd., will sell 450,000 shares of its common stock at a price of JPY506.20 per share through a third-party placement, Reuters Key Developments reports. Reuters adds that the aggregate value of shares sold will be JPY227,790,000. The proceeds from the transaction will be used for its operating capital. About Miyazaki Bank Based in Miyazaki Prefecture, Japan, the Miyazaki Bank, Ltd. -- http://www.miyagin.co.jp/-- is a regional financial institution that has three business segments. The banking segment is engaged in the provision of financial services such as deposits and loans, as well as domestic and foreign currency exchange services. The leasing segment is involved in the general leasing business. The others segment is engaged in the investment business, the management consulting business, the credit guarantee business and the credit card business. The Troubled Company Reporter - Asia Pacific reported on Mar. 21, 2007, that Fitch Ratings upgraded Miyazaki Bank's individual rating to C from C/D. MIYAZAKI BANK: Posts JPY3.86-Bil. Income For 9 Months to Dec. 31 ---------------------------------------------------------------- The Miyazaki Bank, Ltd., recorded a net profit of JPY3.86 billion for the nine months ending Dec. 31, 2006, a 55.74% increase from the JPY2.48-billion net income the company recorded for the nine months ending Dec. 31, 2005, the company's financials, obtained from Bloomberg News, show. For the period in review, the bank posted a net interest income of JPY20.67 billion and operating profit of JPY6.71 billion. The company's financials include these data (in JPY, billions): Nine Months Ending 12/31/2005 12/31/2006 Change ---------- ---------- ------ Interest & Investment Income 22.41 22.87 2.04% Interest Expense 1.36 2.20 62.54% Net Interest Income 21.06 20.67 -1.86% Operating profit 5.47 6.71 22.70% Profit before Extraordinary Items 2.81 4.46 58.74% Net Profit 2.48 3.86 55.74% About Miyazaki Bank Based in Miyazaki Prefecture, Japan, The Miyazaki Bank, Ltd. -- http://www.miyagin.co.jp/-- is a regional financial institution that has three business segments. The banking segment is engaged in the provision of financial services such as deposits and loans, as well as domestic and foreign currency exchange services. The leasing segment is involved in the general leasing business. The others segment is engaged in the investment business, the management consulting business, the credit guarantee business and the credit card business. The Troubled Company Reporter - Asia Pacific reported on Mar. 21, 2007, that Fitch Ratings upgraded Miyazaki Bank's individual rating to C from C/D. MIZUHO FINANCIAL: Fitch Affirms Ratings of 3 Operating Banks ------------------------------------------------------------ Fitch Ratings has affirmed the ratings of the three operating banks of the Mizuho Financial Group and MHFG. The rating Outlook for all four institutions is Positive. Mizuho Corporate Bank: * Long-term foreign and local currency Issuer Default rating -- 'A'; * Short-term foreign and local currency IDR -- 'F1'; * Individual 'B/C'; * Support '1'; * Support rating floor 'A-'; Mizuho Bank: * Long-term foreign and local currency IDR -- 'A'; * Short-term foreign and local currency IDR -- 'F1'; * Individual 'B/C'; * Support '1'; * Support rating floor -- 'A-'; Mizuho Trust Bank: * Long-term foreign and local currency IDR -- 'A'; * Short-term foreign and local currency IDR -- 'F1'; * Individual 'B/C'; * Support '1'; * Support rating floor -- 'A-'; and Mizuho Financial Group: * Long-term foreign and local currency IDR -- 'A'; * Short-term foreign and local currency IDR -- 'F1'; * Individual 'B/C'; and * Support '1'; Support rating floor -- 'A-'. The rating actions follow an announcement by Mizuho Financial Group that it has revised its consolidated net income forecast downwards for the fiscal year to March 2007 to JPY540 billion from JPY720 billion. At the pre-tax, pre-special item profit level, the expected decline in earnings is greater at JPY460 billion. The group has not disclosed further detail but Fitch Ratings deduces that most of the downward revision in its profit forecast relates to a non bank finance company, Orient Corporation, which, like its peers, has been badly hit by, among others events, the change in the Money Lending Business Law. Fitch estimates the group's profitability in terms of ROE will drop to 9% from an estimated 12%. About Mizuho Financial Group 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. and 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. The Troubled Company Reporter - Asia Pacific reported on Nov. 28, 2005, that Moody's Investors Service upgraded to D+ from D- the bank financial strength ratings of the banks in the Mizuho Financial Group -- Mizuho Bank, Ltd.; Mizuho Corporate Bank, Ltd.; and Mizuho Trust & Banking Co., Ltd. On Feb. 8, 2006, Fitch Ratings assigned a C to Mizuho Financial's individual rating. MIZUHO FINANCIAL: Trims Profit Forecast by 25% Over Bad Loans ------------------------------------------------------------- Mizuho Financial Group Inc. slashed its profit forecast by 25% as bad-loan costs jumped and earnings from share trading worsened, Bloomberg News says. According to the report, Mizuho Financial says that its net income will decline to JPY540 billion (US$4.6 billion) for the year ending March 31, from JPY650 billion a year earlier. Mizuho, which reported high earnings annually since its THB2.38 trillion loss in 2003, predicts profits of JPY720 billion in May. The report says that banks including larger Mitsubishi UFJ Financial Group Inc. have struggled to boost revenue as low interest rates among developed economies and competition in the corporate lending market prevented an improvement in loan margins. Bloomberg, citing Mizuho spokesman Takanori Nishiyama, says that the bank incurred losses at a "major" borrower. The report recounts that Mizuho said it may increase its 6% stake in Orient Corp. -- a credit card company that's asking owners to accept equity in lieu of debt and provide it with a capital increase of about JPY150 billion -- last month. The report says that analysts at Nomura Holdings Inc. believe that Mizuho Financial may have to set aside more money against future bad loans, after it has lent more than JPY300 billion to Orient. Bloomberg says that Mizuho Financial will back Citigroup's US$13.4 billion takeover offer for Nikko Cordial Corp. The bank's 4.8% stake in Nikko Cordial is worth about JPY80 billion at JPY1,700-per-share offer price. The Troubled Company Reporter - Asia Pacific reported on Mar. 19, 2007, that the sale of Mizuho's 4.8% shares in Nikko Cordial will raise the possibility of a successful takeover by Citigroup, which aims to acquire at least 50% of the brokerage firm. The TCR-AP stated that Mizuho Financial did not disclose a specific price. The report also said that the company did not give details on the amount of Nikko Cordial shares it plans to sell to Citigroup. About Mizuho Financial 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. and 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. The Troubled Company Reporter - Asia Pacific reported on Nov. 28, 2005, that Moody's Investors Service upgraded to D+ from D- the bank financial strength ratings of the banks in the Mizuho Financial Group -- Mizuho Bank, Ltd.; Mizuho Corporate Bank, Ltd.; and Mizuho Trust & Banking Co., Ltd. Additionally, on Feb. 8, 2006, Fitch Ratings assigned a C to Mizuho Financial's individual rating. SHIMIZU BANK: Leaner Operating Expenses Lead to Turn Around ----------------------------------------------------------- The Shimizu Bank, Ltd., posted a net profit of JPY2.43 billion for the nine months ending Dec. 31, 2006, a turn around from the JPY5.80-billion net loss it posted for the nine months ending Dec. 31, 2005, the company's financials show. Net interest income was almost flat at JPY14.41 billion for the nine months ending Dec. 31, 2006. Operating expenses, however, fell 42.73% to JPY14.27 billion for the nine months ending Dec. 31, 2006, from JPY24.92 billion a year earlier. The company's financials include these data (in JPY, billions): Nine Months Ending 12/31/2005 12/31/2006 Change ---------- ---------- ------ Interest & Investment Income 15.26 16.86 10.49% Interest Expense 1.03 2.46 138.12% Net Interest Income 14.23 14.41 1.24% Operating expenses 24.92 14.27 -42.73% Operating profit -6.07 3.98 n/a Profit before Extraordinary Items -5.63 2.56 n/a Net Profit -5.80 2.43 n/a About The Shimizu Bank Headquartered in Shizuoka Prefecture, Japan, The Shimizu Bank, Ltd. -- http://www.shimizubank.co.jp/-- is a regional bank mainly engaged in the banking services. The banking segment is engaged in the provision of general banking services, including deposit services, loan services, foreign exchange services, securities trading services, securities investment services, corporation bond trust and registration services, Internet banking services, mobile banking services, telephone banking services and other banking services. The leasing segment is engaged in the provision of leasing services. The Troubled Company Reporter - Asia Pacific reported that, on Mar. 19, 2007, Fitch affirmed the bank's individual rating and support rating at C/D and 4, respectively. TENNECO INC: Fitch Rates New US$831 Mln Senior Facility at BB+ -------------------------------------------------------------- Fitch Ratings has assigned a rating of 'BB+' to Tenneco Inc.'s new senior secured bank facility. The new facility replaces TEN's existing bank facility. As such, there is no impact to Fitch's current ratings of the existing debt or Rating Outlook, which are: -- Issuer Default Rating 'BB-'; -- Senior secured bank facility 'BB+'; -- Senior secured second lien notes 'BB'; and -- Senior subordinated notes 'B'. The Rating Outlook is Positive. Including the existing undrawn revolver, Fitch's ratings affect approximately US$1.8 billion in total debt. TEN's new US$830-million senior credit facility replaces its existing US$831-million facility and enhances the company's financial flexibility by extending the revolver and the term loan maturities as well as loosening and removing certain covenants. The new bank facility includes a: * five-year revolving line of credit of approximately US$550-million; * five-year term loan A facility of approximately US$150-million; and * seven-year synthetic letter of credit facility of approximately US$130-million. The synthetic facility can also be used as a revolver for working capital and other cash requirements. TEN will use the new facility to retire approximately US$356-million in term loans due December 2010 and to replace its existing US$320- million revolver expiring December 2008 as well as its US$155- million synthetic letter of credit facility expiring December 2010. Applicable margins on the new facility generally range between 50 - 125 basis points lower than the existing facility. The new bank facility is the obligation of Tenneco, Inc. and guaranteed by certain domestic subsidiaries. Collateral includes substantially all of the domestic assets and 65% of the stock of the first-tier foreign subsidiaries. Terms include maximum consolidated net leverage and minimum interest coverage ratios but no minimum fixed charge coverage ratio and no capital expenditure covenant as in the last facility. The new facility also contains baskets allowing the company to incur certain additional indebtedness and liens subject to certain restrictions. Permitted additional indebtedness includes an amendment to allow the borrower to give unsecured guarantees for the obligations of its subsidiaries. Baskets of permitted indebtedness include; US$150 million for general indebtedness, general guarantees up to US$100 million, US$125 million related to indebtedness for capital leases and foreign subsidiaries indebtedness up to US$150 million but can be US$200 million if the proceeds are used to repay the second lien notes. Permitted liens include the following baskets; up to US$125 million on capital leases, a general basket of up to US$100 million, certain receivables financing up to US$250 million, and certain liens of foreign subsidiaries up to US$150 million but can be US$200 million if the proceeds are used to repay the second lien notes. Other covenants include change-in-control, restricted payments, investment limitations, sale of assets restrictions and a sale/leaseback covenant. Fitch's ratings are based on TEN's track record of strong operating discipline and working capital management, consistent cash flow generation and subsequent capital structure improvement, as well as continued expansion and customer diversification across its business segments. Fitch expects TEN to be free cash flow positive in 2007. Throughout 2006, TEN faced the same headwinds as other suppliers, including higher steel prices, lower and unsteady customer production volumes, exposure to the slowdown in SUV demand, and tightening trade credit. However, TEN was able to offset these challenges with increased revenue from new business launched, gains in manufacturing efficiency, close attention to working capital requirements, and a geographically diverse customer base compared with other North American suppliers. Going forward, TEN is expected to benefit from its technology position and entry into new growth markets. Given TEN's track record, Fitch expects that TEN's backlog was booked within solid cost/pricing parameters, translating into improved earnings growth. TEN is expected to benefit from tighter air quality standards and from the demand for safety-related products. TEN has several light-vehicle and commercial diesel exhaust programs booked for 2007 in both the U.S. and Europe. TEN has also introduced an electronically adjustable ride control product which improves vehicle stability - an added safety feature for consumers. Concerns include total debt levels, margin pressures from price competition and raw materials, customers' production volumes, potential labor stoppage due to customers' critical union negotiations and a financially stressed base of automotive suppliers other than TEN. Including the cash and marketable securities balance of US$202 million, total liquidity at the end of 4Q06 was approximately US$658 million. At year-end, TEN had US$320 million of availability under its revolver and approximately US$121 million after US$34 million in outstanding LOCs under its synthetic facility. The company also has a US securitization facility of approximately US$100 million of which US$15 million was available at year-end. In addition, the company had US$48 million outstanding under its uncommitted European receivable facilities, the availability of which Fitch does not include in liquidity since the facilities are cancelable at any time. As of Dec. 31, total adjusted debt-to-EBITDA was reduced to 3.3 times (x) from 3.5x in 2005. About Tenneco Inc. Headquartered in Lake Forest, Illinois, Tenneco Inc. -- http://www.tenneco.com/-- is a leading manufacturer of automotive ride control and emissions control products and systems for both the worldwide original equipment market and aftermarket. Leading brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, among others. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Automotive and Equipment sectors, the rating agency confirmed its B1 Corporate Family Rating for Tenneco Inc. US AIRWAYS: Fitch Upgrades Senior Unsecured Rating to CCC/RR6 ------------------------------------------------------------- Fitch Ratings has upgraded its senior unsecured rating on US Airways Group, Inc, to 'CCC/RR6' from 'CC/RR6'. Fitch also raised its issuer default rating on the firm to 'B-' from 'CCC', and secured term loan rating to 'BB-/RR1' from 'B/RR1'. Fitch's ratings apply to approximately US$1.9 billion in outstanding debt. In addition, Fitch has assigned a rating of 'BB-/RR1' to US Airways' new US$1.6 billion secured term loan facility that is currently in syndication. The Rating Outlook is Positive. The upgrade in US Airways' ratings reflects the substantial improvement in the airline's credit profile that has occurred since the carrier exited Chapter 11 protection and merged with America West Holdings Corp. in September 2005. In addition, with the withdrawal of its acquisition offer for Delta Air Lines, Inc. in late January, US Airways can focus on the few remaining tasks necessary to complete the full integration of the US Airways, Inc. and America West Airlines, Inc. operating units. Fitch does not expect US Airways to seek another acquisition in the near term. Over the past year, US Airways has posted relatively strong financial results, which have translated into credit metrics that place it among the better-performing hub-and-spoke airlines. Lease-adjusted leverage of 6x and EBITDA interest coverage of 3x are the strongest of the four solvent legacy carriers, while its 2006 EBITDAR margin of 7.8% is second only to AMR Corp. Unrestricted cash and equivalents, at 20% of 2006 revenue, has increased by 500 basis points over the past year and is in the same range as AMR, UAL Corp. and Continental Airlines, Inc. US Airways' financial performance relative to its peers has been driven primarily by cost savings that resulted from its Chapter 11 reorganization combined with revenue and expense synergies that have been realized through the merger with America West. The new term loan, which will mature in 2014, is backed by: -- hard assets: * aircraft, * spare parts, and * ground service equipment; -- soft assets, including: * route authorities, * slots, and * gates; -- US$750 million in cash held in control accounts; and -- certain accounts receivable assets. The 'BB-/RR1' rating on US Airways reflects the loan's substantial collateral coverage and very strong recovery prospects in a default scenario. Proceeds from the term loan will be primarily used to refinance US Airways' existing US$1.25 billion term loan facility, as well as pre-pay other outstanding secured and unsecured debt. In addition to more favorable pricing, the refinancing moves the company's significant debt maturities three years further into the future, which will improve liquidity through 2013 and provide the airline with increased financial flexibility over a longer time horizon. The refinancing also removes several aircraft from collateral pools that are currently securing some of the existing debt. Releasing the aircraft increases US Airways' unencumbered asset base, which could serve as collateral to secure future financings in the event of another industry downturn. US Airways' strengthened liquidity position and a lack of significant debt maturities over the next several years have significantly reduced the probability of a near-term cash crisis. Furthermore, unlike AMR, Continental, Delta and Northwest Airlines Corp., US Airways has no significant defined benefit or DB pension plans in place. Although the Pension Protection Act has significantly reduced cash funding requirements for those airlines that maintain DB plans, US Airways' lack of DB plans could provide the carrier with a competitive advantage over the longer term, particularly in the next industry down cycle. Looking ahead, industry demand fundamentals are expected to remain fairly strong during 2007, while domestic capacity growth will continue to be limited. The pace of yield growth will likely slow, however, as year-over-year comparables become more difficult. Operating expenses will still be significantly affected by the price of jet fuel, although US Airways, along with most US carriers, has taken advantage of dips in oil prices by increasing its fuel hedging position. As of Jan. 30, US Airways had 43% of its estimated full-year fuel needs hedged using costless collars, with a jet fuel equivalent put price of US$1.97 and a call price of US$2.17. Operating expenses could see some pressure from increased wages, as the airline continues to seek integrated labor agreements with its pilots, flight attendants, mechanics and fleet service workers. The airline has stressed, however, that the status of its labor agreements is immaterial to its ability to combine the operations of US Airways, Inc. and America West Airlines under a single Federal Aviation Administration operating certificate, and it still plans to complete the full operational integration of the two airlines by mid-2007. About US Airways Headquartered in Arlington, Virginia, US Airways' primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. Under a chapter 11 plan declared effective on Mar. 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. * * * As reported in the Troubled Company Reporter on Jan. 11, 2007, Standard & Poor's Ratings Services stated that its ratings on US Airways Group, including the 'B-' corporate credit ratings on US Airways Group and its major operating subsidiaries America West Holdings Corp., America West Airlines Inc., and US Airways Inc., remain on CreditWatch with developing implications, where they were initially placed on Nov. 15, 2006. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Ends Legal Feud w/ Toshiba & Inks Accord ------------------------------------------------------------- On March 20, 2007, Hynix Semiconductor Inc. and Toshiba Corp. have signed agreements to share semiconductor patents and products ending their legal dispute over NAND flash memory chips, BusinessWeek reports, citing The Associated Press. "The agreements settle all pending patent-related litigation between the companies in the U.S. and Japan, including that before the U.S. International Trade Commission," BusinessWeek cites the companies' joint statement. On Feb. 21, 2007, the Troubled Company Reporter - Asia Pacific cited a report from the International Business Times, stating that Toshiba was seeking a permanent exclusion order and permanent cease and desist orders from the ITC against Hynix. According to the companies, the agreements mean they "will be cross licensed to use one another's semiconductor patents," the report relates, noting that other details were not disclosed. "Certain kinds of products would be shipped to Toshiba" for which the Toshiba will pay market prices, James Kim, head of investor and public relations at Hynix said. He added that Hynix will still pay royalties and other fees to Toshiba for its patents. BusinessWeek relates that Lee Min-hee, a semiconductor industry analyst at Dongbu Securities in Seoul, estimated Hynix's royalty payments to Toshiba last year as amounting to 5% of its NAND sales revenue of US$2.4 billion. AP recounts that in November 2004, Toshiba first sued Hynix in both the United States and Japan, claiming infringement of its intellectual property. The lawsuit was the result of the companies' disagreement on a fee for an extension of a licensing agreement ahead of its expiration in December 2002. According to AP, Hynix denied Toshiba's allegations and countersued, seeking unspecified damages. Hynix claimed that Toshiba was wrongfully asserting the patent and causing Hynix irreparable harm. About Hynix Headquartered in Echon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Standard & Poor's Ratings Services revised to positive from stable the outlooks on its 'B+' long-term corporate credit ratings on Hynix Semiconductor Inc. and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc. At the same time, Standard & Poor's affirmed its long-term corporate credit and senior debt ratings on the company. The TCR-AP reported on July 14, 2005, that Moody's Investors Service has upgraded the rating of the senior secured notes issued by Hynix Semiconductor Manufacturing America Inc. to Ba3 from Caa2. The rating action follows Moody's decision to affirm the Ba3 corporate family rating (previously called senior implied rating) of Hynix Semiconductor Inc., the majority shareholder of HSMA, and remove it from provisional status. The TCR-AP reported on July 13, 2005, that Moody's Investor Service affirmed its B1 senior unsecured rating for Hynix Semiconductor Inc.'s US$500 million bonds upon its successful closing. HYNIX SEMICONDUCTOR: Signs NAND Cross-License Deal with Sandisk --------------------------------------------------------------- On March 21, 2007, Hynix Semiconductor Inc. and U.S. flash storage card maker SanDisk Corp. revealed that they have signed a cross-license deal covering NAND flash memory, Reuters reports. The two firms also signed a preliminary agreement to form a joint venture to produce and sell the flash chip products, the report adds. In a statement, Hynix and Sandisk explained that the joint venture will involve both their equal capital investments, in dedicated production capacities at Hynix, Reuters relates, noting that financial details were not disclosed. The joint venture will focus on x4 memory technology, which promises to vastly improve NAND capacity and allow cost savings, the report says. Reuters reveals that cooperation was started between Hynix and Israel's msystems Ltd. before SanDisk acquired msystems for US$1.5 billion in 2006. About Hynix Headquartered in Echon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Standard & Poor's Ratings Services revised to positive from stable the outlooks on its 'B+' long-term corporate credit ratings on Hynix Semiconductor Inc. and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc. At the same time, Standard & Poor's affirmed its long-term corporate credit and senior debt ratings on the company. The TCR-AP reported on July 14, 2005, that Moody's Investors Service has upgraded the rating of the senior secured notes issued by Hynix Semiconductor Manufacturing America Inc. to Ba3 from Caa2. The rating action follows Moody's decision to affirm the Ba3 corporate family rating (previously called senior implied rating) of Hynix Semiconductor Inc., the majority shareholder of HSMA, and remove it from provisional status. The TCR-AP reported on July 13, 2005, that Moody's Investor Service affirmed its B1 senior unsecured rating for Hynix Semiconductor Inc.'s US$500 million bonds upon its successful closing. =============== M A L A Y S I A =============== FOREMOST HOLDINGS: CIMB Bank Agrees to Debt Settlement Proposal --------------------------------------------------------------- On March 8, 2007, the Troubled Company Reporter - Asia Pacific reported that Foremost Holdings Bhd made a disclosure with the Bursa Malaysia Securities Bhd regarding various proposals under its regularization plan. Part of Foremost's proposals was a debt settlement plan with CIMB Bank Bhd, its financial creditor, by virtue of a corporate guarantee for the debts owed by its 58.75% subsidiary, Yaku Shin (Malaysia) Sdn Bhd, which has been placed under receivership during financial year 2005. The TCR-AP noted that Foremost is currently in the advanced stages of negotiations with CIMB and is proposing for the settlement arrangement to be conducted through: (i) issuance of up to 15,800,000 new FHB Shares of MYR0.50 each at par after the Proposed Par Value Reduction to the Creditor as full and final discharge of the bank guarantee; and (ii) any shortfall arising from the Proposed Issuance of Shares for the bank guarantee to be waived. In an update, Foremost told the bourse that they received CIMB Bank's approval on the proposed scheme. Foremost adds that with the approval, the proposed debt settlement will be subject to these conditions: (i) crystallizing the corporate guarantee debt of Yaku Shin at MYR15.4 million, being debt as at Dec. 31, 2006, after netting off MYR1.5 million to be received from Receivers and Managers; (ii) allowing a 50% waiver and the balance of MYR7.70 million to be converted into FHB shares at MYR0.50 per share. The Creditor expects to receive 15.4 million shares of FHB; and (iii) A put option from the majority shareholder or associates of the major shareholder to purchase back the FHB shares at MYR0.50 per share. The put option should be secured by 50% cash margin. The company, however, said that it intends to appeal against the third condition -- put option. * * * Foremost Holdings Berhad manufactures and sells automobile speakers, home audio speakers, general-purpose speakers and speaker wooden cabinets. The Company is also engaged in the trading of auto accessories, investment holdings and the provision of management services. Products are distributed in Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United States, other Asian countries, other European countries and other countries. Foremost was classified as an affected listed issuer under Bursa Malaysia Securities Berhad's Practice Note 17 because it has "insufficient financial position to warrant continued listing." As an affected issuer, the Company is required to draft and implement a plan to regularize its finances to avoid being delisted from the Official List. Foremost's total assets as of Dec. 31, 2006, amounted to MYR33.72 million and total liabilities aggregated to MYR35 million. Shareholders' equity deficit reached MYR1.54 million. HALIFAX CAPITAL: Bourse Extends Plan Filing Deadline to June 6 -------------------------------------------------------------- At Halifax Capital Bhd's request, the Bursa Malaysia Securities Bhd has extended the time within which the company is required to file its regularization plan until June 6, 2007. The company, as an affected listed issuer under Practice Note 17 of the Bursa Malaysia Securities Bhd's Official List of Companies, failed to submit a plan showing how it will stabilize its finances to relevant authorities by the original and first extended deadlines. Halifax's failure to meet the deadline had prompted the bourse to issue a warning to suspend and commence delisting procedures on the company's securities. With the current extension, the suspension and delisting have been deferred. * * * Headquartered in Kuala Lumpur, Malaysia, Halifax Capital Berhad -- fka Setron (Malaysia) Berhad -- is principally engaged investment holding, and assembly and sale of electrical and electronic products. Setron Sales & Service (M) Sdn. Bhd., the Company's wholly owned subsidiary, is engaged in the distribution of electrical and electronic products. The company is considered an affected listed issuer under the Bursa Malaysia Securities Berhad's Practice Note 17 category because its shareholders' equity on consolidated basis is less than 25% of the issued and paid-up share capital. KL INFRASTRUCTURE: Gets Plan Filing Extension Until August 31 ------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on September 1, 2006, that KL Infrastructure Group Berhad has become an affected listed issuer pursuant to the provisions of Amended Practice Note 17/2005, as its auditors have expressed a modified opinion on its ability to continue as a going concern. In an update, KL Infrastructure said that the Bursa Malaysia Securities Bhd has extended until Aug. 31, 2007, the deadline within which it must submit a regularization plan to relevant authorities. KL had earlier stated that is in the midst of formulating a Regularization Plan to be submitted to the Securities Commission for approval and, for this purpose, is in the process of appointing a merchant banker to undertake the task. The company said that, as to date, it has not yet provided any disclosure regarding the appointment of a merchant banker to act as its restructuring adviser. * * * KL Infrastructure Group is principally engaged in the concession and operation of an intra-city public transit system called the KL Monorail. Its other activities include provision of advertising space on columns and stations along KL Monorail project route, property development and investment holding. The Group's activities are carried out principally in Malaysia. The Group has been incurring losses in the past years due to its high operating expenses and loan-interest payments. KL Infrastructure Group Berhad disclosed on Sept. 28, 2006, that it has become an affected listed issuer pursuant to the provisions of Amended Practice Note 17/2005, as its auditors have expressed a modified opinion on its going concern and based on its nine months accounts from January 31, 2006. KLINFRA's shareholders' equity on a consolidated basis is less than 50% of the issued and paid-up capital. METROPLEX BERHAD: Unit Faces Ken Grouting's Wind-Up Petition ------------------------------------------------------------ Metroplex Development Sdn Bhd, a subsidiary of Metroplex Bhd, is facing a wind-up petition filed by Ken Grouting System Specialist Sdn Bhd. Ken Grouting is asserting a MYR118,874.32 claim against Metroplex Development. The Ken Grouting claim amount is comprised of MYR42,250.05 on account of grouting services provided to Metroplex Development, with an interest at 8% per annum from August 14, 1985, to Dec. 7, 2006, aggregating to MYR72,054.27 and costs of MYR4,570. The wind-up petition was filed against Metroplex Development because it failed to comply with Ken Grouting's statutory notice dated December 7, 2006. Metroplex had assured Ken Grouting that its unit will settle the claim in full by March 22, 2007. Metroplex clarifies that the wind-up petition will not have any financial and operational impact on the group. Its total cost of investment in the unit is MYR56,000,000. The hearing for the wind-up petition is fixed for April 26, 2007. * * * Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. Metroplex is classified under Bursa Malaysia Securities Berhad's PN 17 Category and is therefore required to submit and implement a plan to regularize its business condition. As of October 31, 2006, the company reported MYR1.22 billion in total assets and MYR1.46 billion in total liabilities, resulting in a shareholders' deficit of MYR241.23 million. ===================== N E W Z E A L A N D ===================== AIR NEW ZEALAND: February Group Traffic and Capacity Increase ------------------------------------------------------------- Air New Zealand has released well-rounded figures for the month of February, the company said in its monthly investor update. Specifically, the carrier's group capacity for February increased 1% to reach 2,797 million Available Seat Kilometres (ASKs) compared with that of February 2006. Group traffic also increased 4% to reach 2,209 Revenue Passenger Kilometres (RPKs) against the same month last year. The resulting passenger load factor was 79%, which was 2.3 percentage points higher than February 2006. This high load factor was achieved despite a 40.5% increase in capacity to Asia/U.K., although much of it was offset by 15.4% capacity reductions in North America/U.K. Meanwhile, Tasman/Pacific Island capacity decreased 6.9% as a result of changes to the Freedom Air network. Consequently, load factors improved 9.4 percentage points to reach 77.4%. For the year to date, Air New Zealand's group capacity grew 3.2%, while its traffic growth increased 1.9% compared to the corresponding period in 2006. The resulting year-to-date passenger load factor was 75.9%, which is 1 percentage point lower than last year. Air New Zealand also announced that it would be increasing services between Auckland, Rarotonga and Los Angeles from Dec. 6, 2007, to March 26, 2008. Air New Zealand will be operating an additional Auckland-Rarotonga-Los Angeles flight every week during the period, increasing its weekly service between the United States and Rarotonga to two. Air New Zealand will also be upgrading its audio and video entertainment content on its Boeing 777 or 747 aircrafts. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on Sept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. BIG SKY DAIRY: Bank of New Zealand Appoints Liquidator ------------------------------------------------------ The Bank of New Zealand has placed Big Sky Dairy Farms Ltd in receivership, the New Zealand Press Association reports, citing Financial Times Information Limited. The bank appointed Murray Frost of Deloitte in Dunedin as the company's receiver, Radio New Zealand says. According to Radio NZ, Big Sky Dairy was set up as a dairy farm conversion about six years ago and is currently milking a herd of about 3,000 cows. Mr. Frost said the business will continue for the time being but did not reveal the company's current level of debt. The report also reveals that of the company's total 3.4 million shares, Practice Management Trustee Ltd and Brookside Farm No2 Ltd. held 1.13 million. Brookside director and 50% shareholder Ewan Carr owned the original Patearoa property that was developed into Big Sky, NZPA notes. Rodney Humphries and Alan Nicholas are Big Sky Dairy's directors. They are also the directors of two other companies, which were also placed in receivership: 1) Cascade Capital Ltd, and 2) Main Farm Ltd. NZPA further says that Mr. Carr's company -- Brookside -- has successfully sought interim liquidation applications in the High Court at Dunedin against six companies to protect assets while further investigations were under way. NZPA recounts that the Patearoa farm was initially mooted in early 2001 as a super farm running up to 6,000 cows on 1600ha using supplementary feed. It is understood to have been running 3,000 cows on about 1300ha in recent times, NZPA relates. ===================== P H I L I P P I N E S ===================== HERTZ CORP: S&P Affirms BB- Corporate Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Hertz Corp. to stable from negative. All ratings, including the 'BB-' corporate credit rating, were affirmed. "The outlook revision is based on the company's stabilized financial profile, with better earnings performance in 2006 and continued improvement expected in 2007. In addition, with 28% of the company now owned by public shareholders, the chance of another large debt-financed dividend is unlikely," said Standard & Poor's credit analyst Betsy Snyder. The ratings on Hertz reflect an aggressive financial profile following its US$14 billion leveraged acquisition in December 2005, its sponsors' very aggressive financial policy, and the price-competitive nature of on-airport car rentals and equipment rentals. Ratings also incorporate the company's position as the largest global car rental company and the strong cash flow its businesses generate. Hertz was acquired from Ford Motor Co. by Clayton, Dubilier & Rice Inc., The Carlyle Group, and Merrill Lynch Global Private Equity, who combined now own a 72% stake after the company's US$1.3 billion IPO in November 2006. The acquisition, which added over US$2 billion of debt to Hertz's balance sheet, resulted in an increase in its borrowing costs, and credit ratios have weakened from their previous relatively healthy levels. Subsequently, Hertz's sponsors completed a US$1 billion debt-financed dividend just six months after acquiring the company. Proceeds of the initial public offering, after US$1 billion was used to repay debt incurred for the dividend, were also paid to the sponsors as a dividend. In addition, around two-thirds of the company's tangible assets are now secured, versus around 10% prior to its acquisition. Although Hertz's financial policy has become significantly more aggressive, its financial profile has stabilized. While its sponsors took US$1.3 billion of dividends from the company in less than a year, partially funded through debt that was subsequently repaid with proceeds from an initial public offering, the chances of this recurring are unlikely given that 28% of the company is now owned by public owners. A significant weakening in the company's operating performance could result in a negative outlook. If the company continues to reduce its debt leverage, the outlook could be revised to positive. Headquartered in Park Ridge, New Jersey, Hertz Corp. -- http://www.hertz.com/-- is a car rental company that operates from approximately 7,600 locations in 145 countries worldwide. Hertz also operates an equipment rental business, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers through more than 360 branches in the United States, Canada, France, and Spain. Hertz has operations in the Philippines, Hungary, and Peru, among others. MIRANT CORP: Bowline Wants to Assume US$200MM Insurance Policy -------------------------------------------------------------- Mirant Bowline, LLC, an affiliate of Mirant Corp., seeks the United States Bankruptcy Court for the Northern District of Texas' authority to assume an insurance policy -- Owner's Title of Insurance Policy No. 26-031- 92-56864 -- issued by Fidelity National Title Insurance Company of New York for US$200,716,836. Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth, Texas, informs the Court that the Insurance Policy covered certain real property purchased by Mirant Bowline located in the Town of Haverstraw and the Village of West Haverstraw, County of Rockland, New York. The Insurance Policy became effective on July 1, 1999. Mr. Prostok asserts that the Fidelity Insurance Policy is economically beneficial to Mirant Bowline. In addition, Mirant Bowline is current on all prepetition and postpetition obligations under the Insurance Policy, and the requirements of Section 365(b)(1) of the Bankruptcy Code governing the treatment of defaults in contracts and unexpired leases do not apply. Accordingly, Mr. Prostok says, there are no cure amounts as of the assumption of the Insurance Policy. About Mirant Corp. Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant NY-Gen, LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York, Inc., and Hudson Valley Gas Corporation, were not included and have yet to submit their plans of reorganization. (Mirant Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). MIRANT CORP: Sells Surplus Equipment to LS Power for US$22 Mil. --------------------------------------------------------------- The United States Bankruptcy Court for the Northern District of Texas granted Mirant Bowline, LLC's, a subsidiary of Mirant Corp., to sell certain surplus equipment to LS Power Co I, LLC. The equipment sold are: * 3 Mitsubishi-IHI Heat Recovery Steam Generators * 1 350MW GE D-11 Steam Turbine LS Power purchased the equipment in cash for US$22,000,000. According to Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth, Texas, the equipment were purchased by Mirant Bowline in anticipation of a planned expansion that is presently suspended, and is not currently needed for operations. Mr. Prostok states that Mirant Bowline will sell the equipment by private sale free and clear of all liens, claims and encumbrances on an "as is, where is" basis without any representations or warranties. Mirant Americas, Inc., also a subsidiary of Mirant Corp. has recently entered into a sale agreement to transfer its ownership interests in six Mirant-affiliated entities to LS Power. Moreover, LS Power will bear the cost of transport of the equipment from the Mirant Bowline Facility, and will be required to remove the equipment within six months following the closing date. Accordingly, Mirant Bowline will execute a Bill of Sale. About Mirant Corp. Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant NY-Gen, LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York, Inc., and Hudson Valley Gas Corporation, were not included and have yet to submit their plans of reorganization. (Mirant Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). PHIL. AIRLINES: Orders Two Boeing 777-300ER Passenger Planes ------------------------------------------------------------ Philippine Airlines ordered two Boeing 777-300 Extended Range commercial airplanes, with purchase rights for two more 777- 300ERs, the company said in a press statement. The acquisition is part of the airline's plan to expand direct services between the Philippines and the United States. The release, however, did not disclose the financial terms of the deal. At Boeing's list prices, the 777-300ER costs between US$237.0 million and US$264.5 million, Agence France-Presse notes. PAL has also signed a letter of intent with GE Commercial Aviation Services to lease two Boeing 777-300ER aircraft, the media release added. According the release, the fuel-efficient 777-300ER is the world's largest long-range twin-engine jetliner and is capable of carrying approximately 365 passengers in PAL's two-class configuration, with a maximum range of 7,880 nautical miles (14,594 kilometers). PAL said in December that it was planning to acquire up to six 777-300ER aircraft over the next six years for US$1.5 billion dollars, AFP recalls. Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. Following labor problems and its failure to settle debts, PAL filed for rehabilitation in June 1998, and is slated to complete its 10-year debt rehabilitation program in 2009. A March 21, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the airline company will continue a government-led rehabilitation program even as creditors neither approved nor rejected the program to leave the protection of the Securities and Exchange Commission. A report by the Manila Times in July 2006 said that since its corporate rehabilitation in 1998, PAL reduced its debts to PHP237.23 billion from PHP496.02 billion by selling assets and using the proceeds to pay off maturing debts. PRIME ORION: APA and BPI File Complaint Against Firm's Units ------------------------------------------------------------ Asset Pool A Inc. and Bank of the Philippine Islands has filed a complaint against, among others, three of Prime Orion Philippines, Inc.'s subsidiaries: 1. Orion I Holdings Philippines, Inc.; 2. Orion Brands International, Inc.; and 3. Orion Land Inc. APA and BPI seeks for: -- the issuance of a temporary restraining order and writ of preliminary injunction to freeze the proceeds of the sale of Pepsi-Cola Products Philippines, Inc. shares; -- the rescission of the sale of PCPPI shares to Hong Way Holdings and Orion Land; and -- the rescission of the sale of PCPPI shares to Nassim Capital Pte. Ltd. As previously reported in the Troubled Company Reporter - Asia Pacific, Orion Brands sold, on Feb. 28, 2007, 584,283,294 common shares stock of PCPI to Nassim for US$21,163,362. In December 2004, Orion Brands sold a 14% stake in PCPI to Hong Way Holdings and Orion Land as part of Prime Orion's plan to restructure its debts. The company used the proceeds of the sale transactions to pay inter-affiliate advances and acquire the loans of its indirect subsidiary, Lepanto Ceramics, Inc., from foreign creditors. Pursuant to the complaint, APA asserts that it is an assignee of the loan of Lepanto Ceramics. Headquartered in Makati City, Philippines, Prime Orion Philippines, Inc., is an investment holding company with principal business interests in real estate and property development, financial services and manufacturing. The company's balance sheet as of Dec. 31, 2006, showed capital deficiency of PHP5.21 billion. SAN MIGUEL: Hong Kong Unit Posts Increased Losses in 2006 --------------------------------------------------------- The net losses of San Miguel Corp.'s Hong Kong unit, San Miguel Brewery Hong Kong, sharply rose in 2006. For the year ended Dec. 31, 2006, the Hong Kong subsidiary recorded net losses of HK$106.32 million, a 63% rise from the HK$65.41-million loss booked in 2005. The unit's rise in revenues was more than offset by its increased costs and expenses, including those from restructuring. The Hong Kong brewery posted a turnover of HK$826.82 million in 2006, a 2.5% increase from the HK$806.91 million in 2005. The unit posted a sharp rise in cost of sales and operating expenses in 2006, hence an operating loss of HK$11.61 million. In 2005, it posted an profit from operations of HK$11.17 million. "Intense price competition in the local beer market and shift in consumer preference toward low-priced brands continued to be the primary challenges for the beer industry and the company," the Hong Kong unit says. "For two consecutive years, the beer industry suffered a volume decline with 2006 registering a 1.6% contraction from the previous year. This was brought about by the emergence of wine (both still and sparkling) and whisky drinkers challenging beer's substantial share of alcoholic beverage market." Even so, the San Miguel brand retained its position as the number one brand in the Hong Kong market in 2006, the unit adds. To ensure its leadership position and meet the challenges of the market, the Hong Kong brewery has devised programs to reinforce and build the San Miguel's brand equity. This year, the unit plans to launch a new marketing campaign for the brand. A full-text copy of San Miguel Brewery Hong Kong's financial statements for the year ended Dec. 31, 2006, is available for free at http://ResearchArchives.com/t/s?1bdd Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The Company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The Company also manufactures glass, metal, plastic, paper and composites packaging products. Moody's affirmed on Feb. 22, 2007, the Ba1 local currency corporate family rating of San Miguel after the company announced it is to sell its 65% stake in Coca-Cola Bottlers Philippines Inc to The Coca-Cola Company. The rating outlook remains stable. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. ================= S I N G A P O R E ================= GERMAN DISTRICENTRE: Court Issues Wind-Up Order ----------------------------------------------- The High Court of Singapore has ordered the winding up of German Districentre Pte Ltd.'s operations. In that regard, Kon Yin Tong, Wong Kian Kok, and Aw Eng Hai were appointed as liquidators. The Liquidators can be reached at: Kon Yin Tong Wong Kian Kok Aw Eng Hai c/o 47 Hill Street #05-01 Singapore Chinese Chamber of Commerce & Industry Building Singapore 179365 GETRONICS NV: Moody's Confirms Junk Rating on 2008 Bonds -------------------------------------------------------- Moody's confirms the current B2 corporate family rating of Getronics N.V. Concurrently the Caa1 rating on the approximately EUR11-million of remaining convertible bonds due 2008 is also confirmed. The Caa1 rating on 2008 bonds is expected to be unchanged upon the implementation of Moody's Loss Given Default Methodology beginning March 19. A negative outlook for ratings was assigned. Moody's will withdraw the rating on the 2008 notes if they are fully redeemed. Ratings actions followed Getronics' announcement of 2006-year end results, which showed subdued performance but improvements from the June 2006 half-year results. Whilst positive actions have been taken, impacts are not yet sufficiently visible in financial results. Therefore, the company continues to be weakly positioned within the B2 rating such that underperformance in credit metrics or liquidity in future quarterly results could cause ratings to move downwards. This would need to be considered in the context of the company's seasonality. Moody's factors Getronic's scale in the ratings, with close to 25,000 employees and EUR2.6 billion in revenues reported for 2006, together with momentum in new contracts expected to come on-stream in 2007. The divestment program, on-going restructuring, change in business focus and senior executive changes indicate a business in transition. The negative outlook reflects uncertainty surrounding the impact of these changes and the company's position ahead. Financial results to Dec. 31, 2006 do not demonstrate sufficient recovery to stabilize the ratings. Getronics also operates in a highly competitive environment that is subject to cyclical pressures and continuous change. Event risk is material given Getronics' divestment and restructuring programs and its plans to reduce costs, improve margins and reduce leverage. However, the rating does factor the positive changes made, momentum in new contracts to commence in 2007, the significantly improved liquidity position and a higher percentage of contracted revenues for 2007 versus prior years. The seasonality of the business means that Moody's expects cash flows in the first half of 2007 to continue to be weak. A summary of today's ratings actions follows: -- the corporate family rating at Getronics NV is confirmed at B2; -- the rating on EUR11-million senior unsecured convertible Dutch bonds due 2008 at Getronics NV is confirmed at Caa1. The outlook is Negative. About Getronics Headquartered in Amsterdam, Netherlands, Getronics N.V. -- http://www.getronics.com/-- designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics has some 27,000 employees in over 30 countries and approximate revenues of EUR3 billion. The company has regional offices in Boston, Madrid and Singapore. Its shares are traded on Euronext Amsterdam. GETRONICS NV: Posts EUR145 Million Net Loss for Full Year 2006 -------------------------------------------------------------- Getronics N.V. released its unaudited financial results for the year ended Dec. 31, 2006. Getronics posted EUR145 million in net losses, including discontinued operations, on EUR2.63 billion in revenues for the full year 2006, compared with EUR4 million in net profit, including discontinued operations, on EUR2.53 billion in revenues for 2005. During 2006, Getronics divested non-core businesses in order to strengthen its balance sheet and to sustain its focus on workspace management and application services. Getronics sold its HR Services and KZA consultancy businesses in the Netherlands. By selling these higher margin non-core businesses, a significant amount of cash was raised. Getronics also sold a number of its country operations, including those in Italy, Poland, Czech Republic, Slovakia, Austria and France. The sale of these operations was carefully considered -- as a provider of international ICT services, Getronics understands the need to provide continual and consistent service wherever it is required by its clients. The international ICT service business relies heavily on the ability to establish and sustain effective networks of local partners, and Getronics' geographical divestments reflect this. With each of these geographic divestments, Getronics builds effective relationships with its local service partners in order to ensure that its clients experience a smooth transition and the same high level of service. In combination with Getronics integrated network of Global Service Centres, the Company will continue to provide full service throughout Europe to its global clients. Outlook The level of contracted revenue and the quality of the commercial pipeline at the start of 2007 supports an improved organic service revenue growth. This growth will be driven by demand in workspace management, including the Future-Ready Workspace, security and transformation services. Although service revenue is important to Getronics' long-term success, the primary focus in 2007 will be on margin improvement and cash generation. In 2007, Getronics expects to see a margin improvement as a result of profitable organic growth and the Breakout Program. Management is working towards an EBITAE range of between 4.0% and 4.5%, excluding one-off items. Getronics, as previously stated at the Extraodinary General Meeting of Shareholders on 1 December 2006, re-confirms its EBITAE margin target of at least 5% to be achieved by the end of 2008. In addition, the Company will no longer issue revenue targets, as this is less relevant in the context of its focused strategy. As a result of this and following significant divestments executed, the previously communicated strategic target of EUR4 billion in total revenue by the end of 2008 no longer applies. Also in 2007, Getronics may incur employee benefit plan related gains or losses as the Company looks to further reduce its exposure to such plans. Any such gains or losses may have material effects on the Company's operating results. The Company will also continue to focus on its cash management programme, aiming to generate positive cash flows to support the target Debt/EBITDA ratio of 2 or less by the end of 2008. The Company is well positioned to successfully execute on its recently communicated strategy. The Board of Management feels confident that the Company will generate an operational performance in line with the outlook. By meeting its outlook, the Company expects to achieve a net profit in 2007, barring unforeseen circumstances. About Getronics Headquartered in Amsterdam, Netherlands, Getronics N.V. -- http://www.getronics.com/-- designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics has some 27,000 employees in over 30 countries and approximate revenues of EUR3 billion. The company has regional offices in Boston, Madrid and Singapore. Its shares are traded on Euronext Amsterdam. * * * Getronics N.V.'s 'B' long-term corporate credit rating, along with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3' recovery ratings on CreditWatch with negative implications, where they had originally been placed on Jan. 19. The '3' recovery rating indicates Standard & Poor's expectation of meaningful (50%-80%) recovery of principal for secured lenders in the event of a payment default. Moody's Investors Service downgraded Getronics' corporate family rating to B2 from B1 and placed the ratings on review for possible downgrade following the company's announcement of half year results showing a widening of net losses and fall in margins below the company's expectations. Concurrently the rating on the EUR100 million senior unsecured convertible Dutch bonds due 2008 has been downgraded to Caa1 from B3. GETRONICS NV: Declines to Comment on KPN Takeover Speculation ------------------------------------------------------------- Getronics NV refused to comment on a De Telegraaf report that it was being prepared for a sale to Dutch telecoms group Royal KPN NV, Reuters says. According to the report, Getronics' banks instructed new CFO Maarten Henderson to "clean up and facilitate a sale". The paper reveals that KPN is only interested in the Benelux operations of Getronics. Thus, the IT group will have to sell its other businesses in Britain, Spain and United States. Getronics CEO Klaas Wagenaar earlier disclosed this month that the group might sell some units and acquire new businesses particularly outside western Europe. It is also considering offers for the whole company, Reuters relates. Analysts see Getronics as a takeover candidate because it has interesting assets as well as underperforming activities. However, a spokesman for KPN reiterated that the telecoms group had nothing to say regarding any takeover talks with Getronics although some of the latter's activities fit into its strategy to broaden portfolio and expand from core business. Meanwhile, workers at Getronics' Scottish headquarters at Inchinnan, Renfrewshire, fear that the sale of its Dutch parent may result to job cuts, The Herald reports. About Getronics Headquartered in Amsterdam, Netherlands, Getronics N.V. -- http://www.getronics.com/-- designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics has some 27,000 employees in over 30 countries and approximate revenues of EUR3 billion. The company has regional offices in Boston, Madrid and Singapore. Its shares are traded on Euronext Amsterdam. * * * Getronics N.V.'s 'B' long-term corporate credit rating, along with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3' recovery ratings on CreditWatch with negative implications, where they had originally been placed on Jan. 19. The '3' recovery rating indicates Standard & Poor's expectation of meaningful (50%-80%) recovery of principal for secured lenders in the event of a payment default. Moody's Investors Service downgraded Getronics' corporate family rating to B2 from B1 and placed the ratings on review for possible downgrade following the company's announcement of half year results showing a widening of net losses and fall in margins below the company's expectations. Concurrently the rating on the EUR100 million senior unsecured convertible Dutch bonds due 2008 has been downgraded to Caa1 from B3. HEXION SPECIALTY: Posts US$109MM Net Loss in Year Ended Dec. 31 --------------------------------------------------------------- Hexion Specialty Chemicals Inc. reported a net loss of US$109 million on net sales of US$5.205 billion for the year ended Dec. 31, 2006, compared with a net loss of US$87 million on net sales of US$4.442 billion for the year ended Dec. 31, 2006. The net loss in 2006 included increased interest expense of US$242 million, compared to interest expense of US$203 million in 2005, and an increased charge to extinguish debt of US$121 million, compared to a loss on extinguishment of debt of $17 million in 2005. Of the 17% increase in net sales in 2006, acquisitions accounted for 12 percentage points when compared to 2005. Full year operating income increased by 38% to US$286 million compared to US$208 million in 2005, supported by lower selling, general and administrative expenses, continued realization of synergies and lower transaction costs compared to the similar year ago period. 2006 operating income was negatively impacted by increased integration costs when compared to 2005, as well as the continued rise in raw material costs and the delayed timing in contractual pass through of certain raw material cost increases to customers that resulted in a negative full-year lead lag. Fourth Quarter Highlights For the fourth quarter ended Dec. 31, 2006, net loss was US$55 million versus a net loss of US$14 million in the prior year period. The net loss in the fourth quarter 2006 included a US$69 million loss on extinguishment of debt. Revenues increased to US$1.309 billion compared to revenues of US$1.141 billion during the prior year period, an increase of approximately 15%. Operating income improved 34% to $59 million versus US$44 million in the prior year period. Income for the fourth quarter 2006 was negatively impacted by the delayed timing of contractual pass through of certain raw material price increases and integration costs of US$12 million compared to integration costs of $5 million in fourth quarter 2005. "Hexion posted improved revenues and Segment EBITDA in the fourth quarter 2006 compared to the fourth quarter 2005, despite key raw materials at historically high levels," said Craig O. Morrison, chairman and chief executive officer. "Rapidly escalating raw material costs continued to create a negative lead-lag effect in the fourth quarter 2006. Despite this volatility and some softening volumes for our products, primarily for the North American residential construction and automotive markets, we improved our fourth quarter 2006 Segment EBITDA and operating income by US$12 million and US$15 million, respectively, when compared to the fourth quarter 2005." Segment EBITDA is defined as EBITDA adjusted to exclude certain noncash and non-recurring expenses. Acquisition of Orica Limited During the fourth quarter, Hexion announced that it received Australian regulatory approval to purchase the adhesives and resins business of Orica Limited and subsequently completed the transaction in February 2007. The Orica adhesives and resins business manufactures formaldehyde and formaldehyde-based binding resins used primarily in the forest products industry. The business had 2006 sales of US$85 million and employs 100 people. The acquisition included three manufacturing facilities, with one site in Australia and two in New Zealand. Senior Secured Credit Facility As previously announced, Hexion amended its senior secured credit facility in November 2006. The amended and restated credit agreement increased the company's current seven-year US$1.625 billion term loan facility to US$2 billion. The amended and restated credit agreement also provides that the company's current seven-year US$50 million synthetic letter of credit facility remained outstanding. The company continues to have access to the US$225 million revolving credit facility. In addition, during the fourth quarter 2006, the company retired US$625 million of outstanding senior second secured notes. The company also sold through its wholly owned finance subsidiaries, Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance ULC, US$200 million of Second-Priority Senior Secured Floating Rate Notes due 2014 and US$625 million of 9_% Second-Priority Senior Secured Notes due 2014. About Hexion Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://hexionchem.com/-- makes thermosetting resins (or thermosets). Thermosets add a desired quality (heat resistance, gloss, adhesion) to a number of different paints and adhesives. Hexion also makes formaldehyde and other forest product resins, epoxy resins, and raw materials for coatings and inks. The company has 86 manufacturing and distribution facilities in 18 countries. The company has its Asian headquarters in Singapore, with offices in Australia, China, Korea, Malaysia, New Zealand, Taiwan, and Thailand. * * * The Troubled Company Reporter - Asia Pacific reported on Nov. 16, 2006, that Moody's Investors Service assigned B3 ratings to the new guaranteed senior secured second lien notes due 2014 of Hexion Specialty Chemicals Inc. The company expects to issue roughly US$825 million of notes split (55/45) between fixed and floating rate notes. The new notes will be used to refinance roughly US$625 million of existing second lien notes and partially fund a US$500 million dividend to existing shareholders. A US$375 million increase in the company's existing guaranteed senior secured first lien term loan to US$2 billion, rated Ba3, will fund the remainder of the extraordinary dividend. Moody's also affirmed Hexion's other long term debt ratings and its SGL-2 speculative grade liquidity rating. As a result of this refinancing, the LGD assessment rates have changed as shown in the table below. The outlook is stable and the ratings on the existing second lien notes will be withdrawn upon successful completion of the refinancing. New ratings assigned: * Hexion Specialty Chemicals Inc. -- Floating Rate Gtd. Second Lien Sr. Sec Notes due 2014 -- B3, LGD5, 75%; and -- Fixed Rate Gtd Second Lien Sr Sec Notes due 2014, -- B3, LGD5, 75%. Ratings affirmed with revised LGD rates: -- US$225mm Gtd Sr Sec Revolving Credit Facility due 5/2011 -- Ba3, LGD2, 24% from 29%; -- US$50mm Gtd Sr Sec Letter of Credit Facility due 5/2011 -- Ba3, LGD2, 24% from 29%; -- US$1,625mm Gtd Sr Sec Term Loan due 5/2013 -- Ba3, LGD2, 24% from 29%*; -- US$300mm Flt Rate Gtd Second Lien Sr Sec Notes due 7/2010 -- B3, LGD5, 75% from 77%**; -- US$325mm 9.0% Gtd Second Lien Sr Sec Notes due 7/2014 -- B3, LGD5, 75% from 77%**; and -- US$34.0mm Pollution Control Revenue Bonds Series 1992 due 12/2009 -- B3, LGD5, 75% from 77%. Ratings affirmed: * Hexion Specialty Chemicals Inc. -- Corporate Family Rating -- B2; -- Probability of Default Rating -- B2; -- US$114.8mm 9.2% Sr. Unsec Debentures due 3/2021 -- Caa1, LGD6, 94%; -- US$246.8mm 7.875% Sr. Unsec Notes due 2/2023 -- Caa1, LGD6, 94%; and -- US$78.0mm 8.375% S.F. Sr. Unsec Debentures due 4/2016 -- Caa1, LGD6, 94%. Standard & Poor's Ratings Services assigned its 'B+' rating and its recovery rating of '3' to Hexion Specialty's US$1.675 billion senior secured term loan and synthetic letter of credit facilities. The rating on the existing US$225 million revolving credit facility was lowered to 'B+' with a recovery rating of '3', from 'BB-' with a recovery rating of '1', to reflect the similar security package as the new term loan and synthetic letter of credit facility. The ratings on the existing senior second secured notes were raised to 'B', with a recovery rating of '3', from 'B-' with a recovery rating of '5'. The ratings on the senior second secured notes reflect the amount of priority claims of the revolving facility and the first-lien term loan lenders. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating on Hexion and revised the outlook to stable from negative. PETROLEO BRASILEIRO: Joins Ultra Group & Braskem to Buy Ipiranga ---------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras, the Ultra Group and Braskem have reached an understanding to purchase Ipiranga Group businesses, consolidating and increasing petrochemical and fuel distribution sector businesses. The transaction is worth approximately US$4 billion. By acquiring the Ipiranga Group businesses, the three companies reinforce their commitment to growth in Brazil, Rio Grande do Sul and the same stakeholders targeted by Ipiranga: the shareholders, employees, partners, community and consumers. The Ipiranga Group, one of the largest and most traditional in Brazil, operates in the oil refinery, petrochemical and fuel distribution sectors. Last year it registered BRL30 billion in net revenues, with Ebitda at BRLbillion and net earnings of BRL534 million. Petrobras' president, Jose Sergio Gabrielli de Azevedo, said the deal is in line with the company's strategic plan, reinforcing its active presence in the Brazilian petrochemical industry, in which it already has important holdings. To Mr. Gabrielli, "Petrobras intends to have a more relevant role in petrochemicals than it has had in the past few years. The Ipiranga negotiation is yet another step in the strategy of consolidating important economic groups in Brazil, with a relevant Petrobras presence in them. From the downstream viewpoint, the executive also highlights the operation is important as it increases the company's North, Northeast, and Midwest network synergy. Pedro Wongtschowski, the Ultra Group president, emphasized the growth that is expected with the transaction. "With this incorporation, we take-on important assets, committed professionals and, moreover, the Ipiranga flag, which is among Brazil's ten most valuable brands and one of the country's most respected companies. With the acquisition, we significantly boosted our operations in the fuel distribution area, now holding two of the sector's main brands: Ultragaz and Ipiranga. It is an investment in the fuel, biofuel, and in the Brazilian markets." Braskem's president, Jose Carlos Grubisich, said the Rio Grande do Sul group's incorporation is a water divider in the strategy at the company he leads: "we are among the world's top ten petrochemical companies. We are committed to Brazil, to Corporate Governance, to and sustainable development." "This new petrochemical sector consolidation brings an important growth potential to Braskem, with a new competitiveness and profitability benchmark for our business," concluded Mr. Grubisich. Transaction Procedure The first stage involves Ultra Group acquisition of the shares held by the families controlling the Ipiranga Group. The Ultra Group will then make a public offering to purchase common shares held by Ipiranga Group minority shareholders. In the third step, Braskem and Petrobras will submit offers to shareholders to delist Copesul. In the fourth step, the Ultra Group will incorporate preferred shares held by Companhia Brasileira de Petr�leo Ipiranga (CBPI), Distribuidora de Produtos de Petr�leo Ipiranga -- DPPI -- and Refinaria de Petr�leo Ipiranga -- RPI -- minority shareholders, who will receive preferred shares in Ultrapar. In the fifth and final step, petrochemical assets will be sold and handed over to Braskem and Petrobras. Fuel distribution businesses absorbed by Petrobras will reinforce the company's distribution activities in the North East, North and Midwest. The assets will be distributed as: Fuel Distribution Sector The Ultra Group will absorb the Ipiranga Group fuel distribution network in the South and Southeast regions and will continue trading under the Ipiranga brand. Petrobras will take over the Ipiranga distribution network in the North, North East and Midwest and will be entitled to use the Ipiranga brand for a period of five years, during which time it will be gradually substituted by the Petrobras Distribuidora brand. Petrochemical Sector Braskem will acquire 60% of Ipiranga Group assets in the petrochemical sector and will strengthen its controlling stake in Copesul. Petrobras will acquire 40% of the Ipiranga Group assets in the petrochemical sector. Refining Petrobras, the Ultra Group and Braskem will have equal controlling shareholdings in the Ipiranga Refinery, in Rio Grande do Sul, and they have made a commitment to continuing operations. The transaction is subject to regulatory approval in Brazil from the Economic Defense Board, Economic Law Secretariat, and the Economic Oversight Secretariat. In the fuel distribution sector, the Ultra Group already owns the leading GLP brand, Ultragaz, and will incorporate a highly significant brand into its business, Ipiranga. This will result in a significant increase in its sector presence based on best corporate governance and management practices. The petrochemical sector, Braskem will strengthen its Latin American market leadership in thermoplastic resins, increasing its stake in Copesul and advancing its strategy of building growth by creating value. Ipiranga's historical commitments to Rio Grande do Sul and to Brazil will be upheld by Petrobras, the Ultra group and Braskem. The company's social, cultural and environmental activities and programs will also remain in place. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. SCOTTISH RE: Unit Inks Term Loan Pact with Ableco & Mass. Mutual ---------------------------------------------------------------- Scottish Re Group Ltd.'s unit Scottish Annuity & Life Insurance Co. Ltd. as borrower, Scottish Re and certain of its subsidiaries as guarantors and Ableco Finance LLC and Massachusetts Mutual Life Insurance Co. as lenders entered into a term loan agreement, with Ableco Finance acting as agent on March 9. In a Form 8-K filed March 15, Scottish Re said that the proceeds of any borrowings under the loan will be used to pay all the costs and expenses incurred in connection with the term loan agreement and for general working capital purposes. If the security purchase agreement transaction with MassMutual Capital Partners LLC and SRGL Acquisition LLC, an affiliate of Cerberus Capital Management LP, is completed, the investors will initially hold securities representing approximately 68.7% of the voting power of all of the company's shareholders, subject to certain adjustments. Upon the completion of the transaction, Scottish Annuity & Life Insurance will be obliged to repay to the lenders any borrowings under the loan agreement. Massachusetts Mutual Life Insurance is an affiliate of MassMutual Capital Partners. Ableco Finance is an affiliate of Cerberus Capital Management. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities * * * Troubled Company Reporter - Asia Pacific reported on March 07, 2007, that Standard & Poor's Ratings Services said that its ratings on Scottish Re Group Ltd. (B/Watch Dev/--) and affiliated operating companies remain on CreditWatch with developing implications following the announcement by the company that the shareholders have approved the transaction by which MassMutual Capital Partners LLC and affiliates of Cerberus Capital Management L.P. would provide an equity infusion of US$600 million in a transaction to close in the second quarter of 2007. Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt, which is rated at Ba3 and preferred stock rated at B2. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement, which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% USUS$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. ================= S R I L A N K A ================= SINHAPUTHRA FINANCE: Fitch Assigns 'BB(lka)' Long-Term Rating ------------------------------------------------------------- Fitch Ratings Lanka has assigned a National Long-term 'BB(lka)' rating to Sinhaputhra Finance Ltd. The Outlook on the rating is Stable. SFL's rating reflects its modest profitability, relatively better systems and procedures, as well as modest product diversity. While SFL's asset quality and solvency measures at a regulatory level were satisfactory, the rating was constrained by significantly weaker ratios at the more stringent three-month non-performing loan classification. SFL's portfolio growth slowed to 28% yoy in FY06, versus 37% in FY05 due to SFL placing greater emphasis on the disposal of its repossessed vehicle stock, rather than on portfolio growth. SFL's customers are limited to the Central province and comprise the riskier sub prime market. Vehicle finance (lease and hire purchase agreements) constituted the majority of the loan portfolio, at 56% at the six month period ending September 2006 ("end-6M06"), compared to 60% at FYE05. Loans to small and medium enterprises, and to a lesser extent, personal loans to salaried employees comprise the rest of the portfolio at 44% at end-6M06, versus 40% at FYE05. SFL's return on assets was 3.3% in 6M06 (2.8% in FYE06), below the industry average of 3.5%. Once the ratio was adjusted for non-recurring income, it falls to 2.5%. Fitch expects spreads as measured by net interest margin (8.1% for 6M06) to tighten somewhat due to competitive pressure but to remain healthy. Fitch classifies NPLs as loans in arrears of over three months whilst the Central Bank of Sri Lanka's regulations for finance companies require them to classify NPLs as any loans in arrears over six months, and begin provisioning thereafter. SFL's asset quality at the three-month level is poor with gross NPL/gross loans of 22.6% end-6M06 (38.8% at FYE05), partly reflecting the risk profile of the target clientele and the company's business strategy. Despite this, SFL's asset quality at a six month level is on an improving trajectory due to focused recovery. SFL's NPL ageing was satisfactory with 79% of NPLs falling into the three to six months 'in arrears bucket', where regulatory provisioning is not required for these NPLs. Provision coverage for all NPLs in arrears over six months was in excess of 100% (on account of a general provision on repossessed vehicles). However, the agency notes that SFL's NPLs at the three-month level and resulting solvency as measured by Net NPL/Equity is significantly weaker than its peers and could present challenges for recovery in a potentially slowing economic environment. SFL faced some interest rate exposure (similar to other finance companies) on account of its portfolio (with average tenors of 3-6 years) funded primarily through annually repricing time deposits (61.5% of the funding mix at FYE06). With an equity base of LKR 319m end-6M06, SFL meets the minimum capital requirement of LKR 200m set by CBSL. However, SFL's equity/assets ratio was fairly low, at 10.3% end-6M06 which was below the sector average (15.6% at FYE06). SFL was founded in 1978 by Mr Tissa Wijeyeratne and a group of entrepreneurs based in the Kandy district. The present Joint Managing Director Mr Ravana Wijeyeratne owns 52% of the company's equity with the remainder being held by its employees. =============== T H A I L A N D =============== AGRO INDUSTRIAL: Announces Completion of Rehabilitation Plan ------------------------------------------------------------ In a regulatory filing with the Stock Exchange of Thailand on Mar. 15, 2007, Agro Industrial Machinery PCL disclosed that the Central Bankruptcy Court has ruled that the company was able to implement and complete the conditions stipulated in its Rehabilitation Plan. The court declared on Mar. 15 that Agro Industrial has fully completed its Rehabilitation Plan, which was filed on Dec. 20, 2006. Thus, Agro Industrial is no longer under rehabilitation. About Agro Industrial Agro Industrial Machinery Public Company Limited -- http://www.thaiengine.com/-- was formerly known as Thai Engine Manufacturing Public Company Limited until February 9, 2006. The Company manufactures small diesel engines under the Mitsubishi brand. It is also the sole Mitsubishi agent in Thailand and Indo-China countries. On November 7, 2000, the creditors' meeting voted in favor of the Company's rehabilitation plan and on December 20, 2000, the Central Bankruptcy Court approved the rehabilitation plan as well as appointed Churchill Pryce Planner Company Limited as plan administrator. The rehabilitation plan subsequently went through some amendments. On July 7, 2005, the Central Bankruptcy Court adjudicated to consent that the Company becomes the new plan administrator. Agro Industrial expects to resume trading on the Stock Exchange of Thailand by the end of the year following court approval of its debt-restructuring plan. ASIA HOTEL: Earns THB159 Million in Year Ended Dec. 31, 2006 ------------------------------------------------------------ Asia Hotel PCL recorded a consolidated net income of THB159,050,415.74 on total revenues of THB1,139,184,464.76, for the year ended Dec. 31, 2006, compared with a net income of THB1,633,627,542.87 on total revenues of THB1,041,906,119.11 for the year ended Dec. 31, 2005. Asia Hotel's consolidated balance sheets as of Dec. 31, 2006, showed total assets of THB4,212,348,068.60 and total liabilities of THB3,228,890,395.96, resulting to a shareholders' equity of THB983,457,672.64. As of end-December 2006, Asia Hotel's consolidated balance sheets reflected strained liquidity with THB220,683,144.02 of current assets available to pay THB283,924,342.42 of current liabilities coming due within the next 12 months. A full-text copy of Asia Hotel PCL's consolidated financial statements for the year ended Dec. 31, 2006, can be viewed for free at: http://bankrupt.com/misc/ASIAE2.xls About Asia Hotel Headquartered in Bangkok, Thailand, Asia Hotel Public Company Limited -- http://www.asiahotel.co.th/-- was incorporated on March 24, 1964, and has been publicly listed since 1989. The Company and its two subsidiaries, Asia Pattaya Hotel Company Limited and Asia Airport Hotel Company Limited, are involved in the hotel business, with its principal activities consisting of room service and operating restaurants. Another subsidiary, Zeer Property Company Limited is primarily involved in the construction and the building of shopping complexes. Going Concern Doubt Atipong AtipongSakul of ANS Audit Co., Ltd., the company's independent auditors, raised significant doubt on Asia Hotel's ability to continue as a going concern after auditing the company's financials for the quarter ended Sept. 30, 2006. Mr. Atipong said that the financial position and going concern, the consolidated financial statements and the financial statements of the company for the quarter ended Sept. 30, 2006, showed accumulated deficit of THB1.11 billion. BANGKOK RUBBER: Ernst & Young Expresses Going Concern Doubt ----------------------------------------------------------- Sophon Permsirivallop, of Ernst & Young Office Limited, after reviewing Bangkok Rubber Public Company Limited's consolidated financial statements for the year ended Dec. 31, 2006, said that the ability of the company to continue its business depends on the success of its rehabilitation plan, its ability to find additional funds, and on the outcome of its operations. This prompted the auditor to express substantial doubt on the ability of Bangkok Rubber to continue as a going concern. Bangkok Rubber posted a consolidated net income of THB47.42 million on total revenues of THB5.79 billion for the year ended Dec. 31, 2006, a turnaround from a net loss of THB45.04 million as of Dec. 31, 2005. As of end-December 2006, Bangkok Rubber's balance sheets showed strained liquidity with current assets of THB1.60 billion available to pay current liabilities of THB3.34 billion. Bangkok Rubber's consolidated balance sheets as of Dec. 31, 2006, showed total assets of THB2.87 billion and total liabilities of THB5.22 billion, resulting in a capital deficit of THB2.35 billion. A full-text copy of Bangkok Rubber PCL's consolidated financial statements for the year ended Dec. 31, 2006, can be viewed for free at: http://bankrupt.com/misc/BRCE2.xls About Bangkok Rubber Headquartered in Bangkok, Thailand, Bangkok Rubber Public Company Limited -- http://www.pan-group.com/-- manufactures shoes and footwear under Pan, Kodomo, Diadora, and Heel Care brand names. On November 21, 2002, the Central Bankruptcy Court approved the Company's rehabilitation plan. The Company is in the process of implementing this plan. The significant debt restructuring measures under the rehabilitation plan provide that creditors would waive their rights to claim for outstanding interest accrued up to the date on which the court ordered rehabilitation. This does not include the debt to be repaid to creditors supporting revolving credit and financial creditors, which will receive repayment of debt as per the existing contract and agreement. Furthermore, the Company notified the creditors of the postponement of debt payment under the rehabilitation plan because the Company's operation results were not in line with projection. At present, the Company is held to be in default of debt payment under the rehabilitation plan and is currently revising the plan for submission to the official receiver. Currently, the Company is listed under the "Non-Performing Group" sector of the Stock Exchange of Thailand. BANK OF AYUDHYA: Posts Assets and Liabilities as of February '07 ---------------------------------------------------------------- In a disclosure with the Stock Exchange of Thailand on Mar. 21, 2007, Bank Of Ayudhya PCL submitted a summary of its assets and liabilities as Feb. 28, 2007: Bank Of Ayudhya Public Company Ltd. Summary Statement of Assets and Liabilities As of February 28, 2007 Assets THB Cash 15,241,380,153.77 Interbank and money market items 82,766,908,458.55 Securities purchased under resale agreements 16,100,000,000.00 Investments in securities, net (with obligations THB510,572,109.33) 84,303,844,640.76 Credit advances (net of allowance for doubtful accounts) 440,618,693,154.03 Accrued interest receivables 2,074,712,559.97 Properties foreclosed 15,546,393,684.43 Customers ' liabilities under acceptances 1,991,897,468.20 Premises and equipment, net 15,352,101,081.67 Other assets 7,183,962,519.58 --------------------- Total Assets THB681,179,893,720.96 ===================== Customers' liabilities under unmatured bills 1,674,598,488.28 --------------------- Total THB682,854,492,209.24 ===================== Liabilities THB Deposits 558,384,855,192.79 Interbank and money Market items 18,603,258,223.90 Liabilities payable on demand 1,633,212,864.52 Securities sold under repurchase agreements 0.00 Borrowings 18,198,655,024.63 Bank's liabilities under acceptances 1,991,897,468.20 Other liabilities 10,602,689,223.76 --------------------- Total liabilities THB609,414,567,997.80 ===================== Shareholders' Equity Paid - up share capital (registered share capital THB70,893,927,550.00) 47,949,294,760.00 Reserves and net profit after appropriation 18,794,318,610.61 Other reserves and profit and loss account 5,021,712,352.55 --------------------- Total shareholders' Equity THB71,765,325,723.16 ===================== Total Liabilities and Shareholders'Equity 681,179,893,720.96 Bank 's liabilities under unmatured bills 1,674,598,488.28 --------------------- Total THB682,854,492,209.24 ===================== About The Bank of Ayudhya PCL Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. The Troubled Company Reporter - Asia Pacific reported on Jan. 16, 2007, that Fitch Ratings upgraded Bank of Ayudhya's: * Long-term foreign currency Issuer Default rating to BBB- from BB+; * Short-term foreign currency to F3 from B; * Foreign currency subordinated debt rating to BB+ from BB; and * Individual rating to C/D from D. Fitch also affirmed the bank's Support ratings at 3. At the same time, Moody's Investors Service upgraded the Bank of Ayudhya's bank financial strength rating to "D-" from "E+". TOTAL ACCESS: To Apply for Stock Listing; IPO To Raise THB7 Bil. ---------------------------------------------------------------- Total Access Communication (DTAC) announced its plan for an initial public offering that would raise THB7 billion, and is tentatively set to list on the Stock Exchange of Thailand in the second quarter, The Nation reports. The report states that DTAC would become the first Thai company with dual listings since having been traded on the Singapore Exchange since 1995. The report says that DTAC shares -- although not with the biggest market capitalization -- is expected to be the biggest stock seeking listing on the SET since 2003, making it as one of the top 20 stocks with the highest market cap. The report states that DTAC is waiting for the approval of the Finance Ministry and concerned government agencies about its IPO plan. A listing on the SET would allow DTAC to enjoy a corporate tax reduction to 25% from the regular rate of 30% for three financial years. "This is a very significant step for DTAC. Given our improving market share, financial strength and strong growth potential, it's the right time to share ownership of our company with local investors. This transaction shows our confidence not only in the bright prospects for DTAC but also for Thailand as a whole," The Nation quotes DTAC Chief Executive Officer Sigve Brekke. The Bangkok Post says that under the plan, parent company United Communication Industry (Ucom) will be delisted within the third quarter. DTAC will then experience a 1:5 par split, with a public offering of 222 million shares at THB2 to THB10 per share. The Nation adds that of the 222 million shares, 88 million will be newly issued shares while 140 million shares will be held by Ucom. Ucom shareholders will receive 1.95 shares of DTAC for every share held. The Bangkok Post says that DTAC will then tender for all shares of Ucom in exchange for newly issued DTAC shares, making Ucom a delisted subsidiary of DTAC. According to The Nation, Securities and Exchange Commission Secretary-General Thirachai Phuvanart-naranubala said that IPO applications have been few and far in between due to capital- control measures and amendments to the Foreign Business Act as well as the country's political and economic situation. The report says that Mr. Sigve believes that DTAC's listing would benefit the SET's market capitalization. The Bangkok Post, citing Mr. Sigve, says that DTAC plans to use the proceeds from the IPO to settle Ucom's THB3.8 billion debt, with the rest to spend for mobile network expansion. The Nation states that DTAC plans to spend around THB3 billion on network investments, while allocating THB12 billion on network rollouts and upgrades this year. The report says that Mr. Sigve sees the Council of State's probe into the compliance all private telecom operators' concessions with the law as a major hindrance to DTAC's IPO plan. The report states that when necessary, DTAC is willing to revise its IPO plan so as to comply with the law. About Total Access Communications, DTAC Total Access Communications, DTAC -- http://www.dtac.co.th/-- is the second-largest cellular operator in Thailand with an approximately 30% market share and strong brand recognition. With Telenor's recent purchase of a 39.9% interest in United Communication Industry Plc and its subsequent tender offers for UCOM and DTAC shares, Telenor lifted its aggregate economic interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest acquisition in Asia and it ranks second in terms of EBITDA contribution outside Norway. Standard and Poor's gave the Company a BB+ Long-term local and foreign issuer credit ratings. DTAC's local and foreign issuer credit were both given a Ba1 rating by Moody's Investor Service. On Jan. 12, 2007, Fitch Ratings affirmed the ratings of Total Access Communication following the proposed amendments to Thailand's Foreign Business Act. -- Long-term foreign currency Issuer Default rating at BB+; -- National Long-term rating at A(tha); -- National Short-term rating at F2(tha); and -- National senior unsecured rating at A(tha). The Outlook on DTAC's ratings is Stable. ============= V I E T N A M ============= * Fitch Affirms Ratings for Socialist Republic of Vietnam --------------------------------------------------------- On March 20, 2007, Fitch Ratings affirmed the Long-term foreign and local currency Issuer Default ratings of the Socialist Republic of Vietnam at 'BB-' and 'BB', respectively. At the same time, the agency also affirmed the Short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. The Outlook on the ratings remains Stable. Despite weak public finances and the need for further banking system reforms, Vietnam's improving external financial position and sustainable economic growth continue to support its sovereign ratings. "Vietnam's rating strengths are based on the country's net external creditor status and declining gross external debt relative to GDP," said Vincent Ho, associate director of Fitch's Asia Sovereign Ratings team in Hong Kong. "Continuous fiscal deficits, rising general government debt relative to GDP and the vulnerable banking system remain the major rating constraints," Mr. Ho added. Vietnam's strong external sector performance has allowed for a steady accumulation of foreign exchange reserves. Relative to reserves, the country's gross external financing requirement and international liquidity ratios are stronger than the 'BB' peer group median. The increase in reserves has been driven mainly by private remittances and net foreign direct investment inflows. In addition, gross external debt fell to about 30% of GDP in 2006, which was the lowest for the past decade. For the first time, Vietnam became a net external creditor in 2006 and Fitch expects this to be sustained in the medium-term. The country's "renovation" policy towards a market-based economy has proven to be a success. During 1996-2006, the average economic growth rate was 7.3% per annum, which was second only to China in the region. Strong growth and the country's favourable investment climate have been attracting large FDI capital inflows. In 2006 FDI inflows were estimated at US$2.4 billion. With its accession to the WTO, Fitch believes Vietnam's external sector will continue to grow and strengthen its external financial position. The transformation of the Development Assistance Fund into the Vietnam Development Bank and the introduction of sounder regulations have led to reductions in policy lending activities and the dominance of state-owned commercial banks ("SOCBs"). For the system as a whole, non-performing loans relative to total loans have been falling. Even so, SOCBs still account for 75% of system assets, and limited foreign participation suggests the evolution towards a more internationally competitive banking system will take time. Fitch believes the equitisation of the SOCBs could help to expedite the needed changes. In addition to the weaknesses in the banking system, continuous general government fiscal deficits (including grants, off-budget investments and on-lending) and rising debt relative to GDP are major rating constraints. Owing to higher oil prices and oil- related fiscal revenue, the country's general government fiscal deficit narrowed to 5.3% of GDP (worse than the 'BB' median of 2.8%) in 2006 from 5.9% in 2005. Fitch expects deficits equivalent to more than 7% of GDP in 2007-2008 due to lower oil prices and the steady increase in public infrastructure investments, both on- and off-budget. General government debt rose to 37.2% of GDP in 2006 and Fitch forecasts further increases in 2007-2008, reaching 41.4% of GDP. "While this upward trend is not unique in the 'BB' peer group of 21 sovereigns, it is in the minority, as only two other sovereigns, Guatemala (rated 'BB+') and Venezuela (rated 'BB-' (BB minus)) have similar debt dynamics," Mr. Ho said. Fitch forecasts that the rising general government debt-to-GDP ratio will be reflected in increasing domestic debt issuance, which could be a local currency rating concern if the trend continues. ********* 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, 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 ***