/raid1/www/Hosts/bankrupt/TCRAP_Public/070430.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, April 30, 2007, Vol. 10, No. 84
Headlines
A U S T R A L I A
ABLE HEATING: To Declare First & Final Dividend on June 1
CHIPPENDALE HOTEL: Joint Meeting Set for May 24
CHRISMAR HOLDINGS: Creditors' Proofs of Debt Due on May 16
COMMSCOPE INC: Earns US$45.9 Million for First Quarter 2007
COMMSCOPE INC: Names Mike Kelley as Sr. VP for Global Operations
COSMETIC LASER: Will Declare Dividend on June 6
DANKA DATAKEY: Members Agree to Business Liquidation
K WONSON: Will Declare Dividend on May 8
N.F.B. ENTERPRISES: Final Meeting Set for May 25
ONBECK HOLDINGS: Placed Under Voluntary Liquidation
SOUTHERN RESTAURANT: Creditors to Hold Final Meeting on May 23
THE SOUTHERN CROSS: Final Meeting Set for May 28
C H I N A & H O N G K O N G
BT ASIA: Liquidators Resign from Posts
CENTRE RISE: Wind-Up Petition Hearing Set for May 30
CHINA CONSTRUCTION: Plans 10-Year CNY40 Billion Bond Issue
HEROES INDUSTRIAL: Faces BII's Wind-Up Petition
MULTI DRAGON: Court to Hear Wind-Up Petition on May 23
NOVARIO INTERNATIONAL: Wind-Up Petition Hearing Set for May 30
SOFTBRANDS (HK): Appoints Ying Tze Yeuk as New Liquidator
STANLEIGH INTERNATIONAL: Liquidator Resigns from Post
TETRA PAK: Liquidators Quit Posts
VICTORY PACIFIC: Final General Meeting Set for May 28
WELL CHIEF: Members to Hold Final General Meeting on May 28
WIDELAND FOUNDATION: Creditors Must Prove Debts by May 28
WING SHING: Placed Under Voluntary Wind-Up
I N D I A
BRITISH AIRWAYS: Delisting American Depositary Shares from NYSE
GENERAL MOTORS: CEO Takes the Challenge to Beat Toyota's Sales
ICICI BANK: Qatar Regulator Grants License to Set Up Branch
ICICI BANK: Sets Up INR100-Cr. Fund for Eco-Friendly Businesses
IFCI LTD: Can't Convert Into a Bank, RBI and India Gov't. Say
INDIA CEMENTS: Net Profit in 4th Quarter Soars to INR1.4 Billion
INDIAN OVERSEAS BANK: Net Profit Up 42% in March 31 Quarter
STEELCASE INC: Repurchases 1.7 Million Shares for US$33 Million
I N D O N E S I A
ALCATEL-LUCENT: Supplies Mobile TV Solution to SIC TV
ALCATEL-LUCENT: Finishes Installation of Cable Network for Maroc
ALCATEL-LUCENT: Sells Geel Plant to tbp Electronics
AVNET INC: Reports US$105MM Net Income in Qtr. Ended March 31
EXCELCOMINDO PRATAMA: OKs IDR67-Billion Cash Dividend Payout
HILTON HOTEL: Sells 132 Hotel Scandic Chain for EUR833 Million
HILTON HOTELS: To Sell 10 Hotels for EUR566 Million
J A P A N
ASAHI LIFE: S&P Upgrades Financial Strength Rating to 'BB+'
ITOCHU CORP: Wins US$1.1BB Gas Contract With IHI in Algeria
ISUZU MOTORS: Agrees to Raise Share in Turkish Joint Venture
JAPAN AIRLINES: To Increase Flight in China & Vietnam Routes
MAZDA MOTOR: Net Income Up 11% to JPY73.7 Billion in FY2006
MITSUBISHI MOTORS: Earns JPY8.7 Billion in Fiscal Year 2006
MITSUI LIFE: S&P Upgrades Financial Strength Rating to 'BB-'
NOMURA HOLDINGS: Advises Vedanta Resources on Sesa Goa Deal
NOMURA HOLDINGS: FY2006 Net Income Drops to JPY175.8 Billion
NORTHWEST AIRLINES: Inks Tentative CBA with AFA on $182MM Claims
SANYO ELECTRIC: Accepts GE Subsidiary's Tender Offer
SOFTBANK CORP: Expects Group Revenue to Increase
SOJITZ CORP: Makes $1,500,000 Funding Commitment to Nitches
TREND MICRO: To Delist American Depositary Shares from NASDAQ
TREND MICRO: Earns JPY4.35 Billion in First Quarter 2007
K O R E A
TYSON FOODS: Restarts Beef Exports to South Korea
M A L A Y S I A
HARVEST COURT: Securities Commission Junks Land Acquisition Plan
N E W Z E A L A N D
CBL COPIERS: Commences Wind-Up Proceedings
D. M. ENGINEERING: Undergoes Wind-Up Proceedings
EASTSIDE TIMBER: Subject to CIR's Wind-Up Petition
FACERE INVESTMENTS: Enters Wind-Up Proceedings
FPM BUILDING: Court to Hear Wind-Up Petition on June 28
IMPACT STEEL: Court to Hear Wind-Up Petition on June 7
RICHMOND M: Faces CIR's Liquidation Petition
SUNNINGDALE INVESTMENTS: Appoints Peter Morpeth as Liquidator
TMG CONTRACTORS: Wind-Up Petition Will be Heard on June 6
WOLFE'S CLASSIC: Taps James Gregory Eden as Liquidator
P H I L I P P I N E S
MIRANT: Mirant Lovett's Wants US$20 Mil. DIP Financing Approval
MIRANT CORP: Inks Sale Pact for Caribbean Biz with Marubeni Unit
MIRANT: Court OKs Bowline to Assume US$200MM Insurance Policy
WARNER MUSIC: Receives US$110 Mil. from Bertelsmann-Napster Deal
S I N G A P O R E
FLEXTRONICS INT'L: Fourth Quarter Earnings Tripled to US$121MM
LEAR CORP: Earns US$49.9MM in First Quarter Ended March 31
RED HAT: Will Acquire MetaMatrix
PETROLEO BRASILEIRO: CADE Reviews Sanction Over Iparinga Buy
PETROLEO BRASILEIRO: Inks Initial Pact to Buy Nigerian NatGas
T H A I L A N D
PHELPS DODGE: Acquisition Boosts Freeport's First Qtr. Profits
- - - - - - - -
=================
A U S T R A L I A
=================
ABLE HEATING: To Declare First & Final Dividend on June 1
---------------------------------------------------------
Able Heating & Air Conditioning Pty Ltd, which is in
liquidation, will declare a first and final dividend on June 1,
2007.
Creditors are required to file their proofs of debt by May 30,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
H. A. MacKinnon
Bent & Cougle Pty Ltd
Chartered Accountants
332 St Kilda Road
Melbourne, Victoria 3004
Australia
About Able Heating
Able Heating & Air Conditioning Pty Ltd is a distributor of
household appliance stores. The company is located in Victoria,
Australia.
CHIPPENDALE HOTEL: Joint Meeting Set for May 24
-----------------------------------------------
The members and creditors of Chippendale Hotel Pty Ltd will hold
a joint meeting on May 24, 2007, at 10:00 a.m., to hear the
liquidator's report about the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Neil R. Cussen
Deloitte Touche Tohmatsu
Level 3, Grosvenor Place
225 George Street
Sydney, New South Wales 2000
Australia
About Chippendale Hotel
Chippendale Hotel Pty Ltd operates drinking places. The company
is located in New South Wales, Australia.
CHRISMAR HOLDINGS: Creditors' Proofs of Debt Due on May 16
----------------------------------------------------------
Chrismar Holdings Pty Ltd, which is subject to deed of company
arrangement, will declare a first and final dividend for its
creditors on May 31, 2007.
Creditors who cannot prove their debts by May 16, 2007, are
excluded from sharing in the company's dividend distribution.
The company's deed administrator is:
Paul Burness
Worrells Solvency & Forensic Accountants
Level 5, 15 Queen Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9613 5511
Facsimile:(03) 9614 3233
Web-site: http://www.worrells.net.au
About Chrismar Holdings
Located in Victoria, Australia, Chrismar Holdings Pty Ltd
operates newsstands.
COMMSCOPE INC: Earns US$45.9 Million for First Quarter 2007
-----------------------------------------------------------
CommScope Inc. posted US$45.86 million in net profit on
US$435.45 million in net revenues for the first quarter ended
Mar. 31, 2007, compared with US$12.72 million in net profit on
US$352.25 million in net revenues for the first quarter ended
Mar. 31, 2006.
"We are excited to start 2007 with record first quarter results
that exceeded expectations," said Frank M. Drendel, CommScope
Chairman and Chief Executive Officer. "We delivered solid top-
line growth in every business segment while improving operating
performance. The global manufacturing initiatives, which were
implemented throughout 2006, made a significant contribution to
our bottom line. These major restructurings at key facilities
around the globe, higher sales volume and lower than expected
commodity costs drove our record first quarter performance. We
have also raised calendar year 2007 financial guidance to
reflect our positive outlook.
"Leading global companies are placing great demands on their
communications networks. We strive to provide our customers
with solutions that are part of the essential fabric for higher-
bandwidth networks of the future," stated Mr. Drendel. "We
believe that our momentum remains strong as we execute this
strategy and build upon CommScope's unique position in the 'last
mile' of telecommunications."
Outlook
CommScope provided these guidance for the second quarter and
calendar year 2007:
Second Quarter 2007
-- for the second quarter of 2007, revenue is expected to be
US$490 million to US$510 million and operating margin is
expected to be 14.5% - 15.5%, excluding special items;
-- the effective tax rate is expected to be 30% - 34%.
Calendar Year 2007
-- for calendar year 2007, the company has increased its
revenue and operating margin guidance. CommScope now
expects revenue in the range of US$1.84 billion to
US$1.89 billion and operating margin of 13.5% - 14.5%,
excluding special items; and
-- the effective tax rate is expected to be 30% - 34%.
"We are pleased with the strong start in our 2007 financial
performance and our improved calendar year outlook," said
Jearld L. Leonhardt, Executive Vice President and Chief
Financial Officer. "We expect operating margin in the second
half of 2007 to be lower than the first half of the year
primarily due to increasing raw material costs and a cautious
view of the historically volatile Carrier segment."
About CommScope
Headquartered in Hickory, North Carolina, CommScope Inc.
-- http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. CommScope operates in Brazil, Australia, China and
Ireland.
* * *
CommScope Inc. carries a 'BB' corporate credit rating from
Standard & Poor's. Outlook is stable.
COMMSCOPE INC: Names Mike Kelley as Sr. VP for Global Operations
----------------------------------------------------------------
CommScope Inc. has appointed Mike Kelley as Senior Vice
President, Global Enterprise Operations.
Mr. Kelley, 46, will be responsible for building upon and
integrating CommScope's global Enterprise manufacturing
operations, including facilities based in North America, Europe
and Australia. Mr. Kelley has been a CommScope leader for eight
years as plant manager and Vice President of Operations at the
Claremont, North Carolina manufacturing facility.
"With more than 20 years of broad operations experience and his
key leadership role in our recent, successful manufacturing
initiatives, Mike is the right person to guide our global
Enterprise operations," said Randy Crenshaw, Executive Vice
President and General Manager, Enterprise. "In the past few
years, Mike has shown that he is a capable, focused leader who
can meet the challenges of a dynamic operations environment."
Prior to joining CommScope in 1999, Mr. Kelley was Plant Manager
for General Cable Corporation in Plano, Texas. Before that, Mr.
Kelley held various manufacturing and operations positions at
Belden CDT Inc., including Plant Manager at its Tompkinsville,
Kentucky facility and Director of Operations at its Venlo,
Netherlands facility.
Mr. Kelley received his Masters of Business Administration from
the University of Tennessee at Chattanooga in 1984 and his
Bachelors degree in 1983. He and his wife, Patti, have two
children and live in Conover, North Carolina.
About CommScope
Headquartered in Hickory, North Carolina, CommScope Inc.
-- http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. CommScope operates in Brazil, Australia, China and
Ireland.
* * *
CommScope Inc. carries a 'BB' corporate credit rating from
Standard & Poor's. Outlook is stable.
COSMETIC LASER: Will Declare Dividend on June 6
-----------------------------------------------
Cosmetic Laser Clinic Pty Ltd, which is subject to a deed of
company arrangement, will declare a first and final dividend on
June 6, 2007.
Creditors who cannot prove their debts by May 23, 2007, are
excluded from sharing in the company's dividend distribution.
The company's deed administrator is:
Pino Fiorentino
Hamiltons Chartered Accountants
Level 17, 25 Bligh Street
Sydney, New South Wales 2001
Australia
Telephone:(02) 9232 6611
Facsimile:(02) 9232 6166, DX 1208
About Cosmetic Laser
Cosmetic Laser Clinic Pty Ltd operates offices and clinics for
doctors of medicine. The company is located in New South Wales,
Australia.
DANKA DATAKEY: Members Agree to Business Liquidation
----------------------------------------------------
On April 12, 2007, the members of Danka Datakey Pty Ltd met and
agreed to liquidate the company's business.
David John Kerr and Peter William Marsden were appointed as
liquidators.
The Liquidators can be reached at:
Peter W. Marsden
David J. Kerr
RSM Bird Cameron Partners
Level 12, 60 Castlereagh Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9233 8933
Facsimile:(02) 9233 8521
About Danka Datakey
Located in Victoria, Australia, Danka Datakey Pty Ltd operates
investment offices.
K WONSON: Will Declare Dividend on May 8
----------------------------------------
K Wonson Pty Ltd, which is in liquidation, will declare a first
and final dividend on May 8, 2007.
Creditors who cannot prove their debts by May 1, 2007, are
excluded from sharing in the company's dividend distribution.
According to the Troubled Company Reporter - Asia Pacific, the
company went into liquidation in December 2006.
The company's liquidator is:
Danny Vrkic
Jirsch Sutherland & Co - Wollongong
Chartered Accountants
Level 3, 6-8 Regent Street
Wollongong, New South Wales 2500
Australia
Telephone:(02) 4225 2545
Facsimile:(02) 4225 2546
About K Wonson
K Wonson Pty Ltd operates hotels and motels. The company is
located in New South Wales, Australia.
N.F.B. ENTERPRISES: Final Meeting Set for May 25
------------------------------------------------
The members and creditors of N.F.B. Enterprises Pty Limited will
have their final meeting on May 25, 2007, at 10:30 a.m., to hear
the liquidator's report about the company's wind-up proceedings
and property disposal.
In a report by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on Oct. 6, 2006.
The company's liquidator is:
Christopher J. Palmer
O'Brien Palmer
Level 4, 23-25 Hunter Street
Sydney, New South Wales 2000
Australia
Telephone: 9232 3322
Facsimile: 9232 3388
About N.F.B. Enterprises
Located in New South Wales, Australia, N.F.B. Enterprises Pty
Limited is a dealer of automobiles.
ONBECK HOLDINGS: Placed Under Voluntary Liquidation
---------------------------------------------------
The members of Onbeck Holdings Pty Limited had their general
meeting on April 11, 2007, and decided to voluntarily wind up
the company's operations.
Roderick Mackay Sutherland was appointed as liquidator.
The Liquidator can be reached at:
Roderick Mackay Sutherland
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales 2001
Australia
Telephone:(02) 9233 2111
Facsimile:(02) 9233 2144
About Onbeck Holdings
Located in New South Wales, Australia, Onbeck Holdings Pty
Limited is a general contractor of single-family houses.
SOUTHERN RESTAURANT: Creditors to Hold Final Meeting on May 23
--------------------------------------------------------------
The creditors of Southern Restaurant Group Pty Ltd will have
their final meeting on May 23, 2007, at 11:00 a.m., to hear a
report about the company's wind-up proceedings and property
disposal.
The company's liquidator is:
Mat Muldoon
SimsPartners
Level 2, 446 Collins Street
Melbourne
Australia
Telephone: 9600 2100
About Southern Restaurant
Southern Restaurant Group Pty Ltd is involved with patent owners
and lessors. The company is located in Victoria, Australia.
THE SOUTHERN CROSS: Final Meeting Set for May 28
------------------------------------------------
The Southern Cross Financial Group Pty Limited will hold a final
meeting for its members and creditors on May 28, 2007, at
10:00 a.m. and 10:30 a.m., respectively.
At the meeting, the members and creditors will receive a report
about the company's wind-up proceedings and property disposal.
The company's liquidator is:
Geoffrey McDonald
c/o Hall Chadwick
Level 29, 31 Market Street
Sydney, New South Wales 2000
Australia
About The Southern Cross
The Southern Cross Financial Group Pty Ltd provides management-
consulting services. The company is located in New South Wales,
Australia.
================================
C H I N A & H O N G K O N G
================================
BT ASIA: Liquidators Resign from Posts
--------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey quit as the
liquidators of BT Asia Limited on April 18, 2007.
The former Liquidators can be reached at:
Lai Kar Yan (Derek)
Darach E. Haughey
35th Floor, One Pacific Place
88 Queensway
Hong Kong
CENTRE RISE: Wind-Up Petition Hearing Set for May 30
----------------------------------------------------
On March 24, 2007, China Merchants Bank Company Limited filed a
petition to wind up the operations Centre Rise Trading Limited.
The petition will be heard before the High Court of Hong Kong on
May 30, 2007, at 9:30 a.m.
China Merchants' solicitors are:
Paul, Hastings, Janofsky & Walker
22nd Floor, Bank of China Tower
1 Garden Road
Hong Kong
CHINA CONSTRUCTION: Plans 10-Year CNY40 Billion Bond Issue
----------------------------------------------------------
China Construction Bank Corp. is planning to offer up to CNY40
billion (US$5.19 billion) of bonds with maturities of not less
than 10 years, Reuters reports, citing a bank statement as its
source.
According to the bank, it might choose to issue about CNY5
billion of subordinated bonds in Hong Kong out of the total,
with proceeds to be used for increasing its capital adequacy
ratio.
The issue is subject to the approval of shareholders and
relevant Chinese regulatory authorities, Reuters relates. The
bonds will be offered to the national inter-bank bond market
with annual interest payments.
* * *
The China Construction Bank -- http://www.ccb.cn/-- is one of
the "big four" banks in the People's Republic of China. It was
founded on October 1, 1954, under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.
The Troubled Company Reporter - Asia Pacific reported on
Nov. 20, 2006, that Fitch Ratings affirmed the bank's 'D'
individual rating.
HEROES INDUSTRIAL: Faces BII's Wind-Up Petition
-----------------------------------------------
On March 29, 2007, BII Finance Company Limited filed a petition
to wind up the operations of Heroes Industrial Limited.
The petition will be heard before the High Court of Hong Kong on
June 6, 2007, at 9:30 a.m.
BII's solicitor is:
To, Lam & Co.
Units 1503B-1504, 15th Floor
Wing On House, 71 Des Voeux Road
Central, Hong Kong
MULTI DRAGON: Court to Hear Wind-Up Petition on May 23
------------------------------------------------------
On March 19, 2007, Wong Kam Po filed a petition to wind up the
operations of Multi Dragon International Trading Limited.
The petition will be heard before the High Court of Hong Kong on
May 23, 2007, at 9:30 a.m.
NOVARIO INTERNATIONAL: Wind-Up Petition Hearing Set for May 30
--------------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up the
operations of Novario International Limited May 30, 2007, at
9:30 a.m.
Macro Corporate Consultants Limited filed the petition against
the company on March 23, 2007.
Macro Corporate's solicitor is:
Wong & Company
16th Floor, No. 579 Nathan Road
Kowloon, Hong Kong
SOFTBRANDS (HK): Appoints Ying Tze Yeuk as New Liquidator
---------------------------------------------------------
On April 20, 2007, Ying Tze Yeuk replaced Wong Hon Lam as the
liquidator of SoftBrands (HK) Limited.
Mr. Ying can be reached at:
Ying Tze Yeuk
502 Hang Bong Commercial Centre
28 Shanghai Street, Kowloon
Hong Kong
STANLEIGH INTERNATIONAL: Liquidator Resigns from Post
-----------------------------------------------------
On April 17, 2007, John Robert Lees resigned from his post as
the liquidator of Stanleigh International Limited.
The former Liquidator can be reached at:
John Robert Lees
John Lees & Associates Limited
1904, Hong Kong Club Building
3A Chater Road, Central
Hong Kong
TETRA PAK: Liquidators Quit Posts
---------------------------------
Rainier Hok Chung Lam and John James Toohey quit as the
liquidator of Tetra Pak East Asia Limited on April 11, 2007.
The former Liquidators can be reached at:
Rainier Hok Chung Lam
John James Toohey
22nd Floor, Prince's Building
Central, Hong Kong
VICTORY PACIFIC: Final General Meeting Set for May 28
-----------------------------------------------------
Victory Pacific (Hong Kong) Limited will hold a final general
meeting on May 28, 2007, at 10:00 a.m., to receive the
liquidator's report about the company's wind-up proceedings and
property disposal.
The meeting will be held on the 12th Floor, No. 3 Lockhart Road
in Wanchai, Hong Kong.
WELL CHIEF: Members to Hold Final General Meeting on May 28
-----------------------------------------------------------
The members of Well Chief Investments Limited will have their
final general meeting on May 28, 2007, at 10:00 a.m., to hear
the liquidator's report about the company's wind-up proceedings
and property disposal.
The meeting will be held on the Ground Floor at 218 Cheung Sha
Wan Road in Shamshuipo, Kowloon.
WIDELAND FOUNDATION: Creditors Must Prove Debts by May 28
---------------------------------------------------------
On April 16, 2007, Wideland Foundation Limited entered wind-up
proceedings through a special resolution passed on that day.
Liang Cheung Biu, the appointed liquidator, requires the
company's creditors to file their proofs of debt by May 28,
2007.
Failure to do so will exclude a creditor from sharing in the
company's dividend distribution.
The Liquidator can be reached at:
Liang Cheung Biu, Thomas
401 Wing On House
71 Des Voeux Road Central
Hong Kong
WING SHING: Placed Under Voluntary Wind-Up
------------------------------------------
At an extraordinary general meeting held on April 25, 2007, the
members of Wing Shing Sea Food Company Limited agreed to
liquidate the company's business.
Chan Yuk Tan, the appointed liquidator, is receiving proofs of
debt from the company's creditors until May 31, 2007.
The company's Liquidator can be reached at:
Chan Yuk Tan
Flat B, 1st Floor, Wing Shing Building
355-359 Queen's Road West
Hong Kong
=========
I N D I A
=========
BRITISH AIRWAYS: Delisting American Depositary Shares from NYSE
---------------------------------------------------------------
The board of directors of British Airways plc has approved the
delisting of BA's American Depositary Shares, each representing
the right to receive ten ordinary shares of the company, from
the New York Stock Exchange and the deregistration of the
company and termination of its reporting obligations under the
Securities Exchange Act of 1934.
The company has provided written notice to the NYSE of its
intent to delist. The company intends to file a Form 25 with
the U.S. Securities and Exchange Commission on or about May 8 to
effect the delisting. By operation of law, the delisting will
be effective ten days after this filing (unless the Form 25 is
earlier withdrawn by the company). The company reserves the
right to delay the filing of the Form 25 or withdraw the Form 25
for any reason prior to its effectiveness.
The company intends to file a Form 15F with the SEC to
deregister and terminate its reporting obligations under the
Exchange Act as soon as practicable following June 4 the date
when the revised SEC rules on deregistration become effective.
By operation of law, the deregistration will be effective 90
days after the filing, unless the Form 15F is earlier withdrawn
by the company. The company reserves the right to delay the
filing of the Form 15F or withdraw the Form 15F for any reason
prior to its effectiveness.
The company intends to maintain its American Depositary Receipt
facility with Citibank as a Level I program. This means that
the company's ADSs will be traded on the over-the-counter
market. Accordingly, the company has not arranged for the
listing of its ADSs or ordinary shares on another national
securities exchange or for the quotation of its ADSs or ordinary
shares in a quotation medium in the United States. The
company's ordinary shares will continue to trade on the London
Stock Exchange.
"British Airways will continue to comply with the Combined Code
on Corporate Governance and the UKLA Listing Rules," British
Airways Chief Financial Officer Keith Williams said. "As only
three percent of our shares are held in the ADS program and the
average trading volume for the year ended March 31, 2007 was
less than five percent, it no longer makes sense from a cost and
administrative perspective to submit to the reporting
obligations under the Exchange Act. This decision is entirely
consistent with our strategy of simplification as it reduces
cost and complexity without in any way detracting from the
integrity of our governance and control processes."
The company expects to continue to publish its Annual Report and
Accounts and other documents and communications in accordance
with Exchange Act Rule 12g3-2 on its Investor Relations Web site
http://www.bashares.com
The board has decided to delist from the NYSE and deregister
under the Exchange Act in accordance with the new SEC rules to
reduce both the costs and complexity of complying with two sets
of regulations that are substantively quite similar. This is in
line with the company's strategy of simplification which it has
been pursuing since the Future Size and Shape program was
disclosed in 2002 and should reduce its costs by around GBP10
million annually (including GBP5 million paid to external
parties).
About British Airways
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited. BA has offices in India and Guatemala.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa, the rating
agency confirmed its Ba1 Corporate Family Rating for British
Airways Plc.
Moody's also assigned a Ba1 Probability-of-Default Rating to the
company.
* Issuer: British Airways, Plc
Projected
Old Debt New Debt LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
GBP100-million 10.875%
Sr. Unsec. Regular
Bond/Debenture
Due 2008 Ba2 Ba2 LGD5 84%
GBP250-million 7.25%
Sr. Unsec. Regular
Bond/Debenture
Due 2016 Ba2 Ba2 LGD5 84%
* Issuer : British Airways Finance (Jersey) L.P.
EUR300-million
Preferred Stock B1 Ba3 LGD6 97%
In March 27, Standard & Poor's Ratings Services said that its
'BB+' long-term corporate credit rating on British Airways PLC
remains on CreditWatch, with positive implications, following a
vote on March 22 by EU ministers approving a proposed "open
skies" aviation treaty with the U.S.
GENERAL MOTORS: CEO Takes the Challenge to Beat Toyota's Sales
--------------------------------------------------------------
In response to Toyota Motor Corp.'s disclosure early this week
that it topped General Motors Corp. in quarterly sales for the
first time, GM Chairman and Chief Executive Rick Wagoner vowed
to "fight hard for every sale," the Associated Press reports.
AP cited Mr. Wagoner as saying that GM's business strategies
around the globe were working and would help the auto
manufacturer succeed.
"We still have the majority of the year in front of us, and we
will fight hard for every sale -- all the while staying focused
on our long-term goals as a global, growing company," Mr.
Wagoner said in an email obtained by AP.
Toyota said it sold 2.35 million vehicles world-wide in the
first quarter of 2007, AP relates, citing preliminary figures.
Early this month, GM said in a press statement that for the
first quarter of 2007, the company delivered 909,094 vehicles, a
decline of 5.6%, driven by reductions of almost 60,000 daily
rental vehicle sales. GM's retail sales for the first quarter
of 2007 were up 0.5%. The reductions in fleet sales have
resulted in a significant improvement in the retail/fleet mix,
the company explained.
In addition, GM Latin America, Africa and Middle East region set
a new first quarter sales record in 2007, selling over 269,000
vehicles, up approximately 39,000 units over the same period
last year. GM said its quarterly market share in the region
increased 0.2% to 16.3%.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader for 76 years. GM currently employs about 280,000 people
around the world. GM manufactures its cars and trucks in 33
countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. In 2006, nearly 9.1
million GM cars and trucks were sold globally 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.
ICICI BANK: Qatar Regulator Grants License to Set Up Branch
-----------------------------------------------------------
The Qatar Financial Centre Regulatory Authority has granted
ICICI Bank Ltd a license to set up a branch in the QFC. The
license was given after due diligence by the QFCRA and the
Reserve Bank of India, the Gulf Times Newspaper relates.
"ICICI bank has become the first Indian bank to receive a
license from QFCRA and sees significant opportunities to
participate in the growth of the Qatari economy," newKerala.com
quotes ICICI Senior General Manager Nimesh Shah as saying.
The QFC branch is the bank's fourth office in the member
countries of the Gulf Cooperation Council.
The bank named Meenal Mahajan as resident manager for the new
branch.
With the pace of economic growth and development in Qatar, the
bank reportedly sees a significant opportunity to participate in
the growth of the country.
According to The Economic Times, the QFC is a business and
financial centre located in Doha, providing world-class legal
and business infrastructure for financial services. The Centre
was set up in 2005.
India-based ICICI Bank Ltd -- http://www.icicibank.com-- is a
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services. The bank
operates in two business segments: consumer and commercial
banking, and investment banking. ICICI has a network of over
741 branches and over 3,300 ATMs in India.
* * *
Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.
ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.
ICICI BANK: Sets Up INR100-Cr. Fund for Eco-Friendly Businesses
---------------------------------------------------------------
ICICI Bank Ltd has set up a INR100-crore fund to assist
businesses supporting eco-friendly activities.
The fund would provide "green businesses" with short to medium-
term loans ranging between INR5 lakh and INR40 lakh to small and
medium enterprises, The Economic Times says citing a company
statement. The bank, however, did not specify any particular
sector for lending but would focus on energy-efficient and
environment-friendly ventures, The Times notes.
Set up only on April 25, the fund aims to promote sustainable
growth.
"The INR100-crore fund is the initial effort, let's see how we
take it forward," various reports quote the bank's Deputy
Managing Director, Nachiket Mor, as saying.
India-based ICICI Bank Ltd -- http://www.icicibank.com-- is a
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services. The bank
operates in two business segments: consumer and commercial
banking, and investment banking. ICICI has a network of over
741 branches and over 3,300 ATMs in India.
* * *
Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.
ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.
IFCI LTD: Can't Convert Into a Bank, RBI and India Gov't. Say
-------------------------------------------------------------
India's Finance Ministry and the Reserve Bank of India have
decided not to allow IFCI Limited to convert itself into a bank,
Sidhartha Kumar, writing for The Times of India, said on Friday.
As reported in the Troubled Company Reporter - Asia Pacific on
April 12, IFCI plans to sell up to 26% of fresh equity to a
foreign investor to raise as much as US$250 million.
India Infoline, in an April 14 report, said that five to six
Indian funds, and seven to eight foreign entities have
approached Ernst & Young to show their interest in acquiring a
stake in IFCI. IFCI has tapped Ernst & Young to help the
company look for a strategic investor. Foreign banks like
Citigroup, Barclays, Morgan Stanley and ABN Amro Bank have
reportedly shown interest in the company.
Citing unnamed sources, The Times reported that the Finance
Ministry and RBI decided against altering IFCI's character
because they felt that there was still room to have an entity
that provides long-term funds for industrial and infrastructure
financing.
According to Mr. Kumar, Foreign banks and non-banking financial
companies showed interest in acquiring a stake in IFCI in the
hope that the government will allow them to convert the firm for
it to turnaround completely.
Foreign banks are only limited to hold as much as 10% stake of
Indian banks but limit on Foreign Direct Investment is 74%, The
Times notes.
IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector. The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services. Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.
Non-project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project. Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
April 3, 2007, Credit Analysis & Research Ltd. retained a CARE D
rating to IFCI's Long & Medium Term Debt aggregating INR91.36
crore. The amount represents the outstanding non-restructured
amount under the Bonds series, which have been rated by CARE.
Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating
at '4'. The outlook on the rating is stable.
INDIA CEMENTS: Net Profit in 4th Quarter Soars to INR1.4 Billion
----------------------------------------------------------------
India Cements Ltd's net profit in the fourth quarter ended
March 31, 2007, soared to INR1.4 billion, more than five times
the INR270.3 million booked in the quarter ended March 31, 2006.
The company's record performance was due to cost abatement
measures and an improvement in sales volume and prices, the
Business Standard relates. "With a tight leash on costs, most
of the top line increase could be carried through to the bottom
line," the news agency says, citing a company statement.
The company's total income (net of excise) increased 36% from
INR4.25 billion in the quarter ended March 31, 2006, to INR5.8
billion for the latest quarter under review. The company's
operating expenses only increased by 11%, to INR3.9 billion in
the March 2007 quarter from INR3.5 billion in the same quarter
last year.
A copy of the company's unaudited financial results for the
quarter ended March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1e10
For the year ended March 31, 2007, the company's net profit
skyrocketed to INR4.5 billion, almost nine times the INR453.1
billion recorded in the previous financial year. Total Income
(net of excise) increased from INR15.490 billion in FY2005-06 to
INR20.6 billion in FY2006-07.
Higher price realization, reduction in power cost and increased
proportion of blended cement enabled the company to achieve a
higher gross margin of 32.62% against 17.32% in 2005-06, The
Hindu quoted India Cement Vice Chairman and Managing Director,
N. Srinivasan, as saying.
A copy of the company's financial results for the year ended
March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1e11
According to the company, its accumulated losses have been wiped
out and it has redeemed 25,00,000 of its 11.5% redeemable
cumulative preference shares of INR100 each, and paid on March
30, 2007:
-- arrears of preference dividend for the financial years
2001-02 to 2005-06; and
-- interim preference dividend for the year 2006-07.
Headquartered in Chennai, India Cements Limited --
http://www.indiacements.co.in/-- manufactures and markets
cement under the brand name Coromandel cement. The Company was
established in 1946 and the first plant was set up at
Sankarnagar in Tamilnadu in 1949. Since then, it has grown in
stature to seven plants spread over Tamilnadu and Andhra
Pradesh.
The company was prompted to undertake debt restructuring plans
in 2003. The company reduced interest costs, improved capacity
utilization, implemented voluntary retirement schemes and raised
equity. All these initiatives helped the firm bring down its
debt under the corporate debt restructuring program from
INR1,700 crore to the current INR400 crore.
The Troubled Company Reporter - Asia Pacific reported on Mar. 8,
2006, that India Cements successfully reduced its workforce by
1,400 since it started its revival program. The job cuts are
part of the company's continuing corporate debt restructuring.
This concludes the TCR-AP's coverage of India Cements until
circumstances warrant further reporting.
INDIAN OVERSEAS BANK: Net Profit Up 42% in March 31 Quarter
-----------------------------------------------------------
Indian Overseas Bank net profit grew 42% to INR2.9 billion in
quarter ended March 31, 2007, from the INR2.04 billion in the
same quarter last year.
Total income soared 45% to INR19.36 billion in the March 2007
quarter from the INR13.37 billion in the March 2006 quarter.
A copy of the bank's financial results for the quarter ended
March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1e0e
The bank posted a net profit of INR10.08 billion for the year
ended March 31, 2007, where as the same was at INR7.83 billion
for the prior financial year. Total income is INR62.19 billion
for the year ended March 31, 2007, where as the same was
INR49.47 billion for the year ended March 31, 2006.
http://ResearchArchives.com/t/s?1e0f
Headquartered in Chennai India, Indian Overseas Bank --
http://www.iob.com/-- provides consumer and commercial banking
services. The Company provides various banking services,
including saving bank, current accounts, credit facilities and
other services. IOB also provides non-residential Indian
services, personal banking, foreign exchange reserves
collections services, agri business consultancy, credit cards
and e-banking services. It also provides automated teller
machine services. As of March 31, 2006, IOB had five
full-fledged branches overseas: two in Hong Kong, and one each
in Singapore, Seoul and Sri Lanka. The Bank also had an
extension counter in Sri Lanka and a remittance center in
Singapore.
The bank carries Standard & Poor's Ratings Services' 'C' Bank
Fundamental Strength Rating.
Fitch gave the bank a 'D/E' Individual Rating on June 1, 2005.
STEELCASE INC: Repurchases 1.7 Million Shares for US$33 Million
---------------------------------------------------------------
Steelcase Inc. has entered into Share Repurchase Agreements to
repurchase 1,718,750 shares of the company's Class B Common
Stock in a private transaction from trusts affiliated with a
member of the its Board of Directors, for an aggregate purchase
price of US$33 million, or US$19.20 per share.
The repurchase, which was approved by the company's Board of
Directors, will be made under the its previously announced share
repurchase program and is scheduled to close on April 30, 2007.
Following this transaction, the company will have approximately
US$17.5 million remaining in its share repurchase program.
Headquartered in Grand Rapids, Michigan, Steelcase, Inc.,
(NYSE: SCS) -- http://www.steelcase.com/-- designs and
manufactures architecture, furniture and technology products.
Founded in 1912, Steelcase serves customers through a network of
more than 800 independent dealers and approximately 13,000
employees worldwide. The company has Asian presence, including
in Australia, China, Hong Kong, Indonesia and India.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 9, 2006, 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 Steelcase and its Ba1 rating on the company's
US$250 million senior unsecured notes. Additionally, Moody's
assigned an LGD4 rating to those bonds, suggesting noteholders
will experience a 59% loss in the event of a default.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Supplies Mobile TV Solution to SIC TV
-----------------------------------------------------
Alcatel-Lucent has been selected by SIC TV, a leading Portuguese
private television broadcaster to supply a mobile TV solution.
The solution will enable SIC to create mobile TV programs
allowing Portuguese consumers equipped with video-enabled mobile
handsets to experience and enjoy more television content.
The supplied solution includes Alcatel-Lucent's Media Producer,
a superior and reliable automation platform for the creation of
mobile TV content. By allowing easy and flexible reformatting
of different types of content for mobile handsets, as well as
the creation of play list-style programming, the solution is
ideally suited to respond to the needs of both content providers
and broadcasters. Alcatel-Lucent's Media Producer will allow
SIC TV to blend live programs and on-demand content, seamlessly
to consumers.
Joao Pedro Galveias, Director of SIC Multimedia and Thematic
Channels declared, "SIC TV Channel has, since the start, been on
the edge of new content and media solutions and now, with the
widespread availability of technologies like 3G, TV over
broadband and interactive TV, mobile handsets have become an
important delivery mechanism for broadcasters and communication
providers. The Alcatel-Lucent solution will allow us to freely
and cost-effectively create, shape, format, and distribute video
content over the new mobile SIC TV Channel."
"SIC has been leading the way on converged services that connect
television with telecom and, for that reason, it has been
working closely with the Alcatel-Lucent innovation center in
Cascais, Portugal on several innovative projects," added Olivier
Picard, President of Alcatel-Lucent's Europe and South
activities. "Our leadership in converged applications and
expertise in understanding and simplifying the delivery of
complex mobile TV solutions further confirms that Alcatel-Lucent
is an ideal partner for providing mobile multimedia solutions,
bringing broadcasters, mobile operators and content owners new
business revenue opportunities."
Alcatel-Lucent media solutions include mobile interactive TV
applications, which allow extensive interactivity and
personalization, complementing traditional live TV with made-
for-mobile content, creating the possibility to provide targeted
advertisement supported content to end users.
Alcatel-Lucent is committed to support service providers in
delivering a truly converged TV experience. Alcatel-Lucent has
already established a leading position in interactive TV
services, and already enables TV, video and music services for
more than 115 fixed and mobile service providers around the
world.
About SIC TV
On October 1992, SIC TV station started its emissions, the first
private television channel in Portugal that, after a three years
period, was confirmed as an audience leader. Its quality, image
and independence allowed the TV station to have a privileged
relationship with the Portuguese viewers granting it the
audience's leadership over the past ten years in the Portuguese
market, each time more competitive and dynamic. On 2000, SIC TV
station started a new expansion cycle developing new areas of
activity. This expansion cycle allowed SIC, furthermore to the
main channel, to include the news channel leader on cable
audiences (SIC Noticias), SIC Multimedia with its three thematic
channels, SIC Radical, SIC Mulher and SIC Comedia and the
biggest Web site within the media segment (SIC Online) and SIC
Indoor. To these activities, the satellite broadcast channel SIC
International was added, with emissions broadcasted to the five
continents covering the Portuguese communities spread all over
the world, and also other interests on the merchandising
segments, production means - with SIC Servicos, and Contents
supply.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises, and governments worldwide
to deliver voice, data and video communication services to end-
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.
The company has operations in Indonesia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
* * *
As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's Ratings
Services' BB rating. Its Short-Term Corporate Credit rating
stands at B.
Moody's Investor Services, on the other hand, put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
Fitch Ratings rates Alcatel's Issuer Default Rating and Senior
Unsecured Debt rating at BB.
ALCATEL-LUCENT: Finishes Installation of Cable Network for Maroc
----------------------------------------------------------------
Alcatel-Lucent has completed for Maroc Telecom, the leading
telecommunication operator in Morocco, the manufacturing and
installation of the Atlas Offshore submarine cable network,
linking the cities of Asilah in Morocco, to Marseille in France.
Directly interconnecting Maroc Telecom with the various European
operators, Atlas Offshore supports the growth and convergence of
fixed and mobile services. This submarine cable network landed
in Marseille last week in the presence of representatives from
Maroc Telecom and Alcatel-Lucent.
Spanning more than 1,630 km, Atlas Offshore strengthens regional
connectivity and high-speed access capabilities. It offers
advanced restoration capabilities and serves as backhaul
infrastructure to the existing Eurafrica submarine system -
3,200 km connecting France, Morocco and Portugal - and to Sea-
Me-We 3. With a 320 Gbit/s design capacity, Atlas Offshore
secures existing international links and enhances Maroc
Telecom's network capacity. Thus, Maroc Telecom will be able to
deliver high-speed services such as high-speed Internet, TV over
ADSL, mobile data services, and off-shoring activities.
This new connection confirms Marseille as a crucial
communication hub, being at the crossroad of the Sea-Me-We 3,
Sea-Me-We 4 and Med-Cable submarine networks, all landed by
Alcatel-Lucent. Atlas Offshore will further contribute to the
city's economic development and of the many small and medium
enterprises created over the past years in business segments
including petrochemicals, microelectronics, telecommunications
and oceanic engineering.
"This new submarine network contributes to improving global
connectivity for both consumers and business," said Jean
Godeluck, President of Alcatel-Lucent's submarine networking
activities. "Alcatel-Lucent's submarine technology delivers the
benefits of maximum network effectiveness to support Maroc
Telecom in best serving its end-users."
Alcatel-Lucent supplied its managed, regional solution
associating highly-reliable cables and repeaters - installed by
the Ile de Sein, one of Alcatel-Lucent's dedicated and most
powerful installation cable ships - with its 1620 Light Manager
dense wavelength division multiplexing submarine line terminal.
Alcatel-Lucent also provided its 1678 Metro Core Connect for
terrestrial applications.
As part of the Euro 26 million turnkey contract signed in July
2006, Alcatel-Lucent has been in charge of the design,
manufacturing, installation, commissioning, integration and
testing of the entire system, along with post-commissioning
support.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises, and governments worldwide
to deliver voice, data and video communication services to end-
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.
The company has operations in Indonesia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
* * *
As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's Ratings
Services' BB rating. Its Short-Term Corporate Credit rating
stands at B.
Moody's Investor Services, on the other hand, put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
Fitch Ratings rates Alcatel's Issuer Default Rating and Senior
Unsecured Debt rating at BB.
ALCATEL-LUCENT: Sells Geel Plant to tbp Electronics
---------------------------------------------------
Alcatel-Lucent in Belgium signed the closing agreement to sell
the manufacturing activities at Geel (Belgium) to tbp
electronics B.V. These activities will be incorporated in a new
company named tbp electronics Belgium. As previously revealed
in February of this year, the terms of the agreement include,
among other things, the transfer of all customer contracts,
manufacturing assets and all employees to the newly incorporated
company. On May 1, the 319 employees will transfer to tbp
electronics Belgium.
The formation of tbp electronics Belgium together with tbp
electronics B.V. will create one of the major electronics-
manufacturing providers in the Benelux region with an extensive
customer base, complementary know-how and expertise with full
flexibility for prototyping and low- to medium-volume
production.
The agreement will enable the manufacturing plant in Geel to
further grow its external market business focused on advanced
electronics manufacturing services for high-tech products.
Geel's strategy -- the transformation from a pure volume
production plant focused on Alcatel-Lucent internal needs to an
EMS Service provider for external customers - has proven very
successful in the last years.
About tbp electronics B.V.
tbp electronics, founded in 1976 by Ton Plooy, head-quarters are
located in Dirksland is a well respected leading company in the
Benelux and market leader in state of the art printed circuit
assembly, high-tech electronics production and wiring of
cabinets for the telecom, medical, semiconductor and industrial
sector. Using special purpose CAD/CAM software and logistics
applications, advanced pick & place machines, and specialized in
a wide range of test solutions, tbp is one of the forerunners in
production innovation in its industry. Major customers include
Honeywell, ASML, Philips Medical Systems. Employing more than a
hundred highly qualified staff members tbp is one of the largest
producers in its field. tbp produces according to the ISO
9001:2000, AQAP-2120:2003 and IEC 61508 quality certificates.
For more information visit tbp electronics on the internet:
http://www.tbp.nl
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises, and governments worldwide
to deliver voice, data and video communication services to end-
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.
The company has operations in Indonesia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
* * *
As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's Ratings
Services' BB rating. Its Short-Term Corporate Credit rating
stands at B.
Moody's Investor Services, on the other hand, put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
Fitch Ratings rates Alcatel's Issuer Default Rating and Senior
Unsecured Debt rating at BB.
AVNET INC: Reports US$105MM Net Income in Qtr. Ended March 31
-------------------------------------------------------------
Avnet, Inc. reported net income, including certain charges, of
US$105.2 million, or US$0.70 per diluted share, for its third
quarter fiscal 2007 ended March 31, 2007. Restructuring,
integration and other charges negatively impacted current
quarter net income by US$4.2 million after-tax, or US$0.03 per
diluted share. This compares with net income for the third
quarter fiscal 2006 of US$71.2 million, or US$0.48 per share on
a diluted basis, which included a US$4.0 million after-tax
charge, or US$0.03 per diluted share, related to restructuring
and other charges partially offset by a gain on the sale of
businesses. Excluding certain charges in both periods, net
income of US$109.4 million and diluted earnings per share of
US$0.73 reached record levels in the third quarter of fiscal
2007, up 45% and 43%, respectively, as compared with the prior
year quarter. Included in these results is stock compensation
expense of US$0.03 and US$0.02 per diluted share in the current
and prior year third quarters, respectively.
The Company also reported that in conjunction with its
acquisition of Access Distribution and reflecting recent
industry trends it has reviewed its method of recording revenue
related to the sales of supplier service contracts and has
determined that such sales will now be classified on a net
revenue basis rather than on a gross basis. Although this
change reduces reported sales and cost of sales for the
Technology Solutions operating group, it has no impact on
operating income, net income, cash flow or the balance sheet and
will increase profit margins somewhat. Avnet's sales of
supplier service contracts amounted to approximately US$400
million in calendar 2006, or less than 3% of Avnet's
consolidated sales. Including this change and sales from
Access, which was acquired on December 31, 2006, the Company
reported third quarter fiscal 2007 consolidated sales of US$3.90
billion, up 8.0% as compared with sales of US$3.61 billion in
last year's third quarter. Pro forma sales, including sales of
Access in the prior year period and the change related to the
sale of supplier service contracts and excluding sales from
divested businesses, were up 1% as compared with a year ago.
Revenues would have been US$4.09 billion in the current year
quarter had sales of supplier service contracts been recorded on
a gross basis.
The results for the third quarters of fiscal 2007 and 2006
include certain items as described herein, the mention of which
management believes is useful to investors when comparing
operating performance with prior periods. More detail on the
reasons for providing this information are set forth in the Non-
GAAP Financial Information section which appears herein. The
items affecting the current fiscal year third quarter are
described below and the items affecting the prior year quarter
are described herein.
Third Quarter Fiscal 2007:
* Restructuring and other charges including severance,
integration costs, write-down of certain assets and other
charges resulting primarily from the Company's acquisition
and integration of Access into Avnet's existing business
and other cost reduction initiatives.
* An additional gain due to a contingent purchase price
payment received on the sale of Technology Solutions'
single tier businesses in the Americas.
Operating income in the current quarter was US$172.6 million, a
third quarter record, up 42% as compared with the third quarter
fiscal 2006 operating income of US$121.9 million, both periods
including certain charges described in the tables herein.
Excluding these charges, current quarter operating income was a
third quarter record US$181.1 million, up 30.4% over last year's
operating income of US$138.9 million. Operating income as a
percentage of sales, excluding the charges noted above, was 4.6%
in the third quarter fiscal 2007.
Roy Vallee, Chairman and Chief Executive Officer, commented,
'This quarter has many exciting highlights and the one that is
most significant is our operating income margin expansion
despite relatively weak sales. Without the impact of the change
related to sales of supplier service contracts mentioned above,
the March 2007 quarter marks the first time that we have
delivered operating margins at both operating groups and at the
enterprise level within the range of our long-term goals. This
steady improvement has been consistent across both operating
groups and all three regions. The focus and discipline that we
have instilled in the organization over the last several years
while implementing a value based management philosophy has had a
dramatic impact on our financial results. This strong Q3
performance drove our rolling 4 quarter return on capital
employed to almost 11% as we continue to progress towards our
goal of 12.5%. We are building an organization that is
consistently delivering long-term shareholder value creation.'
Electronics Marketing sales of US$2.44 billion in the third
quarter fiscal 2007 were essentially flat year over year and up
1.6% when adjusted for divestitures. EM sales in EMEA increased
7.4% year over year while the Americas and the Asia regions
decreased 5.9% and 1.1%, respectively. Excluding divestitures
and the impact of foreign currency translation, year over year
growth at EM EMEA was 3.4%. EM operating income of US$141.6
million for third quarter fiscal 2007 was up 15.4% over the
prior year third quarter operating income of US$122.8 million
and operating income margin of 5.8% was up 77 basis points over
the prior year quarter representing the fifth consecutive
quarter of operating margin in excess of 5.0%.
Mr. Vallee added, 'Reaching our long-term business model range
at Electronics Marketing for operating income margin is a
significant milestone and I applaud our global team for reaching
this vital milestone. Despite slower sales growth, we are
encouraged by the positive book to bill ratio for the quarter
and are very pleased with the continuing improvement in our
financial metrics. The continued focus on profitable growth and
operational efficiency is having a positive impact on gross
margin as well as on operating income and margin at EM. This
improvement is not limited to the income statement as
improvements in working capital metrics drove working capital
velocity to a record 4.8 times at Electronics Marketing in the
third quarter of fiscal 2007. The combination of higher margins
and working capital velocity raised EM's return on working
capital by 387 basis points over the prior year quarter,
approaching our 30% goal.'
Technology Solutions sales of US$1.46 billion in the third
quarter fiscal 2007 were up 25.0% year over year on a reported
basis and essentially flat on a pro forma basis when adjusted
for the acquisition of Access Distribution, the divestiture of
Avnet Enterprise Solutions and the change related to the sales
of supplier service contracts. On a pro forma basis, third
quarter fiscal 2007 sales in the Americas and EMEA were down
0.6% and 1.3%, respectively, year over year while sales in Asia
were up 1.8%. TS operating income was US$60.6 million in the
third quarter fiscal 2007, a 61.0% increase as compared with
third quarter fiscal 2006 operating income of US$37.6 million,
and operating income margin of 4.2% increased by 93 basis points
over the prior year third quarter, benefited in part by the net
revenue treatment of the sales of supplier service contracts.
Mr. Vallee further added, 'With the addition of Access
Distribution, Technology Solutions added roughly US$2 billion of
annualized revenue along with an expanded customer and supplier
base. The integration of the Access business into Avnet's
Technology Solutions Group is proceeding on schedule and we
anticipate the integration being essentially complete by the end
of June 2007 with projected annual costs savings of at least
US$15 million. Although total TS sales came in below
expectations as a result of severe weakness in microprocessors,
TS delivered its fifteenth straight quarter of year-over-year
improvement in operating income dollars and margin, excluding
the change related to the sales of supplier service contracts.'
During the third quarter of fiscal 2007, the Company generated
US$251 million of free cash flow excluding cash used for
acquisitions. As a result, the Company ended the quarter with
US$337 million of cash and cash equivalents and net debt of
US$930 million. During the quarter, the Company completed a
debt offering of US$300 million aggregate principal amount of
5.875% Notes due 2014 and used the net proceeds to repay
borrowings under its revolving credit facility and its accounts
receivable securitization program that were used to fund the
acquisition of Access.
Ray Sadowski, Chief Financial Officer, stated, 'Once again, our
earnings growth and disciplined working capital management
allowed us to generate a significant amount of free cash flow
before taking into account cash used for acquisitions. When you
combine the second and third quarters of fiscal 2007, we
generated US$486 million of free cash flow excluding cash used
for acquisitions which was more than the cash used to acquire
Access Distribution; thereby, in essence, paying for the
acquisition from cash generated since the transaction was
announced. Also during the quarter, we were able to complete a
debt offering at a very attractive interest rate giving us more
flexibility to fund future growth and improve shareholder
returns.'
Outlook
For Avnet's fourth quarter fiscal 2007, management expects sales
at EM to be in the range of US$2.42 billion to US$2.52 billion
and anticipates sales for TS to be between US$1.68 billion to
US$1.78 billion. Therefore, Avnet's consolidated sales are
forecasted to be US$4.10 billion to US$4.30 billion for the
fourth quarter of fiscal 2007. Management expects the fourth
quarter earnings to be in the range of US$0.73 to US$0.77 per
share, including approximately US$0.02 per share related to the
expensing of stock-based compensation. The above EPS guidance
does not include the amortization of intangible assets and
additional integration charges related to the acquisition of
Access Distribution, as those amounts have not yet been
determined.
About Avnet Inc.
Headquartered in Phoenix, Arizona, Avnet, Inc. (NYSE:AVT)
-- http://www.avnet.com/-- distributes electronic components
and computer products, primarily for industrial customers. It
has operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and
Sweden.
* * *
Moody's Investors Service upgraded the corporate family and
senior unsecured debt ratings of Avnet, Inc. to Ba1 from Ba2 and
assigned a Ba1 rating to the proposed offering of up to US$250
million senior notes due 2016. The new issue proceeds together
with cash-on-hand and other financial resources will be used to
repurchase not less than US$250 million of the outstanding
US$361.4 million 9.75% senior notes due February 2008. The
ratings outlook is stable.
EXCELCOMINDO PRATAMA: OKs IDR67-Billion Cash Dividend Payout
------------------------------------------------------------
PT Excelcomindo Pratama's shareholders approved IDR67-billion
cash dividend payout for the 2006 fiscal year, the star online
reports, citing AFX-Asia.
According to the report, the payout that will be paid in
June 11 represents 20% of the firm's normalized net income,
after adjusting for unrealized foreign exchange gains amounting
to IDR336 billion.
The shareholders also appointed Dian Siswarini as new network
service director, the report adds.
About Excelcomindo Pratama
Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/-- provides wireless telecommunications
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
services. In addition, Excelcomindo provides voice, data and
other value-added cellular telecommunications services. Its
product lines include jempol, bebas and xplor. The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
all centers. Excelcomindo starter packs and voucher reloads are
also sold by independent retailers.
Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%. TM and
its parent Khazanah together hold 73.7% in XL.
* * *
A Feb. 7, 2007 report by the Troubled Company Reporter - Asia
Pacific stated that Moody's Investors Service revised the
outlook to positive from stable on Excelcomindo Finance Company
B.V.'s Ba3 foreign currency senior unsecured bond rating. The
bond is irrevocably and unconditionally guaranteed by PT
Excelcomindo Pratama. This rating action follows Moody's
decision to revise the rating outlook on Indonesia's Ba3 foreign
currency sovereign ceiling to positive.
At the same time, Moody's affirmed the Ba2 local currency
corporate family rating of Excelcomindo Pratama. The outlook
for the rating remains stable.
Fitch Ratings, on June 5, 2006, upgraded PT Excelcomindo
Pratama's Long-term foreign currency and local currency Issuer
Default Ratings to 'BB-' from 'B+'. The outlook on the ratings
is stable.
HILTON HOTEL: Sells 132 Hotel Scandic Chain for EUR833 Million
--------------------------------------------------------------
Hilton Hotels Corporation completed the sale of the 132 hotel
Scandic chain to EQT for EUR 833 million or approximately US$1.1
billion. Net proceeds after transaction costs and taxes are
expected to be approximately US$1.04 billion and will be used to
pay down debt.
This transaction is expected to reduce the company's 2007
recurring EPS by US$.10 per share.
About Hilton Hotels
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.
* * *
In March 2007, Standard & Poor's Ratings Services raised its
corporate credit and senior unsecured ratings on Hilton Hotels
Corp. to 'BB+' from 'BB' and removed the ratings from
CreditWatch where they were placed with positive implications on
Jan. 31. S&P said the outlook is stable.
In February 2007, Moody's Investors Service upgraded Hilton
Hotels Corporation's corporate family rating to Ba1 from Ba2
reflecting a reduction in leverage from a faster than expected
pace of asset sales and strong earnings during 2006. Adjusted
debt to EBITDAR has improved to around 5.0x from 6.0x in January
2006.
HILTON HOTELS: To Sell 10 Hotels for EUR566 Million
---------------------------------------------------
Hilton Hotels Corporation plans to sell up to 10 hotels to a
fund managed by Morgan Stanley Real Estate for approximately
EUR566 million. Assuming completion of the sale of all 10
hotels, net proceeds after property level debt repayment, taxes
and transaction costs are expected to be approximately EUR450
million. Proceeds from the sale will be used to pay down debt.
Based on trailing 12-month earnings from the 10 hotels before
interest, taxes, depreciation and amortization, the sale price
represents an EBITDA multiple of approximately 15.2x.
Hilton and Morgan Stanley Real Estate have agreed to long-term
management contracts on five of the 10 hotels, including the
Hiltons in Dusseldorf, Dresden, Paris Charles de Gaulle,
Strasbourg and Zurich. Morgan Stanley Real Estate has agreed to
make an extensive and immediate investment of approximately EUR
18 million in these five hotels. Of the remaining hotels, long-
term management agreements are expected to be established on the
Hilton hotels in Brussels, Barcelona and Luxembourg subject to
Hilton and Morgan Stanley Real Estate agreeing to capital plans.
For the remaining two hotels, the Los Zocos Club Resort is being
sold without an ongoing contract, and Morgan Stanley Real Estate
and Hilton will evaluate the future intent for the Hilton Weimar
in Germany where Hilton branding will remain in place for a
short-term period pending such evaluation.
The sale of seven of the hotels is subject to a number of
conditions including clearance from the European Union
regulators, but is expected to be completed by the end of June
2007. The sales of the remaining three hotels are also subject
to certain conditions and require further legal and statutory
discussions and approvals. Sale of these three hotels is
anticipated to be taking place in the third quarter, 2007.
On completion of these transactions, Hilton will have sold over
US$3 billion of assets that it obtained in the acquisition of
Hilton International in late February 2006, and over US$4.5
billion of assets will have been sold since the company began
its disposition program in 2005.
Robert M. La Forgia, Executive Vice President and Chief
Financial Officer of Hilton Hotels Corporation, commented on the
proposed sale:
"This transaction is a significant step for Hilton as we
continue to focus on our strategy of growing our managed and
franchise business, while reducing asset ownership and
strengthening our balance sheet.
"Morgan Stanley Real Estate is a highly respected real estate
investor and an important business partner and currently owns or
has an interest in 13 Hilton family hotels. This transaction
builds significantly on this relationship and provides a
platform for continued growth of our brands as we look expand
our reach globally."
Hilton was advised by Banc of America Securities Limited. Morgan
Stanley Real Estate was advised by Morgan Stanley.
About Hilton Hotels
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.
* * *
In March 2007, Standard & Poor's Ratings Services raised its
corporate credit and senior unsecured ratings on Hilton Hotels
Corp. to 'BB+' from 'BB' and removed the ratings from
CreditWatch where they were placed with positive implications on
Jan. 31. S&P said the outlook is stable.
In February 2007, Moody's Investors Service upgraded Hilton
Hotels Corporation's corporate family rating to Ba1 from Ba2
reflecting a reduction in leverage from a faster than expected
pace of asset sales and strong earnings during 2006. Adjusted
debt to EBITDAR has improved to around 5.0x from 6.0x in January
2006.
=========
J A P A N
=========
ASAHI LIFE: S&P Upgrades Financial Strength Rating to 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services has raised Asahi Mutual Life
Insurance Company's rating:
* Long-term Counterparty: BB+/Stable/
* Financial Strength Rating: BB+/Stable
The rating actions are based on the Asahi Mutual's improved
capitalization relative to risk, thanks to increased latent
profits on domestic stock holdings and continued accumulation of
retained earnings. The upgrade and outlook revisions also
reflect their stabilized core profit (operating profit net of
capital gains or losses), net of the impact of a drop in foreign
bonds hedged with foreign currency core profits have stabilized
as negative spreads have narrowed, due to improved income on
investments, backed by increased dividends due to the stronger
performance of Japanese corporations.
Risks of a slowdown in the improvement of the company's
financial profiles are limited. Sales of life insurance
products could continue to be impeded in the near term, as
confidence in the insurance industry has been damaged by
revelations of large unpaid insurance claims in the past.
However, the insurers are likely to shift their strategies to
more customer-focused business models, and the impact on sales
is unlikely to last over the medium and long term.
The upgrade of Asahi Life reflects continued improvement of its
capitalization, backed by the stable domestic environment for
asset investment, which has enabled the company to retain
profits in its insurance business. The company's strategy to
focus its operating resources on profitable individual insurance
has also been successful. Its persistency rate and sales force
retention also show noticeable improvement, indicating a
strengthened customer base and higher operational efficiency.
As domestic insurers have also made progress in improving their
financial profiles, Asahi Life's financial profile remains weak
relative to its peers. However, given the current business
climate, this weakness is not as significant as previously in
allowing it to compete with its industry peers. The outlook on
the ratings could be revised to positive if it continues to
strengthen its capitalization by improving its business
franchise and customer base, as it improves retained earnings
both in terms of volume and quality, in addition to
further reduction of asset risks.
About Asahi Mutual
Headquartered in Tokyo, Japan, Asahi Mutual Life Insurance
Company -- http://www.asahi-life.co.jp/-- is a life insurance
company that focuses on individual life insurance. The group
also sells non-insurance products provided by its partners and
provides investment trust products.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
September 18, 2006 Standard & Poor's Ratings Services revised
its outlook to positive from stable on its BB- long- term
counterparty and financial strength ratings on Asahi MutualLife
Insurance Co., reflecting the company's improving financial
profile, competitive position, and customer base. The long-term
ratings were affirmed.
As reported in the Troubled Company Reporter - Asia Pacific on
October 3, 2006, Rating and Investment Information, Inc., has
completed a review of the insurance claims paying ability rating
and commercial paper rating assigned to Asahi Mutual Life
Insurance Co. and upgrades the ratings to BB+ from BB-. The
outlook is stable.
ITOCHU CORP: Wins US$1.1BB Gas Contract With IHI in Algeria
-----------------------------------------------------------
Ahmed Rouaba at Bloomberg News reported, citing Sonatrach, the
North African nation's state-owned energy company, Ishikawajima-
Harima Heavy Industries Co. and Itochu Corp. won a US$1.1
billion contract to build natural gas plants in Algeria. The
contract signing ceremony was held last week in Algiers.
According to Mr. Rouaba, during that ceremony, Sonatrach
Chairman Mohamed Meziane disclosed that Itochu and IHI will
build three lines to process natural gas into fuels such as
propane and butane at Sonatrach's plant in the western coastal
city of Arzew. The three lines will have a total production
capacity of 3 million metric tons a year and construction of
those lines is scheduled to be completed by September 2010, the
report adds.
About Itochu
Itochu Corporation -- http://www.itochu.co.jp/-- is a Japan-
based trading company. It operates in eight business segments.
The Textile segment offers clothing and interior products, such
as wool, synthetic fabrics, silk and others. The Machinery
segment is engaged in the automobile, industrial machinery,
plants and related businesses. The Space, Information and
Multimedia segment is involved in the media network, high
technology and related businesses. The Metal and Energy segment
is involved in the mining, metal, energy and related businesses.
The Living Materials and Chemicals segment is involved in the
precision chemistry, rubber, timber, glass, cement and other
related businesses. The Food segment is involved in the
production, distribution and sale of wheat, rice, corn, frozen
food and others. The Financial, Real Estate, Insurance and
Logistics segment provides financial consultation, real estate,
transportation and other services. The Overseas Corporation
segment is involved in various trading activities.
The company has operations in Bulgaria, France, Colombia, and
Argentina, among others.
Fitch Ratings gave Itochu Corp's long-term local credit issuer a
BB+ rating on October 2, 2005. Fitch had earlier given the
company a BB+ rating for its senior unsecured debt and long-term
foreign credit default on March 10, 2004.
Moody's Investors Service gave the company a Ba1 rating on its
issuer rating and local currency long-term debt and an NP on its
short term rating on Feb. 7, 2005. Moody's had earlier
given the company's senior unsecured debt a Ba1 rating.
ISUZU MOTORS: Agrees to Raise Share in Turkish Joint Venture
------------------------------------------------------------
Isuzu Motors Limited and Anadolu Group have reached an agreement
that Isuzu would raise its share in commercial vehicle
production and sales joint venture, Anadolu Isuzu Otomotive
Sanyi ve Ticaret A.S., from 17% to 20%.
The increase of Isuzu's share will make AIOS Isuzu's equity-
consolidated company, and with this move, Isuzu intends to
strengthen its collaboration with its business partner in
Turkey. AIOS was 54% owned by Anadolu Group, 17% by Isuzu and
13% by Itochu Corporation. Isuzu will purchase approximately 3%
of Anadolu group's holding in the joint venture.
Isuzu has been producing and selling light-duty trucks and
pickup trucks through AIOS in Turkey. Through the increase of
its share in AIOS, Isuzu aims to enhance the manufacturing
function of AIOS. Leveraging the reinforced AIOS, Isuzu plans
to start knockdown assembly of pickup truck, "D-MAX" and
introduce fully remodeled light-duty truck "N Series" to the
Turkish market with an eye to expanding sales in Turkey.
Isuzu also considers sending its executive responsible for
engineering affairs to AIOS for further upgrade of local
technical capabilities.
If this development of stepping up collaboration in Turkey
reinforces operation and secures product competitive edge, Isuzu
will explore a possibility of exporting its products from Turkey
to overseas markets including Europe in the future.
AIOS sold approximately 7,000 units of N-Series and around 3,000
units of pickup trucks in 2006. It plans in 2009 to sell 8,000
units and 4,000 units respectively to contribute to the current
Isuzu initiative of expanding sales of Isuzu commercial vehicles
overseas.
The sales volume of all commercial vehicles in the Turkish
market is approximately 300,000 units per year. Of this market,
light-duty truck segment (including bus and pickup) where Isuzu
is offering its products has around 45,000 units.
Headquartered in Tokyo, Japan, Isuzu Motors Limited --
http://www.isuzu.co.jp/-- is engaged in the manufacture and
sale of automobile, automobile parts, as well as industrial
engines. The company carries products such as light commercial
vehicles (LCVs) and commercial vehicles, which include large-
size trucks and buses, small-size trucks and pickup trucks,
among others. It also manufactures and sells engines and
components. Through its subsidiaries, the company is also
engaged in the provision of logistics services and other
services. The company has offices in Japan, the United States,
Mexico, Belgium, and Thailand, among others.
On April 30, 2004, Japan Credit Rating Agency has upgraded the
ratings of Isuzu Motors Limited on the bonds of the issuer from
B+ to BB.
Rating And Investment Information, Inc. placed a BB rating on
Isuzu Motor's issuer rating and senior debt on July 28, 2005.
JAPAN AIRLINES: To Increase Flight in China & Vietnam Routes
------------------------------------------------------------
Japan Airlines will increase the number of flights it operates
on China and Vietnam routes responding to strong business and
leisure passenger demand to these high growth markets.
From May 31 2007, JAL will increase flight frequency between
Tokyo (Narita) and Guangzhou from 11 to 13 flights per week by
adding two additional round-trip services departing Japan on
Tuesdays and Thursdays.
The airline will start operating an additional 5 round-trip
flights on its Tokyo (Narita) - Beijing route from June 2 2007,
increasing flight frequency between the two capital cities from
14 to 19 flights per week.
Also at the beginning of June, JAL will start offering a daily
service between Nagoya (Centrair) and the northeastern Chinese
city of Tianjin, when it increases flight frequency on the route
from 5 to 7 flights per week.
From June 2, JAL will start operating a Saturday flight between
Tokyo-Ho Chi Minh City increasing convenience for passengers
traveling between Japan and Vietnam. JAL currently offers 5
flights per week between the two cities with departures on
Mondays, Tuesdays, Thursday, Fridays and Sundays.
To accommodate this latest series of flight frequency increases,
JAL will suspend its twice weekly service between Nagoya and
Beijing and will adjust just the days of the week it operates
flights between Tokyo-Hong Kong route.
As a result, JAL's Japan-China network including code shares
will serve 12 cities in China on 28 routes. The total number of
flights offered by JAL between the countries will increase from
276 to 283 flights per week. Including code shares, JAL will
offer 35 flights per week on six routes between Japan and
Vietnam, serving 4 cities in Japan and the cities of Hanoi and
Ho Chi Minh.
From the point of customer convenience and profitability, JAL
will continue to expand flight frequency between Japan and the
high growth markets of China and Vietnam.
As already announced by the airline, out of Osaka JAL also plans
to increase flight frequency on its Hanoi route from May 15,
2007, and on routes serving the Chinese cities of Dalian,
Hangzhou and Qingdao from July 1, 2007.
Earlier this year, JAL increased flight frequency between Nagoya
and Tianjin from 2 to 5 flights per week (from March 1), and
increased the number of flights it operates between
Tokyo-Hanoi route from 2 to 3 flights per week (from March 25).
For further details on the flight changes and schedules you can
visit JAL's website:
http://www.jal.com/en/press/0000969/969.html
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific on October 2, 2006,
reports that Moody's Investors Service has affirmed its Ba3
long-term debt ratings and issuer ratings for both Japan
Airlines International Co., Ltd and Japan Airlines Domestic Co.,
Ltd. The rating affirmation is in response to the planned
restructuring of the Japan Airlines Corporation group on October
1, 2006 with the completion of the merger of JAL's two operating
subsidiaries, JAL International and Japan Airlines Domestic.
JAL International will be the surviving company. The rating
outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. On December 15,
2006, Fitch assigned a BB- rating on the Company, which is three
notches lower than investment grade.
On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt ratings on the Company.
MAZDA MOTOR: Net Income Up 11% to JPY73.7 Billion in FY2006
-----------------------------------------------------------
Mazda Motor Corporation reported its financial results for
fiscal year 2006:
* Consolidated revenue increased by 11% year-on-year to an
all-time high of JPY3,247.5 billion, the first time it has
surpassed the JPY3 trillion level.
* Operating profit was up by 35.1 billion yen, a 28 percent
increase over the same period last year, to reach 158.5
billion yen. This reflects an improved model mix in North
America due to the introduction of the CX-7 and CX-9
models, favorable effects of a weaker yen and net cost
reductions which offset the impact of higher raw materials
costs
* Net income once again achieved a best-ever record, up 11%
to JPY73.7 billion, and global retail volume rose by 2%
year-over-year to reach 1,302,000 units. However, net
income would have increased by 26 percent over the prior
year - excluding the one-time impact of an extraordinary
gain from the transfer of a substitutional portion of
employee pension fund liabilities to the government and
impact of asset-impairment losses in FY2005.
* Global retail volumes were 1,302,000 units in FY2006, an
increase of 2 percent over FY2005. This reflects the added
sales from the launch of the new crossover SUVs, Mazda3 and
Mazda5, in North America and vehicles powered by new diesel
engines in Europe.
* Ordinary profit was 127.8 billion yen, a rise of 26
percent, or a 26.3 billion yen increase over the figure
from the last fiscal year.
* Cash flow in FY2006 was JPY21.0 billion, consisting of an
operating cash flow of JPY116.4 billion, less investments
of JPY95.4 billion.
* Net debt, at JPY232.2 billion, was down 14.6 billion from
the end of the prior fiscal year, resulting in a net debt-
to-equity ratio of 49 percent in FY2006, a 13 point
improvement over the prior year and under the 50 percent
target figure.
* Six-yen dividend per share declared; an increase of 1 yen
Mazda President and CEO Hisakazu Imaki said, "This was the final
year of the Mazda Momentum plan and we are very pleased that our
business performance in FY2006 once again resulted in all-time
record results in all profit levels. FY2007 is the first year
for our new Mazda Advancement Plan, and we will be aggressively
increasing capital investment and R&D expenditures for product
development of our core models and to strengthen our next-
generation technologies. Going forward, we will execute this new
mid-term plan with total dedication."
About Mazda Motors
Headquartered in Hiroshima Prefecture, Mazda Motor Corporation -
- http://www.mazda.co.jp-- together with its subsidiaries and
associates, is primarily involved in the manufacture and
distribution of automobiles. The company manufactures passenger
cars and commercial vehicles. Mazda Motor distributes its
products in both domestic and overseas markets. The company has
58 subsidiaries. It has overseas operations in the United
States, Canada, Mexico, Germany, Belgium, France, the United
Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia,
Columbia, New Zealand, Thailand, Indonesia and China. The
Company has a global network.
Standard and Poor's Ratings Service gave Mazda Motor's long-term
local and foreign issuer a BB- rating.
MITSUBISHI MOTORS: Earns JPY8.7 Billion in Fiscal Year 2006
-----------------------------------------------------------
The Associated Press noted that "for the first time in four
years, Mitsubishi Motors turned a profit for the fiscal year
through March, helped by improved sales and a relatively weak
yen."
Late last week, Mitsubishi Motors Corporation released its full-
year results for the year ending March 31, 2007, together with
forecasts for the year ending March 31, 2008.
Fiscal 2006 Full-Year Results
1. Fiscal 2006 overview
Mitsubishi Motors' consolidated sales for fiscal 2006 totaled 2
trillion, 202.9 billion yen: an increase of 82.8 billion yen
over the previous fiscal year. Favorable yen exchange rates and
a more profitable model mix more than offset decreases in retail
sales volume and in the OEM supply volume resulting from the
ending of the production of the smart forfour.
Mitsubishi Motors posted an operating profit of 40.2 billion
yen, an improvement of 33.4 billion yen over the previous fiscal
year. This significant improvement in operating profit stems
from the aforementioned favorable exchange rate, a more
profitable model mix and from improved profitability of
financial service operations in the United States and reductions
in costs; all of which more than offset the impact of increased
sales costs in North America and a rise in raw material costs.
Mitsubishi Motors posted an ordinary profit of 18.5 billion yen,
a year-on-year gain of 36.3 billion yen that stemmed partly from
an improvement in net interest income. The company reported a
net income of 8.7 billion yen, an improvement of 100.9 billion
yen. Factors contributing to this improvement in the net
position include the non-recurrence of asset impairment
accounting charges in Japan and of restructuring charges booked
last year, as well as extraordinary earnings stemming from the
dissolution of special purpose entities.
Fiscal 2006 marks the first time Mitsubishi Motors has moved
into the black at all levels (operating, ordinary and net
profits) for the full financial year since fiscal 2002.
2. Sales volume
Global retail sales of vehicles in fiscal 2006 totaled 1,232,000
vehicles, a decrease of 112,000 (8.3%) compared to the 1,344,000
sold in fiscal 2005.
In Japan, MMC sold 247,000 vehicles, a year-on-year decrease of
3.9% or 10,000 units, slightly better than the domestic market
(4.3% fall year-on-year), which was impacted by sluggish sales
of registered vehicles (i.e., cars other than minicars). The
introduction of the new Pajero and Delica D:5 models in the
second half of the year contributed to Mitsubishi Motors'
better-than-market performance.
In North America, the company sold 164,000 vehicles, a 5.1%
increase of 8,000 over last year. This was helped by the first
yearly increase in sales recorded in the U.S. market since
fiscal 2001 and stemmed principally from the introduction of new
models - the Eclipse Spyder in April and the Outlander SUV in
November last year - and from the implementation of more sales-
boosting initiatives more closely tailored to individual
regions.
In Europe, Mitsubishi Motors sold 282,000 vehicles, a 5.6%
increase of 15,000 units driven by continuing robust sales in
Russia and by a doubling of sales in the Ukraine.
In Asia and other regions, Mitsubishi Motors sold 539,000
vehicles, an 18.8% decline or 125,000 fewer than the previous
year. Firm sales in Latin America, the Middle East and Africa
were more than offset by lower shipments of parts for use in
local production in Taiwan, China and the ASEAN countries.
Forecasts for fiscal 2007
1. Overview
In fiscal 2007 Mitsubishi Motors will aim to boost global sales
volume by 7.4% or 91,000 units over fiscal 2006 to 1,323,000 on
the back on the extensive introduction of two global strategic
models that use the company's next-generation platform: the
Outlander and the new Lancer (GALANT FORTIS in Japan). The
Outlander was introduced first in Japan in 2005, and has since
been phased into other global markets during fiscal 2006. It has
been well-received in all markets. The new Lancer, given its
global launch in North America this March is to be phased into
Europe, Japan and other regions in the near future.
Regional sales forecasts are as follows. Japan: 250,000
vehicles, a 1.2% increase of 3,000 over the previous year; North
America: 176,000 vehicles, a 7.3% increase of 12,000; Europe:
316,000 vehicles, a 12.1% increase of 34,000; Asia and other
regions: 581,000 vehicles, a 7.8% increase of 42,000.
On the back of the increases in sales volume given above, and of
OEM supplies to auto manufacturers in Japan and overseas,
Mitsubishi Motors forecasts net sales of 2 trillion, 430 billion
yen, a 10.3% increase of 227.1 billion yen over fiscal 2006.
Despite forseeing falling profits at the U.S. financial service
operations and increased selling expenses, the company predicts
a 51 billion yen operating profit, an increase of 26.9% or 10.8
billion yen, due to increased sales from new model introductions
and OEM agreements.
Mitsubishi Motors forecasts an ordinary profit of 30 billion
yen, a year-on-year increase of 62.2% or 11.5 billion yen, and a
full-year net profit of 20 billion yen, a 2.3-fold increase over
fiscal 2006.
2. Operational measures by region
1) Japan
* Introduce fully redesigned GALANT FORTIS and LANCER
EVOLUTION X1 models and additions to the Delica D:5
lineup. Japan-market names for Lancer and Lancer
Evolution are GALANT FORTIS and LANCER EVOLUTION X,
respectively.
* Establish Delica D:5, Pajero and Outlander SUV models
as long-sellers.
* Strengthen after-sales operations.
* Accelerate restructuring of sales networks
(integrating and merging 29 consolidated sales
companies into five companies covering extended
territories, plus consolidating parts dealers.)
2) North America
* Strengthen Mitsubishi Motors brand with introduction
of Lancer Evolution.
* Increase sales with the introduction of new Outlander
and Lancer models.
* Focus advertising on best-selling models and main
regional markets.
* Continue implementing dealer support measures to
promote vitalization of dealer network.
* Improve productivity and profitability at the
company's U.S. production facility.
3) Europe
* Beef up and strengthen sales of SUV lineup (Outlander,
Pajero, L200).
* Expand sales with introduction of new Lancer.
* Further expand sales in growing markets such as Russia
and the Ukraine by bringing marketing under direct
control of MMC head office.
* Start supplies of all-new SUV model to PSA Peugeot
Citroen.
4) Asia and other regions
* China: Strengthen built-up import car operations
through addition of new models and establishment of a
new sales company. Work with South East (Fujian) Motor
Co., Ltd. to upgrade Mitsubishi brand sales network.
* Thailand: Maintain and expand pickup model production
operations.
* Latin America, Middle East and Africa: Boost sales
further through introduction of new models (Pajero,
Lancer and Outlander).
* Australia: Strengthen sales of models introduced in
2006 (Triton, Pajero and Outlander) and introduce
Lancer to strengthen built-up import sales.
3. Mid-term business plan
Fiscal 2007 marks the final year of the Mitsubishi Motors
Revitalization Plan introduced in fiscal 2005 and under which
the company has been working to reestablish itself. During the
current fiscal year Mitsubishi Motors plans to announce a new
mid-term business plan based on the company's performance in
fiscal 2007, the principal thrust of which will be the creation
of an infrastructure that will underpin sustainable future
growth.
About Mitsubishi Motors
Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.
The company also operates consumer-financing services and
provides this to its customer base. MMC adopted the "Mitsubishi
Motors Revitalization Plan" on Jan. 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company. The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."
The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia. Its
products are sold in over 170 countries.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Standard & Poor's Ratings Services raised its
long-term corporate credit and senior unsecured debt ratings on
Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in
the company's revitalization efforts and reduced downside risks
in its earnings and financial profile. S&P said the outlook on
the long-term rating is stable.
As reported by the TCR-AP on Aug. 4, 2006, Rating & Investment
Information Inc. upgraded its issuer rating on Mitsubishi Motors
Corp. from CCC+ to B with a stable outlook and its commercial
paper rating from C to B, and has removed the rating from its
monitor at the same time.
In July 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors' senior debts to BB- from B-,
with a stable outlook. The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.
MITSUI LIFE: S&P Upgrades Financial Strength Rating to 'BB-'
------------------------------------------------------------
Standard & Poor's Ratings Services has raised the rating of
Mitsui Life Insurance Co. Ltd.:
* Long-term Counterparty: BB-/Positive/
* Financial Strength Rating: BB-/Positive/
The rating actions are based on the Mitsui Life's improved
capitalization relative to risk, thanks to increased latent
profits on domestic stock holdings and continued accumulation of
retained earnings. The upgrade and outlook revisions also
reflect their stabilized core profit (operating profit net of
capital gains or losses), net of the impact of a drop in foreign
bonds hedged with foreign currency core profits have stabilized
as negative spreads have narrowed, due to improved income on
investments, backed by increased dividends due to the stronger
performance of Japanese corporations.
Risks of a slowdown in the improvement of the company's
financial profiles are limited. Sales of life insurance
products could continue to be impeded in the near term, as
confidence in the insurance industry has been damaged by
revelations of large unpaid insurance claims in the past.
However, the insurers are likely to shift their strategies to
more customer-focused business models, and the impact on sales
is unlikely to last over the medium and long term.
Mitsui Life completed a third-party stock issuance worth JPY100
billion in 2006 to strengthen its capitalization and continued
to reduce asset risks through actively cutting its domestic
stock holdings. In reaction to a rapid increase in the sale of
variable individual annuities by banks in fiscal 2005 (ended
March 2006), the company's new annualized premiums are expected
to have significantly contracted in fiscal 2006 (ended March
2007) from the previous year. However, Mitsui Life is expected
to see solid performance in the growth segment of highly
profitable third sector insurance products. In addition, its
core profit, which represents the strength of the profitability
of the core business, continues to track a stable path,
underpinned by ample mortality gains. If Mitsui Life
successfully executes its plan to publicly list its
shares in the near future, it could contribute to greater
financial flexibility. The rating on the company may be raised
if it continues to improve its capitalization relative to risks,
and its insurance business performance, particularly third
sector insurance products, shows signs of strong growth.
About Mitsui Life
Headquartered in Tokyo, Japan, Mitsui Life Insurance Company
Limited -- http://www.mitsui-seimei.co.jp-- is one of Japan's
major life insurance companies, with total assets of JPY8.1
trillion as of March 2006.
* * *
The Troubled Company Reporter - Asia Pacific reports on
September 7, 2006 that Moody's Investors Service placed on
review for possible upgrade the Ba1 insurance financial strength
rating of Mitsui Life Insurance Company Limited. The rating
action reflects Moody's view that Mitsui Life's operating
performance is improving, which has made it possible for the
company to schedule a new share issuance for September 2006. On
August 22, 2006, Standard and Poor's affirmed the company's
financial strength and long-term local issuer credit rating at
BB.
NIKKO CORDIAL: Citigroup's Increased Stake Cues Fitch's Watch
-------------------------------------------------------------
Fitch Ratings has revised the Rating Watch on the Long- and
Short-term foreign and local currency Issuer Default and
Individual ratings on Nikko Cordial Corporation (NCC) and Nikko
Cordial Securities Inc. (Nikko Cordial Securities) to Positive
from Evolving. The ratings are as follows:
NCC:
-- Long-term IDR 'BBB-'
-- Short-term IDR 'F3'
-- Individual 'C/D'
-- Support Rating '5'
-- Support Rating Floor 'No Floor'
Nikko Cordial Securities:
-- Long-term 'BBB+'
-- Short-term 'F2'
-- Individual 'C'
-- Support Rating '4'
-- Support Rating Floor 'B'
The ratings actions follow the close of Citigroup's tender offer
for 100% of NCC. 61% of shares were tendered, including 4.9% of
shares which Citigroup already owned -- this is above the 50%
minimum requirement. Citigroup will purchase the shares and NCC
will become a consolidated subsidiary on or after 9 May 2007.
Fitch expects to raise the Long-term IDRs and other ratings
several notches based on Citigroup's ratings. Final ratings
will be based on synergies, integration of the institution and
franchise strength.
Citigroup has been keen to increase its interest in Nikko
Citigroup Ltd (its JV with NCC) since inception. The purchase
of a major interest in all of Nikko Cordial provides an
opportunity to improve market share in a consolidating but
expanding market. The ratings will also be based on Fitch's
view of Citigroup's willingness to support the Nikko Cordial
franchise and its efforts to expand in the local retail market.
NCC is the third largest securities group in Japan following the
Nomura and Daiwa Securities groups. NCC results for FYE 2007
declined mostly due to the upheaval brought on by regulatory
issues and the resignation of top management. Citigroup's
immediate task will be to re-establish the franchise and improve
its corporate governance.
About Nikko Cordial
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The company
operates in four business segments. The Retail segment provides
consulting services for financial products management. The Asset
Management segment provides asset management services for
individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services. The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore. The
company has a global network.
As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating
Nikko Cordial for falsifying its annual financial statements for
the business year ended March 30, 2005, declaring JPY14 billion
in false profits, and using them to procure money from the
market.
NOMURA HOLDINGS: Advises Vedanta Resources on Sesa Goa Deal
-----------------------------------------------------------
Nomura Holdings Inc., acted as the exclusive financial advisors
to Vedanta Resources Plc, which has acquired 100% of Finsider
International Ltd, UK, from Mitsui & Co. Limited, Japan for
US$981 million, implying a price of INR2,036 per share.
Finsider owns a 51% controlling stake in Sesa Goa Limited.
According to Forbes.com, Nomura Holdings is reportedly providing
about US$1 billion in funding to Vedanta.
"This acquisition provides us with an industry leadership
position in the attractive iron ore business in India," said
Anil Agarwal, Chairman, Vedanta Resources plc. "Sesa is a
natural fit for Vedanta; it is an efficient, low cost miner with
growth opportunities in one of the world's fastest growing
economies. This transaction is immediately earnings and cash
flow accretive and we believe it will create significant long
term value for all our stakeholders."
In a statement, Mitsui said the after-tax proceeds from the
transaction will be approximately JPY50 billion. Mitsui added
that the transaction is in line with its corporate strategy
under the current Medium-term Management Outlook, in which
Mitsui has been reviewing its portfolio to create shareholder
value. Iron ore business is one of Mitsui's core businesses and
this status remains unchanged.
Vedanta will also make an open offer to the public shareholders
of Sesa to acquire an additional 20% of Sesa as per Indian
regulations. Completion of the Open Offer is expected by July
2007.
The total cash consideration for 71% of Sesa is US$1.37 billion.
The acquisition will be financed through a mix of newly
committed bank debt facilities of US$1.1 billion and existing
cash resources.
Sesa is India's largest private sector iron ore producer-
exporter and is globally cost-competitive. A well established
company for over 50 years, Sesa was previously under Italian
management before being acquired by Mitsui in 1996. Its mining
operations are located in the iron ore rich states of Goa,
Karnataka and Orissa. It currently sells c10 million tonnes of
iron ore, of which over 95% is exported to leading global steel
companies in China, Europe and Japan. At current production
rates, Sesa's iron ore reserves and resources of 207 million
tons will support over 20 years of mined production. Sesa's
fully integrated pig iron and metallurgical coke facilities each
have the capacity to produce c250,000 tonnes per annum. Sesa is
a highly profitable and debt free company. It reported group
turnover of US$423.2 million, EBITDA of US$194.8 million and
Profit Before Tax of US$ 193.8 million at 31 March 2006, with a
net cash position of US$120.4 million on that date. Its gross
assets as at March 31, 2006, were US$276.2 million.
Khaitan and Co., India and Travers Smith, United Kingdom are the
legal advisors to Vedanta in the transaction.
About Nomura Holdings
Nomura Holdings, Inc. -- http://www.nomura.com/-- is a
securities and investment banking firm in Japan and have
worldwide operations in more than 20 countries and regions
including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries. Nomura
operates in five business segments: Domestic Retail, which
includes investment consultation services to retail customers;
Global Markets, which includes fixed income and equity trading
and asset finance businesses in and outside Japan; Global
Investment Banking, which includes mergers and acquisitions
advisory and corporate financing businesses in and outside
Japan; Global Merchant Banking, which includes private equity
investments in and outside Japan, and Asset Management, which
includes development and management of investment trusts, and
investment advisory services.
On April 13, 2006, Fitch Ratings gave Nomura Holdings a 'C'
individual rating.
NOMURA HOLDINGS: FY2006 Net Income Drops to JPY175.8 Billion
------------------------------------------------------------
Nomura Holdings Inc. reported last week consolidated financial
results for the fourth quarter and fiscal year ended March 31,
2007.
For the full-year period, net revenue was JPY1.09 trillion, a
decrease of 4.8% compared to the previous fiscal year. Income
before income taxes declined 41% year-on-year to JPY321.8
billion, while net income declined 42.2% to JPY175.8 billion.
As a result, ROE for the year was 8.3%.
"Our strategically-important investment trust business achieved
steady results throughout the year," said Nobuyuki Koga, Nomura
President and CEO. "Last year also highlight issues that need
to be addressed in our market-related business globally. We
will continue to make strategic investments and fully utilize
Nomura Group's expertise and capital to tackle outstanding
issues and achieve further growth."
A full-text copy of Nomura Holdings, Inc.'s press release
regarding its financial statements is available for free at:
http://bankrupt.com/misc/nomura2.pdf
A full-text copy of Nomura Holdings, Inc.'s financial highlights
for the year ended March 2007 is available for free at:
http://bankrupt.com/misc/nomura.pdf
Nomura Holdings, Inc. -- http://www.nomura.com/-- is a
securities and investment banking firm in Japan and have
worldwide operations in more than 20 countries and regions
including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries. Nomura
operates in five business segments: Domestic Retail, which
includes investment consultation services to retail customers;
Global Markets, which includes fixed income and equity trading
and asset finance businesses in and outside Japan; Global
Investment Banking, which includes mergers and acquisitions
advisory and corporate financing businesses in and outside
Japan; Global Merchant Banking, which includes private equity
investments in and outside Japan, and Asset Management, which
includes development and management of investment trusts, and
investment advisory services.
On April 13, 2006, Fitch Ratings gave Nomura Holdings a 'C'
individual rating.
NORTHWEST AIRLINES: Inks Tentative CBA with AFA on $182MM Claims
----------------------------------------------------------------
Northwest Airlines Corp. reached a tentative contract agreement
with its flight attendants, represented by the Association of
Flight Attendants-CWA.
"Over the past several days, we have engaged in many hours of
intense negotiations with the AFA on a new collective bargaining
agreement," Mike Becker, Northwest Airlines senior vice
president-human resources and labor relations, said. "We are
pleased to have reached this tentative agreement, which would
give our flight attendants a $182 million unsecured claim in the
airline's bankruptcy."
The tentative agreement will be submitted to the AFA's Northwest
Master Executive Council. The MEC will decide whether to allow
flight attendants to vote on the agreement.
"The agreement also includes additional contract modifications
that Northwest believes will improve the flight attendants' work
environment," Becker continued. "Finally, this agreement allows
us to continue to achieve the required $195 million in cost
savings needed from our flight attendants.
"A ratified agreement would allow our flight attendants, along
with our other contract and salaried employees, to participate
fully in Northwest's profit sharing programs."
During the period of the airline's business plan, which runs
through 2010, all contract employees and non-executive salaried
employees are expected to receive approximately $1.6 billion in
distributions through unsecured claims, profit sharing and a
performance incentive plan.
The tentative contract agreement with the AFA will not impact
the timetable for the airline's planned emergence from Chapter
11 protection. Assuming final creditor and court approvals,
Northwest expects to complete its restructuring in June of this
year.
About Northwest Airlines
Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks. Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents. The company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases. When the Debtors filed for
protection from their creditors, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts. (Northwest
Airlines Bankruptcy News, Issue No. 47; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
* * *
In July 2006, Northwest Airlines Corp. unit Northwest Airlines
Inc. reached a tentative concessionary contract agreement with
its flight attendants' union. Standard & Poor's Ratings
Services affirmed its 'D' corporate credit ratings on both
entities, which are determined by the companies' bankruptcy
status.
SANYO ELECTRIC: Accepts GE Subsidiary's Tender Offer
----------------------------------------------------
Sanyo Electric Credit Co. announced on April 25 its decision to
offer the remaining 16.7% shares to STV Partners Corporation, a
wholly-owned subsidiary of General Electric Co.
The decision came after a board meeting held on Wednesday, to
accept STV's offer "in order to further progress the company's
structural transformation in the financial business," according
to the company's press release.
According to a Reuters report, General Electric Co. moved closer
to a successful US$1.1 billion bid after major shareholder Sanyo
Electric said on April 18 it would tender its shares.
It said it would aim to gain at least two-thirds of the company
for an estimated JPY90.1 billion but would buy all shares
tendered, which could boost the deal to JPY135 billion (US$1.1
billion). The tender offer runs to May 9.
The Goldman Sachs Group Inc., who owns 33.2% of Sanyo as of
December 2005, has also agreed to sell its shares at which Sanyo
has agreed to, the report relates.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products.
The company has global operations in Brazil, Germany, India,
Ireland, Spain, the United States and the United Kingdom, among
others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Mar. 2, 2007 Fitch Ratings has placed Sanyo Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
As reported in the Troubled Company Reporter - Asia Pacific on
May 25, 2006 Standard & Poor's Ratings Services affirmed its
negative BB long-term corporate credit and BB+ senior unsecured
debt ratings on Sanyo Electric Co. Limited. At the same time,
the ratings were removed from CreditWatch where they were first
placed with negative implications on Sept. 28, 2005.
SOFTBANK CORP: Expects Group Revenue to Increase
------------------------------------------------
The Associated Press reported that Softbank Corp. said "group
revenue more than doubled in the latest fiscal year, buoyed by
its purchase of British cellular giant Vodafone Group PLC's
Japan operations."
Hiroko Tabuchi, writing for the AP, relates that Softbank
released preliminary figures last week indicating that "sales
jumped to JPY2.54 trillion in the year ending March 31, 2007, up
from 1.11 trillion yen a year earlier."
Softbank is expected to release profit figures for the year on
May 8, according to the AP report.
About Softbank Corporation
Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese
telecommunications and media corporation, with operations in
broadband, fixed-line telecommunications, e-Commerce, Internet,
broadmedia, technology services, finance, media and marketing,
and other businesses. SoftBank was established on September 3,
1981, and had a market capitalization of approximately
US$32.8 billion at February 28, 2006.
SoftBank's corporate profile includes various other companies
such as Japanese broadband company Cable & Wireless IDC, cable
company BB-Serve, and gaming company GungHo Online
Entertainment. On March 17, 2006, SoftBank announced its
agreement to buy Vodafone Japan, giving it a stake in Japan's
US$78 billion mobile market.
* * *
According to the Troubled Company Reporter - Asia Pacific on
April 18, 2006, Standard & Poor's Rating Services agency
affirmed its 'BB-' long-term corporate credit rating on the
company, with negative implications.
Moody's Investors Service had, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2 from Ba3, concluding a review initiated on March 17,
2006, when the company announced that it would acquire a 97.7%
stake in mobile phone giant Vodafone Group's Japanese unit,
Vodafone K. K.
On Feb. 12, 2007, the Troubled Company Reporter - Asia Pacific
reported that Softbank Corp.'s net profit slipped 66% to
JPY7.4 billion in the 2006 third quarter because of higher taxes
and declines in extraordinary income. The company's revenue
more than doubled to JPY702.1 billion in the 2006 third quarter
from JPY287.5 billion in the same period the previous fiscal
year.
SOJITZ CORP: Makes $1,500,000 Funding Commitment to Nitches
-----------------------------------------------------------
Nitches, Inc. has entered into a Stock Purchase Agreement with
Sojitz Corporation of Japan under which Sojitz has agreed to
purchase $1,500,000 of Nitches' common stock. Nitches and
Sojitz also entered into a Manufacturing Agreement through which
Nitches will also begin sourcing certain products through
Sojitz's well-developed network of manufacturing resources.
Sojitz Corporation is a Japanese trading company, publicly
traded on the Tokyo Stock Exchange, with over $42 billion in
annual revenue and over a century of trading history.
The investment by Sojitz will improve Nitches' cash position and
reduce the company's reliance on its factoring agreement with
CIT for working capital financing.
Steve Wyandt, Chairman and CEO of Nitches, remarked, "This cash
infusion will allow us to reduce our borrowings from CIT and
make infrastructure investments that will have lasting benefits
across the organization. We are pleased to be aligned with an
equity partner in Sojitz who has financial strength and
demonstrated capabilities in apparel sourcing and distribution."
With respect to the Manufacturing Agreement, Mr. Wyandt
continued, "By partnering with Sojitz, we will have the
resources of a $42 billion trading company at our disposal to
assist us in improving our unit costs and thereby our gross
margins for a broad range of product offerings, including
intimate apparel, sportswear and home d,cor. The well-developed
sourcing infrastructure of Sojitz will also enable us to
streamline our production-related overhead expenses here in the
U.S., creating greater efficiencies that should further enhance
our bottom line."
Victor H. Lee, President of Nitches' subsidiary NAP, Inc.,
observed, "Regarding increasing Nitches' top line, our
partnership contemplates the sales and distribution of Nitches'
brands and products to Japan. Asia presents an enormous
opportunity to increase sales and awareness of our stable of
brands. Japan is presently the largest consumer market in Asia
and China is growing at a rapid rate. We are very pleased that
Sojitz will work with us to develop our sales in Asia."
The investment will be in the form of a private placement of
Nitches' common stock. The number of shares of common stock
issuable under the agreement is determined by (i) dividing
$1,500,000 by the average of the closing prices of a share of
Nitches' common stock on the NASDAQ Capital Market for the 10
trading days that immediately precede the closing date, (ii)
plus an additional number of shares determined by multiplying
that number of shares by 5%. The closing date is to occur on or
before May 31, 2007. Under the terms of the stock purchase
agreement, Nitches also agreed to register the shares for resale
with the U.S. Securities and Exchange Commission.
About Nitches
Nitches, Inc. has been designing and marketing quality apparel
for niche markets since 1971. The Company's women's product
lines include sleepwear and loungewear by Body Drama(R), women's
western wear and outerwear by Adobe Rose(R), Saguaro(R) and
Southwest Canyon(R). The Company's menswear offerings include
Nat Nast(R), Dockers(R) and Newport Blue(R) swimwear and graphic
t-shirts, The Skins Game golf apparel(R), and ZOIC(R)
performance cycling apparel. The Company's Designer Intimates
subsidiary markets sleepwear, robes, loungewear, and daywear
under the following brands: Gossard(R), Derek Rose(R), Princesse
tam tam(R), Crabtree & Evelyn(R), Anne Lewin(R), Dockers(R) and
Claire Murray(R). The Company also distributes candles and home
accessories under the Bill Blass(R) Home D,cor brand and
recently secured the license for developing and distributing
similar categories of home d,cor items under the Gail Pittman(R)
brand. The Company's products are sold to better department
stores, specialty boutiques, moderate department stores, and
national and regional discount department stores and chains.
Additionally, the Company develops and manufactures private
label products for many leading retailers and multi-channel
marketers.
Nitches, Inc. -- http://www.nitches.com/-- is headquartered in
San Diego, California with offices in Los Angeles, New York
City, Dallas, and Hong Kong. The Company's shares are traded on
the NASDAQ Capital Market under the symbol NICH.
About Sojitz Corp.
The Sojitz Group was essentially formed through the business
integration between Nichimen Corporation and Nissho Iwai
Corporation, two companies with over a century of history.
This business integration took shape in December 2002 and was
followed on April 1, 2003, by the incorporation of a joint
holding company. As a public listed company, this holding
company was incorporated to pursue business integration,
management supervision and comprehensive disclosure. Heralding
a new era, the principal operating arms of the Group, Nichimen
Corporation and Nissho Iwai Corporation were merged to form a
new single entity, Sojitz Corporation on April 1, 2004. On
October 1, 2005, the final phase of business integration was
completed through the merger of the holding company and Sojitz
Corporation.
Headquartered in Tokyo, Japan, Sojitz Corporation --
http://www.sojitz.com/en/index.html-- is a trading company with
eight offices across the U.S. Sojitz operates in approximately
50 countries around the world through roughly 500 subsidiaries
and affiliated companies. Sojitz's business activities are
wide-ranging, from machinery and aerospace to textiles and food.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Feb. 28, 2007, that Standard & Poor's Ratings Services raised
its long-term issuer credit rating on Sojitz Corp. to 'BB+' from
'BB' and removed the rating from CreditWatch where it was placed
on Apr. 28, 2006, with positive implications. The upgrade
follows Sojitz's conversion of a total JPY205 billion of its
JPY300 billion in outstanding convertible bonds into common
shares by Feb. 26, 2007.
TREND MICRO: To Delist American Depositary Shares from NASDAQ
-------------------------------------------------------------
Trend Micro plans to delist its American Depositary Shares
(ADRs) from the NASDAQ stock exchange in the US, after passing
the resolution at a board of directors meeting on April 26.
According to Trend Micro, the company's ADRs have been listed on
NASDAQ since July 1999. However, the company's ADRs have been
thinly traded on NASDAQ, and overseas investors have traded the
company's common stock primarily on the Tokyo Stock Exchange.
Trend Micro provides network antivirus and Internet content
security software and services and is based in Tokyo, Japan with
business units worldwide.
The company's board of directors believes that the overall
impact of the delisting and termination of its SEC reporting
obligations on shareholders will be limited, but will result in
a reduction of fixed costs and enable the company to improve the
efficiency of its IR activities. After the delisting, the
company plans to maintain its ADR program in the US and plans to
continue to list the company's common stock on the Tokyo Stock
Exchange.
After delisting from the NASDAQ exchange, the company plans to
maintain its ADR program with the Bank of New York, the
depositary bank for the company's ADRs. The company's ADRs are
expected to continue to trade on over-the-counter (OTC) markets.
About Trend Micro
Headquartered in Japan, Trend Micro Incorporated --
http://www.trendmicro.com/-- is a pioneer in secure content and
threat management. Founded in 1988, Trend Micro provides
individuals and organizations of all sizes with award-winning
security software, hardware and services. With headquarters in
Tokyo and operations in more than 30 countries, Trend Micro
solutions are sold through corporate and value-added resellers
and service providers worldwide.
Standard and Poor's Ratings Service gave Trend Micro's long-term
foreign and local issuer credits 'BB' ratings on July 13, 2005.
TREND MICRO: Earns JPY4.35 Billion in First Quarter 2007
--------------------------------------------------------
Trend Micro, Incorporated released last week earnings results
for the first quarter 2007, including record net sales for the
first quarter 2007.
Trend Micro posted consolidated net sales of 23.25 billion Yen
(or US $194.95 million, 119.27JPY = 1USD), and operating income
and net income both performed above expectations. The company
posted operating income of 6.63 billion Yen (or US $55.57
million) and net income of 4.35 billion Yen (or US $36.45
million) for the quarter. These figures reflect 12 percent
growth in net sales compared to the same period a year ago.
The Company continued to see strong growth, led by a 20-percent
year-over-year revenue increase in North America and 14-percent
in Europe, this was followed by Asia Pacific and Japan at 10-
percent and 6-percent growth respectively. Much of the company's
worldwide growth was buoyed by strong sales in Enterprise
solutions, which experienced a 29-percent increase year-over-
year.
Long-term growth was further supported with the introduction of
a number of new solutions and services, and ground-breaking, new
Total Web Threat Protection technology. Trend Micro launched a
new messaging security service for enterprise customers,
InterScan Messaging Hosted Service. The Company also launched
the beta version of a new consumer web-reputation service called
TrendProtect, in March 2007 and announced the acquisition of
HijackThis, a popular freeware anti-spyware program now
available on TrendSecure that enables technically savvy users to
identify and remove unwanted and malicious programs.
"We were very pleased with our achievements in the first quarter
of 2007, and particularly note the introduction of our Total Web
Threat Protection technology which helps advance the
preventative security available to customers against pernicious
web threats, today and tomorrow," said Eva Chen, CEO of Trend
Micro. "We delivered a number of new messaging-protection,
small-medium business and mobile device solutions for both
businesses and consumers, and the acquisition of HijackThis
extends our ability to provide value-add services to end-users
everywhere. Our steadfast focus on content security continues to
support our potential for growth now and in the future."
Based on information currently available to the company,
consolidated net sales for the second quarter ending June 30,
2007 is expected to be 22.5 billion Yen (or US $192.31 million,
based on an exchange rate of 117JPY = 1USD). Operating income
and net income are expected to be 5.3 billion Yen (or US $45.30
million) and 3.0 billion Yen (or US $25.64 million),
respectively.
Growth rate figures are calculated from Japanese Yen results.
Some discrepancy may therefore be noted in US Dollar comparisons
owing to fluctuations in currency conversion rates.
First Quarter Business Highlights
Corporate:
* In March 2007, Trend Micro announced state-of-the-art Web
threat protection technology. New in-the-cloud Trend Micro
Web Reputation technology is a key new innovation being
added to the Trend Micro multi-layered approach for dealing
with evolving multi-component Web threats that take
advantage of the interactive nature of the Internet. Total
Web Threat Protection is a key component within the Trend
Micro Secure Content & Threat Management security solutions
portfolio.
* Following closely the certification awarded to Trend Micro
consumer products in the previous quarter, Trend Micro
Client Server Messaging Security 3.6 client was awarded
Microsoft Vista logo certification in March 2007.
* New customers in the first quarter included:
In the United States and Canada - BJC Healthcare. In Europe
-- RDC DATACENTRUM, ICT Center Justice department, and in
China -- TCL Group, DongFeng Automobile Co., LTD., China
Mobile & Telecom Company FUJIAN Co., Ltd, China
NETCOM(Group)Company Limited Beijing Branch and China
Mobile Company HEBEI Branch
Awards:
* At the beginning of March 2007, Channel Reseller News in
North America announced the winners of its CRN 2007 Channel
Champions. Trend Micro earned a Channel Champs award for
Program & Support in the Client Security Software category.
* At the end of March 2007, TechTarget's Information Security
Magazine and SearchSecurity.com announced that Trend Micro
AntiVirus plus AntiSpyware had been awarded the Information
Security Readers Choice Silver Award in the Antimalware
category.
Patents:
* Trend Micro was awarded the following patents in the first
quarter 2007:
-- U.S. Patent No. 7,188,369, entitled "System and Method
Having an Antivirus Virtual Scanning Processor with
Plug-in Functionalities" covers a computer processor
emulator that enables virus detection instructions to be
safely performed in a virtual environment without
exposing virus infection to the host computer. According
to a specific example of the patented technology, the
virtual processor allows polymorphic viruses and
compressed viruses to be safely decrypted and
uncompressed, respectively, eliminating the need to
determine the actual encryption or compression
algorithm. This is particularly advantageous as viruses
use encryption and compression schemes that are new and
more complex.
Product:
* Trend Micro introduced the following products in the first
quarter 2007:
-- Trend Micro InterScan Messaging Hosted Service, Trend
Micro Messaging Security Suite and Trend Micro InterScan
Messaging Security Appliance, designed to provide
enterprises a choice of solution form factor and to
extend the security already available to protect
corporate email as messaging threats evolve.
-- Trend Micro ScanMail for Exchange -- the latest version
of ScanMail for Exchange continues to provide businesses
proven protection against a multitude of email-borne
threats. The solution now also includes technology to
protect against zero-day attacks, image spam, and for
improved web-threat security it includes dedicated
anti-spyware as well.
-- Trend Micro Worry-Free Security for small and medium-
sized businesses -- updates to Trend Micro Worry-Free
security solutions include the addition of spyware and
rootkit protection, further enhancing the comprehensive,
single-installation security products already available
for smaller organizations.
-- TrendProtect and HijackThis - The acquisition of popular
freeware anti-spyware tool HijackThis complemented the
launch of the beta version of TrendProtect, a new web-
reputation service for consumers available at
http://www.trendsecure.com/
-- Trend Micro Mobile Security 3.0 -- The release of the
latest version of Trend Micro Mobile Security protects
users of the latest Nokia Smartphones against mobile
malware while protecting against unwanted intrusions and
data leakage through new firewall and intrusion
detection technologies.
About Trend Micro
Headquartered in Japan, Trend Micro Incorporated --
http://www.trendmicro.com/-- is a pioneer in secure content and
threat management. Founded in 1988, Trend Micro provides
individuals and organizations of all sizes with award-winning
security software, hardware and services. With headquarters in
Tokyo and operations in more than 30 countries, Trend Micro
solutions are sold through corporate and value-added resellers
and service providers worldwide.
Standard and Poor's Ratings Service gave Trend Micro's long-term
foreign and local issuer credits 'BB' ratings on July 13, 2005.
=========
K O R E A
=========
TYSON FOODS: Restarts Beef Exports to South Korea
-------------------------------------------------
Tyson Foods Inc. said it would soon resume beef exports to South
Korea, whose market has been closed to U.S. beef for over three
years, Reuters reports, citing an e-mailed statement by Gary
Mickelson, a company spokesman.
"Tyson Foods has decided to resume beef exports to South Korea.
We currently anticipate beginning shipments within the next few
weeks," Mr. Mickelson said.
Reuters notes that the news came the same day that South Korea
accepted a shipment of 6.4 tonnes of U.S. beef, a first since
December 2003, and another shipment was in the works. That beef
was from Creekstone Farms, a Kansas-based company.
The move, according to the report, was welcomed by U.S. beef
interests, but industry officials and politicians said Seoul
must accept more U.S. beef, and do so regularly, before they
will support a lucrative bilateral trade deal that has yet to be
approved by Congress.
* * *
Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) --
http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork. The company produces a wide variety of
protein-based and prepared food products, which are marketed
under the "Powered by Tyson(TM)" strategy.
The company has operations in China, Japan, Singapore, South
Korea, and Taiwan.
On Sept. 27, 2006, the Troubled Company Reporter - Asia Pacific
reported that Moody's Investors Service took a number of rating
actions in relation to Tyson, including the assignment of a Ba1
rating to the company's:
-- US$1 billion senior unsecured bank credit facility; and
-- US$345 million senior unsecured bank term loan for its
Lakeside Farms Industries Ltd. subsidiary, under a full
Tyson Foods, Inc. guarantee.
===============
M A L A Y S I A
===============
HARVEST COURT: Securities Commission Junks Land Acquisition Plan
----------------------------------------------------------------
Malaysia's Securities Commission has accepted the proposed
restructuring scheme submitted by Harvest Court Industries Bhd,
except for the Proposed Land Acquisition, which according to the
commission will not provide obvious benefits to the company.
In this regard, Harvest Court is required to submit a proposal
to increase the issued and paid-up share capital to meet the
MYR40-million minimum share capital requirement for second board
companies pursuant to the Listing Requirements of Bursa Malaysia
Securities Berhad.
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 7, 2007, Harvest Court filed with the Bursa Securities its
proposed regularization plan, which involves:
-- Share Capital Reduction
-- Share Premium Reduction
-- Amendments
-- Rights Issue With Warrants
-- Land Acquisition
-- Debt Settlement Scheme
-- Joint Venture; and
-- Exemption.
As part of the reform plan, Harvest proposed to acquire four
parcels of leasehold industrial land at a total purchase
consideration of MYR5,370,000. The acquisition will be made
through the issuance of 21,480,000 new HCIB Shares of MYR0.25
each and with approximately 5,370,000 free detachable warrants
on the basis of one warrant for every four new HCIB Shares of
MYR0.25 each issued.
* * *
Headquartered in Selangor, Malaysia, Harvest Court Industries
Berhad -- http://www.harvestcourt.com/-- is engaged in kiln
drying, saw milling and manufacturing of timber doors and
related products. Other activities include development of
residential and commercial properties and jetty services and
provision of construction works and related maintenance
services. The Group is also involved in the provision of
marketing and management services and investment in shares and
securities. The Group operates in Malaysia and Australia.
The Group has defaulted on several loan facilities because of a
reduction in sales from 2002 onwards due to a weak global market
as a result of the Iraqi and the severe acute respiratory
syndrome, or SARS, as well as its inability to raise funds via
the equity market due to weak market sentiment. Due to its
financial position, Harvest Court had embarked on an exercise to
restructure the Company, including a debt restructuring and
capital reduction. The Company's proposed corporate exercise
was rejected by the Securities Commission in November 2005, on
grounds that the proposals are not comprehensive and are not
capable of resolving all financial problems of the Company. Its
appeal to reconsider the rejection was also junked by the
Commission on February 24, 2006.
Currently, the company is classified under the Amended PN17
category of the Bursa Malaysia Securities Bhd's official list
and is therefore required to implement a plan to regularize its
finances.
Harvest Court Industries Bhd's unaudited balance sheet as at
Dec. 31, 2006, went upside down with total assets of MYR36.59
million and total liabilities of MYR50.17 million, resulting to
a shareholders' deficit of MYR13.58 million.
====================
N E W Z E A L A N D
====================
CBL COPIERS: Commences Wind-Up Proceedings
------------------------------------------
CBL Copiers Ltd. started to wind up its operations on March 27,
2007, and appointed Alison Ann Turner as liquidator.
The Liquidator can be reached at:
Alison Ann Turner
Staples Rodway Taranaki Limited
109-113 Powderham Street, New Plymouth
New Zealand
Telephone:(06) 758 0956
Facsimile:(06) 757 5081
D. M. ENGINEERING: Undergoes Wind-Up Proceedings
------------------------------------------------
On April 3, 2007, it was resolved through a special resolution
to wind up the operations of D. M. Engineering Ltd.
James Gregory Eden and Bruce Carlaw Richards, Chartered
Accountants of New Plymouth, were appointed as liquidators.
The Liquidators can be reached at:
James Gregory Eden
Bruce Carlaw Richards
Staples Rodway Taranaki Limited
109-113 Powderham Street, New Plymouth
New Zealand
Telephone:(06) 758 0956
Facsimile:(06) 757 5081
EASTSIDE TIMBER: Subject to CIR's Wind-Up Petition
--------------------------------------------------
On March 19, 2007, the Commissioner of Inland Revenue filed a
petition to wind up the operations of Eastside Timber Ltd.
The petition will be heard before the High Court of Christchurch
on May 11, 2007, at 10:30 a.m.
The CIR's solicitor is:
Paul Saunders
c/o Commissioner of Inland Revenue
Inland Revenue Department
Technical and Legal Support Group
Ground Floor Reception, 518 Colombo Street
PO Box 1782, Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
FACERE INVESTMENTS: Enters Wind-Up Proceedings
----------------------------------------------
Facere Investments Ltd. started to liquidate its business on
March 29, 2007, through a special resolution passed on that day.
Christopher John Lynch was appointed as liquidator.
Mr. Lynch can be reached at:
Christopher John Lynch
Staples Rodway Taranaki Limited
109-113 Powderham Street
New Plymouth
New Zealand
Telephone:(06) 758 0956
Facsimile:(06) 757 5081
FPM BUILDING: Court to Hear Wind-Up Petition on June 28
-------------------------------------------------------
An application to wind up the operations of FPM Building Ltd.
was filed by the New Zealand Crane Group Limited on March 22,
2007.
The High Court of Auckland will hear the petition on June 28,
2007, at 10:00 a.m.
New Zealand Crane's solicitor is:
G. M. Sandelin
c/o Minter Ellison Rudd Watts
Level 20, Lumley Centre, 88 Shortland Street
PO Box 3798, Auckland 1140
New Zealand
IMPACT STEEL: Court to Hear Wind-Up Petition on June 7
------------------------------------------------------
On March 12, 2007, Richmond Construction Limited filed a
petition to wind up the operations of Impact Steel Frames Ltd.
The petition will be heard before the High Court of Auckland on
June 7, 2007, at 10:45 a.m.
Richmond Construction's solicitor is:
Malcolm Whitlock
Debt Recovery Group NZ Limited
149 Ti Rakau Drive, Pakuranga
Auckland
New Zealand
RICHMOND M: Faces CIR's Liquidation Petition
--------------------------------------------
The Commissioner of Inland Revenue filed on March 7, 2007, a
petition to liquidate the business of Richmond M and T Holdings
Ltd.
The High Court of Nelson will hear the petition on May 17, 2007,
the 10:00 a.m.
The CIR's solicitor is:
Julia Dykema
c/o Commissioner of Inland Revenue
Inland Revenue Department
Technical and Legal Support Group
Ground Floor Reception, 518 Colombo Street
PO Box 1782, Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
SUNNINGDALE INVESTMENTS: Appoints Peter Morpeth as Liquidator
-------------------------------------------------------------
On March 21, 2007, Peter Morpeth was appointed as liquidator of
Sunningdale Investments Ltd.
The company commenced liquidation proceedings on that same day.
The Liquidator can be reached at:
Peter Morpeth
Morpeth & Co Limited
PO Box 11755, Wellington
New Zealand
Telephone:(04) 385 8893
Facsimile:(04) 385 8899
TMG CONTRACTORS: Wind-Up Petition Will be Heard on June 6
---------------------------------------------------------
The High Court of Blenheim will hear a petition to wind up the
operations of TMG Contractors Ltd. on June 6, 2007, at
10:00 a.m.
The petition was filed by the Commissioner of Inland Revenue on
March 8, 2007.
The CIR's solicitor is:
Julia Dykema
c/o Inland Revenue Department
Technical and Legal Support Group
Ground Floor Reception
518 Colombo Street
PO Box 1782, Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
WOLFE'S CLASSIC: Taps James Gregory Eden as Liquidator
------------------------------------------------------
On March 28, 2007, it was resolved through a special resolution
to wind up the operations of Wolfe's Classic Autos Ltd.
James Gregory Eden was appointed as liquidator.
The Liquidator can be reached at:
James Gregory Eden
Staples Rodway Taranaki Limited
109-113 Powderham Street
New Plymouth
New Zealand
Telephone:(06) 758 0956
Facsimile:(06) 757 5081
=====================
P H I L I P P I N E S
=====================
MIRANT: Mirant Lovett's Wants US$20 Mil. DIP Financing Approval
---------------------------------------------------------------
Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth,
Texas, says that Mirant Lovett, LLC, is faced with the potential
shut down of a Lovett facility due to certain environmental
compliance issues. Mr. Prostok relates that a plan of
reorganization is premature at this time.
Mirant Lovett has received credit and capital support from its
affiliated entities, which emerged as reorganized entities under
the Mirant Corp. Plan of Reorganization and will emerge as
reorganized entities under the Emerging New York Entities'
Supplemental Plan.
The Court previously extended Mirant Lovett's exclusive right to
adopt or abandon the Mirant Plan or to file its own plan until
May 16, 2007. Mirant Lovett's exclusive right to solicit
acceptances of the Plan was also extended until July 16.
Mirant Lovett did not -- and does not currently -- have separate
access to third-party capital and financing. Accordingly,
Mirant Lovett will require cash and liquidity support for its
ongoing operations. Moreover, Mirant Lovett must use DIP
financing to purchase fuel from third parties, which will be
provided by Mirant Americas, Inc., pursuant to a DIP facility
agreement with Mirant Lovett.
Mirant Lovett asks the Court to:
* grant interim authority for it to obtain secured DIP
financing under the terms of the DIP Financing Agreement
for up to US$20,000,000;
* set a final hearing for April 27, 2007;
* grant final authority for Mirant Lovett to obtain Secured
DIP Financing under the terms of the DIP Financing
Agreement; and
* authorize the execution of the DIP Facility Agreement and
all other related documents.
The salient terms of the DIP facility are:
(a) Borrower: Mirant Lovett
(b) Lender: Mirant Americas
(c) DIP Facility: The Lender will make available to the
Borrower until the Commitment Termination a revolving
credit facility in an aggregate principal amount of up to
US$20,000,000.
(d) Closing Date: The DIP Facility Agreement will not be
effective against the Borrower or Lender, until these
conditions have been satisfied or provided for in a
manner satisfactory to Lender, or waived in writing, duly
executed and delivered by the Lender:
(i) the DIP Facility Agreement has been duly executed
by the Borrower and Lender, and the Lender has
received all requirements;
(ii) there exists no Default or Event of Default, and
all representations and warranties contained in
the DIP Facility documents are true and correct in
all material respects; and
(iii) the Supplemental Effective Date has occurred.
Each extension of credit under the DIP Facility Agreement
will also be subject to certain conditions precedent.
(e) Commitment Termination Date: The Commitment Termination
Date will be the earliest of:
(1) the stated maturity date of the DIP Facility;
(2) the date of termination of the Lender's obligations
to make Revolving Loans or to permit existing
Revolving Loans to remain outstanding due to the
occurrence of an event of default;
(3) the date of indefeasible prepayment in full by the
Borrower of the Revolving Loans and the permanent
reduction of all Commitments to zero dollars;
(4) the date on which any liens securing any outstanding
obligations or payments to the Lender is set aside or
avoided or the claims are disallowed in any
manner; and
(5) the effective date of a confirmed Plan in the
Borrower's Chapter 11 case.
(f) Use of Proceeds: The Borrower will utilize the proceeds
of the Revolving Loans solely for working capital and
other general corporate purposes of the Borrower not in
contravention of any requirement of law or any DIP
Facility documents and as are approved by the Bankruptcy
Court.
(g) Interest: The Borrower will pay interest to the Lender
in arrears in respect of the unpaid principal amount of
each Revolving Loan on each applicable payment date at
the applicable LIBOR Rate plus 4.25%.
(h) Default Rates: So long as an event of default has
occurred and is continuing, the interest rates applicable
to the Revolving Loans will be increased by two
percentage points per annum above the rates of interest
otherwise applicable unless Lender elects to impose a
smaller increase (in either case, the Default Rate), and
all outstanding obligations will bear interest at the
Default Rate applicable to the obligations. Interest at
the Default Rate will accrue from the initial date of the
Event of Default until that Event of Default is cured or
waived and will be payable upon demand.
(i) Priority: Pursuant to Section 364(c)(1) of the
Bankruptcy Code and subject to the Court's order, the
Borrower's obligations under the DIP Facility will at all
times, constitute a Superpriority Claim in the Borrower's
Chapter 11 case, having priority over all administrative
Expenses of the kind specified in Sections 503(b) or
507(b), subject only to the Carve Out.
(j) Security: To secure all of its obligations under the DIP
Facility, the Borrower will grant in favor of the Lender
a security interest in all the real and personal property
and other assets -- other than certain excluded property
-- of the Borrower:
* a legal, valid, perfected and enforceable security
interest in all right, title and interest of the
Borrower in the Collateral;
* a legal, valid, perfected and enforceable security
interest in all avoidance power claims and any
recoveries under Section 549;
* pursuant to Section 364(c)(2), a first priority
perfected security interest in all of the Collateral
that is not encumbered by liens in favor of any other
person, subject only to certain permitted liens;
* pursuant to Section 364(c)(3), a fully perfected
security interest in all of the Collateral encumbered
on the Petition Date, subject only to certain permitted
liens.
(k) Carve-Out: The Lender's DIP Lien is subject to a carve-
out for:
* the allowed unpaid fees and expenses payable under
Sections 330 and 331 to professional persons retained
by the Borrower in its Chapter 11 case; and
* the payment of fees pursuant to 28 U.S.C Section 1930
and to the clerk of the Bankruptcy Court.
(l) Indemnification: The Borrower will indemnify and hold
harmless the Lender for all claims arising in connection
with, among other things:
* the Borrower's Chapter 11 case and the extension,
suspension, termination and administration of the DIP
Facility, other than to the extent the liability arises
by reason of the Lender's gross negligence or willful
misconduct;
* certain costs, losses or expenses arising in connection
with LIBOR Rate Revolving Loans; and
* certain liabilities for taxes in connection with the
DIP Facility.
Mr. Prostok tells the Court that the proposed DIP Facility
should be approved because:
(1) the terms and interest rates are market standards;
(2) no fees will be charged in connection with the DIP
Facility;
(3) the DIP Facility Agreement does not contain many of the
typical reporting requirements and obligations; and
(4) the terms were negotiated in good faith and at arm's-
length.
* * *
Judge Lynn authorizes Mirant Lovett, on an interim basis, to
borrow money and incur indebtedness under the DIP Facility
Documents through the final hearing in an amount not to exceed
US$10,000,000.
Judge Lynn says the DIP Facility Documents will constitute
legal, valid and binding obligations of the parties upon
execution and delivery.
The Court will convene a final hearing on Mirant Lovett's
request to obtain secured DIP Financing on May 9, 2007, at 9:30
a.m.
Any objections must be filed no later than May 7, 2007, at 4:00
p.m., CST.
About Mirant Corporation
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally. Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant NY-Gen,
LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York,
Inc., and Hudson Valley Gas Corporation, were not included and
have yet to submit their plans of reorganization. (Mirant
Bankruptcy News, Issue No. 120; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
MIRANT CORP: Inks Sale Pact for Caribbean Biz with Marubeni Unit
----------------------------------------------------------------
Mirant Corporation (NYSE: MIR) has entered into a definitive
purchase and sale agreement with a subsidiary of Marubeni
Corporation for the sale of its Caribbean business for US$1.082
billion, which includes related debt of approximately US$350
million, power purchase obligations of approximately US$153
million and estimated working capital at closing. The net
proceeds to Mirant from the sale are expected to be
approximately US$565 million after payment of transaction costs
estimated to be approximately US$14 million. Upon completion of
the transaction, Mirant expects to realize a pre-tax gain of
approximately US$65 million for financial reporting purposes and
a gain for tax reporting purposes of approximately US$150
million. The transaction is expected to close by mid-2007 after
the satisfaction of various conditions to closing.
Mirant's Caribbean business includes controlling interests
in two integrated utilities: Jamaica Public Service Company
of which Mirant owns 80% and Grand Bahama Power Company
of which Mirant owns 55%. Mirant also owns 39% of PowerGen, the
owner and operator of three power plants in Trinidad, 25% of
Curacao Utilities Company which provides electricity and other
utility services and a $40 million convertible preferred equity
interest in Aqualectra, an integrated water and electric company
in Curacao.
JPS purchases power under power purchase agreements with two
independent generation companies. The sole purpose of these
independent companies is to generate power for sale to JPS.
Prior to the third quarter of 2006, Mirant had accounted for the
PPAs as capital leases. During the third quarter of 2006,
Mirant reevaluated these PPAs based on evolving interpretations
of the Financial Accounting Standards Board Interpretation No.
46, "Consolidation of Variable Interest Entities," as amended.
As a result of this reevaluation, beginning with the third
quarter of 2006, Mirant now consolidates the assets and
liabilities of the two independent generation companies and,
accordingly, does not reflect the PPAs as capital leases. The
PPAs will remain obligations of JPS after the sale is completed.
"We have valued doing business in Curacao, Grand Bahama,
Jamaica and Trinidad," said Edward R. Muller, Chairman and Chief
Executive Officer of Mirant Corporation. "We wish the people of
all four countries and Marubeni Corporation great success."
Mirant was advised in the transaction by J.P. Morgan
Securities Inc., as financial advisor.
About Mirant Corporation
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally. Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant NY-Gen,
LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York,
Inc., and Hudson Valley Gas Corporation, were not included and
have yet to submit their plans of reorganization.
MIRANT: Court OKs Bowline to Assume US$200MM Insurance Policy
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved Mirant Bowline LLC, an affiliate of Mirant Corp., to
assume an insurance policy -- Owner's Title of Insurance Policy
No. 26-031- 92-56864 -- issued by Fidelity National Title
Insurance Company of New York for US$200,716,836.
As reported in the Troubled Company Reporter on March 21, 2007,
Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth,
Texas, informs the Court that the Insurance Policy covered
certain real property purchased by Mirant Bowline located in
the Town of Haverstraw and the Village of West Haverstraw,
County of Rockland, New York. The Insurance Policy became
effective on July 1, 1999.
Mr. Prostok asserts that the Fidelity Insurance Policy is
economically beneficial to Mirant Bowline. In addition,
Mirant Bowline is current on all prepetition and postpetition
obligations under the Insurance Policy, and the requirements of
Section 365(b)(1) of the Bankruptcy Code governing the treatment
of defaults in contracts and unexpired leases do not apply.
Accordingly, Mr. Prostok said, there are no cure amounts as of
the assumption of the Insurance Policy.
About Mirant Corp.
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.
When the Debtors filed for protection from their creditors, they
listed $20,574,000,000 in assets and $11,401,000,000 in debts.
The Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant
NY-Gen, LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New
York, Inc., and Hudson Valley Gas Corporation, were not included
and have yet to submit their plans of reorganization. (Mirant
Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
WARNER MUSIC: Receives US$110 Mil. from Bertelsmann-Napster Deal
----------------------------------------------------------------
Warner Music Group Corp. disclosed Tuesday in a regulatory
filing with the Securities and Exchange Commission that it will
receive US$110 million from a settlement of contingent claims
held by the company relating to Bertelsmann AG's relationship
with Napster in 2000-2001.
Warner Music says the settlement covers the resolution of the
legal claims of the company's recorded music and music
publishing businesses.
According to the company, Bertelsmann admits no liability in
making the settlement.
Last month, Standard & Poor's Ratings Services noted that as of
Dec. 31, 2006, Warner Music had approximately US$2.27 billion of
debt outstanding.
Warner Music's credit status prompted S&P to place its ratings
on the company, including the 'BB-' corporate credit rating, on
CreditWatch with negative implications, following the company's
statement that it is exploring a possible merger agreement with
EMI Group PLC, which EMI management has confirmed.
"The two companies have not announced a deal or the possible
structure of financing, other than indicating that consideration
for any deal would be entirely in cash," said Standard & Poor's
credit analyst Michael Altberg. "This has prompted our
consideration of a potential downgrade."
Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--
is a music company that operates through numerous international
affiliates and licensees in more than 50 countries, including
Brazil, China, Hungary, Philippines, among others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
March 1, 2007, Standard & Poor's Ratings Services placed its
ratings on Warner Music Group Corp., including the 'BB-'
corporate credit rating, on CreditWatch with negative
implications, following the company's statement that it
is exploring a possible merger agreement with EMI Group PLC (BB-
/Watch Neg/B), which EMI management has confirmed.
=================
S I N G A P O R E
=================
FLEXTRONICS INT'L: Fourth Quarter Earnings Tripled to US$121MM
--------------------------------------------------------------
Flextronics International Ltd.'s disclosed that its fourth-
quarter earnings nearly tripled to US$121 million compared to
US$43 million a year earlier while net sales climbed 32%, The
Wall Street Journal reports.
According to the report, adjusted net income rose 24% to US$122
million, or 20 cents a share compared to US$98 million, or 16
cents a share a year earlier. This excludes stock-based
compensation, restructuring and other charges.
Net sales for the quarter ended March 31, 2007, climbed to
US$4.68 billion compared to US$3.53 billion a year earlier, the
report notes.
About Flextronics International
Headquartered in Singapore, Flextronics International Ltd.
-- http://www.flextronics.com/-- provides electronics
manufacturing services through a network of facilities in over
30 countries worldwide including Finland, Hungary, Sweden and
the United Kingdom. The company delivers complete design,
engineering, and manufacturing services to aerospace,
automotive, computing, consumer digital, industrial, and
infrastructure, medical and mobile original equipment
manufacturers.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 9, Moody's Investors Service revised the outlook on
Flextronics International to stable from negative, while
affirming its corporate family rating to Ba1.
LEAR CORP: Earns US$49.9MM in First Quarter Ended March 31
----------------------------------------------------------
Lear Corporation reported financial results for the first
quarter with a net income of US$49.9 million including
restructuring costs and other special items, for the first
quarter of 2007. This compares with net income of USUS$17.9
million including restructuring costs and other special items,
for the first quarter of 2006. It also updated its 2007
financial outlook.
For the first quarter of 2007, the company reported net sales of
USUS$4.4 billion and pretax income of US$82.3 million, including
restructuring costs of US$15.8 million and other special items
totaling US$10.7 million. For the first quarter of 2006, Lear
reported net sales of US$4.7 billion and pretax income of
US$14.8 million. Excluding restructuring costs and other
special items, Lear would have had pretax income of US$108.8
million in the first quarter of 2007. This compares with pretax
income before restructuring costs and other special items of
US$15.5 million in the same period a year earlier. A
reconciliation of pretax income before restructuring costs and
other special items to pretax income as determined by generally
accepted accounting principles is provided in the supplemental
data pages.
Bob Rossiter, Lear chairman and chief executive officer, said,
"Now that we have completed the divestiture of the Interior
business, our full attention is on strengthening our core
seating, electronics and electrical distribution businesses."
The decline in net sales for the quarter reflects primarily
lower production in North America and the divestiture of Lear's
European Interior business, offset in part by new business
mainly outside of North America and favorable foreign exchange.
Operating improvement reflects favorable cost performance and
the benefit of new business, offset in part by lower production
in North America.
First-quarter free cash flow was negative US$32.1 million, as
compared with negative US$91.3 million in the first quarter of
2006. The improvement primarily reflects lower capital spending
and the increase in earnings.
As of March 31, 2007, the company listed total assets of
US$7.6 billion and total liabilities of US$6.9 billion,
resulting in a US$692.5 million in total stockholders' equity.
Key Events in 2006
During the quarter, the company made important progress on
strategic priorities by completing the North American Interior
business joint venture.
In addition, Lear maintained its quality and customer service
momentum and was the recipient of several customer awards and
recognition, including GM Supplier of the Year, three World
Excellence awards from Ford and Superior Supplier Diversity and
Excellence in Quality from Toyota, as well as other performance
awards from Porsche, Fiat-Brazil, Mazda and Shanghai GM.
The company also continued to implement its global restructuring
plan, expand its infrastructure in Asia and grow its global
sales with Asian manufacturers.
Full-Year 2007 Outlook
The outlook excludes results for Lear's Interior business for
the full year. On this basis, Lear expects 2007 net sales of
about US$14.8 billion.
Lear anticipates 2007 income before interest, other expense,
income taxes, restructuring costs and other special items to be
in the range of US$580 to US$620 million, an improvement of
US$20 million from our prior forecast. The revised full-year
outlook reflects more favorable production volumes and improved
cost performance in international operations.
Restructuring costs in 2007 are estimated to be approximately
US$100 million. Interest expense is estimated to be in the
range of US$210 million to US$220 million. Pretax income before
restructuring costs and other special items is estimated to be
in the range of US$290 to US$330 million. Tax expense is
expected to be between US$100 million and US$120 million,
depending on the mix of earnings by country. Capital spending
in 2007 is estimated at about US$250 million. Depreciation and
amortization expense is estimated to be about US$310 million.
Free cash flow is expected to be positive at about US$240
million for the year.
Key assumptions underlying Lear's financial outlook include
expectations for industry vehicle production of about 15.2
million units in North America and 19.3 million units in Europe.
Lear continues to see production for the Big Three in North
America being down slightly, as compared with 2006. In
addition, the company is assuming an exchange rate of
US$1.32/Euro.
About Lear Corp.
Headquartered in Southfield, Michigan, Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive interior
systems and components. Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products.
Lear has operations in these Asian countries: Singapore, China,
India, Japan, Thailand, and the Philippines.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Feb. 15, 2007, that following Lear's agreement to be acquired by
Carl Icahn-controlled American Real Estate Partners, L.P.,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Lear to 'B' from 'B+' and placed its ratings on
CreditWatch with negative implications.
The TCR-AP also noted on Feb. 7, 2007, that Moody's Investors
Service placed Lear's corporate family rating at B2, under
review for possible downgrade. The company's speculative grade
liquidity rating of SGL-2 has been affirmed.
RED HAT: Will Acquire MetaMatrix
--------------------------------
Heather Havenstein, at Reseller News, reports that Red Hat said
it signed a definitive agreement to acquire data integration
specialist Metamatrix.
On completion of the transaction, MetaMatrix will be added to
the federated data services SOA layer for JBoss, vnunet.com
says.
The software is reportedly governed by a proprietary license.
JBoss will release the software under the open source Lesser
General Public License, General Public License or Apache
licenses.
Martin LaMonica at CNET News.com relates that Red Hat said it
plans to change MetaMatrix's business model to align it with its
seller's open-source structure. It will move pricing for
MetaMatrix products to a subscription model, rather than an
upfront one-time license.
Tim Yeaton, senior vice president of enterprise solutions at Red
Hat, told CNET News.com's LaMonica that Red Hat will make all
the MetaMatrix software available under an open-source license
within a year.
LaMonica at CNET News.com says that Red Hat launched on April 24
a revamped open-source Web site at JBoss.org aimed at developers
who participate in open-source projects. Red Hat also made
integrated packages of different JBoss products for corporate
clients who want stable software distributions and multiyear
support contracts. The first package will include:
-- JBoss application server,
-- Hibernate data-access software,
-- clustering, and
-- Seam Web development tools.
Shaun Connolly, vice president of product management for the
JBoss division at Red Hat, told CNET News.com's LaMonica that
Red Hat will release a JBoss integration package later this
year, which will include its JBoss ESB.
About MetaMatrix
MetaMatrix develops enterprise information integration software
for corporate data. Its MetaBase product functions as a data
repository for enterprise-wide metadata and includes data
modeling, search, view, and data import/export applications.
Its MetaMatrix Server allows companies to create virtual
databases used to coordinate and control access to corporate
information. The company also offers services like consulting,
training, and support. Among its partners, MetaMatrix counts
technology giants IBM, Sun Microsystems, and Hewlett-Packard.
About Red Hat
Red Hat, Inc. -- http://www.redhat.com/ -- provides open source
software solutions to the enterprise, including its core
enterprise operating system platform, Red Hat Enterprise Linux,
as well as other Red Hat enterprise technologies. It employs an
open source software development and licensing model that uses
the collaborative input of an international community of
contributors to develop and enhance software.
The company has offices in Singapore, Germany and Argentina.
The Troubled Company Reporter - Asia Pacific on Nov. 3, 2006,
reported that Standard & Poor's Ratings Services revised its
outlook on Raleigh, N.C.-based operating systems provider Red
Hat Inc. to stable from positive, and affirmed its 'B+'
corporate credit rating.
PETROLEO BRASILEIRO: CADE Reviews Sanction Over Iparinga Buy
------------------------------------------------------------
The Administrative Economic Defense Council -- CADE -- changed a
few of the items in the Injunction adopted last April 17th
regarding Petroleo Brasileiro SA's purchase of the Ipiranga
Group assets. With the changes, CADE acknowledges Petrobras
remains holding a minority participation in the Central
Petroquimica do Sul -- Copesul -- after the acquisition. So far
as fuel distribution is concerned, it granted the buyers --
Petrobras and the Ultra Group -- ten days to present an
alternate corporate governance model that will preserve
competition in the sector.
Petrochemicals
The CADE's plenary sitting revoked the prohibition it had
imposed on Petrobras' participation in discussions or strategic
and commercial policy decisions for Copesul. Instead of the
prohibition, the rules the Shareholder Agreement Petrobras and
Braskem signed pursuant to the acquisition will go into effect.
The CADE councilors took Petrobras' clarifications regarding the
fact the company held minority participation in Copesul even
before the Ipiranga Group assets were purchased into account.
In its arguments, Petrobras showed that purchasing control over
the Group does not give it relevant influence over Copesul form
the competition viewpoint, especially considering the fact
Petrobras will remain a minority shareholder in the
petrochemical plant and that it will continue having a minority
presence in the unit's Board of Directors.
Fuel Distribution
So far as the fuel distribution market is concerned, the CADE
clarified that the terms of the Injunction do not prevent
Petrobras and Ultrapar -- the companies that purchased Ipiranga
Group's distribution business -- from discussing a corporate
governance model that will prevent any chance competition will
be affected. The CADE gave Petrobras and Ultrapar ten days to
present their proposal and authorized the parts to hold meetings
for this purpose.
About Petroleo Brasileiro
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 BB+ ratings on Petroleo Brasileiro's
US$400 million 9% senior unsecured notes due April 1, 2008;
US$750 million 9.125% senior unsecured notes due July 2, 2013;
US$650 million 7.75% senior unsecured notes due Sept. 15, 2014;
and US$750 million 8.375% senior unsecured notes due Dec. 10,
2018.
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Inks Initial Pact to Buy Nigerian NatGas
-------------------------------------------------------------
Angela Macdonald-Smith at Bloomberg News reports that Brazil's
state-owned oil firm Petroleo Brasileiro SA has signed an
initial accord to purchase liquefied natural gas from Nigeria.
Petroleo Brasileiro signed a "master sales agreement" with
Nigeria for spot cargoes of liquefied natural gas, Ms.
Macdonald-Smith at Bloomberg News says, citing Ildo Sauer,
Petroleo Brasileiro's gas and energy director.
Petroleo Brasileiro is also seeking supplies from other
countries to lessen its reliance on Bolivian gas, Bloomberg
News' Ms. Macdonald-Smith relates.
Mr. Sauer told reporters in Barcelona, Spain, that the liquefied
natural gas will be supplied to power plants through two or
three re-gasification ships off the coast. According to
Bloomberg News' Ms. Macdonald-Smith, Mr. Sauer said the ships
will be the temporary floating import terminals.
Petroleo Brasileiro signed a contract to lease two Golar LNG
Ltd. re-gasification ships for US$90 million per year. It is
currently negotiating for a third ship, Ms. Macdonald-Smith at
Bloomberg News reports. Mr. Sauer said that the first ship will
be available in March 2008, while the second ship will be
available in March 2009. The two ships, he said, will provide
as much as 21 million cubic meters a day of gas import capacity.
According to him, the third ship would take capacity to 35
million cubic meters of gas per day.
Ms. Macdonald-Smith at Bloomberg News says that Brazil gets over
90% of its electricity from hydroelectric plants. The liquefied
natural gas imports will be used in dry seasons or exported when
not needed.
"To have flexible supply is interesting. We think this is a
very creative solution that allows us flexibility, allows us
safety, security of supply, and especially is the most economic
option," Mr. Sauer said at a media briefing at the LNG15
conference in Barcelona.
Petroleo Brasileiro will charter the vessels for liquefied
natural gas shipping when they won't be needed in Brazil.
Petroleo Brasileiro may redirect liquefied natural gas to Europe
and the U.S. if the company decides to sign purchase contracts,
Mr. Sauer told Ms. Macdonald-Smith at Bloomberg News.
About Petroleo Brasileiro
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 BB+ ratings on Petroleo Brasileiro's
US$400 million 9% senior unsecured notes due April 1, 2008;
US$750 million 9.125% senior unsecured notes due July 2, 2013;
US$650 million 7.75% senior unsecured notes due Sept. 15, 2014;
and US$750 million 8.375% senior unsecured notes due Dec. 10,
2018.
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.
===============
T H A I L A N D
===============
PHELPS DODGE: Acquisition Boosts Freeport's First Qtr. Profits
--------------------------------------------------------------
Business News Americas reports that that Freeport McMoRan Copper
& Gold's profits increased to US$476 million in the first
quarter 2007, compared to US$251 million year-on-year, due to
its US$26-billion takeover of copper miner Phelps Dodge.
Freeport McMoRan Chief Executive Officer Richard Adkerson said
in a conference call on April 24, "This was an unusual quarter
because we only picked up 12 days of the Phelps Dodge
operations."
According to BNamericas, Freeport McMoRan said in its financial
report that its revenues in the quarter increased to US$2.3
billion, from US$1.09 billion year-on-year, including Phelps
Dodge's March 20-31 consolidated revenues of US$515 million.
BNamericas relates that Freeport McMoRan's pro forma
consolidated sales, accounting for Phelps Dodge's production,
totaled 1.03 billion pounds of copper, 978,100 ounces of gold
and 18.6 million pounds of molybdenum.
Freeport McMoRan said that its pro forma copper production from
South America in the first quarter -- 100% derived from former
Phelps assets -- totaled 307 million pounds, BNamericas notes.
Freeport McMoRan's 80% stake in the Candelaria mine in Chile was
101 million pounds in the first quarter 2007, compared to 118
million pounds in the first quarter 2006. The firm's 53.6%
interest in the Cerro Verde mine in Peru came to 112 million
pounds in the first quarter 2007, versus 50.1 million pounds
year-on-year. Its 51% stake in El Abra in Chile declined to
94.5 million pounds from 121 million pounds.
Freeport McMoRan sees sales of 3.9 billion pounds of copper, 1.9
million ounces of gold and 70 million pounds of molybdenum in
2007, BNamericas states.
About Freeport-McMoran Copper & Gold Inc.
Freeport-McMoRan Copper & Gold Inc. is a Louisiana based
producer of copper and gold through its Grasberg mine in
Indonesia. Freeport's revenue in 2006 was US$5.8 billion.
About Phelps Dodge Corp.
Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.
Phelps Dodge has operations in Thailand, Venezuela, China, the
Philippines and Japan, among others.
As reported in the Troubled Company Reporter-Latin America on
March 21, 2007, Freeport-McMoRan Copper & Gold Inc. has
completed its acquisition of Phelps Dodge Corp. (NYSE: PD),
creating the world's largest publicly traded copper company.
* * *
As reported in the TCR-LA on April 12, 2007, Fitch changed the
Rating Outlook to Positive for Phelps Dodge Corp.'s new owner,
Freeport-McMoRan Copper & Gold, after 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.
Fitch assigned these ratings to Freeport-McMoRan, the Outlook
was revised to Positive:
-- Issuer Default Rating 'BB';
-- US$500 million PT Freeport-McMoRan Indonesia/
Freeport-McMoRan 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-';
-- Freeport-McMoRan Unsecured Notes due 2015 and 2017 'BB-';
and
-- Freeport-McMoRan Convertible Preferred Stock B+.
Fitch assigned these ratings to Phelps Dodge and the Outlook was
revised to Positive:
-- Cyprus Amax 7.375% Notes due May 2007 'BB-';
-- Senior Unsecured Notes and Debentures 'BB-';
-- 8.75% notes due 2011;
-- 7.125% debentures due 2027;
-- 9.50% notes due 2031; and
-- 6.125% notes due 2034.
*********
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. Azela Jane Taladua, 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
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*** End of Transmission ***