/raid1/www/Hosts/bankrupt/TCRAP_Public/070419.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, April 19, 2007, Vol. 10, No. 77
Headlines
A U S T R A L I A
AMERICAN GREETINGS: Net Profit Down by Half to US$42.4 Million
AMERICAN GREETINGS: Board OKs US$100MM Share Repurchase Program
ARVINMERITOR INC: Names T. Kindem as Sales & Marketing Director
C H I N A & H O N G K O N G
CITIC BANK: Mizuho Confirms Planned HK$400 Million Investment
PORTOLA PACKAGING: Feb. 28 Balance Sheet Upside-Down by US$91MM
TCL MULTIMEDIA: Reform Costs to Cause Heavy Loss in 4th Quarter
I N D I A
BPL LTD: Bank of Rajasthan Blocks Restructuring Plan
PUNJAB NATIONAL BANK: Hikes Prime Lending Rate to 13%
SAURASHTRA CEMENT: Transasia Transfers 9.69% Stake to Sampson
UTI BANK: Profits Climb 40%; Board Recommends INR4.50 Dividend
I N D O N E S I A
ANIXTER INTERNATIONAL: To Register US$300MM Sr. Convert. Notes
BANK INTERNASIONAL: To Issue More Than IDR1 Trillion in Bonds
BANK NEGARA: Restructures IDR4.95 Trillion of Bad Debts
BANK NEGARA: Net Profit Increases 36% Due to Restructuring
FOSTER WHEELER: Milan Unit Adds New Gasifier to ERG Refinery
FREEPORT-MCMORAN: Workers Hold Protest Rally in Indonesia
GOODYEAR TIRE: To Report First Quarter 2007 Earnings on April 27
NORTEL NETWORKS: Board Declares Preferred Share Dividends
NORTEL NETWORKS: To Provide Hosted IP Telephony to TELMEX
PERTAMINA: Unit Partners With Wika to Set Up Biodiesel Plant
TELKOM INDONESIA: Wins US$1.3MM Contract for Satellite Leasing
TELKOM: Director Arief Yahya Visits Timor-Leste President
J A P A N
BECKMAN COULTER: Clears U.S. Waiting Period for Biosite Purchase
COSMO OIL: Fourth Fiscal Quarter Profit Falls 50%
KOBE STEEL: To Launch System to Store Waste Heat
MIZUHO FINANCIAL: Unit to Invest JPY6 Billion in China CITIC
K O R E A
GENERAL MOTORS: South Korean Unit Becomes Major Contributor
HYUNDAI MOTOR: Fair Trade Vice-Chairman Calls Firm a Monopoly
HYUNDAI MOTOR: Building New Automobile Plant in Nosovice
JINRO LIMITED: Aims for 55.3% of South Korea's Soju Market
KOREA EXPRESS: Invests KRW52 Billion in Buying Equity Stakes
M A L A Y S I A
MALAYSIA AIRLINES: May Take Back AirAsia's Rural Flights
SATERAS RESOURCES: Court Orders Stay on Wind-Up Order Execution
TENAGA NASIONAL: Analysts Expect Earnings to Soar in 2nd Quarter
UNITED CHEMICAL: End-March Loan Default Reaches MYR10.57 Million
N E W Z E A L A N D
CONNEXIONZ LIMITED: Says Sign Up Delays Will Hold Up Results
CONNEXIONZ LIMITED: Bags US$492,000 Charlottesville Contract
P H I L I P P I N E S
BANCO DE ORO: Net Income Rises 23% to PHP3.1 Billion for 2006
BANKARD INC: Net Loss Widens to PHP597.6 Million in 2006
FILSYN CORP: Sycip Gorres Velayo Raises Significant Doubt
METROPOLITAN BANK: Sets Annual General Meeting for May 2
S I N G A P O R E
PETROLEO BRASILEIRO: Oilrigs P-52 & P-54 Will be Ready in July
SEA CONTAINERS: Services' Panel Hires Kroll as Financial Advisor
SEA CONTAINERS: Services' Panel Hires Willkie Farr as Counsel
SPECTRUM BRANDS: 8-1/2% Senior Notes Exchange Offer Expires
T H A I L A N D
BANGKOK BANK: Shareholders Approve Bond Issuance & Dividends
BANK OF AYUDHYA: Increases Investment in Ayudhya Dev't Leasing
BANK OF AYUDHYA: Shareholders Okay Reserve & Dividend Payment
BANK OF AYUDHYA: SET Allows Trading of New Securities
ITV PCL: PriceWaterhouseCoopers Raises Going Concern Doubt
ITV PCL: Has Two Years to Complete Rehabilitation
UNITED OVERSEAS (THAI): Earns THB601.18 Million in 2006
- - - - - - - -
=================
A U S T R A L I A
=================
AMERICAN GREETINGS: Net Profit Down by Half to US$42.4 Million
--------------------------------------------------------------
American Greetings Corp. reported US$42.4 million net profit on
US$1.7 billion net sales for the full year ended Feb. 28, 2007,
compared with US$84.4 million net profit on US$1.9 billion net
sales for the year ended Feb. 28, 2006.
The company posted a US$12.2 million net loss on US$472.8
million net sales for the fourth quarter ended Feb. 28, 2007,
compared with US$41.8 million net profit on US$507.4 million net
sales for the fourth quarter ended Feb. 28, 2006.
"I am pleased that we continued to execute against our goal of
improving the return on capital employed and generating strong
cash flow," Zev Weiss, Chief Executive Officer, said. "We
generated cash flow from operating activities less capital
expenditures of US$225 million, well above our initial estimates
and even beyond our December guidance."
Outlook for Fiscal Year 2007-2008
"For fiscal year 2008, we are projecting earnings per share
between US$1.35 and US$1.55," Mr. Weiss said. "I am looking
forward to improved earnings as a large portion of the
investments in our strategic card initiative is now behind us.
In addition, we are able to continue returning capital to our
shareholders by repurchasing shares and increasing the
dividend."
As of Feb. 28, 2007, American Greetings had US$1.7 billion in
total assets, US$736 million in total liabilities and
US$1 billion in total shareholders' equity.
About American Greetings
Headquartered in Cleveland, Ohio, American Greetings Corp.
(NYSE: AM) -- http://corporate.americangreetings.com/--
manufactures social expression products. American Greetings
also manufactures and sells greeting cards, gift wrap, party
goods, candles, balloons, stationery and giftware throughout the
world, primarily in Canada, the United Kingdom, Mexico,
Australia, New Zealand and South Africa.
* * *
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. consumer products sector, the rating
agency confirmed its Ba1 Corporate Family Rating for American
Greetings Corporation.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$300-million
sr. sec delay
draw term loan
due 2013 Ba1 Baa3 LGD2 28%
US$350-million
senior secured
revolving credit
facility due 2011 Ba1 Baa3 LGD2 28%
US$200-million
senior unsecured
notes due 2016 Ba2 Ba2 LGD5 81%
US$22.7-million
senior unsecured
notes due 2028 Ba2 Ba2 LGD5 81%
AMERICAN GREETINGS: Board OKs US$100MM Share Repurchase Program
---------------------------------------------------------------
The Board of Directors of American Greetings Corp. authorized a
new US$100-million share repurchase program as well as a 25%
increase in its quarterly cash dividend from US$0.08 per share
to US$0.10 per share.
The share repurchases will be made through a 10b5-1 program in
open market or privately negotiated transactions in compliance
with the United States Securities and Exchange Commission's Rule
10b-18, subject to market conditions, applicable legal
requirements and other factors.
The increased dividend will be paid on May 14, 2007, to
shareholders of record at the close of business on May 2, 2007.
About American Greetings
Headquartered in Cleveland, Ohio, American Greetings Corp.
(NYSE: AM) -- http://corporate.americangreetings.com/--
manufactures social expression products. American Greetings
also manufactures and sells greeting cards, gift wrap, party
goods, candles, balloons, stationery and giftware throughout the
world, primarily in Canada, the United Kingdom, Mexico,
Australia, New Zealand and South Africa.
* * *
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. consumer products sector, the rating
agency confirmed its Ba1 Corporate Family Rating for American
Greetings Corporation.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$300-million
sr. sec delay
draw term loan
due 2013 Ba1 Baa3 LGD2 28%
US$350-million
senior secured
revolving credit
facility due 2011 Ba1 Baa3 LGD2 28%
US$200-million
senior unsecured
notes due 2016 Ba2 Ba2 LGD5 81%
US$22.7-million
senior unsecured
notes due 2028 Ba2 Ba2 LGD5 81%
ARVINMERITOR INC: Names T. Kindem as Sales & Marketing Director
---------------------------------------------------------------
ArvinMeritor Inc. has appointed Todd Kindem as director of
Commercial Vehicle Aftermarket's Sales and Marketing-North
America.
Mr. Kindem is responsible for leading ArvinMeritor's Aftermarket
North American sales and marketing teams including the strategic
sales growth. His responsibilities will include the business'
increased efforts in supplying a larger portfolio of
remanufactured components.
"Todd's extensive background and track record in the
aftermarket, combined with his market and customer knowledge,
will be a real plus for our growing business here in North
America," said Joe Mejaly, vice president and general manager of
CVA.
Prior to joining ArvinMeritor, Mr. Kindem was most recently the
director Global Sales, Heavy Vehicle with Dana Corp.'s Heavy
Vehicle Technologies and Systems Service business unit. He has
held a variety of management positions at Eaton Corp. and Dana
Corp., with increasing levels of responsibility for the
companies' aftermarket businesses. Mr. Kindem also worked in
management roles for Horton Industries and Phillips Temro
Division of The Budd Co.
Mr. Kindem will be located in CVA's Florence, Ky., Parts
Distribution Center and executive offices.
ArvinMeritor's Commercial Vehicle Aftermarket group offers
replacement parts for the company's braking systems, drive
axles, trailer axles and suspension products in North America
and in Europe. Distributed under the Meritor and Euclid brands,
ArvinMeritor's aftermarket parts are precision engineered to
original equipment specifications and carry the industry's best
aftermarket warranty.
About ArvinMeritor Inc.
Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier US$8.8
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry. The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets. ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others. ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.
* * *
In February 2007, Dominion Bond Rating Service assigned a rating
of BB (low) to the US$175 million Convertible Senior Unsecured
Notes of ArvinMeritor Inc. The trend is Stable.
In the same month, Moody's Investors Service downgraded
ArvinMeritor's Corporate Family Rating to Ba3 from Ba2. Ratings
on the company's secured bank obligations and unsecured notes
were lowered one notch as a result.
Ratings lowered:
ArvinMeritor Inc.
-- Corporate Family Rating to Ba3 from Ba2
-- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
LGD-2, 18%
-- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
LGD-4, 64%
-- Probability of Default to Ba3 from Ba2
-- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
LGD-4, 64%
Arvin Capital I
-- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%
Arvin International PLC
-- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
LGD-4, 65% from Ba3, LGD-4, 64%
Ratings affirmed:
ArvinMeritor Inc.
-- Speculative Grade Liquidity rating, SGL-2
================================
C H I N A & H O N G K O N G
================================
CITIC BANK: Mizuho Confirms Planned HK$400 Million Investment
-------------------------------------------------------------
Mizuho Corporate Bank will invest up to HK$400 million in China
CITIC Bank, by taking a portion of the bank's dual offering of
new shares, as part of its expansion into the Chinese market,
Japan Times reports.
The acquisition price and the number of shares to be acquired
have yet to be determined, the report adds, citing the Japanese
firm's statement.
The Troubled Company Reporter - Asia Pacific on April 11, 2007,
reported that China CITIC Bank has begun taking orders from
institutions en route to its Hong Kong and Shanghai float.
The TCR-AP in the report cited Reuters as saying PICC and China
Life, Japan's Mizuho group, and China's social welfare fund
aimed to buy a collective US$205 million of stock in China
CITIC.
Japan Times, citing an industry source, says that the move is
expected to help Mizuho Corporate expand its services for
Japanese companies entering the Chinese market.
* * *
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.
PORTOLA PACKAGING: Feb. 28 Balance Sheet Upside-Down by US$91MM
---------------------------------------------------------------
Portola Packaging Inc. reported a net loss of US$3.3 million for
the second quarter ended Feb. 28, 2007. This compares with a
net loss of US$3.9 million for the second quarter of fiscal year
2006. Portola reported sales of US$63.7 million for the second
quarter of fiscal year 2007 compared to sales of US$63.4 million
for the second quarter of fiscal year 2006, an increase of 0.5%.
Portola reported operating income of US$2.4 million for the
second quarter of fiscal year 2007, compared to operating income
of US$1.2 million for the second quarter of fiscal year 2006, an
increase of 100.0%.
Improvements in operating income of US$1.2 million for the
second quarter of fiscal 2007 versus the second quarter of
fiscal 2006 were mainly the result of lower selling, general and
administration spending in 2007 and the non-recurring patent
litigation settlement costs of US$1.5 million recorded in fiscal
year 2006. These cost reduction activities were offset in part
by the gain on sale of fixed assets of US$632,000 recorded last
year.
EBITDA decreased US$200,000 or 3.5% to US$5.5 million in the
second quarter of fiscal year 2007 compared to US$5.7 million in
the second quarter of fiscal year 2006.
Adjusted EBITDA, which excludes the effect of restructuring
charges, gains or losses on the sale of assets and costs
relating to the dissolution of the company's Management Deferred
Compensation Plan, decreased US$1.1 million or 16.4% to US$5.6
million in the second quarter of fiscal year 2007 compared to
US$6.7 million in the second quarter of fiscal year 2006.
The US$1.1 million decrease in Adjusted EBITDA was driven
primarily by a change of US$1 million in foreign exchange versus
the same quarter last year. The company reported a foreign
exchange loss of US$300,000 for the second quarter of fiscal
year 2007 as compared to a US$700,000 gain reported in the
second quarter of fiscal 2006.
Additionally, Adjusted EBITDA was negatively affected by
increases over the prior year of US$300,000 in expense for the
second quarter of fiscal 2007 related to customer conversions
for newly acquired business. These conversion costs are a one
time expense of equipment installed in customer facilities to
allow them to transition their closure business to Portola.
Liquidity and Capital Resources
At Feb. 28, 2007, the company had cash and cash equivalents,
including restricted cash, of US$3.3 million, an increase of
US$700,000 from Aug. 31, 2006.
Cash provided by operations decreased US$900,000 to US$2.8
million for the six months ended Feb. 28, 2007, from cash
provided by operations of US$3.7 million for the six months
ended Feb. 28, 2006. The decrease in cash provided by
operations is due to a reduction in legal and general accruals
and a decrease in cash provided by accounts receivable as
compared to the previous period. Offsetting these reductions
was slower growth in inventory compared to the prior period and
improved financial performance related to employee cost
reductions programs, productivity enhancements and other cost
reduction activities.
Cash used in investing activities increased to US$8.3 million
for the six months ended Feb. 28, 2007, compared to cash
provided by investing activities of US$10,000 for the six months
ended Feb. 28, 2006, primarily due to additions to property,
plant and equipment.
At Feb. 28, 2007, the company had total indebtedness of US$211.3
million, US$180 million of which was attributable to the Senior
Notes that mature on Feb. 1, 2012. The remaining indebtedness
of US$31.3 million was attributable to the five year senior
revolving credit facility of up to US$60 million, maturing of
Jan. 23, 2009.
At Feb. 28, 2007, the company's balance sheet showed US$154.5
million in total assets and US$245.9 million in total
liabilities, resulting in a US$91.4 million total stockholders'
deficit.
Full-text copies of the company's consolidated financial
statements for the quarter ended Feb. 28, 2007, are available
for free at http://researcharchives.com/t/s?1d3e
About Portola Packaging
Portola Packaging Inc. -- http://www.portpack.com/-- designs,
manufactures and markets tamper evident plastic closures used in
dairy, fruit juice, bottled water, sports drinks, institutional
food products and other non-carbonated beverage products. The
company also produces a wide variety of plastic bottles for use
in the dairy, water and juice industries, including various high
density bottles, as well as five-gallon polycarbonate water
bottles. In addition, the company designs, manufactures and
markets capping equipment for use in high speed bottling,
filling and packaging production lines. The company is also
engaged in the manufacture and sale of tooling and molds used in
the blow molding industry. The company has locations in China,
Mexico and Belgium.
* * *
The Troubled Company Reporter - Asia Pacific reported that
Moody's Investors Service changed the outlook for the ratings of
Portola Packaging, Inc. to stable from negative and concurrently
affirmed existing ratings including the Caa1 Corporate Family
Rating.
TCL MULTIMEDIA: Reform Costs to Cause Heavy Loss in 4th Quarter
---------------------------------------------------------------
TCL Multimedia Technology Holdings Ltd. warned its shareholders
and investors of a "worse than expected" result in the fourth
quarter ended Dec. 31, 2006, due to restructuring costs and
weakness in its emerging-market operations.
In a disclosure with the Hong Kong Stock Exchange, the company
said that its board of directors earlier expected to improve its
fourth quarter results, but the overall costs and expenses for
restructuring and winding down its European operations far
exceeded its previous estimation.
Accordingly, the statement added, the group will continue to
record a substantial loss for the fourth quarter of 2006.
Karen Luk, writing for The Wall Street Journal, notes however
that the company did not specify whether the forecast is on a
pretax or net basis.
TCL Multimedia will announce full-year 2006 results by April 27.
* * *
Headquartered in New Territories, Hong Kong, TCL Multimedia
Technology Holdings Limited -- http://www.tclhk.com/-- designs,
manufactures and sells electronic products like colored TV, DVD
players, VCD players, home cinema hi-fi systems, mobile
handsets, Internet-related information technology products,
refrigerators and washing machines. Its other activity includes
trading electronic parts and components used in the production
of color television sets.
* * *
On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific
reported that the company posted CNY763 million losses of TCL
Multimedia Technology Holdings Limited's European operations,
which caused losses of the TCL Corp. group to widen to CNY737.56
million.
Moreover, the TCR-AP on Oct. 24, 2006, said that TCL is
expecting to post a loss for the full-year because first-half
losses had been so large. In the first half of this year, TCL
reported a net loss of CNY737.56 million, after a loss of
CNY320.24 million for 2005.
The TCR-AP recounts that in 2004, TCL acquired the TV unit of
French electronics firm Thomson, which uses the Thomson brand in
Europe and RCA in North America. TCL grouped all its TV
businesses under TMT.
=========
I N D I A
=========
BPL LTD: Bank of Rajasthan Blocks Restructuring Plan
----------------------------------------------------
Bank of Rajasthan filed a petition asking the Supreme Court to
block the financial restructuring plan of BPL Limited following
Kerala High Court's approval of the company's plan last year,
Business Standard reports.
Bank of Rajasthan is BPL's secured creditor. The bank, which is
represented by its counsel Shyam Diwan and Hemant Singh,
contended that BPL was capable of paying the debt of INR1,550
crore and the restructuring was a fraud to avoid paying back
debts to creditors.
According to the report, Bank of Rajasthan argued that BPL was
not able to satisfactorily explain discrepancies in the balance
sheet, among others. The bank further argued that the proposed
restructuring was submitted with the intention to protect the
interest of ICICI Bank and other secured creditors allegedly
acting in connivance with BPL. The bank also questioned BPL's
joint venture with Sanyo Electric.
About BPL Limited
Headquartered in Bangalore, India, BPL Limited manufactures and
distributes consumer electronic products such as televisions,
video tape recorder, audio systems, emergency lanterns,
electrocardiographs and monitors. The Group also manufactures
home appliances like washing machines, refrigerators, vacuum
cleaners, microwave ovens, gas tables, soft energy and consumer
telecom products. Its plants are located at Kerala, Karnataka
and Uttar Pradesh. The Group operates in India.
Last year, the Company obtained approval from the Kerala High
Court for its financial restructuring scheme and the launch of
the 50:50 joint venture with Sanyo for the CTV business. The
restructuring has allowed BPL to focus and strategize on its
core businesses like mobile phones, entertainment electronics,
medical electronics, engineering plastics and tooling for
automotive and consumer electronics industry. As a part of the
restructuring exercise, BPL had recently sold off its dry cell
business -- which operated through its subsidiary BPL Soft
Energy Systems -- in a INR67 crore deal including liabilities to
the Khaitans of Eveready Industries.
* * *
On January 5, 2006, CRISIL Ratings reaffirmed the 'D' and 'FD'
ratings on BPL Limited's non-convertible and fixed deposit
programmes. The ratings indicate that the company continues to
be in default on its rated debt.
PUNJAB NATIONAL BANK: Hikes Prime Lending Rate to 13%
-----------------------------------------------------
Punjab National Bank has increased its Benchmark Prime Lending
Rate by 75 basis points from 12.25% p.a. to 13.00% p.a., the
bank informed the Bombay Stock Exchange in a regulatory filing.
The move came after the Reserve Bank of India decided to
increase short-term lending rate to 7.75% and cash reserve ratio
to 6.5%.
The increase took effect on April 16, 2007.
The bank's board of directors will consider increasing home loan
rates at its next meeting, which is yet to be scheduled, the
Press Trust of India reports citing Chief General Manager U. S.
Bhargava.
In a separate BSE filing, the bank disclosed that it will
finalize and publish its audited annual accounts within the
stipulated period of three months of closure of the financial
year ended March 31, 2007. The bank doesn't plan to publish its
unaudited financial results for the last quarter of the
financial year.
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.
SAURASHTRA CEMENT: Transasia Transfers 9.69% Stake to Sampson
-------------------------------------------------------------
Transasia Investment & Trading Ltd transferred 4,000,000 shares
representing 9.69% of the total equity in Saurashtra Cement Ltd.
to Samson Ltd., a filing with the Bombay Stock Exchange dated
April 16, reveals.
The off-market transaction decreased Transasia's hold in the
company from 29.07%, or 12,000,000 shares, to 19.38% or
8,000,000 shares.
The flagship company of The Mehta Group, Saurashtra Cement Ltd.
-- http://www.mehtagroup.com/scement.htm-- manufactures and
exports cement including Ordinary Portland Cement, Pozzolana
Portland Cement, Sulphate Resistant Cement and Portland Slag
Cement. SCL markets cement under the brand name "HATHI CEMENT".
The company also exports clinker.
On Dec. 9, 2006, Credit Rating Information Services of India Ltd
changed the outstanding rating of Saurashtra Cement's
INR477.6-million Non-Convertible Debenture Issue from 'D' to
'Not Meaningful.' The revision followed the company's
registration in the Board of Industrial and Financial
Reconstruction as a Sick Industrial Company pursuant to the
SIC (SP) Act, 1985.
Saurashtra Cement is currently restructuring its debts. Its
proposal for restructuring under the Corporate Debt
Restructuring Mechanism was approved through the letters issued
by CDR Cell on Dec. 26, 2005, and Feb. 17, 2006.
UTI BANK: Profits Climb 40%; Board Recommends INR4.50 Dividend
--------------------------------------------------------------
UTI Bank Ltd posted a net profit of INR2.12 billion for the
quarter ended March 31, 2007, a 40% increase from the INR1.52
billion profit for the quarter ended March 31, 2006.
The income for the latest quarter under review totaled INR16.68
billion compared to the INR10.61 billion recorded in the
corresponding quarter last year.
A copy of the bank's unaudited financial results for the quarter
ended March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1d73
The bank has gained a net profit of INR6.59 billion for the year
ended March 31, 2007, on total income of INR55.703 billion. The
net profit for FY2006-07 is a 36% improvement from the
INR4.85-billion profit posted in the year ended March 31, 2006.
A copy of the bank's audited financial results for the year
ended March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1d72
The bank informed the Bombay Stock Exchange that its board of
directors has recommended a dividend of INR4.50 per share (45%)
for the year ended March 31, 2007, previous year INR3.50 per
share (35%), subject to approval of the ensuing Annual General
Meeting of the Company.
Headquartered in Ahmedabad, India, UTI Bank Limited --
http://www.utibank.com/-- is engaged in treasury and other
banking operations. The treasury services segment undertakes
trading operations on the proprietary account, foreign exchange
operations and derivatives trading. Revenues of the treasury
services segment primarily consist of fees and gains or losses
from trading operations and interest income on the investment
portfolio. Other banking operations principally comprise the
lending activities (corporate and retail) of the bank. The
corporate lending activity includes providing loans and
transaction services to corporate and institutional customers.
The retail lending activity includes raising of deposits from
customers and providing loans and advisory services to customers
through branch network and other delivery channels. Total
deposits were INR31,712 crore at March 31, 2006.
* * *
On November 6, 2006, Moody's Investors Service assigned a Ba1
rating to the foreign currency perpetual non-cumulative
subordinated debt to be issued by UTI Bank's Singapore branch
under its US$1-billion Medium Term Note program.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 1, 2006, that Standard & Poor's Ratings Services maintained
its 'C' bank fundamental strength rating to the bank.
Another TCR-AP report on July 26, 2006, related that Fitch
Ratings assigned an individual rating of C/D to UTI Bank. The
outlook on the rating is stable.
==================
I N D O N E S I A
==================
ANIXTER INTERNATIONAL: To Register US$300MM Sr. Convert. Notes
--------------------------------------------------------------
Anixter International Inc. intends to register under the
Securities Act of 1933 up to US$300 million principal amount of
1% Senior Convertible Notes due 2013 and shares of Anixter
common stock issuable upon conversion of the Notes for resale by
certain selling security holders. The Notes were originally
issued on Feb. 16, 2007, in a private placement. Anixter
currently expects to file the registration statement on or prior
to May 17, 2007. Anixter will not receive any proceeds from the
sale of the Notes or the common stock by the selling security
holders.
The Notes and the shares of Anixter common stock issuable upon
conversion have not been registered under the Securities Act or
the securities laws of any other jurisdiction and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
About Anixter
Anixter International Inc. -- http://www.anixter.com/-- is the
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.
The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5.0 million square feet of space, and has presence in 220
cities in 45 countries, including Indonesia, Australia, China,
Hong Kong, India, Malaysia, New Zealand, the Philippines,
Singapore, Taiwan, and Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 19, 2007, that Moody's Investors Service downgraded Anixter
International Inc.'s corporate family rating to Ba2 from Ba1.
In a related rating action, Moody's lowered the ratings of
Anixter Inc.'s US$200 million guaranteed senior unsecured notes
to Ba1 from Baa3 and Anixter's 3.25% LYON's notes to B1 from
Ba2. The rating outlook was changed to stable from negative.
Fitch Ratings affirmed these ratings for Anixter International
Inc. and its wholly owned operating subsidiary, Anixter Inc.:
Anixter:
-- Issuer Default Rating 'BB+'
-- Senior unsecured debt 'BB-'
AI:
-- Issuer Default Rating 'BB+'
-- Senior unsecured notes 'BB+'
-- Senior unsecured bank credit facility at 'BB+'
Fitch's action affects approximately US$700 million of public
debt securities. The Rating Outlook is Stable.
BANK INTERNASIONAL: To Issue More Than IDR1 Trillion in Bonds
-------------------------------------------------------------
PT Bank Internasional Indonesia Tbk is planning to issue bonds
of more than IDR1 trillion to expand financing diversification
especially infrastructure that requires long-term financing,
Tempo Interactive reports.
BII President Director Henry Ho told Tempo Interactive that the
current interest rate is quite stimulating for companies or
banks to issue bonds. But the bank is hesitant to reveal the
issuance time. "We will observe the chance on the coming half
of the year," Mr. Ho informed Tempo Interactive.
The report also related that shareholders, in their general
meeting on Monday, agreed to share dividends of IDP253 billion
or 40% of the company's net profit of the 2006 fiscal year.
About Bank Internasional
PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/--
engages in general banking services and in other banking
activities based on Syariah principles. The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard. The bank is headquartered in Jakarta,
Indonesia.
With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.
The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service changed the outlook for
Bank Internasional Indonesia Tbk's long-term credit ratings to
positive from stable. The bank's short-term deposit rating
continues to carry a stable outlook while the BFSR remains on
review for possible upgrade.
The bank's detailed ratings are: issuer/subordinated debt of
Ba3/Ba3; foreign currency long-term/short-term deposit of B2/Not
Prime; and bank financial strength of E+.
Another TCR-AP report on Feb. 1, 2007, said that Fitch Ratings
affirmed all the ratings of Bank Internasional as: Long-term
foreign Issuer Default rating 'BB-', Short-term rating 'B',
National Long-term rating 'AA-(idn)'; Individual 'C/D', and
Support '4'. The Outlook for the ratings was revised to
Positive from Stable.
BANK NEGARA: Restructures IDR4.95 Trillion of Bad Debts
-------------------------------------------------------
PT Bank Negara Indonesia (Persero) Tbk has successfully
restructured IDR4.95 trillion of its 378 debtors' non-performing
loans, reducing its gross-NPL for the year Dec. 31, 2006, from
13.7% to 10.47% and improved its net-NPL to 6.55% from 8.36%.
Bank Negara also said that third party funds surged 17.88%
reaching IDR135.99 trillion. Market confidence was also
reflected in the successful subscription of BNI's US$150 million
offshore-syndicated loan last October.
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,
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, that Fitch Ratings affirmed all
these ratings of Bank Negara: 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).
BANK NEGARA: Net Profit Increases 36% Due to Restructuring
----------------------------------------------------------
PT Bank Negara Indonesia (Persero) Tbk's successful
restructuring program resulted in a 36% increase of net profit
to IDR1.93 trillion as of December 31, 2006, compared with
IDR1.42 trillion of the previous year.
The growth in earnings was primarily due to the increase in net
interest income of IDR371 billion to IDR7.377 trillion, as well
as the escalation of non-interest earnings of 22.54% to IDR2.86
trillion. The surge in third party funds had resulted in the
substantial increase in interest expense from IDR5.80 trillion
in 2005 to IDR7.52 trillion in 2006, whereas interest income
increased by 16.15% from IDR12.74 trillion to IDR14.80 trillion.
Consequently, net interest margin was reduced from 5.60% to
5.19% year on year.
Non-interest operational earnings amounted to IDR2.86 trillion.
The highest increase in these earnings originated from
securities and foreign exchange transactions, and followed by
the earnings in banking services, such as ATM, accounts
administration, export-import transactions, bank guarantees as
well as income from card services.
A 12% increase in operational expenses was driven by the rise of
expenses in promotion (16.87%), HRD (10.37%), as well as
administrative and general expenses (4.57%). The increase in
HRD expense was primarily due to the pay rise and the Voluntary
Early Retirement Program that was put into effect in February
2006. Whereas the rise in administrative and general expenses
was particularly resulted from the purchase of equipment,
repairs and the maintenance of assets as well as the increase of
telecommunication bill.
Provisioning expense on earning increased by 4.53% to IDR1.31
trillion with a coverage ratio of 102.29%. Provisioning
undertaken in a consistent manner and in adequate amount, the
coverage of which as stipulated by Bank Indonesia has been
maintained above the 100% level.
Total assets as of December 31, 2006, reached IDR169.42
trillion, an increase of 14.62% from that of the previous year.
This was primarily attributed to the fast growth of third party
funds by 17.8% from IDR115.37 trillion to IDR135.99 trillion.
The increase was distributed among various kind of funds, with
the biggest increases in time deposits (28%), checking accounts
(17%) and savings (6%).
Outstanding credits as of December 31, 2006, amounted to
IDR66.46 trillion, marking an increase of 6.07% from IDR62.66
trillion at year-end 2005, including Sharia financing which had
increased by 35.70% to IDR1.13 trillion at year-end 2006. The
highest growth was attributed to the small and medium
businesses, which grew by 12.2% and 10.5%, respectively.
BNI's current credit composition was in line with its target,
with corporate loans accounting for 41% of total loans, and
commercial and consumer loans at 42% and 15%, respectively. The
remaining 2% went to Sharia financing. Loan expansion in 2006,
which was not parallel with the public funds growth had caused
the LDR to decrease to 49.98% from 54.24% in the previous year.
Financial ratios have shown improvement as compared to the
preceding year. CAR has been maintained at 17.08% level, much
higher than the Bank Indonesia's minimum requirement of 8%.
Whilst ROA and ROE have risen significantly from 1.61% and
12.64% in 2005 to reach 1.85% and 22.40%, respectively, in 2006.
Throughout 2006, BNI undertook various initiatives to accelerate
business growth and improve customer services, through, among
other things, the launch of BNI SMS banking, expanding network,
forming alliances with influential partners such as Pertamina,
the state-owned oil and gas company, real-estate/property
developers, various government such as Ministry of Finance,
leading universities and various counterparties.
In the year 2007, management has set working priorities to face
the tighter competition by focusing on 5 strategic issues, i.e.
revitalization of network distribution, stimulation of financing
activities, accumulation of public funds, increase of fee-based
incomes and service improvements.
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,
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, that Fitch Ratings affirmed all
these ratings of Bank Negara: 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).
FOSTER WHEELER: Milan Unit Adds New Gasifier to ERG Refinery
------------------------------------------------------------
Foster Wheeler Ltd.'s Milan-based subsidiary, Foster Wheeler
Italiana S.p.A., part of its Global Engineering and Construction
Group, has been awarded a contract by ERG Raffinerie
Mediterranee or ERGMED for engineering, procurement assistance
and construction management services for the expansion of the
integrated gasification combined cycle or IGCC complex at
ERGMED's Priolo refinery in Sicily.
The terms of the contract award, which were included in Foster
Wheeler's fourth-quarter 2006 bookings, were not disclosed.
Foster Wheeler, in a joint venture, designed and built the
original IGCC plant, which transforms refinery residues into
synthesis gas, which is burned to produce more than 550
megawatts of electricity. Completed in 2000, this was the first
IGCC plant in the world to use asphalt as a feedstock, and has
since demonstrated excellent reliability and performance.
As part of the expansion of the IGCC complex, a third gasifier
will be added. The new gasifier will use gasification
technology licensed by General Electric, which company acquired
the Texaco technology used in the two existing gasifiers.
Associated facilities will be added to the existing gasifiers
and new pressure swing absorption and membrane packages will be
installed in order to produce 20,000 nominal cubic meters per
hour of hydrogen. With the addition of the third train, the
total gasification capacity will be 146.5 tonnes per hour. The
project is expected to reach mechanical completion by the second
quarter of 2009.
"We are extremely pleased to be awarded this project," said
Marco Moresco, chief executive officer of Foster Wheeler's
Italian operating unit. "This award allows us to continue to
build on our excellent and long-standing relationship with ERG
and to consolidate our position as a leading player in
gasification technology and IGCC plant design."
"We have awarded this important project, a key investment for
the ERG Group, to Foster Wheeler because its expertise in
gasification technology and its management capabilities are
renowned worldwide," said Prof. Giuseppe Gatti, president, ERG
Power & Gas.
About Foster Wheeler
With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of
engineering, procurement, construction, manufacturing, project
development and management, research, and plant operation
services. Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology, and healthcare industries.
The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand and Vietnam.
* * *
On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company. The company had about
US$217 million of total debt at Sept. 29, 2006.
FREEPORT-MCMORAN: Workers Hold Protest Rally in Indonesia
---------------------------------------------------------
Thousands of workers at Freeport-McMoRan Copper & Gold, Inc.'s
Grasberg mine in Indonesia left their posts to join a protest
rally, various reports say.
In a statement e-mailed to Reuters, the company said output was
not affected and operations are continuing. "We remain at full
production of concentrate and metal and concentrate shipping has
not been affected."
According to Reuters, workers gathered at the parliament in the
town of Timika for the three-day rally that started Wednesday.
Protesters demand fair career opportunities for native workers,
improved recruiting, and better pensions, Reuters adds.
Talks between the company's and the workers' representatives are
ongoing.
About Freeport-Mcmoran
Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper
& Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries,
engages in the exploration, mining, and production of copper,
gold, and silver.
The company has operations in Indonesia.
* * *
The Troubled Company Reporter - Asia Pacific reported on
April 12, 2007, that Fitch Ratings has changed the Rating
Outlook to Positive for Freeport-McMoRan Copper & Gold following
the completion of US$5.76 billion in equity financings. Net
proceeds in the amount of US$5.6 billion will be used to repay
borrowings under the secured term loans used to finance, in
part, the acquisition of Phelps Dodge Corporation.
Fitch rates FCX as follows, the Outlook is revised to Positive:
-- Issuer Default Rating (IDR) 'BB';
-- US$500 million PT Freeport Indonesia/FCX Secured Bank
Revolver 'BBB-';
-- US$1 billion Secured Bank Revolver 'BB';
-- US$2.5 billion Secured Bank Term Loan A 'BB';
-- US$7.5 billion Secured Bank Term Loan B 'BB';
-- Existing Notes to be secured 'BB';
-- 10.125% senior notes due 2010;
-- 6.875% notes due 2014.
-- 7% convertible notes due 2011 'BB-'.
-- FCX Unsecured Notes due 2015 and 2017 'BB-'
-- FCX Convertible Preferred Stock B+.
GOODYEAR TIRE: To Report First Quarter 2007 Earnings on April 27
----------------------------------------------------------------
The Goodyear Tire & Rubber Company will report first quarter
2007 financial results before markets open on Friday, April 27,
to be followed by an investor conference call at 10 a.m.
Participating in the conference call will be Robert J. Keegan,
chairman and chief executive officer; Richard J. Kramer,
president, North American Tire and chief financial officer, and
Darren R. Wells, senior vice president, finance and strategy.
Prior to the commencement of the call, the company will post the
financial and other statistical information that will be
presented on its investor relations Web site:
http://investor.goodyear.com/
Shareholders, members of the media and other interested persons
may access the conference call on the Web site or via telephone
by calling (706) 634-5954 before 9:55 a.m. April 27. A taped
replay of the conference call will be available at 3 p.m. that
day by calling (706) 634-4556. The call replay will also remain
available on the Web site.
About The Goodyear Tire & Rubber Company
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide.
* * *
The Troubled Company Reporter - Asia Pacific reported on
April 10, 2007, that Fitch Ratings affirmed ratings for:
The Goodyear Tire & Rubber Company (GT):
-- Issuer Default Rating (IDR) 'B';
-- US$1.5 billion first-lien credit facility 'BB/RR1';
-- US$1.2 billion second-lien term loan 'BB/RR1';
-- US$300 million third-lien term loan 'B/RR4';
-- US$650 million third-lien senior secured notes 'B/RR4';
-- Senior unsecured debt 'CCC+/RR6'.
Goodyear Dunlop Tires Europe B.V. (GDTE)
-- EUR505 million European secured credit facilities
'BB/RR1'
Fitch also revised the Rating Outlook to Positive from Stable.
Standard & Poor's Ratings Services assigned various ratings to
Goodyear Tire & Rubber Co.'s proposed bank financings. At the
same time, S&P assigned a recovery rating to the existing US$650
million senior secured notes. S&P will withdraw the ratings on
the existing bank facilities that are being refinanced upon
closing of the new facilities.
The corporate credit rating on Goodyear is B+/Positive/B-2. The
ratings on the Akron, Ohio-based company reflect its aggressive
financial risk profile, characterized by low earnings in North
America, a leveraged capital structure, and significant, albeit
declining, underfunded employee benefit liabilities. These
factors more than offset the company's business strengths,
including its position as one of the three largest global tire
manufacturers, its good geographic diversity, its strong
distribution, and its well-recognized brand name.
Ratings List
Goodyear Tire & Rubber Co.
Corp. credit rating B+/Positive/B-2
Ratings Assigned
Goodyear Tire & Rubber Co.
US$1.5 billion asset-backed rev.
credit facility BB
Recovery rating 1
US$1.2 billion second-lien term loan B+
Recovery rating 2
US$650 million senior secured notes
Recovery rating 5
Goodyear Dunlop Tires Europe B.V.
EUR350 million revolving credit facility BB-
Recovery rating 1
Goodyear Dunlop Tires Germany GmbH
EUR155 million revolving credit facility BB-
Recovery rating 1
The TCR-AP reported on March 30, 2007, that Moody's Investors
Service affirmed Goodyear Tire & Rubber Company's Corporate
Family Rating of B1 but raised the outlook to positive.
In addition, a Ba1 rating was assigned to Goodyear's new
US$1.5 billion first lien revolving credit facility and a Ba2
rating was assigned to the company's new US$1.2 billion second
lien term loan. At the same time, a Ba1 rating was assigned to
Goodyear Dunlop Tyres Europe's new first lien credit facilities
for EUR505 million (approximately US$650 million). The
Speculative Grade Liquidity rating of SGL-2 was also affirmed.
Amounts being refinanced are identical to current facilities,
relative priorities are unchanged, but maturity profiles have
been extended under improved terms.
NORTEL NETWORKS: Board Declares Preferred Share Dividends
---------------------------------------------------------
Nortel Networks Limited's board of directors declared a dividend
on each of the outstanding Cumulative Redeemable Class A
Preferred Shares Series 5 and the outstanding Non-cumulative
Redeemable Class A Preferred Shares Series 7.
The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the Company's articles. The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively.
The maximum monthly adjustment for changes in the weighted
average daily trading price of each of the series will be plus
or minus 4.0% of Prime. The annual floating dividend rate
applicable for a month will in no event be less than 50% of
Prime or greater than Prime. The dividend on each series is
payable on June 12, 2007, to shareholders of record of such
series at the close of business on May 31, 2007.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers 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 Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.
Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.
* * *
In March 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering. Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par. Moody's said the outlook remains stable.
Standard & Poor's Ratings Services also assigned its 'B-' debt
rating to Canada-based Nortel Networks Corp.'s proposed US$1
billion senior unsecured convertible notes, which will consist
of two tranches of US$500 million, maturing in 2012 and 2014,
respectively.
Proceeds from the convertible notes will be used to partially
refinance NNC's US$1.8 billion senior unsecured convertible
notes due Sept. 1, 2008, and therefore the overall debt level is
not expected to change.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on 100%-owned Canada-based
subsidiary, Nortel Networks Ltd. At the same time, the ratings
on the US$200 million notes of NNL and the US$150 million notes
of Nortel Networks Capital Corp. were lowered to 'CCC' from
'B-'. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks
Inc., are collectively referred to as Nortel.
S&P said the outlook on NNL is stable.
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.
NORTEL NETWORKS: To Provide Hosted IP Telephony to TELMEX
---------------------------------------------------------
Nortel Networks has been selected by TELMEX, the leading
telecommunications company in Mexico, to provide hosted IP
telephony and multimedia services for delivery of a new Hosted
IP PBX offering to medium and large enterprises nationwide.
Under an agreement, Nortel is supplying a complete, end-to-end
IP services solution from the Nortel Global Services portfolio
using network equipment owned and managed by Nortel.
"This defines a new services delivery model for secure
communications, reliable infrastructure and advanced
applications in Mexico's corporate market," said Pablo Vazquez,
chief executive officer for Nortel in Mexico and Latin America.
"This model is technology agnostic, leveraging a broad spectrum
of advanced, vertical applications while helping to protect
customer technology investments."
TELMEX Hosted IP PBX allows enterprises to benefit from unified
communications, audio and video conferencing, collaboration
tools, mobility applications and other productivity-enhancing
services without the expense of installing, operating and
maintaining a network.
The Nortel solution for TELMEX is based on Nortel's
Communication Server 2000, an IMS-ready, carrier-grade
superclass softswitch that supports a wide range of voice and
multimedia business features based on the open, industry-
standard SIP multimedia protocol.
Nortel's Global Services portfolio offers a full range of
network application, implementation, management and support
services for end-to-end, multi-vendor, multi-technology
networks.
Nortel provides network-managed services for more than 100
enterprises, carriers, service providers and cable operators
worldwide through specialists at network management centers in
Europe, Asia and North America. These centers maintain 24/7
management vigilance, monitoring customer networks for potential
problems before they happen and taking the necessary corrective
actions to maintain operational integrity. They also monitor
and update network defenses to maintain security against
viruses, hackers and other threats.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers 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 Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.
Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.
* * *
In March 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering. Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par. Moody's said the outlook remains stable.
Standard & Poor's Ratings Services also assigned its 'B-' debt
rating to Canada-based Nortel Networks Corp.'s proposed US$1
billion senior unsecured convertible notes, which will consist
of two tranches of US$500 million, maturing in 2012 and 2014,
respectively.
Proceeds from the convertible notes will be used to partially
refinance NNC's US$1.8 billion senior unsecured convertible
notes due Sept. 1, 2008, and therefore the overall debt level is
not expected to change.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on 100%-owned Canada-based
subsidiary, Nortel Networks Ltd. At the same time, the ratings
on the US$200 million notes of NNL and the US$150 million notes
of Nortel Networks Capital Corp. were lowered to 'CCC' from
'B-'. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks
Inc., are collectively referred to as Nortel.
S&P said the outlook on NNL is stable.
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
PERTAMINA: Unit Partners With Wika to Set Up Biodiesel Plant
------------------------------------------------------------
PT Pertamina (Persero)'s Management Unit (UP)-III Plaju and
PT Wijaya Karya (Wika) are planning to invest IDR350 billion to
set up a biodiesel industry in South Sumatra, which will utilize
crude oil from oil plantations in South Sumatra and Jambi
province, Antara News reports.
The two companies would each open oil palm plantations on 26,000
hectares of land in OKI, Banyuasin and Muara Enin districts so
raw material to make biodiesel is not a problem, the report
adds.
PT Pertamina
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being me by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
TELKOM INDONESIA: Wins US$1.3MM Contract for Satellite Leasing
--------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk won a US$1.3 million tender for
the lease of a transponder satellite to the East Timorese radio
and television broadcasting council, Antara News reports.
According to the report, in the presence of Timor Leste
Transportation and Telecommunications Minister Inacio Moreira
and Indonesian Ambassador to Timor Leste Achmad Bey Sofwan, the
contract was signed on April 13 between:
* PT Telkom's Enterprises and Wholesale Director Arief Yahya;
and
* Procurement Services Director at the East Timorese Ministry
of Planning and Finance, Gregorio Ferreira da Silva.
About Telkom Indonesia
Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk
-- http://www.telkom-indonesia.com/-- provides local and long
distance telephone service in Indonesia. Known as Telkom, the
company also offers fixed wireless service, leased lines, and
data transport through affiliates.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Fitch Ratings revised the outlook on
Telekomunikasi Indonesia's long-term foreign and local currency
issuer default ratings to positive from stable and affirmed the
ratings at 'BB-'.
Moody's Investors Service gave Telekomunikasi Indonesia a Ba1
local currency corporate family rating.
Standard & Poor's Ratings Services gave the company 'BB+'
foreign and local currency corporate credit rating.
TELKOM: Director Arief Yahya Visits Timor-Leste President
---------------------------------------------------------
PT Telekomunikasi Indonesia Tbk Director for Enterprise and
Wholesale Arief Yahya paid a visit to President Xanana Gusmao of
Timor-Leste at Dilli to investigate the expansion of cooperation
in telecommunications industry at Timor Leste.
Arief Yahya accompanied by Indonesian Ambassador to Timor-Leste
Achmad Bey Sofwan and GM Overseas Branch of Bank Mandiri
Muhammad Busthami made a talk concerning a lot of possibilities
for cooperation between Telkom Indonesia and Timor Leste in
telecommunication sector.
"At the warmly intimate meeting, President Xanana kindly welcome
the Telkom's cooperation request provided by Arief Yahya.
Apparently, Xanana was so honestly interested in various kinds
of Telkom's proposals since telecommunication development in
Timor Leste seemed an urgently required need," the company said
in a press release.
In the primary step, Telkom offered cooperation in Training
Support for telecommunications experts from Timor Leste at
Telkom Education and Training centers as in Telkom Trainming
Center and School of Telecommunications Technology. "I notice a
very positive response from President Xanana towards the
stimulus of this education cooperation," said Arief Yahya.
Besides education & training cooperation, Arief Yahya dan Xanana
Gusmao discussed about the possibility of other kinds of
cooperation, namely the advantage of Telkom Research &
Development Center for developing communication technology
alternatives in Timor Leste. As an example, Telkom had
developed content and applications of e-Government, which could
be gained by the government of Timor Leste to make a linkage of
thirteen districts under their control.
Arief stated that Telkom had a lot of experiences and knowledge
in managing telecommunications infrastructure at Timor Leste
since Telkom several years ago had branch offices in this region
before this country became a new independent one.
One day before on April 13, 2007, Arief Yahya represented Telkom
and Gregorio Ferreira da Silva, Director for Procurement
Services at Ministry of Planning and Finance Timor Leste had
signed a contract on leasing Telkom 1 Satellite transponder
conducted by the Radio & Television Broadcasting Board of Timor
Leste. The contract worth of amounting US$1.3 million contained
high strategic value in facilitating Telkom to further take
steps and develop telecommunications sector in Timor Leste.
About Telkom Indonesia
Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/
-- provides local and long distance telephone service in
Indonesia. Known as Telkom, the company also offers fixed
wireless service, leased lines, and data transport through
affiliates.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Fitch Ratings revised the outlook on
Telekomunikasi Indonesia's long-term foreign and local currency
issuer default ratings to positive from stable and affirmed the
ratings at 'BB-'.
Moody's Investors Service gave Telekomunikasi Indonesia a Ba1
local currency corporate family rating.
Standard & Poor's Ratings Services gave the company 'BB+'
foreign and local currency corporate credit ratings.
=========
J A P A N
=========
BECKMAN COULTER: Clears U.S. Waiting Period for Biosite Purchase
----------------------------------------------------------------
Beckman Coulter, Inc., said the mandatory waiting period
associated with its proposed acquisition of Biosite(R)
Incorporated under the Hart-Scott-Rodino Antitrust Improvement
Act of 1976, as amended, has expired. The U.S. Federal Trade
Commission did not request any additional information or
documentary material.
Scott Garret, Beckman Coulter President and Chief Executive
Officer, said, "We are pleased to have achieved this significant
milestone toward the completion of our acquisition of Biosite.
Expiration of the waiting period without a second request for
information further demonstrates the certainty of Beckman
Coulter's transaction with Biosite, and we remain on schedule to
close the transaction by early May. We continue to be very
enthusiastic about the prospects for developing Biosite and
Beckman Coulter as a combined business."
As announced on April 2, 2007, Louisiana Acquisition Sub, Inc.,
a wholly owned subsidiary of Beckman Coulter, has commenced a
tender offer for all outstanding shares of Biosite at a price of
US$85.00 per share in cash. The offer price represents an
approximately 53.5% premium over Biosite's closing stock price
of US$55.38 on March 23, 2007, the last trading day before the
announcement of Beckman Coulter's intention to make the offer
pursuant to a definitive merger agreement between Beckman
Coulter and Biosite. The Beckman Coulter tender offer is not
subject to any financing conditions and is scheduled to be
completed at 12:00 midnight, New York City time, on Friday,
April 27, 2007 (the end of the day on Friday).
About Beckman Coulter
Headquartered in Fullerton, California, Beckman Coulter, Inc.,
is a leading provider of instrument systems and complementary
products that simplify and automate processes in biomedical
research and clinical laboratories. The company reported total
revenue of US$2.4 billion during 2005.
The company has worldwide offices in Argentina, Australia,
Bolivia, Brazil, China, France, Japan, Nigeria, Peru, Trinidad,
the United Kingdom, and Vietnam, among others.
The Troubled Company Reporter - Asia Pacific on Oct. 20, 2006,
reported that Moody's Investors Service affirmed the ratings of
Beckman Coulter. The outlook on Beckman's ratings remains
stable.
These ratings were affirmed:
-- US$500 Million Universal Shelf Registration (Senior and
Subordinate); (P) Baa3/ (P) Ba1
-- US$240 Million 7.45% Senior Notes due 2008; Baa3
-- US$235 Million 6.875% Senior Notes due 2011; Baa3
-- US$100 Million 7.05% Senior Debentures due 2026; Baa3
-- US$300 Million revolving credit facility, due 2010; Baa3
COSMO OIL: Fourth Fiscal Quarter Profit Falls 50%
-------------------------------------------------
Shigeru Sato and Hector Forster of Bloomberg News reports that
Cosmo Oil Co.'s profit fell 50% in the three months ended
March 31, 2007, to JPY7.1 billion from JPY14.1 billion a year
earlier.
Bloomberg calculated the figures by subtracting nine-month
numbers from full-year preliminary results it obtained from the
company.
According to Bloomberg reporters, demand for heating oil went
down because the Northern Hemisphere experienced a warmer
winter. The report adds that the company is expected to release
its final full-year earnings on May 15.
About Cosmo Oil
Headquartered in Tokyo, Japan, Cosmo Oil Company, Limited --
http://www.cosmo-oil.co.jp/-- is primarily an oil refining
company. The company is also involved in the purchase and sale
of real estate, the manufacture and sale of alpha lipoic acid
(ALA) products, as well as the provision of leasing and
insurance services.
Moody's Investors Service placed a Ba1 rating on Cosmo Oil's
senior unsecured debt and issuer rating on July 1, 2005.
KOBE STEEL: To Launch System to Store Waste Heat
------------------------------------------------
Kobe Steel Ltd. and its affiliate Kobelco Eco-Solutions Co. are
planning to launch a system that can store waste heat from
industrial plants for use by air conditioners in offices and
houses, according to Kyodo News.
The system will be launched between October this year and March
next year, the report adds.
Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel,
Limited -- http://www.kobelco.co.jp/-- is one of Japan's
leading steel makers, as well as the top supplier of aluminum
and copper products. Other businesses include welding
consumables, urban infrastructure and plant engineering
services, and industrial machinery.
Kobe Steel has offices in New York, Singapore, Bangkok and
Beijing.
As the Troubled Company Reporter - Asia Pacific reported on
May 31, 2006, Fitch Ratings upgraded the long-term foreign
and local currency Issuer Default Ratings of Japanese steel-
maker Kobe Steel to BB+ from BB. At the same time, the agency
affirmed Kobelco's short-term IDR at B. The outlook on the
ratings is positive.
MIZUHO FINANCIAL: Unit to Invest JPY6 Billion in China CITIC
------------------------------------------------------------
Mizuho Corporate Bank, a unit of Mizuho Financial Group, plans
to spend up to JPY6 billion to buy shares of China CITIC Bank
Corp Ltd. that will be issued in CITIC's planned initial public
offerings, various reports say.
As previously reported in the Troubled Company Reporter - Asia
Pacific, Mizuho Corporate Bank will launch an initial public
offering in which 60% will be listed in Hong Kong and the
remaining 40% in the Shanghai bourse. It hopes to raise as much
as US$5.4 billion in its dual float.
Reports relate that Mizuho Corporate Bank has not yet determined
how many shares it will acquire and for how much.
Citing industry sources, The Japan Times notes that the move is
expected to help Mizuho Corporate expand its services for
Japanese companies entering the Chinese market.
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., 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
November 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 February 8, 2006, Fitch Ratings assigned a C
individual rating to Mizuho Financial.
=========
K O R E A
=========
GENERAL MOTORS: South Korean Unit Becomes Major Contributor
-----------------------------------------------------------
General Motors Corp.'s Vice Chairman and Chief Financial Officer
Fritz Henderson praised the company's South Korean unit, GM
Daewoo Auto & Technology Co., as it became a major contributor
to the company's global operations, the Associated Press
reports.
Kelly Olsen, writing for the AP, relates that GM Daewoo was
created in 2002 after General Motors acquired Daewoo Motor Co.,
the automobile unit of the Daewoo Group. General Motors owns a
50.9% stake in GM Daewoo.
GM Daewoo manufactured 1.5 million vehicles last year, which
accounts for about 15% of General Motors' total group
production, Mr. Henderson told Kelly Olsen. Of that total,
about 1.4 million vehicles were exported, Mr. Henderson added,
according to the AP.
* * *
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in 33
countries including Belgium, France, Germany, India, Mexico, and
its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
* * *
In December 2006, Standard & Poor's Ratings Services affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006. S&P said
the outlook is negative.
In November 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the US$1.5 billion secured term loan of
General Motors Corp.
HYUNDAI MOTOR: Fair Trade Vice-Chairman Calls Firm a Monopoly
-------------------------------------------------------------
Kim Byung-bae, vice chairman of the Fair Trade Commission in
South Korea, called Hyundai Motor Co. a "virtual monopoly,"
Yonhap News reports.
"Hyundai Motor, along with its affiliate Kia Motors, accounts
for more than 70% of the domestic market and is a virtual
monopoly," Mr. Kim was quoted by Yonhap as saying in a meeting
organized by the Korean Chamber of Commerce and Industry.
According to Mr. Kim, Hyundai Motor and Kia exploited their
strong market position by not offering non-interest financing
services for buyers of new cars, the report adds.
* * *
Headquartered in Seoul, South Korea, Hyundai Motor Company --
http://www.hyundai-motor.com/-- has been selling cars in the
United States since 1986, but it only started selling its heavy
trucks stateside in 1998. Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles. The Company reestablished itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%. The Company also manufactures machine
tools for factory automation and material- handling equipment.
The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.
Chairman Chung has been indicted early in May 2006 for fraud
charges.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.
On Feb. 5, a South Korean court handed down the sentence to Mr.
Chung for illegally raising US$110 million in slush funds and
bribing government officials. Mr. Chung has been released on
bond and continues to run the auto conglomerate.
HYUNDAI MOTOR: Building New Automobile Plant in Nosovice
--------------------------------------------------------
Hyundai Motor Manufacturing Czech will hold the launch ceremony
for the construction of its automobile plant in Nosovice on
Wednesday, April 25, The Prague Daily Monitor reports.
According to the report, Hyundai Motor Co. Vice Chairman Kim
Dong-Jin visited the site earlier this month.
The Nosovice plant is expected to begin test production in the
second half of 2008 and mass production in the first quarter of
2009.
The production capacity of the plant, manufacturing two types of
Hyundai cars, will reach 200,000 units/year in 2009 and will be
increased by adding one more type to 300,000 units/year in 2011.
The company is already seeking subcontractors to supply parts
and materials, The Prague Daily Monitor relates.
On March 21, after more than a year and a half of negotiations
and preparatory works, construction of the transmission plant,
the first production unit, was started.
Building permits for the press shop and for the body shop that
have been issued already will come into force followed by
permits for remaining buildings.
About Hyundai Motor
Headquartered in Seoul, South Korea, Hyundai Motor Company --
http://www.hyundai-motor.com/-- has been selling cars in the
United States since 1986, but it only started selling its heavy
trucks stateside in 1998. Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles. The Company reestablished itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%. The Company also manufactures machine
tools for factory automation and material- handling equipment.
The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.
Chairman Chung has been indicted early in May 2006 for fraud
charges.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.
JINRO LIMITED: Aims for 55.3% of South Korea's Soju Market
----------------------------------------------------------
Jinro Ltd. aims to increase its control on South Korea's soju
market to more than 55.3%, Yonhap News reports.
Soju, an alcoholic beverage with rice as main ingredient, is one
of the most popular alcoholic beverages in Korea.
Yoon Jong-woong, CEO of Jinro, said he will "take aggressive
steps" to achieve the market share in the country, Yonhap
relates.
About Jinro Ltd
With distilleries in Ichon, Cheongwon and Masan in South Korea,
Jinro Ltd. -- http://www.jinro.co.kr/english/main.asp/--
specializes in manufacturing soju, a vodka-like distilled
liquor. Jinro also produces and sells wine, whisky and ginseng
liquors as well as non-alcoholic beverages like mineral water
and soft drinks. In addition, the Company provides information
processing, financial services as well as construction services.
Before it was sold to Hite Brewery in 2005, Jinro was declared
bankrupt on September 9, 1997. The Company was delisted
effective Jan. 10, 2003.
According to the Financial Times, in spite of high expectations
of synergies from Hite's takeover of Jinro, the company is
facing severe competition in the Soju market. Jinro, market
share, the report says, has fallen from 55% in Feb. 2006 to 50%
at the end of June 2006.
The Financial Times related that analysts cautioned that the
acquisition of Jinro would lay a substantial financial burden on
Hite. Although Hite's operating profit was only 3% lower in the
first quarter of 2006 compared with a year ago, its profits
before tax were down 59%, largely due to Jinro.
KOREA EXPRESS: Invests KRW52 Billion in Buying Equity Stakes
------------------------------------------------------------
The Korea Express Co., Ltd. invested more or less KRW52 billion
in buying stakes in Korean companies, Reuters notes.
According to the report, Korea Express has made an additional
capital injection of KRW47.5 billion into Pusan East Container
Terminal by taking 164,021 shares representing an equity stake
of 37.78%.
In addition, the company has also invested approximately KRW5.7
billion into a Korea-based company, which specializes in the
provision of logistics services. The investment, Reuters says,
raised Korea Express' stake to 82.15% in the unnamed company.
* * *
Headquartered in Seoul, Korea Express Co., Ltd. --
http://www.korex.co.kr/-- provides land and marine
transportation, and logistics services. The company also
operates stevedoring, distribution, and warehousing businesses
that serve domestic and international customer needs. Korea
Express transports a variety of products, ranging from consumer
goods to machinery and turbines. Korea Express also operates
Internet home shopping business.
Korea Express Bank has been under court receivership since June
2001 after it could not service a KRW1.5-trillion debt,
including KRW919 billion owed by then-parent Dong-Ah
Construction Industrial Co. Korea Express President Lee Kook-
Dong will decide with a Seoul court about when to sell the
company, which has a market value of US$601 million.
In the company's Web site, Mr. Lee said that Korea Express will
strive to end court receivership and improve its liquidity,
maximize sales profit through strengthening of cooperation
between management and labor, and seek continuous development.
Korea Investors Service gave the company a BB rating.
===============
M A L A Y S I A
===============
MALAYSIA AIRLINES: May Take Back AirAsia's Rural Flights
--------------------------------------------------------
Malaysia Airlines is likely to restart operating rural air
service (RAS) in Sabah and Sarawak after AirAsia Bhd's proposal
to hand over the operations, Business Times reports.
Citing an Aseambankers Malaysia Bhd research report, the
newspaper noted that the national carrier had gone on record to
proclaim its intent in reclaiming the RAS.
The handover is also not expected to have an impact on the
airline's bottom line, Aseambankers was quoted by the paper as
saying. Aseambankers said RAS was part of the airline's
original Business Turnaround Plan announced in late 2005.
* * *
Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and
international flights. Its global network comprised 32 domestic
and 86 international destinations. Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.
The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes. In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007. Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.
SATERAS RESOURCES: Court Orders Stay on Wind-Up Order Execution
---------------------------------------------------------------
On December 12, 2006, the Troubled Company Reporter - Asia
Pacific reported that Sateras Resources (M) Bhd received a wind-
up petition from Pengurusan Danaharta Nasional on a unit's
default.
According to the TCR-AP, Cosmopac, a wholly owned subsidiary of
Sateras, owes Pengurusan Danaharta MYR46,500,000 as of Oct. 10,
2006, which Sateras has provided corporate guarantee.
The petition was heard on January 25, 2006, and the Kuala Lumpur
High Court ordered the wind-up of Sateras.
In an update, the company told the Bursa Malaysia Securities Bhd
that upon submission of an appeal, on April 16, 2007, the Court
of Appeal granted a stay of the effect of the wind up order.
In addition, the court also ordered for a stay of the powers and
duties of the provisional liquidator pending the outcome of
these additional appeals the company submitted to the Court of
Appeal:
i. Civil Appeal No. W-02817-2006 relating to the setting
aside of the sealing of an Order dated November 3, 2004,
made in the course of Kuala Lumpur High Court Petition
No. D5-26-79-2004;
ii. Civil Appeal No. W-01-64-2005 relating to the refusal of
the High Court to extend a restraining order made in the
course of Kuala Lumpur High Court Originating Summons No.
D5-24-194-2003;
iii. Civil Appeal No. W-02-81-2007 in respect of the granting
of the Winding Up Order; and
iv. The Company's appeal in respect of the refusal by the
High Court to stay the above mentioned winding up
proceedings.
These appeals are fixed for hearing before the Court of Appeal
on September 4, 2007.
* * *
Headquartered in Kuala Lumpur, Malaysia, Sateras Resources
(Malaysia) Berhad is principally engaged in investment holding
and provision of management and secretarial services. The
principal activities of its subsidiary companies are that of
property development, investment in real property, investment
holding and educational services.
The Company has been experiencing losses since the Asian
financial crisis in 1997. Sateras' balance sheet as of Sept.
30, 2006, showed insolvency with total assets of MYR160.99
million and total liabilities of MYR575.17 million.
Shareholders' deficit in the company reached MYR414.18 million.
TENAGA NASIONAL: Analysts Expect Earnings to Soar in 2nd Quarter
----------------------------------------------------------------
Brokers and analysts interviewed by The Edge Daily expect Tenaga
Nasional Bhd to report strong earnings growth in its second
quarter ended February, on a strong ringgit and a tariff hike
last year.
Citing Reuters Estimates, The Daily relates that Deutsche Bank
Securities Inc sees Tenaga's second quarter net profit to triple
to MYR1.36 billion. Tenaga's net profit in the same period last
year was MYR399.5 million on sales of MYR4.83 billion.
Tursina Yaacob, an analyst at OSK Securities in Kuala Lumpur,
told the paper that the company's results would be at least
similar to last year, as higher revenue from the tariff increase
would be offset by higher costs from its Tanjung Bin power
project in southern Johor state.
According to The Daily, almost half of Tenaga's MYR26 billion
debt as at the end of November is denominated in foreign
currencies, mostly in dollars and yen, and any appreciation in
its ringgit currency gives it a foreign exchange translation
gain.
* * *
Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad
-- http://www.tnb.com.my/-- is engaged in the generation,
transmission, distribution and sale of electricity. The Company
also manufactures, sells and repairs transformers and
switchgears. It is also involved in provision of project
management, consultancy, engineering works, contracting,
trading, risk management, risk surveys, insurance, research and
development, property management, energy project development and
investment holding services. It also undertakes repairs and
maintenance of motor vehicles. The Group operates in Malaysia
and Mauritius.
The Company is currently undertaking liability management
exercises, which are expected to extend the Company's debt
maturity profile and reduce refinancing risk.
Moody's Investors Service gave the Company a 'Ba' rating due to
its relatively high financial leverage and significant PPA
obligations.
UNITED CHEMICAL: End-March Loan Default Reaches MYR10.57 Million
----------------------------------------------------------------
United Chemical Industries Bhd disclosed with the Bursa Malaysia
Securities Bhd that its loan default as of March 31, 2007,
reached MYR10,569,148.18 comprising of:
-- term loan from RHB Bank Bhd amounting to
MYR6,684,138.34;
-- term loan from Bank Industri Malaysia Bhd amounting to
MYR1,451,870.27; and
-- revolving loan from Bank Industri Malaysia Bhd amounting
to MYR2,433,139.57.
* * *
United Chemical Industries Berhad, a company incorporated and
domiciled in Malaysia, is a public company limited by shares,
and is listed on the Second Board of Bursa Malaysia Securities
Berhad. United Chemical is an investment holding company that
was previously involved in the manufacture and sale of
polypropylene and polyethylene woven bags together with its
allied products. Its subsidiary company, Geotextiles (M) Sdn
Bhd, was previously involved in the manufacture and sale of
geotextile fabrics together with its allied products.
The company's unaudited balance sheet as of December 31, 2006,
went upside down with total assets of MYR3.15 million and total
liabilities of MYR81.28 million, resulting to a shareholders'
deficit of MYR78.13 million.
====================
N E W Z E A L A N D
====================
CLEAR CHANNEL: Amends Merger Deal, Resets Shareholders' Meeting
---------------------------------------------------------------
Clear Channel Communications Inc. has entered into an amendment
to its previously announced merger agreement with a private
equity group co-led by Bain Capital Partners, LLC and Thomas H.
Lee Partners, L.P., providing for an increase to US$39.00 per
share in the price shareholders will receive in cash for each
share of Clear Channel common stock they hold. This is an
increase from the previous price of US$37.60 per share in cash.
The increased all-cash merger consideration of US$39.00 per
share represents a premium of approximately 33.3% over the
average closing share price during the 60 trading days ended
October 24, 2006, the day prior to Clear Channel's announcement
of the board of directors' decision to consider strategic
alternatives. The board of directors of Clear Channel, with the
interested directors recused from the vote, has unanimously
approved the amended merger agreement and recommends that the
shareholders approve the amended merger agreement and the
merger.
In conjunction with the increased cash purchase price, Clear
Channel agreed to pay certain fees if the merger does not close
and Clear Channel subsequently consummates a sale of the
company.
Rescheduled Shareholders' Meeting
Clear Channel will promptly send updated proxy materials to
shareholders and has rescheduled the Special Meeting of
Shareholders to Tuesday, May 8, 2007, at 9:00 a.m., Central
Daylight Savings Time, to allow shareholders time to consider
the increase in merger consideration. Shareholders of record as
of March 23, 2007, remain entitled to vote at the Special
Meeting.
Shareholders with questions about the merger or how to vote
their shares should call the Company's proxy solicitor,
Innisfree M&A Incorporated, toll-free at (877) 456-3427.
About Thomas H. Lee Partners, L.P.
THL Partners is one of the oldest and most successful private
equity investment firms in the United States. Since its
founding in 1974, THL Partners has become the preeminent growth
buyout firm, investing approximately US$12 billion of equity
capital in more than 100 businesses with an aggregate purchase
price of more than US$100 billion, completing over 200
add-on acquisitions for portfolio companies, and generating
superior returns for its investors and partners. The firm
currently manages approximately US$20 billion of committed
capital. Notable transactions sponsored by the firm include
Dunkin Brands, Nielsen, Michael Foods, Houghton Mifflin Company,
Fisher Scientific, Experian, TransWestern, Snapple Beverage and
ProSiebenSat1 Media.
About Bain Capital Partners LLC
Bain Capital -- http://www.baincapital.com/-- is a global
private investment firm that manages several pools of capital
including private equity, high-yield assets, mezzanine capital
and public equity with more than US$40 billion in assets under
management. Since its inception in 1984, Bain Capital has made
private equity investments and add-on acquisitions in over 230
companies around the world, including investments in a broad
range of companies such as Burger King, HCA, Warner Chilcott,
Toys "R" Us, AMC Entertainment, Sensata Technologies, Burlington
Coat Factory and ProSiebenSat1 Media. Headquartered in Boston,
Bain Capital has offices in New York, London, Munich, Tokyo,
Hong Kong and Shanghai.
About Clear Channel Communications
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a global media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.
* * *
Clear Channel's long-term local and foreign issuer credits carry
Standard & Poor's BB+ rating.
In addition, the company's senior unsecured debt and long-term
issuer default ratings were placed by Fitch at BB- on Nov. 16,
2006.
CONNEXIONZ LIMITED: Says Sign Up Delays Will Hold Up Results
------------------------------------------------------------
In a filing with the New Zealand Stock Exchange, Connexionz
Limited says delays in sales will cause company's results to
fall below forecast.
In December 2006, Connexionz expected that it would achieve a
break-even result for the second half of the financial year
ending March 31, 2007.
The NZX filing disclosed that Connexionz experienced unexpected
delays in signing up prospective clients in the United Kingdom
causing results not to meet expectations. The company also says
that delays in securing regulatory approval for an additional
radio channel required for the Maryland University deployment
will contribute to the results falling below its forecast.
"In our business, there is considerable uncertainty as to when
contracts will be signed, which makes projecting future sales a
challenging task," Connexionz Chairman Craig Boyce says.
According to Mr. Boyce, the delays mean that some of the sales
originally expected in the financial year ending March 31, 2007,
are likely to be recognized in the accounts for the next
financial period.
About Connexionz
Christchurch, New Zealand-based Connexionz Limited --
http://www.connexionz.co.nz/-- is a technology company that
develops real-time vehicle tracking systems for the local and
international markets. The company's products include city-side
systems, airport buses, bus interchanges, the BusFinder and
technical papers. Connexionz has a real time system for
tracking a fleet of buses across a city, handling up to 10,000
vehicles and up to 2,500 routes. The Company's BusFinder signs
provide passengers with information citywide at bus stops,
within interchange buildings and in malls and restaurants. The
Company has also customized their system to provide real time
information for airport bus services.
Going Concern Doubt
After examining the company's annual report for the financial
year ending March 31, 2006, Deloitte -- the company's
independent auditors -- raised a fundamental uncertainty on the
company's ability to continue as a going concern, which is
dependent upon the ability to fund future activities from
operational cash flows and/or raise further capital. Deloitte
adds that the company may need to provide for further
liabilities that might arise, and to reclassify non-current
assets as current assets.
CONNEXIONZ LIMITED: Bags US$492,000 Charlottesville Contract
------------------------------------------------------------
Connexionz Limited has won an approximately NZ$700,000
(US$492,000) contract to supply a real time passenger
information system to the City of Charlottesville, located in
the state of Virginia, USA.
After Connexionz's GPS-based system has been fully deployed,
Charlottesville's bus passengers will know, in real-time, when
their bus will arrive at any of their approximately 400 bus
stops. Twenty-five of the bus stops will have Connexionz's
BusFinder touch screen displays installed.
Connexionz's system also provides tools for bus system
administrators to manage their fleet, locate buses in
emergencies and provide data to fine-tune bus routes and
timetables.
The City operates a 28-strong bus fleet that annually provides
over 1.8 million passenger rides.
Charlottesville is the latest in a growing number of bus system
operators who have bought the New Zealand-developed system in
the United States. Other United States sites include:
Arlington, Virginia; Corvallis, Oregon; Antioch, California; and
Maryland University.
"Our decision to focus on the United States market is starting
to pay off," said Connexionz's Chairman, Craig Boyce.
Connexionz has also installed its real time passenger
information system in Auckland and Christchurch; and Sydney
Australia. Its subsidiary Connexionz UK Ltd has systems
deployed in Reading, Southampton and Manchester in the United
Kingdom; Eindhoven, The Netherlands; Forteleza, Brazil; and
Guangzhou, China.
About Connexionz
Christchurch, New Zealand-based Connexionz Limited --
http://www.connexionz.co.nz/-- is a technology company that
develops real-time vehicle tracking systems for the local and
international markets. The company's products include city-side
systems, airport buses, bus interchanges, the BusFinder and
technical papers. Connexionz has a real time system for
tracking a fleet of buses across a city, handling up to 10,000
vehicles and up to 2,500 routes. The Company's BusFinder signs
provide passengers with information citywide at bus stops,
within interchange buildings and in malls and restaurants. The
Company has also customized their system to provide real time
information for airport bus services.
Going Concern Doubt
After examining the company's annual report for the financial
year ending March 31, 2006, Deloitte -- the company's
independent auditors -- raised a fundamental uncertainty on the
company's ability to continue as a going concern, which is
dependent upon the ability to fund future activities from
operational cash flows and/or raise further capital. Deloitte
adds that the company may need to provide for further
liabilities that might arise, and to reclassify non-current
assets as current assets.
=====================
P H I L I P P I N E S
=====================
BANCO DE ORO: Net Income Rises 23% to PHP3.1 Billion for 2006
-------------------------------------------------------------
Banco de Oro Universal Bank posted a year-on-year growth of 23%
in net income from the prior year's PHP2.5 billion, reaching
PHP3.1 billion for the year ended December 31, 2006, the bank
reported in its annual financials submitted to the Philippine
Stock Exchange.
Interest income increased by 31% to PHP19.3 billion on account
of larger investment and loan portfolios. Interest expense,
likewise, went up by 38% owing to higher deposit levels.
Accordingly, net interest income grew by 22% to PHP8.3 billion.
The bank set aside a PHP981.0 million as impairment losses to
cover its non-performing loans as well as the required general
reserves on the incremental loan portfolio.
Other operating income registered a 31% increase, reaching
PHP5.2 billion in 2006. Trading gain surged by 72% to PHP2.7
billion on account of a higher securities turnover volume and a
declining interest rate environment in the latter half of the
year. Service charges and fees grew by 17% to PHP1.8 billion
owing to increased business from insurance, credit cards,
transaction banking, investment banking and OFW remittances.
Trust fees rose by 5% to PHP445.0 million on account of
higher volumes of investment management accounts as well as
traditional trust and other fiduciary services. Foreign
exchange gain dropped by 72% to PHP113 million due to increased
volumes of interbank swap transactions. Miscellaneous income
increased by 158% to PHP126.0 million on account of higher
income from acquired assets. Operating expenses went up by 30%
to PHP8.5 billion with employee benefits growing by 33% brought
about by a higher manpower count owing to business expansion.
Occupancy, repairs and maintenance as well as security,
messengerial and janitorial increased by 49%, 63% and 72%,
respectively, as the bank expanded its distribution network with
the redeployment of 45 former UOBP branches during the year.
Advertising and representation and entertainment went up by 6%
and 15% as the bank tapped a broader client base. Taxes and
licenses, insurance, documentary stamps used and miscellaneous
expenses rose by 38%, 30%, 44% and 7%, respectively, due to
increased business volume.
Tax expense grew by 66% to PHP881.0 million due to higher levels
of withholding tax on a larger inventory of tax-paid investment
securities.
Financial Position
As of December 31, 2006, the bank's total resources increased by
30% to PHP304.5 billion owing to a robust growth in total
deposits, which funded the expanded investment and loan
portfolios of the bank.
Cash and other cash items rose by 41% to PHP9.3 billion owing to
increased reserves for the higher deposit levels. Due from
Bangko Sentral ng Pilipinas also went up by 344% to PHP19.0
billion on account of the additional reserve requirement as well
as compliance with the mandated small and medium enterprises
lending programs.
Due from other banks increased by 26% to PHP6.5 billion due to
higher foreign currency denominated placements and working
balances with foreign banks. Investment securities grew by 19%
from the deployment of excess funds, owing a faster growth
in deposits compared to the loan portfolio. Financial assets at
fair value through profit or loss, available-for-sale securities
and held-to-maturity investments increased by 3%, 7% and 43% to
PHP7.9 billion, PHP54.0 billion and PHP44.9 billion,
respectively.
Net loans and other receivables increased by 34% to PHP137.0
billion as net receivables from customers expanded by 22% to
PHP96.6 billion as corporate and consumer loans increased owing
to focused marketing efforts, new products launched, as well as
an enhanced distribution network. Likewise, net other
receivables grew by 77% to PHP40.4 billion on account of an
increase in the more liquid interbank loans and securities
purchased under reverse repurchase agreements of 44% and 199%,
respectively.
Bank premises, FFE went up by 10% to PHP1.9 billion as the bank
redeployed 45 former UOBP branches in strategic business areas
to enhance its distribution network.
Non-current assets held for sale rose by 5% to PHP3.6 billion
due to the reclassification of foreclosed assets from investment
properties. Correspondingly, investment properties decreased by
4% to PHP1.3 billion.
Total deposit liabilities expanded by 44% to PHP230.0 billion
owing to aggressive deposit marketing efforts and an expanded
distribution network. On the other hand, bills payable declined
by 12% to PHP40.3 billion primarily due to the liquidation of
foreign currency denominated short-term borrowings.
Derivative liabilities grew by 41% to PHP1.6 billion owing to
increased transactions with clients. Other liabilities likewise
rose by 29% to PHP8.1 billion from higher levels of unearned
income and accruals consistent with an increased level of
assets, liabilities and operating expenses.
Capital funds went up by 21% to PHP24.4 billion primarily due to
net income for 2006 as well as unrealized gains on available-
for-sale Securities.
Total assets grew by 30% to PHP304.5 billion, owing to a strong
performance across all of the bank's business lines.
Despite the significant growth of the bank, asset quality was
still among the best in the industry while capital adequacy
remained at a comfortable level with a year-end ratio of 15.9%.
The bank's financials is available for free at:
http://bankrupt.com/misc/BancoDeOro-Financials.pdf
EPCI Merger
On December 27, 2006, the bank's stockholders approved the
bank's merger with Equitable PCI Bank, with BDO being the
surviving corporation of the merger, and will continue its
corporate existence under the laws of the Republic of the
Philippines. The name of the merged bank will be Banco De Oro-
EPCI, Inc.
All the issued and outstanding common stock of EPCIB will be
converted into fully-paid and non-assessable common stock of the
bank at the ratio of 1.80 BDO common shares for each issued
EPCIB Share. BDO will issue common shares to EPCIB stockholders
corresponding to each EPCIB share held by them. In lieu of any
fractional shares, each holder of EPCIB shares who would
otherwise be entitled to such fractional share will be entitled
to an amount in cash, without interest, rounded to the nearest
centavo equal to the product of:
(a) the amount of the fractional share interest in BDO's
common share to which such holder is entitled, and
(b) the average of the closing sale prices for BDO's common
shares on the Philippine Stock Exchange for each of the
thirty consecutive trading days ending on the date of
execution by the parties of the Plan of Merger.
The Articles of Incorporation and By-Laws of BDO in effect as of
the effectivity date of the merger will continue to be the
Articles of Incorporation and By-laws of the merged bank until
thereafter changed or amended in accordance with law.
The forthcoming merger of BDO and EPCI will make the bank a
market leader in major business lines such as corporate and
consumer lending, trust, leasing and remittances. The extensive
distribution capabilities of EPCI will strongly complement BDO's
business development and origination capabilities. This would
allow the merged entity to further consolidate its position in
its chosen markets, and provide better services to clients.
As the merger will create a major player in the industry, the
key for BDO is to maintain its growth and profitability. The
bank will continue to expand into new markets and enhance its
product array, while maintaining a focused approach to its
various businesses.
About Equitable PCI
Equitable PCI Bank, Inc. -- http://www.equitablepci.com/-- is a
universal bank formed from the consolidation of Equitable
Banking Corporation and PCI Bank on September 2, 1999. EBC and
its subsidiaries provide a wide range of commercial, corporate,
and retail banking and financial services, including lending and
deposit taking, branch banking, international banking,
electronic banking, trade finance, cash management, and trust
and treasury services. Aside from commercial banking, the bank
also capitalizes in credit card, investment banking, leasing,
trust banking, and remittance business.
About Banco de Oro Universal Bank
Banco de Oro Universal Bank -- http://www.bdo.com.ph/--
provides a wide range of corporate, commercial and retail
banking services in the Philippines, which include traditional
loan and deposit products, as well as treasury, trust banking,
investment banking, cash management, insurance, remittance,
retail cash cards and credit card services.
Banco de Oro is a member of the SM Group of Companies, one of
the Philippines' largest conglomerates, and is currently ranked
among the top 10 banks in the Philippines in terms of assets,
capital, deposits and loans. Its asset quality indicators (non-
performing loans & non-performing assets) are among the lowest
in the industry.
* * *
The Troubled Company Reporter - Asia Pacific reported on
November 9, 2006 that Fitch Ratings affirmed the ratings of
Banco De Oro Universal Bank, as follows:
* Individual 'C/D', and
* Support '3'.
BANKARD INC: Net Loss Widens to PHP597.6 Million in 2006
--------------------------------------------------------
Bankard, Inc. reported a net loss of PHP597.6 million for the
year ended December 31, 2006, which translated to a loss per
share of PHP1.92, the bank said in it annual financials filed
with the Philippine Stock Exchange.
The bank had a net loss of PHP422.4 million for the year ended
December 31, 2005.
The loss has reduced the total equity to a deficit of PHP318.4
million. However, with the deposit on future subscription of
PHP1.0 billion as a result of the debt to equity conversion of
Bankard's bills payable to RCBC, the company ended with a
positive equity of PHP681.6 million as of December 31, 2006.
Bankard was able to contain its operating expenses in 2006 at
the same level as in 2005. Total operating expenses in 2006,
net of expenses booked in relation to the sale transaction and
clean up of the company's balance sheet of PHP96.1 million, of
PHP757.7 million is even less than the 2005 level of Php764.1
million, net of PHP23.4 million swap differential that was shown
as funding cost in 2006.
The 2006 efforts to improve portfolio quality resulted in the
steady decline of delinquency rate from 15.2% in 2004 to 12.9%
in 2005 to 11.4% in 2006. The losses for doubtful accounts
pertaining to the fresh flows showed significant improvements as
it declined to PHP492.5 million in 2006 from PHP741.8 million in
2005. This was, however, offset by the higher provisions
required for the non-performing portfolio that is being provided
for on a staggered basis over seven years as mandated by Bangko
Sentral ng Pilipinas. Bankard provided PHP486.3 million in 2006
compared to PHP180.1 million in 2005.
Bankard's diversification into card-not-present merchant
acquiring significantly improved our net merchant discount
revenues to PHP227.5 million from PHP173.3 million the previous
year. The growth of this business segment had contributed
significantly in terms of funding saves bringing down finance
costs to PHP656.5 million from PHP876.1 million despite higher
card receivables from card issuing volumes.
However, certain issues raised by both VISA and MasterCard
regarding this type of online commerce have convinced the board
of directors to terminate this segment of the business in
November.
Other highlights include:
* In 2006, Bankard incurred capital expenditures of
PHP8.7 million for hardware & software to develop
additional functionalities and service offerings.
* Bankard, Inc. had 248 permanent employees as of
December 31, 2006. The employee population is composed of
156 officers and 89 rank and file personnel. Of the total
rank and file personnel, 17 employees belong to the Non
Collective Bargaining Units (Non CBU). Notwithstanding
non-membership in the Collective Bargaining Units (CBU),
these 17 employees are able to avail themselves of the
benefits granted by the CBA. There are no expected
significant changes in the number of employees.
* Bankard's reported total assets in 2006 amounted to
PHP50.7 million, lower by PHP3.2 billion against 2005.
The decline in credit card and other receivables is a
result of the sale of substantially all assets including
the credit card receivables.
* Cash and cash equivalents amounted to PHP346.8 million in
December 2006, 13% lower than 2005.
The bank's financials is available for free at:
http://bankrupt.com/misc/bankard-financials.pdf
* * *
Bankard, Inc. -- http://www.bankard.com/-- is a 67%-owned
subsidiary of RCBC Capital Corporation. It was organized by
PCIBank in December 1981 as Philippine Commercial Credit Card,
Inc. to engage in domestic credit card operation. It issued the
country's first credit card by a commercial bank. On July 8,
1992, PCCCI changed its corporate name to Bankard Inc.
Bankard is a licensee of Mastercard International Incorporated,
JCB International Co., Ltd. and VISA International Service
Association to issue credit cards accepted by affiliated banks
and merchant establishments worldwide. The company markets a
line of credit cards, which includes Bankard MasterCard, Bankard
Visa, Bankard JCB Standard and Premiere and its latest, myDream
JCB.
On top of the PHP597.6 million net loss for the year ended
December 31, 2006, the bank also suffered two yearly net losses
of PHP422.4 million and PHP597.6 million for the years ended
December 31, 2005 and 2004, respectively.
FILSYN CORP: Sycip Gorres Velayo Raises Significant Doubt
---------------------------------------------------------
Filsyn Corporation registered another net loss of PHP5.2 million
for the year ended Dec. 31, 2006, down from PHP31.5 million
posted for the year ended Dec. 31, 2005, according to the
company's financials.
The company, though not in commercial operations, earned PHP12.8
million for 2006 through warehouse rentals and disposal of old
equipment and stock materials. Total operating expenses
amounted to PHP17.9 million for 2006.
As of December 31, 2006, the company has total current assets of
PHP46.7 million available to pay total current liabilities of
PHP1.4 billion.
The company, as of Dec. 31, 2006, had a capital deficiency of
PHP474.2 million, and a deficit of PHP1.7 billion.
The bank's financials is available for free at:
http://bankrupt.com/misc/filsyn.pdf
Going Concern Doubt
Jaime F. Del Rosario at Sycip Gorres Velayo & Co., the company's
independent auditors, raised significant doubt on the company's
ability to continue as a going concern, citing the company's
deficit and net losses for the years 2006 and 2005.
Headquartered in Makati City, Philippines, Filsyn Corporation is
engaged in the manufacture of polyester, supplying polyester
fiber and yarn, a major raw material requirement of the textile
industry. Also, it ventured into PET bottle production, which
is being supplied to mineral water, softdrinks and condiment
industries. The PET bottle manufacturing uses Filsyn's
polyester chips, which are converted to Polyester Terephthalate
(PET) resin. Its product lines are polyester chips, polyester
fiber and yarn, PET bottles, and PET chips. The company's
operations evolved from purely polyester manufacturing into
being involved in various activities that include trading of
polyester products.
METROPOLITAN BANK: Sets Annual General Meeting for May 2
--------------------------------------------------------
Metropolitan Bank and Trust Company has scheduled its annual
meeting of stockholders on May 2, 2007, the bank said in a
release to the Philippine Stock Exchange.
The agenda includes:
* the report to the stockholders;
* a ratification of corporate acts;
* the election of directors; and
* the amendment of Article IV of the amended Articles of
Incorporation to extend the corporate term to
April 6, 2057.
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.
The bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that Moody's Investors Service revised the
outlook of Metropolitan Bank & Trust Co.'s foreign currency
long-term deposit rating of B1 and foreign currency subordinated
debt rating of Ba3 from negative to stable.
The outlook for Metropolitan Bank's foreign currency Not-Prime
short-term deposit rating and bank financial strength rating of
D remain stable.
On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
On September 21, 2006, the TCR-AP reported that Fitch Ratings
upgraded Metrobank's Individual rating to 'D' from 'D/E'. All
the bank's other ratings were affirmed:
* Long-term Issuer Default rating 'BB-' -- with a stable
Outlook,
* Short-term rating 'B,'
* Support rating '3.
On November 6, 2006, the TCR-AP reported that Moody's Investors
Service revised the outlook of Metrobank's foreign currency
long-term deposit rating of B1 and foreign currency subordinated
debt rating of Ba3 from negative to stable.
=================
S I N G A P O R E
=================
PETROLEO BRASILEIRO: Oilrigs P-52 & P-54 Will be Ready in July
--------------------------------------------------------------
A spokesperson of Brazilian state-run oil firm Petroleo
Brasileiro SA has confirmed to Business News Americas press
reports saying that the company's oilrigs P-52 and P-54 will be
ready in July.
The spokesperson told BNamericas that Petroleo Brasileiro
expects the P-52 semi-submersible platform to begin producing
oil in August. The P-54 floating production, storage and
offloading vessel will start output in September.
BNamericas relates that each platform will have installed an
180,000-barrel per day capacity and will run in the Campos
basin's Roncador field.
The spokesperson told BNamericas that Petroleo Brasileiro will
resume a tender for construction of the P-55 semi-submersible
platform in two weeks.
According to BNamericas, Petroleo Brasileiro called off in
January the first round of bidding to construct the unit, which
will run in Campos' Jubarte field in 2011, as offers were too
high.
Bidding for the P-57 project -- designed for operation in
Roncador in 2010 -- will be launched in July, BNamericas states,
citing the spokesperson.
About Petroleo Brasileiro SA
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/-- was founded in
1953. The company explores, produces, refines, transports,
markets, and 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 Investors Service.
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.
SEA CONTAINERS: Services' Panel Hires Kroll as Financial Advisor
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers
Services, Ltd. and its debtor-affiliates' Chapter 11 cases
obtained authority from the United States Bankruptcy Court for
the District of Delaware to retain Kroll Ltd. as its financial
advisor, nunc pro tunc to Oct. 26, 2006.
Kroll has acted to protect and advance the interests of the
Official Services Committee in the Debtors' bankruptcy cases
since its formation on Oct. 26, 2006. Kroll's services have
materially benefited the unsecured creditors of Sea Containers
Services, and have served to protect their rights until Kroll's
formal retention. As a result of its services, Kroll has become
directly familiar with the facts and circumstances surrounding
Sea Containers Services and the issues that the Official
Services Committee will face during the bankruptcy cases. Kroll
and its professionals are uniquely qualified to advise the
Official Services Committee.
Kroll is expected to:
a. evaluate the assets and liabilities of the Debtors and
their affiliates;
b. analyze and review the financial and operating statements
of the Debtors and their affiliates;
c. analyze the business plans and forecasts of the Debtors
and their affiliates;
d. provide specific valuation or other financial analysis as
the Official Services Committee may require;
e. help with the claim resolution process and related
distributions;
f. provide consideration of and advice on financial and
commercial aspects of any plan of reorganization proposed
as part of the Debtors' bankruptcy cases, including
preparation, analysis and explanation of the plan to the
Official Services Committee;
g. attend meetings of the Official Services Committee and
their advisors;
h. assist as required with negotiations among the various
creditors and stakeholders in the bankruptcy cases;
i. coordinate Kroll's work with that of other professional
advisors and assist the Official Services Committee in
the understanding and interpretation of the work;
j. coordinate regular communications among the Official
Services Committee, its professionals, and other parties
as required, to discuss ongoing matters;
k. provide accounting advice and expertise to the Official
Services Committee as required; and
1. any other matters for which the Official Services
Committee seeks the financial advisory services of Kroll
and for which Kroll agrees to provide.
Kroll will be paid for its services based on its standard hourly
rates:
Designation Hourly Rate
----------- -----------
Partner $550
Director $425
Senior Associate $400
Other Senior Professional $200 - $295
Other Staff $75 - $150
Gary Squires, Esq., a partner in the corporate advisory and
restructuring group at Kroll, assures the Court that his firm is
a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA,
SCRB)-- http://www.seacontainers.com/-- provides passenger and
freight transport and marine container leasing. Registered in
Bermuda, the company has regional operating offices in London,
Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The
company is owned almost entirely by United States shareholders
and its primary listing is on the New York Stock Exchange (SCRA
and SCRB) since 1974. On October 3, the company's common shares
and senior notes were suspended from trading on the NYSE and
NYSE Arca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.
The Debtors' exclusive period to file a plan expires on June 12,
2007. Their exclusive period to solicit acceptances expires on
Aug. 11, 2007. (Sea Containers Bankruptcy News, Issue No. 13
and 13; Bankruptcy Creditors' Service, Inc.
http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Services' Panel Hires Willkie Farr as Counsel
-------------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers
Services, Ltd. and its debtor-affiliates' Chapter 11 cases
obtained authority from the Honorable Kevin J. Carey of the
United States Bankruptcy Court for the District of Delaware to
retain Willkie Farr & Gallagher LLP as its counsel, nunc pro
tunc to Jan. 22, 2007.
The Official Services Committee represents the interests of Sea
Containers 1983 Pension Scheme and Sea Containers 1990 Pension
Scheme in the Debtors' bankruptcy cases.
The Official Services Committee engaged WF&G as its counsel on
Jan. 22, 2007, and has since acted to protect and advance the
interests of the Committee. The firm's attorneys have
conducted, and continue to conduct, due diligence in conjunction
with its engagement. WF&G's services have materially benefited
the Official Services Committee and have served to protect its
rights.
WF&G is expected to:
a. provide legal advice with respect to the Official
Services Committee's rights, powers, claims, and duties
in the bankruptcy cases;
b. represent the Services Committee at all negotiations,
hearings, and other proceedings;
c. advise and assist the Services Committee in discussions
with the Debtors and other parties-in-interest, as well
as professionals retained by any of the parties,
regarding the overall administration of the Chapter 11
cases;
d. assist with the Services Committee's investigation of the
assets, liabilities, and financial condition of the
Debtor, and of the operations of the Debtors' businesses;
e. assist and advise the Services Committee with respect to
its communications with other creditors;
f. review and analyze on behalf of the Services Committee
all pleadings, orders, statements of operations,
schedules, and other legal documents;
g. prepare on behalf of the Services Committee all
pleadings, motions, orders, reports, and other papers in
furtherance of its interests and objectives; and
h. perform all other legal services for the Services
Committee that may be necessary and proper.
The firm will be paid for its services based on its standard
hourly rates, plus reimbursement of actual and necessary
expenses incurred by WF&G.
Designation Hourly Rate
----------- -----------
Attorneys US$265 - US$885
Paralegals US$150 - US$235
The current hourly rates of the professionals who are likely to
be engaged in the Debtors' Chapter 11 cases are:
Professionals Designation Hourly Rate
------------- ----------- -----------
Marc Abrams, Esq. Partner US$885
Michael J. Kelly, Esq. Partner US$725
Casey Boyle, Esq. Associate US$460
Seth Kleinman, Esq. Law Clerk US$260
Marc Abrams, Esq., a member of WF&G, assures the Court that his
firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code. The members and
associates of WF&G do not represent or hold an interest adverse
to the Debtors, their creditors, or any other party-in-interest
in the matters regarding WF&G's engagement, Mr. Abrams adds.
Mr. Abrams can be contacted at:
Marc Abrams, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019-6099
Tel: (212) 728-8000
Fax: (212) 728-8111
http://www.willkie.com/
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA,
SCRB)-- http://www.seacontainers.com/-- provides passenger and
freight transport and marine container leasing. Registered in
Bermuda, the company has regional operating offices in London,
Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The
company is owned almost entirely by United States shareholders
and its primary listing is on the New York Stock Exchange (SCRA
and SCRB) since 1974. On October 3, the company's common shares
and senior notes were suspended from trading on the NYSE and
NYSE Arca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.
The Debtors' exclusive period to file a plan expires on June 12,
2007. Their exclusive period to solicit acceptances expires on
Aug. 11, 2007. (Sea Containers Bankruptcy News, Issue No. 13
and 13; Bankruptcy Creditors' Service, Inc.
http://bankrupt.com/newsstand/or 215/945-7000)
SPECTRUM BRANDS: 8-1/2% Senior Notes Exchange Offer Expires
-----------------------------------------------------------
Spectrum Brands, Inc. disclosed:
(i) the expiration, as of 12:00 Midnight, New York City
time, on April 13, 2007, of the exchange offer for all of
the company's outstanding 8-1/2% Senior Subordinated
Notes due 2013; and
(ii) the acceptance of the Existing Notes that were validly
tendered prior to the expiration of the Exchange Offer.
As of 12:00 Midnight, New York City time, on April 13, 2007, a
total of $347,127,000 in principal amount of the Existing Notes,
representing 99.18% of the aggregate outstanding principal
amount of Existing Notes were tendered in the Exchange Offer.
Approximately $2,296,000 in additional principal amount of the
Existing Notes, representing approximately 0.66% of the
aggregate outstanding principal amount of Existing Notes, were
validly tendered in the Exchange Offer following the expiration
of the consent solicitation on March 29, 2007. Holders
tendering after March 29, 2007, whose Existing Notes have been
accepted by the company, will promptly receive $950 in principal
amount of Variable Rate Toggle Senior Subordinated Notes due
2013.
About Spectrum Brands
Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world. The company has manufacturing
and distribution facilities in China, Australia and New Zealand,
and sales offices in Melbourne, Shanghai, and Singapore.
* * *
The Troubled Company Reporter - Asia Pacific reported on Apr. 3,
2007, Standard & Poor's Ratings Services assigned its loan and
recovery ratings to Atlanta, Georgia-based Spectrum Brands
Inc.'s planned US$1.6 billion senior secured bank financing,
which includes a US$1.55 billion first-lien term loan B and a
US$50 million first-lien letter of credit facility both maturing
in 2013. A portion of the term loan can be denominated in Euros
and Canadian dollars. The facilities are rated 'CCC+' (at the
same level as the corporate credit rating of Spectrum Brands)
with a recovery rating of '2', indicating the expectation of
substantial (80% to 100%) recovery of principal in the event of
a payment default.
S&P also assigned a 'CCC-' rating to Spectrum Brands' planned
US$350 million variable rate toggle senior subordinated notes
due 2013. The senior subordinated note offering will be an
exchange offer for the company's existing US$350 million senior
subordinated notes due 2013. The new notes will be issued
pursuant to Section 3(a)(9) of the Securities Act of 1933 and
will retain the same registered status as the existing notes.
Fitch Ratings affirmed the ratings of Spectrum Brands, Inc. as:
-- Issuer default rating 'CCC';
-- Senior secured bank facility 'B/RR1';
-- Senior subordinated debentures 'CCC-/RR5'.
The rating outlook has been revised to negative from stable.
Approximately US$2.38 billion of debt is covered by these
actions.
Moody's Investors Service confirmed Spectrum Brands Inc.'s B3
Corporate Family Rating in connection with the rating agency's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology.
===============
T H A I L A N D
===============
BANGKOK BANK: Shareholders Approve Bond Issuance & Dividends
------------------------------------------------------------
Bangkok Bank Public Company's shareholders have approved the
appropriation of profit and the payment of dividend for the year
2006, the bank said in a release.
The profit for 2006 will be appropriated:
* as legal reserve: THB1,000,000,000.00;
* as other reserves: THB10,000,000,000.00; and
* as dividend at THB2.75 per ordinary share, totaling
THB5,249,317,958.50, a part of which had been paid as
interim dividend at the rate of THB1.00 per share on
September 22, 2006, and the remaining amount be paid on
May 11, 2007 at the rate of THB1.75 per share to the
shareholders on record by April 27, 2007.
The shareholders have also approved the bank's issuance of
bonds. The bank may issue bonds, whether subordinated or
unsubordinated and/or secured or unsecured, including but not
limited to short-term bonds, derivative bonds and non-cumulative
hybrid debt instruments with non-payment of interest in the
years where the bank does not report any profit in the amount
not exceeding THB150 billion or its equivalent in other
currencies to be offered for sale in domestic markets and/or in
foreign markets to general public and/or institutional investors
or investors with specific characteristics as defined in the
relevant Notification of the Securities and Exchange Commission.
The shareholders have also:
* approved the minutes of the 13th annual ordinary meeting of
shareholders;
* acknowledged the report on the results of operations for
the year 2006;
* acknowledged the report of the Audit Committee for the year
2006;
* approved the balance sheet and the profit and loss
statement for the year 2006;
* re-elected Chatri Sophonpanich, Piti Sithi-Amnuai, Amorn
Chandarasomboon, Thamnoon Laukaikul, Prasong Uthaisangchai
and Singh Tangtatswas as the bank's directors;
* elected Phornthep Phornprapha and Gasinee Witoonchart as
directors; and
* appointed Niti Jungnitnirundr, and/or Suphamit
Techamontrikul, and/or Permsak Jerajakwattana, all of
Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd., as the
bank's auditors for the year 2007 with a THB10,800,000.00
remuneration.
Headquartered in Bangkok -- http://www.bangkokbank.com/--
Bangkok Bank is Thailand's largest bank, with total assets of
THBB1.498 trillion (US$39 billion) at end-June 2006.
Moody's Investors Service upgraded on August 29, 2006, Bangkok
Bank's bank financial strength rating to D+ from D and
reaffirmed this rating on September 20, following the military
coup in Thailand.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Fitch Ratings affirmed Bangkok Bank's Individual
rating at C.
BANK OF AYUDHYA: Increases Investment in Ayudhya Dev't Leasing
--------------------------------------------------------------
Bank of Ayudhya Public Company Limited has acquired 5.11%,
3.55%, 3.26%, and 0.81% stakes in Ayudhya Development Leasing
Company Limited from Ayudhya Auto Least PLC, Kookmin Bank,
Netherlands Development Finance Company and other shareholders
for a total of THB126,377,691.81, Reuters reports.
The report adds that this acquisition of 8,972,639 shares in
total increased the company's shareholding from 77.27% to 90%.
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 Moody's Investors Service upgraded Bank of
Ayudhya Public Co Ltd.'s bank financial strength rating to "D-"
from "E+".
The TCR-AP reported that on Jan. 12, 2007, Fitch Ratings
upgraded Bank of Ayudhya's:
* Foreign currency subordinated debt rating to BB+ from BB;
and
* Individual rating to C/D from D.
BANK OF AYUDHYA: Shareholders Okay Reserve & Dividend Payment
-------------------------------------------------------------
Bank of Ayudhya Public Company Limited's shareholders, during
the company's annual general meeting held on April 11, 2007,
approved the appropriation of profits for the year ended
December 31, 2006 as:
* Legal reserve: THB83,500,000.00;
* Dividend payment at THB0.20 per share for 4,794,929,476
shares totaling THB958,985,895.20, to be paid on
April 20, 2007 to the shareholder of record as of
March 21, 2007.
The shareholders also:
* adopted the minutes of the extraordinary general meeting
of shareholders held on September 20, 2006;
* acknowledged the board of directors' annual report;
* approved the bank's audited balance sheet and profit
and loss statements for the year ended December 31, 2006;
* appointed Yongyuth Withyawongsaruchi and Pongpinit
Tejagupta as the directors of the bank for another term;
* appointed Chet Raktakanishta, as the director of the bank
replacing Ekasak Puripol, whose chose not to be re-elected;
* approved the directors' remuneration, which consists of
transportation allowance, meeting allowance, and gratuity
(per annum); and
* appointed Permsak Jeerajakrawattana and/or Niti
Jungnitnirand and/or Suphamit Techamontrikul, all of
Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd. as the
bank's auditor for the fiscal year 2007 with the audit fee
of THB8,200,000.
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 Moody's Investors Service upgraded Bank of
Ayudhya Public Co Ltd.'s bank financial strength rating to "D-"
from "E+".
The TCR-AP reported that on Jan. 12, 2007, Fitch Ratings
upgraded Bank of Ayudhya's:
* Foreign currency subordinated debt rating to BB+ from BB;
and
* Individual rating to C/D from D.
BANK OF AYUDHYA: SET Allows Trading of New Securities
-----------------------------------------------------
Bank of Ayudhya Public Company Limited has increased its issued
and paid up capital from THB47,949,294,760 to THB49,565,752,010,
all common stock with a THB10 par value, according to a
corporate disclosure filed with the Stock Exchange of Thailand.
The new shares are allocated to warrant holders who swapped
161,645,725 warrants on March 30, 2007, with an exercise ratio
of 1 warrant to 1 common share.
The SET granted the bank's increase in capital to be traded
starting April 17.
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 Moody's Investors Service upgraded Bank of
Ayudhya Public Co Ltd.'s bank financial strength rating to "D-"
from "E+".
The TCR-AP reported that on Jan. 12, 2007, Fitch Ratings
upgraded Bank of Ayudhya's:
* Foreign currency subordinated debt rating to BB+ from BB;
and
* Individual rating to C/D from D.
ITV PCL: PriceWaterhouseCoopers Raises Going Concern Doubt
----------------------------------------------------------
Prasan Chuaphanich at PricewaterhouseCoopers ABAS Limited, ITV
Public Company Limited's independent auditors, raised
significant doubt on the company's ability to continue as a
going concern, citing that:
* the company posted a net loss for the year ended
December 31, 2006, of THB1.783 billion;
* its current liabilities exceeded its current assets by
THB1.227 billion; and
* the company was not able to comply with a debt covenant.
Moreover, the company is liable to pay the unpaid concession fee
totaling THB2.210 billion. The Troubled Company Reporter - Asia
Pacific reported on June 23, 2006, that the Prime Minister's
Office demanded a concession fee payment and fines to the
government from the television network.
The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's Office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.
On Dec. 15, 2006, the TCR-AP reported that the Supreme
Administrative Court upheld the Central Administrative Court's
verdict by voiding the arbitration ruling on concession fee
payments won by iTV in 2004. The overdue concession payment and
fines that the broadcaster must pay reached THB100 billion.
Mr. Prasan now says that based on the company's cash flows
projection, the company expects that it will need additional
funds of approximately THB1.500 billion in order to continue its
operation in the forthcoming 12 months.
ITV's balance sheet is available for free at:
http://bankrupt.com/misc/ITV-balance.pdf
ITV's income statement is available for free at:
http://bankrupt.com/misc/ITVstatement.pdf
Headquartered in Bangkok, Thailand, ITV Public Company Limited
-- http://www.itv.co.th/-- is a media company that operates a
television broadcast station under an ultra-high-frequency
system. ITV provides news and entertainment to the public
through television and the Internet via its 52 network stations
throughout the country.
ITV PCL: Has Two Years to Complete Rehabilitation
-------------------------------------------------
ITV Public Company Limited must complete a rehabilitation plan
by March 2009 if it is to remain listed on the Stock Exchange of
Thailand, according to the Bangkok Post citing Sakkarin
Ruamrungsri, a senior vice-president at the Stock Exchange of
Thailand.
The Post adds that failure to complete a plan will prompt the
SET to transfer the company's securities to the non-performing
group, which could lead to delisting.
The Post says that iTV had earlier requested a six-month delay
to draft a rehabilitation plan to avoid a possible delisting.
In justifying the delay, the company, on April 9, said that it
is still contesting whether the Prime Minister's Office was
right in asking for a THB100 billion in concession fees and
penalties with the Arbitration Institute. Moreover, the company
said that it was considering legal action against the PMO for
illegally terminating its concession.
The company also outlined its plans for a new business and
rehabilitation, which includes:
-- getting more investments from local and foreign investors;
and
-- focusing more on its two subsidiaries:
* Artware Media Co., Ltd., which rents out production
equipment, produces television programs, acquires movies
and arranges marketing events; and
* Media Connex co., Ltd., which provides advertising and
content via mobile phones.
Headquartered in Bangkok, Thailand, ITV Public Company Limited
-- http://www.itv.co.th/-- is a media company that operates a
television broadcast station under an ultra-high-frequency
system. ITV provides news and entertainment to the public
through television and the Internet via its 52 network stations
throughout the country.
Prasan Chuaphanich at PricewaterhouseCoopers ABAS Limited, ITV
Public Company Limited's independent auditors, have raised
significant doubt on the company's ability to continue as a
going concern, citing that:
* the company posted a net loss for the year ended
December 31, 2006 of THB1.783 billion;
* its current liabilities exceeded its current assets by
THB1.227 billion; and
* the company was not able to comply with a debt covenant.
Moreover, the company is liable to pay the unpaid concession fee
totaling THB2.210 billion. The Troubled Company Reporter - Asia
Pacific reported on Jun. 23, 2006, that the Prime Minister's
Office demanded a concession fee payment and fines to the
government from the television network.
The demand, the TCR-AP recounted, was a result of the
Arbitration Court's consent given to the company to pay an
annual concession fee to the Prime Minister's Office amounting
to THB230 million. The original rate before the consent
amounted to THB1 billion per year.
On Dec. 15, 2006, the TCR-AP reported that the Supreme
Administrative Court upheld the Central Administrative Court's
verdict by voiding the arbitration ruling on concession fee
payments won by iTV in 2004. The overdue concession payment and
fines that the broadcaster must pay reached THB100 billion.
Mr. Prasan now says that based on the company's cash flows
projection, the company expects that it will need additional
funds of approximately THB1.500 billion in order to continue its
operation in the forthcoming 12 months.
UNITED OVERSEAS (THAI): Earns THB601.18 Million in 2006
-------------------------------------------------------
For the year ended December 31, 2006, United Overseas Bank
(Thailand) Public Co. Ltd. and its subsidiaries reported net
income of THB601,176,584, a decrease against the THB953,520,793
net income for the year ended December 31, 2005.
For 2006, the bank had total interest and dividend income of
THB10,361,508,850, and total interest expenses of
THB4,037,813,403, giving the bank a net interest and dividend
income of THB6,323,695,447, a 36% improvement against the
previous year's THB4,659,556,017.
In 2006, the bank chalked up a bad debts account amounting to
THB1,985,212,188, against a reversal of THB386,812,656, giving
it a THB4,338,483,259 net operating earnings.
Total non-interest income amounted to THB2,469,441,456 in 2006,
but total non-interest expenses shot up to THB6,193,778,635 from
THB4,802,112,528 a year earlier, resulting in a 37% decrease in
income before income tax and minority interests to
THB614,146,080.
The bank's financials can be downloaded for free at:
http://bankrupt.com/misc/unitedoverseas2006.pdf
United Overseas Bank (Thai) Public Company Limited --
http://www.uob.co.th/index_th.htm-- is set to bring financial
services to new heights for our customers in Thailand. With 154
branches and over 300 ATMs nationwide, we offer both consumer
and corporate banking customers a wide array of products and
services ranging from personal financial services to
institutional banking, investment banking and treasury services.
It is the eighth largest commercial bank in Thailand, with a
total assets of THB206 billion as at 31 March 2006.
As part of the UOB Group's extensive network of 503 offices in
18 countries and territories, UOB Thai is well-positioned to
become a significant player in the Thai banking and financial
industry.
Fitch Ratings affirmed on July 27, 2006, United Overseas Bank's
-- formerly Bank of Asia -- Individual rating at C/D.
The Troubled Company Reporter - Asia Pacific reported that, on
November 1, 2006, Standard & Poor's Ratings Services affirmed
its D+ bank fundamental strength rating on the bank.
*********
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, Tara Eliza Tecarro, Freya
Natasha Fernandez, Frauline Abangan, 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 ***