/raid1/www/Hosts/bankrupt/TCRAP_Public/070504.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, May 4, 2007, Vol. 10, No. 88
Headlines
A U S T R A L I A
AMSCAN HOLDINGS: Gets Refinancing Commitments from Three Lenders
AMSCAN HOLDINGS: Moody's Rates US$425 Million Term Loan at B1
AMSCAN HOLDINGS: S&P Rates US$150MM Credit Facility at BB-
AUSTRALASIAN PROMOTIONAL: Members & Creditors to Meet on May 31
COMMSCOPE INC: Buys Signal Vision to Expand Broadband Portfolio
EBBOTT & FENNER: Enters Voluntary Liquidation
GEOKINETICS INC: Declares Public Offering of Common Stock
GIRRAWEEN SCAFFOLD: Supreme Court to Hear Petition on May 10
GOLD CONSULTING: Federal Court Issues Wind-Up Order
INTERNATIONAL LOTTERY: Undergoes Voluntary Wind-Up
NEALE JONES: Will Declare Priority Dividend on May 29
NIGHCAM PTY: Placed Under Voluntary Liquidation
PETERS CONSTRUCTIONS: Appoints Mary Kathleen Potts as Liquidator
RILEY HOLDINGS: Shareholders Tap Chippindale as Liquidator
STONE MILLER: Will Declare Priority Dividend on June 6
SYMBION HEALTH: Gets AU$2.78-Billion Bid from Rival Healthscope
C H I N A & H O N G K O N G
BOMBARDIER INC: Wins Shanghai's US$204 Million Train Order
CELION LIMITED: Liquidator to Present Wind-Up Report on May 28
CITIC GROUP: Unit Offers US$950 Million for Kazakh Oil Stake
EPICOR SOFTWARE: Plans to Offer US$200MM of Convertible Sr Notes
GRAND MARINE: Members and Creditors to Meet on May 28
HARVEST FOCUS: Members' Final Meeting Set for May 28
ROYAL CARIBBEAN: Earns US$8.8 Million in Quarter Ended March 31
SALTON INC: Leonhard Dreimann Resigns as Chief Executive Officer
* Taiwan Banks Faces Tough Year on Profitability, TRC Says
I N D I A
BAUSCH & LOMB: Declares Quarterly Dividend of US$0.13 Per Share
CABLE & WIRELESS: Denies Newspaper Report on Sale of Units
STATE BANK OF INDIA: To Raise INR10,000 Crore in FY2007-08
SYNDICATE BANK: Board to Meet on May 8 to Consider Financials
TATA MOTORS: Delhi Court Upholds DTC Order for 500 Buses
TATA MOTORS: April Sales Up 11% to 40,486 Vehicles
TATA POWER: Acquires Coastal Gujarat Power From Power Finance
TATA POWER: To Raise INR1,200 Cr. by Issue of Shares to Promoter
TATA POWER: To Borrow US$79 Mil. From ADB for Wind Power Project
UCO BANK: Earns INR309 Million in Quarter Ended March 31, 2007
VNESHTORGBANK JSC: To Float 22.5% of Equity in Global Offering
VNESHTORGBANK JSC: Prices Share Offering at Up to 11.30 Kopecks
I N D O N E S I A
ALCATEL-LUCENT: Partners With Hughes Network for ICO Project
AVNET INC: Inks Deal with Vanguard for AccuSPEECHTM Technology
GOODYEAR TIRE: Selects Tandy for Auto Accessories Manufacturing
INDOSAT: Russian Altimo Rumored to Buy 42% Stake
NORTEL NETWORKS: Reports Expected Results for First Quarter 2007
NORTEL NETWORK: Appoints David Drinkwater as Temporary CFO
J A P A N
FUJI HEAVY: Operating Profit Declines 18% in FY2007
MITSUBISHI MATERIALS: JV to Invest US$1 Billion for Expansion
MITSUBISHI UFJ TRUST: Offers Cross-Border Estate Admin. Services
NIKKO CORDIAL: Citigroup Gets JPY1.45 Tril. Loan to Buy Shares
K O R E A
FRESH DEL MONTE: Earns US$51.6 Million in First Quarter 2007
LG TELECOM: 1Q Profit Falls 37% Due to Higher Marketing Costs
SHINHAN CARD: Fitch Assigns 'C' Individual Rating
TOWER AUTOMOTIVE: Disclosure Statement Hearing Set for June 5
* Fitch Issues Report on Korean Banks' 2006 Results
M A L A Y S I A
LITYAN HOLDINGS: Loan Default Reaches MYR20.5 Mil. at April 30
MBF CORP: Securities Commission Rejects Reform Plan Proposals
METROPLEX BERHAD: Court Moves Wind-Up Hearing Date to May 24
METROPLEX BERHAD: Asks Bourse to Extend Plan Filing Deadline
N E W Z E A L A N D
ALEXANDER DEVELOPMENTS: Receiving Proofs of Debt Until May 11
COUGAR PROPERTIES: Commences Liquidation Proceedings
EXEMPLARY HOMES: Shareholders Agree to Liquidation of Business
INCH BY INCH: Placed Under Liquidation
MARGAN PROPERTIES: Requires Creditors to Prove Debts by May 11
NAPIER TURF: High Court to Hear Wind-Up Petition on May 17
POTAKA FORESTRY: Wind-Up Petition Hearing Set for May 7
SCENICLAND SERVICES: Wind-Up Petition Hearing Set for May 11
TRIBEWORKS INC: Williams & Webster Raises Going Concern Doubt
VIDEOWORKS LTD: Appoints K. P. Brown as Liquidator
VISION CUBED: Fixes May 25 as Last Day for Receiving Claims
VISITORS SOUVENIR: Subject to Wind-Up Petition
WINDSOR PROPERTY: High Court to Hear Wind-Up Petition on May 10
* Gas Prices Remain Achilles' Heel for NZ Utilities, S&P Says
P H I L I P P I N E S
CHIQUITA BRANDS: Posts US$3.4 Million Net Loss in 1st Qtr. 2007
CHIQUITA BRANDS: Selling Cargo Vessels for US$277 Million
PHILCOMSAT: Fails to Submit Annual Report; Trading Halted
PREMIERE ENT: Sycip Gorres Velayo Raises Going Concern Doubt
PRYCE CORP: Posts PHP231.5 Million Net Loss for 2006
RIZAL COMMERCIAL: Elects John Deveras as New Sr. Vice President
S I N G A P O R E
ADVANCED MICRO: Completes US$2.2-Bil of 6% Senior Notes Offering
FLEXTRONICS INT'L: Three Officers Sell 198,751 Ordinary Shares
PETROLEO BRASILEIRO: Bolivia Threatens to Nationalize Locat Unit
PETROLEO BRASILEIRO: In Talks with Astra Over Pasadena Expansion
PETROLEO BRASILEIRO: Inks Fuel Research Pact with Denmark
VALEANT PHARMACEUTICALS: Earns US$8,568,000 in 1st Quarter 2007
T H A I L A N D
ARVINMERITOR INC: Board Declares 10 Cents Per Share Dividend
ASIA HOTEL PCL: Names New Auditors and Members of Board
BLOCKBUSTER INC: Posts US$46.4MM Net Loss in Qtr. Ended April 1
CIRCUIT ELECTRONIC INDUSTRIES: Stock Trading Still Halted by SET
FEDERAL-MOGUL: Creditors Vote to Accept Fourth Amended Plan
G STEEL PCL: Elects New Directors & Auditors for 2007
KRUNG THAI BANK: New Accounting Standard Might Affect Revenues
- - - - - - - -
=================
A U S T R A L I A
=================
AMSCAN HOLDINGS: Gets Refinancing Commitments from Three Lenders
----------------------------------------------------------------
Amscan Holdings Inc. has received commitments from Credit
Suisse, Bank of America Securities and Lehman Brothers to
refinance its senior debt facilities that will enable the
company to lower its overall cost of debt and improve its
financial flexibility.
The refinancing is expected to consist of a five-year US$150
million asset-based revolving credit facility and a six-year
US$425 million term loan. The company's leverage at closing
will remain largely unchanged as the net proceeds are planned to
be used to repay existing senior debt and related prepayment
fees. The commitments provide that:
i. ABL facility will be secured by a first priority lien
on accounts receivable and inventories, with a second
priority lien on all other assets of the Company;
ii. term loan will be secured by a first priority lien on
all of the company's assets, except for accounts
receivable and inventories, and a second priority lien
on accounts receivable and inventories;
iii. term loan will amortize at 1% per year with a balloon
payment at maturity; both facilities will be guaranteed
by the company's domestic subsidiaries; and
iv. both will be subject to customary prepayment provisions
and negative covenants and will include only incurrence-
based financial covenants.
The company expects the refinancing to close during May 2007.
Headquartered in Elmsford, New York, Amscan Holdings Inc. makes
more than 400 specially designed ensembles of party accessories
and novelties, including balloons, invitations, pi¤atas,
stationery, and tableware. Amscan sells to more than 40,000
retail outlets worldwide, mainly party goods superstores, mass
merchandisers, and other distributors. Party City accounted for
about 13% of sales before the firm bought it in 2005. Amscan
itself makes party items (which bring in about 60% of sales) and
buys the rest from other manufacturers, primarily in Asia. It
has production and distribution facilities in Asia, Australia,
Europe, and North America. Berkshire Partners and Weston
Presidio are Amscan's principal owners.
AMSCAN HOLDINGS: Moody's Rates US$425 Million Term Loan at B1
-------------------------------------------------------------
Moody's Investors Service rated Amscan Holding, Inc's proposed
secured revolving credit facility at Ba3 (LGD-2, 28%) and
secured term loan at B1 (LGD-3, 36%). Moody's also affirmed the
8.75% senior subordinated notes (2014) at Caa1 (LGD-5, 88%) and
the corporate family rating at B2. Proceeds from the new debt
are to be used to refinance the existing 1st-lien bank loan and
2nd-lien term loan.
Ratings assigned are:
- US$150 million 5-year secured revolving credit facility at
Ba3 LGD-2, 28%);
- US$425 million 6-year secured term loan at B1 (LGD-3, 36%).
These ratings are affirmed:
- US$175 million 8.75% senior subordinated notes (2014) at
Caa1 (LGD-5, 88%);
- Corporate family rating at B2;
- Probability of default rating at B2.
Moody's will withdraw its ratings on the existing first-lien
bank loan (comprised of an US$85 million revolving credit
facility and US$325 million term loan) and US$60 million second-
lien term loan following completion of the proposed transaction.
The corporate family rating assignment of B2 reflects the
balance of certain qualitative rating drivers that have low
investment grade characteristics with important quantitative
attributes that are solidly non-investment grade. In
particular, driving down the rating are the weak credit metrics
reflecting high leverage, low fixed charge coverage, and limited
free cash flow. Also constraining the rating are the company's
relatively small size and financial policy, in which a
considerable portion of discretionary cash flow will be invested
in growth. Partially offsetting these risks are Moody's
expectation that the company will use some discretionary cash
flow to repay debt ahead of schedule, Amscan's leading market
position in the narrow segment of decorative party goods, and
the diversity of wholesale and retail operations.
The stable outlook anticipates that the company will steadily
grow revenue and cash flow. The outlook also considers Moody's
expectation that the company's policy with respect to uses of
discretionary cash flow will be measured, resulting in modest
balance sheet improvement. In addition, Moody's also expects
that the company will maintain solid liquidity through
moderation of planned growth capital investment if operating
results fall below plan.
Amscan Holdings, Inc, with headquarters in Elmsford, New York,
manufactures decorative party goods and is the largest
manufacturer of metallic balloons in the world. The company's
products are sold at about 770 owned or franchised Party City
and Party America retail locations, as well as to external
customers. Pro forma revenue for the twelve months ending
December 31, 2006 exceeded US$1.1 billion.
Headquartered in Elmsford, New York, Amscan Holdings Inc. makes
more than 400 specially designed ensembles of party accessories
and novelties, including balloons, invitations, pi¤atas,
stationery, and tableware. Amscan sells to more than 40,000
retail outlets worldwide, mainly party goods superstores, mass
merchandisers, and other distributors. Party City accounted for
about 13% of sales before the firm bought it in 2005. Amscan
itself makes party items (which bring in about 60% of sales) and
buys the rest from other manufacturers, primarily in Asia. It
has production and distribution facilities in Asia, Australia,
Europe, and North America. Berkshire Partners and Weston
Presidio are Amscan's principal owners.
AMSCAN HOLDINGS: S&P Rates US$150MM Credit Facility at BB-
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed all of its ratings
on Elmsford, New York-based Amscan Holdings Inc., including the
'B' corporate credit rating. At the same time, Standard &
Poor's assigned its 'BB-' bank loan rating and '1' recovery
rating to Amscan's proposed US$150 million asset-based revolving
credit facility, indicating the expectation of full (100%)
recovery of principal in the event of a payment default.
In addition, Standard & Poor's assigned its 'B' bank loan rating
and '3' recovery rating to the company's proposed US$425 million
senior secured term loan B facility, indicating the expectation
of meaningful (50%-80%) recovery of principal in the event of a
payment default. The bank loan ratings are based on preliminary
terms and are subject to review upon final documentation. The
outlook is negative.
"The ratings on Amscan reflect its high debt leverage, narrow
business focus, and participation in the highly competitive and
fragmented party goods industry," said Standard & Poor's credit
analyst Christopher Johnson. Partially mitigating these factors
is the company's market-leading presence in the niche party
goods industry, and the industry's relatively recession-
resistant characteristics.
Headquartered in Elmsford, New York, Amscan Holdings Inc. makes
more than 400 specially designed ensembles of party accessories
and novelties, including balloons, invitations, pi¤atas,
stationery, and tableware. Amscan sells to more than 40,000
retail outlets worldwide, mainly party goods superstores, mass
merchandisers, and other distributors. Party City accounted for
about 13% of sales before the firm bought it in 2005. Amscan
itself makes party items (which bring in about 60% of sales) and
buys the rest from other manufacturers, primarily in Asia. It
has production and distribution facilities in Asia, Australia,
Europe, and North America. Berkshire Partners and Weston
Presidio are Amscan's principal owners.
AUSTRALASIAN PROMOTIONAL: Members & Creditors to Meet on May 31
---------------------------------------------------------------
The members and creditors of Australasian Promotional Products
Group Pty Ltd will meet on May 31, 2007, at 10:00 a.m. to hear a
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 June 15, 2006.
The company's liquidator is:
M. J. M. Smith
Smith Hancock
Level 4, 88 Phillip Street
Parramatta, New South Wales 2150
Australia
About Australasian Promotional
Australasian Promotional Products Association is involved with
membership organizations. The company is located in Victoria,
Australia.
COMMSCOPE INC: Buys Signal Vision to Expand Broadband Portfolio
---------------------------------------------------------------
CommScope, Inc. has completed the acquisition of Signal
Vision, Inc., a supplier of broadband radio frequency subscriber
products. Signal Vision's product lines include passives,
indoor amplifiers and addressable taps. Signal Vision had
revenues of less than US$30 million in 2006.
"We are pleased to add the Signal Vision product line to
CommScope's Broadband portfolio," said Jim Hughes, Executive
Vice President, Broadband Sales and Marketing. "Signal Vision
has earned industry-wide respect for quality, service and
technical leadership. We look forward to building upon this
legacy and expanding the reach of their products through
CommScope's worldwide channels."
Neil Phillips, President of Signal Vision, commented, "After a
successful 31-year history, we believe that it is advantageous
for SVI to join with a strategic partner to accelerate the
growth of our business. CommScope represents the ideal fit for
us given their global presence, similar core values and their
reputation for quality and customer service within the broadband
industry."
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) --
http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications. It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications. Backed by strong research and
development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.
CommScope has facilities in Brazil, Australia, China and
Ireland.
* * *
In August 2006, Standard & Poor's Rating Services affirmed
CommScope's 'BB' corporate credit rating. The outlook is
stable.
EBBOTT & FENNER: Enters Voluntary Liquidation
---------------------------------------------
On April 17, 2007, the members of Ebbott & Fenner Pty Ltd had
their general meeting and agreed to voluntarily wind up the
company's operations.
Bryan Douglas Threlfall was appointed as liquidator.
The Liquidator can be reached at:
Bryan Douglas Threlfall
107-111 Main Street
Murwillumbah, New South Wales 2484
Australia
About Ebbott & Fenner
Ebbott & Fenner Pty Ltd, which is also trading as Paul Ebbott
Holden, is a dealer of new and used cars. The company is
located in New South Wales, Australia.
GEOKINETICS INC: Declares Public Offering of Common Stock
---------------------------------------------------------
Geokinetics Inc. has declared the public offering of 4,500,000
shares of Geokinetics common stock, par value US$.01 per share.
Geokinetics intends to use the net proceeds from this offering
to redeem its US$110 million aggregate principal amount of
Second Priority Senior Secured Floating Rate Notes due 2012
issued in December 2006 and, to the extent net proceeds remain,
to repay outstanding amounts under the revolving credit facility
and for general corporate purposes.
The joint book-running managers for the public offering are RBC
Capital Markets and UBS Investment Bank. Raymond James &
Associates, Inc. and Howard Weil Incorporated are co-managers
for the offering. Geokinetics and one existing stockholder have
granted the underwriters a 30-day option to purchase up to an
additional 675,000 shares of common stock to cover over-
allotments, if any.
Copies of the prospectus may be obtained from:
RBC Capital Markets
60 South 6th Street, 17th Floor,
Minneapolis, MN 55402
Tel: (612) 371-2818
Fax: (612) 371-2837
-- or --
UBS Investment Bank
Attn: Clint Lauriston
299 Park Avenue
New York, NY 10171
Tel: (888) 827-7275
Geokinetics Inc., based in Houston, Texas, is a leading global
leader of seismic acquisition and high-end seismic data
processing and interpretation services to the oil and gas
industry. Geokinetics provides seismic data acquisition services
in North America, South America, Africa, Asia, Australia and the
Middle East. Geokinetics operates in some of the most
challenging locations in the world from the Arctic to
mountainous jungles to the transition zone environments.
The Troubled Company Reporter reported on Dec. 22, 2006, that
Standard & Poor's Ratings Services affirmed its 'CCC+' issue
rating and '3' recovery rating on Geokinetics' second priority
floating rate notes due in 2012, after the disclosure that the
offering will be increased to US$110 million from US$100
million.
Moody's Investors Service in December 2006 assigned a B3
corporate family rating and probability of default rating to
Geokinetics and a SGL-3 speculative liquidity rating. Moody's
also assigned a B3, LGD 4 (53%) rating to Geokinetics' proposed
offering of US$100 million second priority senior secured
floating rate notes due 2012. The outlook is stable.
GIRRAWEEN SCAFFOLD: Supreme Court to Hear Petition on May 10
------------------------------------------------------------
A petition to wind up the operations of Girraween Scaffold &
Plant Hire Pty Ltd will be heard before the Supreme Court of New
South Wales on May 10, 2007.
The petition was filed on April 5, 2007.
The petitioner can be reached at:
c/o Philip Boyce & Associates
1/36 Wingecarribee Street
Bowral, New South Wales 2576
Australia
Telephone:(02) 4861 6790
About Girraween Scaffold
Girraween Scaffold & Plant Hire Pty Ltd is involved with
equipment rental and leasing. The company is located in New
South Wales, Australia.
GOLD CONSULTING: Federal Court Issues Wind-Up Order
---------------------------------------------------
On April 13, 2007, the Federal Court of Australia issued a wind-
up order for Gold Consulting Pty Ltd.
Steven Nicols was appointed as liquidator.
The Liquidator can be reached at:
Steven Nicols
c/o Nicols + Brien
Level 2, 350 Kent Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9299 2289; (02) 9299 2239
e-mail: mail@bankrupt.com.au
About Gold Consulting
Located in New South Wales, Australia, Gold Consulting Pty Ltd
is an investor relation company.
INTERNATIONAL LOTTERY: Undergoes Voluntary Wind-Up
--------------------------------------------------
On April 20, 2007, the members of International Lottery &
Totalizator Systems Australia Pty Limited had their meeting and
decided to voluntarily wind up the company's operations.
Trevor Mark Pogroske and Paul Andrew Billingham were appointed
as liquidators.
The Liquidators can be reached at:
Trevor Mark Pogroske
Paul Andrew Billingham
Chartered Accountants
Grant Thornton
Level 17, 383 Kent Street
Sydney, New South Wales 2000
Australia
About International Lottery
International Lottery & Totalizator Systems Australia is a
distributor of industrial, commercial machineries and
equipments. The company is located in New South Wales,
Australia.
NEALE JONES: Will Declare Priority Dividend on May 29
-----------------------------------------------------
Neale Jones Civil Contracting Pty Ltd will declare a priority
dividend for its creditors on May 29, 2007.
Creditors who cannot prove their debts by May 22, 2007, are
excluded from sharing in the company's dividend distribution.
The company's liquidator is:
Steven Nicols
Nicols + Brien
Level 2, 350 Kent Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9299 2289
Web site: http://www.bankrupt.com.au
About Neale Jones
Neale Jones Civil Contracting Pty Limited is engaged with heavy
construction. The company is located in New South Wales,
Australia.
NIGHCAM PTY: Placed Under Voluntary Liquidation
-----------------------------------------------
At a general meeting held on April 4, 2007, the members of
Nighcam Pty Limited agreed to voluntarily liquidate the
company's business and distribute its assets.
Frank Carbone was appointed as liquidator.
The Liquidator can be reached at:
Frank Carbone
Suite 11, 46-48 Urunga Parade
Miranda, New South Wales 2228
Australia
About Nighcam Pty
Located in New South Wales, Australia, Nighcam Pty Limited is
engaged with holding companies.
PETERS CONSTRUCTIONS: Appoints Mary Kathleen Potts as Liquidator
----------------------------------------------------------------
At an extraordinary general meeting held on March 19, 2007, the
members of Peters Constructions Pty Ltd agreed to voluntarily
wind up the company's operations.
Mary Kathleen Potts of Adams Kenneally White Pty Ltd was
appointed as liquidator.
The Liquidator can be reached at:
Mary Kathleen Potts
Adams Kenneally White Pty Ltd
Johnston Street
Wagga Wagga, New South Wales 2650
Australia
About Peters Constructions
Peters Constructions Pty Ltd, which is also trading as Tumut
Building Supplies, is a constructor of single-family houses.
The company is located in New South Wales, Australia.
RILEY HOLDINGS: Shareholders Tap Chippindale as Liquidator
----------------------------------------------------------
On April 18, 2007, the shareholders of Riley Holdings Pty Ltd
had their meeting and agreed to liquidate the company's
business.
Rodney Bruce Chippindale was appointed as liquidator.
The Liquidator can be reached at:
Rodney Bruce Chippindale
W. T. Martin & Associates
17a Althorp Street
East Gosford, New South Wales 2250
Australia
Telephone:0243 241488
Facsimile:0243 241200
e-mail: enquiries@wtmartin.com.au
About Riley Holdings
Located in Western, Australia, Australia, Riley Holdings Pty Ltd
is an investor relation company.
STONE MILLER: Will Declare Priority Dividend on June 6
------------------------------------------------------
Stone Miller Pty Ltd, which is in liquidation, will declare a
priority dividend for its creditors on June 6, 2007.
Creditors who cannot prove their debts by May 22, 2007, are
excluded from sharing in the company's dividend distribution.
The company's liquidator is:
Nicholas Crouch
Crouch Insolvency
Chartered Accountants
Level 28, 31 Market Street
Sydney, New South Wales 2000
Australia
About Stone Miller
Located in New South Wales, Australia, Australia, Stone Miller
Pty Ltd is an investor relation company.
SYMBION HEALTH: Gets AU$2.78-Billion Bid from Rival Healthscope
---------------------------------------------------------------
Symbion Health Limited has received a AU$2.78-billion takeover
bid from a consortium led by Healthscope Ltd., reports Susan
Murdoch of The Wall Street Journal. The other members of the
consortium are Ironbridge Capital and Archer Capital.
The proposal provides for Healthscope to acquire all shares of
Symbion on issue by way of a scheme of arrangement in exchange
for cash and Healthscope shares with an indicative implied value
of AU$4.30 per Symbion Health share.
The companies have already begun discussions and are in talks
with the Australian Competition and Consumer Commision, Ms.
Murdoch relates.
If both companies reach an agreement, Healthscope will acquire
Symbion's pathology, medical center's and diagnostic imaging
businesses, with Ironbridge Capital and Archer Capital buying
Symbion's drug distribution and vitamin-making units, Nabila
Ahmed of The Sydney Morning Herald reports.
Major stockholders are hoping for a higher bid since analysts
share that Symbion can be sold for at AU$4.47 a share, Ms.
Nabila writes.
Yesterday, the Troubled Company Reporter-Asia Pacific reported
that Moody's Investors Service placed the Ba1 issuer rating of
Symbion Health on review for possible downgrade after the
company's announcement that it has received an ownership
proposal from the Healthscope-led consortium.
About Healthscope
Healthscope Limited -- http://www.healthscope.com.au-- is a
provider of healthcare services, through the ownership of
hospitals and the provision of diagnostic services (pathology).
The Company's operating segments include pathology, analytical,
hospitals and other. It operates in Australia, New Zealand and
South East Asia. On November 1, 2005, Healthscope Limited
acquired 14 hospitals from Ramsay Health Care Limited. The
Company's subsidiaries include Healthscope South Australia Pty
Ltd, Healthscope (Tasmania) Pty Ltd, Maybury Craft Pty Ltd,
Darwin Private Hospital Pty Ltd, AHC Radiology Pty Ltd,
Australian Hospital Care (Como) Pty Ltd and Australian Hospital
Care (Dorset) Pty Ltd. On November 1, 2006, it completed the
acquisition of Melbourne Private Hospital. In December 2006, the
Company acquired DoctorsLab Diagnostics Pte Ltd., a provider of
community-based pathology services in Singapore. On February 12,
2007, the Company completed the acquisition of Brisbane Private
Hospital and the associated medical centers.
About Symbion
Melbourne-based Symbion Health Limited --
http://www.symbionhealth.com/-- formerly Mayne Group Limited,
provides health products and services. The principal activities
of Symbion Health, during the fiscal year ended June 30, 2006,
consisted of diagnostic and wellness products and services
through its Pathology, Imaging, Medical Centers, Pharmacy
Services and Consumer divisions. Symbion Pathology owns and
operates private pathology practices, providing pathology
services to healthcare professionals and their patients. Symbion
Medical Centers provides local communities with healthcare and
family medicine. Symbion Imaging provides imaging services to
patients on the eastern seaboard of Australia. Symbion Pharmacy
Services supplies a line of pharmaceuticals and associated
products to pharmacies. Symbion Consumer manufactures and
markets nutraceuticals (vitamins and mineral supplements).
On Jan. 30, 2007, Moody's Investors Service placed the Ba1
issuer rating of Symbion Health Limited on review for possible
downgrade after the company's announcement that it has
received an ownership proposal from Primary Health Care Limited
(unrated).
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 12, 2005, Moody's affirmed the company's senior unsecured
rating of Ba1. At the same time, Moody's revised the rating
outlook to stable from negative. The company also carries
Moody's NP short-term rating.
================================
C H I N A & H O N G K O N G
================================
BOMBARDIER INC: Wins Shanghai's US$204 Million Train Order
----------------------------------------------------------
Bombardier Inc., through its rail car manufacturing unit
Bombardier Transportation, and its joint venture partners in
China, won an order worth US$204 million to supply mass-transit
trains in Shanghai, various reports say.
According to CCN Matthews, Shanghai Mass Transit Line 7
Development Co., a subsidiary of Shanghai Shentong Metro Group
Co., placed an order for 192 MOVIA metro cars. The order was
awarded to Bombardier Transportation together with Changchun
Bombardier Railway Vehicles Company Ltd. and Bombardier CPC
Propulsion System Co. Ltd. Bombardier's share of the contract
amounts to some US$70 million.
Deliveries are scheduled to begin in the second quarter of 2008
with completion in 2009.
About Bombardier
Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) --
http://www.bombardier.com/-- manufactures innovative
transportation solutions, from regional aircraft and business
jets to rail transportation equipment. The company has
operations in North America, Europe and China.
Bombardier in China
Including its joint ventures, Bombardier currently employs 2,500
people in China. In addition to its rail transportation
operations, Bombardier is also the number one supplier to the
Chinese regional aircraft market with an installed base of more
than 30 aircraft in operation with six airlines. It is the top-
ranked supplier of business aircraft to China as well.
Bombardier's longstanding business relationship with China began
50 years.
About Bombardier Transportation
Bombardier Transportation has its global headquarters in Berlin,
Germany with a presence in over 60 countries. It has an
installed base of over 100,000 vehicles worldwide. The Group
offers the broadest product portfolio and is recognized as the
leader in the global rail sector.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 6,
2006, that Fitch Ratings has downgraded the debt and Issuer
Default Ratings for both Bombardier Inc. and Bombardier Capital
Inc.:
Bombardier Inc.
-- IDR to 'BB-' from 'BB';
-- Senior unsecured debt to 'BB-' from 'BB';
-- Credit facilities to 'BB-' from 'BB';
-- Preferred stock to 'B' from 'B+'.
Bombardier Capital Inc.
-- IDR to 'BB-' from 'BB';
-- Senior unsecured debt to 'BB-' from 'BB'.
On Nov. 2, 2006, the TCR-AP reported that Moody's Investors
Service assigned its Ba2 rating to Bombardier Inc.'s proposed
EUR1.8 billion in new senior unsecured notes and affirms all
current ratings.
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on Montreal, Que.-based Bombardier Inc.
At the same time, Standard & Poor's assigned its 'BB' issue
rating to Bombardier's proposed issuance of up to EUR1.8 billion
seven-to-ten-year multitranche senior unsecured notes. The
notes are to be used to refinance EUR1.175 billion of debt
maturing on or before Feb. 22, 2008. The remainder will form
part of the collateral required for a new LOC issuance credit
facility to be arranged after the completion of the bond issue.
The outlook is negative.
CELION LIMITED: Liquidator to Present Wind-Up Report on May 28
--------------------------------------------------------------
A final general meeting for the members of Celion Limited will
be held on May 28, 2007, at 9:00 a.m.
During the meeting, the members will receive a report about the
company's wind-up proceedings and property disposal.
The meeting will be held in Rooms 603-4, 6th Floor, Hang Seng
Wanchai Building at 200 Hennessy Road in Wanchai, Hong Kong.
CITIC GROUP: Unit Offers US$950 Million for Kazakh Oil Stake
------------------------------------------------------------
CITIC Resources Holdings Ltd., a unit of China International
Trust and Investment Corp. (CITIC Group), has decided to
exercise its right to buy half of its parent's oil assets in
Kazakhstan worth US$950 million, various reports say.
In addition, the company will also purchase an oil block in
resource-rich Liaoning province, Reuters relates, citing a fund
manager familiar with the situation. No details, however, were
disclosed in this part of the deal, the news agency adds.
The Troubled Company Reporter - Asia Pacific on Jan. 4, 2007,
reported that CITIC Group has bought the Kazakhstan oil assets
of Canada's Nations Energy Company Ltd for US$1.91 billion.
Gita Dhungana of The Standard writes that the cornerstone of
these assets was the Karazhanbas oil and gas field, with proven
reserves of more than 340 million barrels and current daily
production exceeding 50,000 barrels.
If successful with the purchase, CITIC Resources could replace
CNPC (Hong Kong) Ltd as the fourth-largest listed Chinese oil
producer in terms of output following the deals, reports say.
About CITIC Reources
Incorporated in Bermuda in 1997, CITIC Resources has its shares
listed on the Hong Kong Stock Exchange.
The company positions itself as an integrated provider of key
commodities and strategic natural resources with particular
focus in oil business. The principal activities of the company
and its subsidiaries are in the fields of oil, aluminium, coal,
import and export of commodities, manganese and iron ore.
CITIC Group (formerly China International Trust and Investment
Corporation) became the majority controlling shareholder of the
Company in March 2004, indirectly holding interest in the
Company of over 54%.
About CITIC Group
State-owned conglomerate CITIC Group -- formerly China
International Trust & Investment Corporation -- oversees the
government's international investments, as well as some domestic
ones. Its approximately 45 subsidiaries on four different
continents include financial institutions -- more than 80% of
its assets -- industrial concerns (satellite telecommunications,
energy, manufacturing), and service companies (construction,
advertising). Holdings include stakes in CITIC Securities and
CITIC International Financial Holdings.
On Feb. 13, 2007, Standard & Poor's Ratings Services said that
it had removed the BB+ long-term and B short-term foreign
currency counterparty credit rating on CITIC Group from
CreditWatch.
The outlook on the ratings is developing. At the same time,
Standard & Poor's also removed the BB+ foreign currency issue
rating on the group's senior unsecured debt from CreditWatch.
EPICOR SOFTWARE: Plans to Offer US$200MM of Convertible Sr Notes
----------------------------------------------------------------
Epicor Software Corporation intends to offer, subject to market
conditions and other factors, US$200 million aggregate principal
amount of convertible senior notes due 2027 pursuant to an
effective registration statement filed with the Securities and
Exchange Commission.
As part of the offering, the company intends to grant the
underwriters a 30-day option to purchase up to an additional
US$30 million aggregate principal amount of the notes solely to
cover overallotments, if any. The notes will be unsecured. The
offering price, interest rate, conversion rate and circumstances
in which a holder may convert its notes and other terms will be
determined by negotiations between the company and the
underwriters.
Epicor intends to use the net proceeds from the offering to
repay in full the company's term loan outstanding under its
credit facility. The balance of the net proceeds, if any, will
be used for working capital, capital expenditures and other
general corporate purposes, which may include funding
acquisitions of businesses, technologies or product lines,
although Epicor currently has no commitments or agreements for
any such specific acquisition. Epicor may also use a portion of
the remaining net proceeds to repurchase outstanding shares of
its common stock following the completion of the offering.
Subject to the final terms of the offering and assuming the
repayment of its outstanding term loan, Epicor expects the
offering to be accretive to its fiscal 2007 earnings per diluted
share.
UBS Investment Bank and Lehman Brothers will act as joint book-
running managers for the offering. Cowen and Company, Needham &
Company, and Piper Jaffray are serving as co-managers for the
offering.
The issuer has filed a registration statement, including a
prospectus dated May 1, 2007 and a preliminary prospectus
supplement dated May 1, 2007 with the SEC for the offering and
will file with the SEC a final prospectus supplement for such
offering.
Copies of the prospectus and preliminary prospectus supplement
relating to the offering may also be obtained from:
-- UBS Securities LLC
Attention: Prospectus Department
299 Park Avenue,
New York, New York 10171
Tel: (212) 821 3000; or
-- Lehman Brothers
c/o Broadridge
1155 Long Island Avenue
Edgewood, NY 11717
Fax: (631) 254-7268
About Epicor Software Corporation
Headquartered in Irvine, California, Epicor Software Corporation
--- http://www.epicor.com/www/-- is a provider of enterprise
resource planning, customer relationship management, and supply
chain management software and solutions to mid-market companies
worldwide. Epicor Software has worldwide locations in China,
Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan,
Korea, Malaysia, Mexico, Singapore, Taiwan, and the United
Kingdom, among others.
The Troubled Company Reporter Asia Pacific reported on Oct. 10,
2006, that in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. Technology Software
sectors this week, the rating agency confirmed its B2 Corporate
Family Rating for Epicor Software Corporation.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
USUS$100 Million
Senior Secured
Revolving Credit
Facility due 2009 B1 Ba3 LGD2 27%
USUS$100 Million
Senior Secured
First Lien
due 2012 B1 Ba3 LGD2 27%
GRAND MARINE: Members and Creditors to Meet on May 28
-----------------------------------------------------
Grand Marine International Limited will hold a meeting for its
members and creditors on May 28, 2007, at 10:00 a.m. and
10:15 a.m., respectively.
During the meeting, Dermot Agnew, the appointed liquidator, will
present a report about the company's wind-up proceedings and
property disposal.
HARVEST FOCUS: Members' Final Meeting Set for May 28
----------------------------------------------------
The members of Harvest Focus Development Limited will have their
final meeting on May 28, 2007, at 10:00 a.m. to receive a report
about the company's wind-up proceedings and property disposal.
The company started to wind up its operations on Dec. 11, 2006,
according to the Troubled Company Reporter - Asia Pacific.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Gloucester Tower, The Landmark
15 Queen's Road, Central
Hong Kong
ROYAL CARIBBEAN: Earns US$8.8 Million in Quarter Ended March 31
---------------------------------------------------------------
Royal Caribbean Cruises Ltd. reported net income of US$8.8
million for the first quarter ended March 31, 2007, compared
with net income of US$119.5 million for the same period last
year.
The first quarter of 2006 includes a net gain of US$36 million
related to the partial settlement of a pending lawsuit against
Rolls Royce and Alstom Power Conversion, co-producers of the
Mermaid pod-propulsion system on Millennium-class ships, for the
recurring Mermaid pod failures. Under the terms of the partial
settlement, the company received US$38 million from Alstom and
released them from the suit, which remains pending against Rolls
Royce.
Total revenues increased by approximately 6.7% to US$1.22
billion from total revenues of US$1.15 billion for the same
period in 2006 primarily due to a 9.7% increase in capacity
partially offset by a 2.7% decrease in Gross Yields. Gross
Yields represent total revenues per Available Passenger Cruise
Days. The decrease in Gross Yields was primarily attributed to
a decrease in ticket prices on a per passenger basis partially
offset by the addition of Pullmantur S.A.'s tour business.
Net Cruise Costs per APCD increased 5.4% compared to the same
period in 2006 primarily as a result of the addition of
Pullmantur S.A.'s tour business and an increase in payroll and
related expenses.
Gross interest expense increased to US$90.6 million in 2007 from
US$64.7 million for the same period in 2006. The increase was
primarily attributable to higher average debt level and, to a
lesser extent, higher interest rates. Interest capitalized
during 2007 increased to US$10.1 million from US$7.1 million
during the same period in 2006 primarily due to a higher average
level of investment in ships under construction.
At March 31, 2007, the company's balance sheet showed US$13.69
billion in total assets, US$7.60 billion in total liabilities,
and US$6.09 billion in total stockholders' equity.
The company's balance sheet at March 31, 2007, also showed
strained liquidity with US$694.4 million in total current assets
available to pay US$2.34 billion in total current liabilities.
As of March 31, 2007, liquidity was US$1.2 billion, comprised of
US$200 million in cash and cash equivalents and US$1 billion in
available credit on the company's revolving credit agreement.
Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available
for free at http://researcharchives.com/t/s?1e4d
Acquisition of Pullmantur S.A.
On Nov. 14, 2006, the company completed the acquisition of
Pullmantur S.A., a Madrid-based cruise and tour operator. The
company purchased all of the capital stock of Pullmantur for
approximately US$558.9 million.
About Royal Caribbean
Based in Miami, Florida, Royal Caribbean Cruises Ltd. --
http://www.royalcaribbean.com/-- operates a cruise line with
more than 170 destinations worldwide including Australia, China,
Vietnam, and an array of shore excursions and cruise tour
options. The company's ships offer itineraries, activities and
amenities designed to appeal to every taste, energy level and
age group giving guests the opportunity to create their own
adventure.
In January 2007, Moody's Investors Service assigned Royal
Caribbean Ltd.'s new benchmark size Euro senior unsecured notes
Ba1, raised Royal Caribbean's Speculative Grade Liquidity rating
to SGL-2 from SGL-3 and affirmed all other existing ratings.
The company carries Moody's Ba1 Corporate Family Rating.
SALTON INC: Leonhard Dreimann Resigns as Chief Executive Officer
----------------------------------------------------------------
Salton Inc. disclosed that Leonhard Dreimann has resigned as
chief executive officer of the company. William M. Lutz will
become interim chief executive officer while retaining his
current title of chief financial officer of the company.
Mr. Dreimann will continue to serve as a director and will
advise the company for a transition period with respect to the
company's customers, suppliers and products, including new and
innovative product launches. Mr. Dreimann will also assist the
company as requested in connection with the merger agreement
between APN Holding Company Inc., the parent of Applica
Incorporated, and the company. The merger, which is subject to
certain conditions, will be completed in June or July 2007.
"I will be available to assist the company as it prepares and
plans for the pending merger with Applica," Leon Dreimann
commented. "I am excited about the prospects of the combined
company, and I am confident that Bill and the company's
management team will continue to position the company for a
promising future."
About Salton Inc.
Salton, Inc. -- http://www.salton.com-- is a leading designer,
marketer and distributor of branded, high quality small
appliances, electronics, home d,cor and personal care products.
Its product mix includes a broad range of small kitchen and home
appliances, electronics for the home, tabletop products, time
products, lighting products, picture frames and personal care
and wellness products. The company sells its products under a
portfolio of well recognized brand names such as Salton(R),
George Foreman(R), Westinghouse (TM), Toastmaster(R),
Melitta(R), Russell Hobbs(R), Farberware(R), Ingraham(R) and
Stiffel(R). It believes its strong market position results from
its well-known brand names, high quality and innovative
products, strong relationships with its customer base and its
focused outsourcing strategy. The company has an office in Hong
Kong.
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. rental company sector, the rating
agency confirmed its Caa1 Corporate Family Rating for Salton,
Inc., and raised its Ca rating on the company's US$150 million
senior subordinated notes to Caa3. Additionally, Moody's
assigned an LGD6 rating to those notes, suggesting noteholders
will experience a 91% loss in the event of a default.
* Taiwan Banks Faces Tough Year on Profitability, TRC Says
----------------------------------------------------------
Taiwan's banks face another tough year in their battle to
restore profitability as operating conditions tighten across the
sector, but government links appear to strengthen credit
profiles, Taiwan Ratings Corp says in articles titled "Is There
Light At The End Of The Tunnel For Taiwan Banks?" and
"Government Links: A Blessing Or A Curse For Taiwan Banks?",
that were released today by Taiwan Ratings Corp.
"At best, the profitability of Taiwan's banking sector will be
moderate in 2007," said credit analyst Susan Chu. The
industry's return on average assets nose-dived to about zero in
2006 from 0.3% in 2005, mainly because of spiraling card debts.
In 2007, banks are likely to face further challenges to restore
their profitability, due to declining interest spreads, excess
liquidity, and slow market consolidation.
"Only top-tier private banks with the ability to secure new
revenue or upgrade risk management procedures can expect to
outperform their rivals or at least achieve satisfactory results
in 2007," said Ms. Chu. Encouraging signs are emerging,
however, such as growth in wealth management services and
offshore banking opportunities. "The focus must turn to the
delivery of innovative, non-traditional products ahead of the
competition," said Ms. Chu.
Depositors tend to favor government-controlled banks at times of
tight liquidity or system stress. "The government is more
likely to provide financial support to GCBs of systemic
importance or with irreplaceable policy roles during times of
stress than to institutions without policy roles," said credit
analyst Eunice Fan. "But the profitability of many of the
largest GCBs is weaker than that of non-GCBs, owing to specific
policy obligations, general support of government initiatives,
high liquidity reserves, and low margins."
=========
I N D I A
=========
BAUSCH & LOMB: Declares Quarterly Dividend of US$0.13 Per Share
---------------------------------------------------------------
Bausch & Lomb declared a regular quarterly dividend of US$0.13
per share on the company's common stock.
The dividend is payable Monday, July 2, 2007, to shareholders of
record at the close of the business day on Friday, June 1, 2007.
In addition, Bausch & Lomb named Efrain Rivera as Senior Vice-
President and Chief Financial Officer, succeeding Stephen C.
McCluski who has announced his plan to retire on June 30, 2007.
Mr. McCluski will serve as senior vice president-corporate
strategy, responsible for strategic business development
activities, until his retirement.
"We're very fortunate to have an executive of Efrain Rivera's
caliber to succeed Steve in the CFO function," said Chairman and
CEO Ronald L. Zarrella. "Efrain has managed successively more
responsible positions in business analysis, investor relations,
commercial operations and treasury, and has demonstrated that he
has the experience, perspective and leadership skills to be an
exceptional CFO."
Mr. Rivera joined Bausch & Lomb in 1989 and has held management
and executive positions in Corporate Treasury, Business Analysis
and Investor Relations. He has served as general manager of
Bausch & Lomb Mexico, vice president-finance for Global Vision
Care, and president-Bausch & Lomb Canada and Latin America. He
was elected an officer of the company in 2002, and has been
corporate vice president and treasurer since 2004. Prior to
joining Bausch & Lomb he served as an attorney in the Civil
Division of the U.S. Department of Justice.
Mr. Rivera received a B.S. degree from Houghton College,
Houghton, New York, an MBA in Finance from the William E. Simon
Graduate School of Business at the University of Rochester, a
J.D. degree from New York University, and an Executive Doctorate
in Management from Case Western Reserve University, Cleveland,
Ohio. A member of Beta Gamma Sigma, the national honor society
in business, at both the Masters and Doctoral levels, Rivera is
a Certified Management Accountant(R), Certified Financial
Manager(R) and a member of the Institute of Management
Accountants.
"Steve McCluski has served Bausch & Lomb with great distinction
during his 19-year career here, 12 of those years as CFO," said
Mr. Zarrella. "The Board of Directors and I are grateful for
his contributions to the growth and success of our businesses.
While I will especially miss his wise counsel, over the past few
years he has developed an outstanding successor in Efrain
Rivera, and that will allow us to manage through this transition
smoothly and efficiently."
Mr. McCluski has been with Bausch & Lomb since 1988, when he
joined the company as director-financial planning and analysis
for the former Personal Products Division. He served as vice
president and controller for the former Eyewear Division,
president of the former Outlook Eyewear subsidiary and was named
corporate vice president and controller in 1994. He has served
as Chief Financial Officer since 1995.
Headquartered in Rochester, New York, Bausch & Lomb Inc.
(NYSE:BOL) -- http://www.bausch.com/-- develops, manufactures,
and markets eye health products, including contact lenses,
contact lens care solutions, and ophthalmic surgical and
pharmaceutical products. The company is organized into three
geographic segments: the Americas; Europe, Middle East, and
Africa; and Asia (including operations in India, Australia,
China, Hong Kong, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan and Thailand). In Latin America, the company
has operations in Brazil and Mexico
* * *
In February 2007, Moody's Investors Service downgraded Bausch &
Lomb Inc.'s senior unsecured debt to Ba1 and continues to review
all ratings for possible downgrade. Moody's also assigned the
company a Ba1 Corporate Family Rating.
CABLE & WIRELESS: Denies Newspaper Report on Sale of Units
----------------------------------------------------------
Bloomberg News reports that Cable & Wireless Plc said it has no
immediate plans to sell any units, disproving a report from a
newspaper that said the company "might split itself in two."
According to The Observer, Cable & Wireless might split itself
into British and international units and sell them to private
equity groups or rivals. A source said that Cable & Wireless
Chairperson Richard Lapthorne and managers John Pluthero and
Harris Jones favor a split of the international and UK
businesses. Cable & Wireless would have to be sold at least 228
pence per share, or the firm's senior managers would lose a 200-
million pound payment. Citigroup analyst Michael J. Williams
said that a possible break-up of Cable & Wireless would make
sense only after the UK business has improved and could function
independently. According to him, a split could be concluded in
two years.
Cable & Wireless said in a statement, "Any discussion of
spinning off our businesses is premature."
According to Bloomberg News, Cable & Wireless stated that it is
concentrated on building its UK and international units. The
company assured that the strategy is progressing well.
Cable & Wireless said in a statement, "We are in the early
stages in terms of both businesses and there is more work to
do."
Cable & Wireless is looking for opportunities in markets abroad
as growth in the UK for traditional voice services has slowed
down, Bloomberg News states.
Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, the Cayman Islands and the Middle East.
* * *
Cable & Wireless carry these ratings:
* Moody's Investors Service
-- Long-Term Corporate Family Rating: Ba3
-- Senior Unsecured Debt: B1
-- Short-Term: NP
-- Outlook: Negative
* Standard & Poor's
-- Long-Term Foreign Issuer Credit Rating: BB-
-- Long-Term Local Issuer Credit Rating: BB-
-- Short-Term Foreign Issuer Credit Rating: B
-- Short-Term Local Issuer Credit Rating: B
-- Outlook: Negative
STATE BANK OF INDIA: To Raise INR10,000 Crore in FY2007-08
----------------------------------------------------------
The State Bank of India plans to raise INR10,000 crore in the
financial year 2007-08 by issuing unsecured and rated Indian
rupee Innovative Perpetual Debt Instruments, Upper Tier II or
Lower Tier II Subordinated Debt, as the Reserve Bank of India
permits from time to time.
The debt will be issued several tranches with a minimum maturity
of 60 months through structured deals or by private placement or
book building process.
The Executive Committee of the Central Board of SBI has approved
the raising of funds, the bank informed the Bombay Stock
Exchange in a filing.
According to The Telegraph, the bank will use the funds to meet
the high demand for credit and comply with the Basel II norms on
capital adequacy from 2008-09.
Headquartered in Mumbai, State Bank of India --
http://www.sbi.co.in/-- is a financial services group operating
primarily in the banking industry. Its core operations include
Treasury Operations, Corporate Banking Group, National Banking
Group and International Banking Group.
* * *
Standard & Poor's Ratings Services on March 26, 2007, assigned
ratings to State Bank of India's proposed debt issues under its
US$5 billion medium-term note program. Standard & Poor's rated
SBI's proposed senior unsecured notes 'BBB-', its lower Tier II
subordinated notes 'BB+', and its upper Tier II subordinated
notes and hybrid Tier I notes 'BB'.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual
rating.
Moody's Investors Service placed a Ba2/Not Prime rating on State
Bank of India's foreign currency bank deposits, a Ba2/Not Prime
Financial Strength Rating in June 2006.
SYNDICATE BANK: Board to Meet on May 8 to Consider Financials
-------------------------------------------------------------
Syndicate Bank Ltd's board of directors will hold a meeting on
May 8, 2007, to consider and approve the bank's audited
financial results of for the year ended March 31, 2007.
The board will also recommend consideration of a final dividend
for the financial year 2006-07, if any.
Syndicate Bank Ltd -- http://syndicatebank.in/-- provides a
range of banking services. The bank's services include
deposits, loans, recoveries and electronic funds transfer. The
bank has also tied up with United India Insurance Company to
provide general insurance. As of March 31, 2006, the bank had
2006 branches. The bank has 38 specialized branches, which
focus on business segments, such as small and medium
enterprises.
Syndicate Bank carries Fitch Ratings' D individual rating since
June 1, 2005.
TATA MOTORS: Delhi Court Upholds DTC Order for 500 Buses
---------------------------------------------------------
The Delhi High Court has upheld the award by the Delhi Transport
Corporation of a tender to Tata Motors Ltd for supply of 500
low-floor buses.
As reported in the Troubled Company Reporter - Asia Pacific on
April 20, Tata Motors bagged an order from the DTC for 500 low-
floor buses. The company won the order by offering the lowest
bid in a global tender floated by DTC.
One of the participating companies in the tender contested the
DTC order by filing a writ petition. However, the Delhi Court
summarily dismissed the writ by upholding the DTC order.
Tata Motors Limited -- http://www.tatamotors.com/-- is mainly
engaged in the business of automobile products consisting of all
types of commercial and passenger vehicles, including financing
of the vehicles sold by the Company. The Company's operating
segments consists of Automotive and Others. In addition to its
automotive products, it offers construction equipment,
engineering solutions and software operations.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Standard & Poor's Ratings Services raised its
corporate credit ratings for Tata Motors to 'BB+' from 'BB'.
The outlook is stable. At the same time, Standard & Poor's has
raised its rating on Tata Motors' senior unsecured notes to
'BB+' from 'BB'.
Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.
TATA MOTORS: April Sales Up 11% to 40,486 Vehicles
--------------------------------------------------
Tata Motors Limited reported a total sale of 40,486 vehicles
(including exports) for the month of April 2007, a growth of 11%
over 36,574 vehicles sold in April last year. Vehicles sales in
the domestic market were impacted, in varying degrees between
the commercial and passenger vehicles segments, due to the high
interest rate regime affecting retails.
Commercial Vehicles
The company's sales of commercial vehicles in April 2007 in the
domestic market were 19,607 units, compared to 19,674 vehicles
sold in April last year. The sales of Medium and Heavy
Commercial Vehicle products, which besides market conditions
witnessed shortfalls in some critical components, stood at
10,392 units, a decline of 14% over April 2006. Light
Commercial Vehicle sales were 9,215 units, growing by 22% over
April 2006.
Passenger Vehicles
Tata Motors passenger vehicles business reported a total sale of
16,842 vehicles in the domestic market in April 2007, an
increase of 26% over April 2006. The Indica sold 10,870 units,
an increase of 28%. The Indigo family registered sales of 2,632
units, an increase of 2%. The Sumo and Safari accounted for
sales of 3,340 units, an increase of 49% over April last year.
Safari sales at 1,474 units grew by 269%.
Exports
The company's sales from exports were 4,037 vehicles in April
2007 as compared to 3,572 vehicles in April 2006, an increase of
13% driven mainly by commercial vehicles.
About Tata Motors
Tata Motors Limited -- http://www.tatamotors.com/-- is mainly
engaged in the business of automobile products consisting of all
types of commercial and passenger vehicles, including financing
of the vehicles sold by the Company. The Company's operating
segments consists of Automotive and Others. In addition to its
automotive products, it offers construction equipment,
engineering solutions and software operations.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Standard & Poor's Ratings Services raised its
corporate credit ratings for Tata Motors to 'BB+' from 'BB'.
The outlook is stable. At the same time, Standard & Poor's has
raised its rating on Tata Motors' senior unsecured notes to
'BB+' from 'BB'.
Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.
TATA POWER: Acquires Coastal Gujarat Power From Power Finance
-------------------------------------------------------------
Tata Power Company Ltd has acquired Coastal Gujarat Power Ltd
from Power Finance Corporation pursuant to a share purchase
agreement signed between the parties, the company disclosed in a
regulatory filing with the Bombay Stock Exchange. CGPL is a
Special Purpose Vehicle for the 4000 MW Mundra Ultra Mega Power
Project.
According to India's Power Ministry, Tata Power emerged as the
successful bidder through tariff-based competitive bidding
process by submitting the lowest tariff bid of INR2.26 per unit
(levelized tariff for 25 years with first year tariff at the
rate of INR1.91 per unit).
The Ministry of India has planned nine UMPPs. The Mundra UMPP
is the first to be transferred to the successful bidder. The
signing of the deal allows Tata Power to go ahead with the
various project development activities in the Mundra project.
Pursuant to the share purchase agreement, Tata Power has
provided Power Finance a performance bank guarantee of INR300
crore. No other financial details of the deal were disclosed.
"This acquisition is a significant milestone towards progress on
Mundra Ultra Mega Power Project," Tata Power Managing Director
Prasad Menon, says. "We continue to look forward to the support
of Ministry of Power and Government of Gujarat for all necessary
clearances required for the project."
According to the BSE filing, CGPL has signed Power Purchase
Agreements with seven procurers (distribution licensees) for the
sale of contracted capacity and supply of 4000 MW electricity to
these licensees but it delineates responsibility of procurers
and company for the next important milestone. It also nominates
Gujarat Distribution Company as the lead procurer on behalf of
all procurers.
Tata Power Company Ltd. -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area. The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area. The company also has a
plant that supplies power to Tata Steel. In addition, Tata
Power has an 81 MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.
* * *
Moody's Investors Service, on Jan. 30, 2007, placed its Ba1
corporate family rating and Ba2 senior unsecured debt rating for
Tata Power Company Ltd on review for possible downgrade.
The Troubled Company Reporter - Asia Pacific reported on
Nov. 10, 2005, that Standard & Poor's Ratings Services affirmed
its 'BB+' long-term foreign and local currency corporate credit
ratings for Tata Power. The outlook is stable.
TATA POWER: To Raise INR1,200 Cr. by Issue of Shares to Promoter
----------------------------------------------------------------
Tata Power Company Limited will raise up to INR1,200 crore by
issuing shares and warrants to promoter Tata Sons Ltd in the
next 18 months, the Business Standard reports.
In a filing with the Bombay Stock Exchange, Tata Power disclosed
that its board of directors approved the company's issuance to
Tata Sons of not more than 98,94,000 equity shares of INR10 each
(i.e. not exceeding 5% of the existing paid-up equity share
capital) in the financial year 2007-08.
The board also resolved to issue up to 1,03,89,000 warrants to
the promoter, pursuant to which it has the option to subscribe
one share of INR10 each per warrant. The option will be
exercisable after April 1, 2008, but not later than 18 months
from the date of issue of the warrant (i.e. not exceeding 5% of
the existing paid-up equity share capital of the company as
increased by the allotment of equity shares made on preferential
basis).
The share and warrant issuance is still subject to the consent
of the company's shareholders. The company intends to obtain
its members' consent by way of postal ballot.
According to the Business Standard, the share issuance will
increase Tata Sons' holding in the company from 32.28% to 35.44%
and further to 38.52% after the complete conversion of the
warrants.
Besides increasing the promoter's stake, Tata Power is doing the
preferential issue as an initial step to raise funds for the
Bumi acquisition (INR5,350 crore for 30% stake) and the UMPP
project at Mundra (4000MW), the news agency relates.
Tata Power Company Ltd. -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area. The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area. The company also has a
plant that supplies power to Tata Steel. In addition, Tata
Power has an 81 MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.
* * *
Moody's Investors Service, on Jan. 30, 2007, placed its Ba1
corporate family rating and Ba2 senior unsecured debt rating for
Tata Power Company Ltd on review for possible downgrade.
The Troubled Company Reporter - Asia Pacific reported on
Nov. 10, 2005, that Standard & Poor's Ratings Services affirmed
its 'BB+' long-term foreign and local currency corporate credit
ratings for Tata Power. The outlook is stable.
TATA POWER: To Borrow US$79 Mil. From ADB for Wind Power Project
----------------------------------------------------------------
The Asian Development Bank has agreed to finance Tata Power
Company Ltd's 100-MW Wind Power project, the company informed
the Bombay Stock Exchange in a regulatory filing.
ADB will provide an Indian rupee denominated loan of up to
INR3.52 billion, or about US$79.3 million, to Tata Power, to set
up and operate wind energy facilities at two locations in the
state of Maharashtra viz. The tenor of the loan will be up to
13 years and will have a fixed interest rate during the entire
term. The company has already commissioned 50 MW of the total
wind generation capacity.
Tata Power believes the project will help India's economic
growth and energy diversification in an environmentally
sustainable manner and will promote private sector participation
in the renewable energy sector in the country.
Tata Power Company Ltd. -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area. The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area. The company also has a
plant that supplies power to Tata Steel. In addition, Tata
Power has an 81 MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.
* * *
Moody's Investors Service, on Jan. 30, 2007, placed its Ba1
corporate family rating and Ba2 senior unsecured debt rating for
Tata Power Company Ltd on review for possible downgrade.
The Troubled Company Reporter - Asia Pacific reported on
Nov. 10, 2005, that Standard & Poor's Ratings Services affirmed
its 'BB+' long-term foreign and local currency corporate credit
ratings for Tata Power. The outlook is stable.
UCO BANK: Earns INR309 Million in Quarter Ended March 31, 2007
--------------------------------------------------------------
UCO Bank Limited reported a net profit of INR309.4 million in
the quarter ended March 31, 2007, a turnaround from the INR587.4
million net loss incurred in the same quarter last year.
Total income increased 22% from INR13.29 billion in the quarter
ended March 31, 2006, to INR16.16 billion in the latest quarter
under review. Expenditures also increased by 22% to INR13.03
billion in the March 2007 quarter, arriving at an operating
profit of INR3.13 billion.
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?1e73
For the year ended March 31, 2007, the company's net profit
jumped to INR3.16 billion from INR1.96 billion in the prior
year. Income for FY2006-07 totaled INR57.60 billion, a 20%
increase from the INR48.18 billion gained in FY2005-06.
A copy of the bank's financial results for the year ended
March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1e74
UCO Bank Limited -- http://www.ucobank.in/-- is a commercial
bank that also operates two international financial centers, in
Hong Kong and Singapore. It has approximately 2000 service
units spread all over India. It undertakes foreign exchange
business in more than 50 centers in India. The company also has
foreign exchange dealing operations at four centers. It caters
to the segments of economy, such as agriculture, industry, trade
and commerce, service sector and infrastructure sector.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual
rating to 'D' from 'D/E'. At the same time, Fitch affirms the
bank's support ratings at 4. All ratings are with a stable
outlook.
VNESHTORGBANK JSC: To Float 22.5% of Equity in Global Offering
--------------------------------------------------------------
JSC Vneshtorgbank will offer new shares equivalent to 22.5% of
its equity and raise over US$6 billion in fresh funds, RIA
Novosti reports citing a company source.
In March, VTB said it would place 1,700 billion new shares worth
RUR17 billion through an open subscription on the local and
foreign markets, RIA Novosti relates.
In a TCR-Europe report on April 17, VTB CEO Andrei Kostin said
the new securities, which totals 24.97% of the bank's charter
capital, would be offered through open subscription to
professional investors on the London Stock Exchange and both to
professional market participants and individuals in Russia.
The IPO is aimed at decreasing the Russian government's stake in
VTB from 99.9% to 75% plus one. Sberbank, another state-owned
bank, recently completed its IPO.
About Vneshtorgbank
Headquartered in Moscow, Russia, JSC Vneshtorgbank and its
subsidiaries are a leading Russian commercial banking group,
offering a wide range of banking services and conducting
operations in both Russian and international markets.
As of Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions. The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.
* * *
Following the upgrade of the Russian sovereign foreign and local
currency IDRs to BBB+ from BBB, Fitch Ratings affirmed
Vneshtorgbank's Individual rating at C/D and Support at 2.
VNESHTORGBANK JSC: Prices Share Offering at Up to 11.30 Kopecks
---------------------------------------------------------------
JSC Vneshtorgbank disclosed the indicative price range for its
planned Global Offering of ordinary shares and Global Depositary
Receipts.
The indicative price range has been set at 11.30 kopecks to
13.90 kopecks per Share, which equates to US$8.77 to US$10.79
per GDR, based on the official exchange rate quoted by the CBR
of 25.7760 rubles per US dollar on April 25, and with each GDR
representing 2,000 Shares.
Based on the exchange rate, the price range reflects an implied
market capitalization for VTB of approximately US$22.84 billion
to US$28.10 billion, prior to taking into account the proceeds
of the Global Offering.
The Global Offering comprises an offer of Shares to
international institutional investors inside and outside of the
Russian Federation and an offer of GDRs to international
institutional investors outside of the Russian Federation. The
Shares are also being offered to retail investors in the Russian
Federation, the retail subscription period having commenced on
April 9.
VTB intends to list the GDRs on the London Stock Exchange. The
Shares have been admitted to trading on the "V" lists of the
Moscow Interbank Currency Exchange (MICEX) and the Russian
Trading System (RTS) under the ticker VTBR.
The Global Offering is comprised solely of newly issued Shares.
VTB is currently 99.9% owned by the Russian Government, whose
shareholding will be no less than 75% plus one share following
the Global Offering. VTB will receive all of the net proceeds
of the Global Offering, which it intends to use primarily to
support the ongoing expansion of its business including the
expansion of its Russian retail banking operations.
Citi, Deutsche Bank and Goldman Sachs International are
appointed Joint Global Coordinators for the Global Offering and,
together with Renaissance Capital, are appointed Joint
Bookrunners.
"I am very encouraged by the extent of interest already being
shown in Russia at this stage in the process and it is clear
that there is already a high regard for VTB in the international
investment community as a Russian banking leader," Andrei
Kostin, Chairman and CEO of the Management Board of VTB, said.
"I am now looking forward to underlining the unique strengths of
our business and our focus on rapid and profitable growth in the
coming weeks."
About Vneshtorgbank
Headquartered in Moscow, Russia, JSC Vneshtorgbank and its
subsidiaries are a leading Russian commercial banking group,
offering a wide range of banking services and conducting
operations in both Russian and international markets.
As of Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions. The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.
* * *
Following the upgrade of the Russian sovereign foreign and local
currency IDRs to BBB+ from BBB, Fitch Ratings affirmed
Vneshtorgbank's Individual rating at C/D and Support at 2.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Partners With Hughes Network for ICO Project
------------------------------------------------------------
Alcatel-Lucent, together with Hughes Network Systems, has been
selected by ICO Global Communications (Holdings) Limited will
develop key architecture and technology for use in ICO's alpha
trial of Mobile Interactive Media (MIM) services, set for spring
of 2008.
ICO MIM is a converged mobile media service, which addresses a
wide variety of consumers' entertainment, and communication
needs, all based upon ICO's next-generation geostationary
satellite and the deployment of an Ancillary Terrestrial
Component.
ICO MIM will provide multiple channels of high-quality mobile
video to large-screen user devices. Alcatel-Lucent has been
chosen to supply the system architecture and design based on the
mobile multimedia DVB-SH open standard. Alcatel-Lucent and ICO
are in final negotiations for Alcatel-Lucent to be the end-to-
end network integrator for both the satellite and terrestrial
networks and to provide corresponding installation and network
integration services.
ICO MIM also will provide full-duplex, IP data communication
services between customer devices and ICO satellite base station
equipment using Hughes' proven ETSI standard GMR air interface
technology, with a focus on Internet access, VoIP, and other
data applications. In addition, Hughes will develop an
integrated satellite terminal and antenna system to incorporate
GMR and DVB-SH technologies, as well as a GPS receiver.
Tim Bryan, ICO's CEO commented, "ICO MIM lies at the
intersection of three highly prized consumer services:
interactive location-based services, using GPS with GMR for
navigation plus live traffic, weather and social networks;
emergency calling and messaging, for times and places when the
traditional terrestrial networks are unavailable; and mobile
video, on larger screens and with better quality than currently
available. We plan an alpha trial on ICO MIM for the spring of
2008, including the deployment of a terrestrial network in two
cities, to demonstrate the attractiveness of ICO's assets being
deployed for these services."
"We are pleased to see that our joint developments with chipset
and terminal partners on the DVB-SH technology can be deployed
in the U.S. market," stated Olivier Coste, President of Alcatel-
Lucent's Mobile Broadcast activities. "We consider hybrid
satellite/terrestrial networks very powerful solutions to
provide mobile broadcast services to consumers. Moreover, by
leveraging the large ecosystem of the DVB-H open standard
family, we believe that DVB-SH will enable a broadband range of
mass market multimedia applications."
Matthew Mohebbi, vice president and general manager of the
Mobile Satellite business unit at Hughes added, "GMR is a
proven, high-performance open air interface, optimized to
operate over satellite. We are proud to have been selected to
deliver GMR base stations for the ICO alpha trial, as well as
terminals that combine DVB-SH and GMR technologies that can
offer consumers mobile integrated communications and
entertainment."
About ICO
ICO Global Communications (Holdings) Limited --
http://www.ico.com/-- is a next-generation satellite
communications company based in Reston, Virginia. ICO is
developing an advanced hybrid system, combining both satellite
and terrestrial communications capabilities, in order to offer
wireless voice, data, video, and Internet services on mobile and
portable devices.
About Hughes Network Systems
Hughes Network Systems LLC -- http://www.hughes.com/-- is the
global leader in providing broadband satellite networks and
services for enterprises, governments, small businesses, and
consumers. HughesNet encompasses all broadband solutions and
managed services from Hughes, bridging the best of satellite and
terrestrial technologies. To date, Hughes has shipped more than
1.2 million systems to customers in over 100 countries. Its
broadband satellite products are based on the IPoS global
standard, approved by the TIA, ETSI, and ITU standards
organizations.
Headquartered outside Washington, D.C., in Germantown, Maryland,
USA, Hughes maintains sales and support offices worldwide.
Hughes is a wholly owned subsidiary of Hughes Communications,
Inc.
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: Inks Deal with Vanguard for AccuSPEECHTM Technology
--------------------------------------------------------------
Avnet Technology Solutions, Americas, a distributor of
enterprise computing products, software and services and an
operating group of Avnet, Inc., reported a new relationship with
Vangard Voice Systems, Inc. Avnet's Enterprise Mobility team
will work with its partner community of value-added resellers or
VARs and independent software vendors or ISVs to help integrate
Vangard's AccuSPEECHTM technology into a variety of mobile
business and eForms enterprise applications.
"Avnet and Vangard are joining forces to help channel partners
incorporate hands free, eyes free voice input capability into
enterprise mobility solutions," said Michael Douglass, vice
president, Enterprise Mobility, Avnet Technology Solutions,
Americas. "By embedding voice technology into mobile products,
our partners can create solutions that make life easier for end
technology users, while clearly differentiating themselves in
the market with these capabilities. Data entry with voice
technology becomes effortless, and significantly more accurate,
when users can talk to their systems rather than manipulating
input devices, especially among users that need to input data
while also performing manual tasks."
Vangard's AccuSPEECH solution provides the critical development
layer of connectivity between any major voice recognition engine
and any mobile business application. Avnet and Vangard's
embedded systems engineers and sales resources will help
partners develop cost-effective, reliable and scalable voice-
enabled solutions using AccuSPEECH. These solutions are
particularly beneficial for partners supporting desk-free
computing in government/public sector, healthcare and logistics
enterprise environments due to their need for highly accurate
and efficient data entry.
"Vangard Voice and Avnet are fulfilling the promise of voice
technology in the workplace," said Bob Bova, president and CEO
of Vangard Voice Systems, Inc. "Avnet's engineering,
integration and logistics support will enable our channel
partners to deliver world-class support for voice-enabled mobile
technology products."
To ease the design and deployment of complete enterprise
mobility solutions, Avnet is creating bundled solutions that
include hardware, software and services along with Vangard's
technology. The graphic user interface provided with AccuSPEECH
Technology further reduces development and deployment time by
eliminating the need to generate thousands of lines of custom
code typically associated with developing voice applications.
AccuSPEECH can be deployed on any platform that supports Windows
Mobile, Microsoft's .NET Framework, Win32, HTML, Java and
C++/C#/VB.NET. AccuSPEECH has native language support for 20
languages including English, Spanish, French, German,
Portuguese, Swedish, Polish and Dutch.
Avnet's Enterprise Mobility team provides a suite of services
focused on demand generation, logistics, cellular activation and
advanced integration to help solution providers, systems
integrators and VAR partners succeed in the fast-growing
enterprise mobility market. The Avnet Enterprise Mobility team
helps partners design, develop and implement complete, custom
mobility solutions leveraging industry-leading technology from
suppliers such as Motorola, Intermec, HandHeld Products, and
Printronix.
About Vangard Voice Systems, Inc.
Vangard Voice Systems, Inc. -- www.vangardvoice.com -- is the
provider of AccuSPEECH SDK, the only professional grade,
platform independent, integrated solution that easily integrates
speech into any business or mobile enterprise application.
Vangard Voice is headquartered in Rancho Santa Margarita,
California.
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.
* * *
The Troubled Company Reporter on March 6, 2007, reported that
Moody's Investors Service affirmed the Ba1 corporate family and
long-term debt ratings of Avnet, Inc. and revised the outlook to
positive from stable.
GOODYEAR TIRE: Selects Tandy for Auto Accessories Manufacturing
---------------------------------------------------------------
Goodyear Tire & Rubber Company has selected Tandy Brands
Accessories, Inc. to market selected gifts and auto accessories.
The products will be available for marketing beginning Spring
2008.
Tandy Brands will market the Goodyear gift line to auto parts
retail outlets, tire dealers, and mass market auto departments.
This will open up a whole new distribution channel for Tandy
Brands.
"We are pleased to be exploring new product opportunities with a
great company like Goodyear and look forward to offering our
product to the consumer with one of the best known and respected
names in the auto world. We believe the Goodyear name will add
instant credibility to our product," said Britt Jenkins,
President and Chief Executive Officer of Tandy Brands.
About Tandy Brands Accessories, Inc.
Tandy Brands Accessories, Inc. designs, manufactures and markets
fashion accessories for men, women and children. Key product
categories include belts, wallets, handbags, suspenders,
neckwear, gifts and sporting goods. Merchandise is sold under
various national brand names as well as private labels to all
major levels of retail distribution, including the ROLFS e-
commerce web site at http://www.rolfs.net/
About The Goodyear Tire & Rubber Company
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide.
* * *
The Troubled Company Reporter - Asia Pacific reported on
April 10, 2007, that Fitch Ratings affirmed these ratings of The
Goodyear Tire & Rubber Company:
-- Issuer Default Rating at 'B';
-- US$1.5 billion first-lien credit facility at 'BB/RR1';
-- US$1.2 billion second-lien term loan at 'BB/RR1';
-- US$300 million third-lien term loan at 'B/RR4';
-- US$650 million third-lien senior secured notes at 'B/RR4';
and
-- Senior unsecured debt at 'CCC+/RR6'.
Standard & Poor's Ratings Services assigned various ratings to
Goodyear Tire & Rubber Co.'s proposed bank financings. At the
same time, S&P assigned a recovery rating to the existing US$650
million senior secured notes. S&P said it will withdraw the
ratings on the existing bank facilities that are being
refinanced upon closing of the new facilities.
The corporate credit rating on Goodyear is B+/Positive/B-2. The
ratings on the Akron, Ohio-based company reflect its aggressive
financial risk profile, characterized by low earnings in North
America, a leveraged capital structure, and significant, albeit
declining, underfunded employee benefit liabilities. These
factors more than offset the company's business strengths,
including its position as one of the three largest global tires
manufacturers, its good geographic diversity, its strong
distribution, and its well-recognized brand name.
S&P also assigned these ratings to Goodyear Tire & Rubber Co.:
US$1.5 billion asset-backed rev. credit facility at BB with
Recovery rating of 1; and US$1.2 billion second-lien term loan
at B+ with Recovery rating of 2.
The TCR-AP reported on March 30, 2007, that Moody's Investors
Service affirmed Goodyear Tire & Rubber Company's Corporate
Family Rating of B1 but raised the outlook to positive.
INDOSAT: Russian Altimo Rumored to Buy 42% Stake
------------------------------------------------
The Russian business group, Altimo - Alfa Group, is rumored to
be ready to buy 42% of PT Indonesian Satellite's shares that
owned by ST Telemedia, Tempo Interactive reports.
According to the report, the sale was discovered through an
institutional study conducted by the Coordinator of the Business
Technology and Information Analysis Institute. Tempo
Interactive noted that the study showed that Alfino provided
US$2 billion of funds for the transaction.
Indosat's spokesperson, Adita Irawati, told Tempo Interactive
that she does not know about the purchase plan: "So far we only
know about the issue from the media."
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company provides international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional coIDRorate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service affirmed the Ba1 local
currency coIDRorate family rating of PT Indosat Tbk, and the Ba3
foreign currency senior unsecured bond rating of Indosat
FinanceCompany B.V. and Indosat International Finance Company
B.V. The bonds are irrevocably and unconditionally guaranteed
by Indosat.
The outlook for the ratings remains positive.
A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'. The outlook on the ratings is
stable.
NORTEL NETWORKS: Reports Expected Results for First Quarter 2007
----------------------------------------------------------------
Nortel Networks Corporation disclosed certain expected results
for the first quarter of 2007. Revenues are expected to be
approximately US$2.48 billion for the first quarter of 2007, up
4 % year over year. Excluding the impact of the company's UMTS
Access divestiture, revenues increased by 12 % compared to the
year ago quarter. Gross margin is expected to be slightly
higher than 40 % of revenue and operating margin is expected to
be slightly negative, 640 basis points better year over year.
Cash balance at the end the first quarter of 2007 was US$4.55
billion. The increase in cash from the year-end 2006 balance of
US$3.49 billion was primarily a result of the net proceeds from
the US$1.15 billion Senior Notes offering in March 2007.
For the full year 2007, the Company continues to expect revenues
to be flat to down slightly compared to 2006, reflecting a
decrease in revenues as a result of the UMTS Access disposition.
The Company also continues to expect full year 2007 gross margin
to be in the low 40's, as a %age of revenues, and operating
margin to be at 5%, or higher, of revenue.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.
Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.
* * *
In March 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering. Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par. Moody's said the outlook remains stable.
Standard & Poor's Ratings Services also assigned its 'B-' debt
rating to Canada-based Nortel Networks Corp.'s proposed US$1
billion senior unsecured convertible notes, which will consist
of two tranches of US$500 million, maturing in 2012 and 2014,
respectively.
Proceeds from the convertible notes will be used to partially
refinance NNC's US$1.8 billion senior unsecured convertible
notes due Sept. 1, 2008, and therefore the overall debt level is
not expected to change.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on 100%-owned Canada-based
subsidiary, Nortel Networks Ltd. At the same time, the ratings
on the US$200 million notes of NNL and the US$150 million notes
of Nortel Networks Capital Corp. were lowered to 'CCC' from
'B-'. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks
Inc., are collectively referred to as Nortel.
S&P said the outlook on NNL is stable.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS says all trends are stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
About Nortel Network
NORTEL NETWORK: Appoints David Drinkwater as Temporary CFO
----------------------------------------------------------
Nortel Networks Corporation appointed David Drinkwater as Chief
Financial Officer on an interim basis, effective May 1, 2007.
As disclosed earlier, Peter Currie stepped down from this
position effective April 30, 2007, and he will continue to
provide advice and assistance to the Company to ensure a smooth
transition. Mr. Drinkwater has served as the Company's Chief
Legal Officer since December 2005, and has held senior positions
with other world-class businesses, including as chief financial
officer of Ontario Power Generation.
Gordon Davies, who has held a number of positions in the
Company's legal organization, including most recently as General
Counsel - Corporate and Corporate Secretary, will assume the
role of Chief Legal Officer on an interim basis, effective
May 1, 2007.
Mr. Drinkwater has also been appointed interim Chief Financial
Officer and Davies, interim Chief Legal Officer, of Nortel
Networks Limited, the Company's principal operating subsidiary.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.
Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.
* * *
In March 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering. Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par. Moody's said the outlook remains stable.
Standard & Poor's Ratings Services also assigned its 'B-' debt
rating to Canada-based Nortel Networks Corp.'s proposed US$1
billion senior unsecured convertible notes, which will consist
of two tranches of US$500 million, maturing in 2012 and 2014,
respectively.
Proceeds from the convertible notes will be used to partially
refinance NNC's US$1.8 billion senior unsecured convertible
notes due Sept. 1, 2008, and therefore the overall debt level is
not expected to change.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on 100%-owned Canada-based
subsidiary, Nortel Networks Ltd. At the same time, the ratings
on the US$200 million notes of NNL and the US$150 million notes
of Nortel Networks Capital Corp. were lowered to 'CCC' from
'B-'. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks
Inc., are collectively referred to as Nortel.
S&P said the outlook on NNL is stable.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS says all trends are stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
=========
J A P A N
=========
FUJI HEAVY: Operating Profit Declines 18% in FY2007
---------------------------------------------------
Fuji Heavy Industries Ltd., released its financial results early
last week for the year ending March 31, 2007, which revealed a
17.9% downslide of the company's consolidated profit to
JPY47.9 billion from the previous year's JPY58.3 billion.
Fuji Heavy, makers of Subaru, reports that its consolidated
overseas net sales rose 5.3% to JPY918.6 trillion from last
year's JPY872.2 trillion while its domestic earnings decreased
4.6% to JPY576.2 trillion.
Ordinary income also slid to 9.7% from JPY46.8 billion to
JPY42.2 billion.
Despite the decline in the carmaker's operating profit and
ordinary profit, it's total net income surged to 104% to
JPY31.9 billion in FY2007.
In a report by Naoko Fujimura of Bloomberg, Fuji Heavy predicts
its operating profit to decline 27% to JPY35 billion this fiscal
year because of higher costs to promote its redesigned Impreza
small car, to be released later this year.
About Fuji Heavy
Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. --
http://ir.fhi.co.jp/english/-- is a manufacturing company
engaged in the production, sale, repair and leasing of
automobile and transportation-related products.
Standard & Poor's Ratings Services lowered its long-term credit
rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based
on diminished prospects for a recovery in profitability and cash
flow over the near term along with intensifying competition in
the global auto industry.
MITSUBISHI MATERIALS: JV to Invest US$1 Billion for Expansion
-------------------------------------------------------------
Hemlock Semiconductor Corp., a joint venture of Dow Corning
Corp. and Japan-based firms Shin Etsu Handotai Co. Ltd. and
Mitsubishi Materials Corp., said it plans to invest up to US$1
billion in the next four years to expand its facility in
Michigan, Ann Steffora Mutschler of Electronic News reports.
According to the report, the expansion is expected to increase
the company's total annual output of polycrystalline silicon to
36,000 metric tons, an increase of 90% of the company's current
output; and generate up to 250 full-time jobs and an equal
number of contracted positions upon completion. Ms. Mutschler
adds that nearly 800 temporary local construction contractors
will be needed while the expansion is constructed.
Ms. Mutschler relates that the expansion is expected to start
coming online in 2010.
About Mitsubishi Materials
Headquartered in Tokyo, Mitsubishi Materials Corp. --
http://www.mmc.co.jp/english/-- was formed on Dec. 21, 1990,
from the merger of two firms, Mitsubishi Metal Mining Company
Limited and Mitsubishi Cement Limited. The company manufactures
metals and ceramics products.
The company has international offices in the United States,
Canada, Brazil, Chile, France, Italy, Indonesia and the rest of
Asia.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 19, 2007, that Standard & Poor's Ratings Services revised
to positive from stable the outlook on its 'BB' long-term
corporate credit rating on Mitsubishi Materials Corp. based on
the company's increasing level and stability of cash flows, and
expectations for further improvement in the company's financial
profile.
MITSUBISHI UFJ TRUST: Offers Cross-Border Estate Admin. Services
----------------------------------------------------------------
Mitsubishi UFJ Trust and Banking Corporation and Northern Trust
have entered into an agreement to provide Japanese families who
have assets in the U.S. with estate administration services for
their heirs and beneficiaries, eliminating the need for families
to retain separate American advisors. The agreement is believed
to be the first of its kind to provide cross-border estate
administration services for Japanese citizens.
"With increasing globalization, the number of Japanese citizens
who have assets outside of Japan is growing and with it the need
for managing complex estate and inheritance laws covering this
property," said Haruya Uehara, President MUTB. "For U.S. assets
held by our clients, we've selected Northern Trust for its
incomparable trust expertise to oversee all aspects of American
inheritance procedures which are completely foreign to the
Japanese. Northern Trust will act as a major point of contact
for our Japanese clients, helping them navigate the U.S. legal
and tax systems during a particularly stressful time."
Under the agreement, Northern Trust will provide estate
administration and settlement services to MUTB's Japanese
clients with U.S. assets.
"We are privileged to be working with MUTB in this new capacity
as we introduce a unique service to their Japanese clients,"
said Rick Waddell, President and COO, Northern Trust. "We have a
close and growing relationship with this organization and look
forward to cooperating on future endeavors. Cross-border estate
administration also provides our wealth management business with
new inroads into the global market."
Estate administration represents a range of services provided by
an executor to help manage and liquidate assets in an estate and
then transfer them to the proper heirs and beneficiaries. Assets
may include a range of property such as residential and
commercial real estate to assets such as securities, cash,
artwork, and other collections. Executors perform a number of
duties including preparing and filing tax returns for the
estate, as well as managing and assessing the value of
properties for the benefit of heirs and beneficiaries.
About Northern Trust
Northern Trust Corporation -- http://www.northerntrust.com/--
is a leading provider of investment management, asset and fund
administration, fiduciary and banking solutions for
corporations, institutions and affluent individuals worldwide.
Northern Trust, a multi-bank holding company based in Chicago,
has a growing network of 84 offices in 18 U.S. states and has
international offices in 13 locations in North America, Europe
and the Asia-Pacific region. As of March 31, 2007, Northern
Trust had assets under custody of US$3.8 trillion, and assets
under investment management of US$756 billion. Northern Trust,
founded in 1889, has earned distinction as an industry leader in
combining high-touch service and expertise with innovative
products and technology.
About Mitsubishi UFJ Trust and Banking Corp
Mitsubishi UFJ Trust and Banking Corporation --
http://www.tr.mufg.jp-- is the core member and a wholly owned
subsidiary of Mitsubishi UFJ Financial Group,
Inc., which is a global financial institution basted in Tokyo,
providing commercial banking, trust banking, credit card and
personal finance operations. MUTB, Japan's largest trust bank,
has a network of 77 branches, 15 local offices in Japan and 5
branches, 2 local offices in North America, Europe and Asia. As
of September 2006, MUTB had trust assets of around US$860
billion and the Wills entrusted to MUTB reached around 18,000,
of which amount reached over US$41 billion.
Fitch Ratings upgraded Mitsubishi UFJ Trust and Banking's
individual rating to C from C/D on Jan. 1, 2006.
NIKKO CORDIAL: Citigroup Gets JPY1.45 Tril. Loan to Buy Shares
--------------------------------------------------------------
Citigroup Inc. borrowed JPY1.45 trillion or US$12 billion in
Japan's largest syndicated loan to fund its purchase of Nikko
Cordial Corp., according to Junko Fujita of Bloomberg News,
citing two bankers who were involved in the transaction.
As previously reported by the Troubled Company Reporter - Asia
Pacific, Citigroup completed its tender offer late last month to
become the majority shareholder of Nikko Cordial Corporation.
About 541 million shares tendered and accepted. Following the
settlement of the tender offer for approximately US$7.7 billion
in cash on May 9, 2007, Citi will own a total ownership stake in
excess of 60%. Citigroup Japan Investments LLC now has a 61.08%
equity stake in the company by virtue of the 588,698,520 shares
held and will become the parent company and largest shareholder
of Nikko Cordial as of May 9, 2007.
Mr. Fujita relates that his sources disclosed that Mizuho
Financial Group Inc. agreed to lend JPY220 billion, Mitsubishi
UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group
Inc. will each provide JPY200 billion, while Deutsche Bank AG,
JPMorgan Chase & Co., Aozora Bank Ltd., Shinsei Bank Ltd. and 12
other banks will lend the remaining amount.
"The loan gives New York-based Citigroup ample funds to raise
its stake to 67 percent, the level needed to make acquisitions
or sell units without the consent of minority shareholders.
Control of Nikko gives the world's biggest financial-services
firm by market value 109 branches in the world's second-largest
economy, narrowing a gap with Mitsubishi UFJ, Japan's biggest
bank," Mr. Fujita wrote.
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 Troubled Company Reporter - Asia Pacific 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.
The TCR-AP on April 30, 2007, reported that Fitch Ratings
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'
=========
K O R E A
=========
FRESH DEL MONTE: Earns US$51.6 Million in First Quarter 2007
------------------------------------------------------------
Fresh Del Monte Produce Inc. reported strong financial results
for the quarter ended March 30, 2007.
Net sales for the first quarter of 2007 were US$836.0 million,
compared with US$840.0 million for the same period last year.
The decrease in net sales was primarily due to the company's
aggressive efforts to improve the performance of its "Other
Fresh Produce" business segment in North America, mainly through
the rationalization of its tomato and potato product lines.
In the first quarter of 2007, Fresh Del Monte reported earnings
per diluted share of US$0.84, adjusted for the gain of US$0.05
per diluted share related to the previously announced closing of
the company's Hawaii pineapple operations, compared with
earnings of US$0.28 per diluted share for the same period last
year.
Gross profit for the first quarter of 2007 was US$99.1 million,
compared with adjusted gross profit of US$68.0 million for the
same period last year. The 46 percent increase in gross profit
for the quarter was the result of the solid progress Fresh Del
Monte has made in implementing stringent cost-savings
initiatives, simplifying its product mix and improving pricing
across many product lines to offset the negative impact of
higher product and procurement costs. These efforts had the
greatest positive impact in the company's "Other Fresh Produce"
and "Banana" business segments.
Net income for the first quarter of 2007 was US$51.6 million,
including the US$2.9 million gain from the exit activities
associated with the company's Hawaii pineapple operations,
compared with adjusted net income of US$16.5 million for the
same period last year. The increase in net income was
principally due to overall improved performance in the company's
global operations, a direct result of the strategic actions
taken in 2006 to enhance long-term performance.
"The first quarter of 2007 was the best quarter we have had in
two years," said Mohammad Abu-Ghazaleh, Fresh Del Monte's
Chairman and Chief Executive Officer. "Given the tough industry
environment we have faced over the last 24 months, I am very
encouraged with our financial results and operating performance.
I am gratified that we are now seeing the positive results from
the difficult decisions we have made over this challenging
period. Our global team has pulled together, trimmed costs,
rationalized our operations and sharply focused our resources on
making our business stronger. These efforts have not been easy,
but we are closer today to fulfilling our goal of becoming the
world's leading supplier of healthful, wholesome and nutritious
fresh and prepared food and beverages for consumers of all ages.
I truly believe that we are seeing the beginning of a turnaround
for our business and our industry, and I am optimistic that
Fresh Del Monte is well positioned for long-term growth."
About Fresh Del Monte
Based in the Cayman Islands, Fresh Del Monte Produce Inc.
-- http://www.freshdelmonte.com/-- is one of the world's
leading vertically integrated producers, marketers and
distributors of high-quality fresh and fresh-cut fruit and
vegetables, as well as a leading producer and distributor of
prepared fruit and vegetables, juices, beverages, snacks and
desserts in Europe, the Middle East and Africa. Fresh Del Monte
markets its products worldwide under the Del Monte(R) brand, a
symbol of product quality, freshness and reliability since 1892.
Del Monte Fresh Produce Company has operations in Chile, Brazil,
France and Korea.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2007, that Standard & Poor's Ratings Services lowered
its ratings on Cayman Islands-based Fresh Del Monte Produce Inc.
The corporate credit rating was lowered to 'BB-' from 'BB'.
LG TELECOM: 1Q Profit Falls 37% Due to Higher Marketing Costs
-------------------------------------------------------------
LG Telecom Co.'s first quarter net profit fell 37% to KPW66.2
billion from KPW105.4 billion won a year earlier due to higher
marketing costs, The Wall Street Journal reports.
According to the report, the company's first quarter marketing
cost jumped 31% to KPW230.3 billion from KPW176.2 billion a year
earlier, and rose 32% from KPW174.4 billion won the previous
quarter.
Sales climbed 15% to KPW1.09 trillion from KPW942.9 billion won,
while operating profit fell 35% to KPW69.1 billion from KPW106.3
billion, the report adds.
About LG Telecom
Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd.
-- http://www.lgtelecom.com/-- is a telecommunications and
mobile phone operator controlled by the LG Group, one of the
country's largest chaebol. It is Korea's smallest wireless
operator. LG Telecom became one of the first companies to launch
a commercial 3G service using PCS technology. In 1997, this was
followed up by launching the second PCS network, offering
greatly increased data transmission speeds. LG Telecom also
offers a variety of internet services. BankOn is one of the most
popular mobile banking services in South Korea and Musicon is a
popular instant messenger.
Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long-
Term Foreign Issuer Credit and Long-Term Local Issuer Credit
Ratings.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 14, 2006, Fitch Ratings upgraded LG Telecom's foreign
currency Issuer Default rating to 'BB+' from 'BB.'
On March 27, 2007, Moody's Investors Service upgraded LG
Telecom's foreign currency corporate family rating and senior
unsecured bond rating to Ba1 from Ba2. The outlook on the
rating is stable.
SHINHAN CARD: Fitch Assigns 'C' Individual Rating
-------------------------------------------------
Fitch Ratings has assigned a 'BBB+' Foreign Currency Issuer
Default Rating to Shinhan Card Co Ltd.
Other ratings assigned include:
* Short-term rating of 'F2'
* Individual rating of 'C' and;
* Support rating of '2'
SC's ratings reflect its very good profitability, proven prudent
risk management as well as its very strong franchise due to it
being part of the Shinhan Financial Group. SC's franchise will
be further enhanced by its merger within the next two years with
Korea's largest credit card company, LG Card; this will raise
SC's share of the country's credit card market from a current 9%
to a dominant circa 25%. SC derives a number of major benefits
from being part of the SFG including the use of Shinhan Bank's
1,007 offices to distribute its cards. It also substantially
leverages off the bank's customer base for sales, and benefits
from the group's high profile, good reputation and advertising.
Last but not least, it derives a higher level of creditor
confidence as a result of being part of the group, which in turn
lowers its funding costs.
Since incurring a loss equal to 4% of its average assets in
2003, SC's profitability has steadily improved. In 2006, it
achieved an exceptional return on average assets of 9.1%, albeit
positively distorted by a nine-month contribution from Chohung's
card business and the booking of a substantial tax benefit. On
a normalized basis, 2006's RoAA was around 5%, in line with the
industry and still very good, reflecting low credit costs and
the exceptional margins available in Korea's credit card
industry. While competition and/or higher interest rates may
erode margins and credit quality, Fitch believes SC and its
peers will continue to report good returns over the next couple
of years.
At end-06, the quality of SC's receivables was satisfactory,
with a non-performing loans ratio of 3.2% and a 2.8%
precautionary loans ratio. The company's long-term expectation
is for credit costs to remain around 4% p.a., which is
satisfactory given the margins being achieved. And while SC's
capital position is relatively weaker than its peers', with a
capital adequacy ratio (CAR) of 14% as of 31 March 2007, it is
ultimately targeting a CAR of 15% to 20% which, while being less
than that generally being targeted by its peers, is considered
satisfactory in light of creditor confidence in SC, due to its
status as a wholly owned and integral part of the Shinhan group.
Regarding LG Card, after a difficult time during the 2003 credit
card crisis, its profitability is now similar to SC on an
underlying basis. Furthermore, the quality of LG Card's loans
is satisfactory with a 4.8% NPLs ratio and 186% reserves
coverage at end-2006. Meanwhile, LG Card's CAR was exceptional
at 35%, although this is expected to come down to 15%-20% by the
time it's merged with SC.
The outlook on SC's ratings is stable. Downside risk would
arise if SC's CAR fell to and remained significantly below 15%,
or if there were any serious difficulties in integrating SC and
LG Card. Upside potential would arise out of any upgrade of
Shinhan Bank's ratings ('A-' (A minus), Positive) as this would
indicate better capacity of support from the group. Fitch notes
that given the reputational damage that SC's failure would cause
SFG, there is a high probability that SFG would support it if
required.
About Shinhan Card
Shinhan Card Co. Ltd. is Korea's biggest credit card company.
Headquartered in Seoul, Korea, the Shinhan Card has a
partnership with Shinhan Capital, and is sponsored by Shinhan
Financial Group. Shinhan Card was established in 1990 as a
technical and business company licenced by Shinhan Bank.
TOWER AUTOMOTIVE: Disclosure Statement Hearing Set for June 5
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
will convene a hearing on June 5, 2007, to consider the adequacy
of the Disclosure Statement explaining Tower Automotive Inc. and
its debtor-affiliates' Joint Plan of Reorganization.
The deadline for filing objections to the Disclosure Statement
is May 29.
As previously reported, the Debtors delivered their Joint Plan
of Reorganization and accompanying Disclosure Statement to the
Bankruptcy Court on May 1, 2007. The Reorganization Plan
provides for the (i) payment in full of secured claims,
including obligations under Tower's DIP credit facility and
second lien loan facility, as well as payment in full of
administrative and priority claims, (ii) assumption of the
company's pension plan, and (iii) partial recovery for certain
unsecured creditors.
The Plan also incorporates the previously announced sale
agreement for substantially all of Tower's assets to TAC
Acquisition Company, LLC, an affiliate of Cerberus Capital
Management, L.P. Tower expects to close the sale transaction by
July 31, 2007, after the completion of a competitive bidding
process as outlined in the Sale Agreement with Cerberus, and
Court approval of both the Plan and Sale Transaction.
About Tower Automotive
Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and
producer of vehicle structural components and assemblies used by
very major automotive original equipment manufacturer, including
BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia,
Nissan, Toyota, Volkswagen and Volvo. Products include body
structures and assemblies, lower vehicle frames and structures,
chassis modules and systems, and suspension components. The
company has operations in Korea, Spain and Brazil.
The Company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts. Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors. When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.
* Fitch Issues Report on Korean Banks' 2006 Results
---------------------------------------------------
Fitch has released a report on the Korean banking sector titled
"The Korean Banks: 2006 Results" which discusses the banks' 2006
results with a special focus on the five major nationwide
commercial banks. The report notes that the strong loans growth
of certain banks over the year has resulted in reduced margins
for all banks and has also apparently pushed the banks towards
more risky borrowers, particularly speculative property
investors, unsecured personal loan borrowers, as well as others
engaging in carry trade activities.
Of more general concern is that this stronger, higher-risk loans
growth has come at a time when the Korean economy is displaying
signs of softness, which may be a continuing trend, depending on
US economic growth, which also appears to be softening. That
said, as it currently stands, the loans quality for the Korean
banks is excellent with non-performing loans now negligible
after a long-standing period of benign economic conditions.
Furthermore, while underlying profitability has decreased due to
margin contraction, it remains satisfactory and is a sufficient
buffer for a more challenging environment. Capitalization,
meanwhile, remains satisfactory, although this too declined
slightly over 2006; some banks are now notably below their long
term Tier 1 and total Capital Adequacy Ratios targets of 8% and
12%, respectively. Fitch opines that any further CAR declines
for these banks may limit their potential for ratings upgrades
even if the economic environment remains benign.
===============
M A L A Y S I A
===============
LITYAN HOLDINGS: Loan Default Reaches MYR20.5 Mil. at April 30
--------------------------------------------------------------
Lityan Holdings Bhd disclosed with the Bursa Malaysia Securities
Bhd its default status to various credit facilities as of
April 30, 2007.
As of end-April 2007, Lityan Holdings owes its creditors
MYR20.51 million:
Total Principal and
Lender Type of Facility Interest in Default
------ ---------------- -------------------
RHB Bank Berhad Overdraft Facility MYR295,589.52
of MYR225,000/-
RHB Bank Berhad Overdraft Facility 591,249.66
of MYR450,000/-
Bank Islam Malaysia Letter of Credit 11,442,069.02
Berhad Labuan Facility/Murabah
Offshore Branch Working Capital
(Formerly known as Financing/Revolving
Bank Islam (L) Ltd) Al-Bai-Bithaman-Ajil
Facility of US$10 mil.
(Secured)
Bank Islam Malaysia Revolving Al-Bai- 6,887,469.88
Berhad Labuan Bithaman-Ajil Facility
Offshore Branch of US$5 million
(secured)
Ambank Berhad Overdraft Facility 1,297,580.87
of MYR1 million ----------------
MYR20,513,958.95
Lityan also told the bourse that it is currently looking into
other business opportunities within its core activities and also
actively taking steps to dispose the Group's non-core
investments and non-operating assets to address its current
financial position.
The company also clarified that its three subsidiaries -- Lityan
Systems Sdn Berhad, Digital Transmission Systems Sdn Bhd, and
Lityan (L) Incorporated, which have defaulted in various credit
facilities to the financial institutions -- are not major
subsidiaries.
* * *
Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding. The Group carries out its operations in
Malaysia and the Philippines.
On May 10, 2005, the Company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category. On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring itself onto stronger financial footing via an
injection of new viable businesses.
Lityan Holdings Bhd's unaudited balance sheet as of December 31,
2006, showed total assets of MYR66.35 million and total
liabilities of MYR148.19 million, resulting in a shareholders'
deficit of MYR81.84 million.
MBF CORP: Securities Commission Rejects Reform Plan Proposals
-------------------------------------------------------------
MBF Corp Bhd disclosed with the Bursa Malaysia Securities Bhd
that its regularization plan proposals have been rejected by the
Securities Commission.
The Commission, in a letter addressed to the company, gave three
reasons as to why it decided to reject the proposals:
(i) The under performance in the timeshare and hotel
services segment, which is expected to be the main
revenue and profit contributor to the MBf Corp group;
(ii) The reliance on the results of an associate company, QBE
Insurance (Malaysia) Berhad, of which the Company does
not exert control, as a main income contributor; and
(iii) Concerns on the cash flow position from its operating
activities and hence the Company's ability to fulfill
its debt obligations and continue to operate as a going
concern moving forward.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 25, 2007, that the company submitted its regularization
proposals with the bourse, which among others, contains:
* Proposed Share Capital Reduction and Share
Consolidation;
* Proposed RCSLS Conversion Price Adjustment;
* Proposed Rights Issue
* Proposed Amendments to the Memorandum and Articles of
Association; and
* Proposed Share Capital Reduction and Share Consolidation.
* * *
Headquartered in Kuala Lumpur, Malaysia, MBf Corporation Berhad
is principally involved in promoting and selling property, club
and timeshare memberships; leasing factoring facilities, credit
cards, consumer financing and related products; and property
development. Other activity include investment holding.
The Group operates in three main areas, namely, Malaysia,
Indonesia, and Hong Kong and Taiwan collectively. The Group's
principal activities are mainly operated in Malaysia except for
the credit card business, which is carried out in Indonesia.
The Group has no significant operations in Hong Kong and Taiwan
other than certain residual assets from a subsidiary that has
since been liquidated in Taiwan.
The Company is classified under Bursa Malaysia Securities
Berhad's Practice Note 17 category and is required to formulate
a plan to raise its shareholders' equity to avoid getting
delisted.
METROPLEX BERHAD: Court Moves Wind-Up Hearing Date to May 24
------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific on March 22, 2007,
reported that Metroplex Development Sdn Bhd, a subsidiary of
Metroplex Bhd, is facing a wind-up petition filed by Ken
Grouting System Specialist Sdn Bhd over an asserted claim of
MYR118,874.32.
The hearing for the wind-up petition was originally fixed for
April 26, 2007.
In an update, the company disclosed with the Bursa Malaysia
Securities Bhd that that the Kuala Lumpur High Court has
adjourned the hearing to May 24, 2007.
* * *
Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations. Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school. Operations are
carried out in Malaysia, Hong Kong, and the Philippines.
Metroplex is classified under Bursa Malaysia Securities Berhad's
PN 17 Category and is therefore required to submit and implement
a plan to regularize its business condition.
Metroplex Bhd's Jan. 31, 2007, unaudited balance sheet went
upside down with a shareholders' deficit of MYR301.72 million
from total assets of MYR1.16 billion and total liabilities of
MYR1.46 billion.
METROPLEX BERHAD: Asks Bourse to Extend Plan Filing Deadline
------------------------------------------------------------
Metroplex Bhd and its provisional liquidators asked the Bursa
Malaysia Securities Bhd to extend until October 28, 2007, its
deadline to submit its regularization plan to the Securities
Commission and other relevant authorities for approval.
On April 11, 2007, the Troubled Company Reporter - Asia Pacific
reported that Metroplex Bhd also filed an appeal against
bourse's decision to delist its securities from the official
list.
* * *
Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations. Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school. Operations are
carried out in Malaysia, Hong Kong, and the Philippines.
Metroplex is classified under Bursa Malaysia Securities Berhad's
PN 17 Category and is therefore required to submit and implement
a plan to regularize its business condition.
Metroplex Bhd's Jan. 31, 2007, unaudited balance sheet went
upside down with a shareholders' deficit of MYR301.72 million
from total assets of MYR1.16 billion and total liabilities of
MYR1.46 billion.
====================
N E W Z E A L A N D
====================
ALEXANDER DEVELOPMENTS: Receiving Proofs of Debt Until May 11
-------------------------------------------------------------
Alexander Developments Ltd. requires its creditors to file their
proofs of debt by May 11, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company's dividend distribution.
The company's liquidators are:
Karen Betty Mason
Jeffrey Philip Meltzer
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
COUGAR PROPERTIES: Commences Liquidation Proceedings
----------------------------------------------------
On April 12, 2007, Cougar Properties Limited commenced
liquidation proceedings.
Karen Betty Mason and Jeffrey Philip Meltzer, who were appointed
as the liquidators, require the creditors to file their proofs
of debt by May 11, 2007.
The Liquidators can be reached at:
Karen Betty Mason
Jeffrey Philip Meltzer
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
EXEMPLARY HOMES: Shareholders Agree to Liquidation of Business
--------------------------------------------------------------
On April 2, 2007, the shareholders of Exemplary Homes Ltd. had
their meeting and agreed to liquidate the company's business.
Samuel Michael William Bassett was appointed as liquidator.
The Liquidator can be reached at:
Samuel Michael William Bassett
Markhams MRI Auckland
Level 10, 203 Queen Street
PO Box 2194, Auckland
New Zealand
Telephone:(09) 309 6011
Facsimile:(09) 366 0261
INCH BY INCH: Placed Under Liquidation
--------------------------------------
On April 5, 2007, Inch By Inch Limited started to wind up its
business and Stephen Hugh Orr Reaney was appointed as
liquidator.
Mr. Reaney can be reached at:
S. H. O. Reaney
Gardiner Reaney Limited
Chartered Accountants
Maritime Building
corner of Browning and Byron Streets
PO Box 192, Napier
New Zealand
Telephone:(06) 835 3385; (06) 835 4449
Facsimile:(06) 835 5115
MARGAN PROPERTIES: Requires Creditors to Prove Debts by May 11
--------------------------------------------------------------
Margan Properties Limited, which is in liquidation, requires its
creditors to file their proofs of debt by May 11, 2007.
Creditors who cannot prove their debts by the due date will be
excluded from sharing in the company's dividend distribution.
The company's liquidators are:
Karen Betty Mason
Jeffrey Philip Meltzer
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
NAPIER TURF: High Court to Hear Wind-Up Petition on May 17
----------------------------------------------------------
A petition to wind up the operations of Napier Turf
Professionals Ltd. will be heard before the High Court of Nelson
on May 17, 2007.
Building Connexion Limited filed the petition on March 26, 2007.
Building Connexion's solicitor is:
B. R. Young
c/o Golden Bay Collections Limited
PO Box 207, Takaka 7172
New Zealand
Telephone:(03) 525 7100
Facsimile:(03) 525 9040
e-mail: gb.collections@xtra.co.nz
POTAKA FORESTRY: Wind-Up Petition Hearing Set for May 7
-------------------------------------------------------
On March 28, 2007, Accident Compensation Corporation filed a
petition winding up the operations of Potaka Forestry
Contractors Ltd.
The petition will be heard before the High Court of Palmerston
North on May 7, 2007, at 10:00 a.m.
Accident Compensation's solicitor is:
Dianne S. Lester
c/o Maude & Miller
2nd Floor, McDonald's Building
Cobham Court, Porirua City
New Zealand
SCENICLAND SERVICES: Wind-Up Petition Hearing Set for May 11
------------------------------------------------------------
An application to wind up the operations of Scenicland Services
(Westland) Ltd. was filed by Allied Petroleum Limited on
March 29, 2007.
The High Court of Christchurch will hear the petition on May 11,
2007, at 10:00 a.m.
Allied Petroleum's solicitor is:
S. N. McKenzie
c/o Preston Russell Law
92 Spey Street
PO Box 355), Invercargill
New Zealand
Telephone:(03) 211 0080
Facsimile:(03) 211 0079
TRIBEWORKS INC: Williams & Webster Raises Going Concern Doubt
-------------------------------------------------------------
Williams & Webster, P.S. reported that Tribeworks Inc.'s
significant operating losses raise substantial doubt about its
ability to continue as a going concern after auditing the
company's financial statements as of Dec. 31, 2006, and 2005.
For the year 2006, the company listed revenues of US$39,706 and
zero revenues for the year 2005. Net loss for the year 2006 was
US$1,818,551, as compared with a net loss for the year 2005 of
US$175,791.
As of Dec. 31, 2006, the company's balance sheet showed total
assets of US$1,672,429 and total liabilities of US$899,992,
resulting in a total stockholders' deficit of US$772,437.
The company's December 31 balance sheet also showed strained
liquidity with total current assets of US$205,656 available to
pay total current liabilities of US$899,992.
Liquidity and Capital Resources
On Dec. 31, 2006, the company had cash on hand of US$130,991, as
compared with US$52,344 at December 31, 2005. During the year
ended Dec. 31, 2006, it raised US$2,439,753 through the sale of
new equity securities to finance the development of the new
AtlasTG business, as compared with US$1,069,755 raised in the
year ended Dec. 31, 2005. Sales of equity have historically
been the company's primary source of funding.
The capital raised during both 2006 and 2005 has been used to
develop the IT support tools and platform for the company's new
business line. The net loss for 2006 was funded out of the
company's new equity issuances.
The company anticipates that during 2007, revenue will increase
as a result of sales to customers of the established BLive
business, consulting services and from its new main stream IT
support business. It also received two substantial tax refunds
relating to software development work carried out with the BLive
business that have improved its liquidity.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1e30
About Tribeworks
Tribeworks Inc., (OTC BB: TWKS) -- http://www.tribeworks.com/--
through its principal subsidiary, Atlas Technology Group,
provides outsourced application software support services for
clients with large information technology functions worldwide.
The company specializes in remotely supporting custom-built
applications, using process and monitoring systems, from data
centers in Maltam Seattle, and New Zealand. Its head operating
office is located in Malta.
VIDEOWORKS LTD: Appoints K. P. Brown as Liquidator
--------------------------------------------------
Kenneth Peter Brown and Thomas Lee Rodewald were appointed as
liquidators of Videoworks Ltd. on April 5, 2007.
The Liquidators can be reached at:
Kenneth Peter Brown
Thomas Lee Rodewald
c/o Rodewald Hart Brown Limited
127 Durham Street
PO Box 13380), Tauranga
New Zealand
Telephone:(07) 571 6280
Website: http://www.rhb.co.nz
VISION CUBED: Fixes May 25 as Last Day for Receiving Claims
-----------------------------------------------------------
On April 4, 2007, Vision Cubed 2003 Ltd commenced liquidation
proceedings.
Peri Micaela Finnigan and Boris van Delden, the appointed
liquidators, require the company's creditors to file their
proofs of debt by May 25, 2007.
The Liquidators can be reached at:
Peri Micaela Finnigan
Boris van Delden
McDonald Vague
PO Box 6092, Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
VISITORS SOUVENIR: Subject to Wind-Up Petition
----------------------------------------------
A petition to wind up the operations of Visitors Souvenir Co
Ltd. will be heard before the High Court of Christchurch on
May 11, 2007.
Memories of NZ Limited filed the petition on April 3, 3007.
Memories of NZ Limited's solicitor is:
Malcolm David Whitlock
Whitlock & Co.
c/o Level 2, Baycorp House
15 Hopetoun Street
Auckland
New Zealand
WINDSOR PROPERTY: High Court to Hear Wind-Up Petition on May 10
---------------------------------------------------------------
The High Court of Napier will hear a petition to wind up the
operations of Windsor Property Trustee Company Ltd. on May 10,
2007, at 10:00 a.m.
The petition was filed by the Commissioner of Inland Revenue on
April 3, 2007.
The CIR's solicitor is:
R. J. Collins
c/o Elvidge & Partners
corner of Raffles and Bower Streets
Napier
New Zealand
* Gas Prices Remain Achilles' Heel for NZ Utilities, S&P Says
-------------------------------------------------------------
Rising gas prices and the lack of material gas-field discoveries
remain significant risks for New Zealand's energy utilities and
makes them more vulnerable over the medium-to-long term,
according to a report published today by Standard & Poor's
Ratings Services titled "Industry Report Card: Gas Prices Remain
Achilles' Heel For New Zealand Utilities".
The report discusses concerns surrounding long-term gas supplies
in New Zealand, including the credit implications of an
escalation in energy project costs. Other industry issues
affecting the credit quality of New Zealand utilities and ports
are also examined, including regulatory changes and the impact
of the inherently volatile hydrological conditions. The report
also comments on the recent credit performance of the nine New
Zealand-based electricity, gas, port, and water companies rated
by Standard & Poor's.
"Issues relating to gas supplies and higher prices have not
affected credit quality so far, but they remain a focus area for
evaluation," said Standard & Poor's credit analyst Richard
Creed. "Although uncertainty surrounds the magnitude of further
price increases, the extent to which increased gas costs can be
passed on to end consumers, and the potential competitive
advantage conferred on non thermal generators will drive the
sector's overall credit profile."
The report is available on RatingsDirect, Standard & Poor's Web-
based credit analysis system, at http://www.ratingsdirect.com
=====================
P H I L I P P I N E S
=====================
CHIQUITA BRANDS: Posts US$3.4 Million Net Loss in 1st Qtr. 2007
---------------------------------------------------------------
Chiquita Brands International Inc. released financial and
operating results for the first quarter ended March 31, 2007.
Chiquita posted US$3.4 million in net losses against US$1.19
billion in net sales for the first quarter ended March 31, 2007,
compared with US$19.5 million in net profit against US$1.15
billion in net sales for the same period in 2006.
Quarterly sales rose primarily due to increased banana volume in
Europe and North America and favorable foreign exchange rates,
partly offset by lower local banana pricing in Europe.
Operating income decreased year-over-year to US$18 million in Q1
2007 from US$39.3 million in Q1 2006 due to higher purchased
fruit and other industry costs, lower local banana pricing in
the European market, higher costs due to a record January freeze
in Arizona, which affected lettuce sourcing, and the charge
related to a decision to exit certain farm leases in Chile.
These were partially offset by favorable year-over-year European
exchange rates and the absence of residual costs from Tropical
Storm Gamma that affected the year-ago period.
The year-over-year improvement in operating cash flow to
(US$3.4) million in Q1 2007 from US19.5 million in Q1 2006 was
attributable to lower seasonal working capital requirements,
driven by a reduction in days sales outstanding in receivables,
partly offset by a decline in operating results.
The increase in total debt to US$1.06 million in Q1 2007 from
US$1.02 million in Q1 2006 was due to US$36 million of
borrowings on the company's revolving credit facility in the
first quarter 2007, which brought total borrowings under the
facility to US$80 million at March 31, 2007, compared to US$27
million at March 31, 2006. The company repaid US$16 million in
April and currently expects to repay all outstanding borrowings
under its revolving credit facility by the end of the second
quarter 2007. The company expects to apply excess cash flow
primarily to pay down debt until it reaches its target total
debt-to-capital ratio of 40 percent. At March 31, 2007, this
ratio was 55 percent and would have been 51 percent proforma for
the debt reduction resulting from the ship sale transaction
described below.
"During the first quarter, we continued to make good progress in
both our banana and salad operations," Fernando Aguirre,
chairman and chief executive officer, said. "In Europe, we grew
volume while maintaining our premium market position and
profitability, despite last year's onerous regulatory changes.
In our North American banana business, we also grew volume,
recovered cost increases, and are successfully introducing
higher-margin, innovative products to differentiate the Chiquita
brand. At Fresh Express, we have strengthened our No. 1
position in retail value-added salads and reinforced our food
safety leadership in the face of soft consumer demand for
packaged salads. While these primary segments are improving, we
have also taken decisive actions to improve profits in our other
produce operations, including exiting certain farm operations in
Chile.
"Most significantly, the long-term shipping agreement we
announced [Tues]day is an important step in the execution of our
strategy to return to profitable, sustainable growth. In a
nutshell, we could not have asked for a better transaction. We
will increase our financial flexibility, simplify our business
model, and focus on the marketplace to provide branded, healthy,
fresh foods to consumers worldwide, while we let the right
experts deliver as good or better results in our shipping
operations. We are confident that our agreement with two
premier global shipping companies will ensure the continuing
reliable, high-quality shipment of Chiquita products at
competitive operating costs. At the same time, the transaction
will significantly reduce our debt, and the alliance will better
position us to adapt our shipping services as we grow our
business over time."
"Overall, while we have faced several obstacles in recent
quarters, I am confident that Chiquita is on the right path, and
we saw tangible signs of progress in the first quarter. We
remain committed to deliver sustainable, profitable growth, and
we expect 2007 to be a positive step in reaching those goals,"
Mr. Aguirre concluded.
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
* * *
Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc. Moody's said the outlook on all ratings is
stable.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
CHIQUITA BRANDS: Selling Cargo Vessels for US$277 Million
---------------------------------------------------------
Chiquita Brands International Inc. has signed definitive
agreements to sell its 12 refrigerated cargo vessels for US$227
million.
The ships will be chartered back from an alliance formed by
Eastwind Maritime Inc. and NYKLauritzenCool AB. The parties
also entered a long-term strategic agreement in which the
alliance will serve as Chiquita's preferred supplier in ocean
shipping to and from Europe and North America.
As part of the transaction, Chiquita will lease back 11 of the
vessels for a period of seven years, with options for up to an
additional five years, and one vessel for a period of three
years, with options for up to an additional two years. The
vessels to be sold consist of eight reefer ships and four
container ships, which collectively transport approximately 70
percent of Chiquita's banana volume shipped to core markets in
Europe and North America. The agreements also provide for the
alliance to service the remainder of Chiquita's core ocean
shipping needs for North America and Europe, including through
multiyear time charters commencing in 2008 for seven additional
reefer vessels.
"This long-term arrangement will increase our financial
flexibility, simplify our business model and allow us to
increase our focus on providing branded, healthy, fresh foods to
consumers worldwide," Fernando Aguirre, Chiquita's chairman and
chief executive officer, said. "We are confident that the
alliance parties, whose core business is global shipping, will
ensure the continuing reliable, high-quality shipment of
Chiquita products. The ship sale transaction will significantly
reduce our debt, and the alliance will better position us to
adapt our shipping services as we grow our business over time.
At the same time, we anticipate that this transaction will
generate synergies and help to keep operating costs competitive.
Additionally, the long-term ship leases will help insulate us
from further industry operating cost increases on a significant
portion of our logistics portfolio for several years to come."
"This transaction is an exciting and rare opportunity to acquire
a large, modern, highly efficient refrigerated fleet and to work
with one of the best names in the produce industry," John Kousi,
chairman of Eastwind Maritime, said. "Not only is this a great
opportunity to grow with Chiquita, but it also provides an
excellent platform on which to optimize capacity and achieve
cost synergies in the global shipment of produce, which is key
to our business."
The parties expect to complete the transaction within 45 days.
The alliance parties have committed to maintain the same high
social and environmental standards and certifications that
Chiquita introduced in its shipping operations, including
International Maritime Organization, American Bureau of
Shipping, ISO 9002, and ISO 14001 safety, quality and
environmental standards as well as Chiquita's code standards
related to labor conditions.
As of March 31, 2007, the net book value of the assets to be
transferred in the transaction approximated US$125 million.
Chiquita expects to realize an after-tax gain on the transaction
of approximately US$100 million, which will be amortized over
the initial terms of the ship charters. The cash proceeds from
the transaction will be used to repay approximately US$170
million of debt, including US$90 million of ship mortgage debt
and US$80 million in term loan and revolving credit borrowings.
The remainder will be retained for general corporate purposes,
including growth investments. The company's total-debt-to-
capitalization ratio of 55 percent at March 31, 2007, would have
been approximately 51 percent pro forma for the debt reduction
resulting from the transaction.
While EBITDA and operating income will be reduced because of the
conversion from owned assets to operating leases, the
transaction is expected to be accretive to net income and EPS
beginning in 2007, despite US$4 million in one-time costs for
severance and the writeoff of deferred financing costs, which
will be expensed in the second quarter. The company estimates
that it will achieve synergies of approximately US$2 million in
2007 and US$4 million in 2008 through efficiencies such as route
combinations, cargo sharing and increased backhaul revenues.
Transaction's Estimated
Impact, Including Synergies
(US$ millions except EPS) 2007 2008(1)
EBITDA (US$12) (US$14)
Depreciation 7 11
Operating Income (5) (3)
Net Income 1 11
EPS 0.03 0.25
Chiquita anticipates additional improvement during the
subsequent six-year period (2009-2014), because the company will
not incur certain inflationary operating expenses due to the
fixed lease rates established in the agreement.
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
* * *
Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc. Moody's said the outlook on all ratings is
stable.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
PHILCOMSAT: Fails to Submit Annual Report; Trading Halted
---------------------------------------------------------
The Philippine Stock Exchange has ordered the suspension of
trading of Philcomsat Holdings Corporation's shares starting on
May 3, 2007, due to the company's failure to submit its annual
report using SEC Form 17-A for the fiscal year ended Dec. 31,
2006.
The order is pursuant to section 17.8 of the revised disclosure
rules on sanctions for non-compliance with certain structured
reportorial requirements, which state that failure by a
corporation to comply with the requirement will result in the
automatic suspension of trading of its shares.
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, Philcomsat
Holdings was one of the active participants in search of oil.
The company has since withdrawn from oil exploration because
there was no commercial discovery of oil.
On January 10, 1997, the company approved amendments to its
Articles of Incorporation, changing its primary purpose from
embarking in the discovery, exploitation, development and
exploration of mineral oils, petroleum in its natural state,
rock or carbon oils, natural oils and other volatile mineral
substances to a holding company.
According to a Troubled Company Reporter - Asia Pacific report
on May 18, 2006, Philcomsat Holdings has not declared dividends
for the past two fiscal years.
Philcomsat is involved in an anomaly brought about by huge
losses. The company reported a PHP6.965-million loss in 2004,
and a PHP22-million loss in 2005. The Philippine Senate has
initiated an inquiry into the matter.
Moreover, according to press reports, a huge fraction of the
shareholdings of Philcomsat, which is said to be ill gotten, had
been confiscated by the Government.
PREMIERE ENT: Sycip Gorres Velayo Raises Going Concern Doubt
------------------------------------------------------------
Jessie Cabaluna at Sycip Gorres Velayo and Co. raised
significant doubt on Premiere Entertainment Productions, Inc.'s
ability to continue as a going concern. The auditor cited the
company's declining revenue and recurring losses, which resulted
in a deficit of PHP393.50 million and PHP375.80 million as of
December 31, 2006, and 2005, respectively.
The company reported a net loss of PHP17.75 million, 107.67%
higher than the PHP8.5 million loss in 2005, but 67.69% lower
than PHP54.9 million in 2004.
Operating revenues decreased from PHP2.4 million last year to
PHP1.9 million this year.
No revenue was derived from roving cinema as of 2006 and 2005,
compared to PHP3.4 million in 2004 and PHP3.8 million in 2003.
Depreciation and amortization went down by 6.3%, from PHP1.7
million in 2005 to PHP1.6 million at the end of 2006.
Operating expenses at the end of 2006 amounted to PHP2.8
million, a decrease by 29.9% from PHP3.9 million in 2005 and 42%
from PHP4.8 million in 2004.
As of Dec. 31, 2006, the company had total assets amounting to
PHP160.9 million, total liabilities amounting to PHP34.4 million
and total stockholders' equity of PHP126.5 million.
Full-text copies of the company's financial statements are
available for free at http://bankrupt.com/misc/PEP2006.pdf
Premiere Entertainment Productions, Inc. -- formerly known as
Premiere Films International, Inc. -- is engaged in the business
of dealing in and with all kinds of motion pictures to the
business of various forms of entertainment and leisure
including, but not limited to, movie films and export and
distribution services offered to and for local and international
film market.
PRYCE CORP: Posts PHP231.5 Million Net Loss for 2006
----------------------------------------------------
Pryce Corporation reported a net loss of PHP231.5 million for
the year 2006 -- its third consecutive annual loss. In 2005,
the company posted a PH51.1 million net loss. Pryce reported a
PHP170.2 million net loss for 2004.
Consolidated revenues declined to PHP1.292 billion in 2006
compared to the PHP1.872 billion registered in 2005 due mainly
to the sharp reduction in the sale of liquefied petroleum gas.
This came about because the subsidiary, Pryce Gases, Inc., in
2006 started to phase itself out of the 50-kg. cylinder niche
market for LPG consisting of commercial and industrial clients
like hotels, restaurants and bars, laundry shops and food
companies, where sales are on credit and end up as receivables
up to ninety days and longer or become uncollectible. Some
clients even prefer to dictate terms. This contrasts sharply
with sales to the household segment where the various dealers
and outlets of PGI pay strictly in cash when they refill their
11-kg. cylinders.
Another reason for bailing out of the 50-kg. market segment is
that a competing LPG player, with multinational links, has been
trying to corner this market niche in the Visayas-Mindanao area
by lowering its price and giving hard-to-match payment terms to
clients. The reduced LPG sales volume is also partly caused by
the record high prices of LPG in recent times, which have the
effect of dampening demand for the product.
As a result of aforesaid phase-out, sales volume of PGI in the
50-kg market shrank by some 10.298 million kgs (10,298 MT) in
2006. To make up for the loss of the 50-kg market as well as
avail of new selling opportunities, PGI has tapped the market
for LPG automotive fuel. As of the end of 2006, it had set up a
total of eighteen autogas stations: eight in Mindanao, eight in
the Visayas, and two in Luzon.
The LPG autogas market is believed to be fast growing because
the price of autogas is significantly lower than that of
gasoline and is environment-friendly as it burns more
efficiently and emits no pollutants. Moreover, sales is also on
cash basis since car owners and drivers pay up as they fill up.
In the next two years, revenues from autogas sales are expected
to grow significantly and should more than fill the void created
by PGI's withdrawal from the 50-kg LPG market.
Despite the significantly reduced volume, LPG was still the
biggest contributor to total revenues in 2006 with PHP1.007
billion sales or 77.9% of aggregate, while industrial gas sales
turned in PHP198.189 million or 15.34%. Real estate sales
amounted to PHP41.08 million or 3.18% of total while Hotel
operations contributed PHP40.33 million or 3.12%. The balance of
PHP5.72 million (0.44%) of consolidated revenues came from
interest income on installment sales of real estate.
Industrial gas and real estate sales realized modest growth in
revenues as compared to the preceding year's figures. However,
revenue from hotel operations dropped by some 40% as a result of
stiff competition from at least two new hotels in the city,
which offer lower room rates.
Cost of goods sold aggregated PHP1.041 billion, resulting in a
gross profit of PHP251.02 million, which is substantially lower
than the PHP362.72 million recorded in 2005. Operating expenses
amounted to PHP349.51 million to yield a loss from operations of
PHP98.48 million, a reversal of the positive income amounting to
PHP15.73 million registered in 2005. The operating loss is
basically caused by the much lower revenues realized in 2006
which are not sufficient to fully cover operating costs.
Other income consisted of finance costs of PHP100.43 million
which included the interest charges on PGI's restructured loans
and the rebooking by the mother company of interest charges on
its loans with China Banking Corp., which won its appeal with
the Court of Appeals, resulting in a setting aside of the mother
company's earlier-approved rehabilitation plan. Also included
under this account are fair value adjustments amounting to
PHP19.91 million attributed to higher market value of marketable
securities and gain from dacion-en-pago transactions of the
mother company with an investment bank in the amount of PHP35.05
million. It further included other income of PHP46.64 million
representing mainly gain on sale of financial assets at market
value and unrealized foreign exchange gain (net of impairment
losses). This has resulted in a net other income of PHP1.17
million.
Income tax expense consisted of the current portion representing
minimum corporate income tax of PHP7.77 million and a special
entry involving the write-off of deferred tax assets amounting
to PHP126.47 million, which are no longer recoverable or that
will no longer benefit the company since it has been incurring
losses. The operating loss cited above and this write-off of
deferred tax assets have resulted in an after-tax loss of
PHP231.55 million in 2006 as compared to the PHP51.17 loss
reported in 2005.
On December 11, 2006, three of the mother company's existing
shareholders subscribed to additional 177,006,250 unissued
shares at the par value of PHP1.00 per share, resulting in full
subscription to Pryce Corp.'s 2,000,000,000 authorized capital
stock and an increase of 9.71% in subscribed capital stock. The
payments were made in the form of real estate assets.
Full-text copies of the company's financials are available for
free at http://bankrupt.com/misc/prycecorporation2006.pdf
About Pryce Corporation
Makati City-based Pryce Corporation --
http://www.prycegardens.com/-- formerly Pryce Properties
Corporation, was incorporated as a property holding and real
estate development company. The company's real estate
undertakings include the development of memorial parks,
residential and commercial properties and hotel operations. In
1997, LPG and industrial gases became the dominant business.
Thus, the company changed its name to Pryce Corp. and its
primary purpose from that of a property company to a
manufacturing company.
Pryce, thru its subsidiary Pryce Gases, Inc., manufactures and
distributes oxygen and acetylene in the Visayas and Mindanao and
trades in other gases such as argon, carbon dioxide and
nitrogen.
The company and certain of its subsidiaries are currently
working out a rehabilitation plan.
RIZAL COMMERCIAL: Elects John Deveras as New Sr. Vice President
---------------------------------------------------------------
Rizal Commercial Banking Corp.'s board of directors has
appointed John G. Deveras as senior vice president and head of
strategic initiatives, the bank said in a corporate disclosure
with the Philippine Stock Exchange.
Mr. Deveras has worked with various companies including
International Finance Corp. from 2005 to 2007 as investment
officer, PNB Capital & Inv. Corp. as president from 2004 to
2005, and Philippine National Bank as senior vice president of
corporate finance from 2003 to 2004. He has no shareholdings in
RCBC.
About RCBC
Rizal Commercial Banking Corporation -- http://www.rcbc.com/--
is a universal bank principally engaged in all aspects of
banking. It provides services such as deposit products, loans
and trade finance, domestic and foreign fund transfers,
treasury, foreign exchange and trust services. In addition, the
bank is licensed to enter into forward currency contracts to
service its customers and as a means of reducing and managing
the bank's foreign exchange exposure.
* * *
On November 2, 2006, the Troubled Company Reporter - Asia
Pacific reported that Fitch Ratings assigned a final rating
of 'B-' to Rizal Commercial Banking Corporation's hybrid issue
of up to US$100 million. The rating action follows the receipt
of final documents conforming to information previously
received.
On November 6, 2006, the TCR-AP also reported that Moody's
Investors Service revised the outlook for RCBC's foreign
currency senior debt rating of Ba3, foreign currency Hybrid Tier
1 of B3, and foreign currency long-term deposit rating of B1 to
stable from negative.
The outlook for RCBC's foreign currency Not-Prime short-term
deposit rating and bank financial strength rating of E+ remains
stable, the TCR-AP said.
The Troubled Company Reporter - Asia Pacific reported on
October 24, 2006, that Standard & Poor's Ratings Services
assigned its 'CCC' rating to Philippines' Rizal Commercial
Banking Corp's (RCBC; B/Stable/B) US$100 million non-cumulative
step-up callable perpetual capital securities.
=================
S I N G A P O R E
=================
ADVANCED MICRO: Completes US$2.2-Bil of 6% Senior Notes Offering
----------------------------------------------------------------
Advanced Micro Devices Inc. completed its offering of US$2.2
billion aggregate principal amount of 6% Convertible Senior
Notes due 2015, including US$200 million of notes that were
issued in connection with the exercise in full of the initial
purchasers' over-allotment option. The notes were privately
offered to qualified institutional buyers pursuant to Rule 144A
under the Securities Act of 1933, as amended.
In connection with the offering, AMD entered into capped call
transactions with an affiliate of one of the initial purchasers.
The capped call transactions are intended to reduce the
potential dilution to AMD's stockholders upon any future
conversion of the notes.
The capped call transaction effectively will increase the
conversion price of the convertible notes to US$42.12 per share
of AMD's common stock, representing a 300% premium relative to
the last reported sale price of US$14.04 per share of the common
stock on April 23, 2007.
AMD estimates that the net proceeds from the offering, will
be approximately US$2,169 million, after deducting discounts,
commissions and estimated offering expenses. AMD used
approximately US$182 million of the net proceeds of the offering
to fund the cost of the capped call transactions.
AMD used US$500 million of the remaining net proceeds to repay
a portion of the term loan AMD entered into with Morgan Stanley
Senior Funding, Inc. to finance a portion of the purchase price
of, and expenses related to, the acquisition of ATI Technologies
Inc. AMD will use the remaining amount for general corporate
purposes, including working capital and capital expenditures.
About Advance Micro
Headquartered in Sunnyvale, California, Advanced Micro Devices,
Inc. -- http://www.amd.com/-- designs and manufactures
microprocessors and other semiconductor products.
The company has a facility in Singapore. It has sales offices
in Belgium, France, Germany, the United Kingdom, Mexico and
Brazil.
The Troubled Company Reporter - Asia Pacific reported on May 03,
2007, that Moody's Investors Service affirmed AMD's B1 corporate
family rating while revising to Ba2 from Ba3 the ratings on both
the currently secured US$390 million notes due 2012 (2012 Note)
and the US$1.7 billion remainder of the original US$2.5 billion
term loan due 2013. This revision reflects AMD' recent issuance
of US$2.2 billion of senior convertible notes due 2014 (not
rated by Moody's) and the concurrent US$500 million repayment of
the bank term loan. The rating outlook remains negative.
On Apr 26, 2007, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating on Sunnyvale, California-based
Advanced Micro Devices Inc.'s.
"At the same time, we assigned our 'B-' rating to the company's
planned sale of US$1.8 billion in senior unsecured convertible
notes due in 2015," said Standard & Poor's credit analyst Bruce
Hyman. The outlook is negative.
FLEXTRONICS INT'L: Three Officers Sell 198,751 Ordinary Shares
--------------------------------------------------------------
Three officers of Flextronics International Ltd. -- Chief
Financial Officer Thomas J. Smach, Chief Technology Officer
Nicholas Brathwaite and Chief Executive Officer Michael M.
Mcnamara -- sold 198,751 ordinary shares between April 17 to
May 2, 2007. The selling price ranged from US$11.15 to US$12
per share.
Mr. Brathwaite sold 88,949 ordinary shares, while Mr. Smach sold
76,668 ordinary shares, while Mr. Mcnamara sold 33,134 ordinary
shares.
On April 26, 2007, Mr. Brathwaite acquired 58,334 common shares,
while Mr. Smach and Mr. Mcnamara each acquired 33,334 common
shares through performance-based vesting of restricted share
units.
As of May 2, 2007, Mr. Brathwaite is deemed to beneficially own
160,085 common shares while Mr. Smach and Mr. Mcnamara are
deemed to beneficially own 176,756 and 337,547 common shares
respectively.
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.
PETROLEO BRASILEIRO: Bolivia Threatens to Nationalize Locat Unit
----------------------------------------------------------------
Bolivian President Evo Morales has threatened to put the
Bolivians holdings of Brazilian state oil firm Petroleo
Brasileiro SA, along with Italy's Telecom Italia, under state
control if the nationalization negotiations fail, The Associated
Press reports.
The AP notes that President Morales said to the crowd gathering
in front of the presidential palace in celebration of the first
anniversary of Bolivia's petroleum nationalization, "We will
back all our negotiations with dialogue, because we indigenous
people believe in the principle of dialogue. But if dialogue
doesn't work, we will recover our natural resources and our
businesses without fear."
President Morales ordered on May 1, 2006 the nationalization of
Bolivia's oil and gas industry.
The AP says that President Morales wants to buy back Bolivia's
only two oil plants from Petroleo Brasileiro. The Bolivian
leader had hoped to complete the nationalization in time for the
May 1 International Workers' Day festivities. However, the
government has not reached any agreement with Petroleo
Brasileiro yet.
According to the AP, Petroleo Brasileiro threatened
international arbitration if President Morales wouldn't pay a
fair price for its Bolivian assets.
Bolivian state-owned oil company Yacimientos Petroliferos
Fiscales Bolivianos President Guillermo Aruquipa said at a news
conference on April 30 that the firm would assume full control
of Bolivia's chain of production on May 1.
The AP underscores that Petroleo Brasileiro and other foreign
energy companies have cut plans for future investment in
Bolivia, which caused some concern among analysts over the
Bolivian oil and gas industry's future.
Meanwhile, Petroleo Brasileiro President Jose Sergio Gabrielli
told Reuters that negotiations with the Bolivian government over
the future ownership of two Bolivian refineries continue.
Petroleo Brasileiro told Reuters that it is making progress in
talks to sell its plants to Bolivia.
Petroleo Brasileiro's International Operations Director Nestor
Cervero told Reuters that the negotiations also include the
possibility of the company's remaining as the operator of the
plants for some time.
Mr. Gabrielli refused to divulge to the press the prices that
Bolivia and Petroleo Brasileiro are negotiating over.
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: In Talks with Astra Over Pasadena Expansion
----------------------------------------------------------------
Petrobras America President Alberto Guimaraes told Reuters that
Brazilian state-owned oil company Petroleo Brasileiro SA is
negotiating with its partner Astra Oil over the planned
expansion of Pasadena Refining System Inc.
Pasadena Refining is a 120,000-barrel per day plant that
Petroleo Brasileiro and Astra Oil jointly own. The refinery is
located in the Houston industrial suburb of Pasadena, Texas.
Mr. Guimaraes told Reuters that Petroleo Brasileiro and Astra
Oil plan to expand Pasadena Refining's production to 200,000
barrels, but have not completed an accord on the expansion plan.
Petroleo Brasileiro is also analyzing several plant acquisitions
worldwide, Reuters says, citing Mr. Guimaraes.
Reuters notes that Petroleo Brasileiro's current refining
capacity is "perfectly balanced" with its production of 1.9
million barrels of crude oil per day.
Petroleo Brasileiro will need to add 2.6 million barrels in
plant capacity by 2015 to reach expected crude oil production,
Mr. Guimaraes told Reuters.
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 Fuel Research Pact with Denmark
---------------------------------------------------------
Xinhua News reports that Brazilian state-owned oil firm Petroleo
Brasileiro SA President Jose Sergio Gabrielli has signed an
alternative fuel research cooperation accord with Denmark's
Prime Minister Anders Fogh Rasmussen.
Petroleo Brasileiro told Xinhua News that the agreement signed
is preliminary, and that a more detailed version will be signed
in September when Brazilian President Luiz Inacio Lula da Silva
visits Denmark.
According to Xinhua News, Denmark wants to fulfill the goals
that the European Union set to lessen its fossil fuel
consumptions. The nation has planned to have 10% of its
vehicles use biofuels by 2020.
Joint research and bilateral exchanges may lead to the discovery
of new technologies to produce biofuels, Xinhua News states
citing Mr. Gabrielli.
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.
VALEANT PHARMACEUTICALS: Earns US$8,568,000 in 1st Quarter 2007
---------------------------------------------------------------
Valeant Pharmaceuticals International reported results for the
first quarter of 2007.
First Quarter 2007 vs. 2006 Highlights:
* Revenues increased seven percent to US$213.4 million
compared to US$199.5 million.
* Product sales decreased two percent to US$176.9 million
compared to US$181.4 million.
* Alliance revenue totaled US$36.5 million compared
to US$18.1 million. Included in alliance revenue in the
2007 first quarter was a milestone payment of US$19.2
million related to the out-licensing of pradefovir.
* Income from continuing operations was US$8.6 million
compared to a loss of US$5.8 million.
* Net income is US$8,568,000.
* Adjusted for non-GAAP items, income from continuing
operations was US$16.6 million compared to a loss of
US$4.2 million. Excluding the pradefovir milestone
payment.
Timothy C. Tyson, president and chief executive officer, said,
"This clearly was a soft quarter for product sales. In many
ways, this is typical for our business in that we often have
lower sales in the first quarter along with higher marketing
costs to support annual growth. This year, however, the first
quarter was particularly impacted by a significant reduction in
sales to certain wholesalers in Mexico and by lower sales of
Infergen(R) and Efudex(R) in the United States. The reduced
sales in Mexico were precipitated by a negotiating tactic of two
major wholesalers, which we believe to be a transitory issue
that is not reflective of underlying demand for our products.
We were able to mitigate the effect of these challenging top-
line issues on our margins and earnings in the quarter through
expense management. We remain encouraged that underlying demand
is stable or growing for most of our key products, and continue
to believe that we will achieve growth at industry average rates
or better in the year."
Revenues
Product sales declined in the 2007 first quarter compared to the
same period last year, primarily due to the aforementioned
issues in the Mexican distribution chain, which significantly
impacted sales of BedoyectaTM. In addition, sales of Infergen
and Efudex were lower in the 2007 first quarter, while sales of
Cesamet(R) Kinerase(R) SolcoserylTMand BisocardTM were higher.
The effects of foreign currency exchange increased product sales
by US$4.1 million and operating income by US$0.4 million in the
2007 first quarter.
Alliance revenue in the 2007 first quarter included a milestone
payment of US$19.2 million from Schering-Plough upon the closing
of the company's out-licensing agreement for pradefovir. Also
included in alliance revenue were royalties from the sale of
ribavirin, which totaled US$17.3 million in the 2007 first
quarter, compared to US$18.1 million in the same period last
year.
Regional Sales Performance
North America product sales decreased six percent in the 2007
first quarter compared to the same period last year, primarily
due to lower sales of Infergen and Efudex, partially offset by
higher sales of Cesamet and Kinerase. The decrease in sales of
Infergen largely reflects a decline in the overall market for
interferon products in the United States. The decline in Efudex
sales primarily reflects the pull-through of inventory from the
launch of the company's generic product at the end of 2006.
Sales in the International region in the 2007 first quarter were
US$9.7 million, or 22 percent lower than the same period last
year predominantly due to the distribution chain issues in
Mexico, which affected sales of Bedoyecta and nearly all
products in the country.
Sales in the Europe, Middle East and Africa (EMEA) region
increased 16 percent in the 2007 first quarter. Approximately
half of the increase relates to the effects of foreign currency.
In spite of continued government imposed price pressures in many
European markets, Mestinon(R), Solcoseryl, Bisocard and several
other promoted products grew significantly. Much of this growth
was generated in Central and Eastern Europe.
Financial Metrics
The company's gross margin on product sales was 71 percent in
the 2007 first quarter, compared to 68 percent in the same
period last year. The improvement in gross margin was primarily
due to fewer inventory write-offs in the current period and the
impact on last year's margin from a scheduled shutdown of the
company's manufacturing facility in Mexico.
Selling expense was 36 percent of product sales in the 2007
first quarter compared to 35 percent in the same period last
year. Selling expenses are typically higher in the first half
of the year to support annual growth. General and
administrative expenses were 14 percent of product sales in the
2007 first quarter compared to 16 percent in the same period
last year. Included in general and administrative expenses in
the 2007 first quarter was an expense of US$3.8 million for an
unfavorable arbitration decision in the company's
indemnification claim against former Xcel Pharmaceuticals
shareholders relating to pre-acquisition sales, partially offset
by a US$2.2 million gain from the sale of the company's contact
lens business in Europe.
Research and development expenses were 13 percent of product
sales in the 2007 first quarter compared to 16 percent in the
same period last year. The decline was primarily due to the
sale of the company's discovery operations at the end of 2006.
About Valeant Pharmaceuticals
Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com-- is a global specialty
pharmaceutical company with US$823 million of 2005 revenues. It
has offices in Singapore and Taiwan.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Jan. 26, 2007, that Moody's Investors Service confirmed the
ratings of Valeant, including the B2 Corporate Family Rating,
and concluded the rating review for possible downgrade, which
was first initiated on October 23, 2006. Valeant's rating
outlook is now stable.
===============
T H A I L A N D
===============
ARVINMERITOR INC: Board Declares 10 Cents Per Share Dividend
------------------------------------------------------------
The ArvinMeritor Inc.'s Board of Directors, at a meeting held on
April 27, 2007, at its corporate headquarters, declared a
quarterly dividend of US$0.10 per share on the common stock,
payable June 11, 2007, to holders of record at the close of
business on May 21, 2007.
Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier USUS$8.8
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry. The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets. ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others. ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.
* * *
As reported in the Troubled Company Reporter on Feb. 12, 2007,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc. The trend is Stable.
In a TCR-Europe report on Feb. 6, Moody's Investors Service has
downgraded ArvinMeritor's Corporate Family Rating to Ba3 from
Ba2. Ratings on the company's secured bank obligations and
unsecured notes were lowered one notch as a result.
Ratings lowered:
ArvinMeritor Inc.
-- Corporate Family Rating to Ba3 from Ba2
-- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
LGD-2, 18%
-- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
LGD-4, 64%
-- Probability of Default to Ba3 from Ba2
-- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
LGD-4, 64%
Arvin Capital I
-- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%
Arvin International PLC
-- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
LGD-4, 65% from Ba3, LGD-4, 64%
Ratings affirmed:
ArvinMeritor Inc.
-- Speculative Grade Liquidity rating, SGL-2
ASIA HOTEL PCL: Names New Auditors and Members of Board
-------------------------------------------------------
Asia Hotel Public Co. Ltd. appointed the members of its board of
directors and auditors for the year 2007 after a shareholders'
annual general meeting that was held on April 24, 2007.
In a report addressed to the President of the Stock Exchange of
Thailand, the company disclosed the name of its elected
directors:
Chairman and Managing Director Kumpol Techaruvichit
Deputy Managing Director Amorn Techaruvichit
Assistant Managing Directors Surapol Techaruvichit
Surapong Techaruvichit
Pornpun Tanariyakul
Audit Committee Chairman Serm Ruhsakul
Independent & Audio Committee Sombut Pupipathirunkul
DhaniJaroenchaiyapongs
Directors Suwat Dusitrojanawongse
Sutipong Ittipong
Suvimol Techaruvichit
The shareholders also agreed to approve the following directors'
remuneration fees:
* Meeting remuneration will be THB5,000 except for the
Chairman and Vice-Chairman.
* Meeting remuneration for Chairman will be at the rate of
THB10,000.
* Vice-Chairman's meeting remuneration will be THB7,500.
* Rate for Directors' 2006 bonus will be THB800,000.
Two accountants of ANS Audit Co. Ltd. were named as the
company's auditors for 2007:
* Atipung Atipongsakul
* Prawit Viwanthananut
In addition, the shareholders also agreed in the meeting to fix
the audit budget fee for 2007 to THB865,000.
About Asia Hotel Public Co. Ltd.
Headquartered in Bangkok, Thailand, Asia Hotel Public Company
Limited -- http://www.asiahotel.co.th/-- was incorporated on
March 24, 1964, and has been publicly listed since 1989. The
company and its two subsidiaries, Asia Pattaya Hotel Company
Limited and Asia Airport Hotel Company Limited, are involved in
the hotel business, with its principal activities consisting of
room service and operating restaurants. Another subsidiary,
Zeer Property Company Limited is primarily involved in the
construction and the building of shopping complexes.
Going Concern Doubt
Atipong AtipongSakul, at ANS Audit Company Limited, raised
significant doubt on Asia Hotel Public Company Limited's ability
to continue as a going concern after auditing the company's
financial statements for the year ended Dec. 31, 2006. Mr.
Atipong pointed to the fact that the company's consolidated
financial statements and individual financial statements showed
a deficit of THB1.049 billion and THB1.209 billion,
respectively.
BLOCKBUSTER INC: Posts US$46.4MM Net Loss in Qtr. Ended April 1
---------------------------------------------------------------
Blockbuster Inc. reported a net loss of US$46.4 million for the
first quarter ended April 1, 2007, compared with a net loss of
US$1.9 million, for the first quarter of 2006. Total revenues
increased 5.4% to US$1.47 billion for the first quarter of 2007
from US$1.4 billion for the first quarter of 2006.
"During the first quarter, we captured share of the overall
rental market, continued to contain operating expenses and
aggressively grew our BLOCKBUSTER Total Access(TM) subscriber
base, which nearly doubled in a matter of five months and now
exceeds 3 million total subscribers. I am extremely pleased
with these accomplishments. Our results were impacted by our
investment in the growth of BLOCKBUSTER Total Access and by an
extremely tough in-store rental market," said John Antioco,
Blockbuster chairman and chief executive officer. "The first
quarter of 2007 was our highest subscriber growth quarter ever,
surpassing even the initial success of the program and providing
clear testimony to the consumer appeal of our integrated online
and in-store offering, which we believe will allow us to achieve
our year-end goal of well over 4 million subscribers. While
this aggressive growth requires investment this year, we believe
it's the right thing for the business and will contribute to our
future profitability and to the long-term success of the
Company."
Total revenues for the first quarter of 2007 increased primarily
as a result of strong merchandise sales and approximately
US$20 million in revenues associated with the termination of
Blockbuster's Brazilian franchise agreement. Rental revenues
for the period remained essentially flat at US$1.05 billion
reflecting growth in revenues from BLOCKBUSTER Total Access,
which added approximately 800,000 subscribers during the first
quarter of 2007 offsetting a larger than expected decline in the
in-store rental industry.
Operating loss for the first quarter of 2007 totaled
US$18.4 million, compared to operating income of US$32.1 million
for the same period last year. Gross profit decreased US$27.7
million primarily as a result of the decrease in rental gross
margin, which was largely due to purchases of additional rental
product in order to support in-store exchanges resulting from
additional traffic generated by the significant growth of
BLOCKBUSTER Total Access. Total selling, general and
administrative expenses for the first quarter of 2007 increased
US$24.3 million from the first quarter of 2006 largely due to a
higher level of promotional activities, including an incremental
US$35 million mass-media advertising campaign aimed at growing
the BLOCKBUSTER Total Access subscriber base and increasing
customers' awareness of the program.
Cash flow provided by operating activities decreased by
US$185 million from US$41 million for the first quarter of 2006
to a deficit of US$144 million for the first quarter of 2007.
The decrease was driven primarily by a reduction in payables and
accrued expenses and lower net income. This reduction resulted
largely from the company returning to normalized credit terms
with its vendors as compared to the same period last year. As
of April 1, 2007, no balance was outstanding under the company's
revolving credit facility and the company's borrowing capacity
totaled approximately US$295 million.
Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- provides in-home movie and game
entertainment, with more than 9,000 stores throughout the
Americas, Europe, Asia and Australia. The company also operates
in Taiwan, Thailand, and New Zealand.
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services revised its outlook on video
rental retailer Blockbuster Inc. to stable from negative. The
ratings on the Dallas-based company, including the 'B-'
corporate credit rating, were affirmed.
Fitch Ratings has affirmed Blockbuster Inc.'s Issuer default
rating at 'CCC'; Senior secured credit facility rating at
'CCC/RR4'; and Senior subordinated notes rating at 'CC/RR6'.
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the the US and Canadian Retail sector, the
rating agency confirmed its B3 Corporate Family Rating for
Blockbuster Inc.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$500 million
Sr. Sec. Revolving
Credit Facility B3 B1 LGD2 25%
US$100 million
Senior Secured
Term Loan A B3 B1 LGD2 25%
US$550 million
Senior Secured
Term Loan B B3 B1 LGD2 25%
US$300 million
9% Sr. Sub. Notes Caa3 Caa2 LGD5 86%
CIRCUIT ELECTRONIC INDUSTRIES: Stock Trading Still Halted by SET
----------------------------------------------------------------
Trading of Circuit Electronic Industries PCL's securities
remains suspended by the Stock Exchange of Thailand after a
disclaimer of opinion was made by its auditor in its financial
statements.
When the company submitted its financial statement for the year
ended Dec. 31, 2006, the SET found that the auditor had issued a
disclaimer on the financial statement for three consecutive
years. The disclaimer of opinion could mean that the company's
financial status and operating results are not properly
reflected in its financial statements, the SET says.
CIRKIT has then sought to eliminate the causes of its possible
delisting since the SET suspended trading of its securities
until the company can eliminate the causes. SET has announced
additional reasons for delisting the company's securities
according to a disclaimer of opinion or adverse opinion on its
financial statement for three consecutive years starting
April 12, 2007.
Headquartered in Amphoe Uthai Ayutthya, Thailand, Circuit
Electronics Public Co. Limited -- http://www.cei.co.th/--
manufactures and exports various integrated circuit and chip on
board for many kinds of electronic equipment such as mobile
phone, computer, automobile assembly, household electronic
equipment and others. The group operates in the United States
of America, Europe and Asia.
On July 3, 2006, Cirkit was transferred to its original sectors
as it had been in the Rehabco Sector for less than two years.
However, non-compliance -- NC-- and suspension -- SP -- signs
are be posted on their shares until they meet the rehabilitation
requirements.
* * *
As at December 31, 2005, consolidated total liabilities of the
company were at THB3.942 billion as compared with total assets
of THB835.38 million. A shareholders' equity deficit was posted
at THB2.657 billion.
Going Concern Doubt
On April 25, 2006, Miss Sukanya Sutheeprasert, the company's
auditor, raised a significant doubt on the company's ability to
continue as a going concern. She said that the company incurred
a net loss from operations for the year ended on December 31,
2005 amounting approximately THB1.65 billion and as at that date
the company's total liabilities exceeded total assets by THB2.66
billion and is currently awaiting decision from the Central
Bankruptcy Court with regards to its rehabilitation plan.
She added that the ability of the company to continue as a going
concern depends on the success of the repayments according to
the company's Rehabilitation Plan.
About Circuit Electronics Public Co. Ltd.
Headquartered in Amphoe Uthai Ayutthya, Thailand, Circuit
Electronics Public Co. Limited -- http://www.cei.co.th/--
manufactures and exports various integrated circuit and chip on
board for many kinds of electronic equipment such as mobile
phone, computer, automobile assembly, household electronic
equipment and others. The group operates in the United States
of America, Europe and Asia.
On July 3, 2006, Cirkit was transferred to its original sectors
as it had been in the Rehabco Sector for less than two years.
However, non-compliance -- NC-- and suspension -- SP -- signs
are be posted on their shares until they meet the rehabilitation
requirements.
* * *
As at December 31, 2005, consolidated total liabilities of the
company were at THB3.942 billion as compared with total assets
of THB835.38 million. A shareholders' equity deficit was posted
at THB2.657 billion.
Going Concern Doubt
On April 25, 2006, Miss Sukanya Sutheeprasert, the company's
auditor, raised a significant doubt on the company's ability to
continue as a going concern. She said that the company incurred
a net loss from operations for the year ended on December 31,
2005 amounting approximately THB1.65 billion and as at that date
the company's total liabilities exceeded total assets by THB2.66
billion and is currently awaiting decision from the Central
Bankruptcy Court with regards to its rehabilitation plan.
She added that the ability of the company to continue as a going
concern depends on the success of the repayments according to
the company's Rehabilitation Plan.
FEDERAL-MOGUL: Creditors Vote to Accept Fourth Amended Plan
-----------------------------------------------------------
Federal-Mogul Corporation and its debtor-affiliates' balloting
agent, The Garden City Group, Inc., delivered to the United
States Bankruptcy Court for the District of Delaware on May 1,
2007, a summary of the ballots cast on the Debtors' Fourth
Amended Joint Plan of Reorganization.
Jeffrey S. Stein, vice president of The Garden City Group,
discloses that majority of the Voting Classes voted to accept
the Fourth Amended Plan.
Among the Classes that fully support the Plan are:
Voting Class No. of Votes Vote Value
------------ ------------ ----------
1B, FMC - Bank Claims 68 $1,073,788,242
1L, FMC - Affiliate Claims 26 $1,093,536,678
25L, F-M Global
- Affiliate Claims 2 $1,802,613,599
11J, F-M Sealing Systems (Slough)
- Asbestos PI Claims 13,083 $146,663,204
12J, F-M Friction Products
- Asbestos PI Claims 18,064 $222,489,896
13J, F-M Mogul Sealing Systems
(Rochdale) - Asbestos PI 12,700 $141,906,215
83J, Washington Chemical
- Asbestos PI Claims 17,944 $210,069,522
Among the Voting Classes where more than 5% of its members voted
against the Plan are:
Share of
Disapproving
Voting Class Votes Vote Value
------------ ------------ ----------
15H, F-M Bradford - Unsecured Claims 6.81% $3
16H, F-M Camshafts - Unsecured Claims 5.26% 3,412
19H, TBA Industrial - Unsecured Claims 14.28% 1,265
32H, T&N Industries - Unsecured Claims 20.00% 12,826
40H, F-M Bridgewater - Unsecured Claims 6.25% 635
69H, J.W. Roberts - Unsecured Claims 96.61% 407,454
A two-page Ballot Summary for Class 5J-1, broken down by
disease, is available for free at
http://ResearchArchives.com/t/s?1e64
A 63-page list of the Ballot Summary for the other Voting
Classes is available for free at
http://ResearchArchives.com/t/s?1e65
As previously approved by the Court, votes cast to accept or
reject the Third Amended Joint Plan of Reorganization by Classes
A, B, D, F, H, L, M, N and O were counted for purposes of
computing the acceptance or rejection of the Fourth Amended
Plan.
Votes cast to accept or reject the Third Amended Plan by Classes
C, H-UK, I, and J were also counted for purposes of computing
acceptance or rejection of the Fourth Amended Plan except to the
extent that those votes were changed by the claimholders in
connection with the solicitation of the Fourth Amended Plan.
Garden City identified around 415 Ballots that were invalid and
not counted for the approval or rejection of the Plan.
Plan Proponents Seek Protection
from Plan-Related Depositions
The Debtors, the Official Committee of Asbestos Claimants, the
Legal Representative for Future Asbestos Claimants, and Cooper
Industries, LLC, seek a protective order precluding certain
deposition notices served by, among others, Mt. McKinley
Insurance Company and PepsiAmericas, Inc.
The Deposition Notices seek to discover, among others, the
fairness of the Fourth Amended Plan, the Plan's compliance with
the requirements under Section 1129 of the Bankruptcy Code, the
Debtors' assets and liabilities, and facts underlying the Plan.
The Deposition Notices are harassing, unduly burdensome, and a
transparent attempt to delay confirmation of the Plan, the
Debtors complain.
The Plan is insurance neutral and preserves the rights of the
Propounding Parties, the Plan Proponents maintain.
In response, the Propounding Parties assert that they are
parties-in-interest and have standing to conduct the Depositions
pursuant to Sections 1128(b) and 1109(b) of the Bankruptcy Code.
The Propounding Parties ask the Court to compel the Plan
Proponents to provide supplemental responses that fully address
their discovery requests.
Subsequently, at the Court's direction, Mt. McKinley and
PepsiAmericas conferred with the Plan Proponents and the Pneumo
Protected Parties, and agreed to narrow the issues they raised
in their request for complete responses to their Discovery
Requests.
Nevertheless, Mt. McKinley urges the Court to compel the Plan
Proponents to produce all documents and communications
addressing "insurance neutrality."
Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's
largest automotive parts companies with worldwide revenue of
some US$6 billion. In the Asian Pacific region, the company has
operations in Malaysia, Australia, China, India, Japan, Korea,
and Thailand.
The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue
No. 116; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
G STEEL PCL: Elects New Directors & Auditors for 2007
-----------------------------------------------------
G Steel Public Co. Ltd. has elected five members of the Board of
Directors and three Auditors for the year 2007.
The following directors were retired by rotation and reelected:
* Roajanavanich
* Prapanpong Vejjajiva
* Prakard Sataman
* Choochat Kambhu Na Ayudhya
* Preecha Prakobkit
Professors Roajanavanich and Vejjajiva, and Mr. Prakobkit will
serve as members of G Steel's Audit Committee.
The meeting also appointed three Certified Public Accountants
from Ernst & Young Office ltd. as auditors for the financial
year 2007.
* Vissuta Jariyathanakorn
* Rungnapa Lertsuwankul
* Sumalee Reewarabandith
Shareholders also approved the board of directors'
remunerations:
* The Chairman of the Board of Directors will receive a
monthly remuneration of THB100,000 and meeting allowance
of THB10,000 per meeting.
* Each Director will receive a monthly remuneration
amounting to THB30,000 per month and an allowance of
THB5,000 for every meeting.
* The Audit Committee Chairman will receive a position
remuneration of THB20,000 monthly, as well as THB40,000
monthly remuneration together with a meeting allowance of
THB10,000 per meeting.
* Each Audit Committee member will be entitled to a monthly
salary of THB40,000 and an allowance of THB10,000 for
every meeting.
* The Executive, Nomination and Remuneration Committees will
receive a meeting allowance of THB5,000 per meeting.
* The annual auditing fee which includes quarterly reviewing
payments will be THB2.35 million.
Headquartered in Bangkok, G Steel Public Company Ltd --
http://www.g-steel.com/-- produces hot rolled coils (HRC) in
different grades and gauges. G Steel is a stand-alone operating
entity with no related group companies.
* * *
The company is currently listed under the "Non-Performing Group"
sector of the Stock Exchange of Thailand.
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services on June 27, 2006, placed its
ratings on Thailand's G Steel Public Co. Ltd., including the B+
corporate credit rating, on CreditWatch with negative
implications.
The Troubled Company Reporter - Asia Pacific reported that on
June 27, 2006, Moody's Rating Agency announced that it had
placed the B1 corporate family rating and senior unsecured bond
rating of G Steel Public Company Limited on review for possible
downgrade.
KRUNG THAI BANK: New Accounting Standard Might Affect Revenues
--------------------------------------------------------------
The new accounting standard under the Stock Exchange of Thailand
is likely to affect Krung Thai Bank's revenue by THB300 million
to THB400 million, but could be offset by its subsidiaries'
dividend payouts, Darana Chudasri of the Bangkok Post reports,
quoting KTB's senior executive vice president Kittiva
Todhanakasem.
Ms. Todhanakasem also told Darana Chudasri that the bank's
dividend policy on subsidiaries is "based on their financial
needs as well" and the bank needs "to find a balance between
subsidiaries' growth and financial performance of the parent
bank."
Apisak Tantivorawong, KTB's president, said that the income from
its subsidiaries is not a major contribution to the Bank's
revenue.
According to Bangkok Post, the cost method under the new
standard requires firms listed in the SET to book only dividend
payouts from units as revenue. Commercial banks under the prior
"current equity method" are compelled to consolidate
subsidiaries' operating results under the new standard.
Headquartered in Bangkok, Thailand, Krung Thai Bank Public
Company Limited -- http://www.ktb.co.th/-- began its operation
on March 14, 1966, through the merger of business between the
Agricultural Bank Limited and the Provincial Bank Limited with
the Ministry of Finance as its major shareholder.
The Bank provides financial assistance to large and small
business, it also renders financial assistance to other state
enterprises, both business oriented and public utility types.
Currently the bank is operating 511 domestic and 12 foreign
branches and representative offices.
* * *
The Troubled Company Reporter - Asia Pacific reported that Fitch
Ratings, on October 23, 2006, affirmed the C/D individual rating
of Krung Thai Bank and removed them from Rating Watch Negative
on which they were placed on September 20, 2006, following the
military coup. The outlook on their ratings is now stable.
The Troubled Company Reporter - Asia Pacific reported on Oct. 6,
2006 that Moody's Investors Service reinstated the Ba1 rating
previously assigned to Krung Thai Bank Public Company Ltd's
(KTB, D-/Baa1/P-2) Hybrid Tier 1 securities being issued via its
Singapore branch. The rating outlook is stable.
Standard & Poor's Ratings Services assigned on September 11,
2006, its BB+ rating to the proposed perpetual, non-cumulative,
hybrid Tier-I securities by Krung Thai Bank Public Co. Ltd
(BBB/Stable/A-2).
*********
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. Mark Andre Yapching, 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
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*** End of Transmission ***