/raid1/www/Hosts/bankrupt/TCRAP_Public/070515.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
Tuesday, May 15, 2007, Vol. 10, No. 95
Headlines
A U S T R A L I A
AIR CONDITIONING: Members and Creditors to Meet on June 15
ALARMCOM PTY: Members' Final Meeting Set for June 6
AMBASSADOR STEAM: Members to Receive Wind-Up Report on June 8
COLIN TIPPING: Supreme Court Releases Wind-Up Order
EVANS & TATE: To Raise AU$45 Million to Pay ANZ Debt
GREAT AUSTRALIAN: Creditors Opt to Shut Down Business
GRENVILLE DUCE: Creditors' Proofs of Debt Due on May 22
ILLAWARRA SERIES: S&P Rates AU$4.3 Million Class E Notes at BB
IMB LTD: Fitch Assigns BB Rating on AU$4.3 Million Class E Notes
MORANDO BROS: Placed Under Voluntary Liquidation
NEW SOUTH WALES PRE-STRESSING: To Declare Dividend on June 28
SUNLINE INVESTMENTS: Members & Creditors to Meet on June 4
VAPOGI PTY: Members Agree on Voluntary Liquidation
C H I N A & H O N G K O N G
ALL OUR KIDS: Wind-Up Petition Hearing Set for May 30
DRAGON FOREVER: Court to Hear Wind-Up Petition on June 6
EAST RIGHT: Liquidators Quit Posts
EMPEROR PROPERTY: Taps Yu Tin & Ng Cheong as Liquidators
FULLGOLD CORPORATION: Members' Final Meeting Set for May 31
GREENTOWN CHINA: Proposed Bond Issue Cues Moody's Ba2 Rating
LUCKY KINGDOM: Shareholders Decide to Close Business
MAGIC YIELD: Subject to Leung Kam's Wind-Up Petition
MUTUAL FAITH: Appoints Chan Man Gay Janet as Liquidator
NFY NURSERY: To Receive Proofs of Debt Until June 1
PACIFICNET INC: Kabani & Company Raises Going Concern Doubt
POLYPORE INC: S&P Rates Planned US$470MM Credit Facilities at B+
POLYPORE INC: Earns US$6.2 Million in Quarter Ended March 31
UNION GLOBAL: Faces To Chun Yee's Wind-Up Petition
ZTE CORP: DOTC Says Bidding Unnecessary on Broadband Deal
* Research Says China May Face Labor Shortage by 2010
I N D I A
DAIMLERCHRYSLER: Cerberus Takes Majority Interest in Chrysler
GENERAL MOTORS: Ends Two-Year Ban on Equities Trading by Execs
HAYES LEMMERZ: Unit Commences Offer to Repurchase 10-1/2% Notes
PRIDE INTERNATIONAL: Credit Suisse Reiterates Neutral Rating
UCO BANK: Sets Shareholders Annual General Meeting for June 19
UNION BANK OF INDIA: Earns INR2.3 Billion in Qtr. Ended March 31
I N D O N E S I A
ANEKA TAMBANG: Exploration Funds Increase by 7% to IDR12 Billion
ANIXTER INT'L: Earns US$53.6 Million in First Quarter 2007
ANIXTER INT'L: Acquires Total Supply Solutions for US$8 Million
BERLIAN LAJU: Earns US$125 Million From Convertible Bond Sale
INDIKA ENERGI: Moody's Affirms 'B2' Corporate Family Rating
MEDCO ENERGI: Unit Plans to Sell 40% of Equity in IPO
J A P A N
ALL NIPPON AIRWAYS: To Allocate JPY355 Bil. for Capital Spending
MAZDA MOTOR: To Buy Back 1.6% of Shares for JPY1.8 Billion
MAZDA MOTOR: To Declare Year-End Dividend for Fiscal Year 2006
MITSUBISHI MOTORS: To Develop Cheap Car for Emerging Markets
SUMITOMO MITSUI BANKING: 1st Japan Bank to Open Branch in Dubai
K O R E A
HYUNDAI MOTOR: European Unit to Receive EUR111-Million Aid
HYUNDAI MOTOR: Plans to Build New Car Plant in Brazil
HYUNDAI MOTOR: Developing Ultra-Cheap Cars
M A L A Y S I A
DCEIL INT'L: Failure to File Financial Report Cues Reprimand
FA PENINSULAR: Bursa Admits Appeal; Defers May 15 Delisting
PANGLOBAL BERHAD: Unit Ends Joint Venture With Aset Budi
N E W Z E A L A N D
3 WISE MEN: Appoints Whittfield & van Delden as Liquidators
ALLBANX MORTGAGES: Court Sets Wind-Up Hearing for May 21
AUBIN INVESTMENTS: Enters Wind-Up Proceedings
DELGRA TRANSPORT: Creditors' Proofs of Debt Due by May 31
GREAT NORTHERN: Court to Hear Wind-Up Petition on May 21
KRC LOGGING: Wind-Up Petition Hearing Set for May 21
PACIFIC SURGIMED: Court to Hear Liquidation Petition on May 17
SOUTHERN AIR: Commences Liquidation Proceedings
STEWART AND ROGERS: Shareholders Resolve to Shut Down Business
TOMARATA BUILDING: Faces CIR's Wind-Up Petition
P H I L I P P I N E S
IPVG CORP: Posts Third Consecutive Annual Net Loss in 2006
ISM COMMUNICATIONS: One-offs Fuel First Net Income in Four Years
JG SUMMIT: Posts 137% Rise in Net Income to PHP4 Bil. For 2006
MAKATI MEDICAL: Earns PHP223.1 Mil. in 2006
MEDCO HOLDINGS: Books PHP16.94-Million Net Loss in 2006
NEXTSTAGE INC: Dec. 31 Balance Sheet Upside Down by PHP54 Mil.
WARNER MUSIC: Incurs US$27 Million Net Loss in Second Quarter
S I N G A P O R E
CHANG HIN: Proofs of Claim Filing Deadline is May 25
DYNASTY CITY: Pays Dividend to Creditors
TECHMAT HOLDINGS: Proofs of Claim Filing Deadline is May 25
YE MUN BUILDERS: Pays Dividend to Creditors
* BOND PRICING: For the Week 7 May to 11 May 2007
- - - - - - - -
=================
A U S T R A L I A
=================
AIR CONDITIONING: Members and Creditors to Meet on June 15
----------------------------------------------------------
Air Conditioning Equipment (Aust) Pty Limited will hold a
meeting for its members and creditors on June 15, 2007, at
10:00 a.m.
During the meeting, the members and creditors will receive the
liquidators' report about the company's wind-up proceedings and
property disposal.
The company's liquidators are:
Peter G. Burton
Brian H. Allen
c/o Burton Glenn Allen
Chartered Accountants
Level 2, 57 Grosvenor Street
Neutral Bay, New South Wales 2089
Australia
Telephone:(02) 9904 4644
Facsimile:(02) 9904 9644
About Air Conditioning
Air Conditioning Equipment (Aust) Pty Limited is a distributor
of warm air heating and air-conditioning equipment and supplies.
The company is located in New South Wales, Australia.
ALARMCOM PTY: Members' Final Meeting Set for June 6
---------------------------------------------------
A final meeting will be held for the members of Alarmcom Pty Ltd
on June 6, 2007, at 11:00 a.m.
The company's liquidator is:
Geoff Ridgeway
Jenkins Peake
Chartered Accountants
PO Box 1570, Geelong 3220
Australia
Telephone:(03) 5223 1000
Facsimile:(03) 5221 4938
About Alarmcom Pty
Alarmcom Pty Ltd, which is also trading as Alarmcom Leptonics
Pty Ltd, is a distributor of electronic parts and equipments.
The company is located in New South Wales, Australia.
AMBASSADOR STEAM: Members to Receive Wind-Up Report on June 8
-------------------------------------------------------------
The members of Ambassador Steam Cleaning Services Pty Ltd will
have their final meeting on June 8, 2007, at 10:00 a.m., to
receive the liquidator's report about the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Nicholas Craig Malanos
c/o Star Dean-Willcocks
Level 1, 32 Martin Place
Sydney, New South Wales 2000
Australia
Telephone:(02) 9223 2944
Facsimile:(02) 9223 3011
About Ambassador Steam
Ambassador Steam Cleaning Services Pty Ltd is engaged with
carpet and upholstery cleaning. The company is located in New
South Wales, Australia.
COLIN TIPPING: Supreme Court Releases Wind-Up Order
---------------------------------------------------
On April 19, 2007, the Supreme Court of New South Wales entered
an order winding up the operations of Colin Tipping Transport
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
Telephone:(02) 9299 2289; (02) 9299 2239
e-mail: mail@bankrupt.com.au
About Colin Tipping
Located in New South Wales, Australia, Colin Tipping Transport
Pty Ltd is involved with freight transportation arrangement.
EVANS & TATE: To Raise AU$45 Million to Pay ANZ Debt
----------------------------------------------------
Evans & Tate Limited plans to raise AU$45 million by issuing new
shares in an attempt to reduce its burdensome debt, The Sydney
Morning Herald reports.
The plan is pursuant to an agreement that Evans & Tate entered
with its principal creditor, Australia and New Zealand Banking
Group Limited. The company owes the bank AU$100 million.
Pursuant to the ANZ deal, the wine producer will restructure its
balance sheet and use the AU$45-million proceeds to repay the
bank. The remaining debt facilities of about $60 million will
be retained.
The company intends to issue about 409 million shares at 11c
each to ANZ and an unnamed "strategic third-party co-investor"
who will participate equally with ANZ to raise AU$45 million.
Another 20.45 million shares in Evans & Tate, valued at 11c
each, will be issued to ANZ as a placement fee for introducing
the third-party co-investor.
Managing director Martin Johnson, according to the report, said
the deal would provide the company with a sound and solid
financial platform, reducing interest-bearing debt to
sustainable levels and enabling the group to execute strategic
and operational plans.
In February, Evans & Tate reported a first-half net loss of
AU$6.7 million, an improvement on a net loss of AU$44.4 million
in the previous corresponding period.
About Evans & Tate
Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine
company listed on the Australian Stock Exchange. The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.The Troubled Company Reporter - Asia Pacific reported on
September 15, 2006 that Evans & Tate Limited posted a loss of
AU$63.9 million for the 2005-2006 financial year, down 12% on
the corresponding figure for the previous year.
The TCR-AP report also stated that as of June 30, 2006, the
company's balance sheet revealed strained liquidity with
AU$90.930 billion in total current assets available to pay
AU$152.377 billion of total current liabilities coming due
within the next 12 months. Further, Evans & Tate's June 30,
2006 balance sheet also showed total liabilities of AU$207.445
billion exceeding total assets of AU$139.792 billion, resulting
to total shareholders' deficit of AU$67.653 billion.
Going Concern
The same TCR-AP report adds that Evans & Tate says that the
financial report has been prepared on a going concern basis,
noting that as at June 30, 2006, certain matters are considered
pertinent when considering the ability ofthe consolidated entity
to continue as a going concern.The company notes that if it is
unable to continue as a going concern, it will be required to
realize its assets and extinguish its liabilities other than in
the normal course of business and at amounts that may be
different to those stated in the financial report.
GREAT AUSTRALIAN: Creditors Opt to Shut Down Business
-----------------------------------------------------
On April 30, 2007, the creditors of Great Australian Jumper
Company Pty Limited agreed to shut down the company's business.
Brian P. Dunphy was appointed as liquidator.
The Liquidator can be reached at:
Brian P. Dunphy
Suite 8, Freshwater Village Plaza
1-3 Moore Road, Harbord
New South Wales 2096
Australia
About Great Australian
Great Australian Jumper Company Pty Ltd is a distributor of
textile goods. The company is located in New South Wales,
Australia.
GRENVILLE DUCE: Creditors' Proofs of Debt Due on May 22
-------------------------------------------------------
Grenville Duce & Associates Pty Ltd started to liquidate its
business on April 10, 2007.
Creditors are required to file their proofs of debt by May 22,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
John E. Ellis
Level 8, 60 Pitt Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9232 7466
Facsimile:(02) 9251 3973
About Grenville Duce
Grenville Duce & Associates Pty Limited provides management-
consulting services. The company is located in Western
Australia, Australia.
ILLAWARRA SERIES: S&P Rates AU$4.3 Million Class E Notes at BB
--------------------------------------------------------------
Standard & Poor's Rating Services assigned its preliminary
ratings to the term notes to be issued by Illawarra Series 2007-
1 CMBS Trust. The floating-rate notes will be backed by a
portfolio of small-ticket commercial mortgage loans originated
and serviced by IMB Ltd., one of the largest building societies
in Australia.
This is the second publicly rated securitization of small-ticket
commercial mortgage loans by IMB Ltd.
The preliminary ratings are based on information as of May 11,
2007. Subsequent information may result in the assignment of
final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned
Illawarra Series 2007-1 CMBS Trust
Class Rating Amount
----- ------ --------------
A AAA AU$211,000,000
B AA AU$12,2500,000
C A AU$10,2500,000
D BBB AU$8,000,000
E BB AU$4,300,000
IMB LTD: Fitch Assigns BB Rating on AU$4.3 Million Class E Notes
----------------------------------------------------------------
Fitch Ratings has assigned expected ratings to IMB Limited's
sixth transaction, Illawarra Series 2007-1 CMBS Trust small
balance commercial mortgage-backed issue due November 2033, as:
-- AU$211.0 million Class A: 'AAA'
-- AU$12.25m Class B: 'AA'
-- AU$10.25m Class C: 'A'
-- AU$8.0m Class D: 'BBB'
-- AU$4.3m Class E 'BB'
-- AU$4.2m Class F 'not rated'
This is the second issue of notes backed by small balance
commercial non-LMI mortgages from IMB Limited. Notes will be
issued by JP Morgan Trust Australia Limited in its capacity as
trustee of the Illawarra Series 2007-1 CMBS Trust. The
assignment of the final ratings is contingent upon receipt of
final documents conforming to information already received.
"It has been three years since IMB Limited issued a small
balance CMBS transaction in the market. It is also the second
transaction of its type issued in Australia this year. The
agency believes this sector will continue its growth with more
issuances to come over the next few years," said Claire Heaton,
Associate Director, Structured Finance, Sydney.
The collateral pool at the cut-off date consists of 809 loans
with a total portfolio balance of AU$249.82m, a current weighted
average loan-to-valuation ratio of 65.62% and a weighted average
seasoning of 22.63 months. Approximately 46.48% of the loans in
the pool are secured by industrial properties with a further
23.98% secured by retail properties and 23.50% secured by office
properties. Some 70.0% of the pool is interest-only loans and
45.8% are made up of business borrowers.
The expected 'AAA' rating assigned to the Class A notes is based
on:
-- the quality of the collateral;
-- the credit enhancement of 15.6% provided by the
subordination of the class B, C, D, E and F notes
-- the liquidity facility provided by IMB Limited;
-- the interest rate swap arrangements the trustee has
entered into;
-- the standby fixed rate swap provided by ABN AMRO Bank
N.V, rated ('AA-/F1+')
-- IMB Limited's mortgage underwriting and servicing
capabilities; and
-- a sound legal structure.
The expected ratings assigned to other classes of notes is based
on all the strengths except their credit enhancement levels
supporting the Class A notes, but including the credit
enhancement provided by each class of notes' respective
subordinate notes.
MORANDO BROS: Placed Under Voluntary Liquidation
------------------------------------------------
The members of Morando Bros. Pty Limited had a meeting on
April 16, 2007, and decided to voluntarily wind up the company's
operations.
Christopher James Fawcett was appointed as liquidator.
The Liquidator can be reached at:
Christopher James Fawcett
31 Grey Street
Traralgon, Victoria 3844
Australia
About Morando Bros.
Morando Bros Pty Limited is a land subdivider and developer,
except for cemeteries. The company is located in Victoria,
Australia.
NEW SOUTH WALES PRE-STRESSING: To Declare Dividend on June 28
-------------------------------------------------------------
New South Wales Pre-Stressing Pty Ltd, which is in liquidation,
will declare a first and final priority dividend for its
creditors on June 28, 2007.
Creditors are required to file their proofs of debt by May 29,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
R. M. Sutherland
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9233 2111
Facsimile:(02) 9233 2144
About New South Wales Pre-Stressing
New South Wales Pre-Stressing Pty Ltd is a general contractor of
industrial buildings and warehouses. The company is located in
New South Wales, Australia.
SUNLINE INVESTMENTS: Members & Creditors to Meet on June 4
----------------------------------------------------------
The members and creditors of Sunline Investments Pty Ltd will
meet on June 4, 2007, at 11:00 a.m.
During the meeting, the members and creditors will be asked to:
-- receive the liquidator's final receipts and payments from;
-- receive a formal notice of the end of the administration;
and
-- discuss other business that may be considered with the
foregoing.
The company's liquidator is:
Paul Burness
Worrells Solvency & Forensic Accountants
Level 5, 15 Queen Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9613 5511
Facsimile:(03) 9614 3233
Web site: http://www.worrells.net.au
About Sunline Investments
Sunline Investments Pty Ltd, which is also trading as Sportsco
Knox City, operates sporting goods stores and bicycle shops.
The company is located in Victoria, Australia.
VAPOGI PTY: Members Agree on Voluntary Liquidation
--------------------------------------------------
At a general meeting held on April 26, 2007, the members of
Vapogi Pty Limited passed a resolution winding up the company's
operations. M. F. Cooper was appointed as liquidator.
The Liquidator can be reached at:
M. F. Cooper
Frasers Insolvency Advisory
Level 5, 99 Elizabeth Street
Sydney, New South Wales 2000
Australia
About Vapogi Pty
Located in New South Wales, Australia, Vapogi Pty Limited
operates advertising agencies.
================================
C H I N A & H O N G K O N G
================================
ALL OUR KIDS: Wind-Up Petition Hearing Set for May 30
-----------------------------------------------------
A petition to wind up the operations of All Our Kids Hong Kong
Limited will be heard before the High Court of Hong Kong on
May 30, 2007, at 9:30 a.m.
Bart Willem Jozef Bost of Molensingel filed the petition on
March 23, 2007.
Bart Willem's solicitors are:
Alan Lam, Yam & Pe
Unit 17A, 17th Floor
South China Building
1 Wyndham Street
Hong Kong
DRAGON FOREVER: Court to Hear Wind-Up Petition on June 6
--------------------------------------------------------
The High Court of Hong Kong will hear on June 6, 2007, a
petition to wind up the operations of Dragon Forever Limited.
The petition was presented by the Government of the Hong Kong
Special Administrative Region on April 3, 2007.
EAST RIGHT: Liquidators Quit Posts
----------------------------------
Chan Shu Kin and Chow Chi Tong ceased to act as liquidators of
East Right Enterprises Limited on May 11, 2007.
The former Liquidators can be reached at:
Chan Shu Kin
Chow Chi Tong
Tung Ning Building, 9th Floor
249-253 Des Voeux Road
Central, Hong Kong
EMPEROR PROPERTY: Taps Yu Tin & Ng Cheong as Liquidators
--------------------------------------------------------
Yu King Tin and Ng Wai Cheong were appointed as liquidators of
Emperor Property Consultants (Retail) Limited on May 4, 2007.
The Liquidators can be reached at:
Yu King Tin
Ng Wai Cheong
Hopewell Centre, Unit 4407, 44th Floor
183 Queen's Road East
Wan Chai, Hong Kong
FULLGOLD CORPORATION: Members' Final Meeting Set for May 31
-----------------------------------------------------------
The members of Fullgold Corporation Limited will have their
final meeting on May 31, 2007, at 11:00 a.m., to receive the
liquidator's report about the company's wind-up proceedings and
property disposal.
The meeting will be held in Rooms 1801-05 of Hua Qin
International Building at 340 Queen's Road in Central, Hong
Kong.
GREENTOWN CHINA: Proposed Bond Issue Cues Moody's Ba2 Rating
------------------------------------------------------------
On May 11, 2007, Moody's Investors Service affirmed Greentown
China Holdings Ltd's (Greentown) Ba2 corporate family rating and
senior unsecured bond rating. The outlook on both ratings is
stable.
This affirmation follows Greentown's announcement of its plan to
issue approximately RMB2.3 billion of RMB-denominated US dollar
300 million zero coupon convertible bonds. Proceeds from the
bonds will be mainly used for debt refinancing, funding the
development of the company's projects and for general working
capital needs.
"While the convertible bond issuance will improve the company's
liquidity profile, it will also immediately raise its adjusted
gross debt/capitalization to around 60%," says Kaven Tsang,
Moody's lead analyst for Greentown.
"Nevertheless, Moody's expects Greentown will use a substantial
portion of the bond proceeds to repay maturing debts in the
coming year, and also to reduce drawings under construction
finance such that adjusted debt/capitalization will lower to
around 45-50% over the medium term, a level that is consistent
with its Ba-rated property peers," says Mr. Tsang, adding,
"Failure to achieve such a de-leveraging plan will pressure the
rating."
Downgrade pressure will also emerge if Greentown:
1) experiences significant weakening in its sales resulting
from a downturn in China's property market;
2) materially accelerates development projects without a
corresponding increase in cash inflow;
3) executes aggressive land acquisitions and increases its
debt beyond the current business plan; and/or
4) experiences weakening liquidity -- such as consistently
negative operating cash flow -- or its cash-on-hand drops
to below 15 to 20% of total debt.
Greentown China Holdings Ltd is one of the major property
developers in China with a primary focus on Hangzhou and
Zhejiang Province. It currently has land banks in 19 cities in
China and an attributable gross floor area of nine million
square meters. Greentown listed on the Hong Kong Stock Exchange
in July 2006.
LUCKY KINGDOM: Shareholders Decide to Close Business
----------------------------------------------------
At an extraordinary general meeting held on May 2, 2007, the
shareholders of Lucky Kingdom Limited decided to close the
company's business and appoint Chok-Man Yik as the liquidator.
The Liquidator can be reached at:
Chok-Man Yik
Manulife Tower, 15th Floor
169 Electric Road, North Point
Hong Kong
MAGIC YIELD: Subject to Leung Kam's Wind-Up Petition
----------------------------------------------------
On April 11, 2007, Leung Kam Lin filed a petition to wind up the
operations of Magic Yield Limited.
The petition will be heard before the High Court of Hong Kong on
June 13, 2007, at 9:30 a.m.
MUTUAL FAITH: Appoints Chan Man Gay Janet as Liquidator
-------------------------------------------------------
Chan Man Gay Janet was appointed as liquidator of Mutual Faith
Industries Limited on May 2, 2007.
The Liquidator can be reached at:
Chan Man Gay Janet
8A Ilford Court
5 Perth Street
Kowloon, Hong Kong
NFY NURSERY: To Receive Proofs of Debt Until June 1
---------------------------------------------------
NFY Nursery Limited, which is in compulsory liquidation, is
receiving creditors' proofs of debt until June 1, 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 liquidator is:
Stephen Briscoe
Allied Kajima Building, 7th Floor
138 Gloucester Road
Wan Chai, Hong Kong
PACIFICNET INC: Kabani & Company Raises Going Concern Doubt
-----------------------------------------------------------
Kabani & Company, Inc., in Los Angeles, Calif., raised
substantial doubt about PacificNet, Inc.'s ability to continue
as a going concern after auditing the company's financial
statements for the year ended Dec. 31, 2006. The auditor
pointed to the company's net losses, negative cash flow in
operating activities, and accumulated deficit.
For the year ended Dec. 31, 2006, the company posted a net loss
of US$20,093,000 on revenues of US$42,738,000, as compared with
net income of US$2,207,000 on revenues of US$17,186,000 in the
prior year.
The company incurred US$20,509,000 in total operating expenses
for the year ended Dec. 31, 2006, as compared with US$3,947,000
in the prior year. This is attributed to US$5,810,000 in
selling, general and administrative expenses, US$6,173,000 of
provision for doubtful accounts, and US$6,821,000 of goodwill
impairment.
At Dec. 31, 2006, the company's balance sheet showed strained
liquidity with US$17,041,000 in total current assets and
US$17,376,000 in total current liabilities. The company also
reported US$41,882,000 in total assets, US$20,080,000 in total
liabilities, and US$14,928,000 in stockholders' equity.
Outsourcing Services
Revenues for the year ended Dec. 31, 2006, were US$14,146,000, a
year-over-year increase of 5% from US$13,505,000 for the year
ended Dec. 31, 2005. Outsourcing services revenues made up 36.8%
of the company's total revenues for the fourth quarter of the
year primarily due to 13% growth in the call center related
revenues as compared to the same period in 2005. Revenues from
outsourcing services for the fourth quarter of the year were
US$3,833,000, an increase of 5% as compared with US$3,645,000
for the fourth quarter of 2005; or an increase of 3% as compared
with US$3,733,000 for the third quarter of 2006.
During 2006, the outsourcing contract center in Hong Kong was
close to full utilization. Pricing was highly competitive but
demand for outbound calling lists, in-sourcing operators and
sub-contract call center facilities management, for American
Express and MetLife, remained strong. New contracts won during
the year included customer service operation management training
for NanJing Airlines, web-based quality management services and
supplier quality management services for McDonalds Corporation,
and CRM consulting and call center training services for China
Telecom's Xinjiang Branch and China Unicom's Shanghai Branch.
Under the project service agreement, the company will enhance
the CRM service level and telemarketing management capability of
China Unicom's customer service center called the "10010
Information Hotline."
Telecom Value-Added Services
Revenues for the year ended Dec. 31, 2006, were US$1,555,000 as
compared with US$0 for the year ended Dec. 31, 2005. Its
acquisitions in 2006 contributed to the increase in revenues and
made the company a major mobile Internet contents provider in
China. Revenues for the fourth quarter of the year were
US$1,448,000, a sequential increase of 4,520% from US$40,000 for
the third quarter of 2006. Telecom value-added services
revenues made up 13.9% of the company's total revenues for the
fourth quarter of the year.
Products (Telecom and Gaming)
Revenues for the year ended Dec. 31, 2006, were US$25,948,000, a
year-over-year increase of 707% from US$3,216,000 for the year
ended Dec. 31, 2005. Revenues from the products group for the
fourth quarter of the year were US$5,124,000, an increase of
735.9% as compared with US$613,000 for the fourth quarter of
2005; or a decrease of 20% as compared with US$6,411,000 for the
third quarter of 2006. The revenues made up 49.2% of the
company's total revenues for the fourth quarter of 2006.
Other Business
Revenues for other business for the year ended Dec. 31, 2006,
was US$3,652,000, an increase of 356% as compared to US$801,000
for the year ended Dec. 31, 2005. Incremental revenues were
largely derived from new air conditioning installation contracts
won by the company's subcontracting business in Hong Kong.
A full-text copy of the company's 2006 annual report is
available for free at http://ResearchArchives.com/t/s?1f15
About PacificNet
Based in Beijing, China, PacificNet, Inc. - (NasdaqGM: PACT) -
http://www.PacificNet.com-- provides customer relationship
management, mobile Internet, e-commerce and gaming technology in
China. The company's clients include telecom companies, banks,
insurance, travel, marketing and business services companies and
telecom consumers in Greater China, such as China Telecom, China
Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, Motorola,
Nokia, SONY, TCL, Huawei, American Express, Citibank, HSBC, Bank
of China, Bank of East Asia, DBS, TNT, Hong Kong Government, and
hotel-casinos in Macau and Asia. The company employs over 1,500
staff in its various subsidiaries throughout China with its
headquarters in Beijing and Hong Kong, offices in Shenzhen,
Guangzhou, Macau, and branch offices in 28 provinces in China.
The company was incorporated in Delaware.
POLYPORE INC: S&P Rates Planned US$470MM Credit Facilities at B+
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned on May 14, 2007, its
bank loan and recovery ratings to Polypore Inc.'s proposed
first-lien US$100 million revolving credit facility due in 2013
and US$370 million term loans due in 2014.
The 'B+' rating (one notch above the corporate credit rating)
and a recovery rating of '1' indicate the likelihood of full
recovery of principal (100%) in the event of a payment default.
At the same time, Standard & Poor's affirmed its 'B' corporate
credit rating on the company. The outlook is stable.
Proceeds from the facilities will be used to refinance existing
bank facilities, and closing of the financing is contingent on
the successful completion of Polypore International Inc.'s IPO.
Polypore International Inc. is the parent company of Polypore
Inc. Should an IPO be successfully completed, the bank loan
ratings would then be affirmed. As previously indicated,
Standard & Poor's would then reevaluate Polypore's capital
structure, its financial policies as a public company, and its
growth strategy. "Subject to the final terms of the
transaction, we expect that the full redemption of the senior
discount notes resulting in the permanent reduction in financial
leverage would result in the revision of the outlook to
positive," said Standard & Poor's credit analyst Gregoire Buet.
About Polypore
Headquartered in Charlotte, North Carolina, Polypore Inc. --
http://www.polypore.net/-- develops, manufactures and markets
specialized polymer-based microporous membranes used in
separation and filtration processes. The company is a wholly
owned subsidiary of Polypore International Inc.
Polypore's business segments includes Daramic --
http://www.daramic.com-- which manufactures and supplies
battery separators for automotive, industrial, and specialty
applications. Daramic has marketing and sales offices in North
and South America, Europe, Australia, South East Asia and China.
POLYPORE INC: Earns US$6.2 Million in Quarter Ended March 31
------------------------------------------------------------
Polypore Inc. reported results for the quarter ended March 31,
2007, in a Form 10-Q filing with the U.S. Securities and
Exchange Commission.
For the quarter ended March 31, 2007, the company reported net
income of US$6,293,000 compared to net income of US$3,365,000
for the same period in 2006. Net sales for the quarter ended
March 31, 2007, was US$129,781,000 compared to US$115,293,000 a
year ago.
2006 Restructuring Plan
In response to a significant decline in demand for cellulosic
hemodialysis membranes driven by a shift in industry demand
toward synthetic membranes, the company's separations media
segment decided to exit the production of cellulosic membranes
and realign its cost structure at its Wuppertal, Germany
facility.
On Aug. 24, 2006, the company announced a layoff of
approximately 150 employees. Production of cellulosic
hemodialysis membranes ceased on Dec. 27, 2006, and the majority
of the employees were laid off effective Jan. 1, 2007. The
total cost of the plan is expected to be approximately
US$17,040,000, consisting of US$11,403,000 for the employee
layoffs and US$5,637,000 for other costs related to the shutdown
of portions of the Wuppertal facility that will no longer be
used.
The other costs included in the restructuring plan are related
to local regulations surrounding complete or partial shutdowns
of a facility. The company expects to complete these activities
by the end of the second quarter of 2008.
2005 Restructuring Plan
In order to better accommodate customer growth and related
demand for both lead-acid and lithium battery separators in the
greater Asian market, the company's energy storage segment
transferred certain assets from Europe and the United States to
its facilities in Thailand and China. The capacity realignment
plan included the closure of the company's facility in
Feistritz, Austria, the downsizing of its Norderstedt, Germany
facility and the relocation of certain assets from these two
plants to the Company's facilities in Prachinburi, Thailand.
During the three months ended Sept. 30, 2006, the company
completed installation and started production with the assets
relocated to Thailand. Additionally, finishing equipment from
the Company's facility in Charlotte, North Carolina was
relocated to its facility in Shanghai, China. The total cost of
the realignment plan is expected to be approximately
US$8,831,000, of which US$8,798,000 was recognized through
March 31, 2007. The remaining expenses will be recognized in
2007. In addition to the benefit of realigning capacity with
market growth, the Company expects to realize the full impact of
cost savings in 2007.
2004 Restructuring Plan
In an effort to manage costs and in response to the decision of
a customer to outsource its dialyzer production, the company
implemented a number of cost reduction measures in 2004 relating
to the separations media segment, including employee layoffs,
the relocation of certain research and development operations
conducted in a leased facility in Europe to facilities where the
related manufacturing operations are conducted and other cost
reductions. All activities and charges relating to the 2004
Restructuring Plan have been completed as of December 30, 2006.
Acquisition
Effective Jan. 1, 2007, the company purchased from Nippon Sheet
Glass Company, Limited a 60% share in Daramic NSG Tianjin PE
Separator Co., LTD for US$5,181,000. DNPET is a lead-acid
battery separator manufacturing facility located in Tianjin,
China. The acquisition supports the company's strategy of
expanding capacity in the high growth Asia-Pacific region.
A full-text copy of the company's Form 10-Q filed with the U.S.
SEC is available for free at:
http://ResearchArchives.com/t/s?1f0d
About Polypore
Headquartered in Charlotte, North Carolina, Polypore Inc. --
http://www.polypore.net/-- develops, manufactures and markets
specialized polymer-based microporous membranes used in
separation and filtration processes. The company is a wholly
owned subsidiary of Polypore International Inc.
Polypore's business segments includes Daramic --
http://www.daramic.com-- which manufactures and supplies
battery separators for automotive, industrial, and specialty
applications. Daramic has marketing and sales offices in North
and South America, Europe, Australia, South East Asia and China.
UNION GLOBAL: Faces To Chun Yee's Wind-Up Petition
--------------------------------------------------
To Chun Yee filed a wind-up petition against Union Global
Engineering Company Limited on April 2, 2007.
The High Court of Hong Kong will hear the petition on June 6,
2007, at 9:30 a.m.
ZTE CORP: DOTC Says Bidding Unnecessary on Broadband Deal
---------------------------------------------------------
The Philippines' Department of Transportation and Communications
defended the US$329.5-million national broadband network project
it inked with ZTE Corp., saying it was above board despite the
absence of a public bidding, Manila Standard reports.
Ricardo Diaz, transportation director for communications
planning service said the project was part of an executive
agreement between the two governments, and thus bidding is
unnecessary, Roderick T. dela Cruz of Manila Standard relates.
The Philippines, according to Mr. Diaz, signed a tied loan
agreement with the Chinese government through the Eximbank of
China and ZTE Corp., to develop the project, the report added.
The DOTC made the statement in response to an earlier accusation
made by two other proponents of the project, Amsterdam Holdings
Inc. of the Netherlands and Arescom Inc. of the United States.
As reported by the Troubled Company Reporter - Asia Pacific on
May 9, 2007, Amsterdam Holdings and Arescom claimed that ZTE
Corp. and the DOTC "hastily brokered" the national broadband
network project. The two firms said that the department signed
the agreement without the benefit of a competitive bidding
process as required by Republic Act No. 9184, or the Government
Procurement Reform Act.
* * *
Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and
communication terminal equipment. The group operates both in
the domestic and international market.
The Troubled Company Reporter - Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'. The rating
outlook is stable.
* Research Says China May Face Labor Shortage by 2010
-----------------------------------------------------
China's supply of low-cost labor, widely considered to be the
backbone of the nation's strong growth, could start shrinking as
early as 2010, according to a report from the Chinese Academy of
Social Sciences obtained by the China Daily.
One of the biggest reasons for the potential shortage, the China
Daily notes from the report, is that the rural labor force may
not be as large as previously thought. "China is moving from an
era of labor surplus into an era of labor shortage," the report
cautions.
Cai Fang, director of the Institute of Population and Labor
Economics, told the Daily that the number of workers below the
age of 40 in rural areas is only about 52 million in absolute
terms, far less than the estimated 100-150 million.
The China Daily adds that Wang Yiming, deputy director of the
Academy of Macroeconomic Research, under the National
Development and Research Commission, mentioned in his column
that some foreign investors have already moved their businesses
to countries with lower labor costs.
Moreover, the Ministry of Labor and Social Security has also
raised fears that further appreciation of the yuan will result
in millions of jobs being lost, the paper says.
Li Fangchao, writing for the Daily, says that experts believe
that the labor force shortage will be felt in as early as three
years from now, and is expected to trigger a general increase in
wages.
However, one of the architects of the report told the paper that
it doesn't necessarily mean the country will lose the advantage
it enjoys in the international market because of its labor-
intensive products.
Mr. Wang advised that the country's quality of labor has to be
improved and industrial structures urgently upgraded, according
to the Daily.
"It's still too early to say whether China will lose its
competitive edge as labor costs increase. . . . But it can be
said that the country needs to change its growth mode from
relying solely on one production factor (labor) to advancing
production methods," Mr. Cai told the paper.
=========
I N D I A
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DAIMLERCHRYSLER: Cerberus Takes Majority Interest in Chrysler
-------------------------------------------------------------
The Board of Management of DaimlerChrysler AG has decided,
subject to the approval of the Supervisory Board and the
relevant authorities, on the future concept for the Chrysler
Group and the realignment of DaimlerChrysler AG. Completion of
the transaction is subject to the satisfaction of customary
closing conditions, including the receipt of regulatory
approvals and Cerberus financing arrangements.
Structure of the Transaction
An affiliate of private equity firm Cerberus Capital Management,
L.P., New York, will make a capital contribution of US$7.4
billion in return for an 80.1 percent equity interest in the
future new company, Chrysler Holding LLC.
DaimlerChrysler will hold a 19.9 percent equity interest in the
new company. Chrysler Holding LLC will hold 100 percent each of
the future Chrysler Corporation LLC, which produces and sells
Chrysler, Dodge and Jeep(R) vehicles, and the future Chrysler
Financial Services LLC, which provides financial services for
these vehicles in the NAFTA region.
Of the total capital contribution of US$7.4 billion, US$5.0
billion will flow into the industrial business (Chrysler
Corporation LLC) and US$1.05 billion will flow into the
financial services business in order to strengthen the equity
base of both businesses.
DaimlerChrysler will receive the balance of US$ 1.35 billion.
In addition, DaimlerChrysler will grant a loan of US$0.4 billion
to Chrysler Corporation LLC.
According to the agreement, upon the closing of the transaction,
DaimlerChrysler will transfer the industrial business of the
Chrysler Group completely free of debt. Due to the Chrysler
Group's anticipated negative cash flow until closing in
connection with its restructuring plan, the transaction will
give rise to a cash outflow of US$1.6 billion for
DaimlerChrysler. The overall net cash outflow resulting from
the transaction will therefore be US$0.65 billion.
In addition, DaimlerChrysler will have to discharge long-term
liabilities of the Chrysler Group in connection with the
transaction. This will result in prepayment compensation of
approximately US$878 million, to be borne by DaimlerChrysler.
The usual transaction costs will also be incurred.
The Chrysler Group's financial obligations for pension and
healthcare benefits towards its employees and the employees of
the financial services business related to the Chrysler Group
will be retained by the Chrysler companies. The pension plans
are significantly over-funded at present.
Shearman & Sterling serves as DaimlerChrysler AG's lead counsel
in the transaction. Shearman & Sterling attorneys who advised
DaimlerChrysler on the transaction are: Georg F. Thoma (partner,
Corporate/M&A, Dusseldorf); John Madden and Jeffrey Lawrence
(both partners, Corporate/M&A, New York; Kenneth Laverriere
(partner, Executive Compensation, New York); Peter Blessing
(partner, Tax, New York); and Fredric Sosnick (partner,
Corporate, New York).
Effects on Key Figures
The transaction will have these effects on DaimlerChrysler AG:
* In total, current estimates indicate that net profit
according to IFRS in 2007 will be reduced by
US$4.1-5.4 billion;
* Due to the deconsolidation of the Chrysler companies and
the resulting reduction in the balance-sheet total, the
equity ratio of DaimlerChrysler's industrial business is
expected to increase to more than 40 percent by the
beginning of 2008;
* There will be no changes relating to the bonds issued and
guaranteed by DaimlerChrysler AG. In the financial
services business for the Chrysler, Jeep and Dodge brands,
Cerberus will take over the financing previously provided
by DaimlerChrysler AG;
* The 19.9 percent equity interest held by DaimlerChrysler AG
in the new company Chrysler Holding LLC will be included
after closing at equity in the Van, Bus, Others segment;
and
* The closing of the transaction is expected to take place in
the third quarter of 2007.
Commenting on the transaction, Dr. Dieter Zetsche, Chairman of
the Board of Management of DaimlerChrysler AG and Head of the
Mercedes Car Group, said, "We're confident that we've found the
solution that will create the greatest overall value - both for
Daimler and Chrysler. With the transaction, we have created the
right conditions for a new start for Chrysler and Daimler."
Ron Gettelfinger, President of the United Autoworkers said, "The
transaction with Cerberus is in the best interests of our UAW
members, the Chrysler Group and Daimler. We are pleased that
this decision has been made. Because our members and the
management can now focus entirely on the development and
manufacture of quality products for the future of the Chrysler
Group."
John W. Snow, Chairman of Cerberus Capital Management, L.P.,
stated that, "We welcome Chrysler into the Cerberus family of
companies and believe Cerberus will be a good home for Chrysler.
Cerberus believes in the inherent strength of U.S. manufacturing
and of the U.S. auto industry. Most importantly, we believe in
Chrysler."
Mr. Snow continued, "We would like to thank DaimlerChrysler for
their good stewardship of this American icon over the last
decade. We are aware that Chrysler faces significant challenges,
but we are confident that they can and will be overcome. A
private investment firm like Cerberus will provide management
with the opportunity to focus on their long-term plans rather
than the pressures of short-term earnings expectations."
Business Progress
According to the automaker, in nearly 10 years as
DaimlerChrysler, a lot has been done to move the businesses
forward. The synergies possible between Mercedes-Benz and
Chrysler have been fully utilized. Additional potential for
collaboration is limited between two businesses operating in
such different market segments. The strong volatility and
pressure on margins in the Chrysler Group's North American core
market have an increasingly negative impact on DaimlerChrysler's
overall profitability and share-price development.
The Chrysler Group has made substantial progress in recent
years. For example, production hours per vehicle have fallen
from 48 hours in 2001 to just over 30 at present. Quality has
improved by more than 40 percent over the past six years. Since
2002, more than US$10 billion has been invested in new
production facilities and technologies. And with 34 new models
since 2001, Chrysler has one of the youngest product lines in
the industry.
"As a result, Chrysler today is structurally more sound than its
North American based competitors. And with Cerberus as a
partner, Chrysler will have the best chances of utilizing its
full potential," Mr. Zetsche said.
Ongoing Collaboration
The company says that existing projects with the Mercedes Car
Group will be continued, for example in the development of
conventional and alternative drive systems, purchasing, and
sales and financial services outside the NAFTA region.
Furthermore, the company discloses that a Joint Automotive
Council will be established in which representatives of both
sides will assess and decide on the potential of new and current
projects. The Council will be led by board-level members from
each company.
"We very much look forward to our continued cooperation as
business partners, as we want to continue to reap the mutual
benefits of working together. That's one of the reasons why
we're retaining a 19.9 percent equity position in Chrysler," Mr.
Zetsche noted.
New Daimler AG
Due to the new corporate structure, the name of DaimlerChrysler
AG is to be changed to Daimler AG. A decision on this is to be
taken by the shareholders at an Extraordinary Shareholders'
Meeting probably in fall 2007.
The Board of Management of the new company will be reduced to
six members. Tom LaSorda, Eric Ridenour and Tom Sidlik will
leave the Board of Management with the Group's sincere thanks.
There will no longer be a separate board position for
procurement in the new Daimler AG. In the future, all
procurement activities will be directly coordinated between the
divisions. Within the Board of Management, Bodo Uebber will
additionally assume overall responsibility for procurement.
The leadership teams of the Mercedes Car Group, the Truck Group
and Financial Services will remain unchanged, as will the teams
in the vans and buses businesses.
"We've done our homework in our corporate functions and in all
of our divisions. As a result of our strategic review, we have
a well-defined roadmap to lead us into a good future," Mr.
Zetsche relates.
The Mercedes Car Group will generate a return on sales of at
least 7 percent this year, with higher rates to follow in the
coming years.
The Truck Group will achieve an average return on sales of 7
percent over the cycle as of 2008. This represents a return on
net assets of approximately 30 percent.
DaimlerChrysler is also a world leader and profitability
benchmark for buses. And in the vans business, which is
performing very well, the new Sprinter will continue the success
story of its predecessor.
The Financial Services division aims to earn a return on equity
of more than 14 percent.
Growth Perspectives
"We have a strong starting position. We have an above-average
financial power. And our future prospects are promising," Mr.
Zetsche said.
According to Mr. Zetsche, the Group has defined these main areas
for continued growth:
-- Further expansion in the core business, which means in the
traditional segments that are the most profitable and have
the highest growth rates, as well as exploiting new market
opportunities on a regional basis;
-- Continued development of innovative, customer-oriented and
tailor-made services and activities, pursuing
opportunities both up and down the value chain; and
-- Strengthening leadership in sustainable, responsible and
environmentally friendly technologies.
By focusing on these three areas, Daimler's full potential is to
be exploited and enterprise value is to be increased further
through profitable and sustainable growth. Daimler intends to
do this on its own, while continuing to benefit from
opportunities of scale with Chrysler.
About Daimler's goals, Mr. Zetsche said, "We will be the leading
manufacturer of premium products and a provider of premium
services in every market segment we serve worldwide. And we
will pursue our commitment to excellence based on a common
culture, a great heritage of innovation and pioneering
achievements and - with Mercedes-Benz - the strongest automotive
brand in the world."
Tom LaSorda's Statement
Commenting on the sale transaction, Tom LaSorda, Chrysler
Corporation's president and chief executive officer, said in a
press statement that, "We are confident that this transaction
will create a standalone Chrysler that is financially stronger,
with a winning combination of people, industry know-how,
operational expertise and spirit of innovation that will
accelerate the company's recovery, and help us regain our
position as a competitive industry leader.
Cerberus is the right strategic buyer for Chrysler, with a long-
term commitment to Chrysler's growth and success. They are
committed to working constructively with both union leadership
and Chrysler's management team to help Chrysler realize its full
potential. There are no new job cuts planned in connection with
[the] transaction[. . .] .
As a private company, Chrysler will be better positioned to
focus on its long-term plan for recovery, rather than just
short-term results. It will allow Chrysler to renew its focus
on what has always made us special - our passion, creativity and
commitment to delivering exciting Chrysler, Jeep and Dodge
vehicles and quality Mopar parts to our customers, along with
unparalleled customer service.
With strong backing from Cerberus and a continued relationship
with Daimler, Chrysler must demonstrate once and for all that we
can win in this global marketplace. It is ours to win. And
Chrysler has it in its DNA to do just that."
About Cerberus Capital Management
Cerberus Capital Management, L.P., New York, is one of the
largest private investment firms in the world, with
approximately US$23.5 billion under management in funds and
accounts. Founded in 1992, Cerberus currently has significant
investments in more than 50 companies that, in aggregate,
generate more than US$60 billion in annual revenues worldwide.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company's has locations in Canada, Mexico, United States,
Argentina, Brazil, Venezuela, China, India, Indonesia, Japan,
Thailand, Vietnam and Australia.
DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses. Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.
GENERAL MOTORS: Ends Two-Year Ban on Equities Trading by Execs
--------------------------------------------------------------
General Motors Corp. allowed around 20 of its executives to
trade shares through May 31, Reuter reports. The two-year ban,
which took effect as the company implemented a restructuring,
was done to prevent insider trading.
According to Reuters, the company's shares increased to more
than 50% in 2006.
Reuters relates that among the executives who stand to gain from
the lifting of the ban include Chief Executive Rick Wagoner,
Chief Financial Officer Fritz Henderson, and Vice Chairman of
Global Product Development Robert Lutz. These three executives
have been credited in the automaker's turnaround. CEO Wagoner,
who reduced his base salary by 50% in 2005, will receive a
US$1.65 million base salary in 2007.
The automaker however, still doesn't provide earnings forecast
which it had stopped since April 2005.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader for 76 years. GM currently employs about 280,000 people
around the world. GM manufactures its cars and trucks in 33
countries. In 2006, nearly 9.1 million GM cars and trucks were
sold globally under these brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.
* * *
As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006. S&P said the outlook is
negative.
In November 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the US$1.5 billion secured term loan of
General Motors Corp.
HAYES LEMMERZ: Unit Commences Offer to Repurchase 10-1/2% Notes
---------------------------------------------------------------
Hayes Lemmerz International Inc. disclosed that on May 8, 2007,
its indirect subsidiary, HLI Operating Company Inc., commenced a
cash tender offer to repurchase all of its outstanding 10-1/2%
Senior Notes Due 2010 (CUSIP No. 404216AB9), under the terms
and conditions stated in HLI's Offer to Purchase and Consent
Solicitation Statement dated May 8, 2007, and the related Letter
of Transmittal and Consent for Tender Offer.
The tender offer and consent solicitation for the Notes is
conditioned on the satisfaction of certain conditions,
including, but not limited to:
* the valid tender on or prior to the Consent Date of at
least a majority of the aggregate principal amount of Notes
outstanding not owned by HLI or any of its affiliates;
* receipt by the Company upon completion of the Rights
Offering of net cash proceeds sufficient to fund:
i. the purchase of all Notes validly tendered in the tender
offer;
ii. the payment of the fees and expenses related to the
Rights Offering, the tender offer, and the consent
solicitation; and
iii. the amendment or refinancing of the Existing Credit
Facility; and
iv. the execution of the Supplemental Indenture on or
promptly following receipt of the requisite consents.
HLI said that it is also soliciting consents to amend the
indenture governing the Notes. The proceeds of the Company's
previously announced US$180 million equity rights offering will
be used by HLI to repurchase the Notes. Currently, the
aggregate principal amount of Notes outstanding is US$157
million.
HLI further explains that the tender offer and consent
solicitation for the Notes are part of a recapitalization of the
Company and its subsidiaries that includes the Rights Offering
and a proposed new senior secured credit facility in the
aggregate principal amount of US$495 million that will be used,
together with additional indebtedness of approximately US$150
million to be incurred by the company, to refinance debt under
the Company's Amended and Restated Credit Agreement dated as of
April 11, 2005, and related documents, to pay related
transaction costs, fees, and expenses, to provide working
capital, and for other general corporate purposes.
Hayes Lemmerz said that holders who validly tender their Notes
and deliver their consents to the proposed amendments to the
indenture on or prior to 5:00 p.m., New York City time, on
May 21, 2007, unless extended or earlier terminated, will be
eligible to receive the "Total Consideration" for the Notes.
Hayes Lemmerz also states that the "Total Consideration" to be
paid for each US$1,000 of principal amount of Notes validly
tendered and accepted for purchase, subject to the terms and
conditions of the Offer to Purchase, will be paid in cash and
will be based on a fixed spread pricing formula. HLI expects to
determine the Total Consideration on May 21, 2007, based upon a
fixed spread of 50 basis points over the yield on the 3.625%
U.S. Treasury Note due June 30, 2007.
The Total Consideration includes a consent payment equal to
US$30 per US$1,000 in principal amount of Notes, Hayes Lemmerz
noted.
Tendered Notes may not be withdrawn and consents may not be
revoked after the Consent Date. The tender offer will expire at
11:59 p.m., New York City time, on Tuesday, June 5, 2007, unless
extended or earlier terminated by HLI. Holders of Notes who
tender their Notes after the Consent Date and on or before the
expiration date will receive the Tender Offer Consideration,
which is the Total Consideration minus the Consent Payment.
In each case, holders whose Notes are accepted for payment in
the tender offer will receive accrued and unpaid interest in
respect of such purchased Notes from the last interest payment
date to, but not including, the applicable payment date for
Notes purchased in the tender offer.
Concurrently with the tender offer, HLI said that it is
soliciting consents to amend the indenture governing the Notes.
The proposed amendments to the indenture governing the Notes
will, among other things, eliminate substantially all
restrictive covenants, certain related events of default and
conditions on the defeasance of the Notes, and certain
limitations on the ability of HLI and the Company to merge,
consolidate, sell all or substantially all of their assets, and
enter into similar transactions.
In addition, the proposed amendments will permit notice of
redemption of the Notes and the intended redemption thereof to
occur on the same day. On or promptly after receipt of the
requisite consents, HLI and the trustee under the indenture will
execute an amendment to the indenture, the amended provisions of
which will not become operative until the date on which HLI
purchases those Notes validly tendered on or prior to the
Consent Date.
About Hayes Lemmerz International Inc.
Hayes Lemmerz International, headquartered in Northville,
Michigan, is a global supplier of steel and aluminum automotive
and commercial vehicle highway wheels, as well as aluminum
components for brakes, powertrain, suspension, and other
lightweight structural products. Worldwide revenues approximate
US$2.2 billion. The company has 33 facilities worldwide
including India, Brazil and Germany, among others.
* * *
As reported in the Troubled Company Reporter on May 4, 2007,
Moody's Investors Service raised to B3 from Caa1 the corporate
family and probability of default ratings of HLI Operating
Company, Inc., a wholly-owned subsidiary of Hayes Lemmerz
International, and changed the rating outlook to stable from
negative.
Moody's also assigned a B2 (LGD3, 33%) to new senior secured
bank facilities to be issued by HLI Operating Company, a B2
(LGD3, 33%) to a secured term loan and synthetic letter of
credit facility to be issued by HLI Luxembourg S.a.r.l. and a
Caa2 (LDG5, 87%) to new senior unsecured notes also to be issued
by HLI Luxembourg.
PRIDE INTERNATIONAL: Credit Suisse Reiterates Neutral Rating
------------------------------------------------------------
Credit Suisse analyst K. Sill has reaffirmed his "neutral"
rating on Pride International Inc's shares, Newratings.com
reports.
Newratings.com relates that the 12-month target price for Pride
International's shares was increased to US$38 from US$32.
Mr. Sill said in a research note published on May 9 that Pride
International's first quarter 2007 earnings per share from
continuing operations were broadly in-line with the estimates
and the consensus.
Mr. Sill told Newratings.com that the increase in the target
price indicates a change in the base year.
According to Newratings.com, Pride International reported that
its earnings per share guidance for the second quarter, at
US$0.68 to US$0.72, were ahead of the estimates.
The earnings per share estimate for 2007 increased to US$2.90
from US$2.75, while the estimate for 2008 was raised to US$4.15
from US$4.00, Newratings.com states.
Headquartered in Houston, Texas, Pride International, Inc. --
http://www.prideinternational.com/-- is a drilling contractor.
The company provides onshore and offshore drilling and related
services in more than 25 countries, operating a diverse fleet of
278 rigs, including two ultra-deepwater drillships, 12
semisubmersible rigs, 28 jackup rigs, 18 tender-assisted, barge
and platform rigs, and 218 land rigs. The company has worldwide
operations, including in India and Malaysia.
* * *
As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
S&P said the outlook is stable. As of June 30, 2006, Houston,
Texas-based Pride had US$1.01 billion in adjusted debt.
In August 2006, Fitch Ratings raised Pride International's
Issuer Default Rating to 'BB' from 'BB-'. Fitch also raised the
ratings on Pride's senior secured revolving credit facility,
senior unsecured notes and their convertible senior notes.
UCO BANK: Sets Shareholders Annual General Meeting for June 19
--------------------------------------------------------------
UCO Bank Ltd informed the Bombay Stock Exchange that the 4th
Annual General Meeting of the bank's shareholders will be held
on June 19, 2007.
During the meeting, the shareholders are expected to, among
others, discuss, approve and adopt:
-- the bank's balance sheet as at March 31, 2007;
-- the bank's profit and loss account for the year ended
March 31, 2007;
-- the report of the board of directors on the working and
activities of the bank for the year ended on March 31,
2007; and
-- the auditors' report on the Balance Sheet and Accounts.
For the purpose of the Annual Meeting, the Register of Members &
Share Transfer Books of the bank will remain closed from
June 11, 2007 to June 19, 2007.
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. As of May 15, 2007, the bank still carries those
ratings.
UNION BANK OF INDIA: Earns INR2.3 Billion in Qtr. Ended March 31
----------------------------------------------------------------
Union Bank of India posted a net profit of INR2.29 billion for
the quarter ended March 31, 2007, compared with the INR1.45
billion earned in the corresponding quarter in 2006. Total
income rose from INR17.45 billion in the March 2006 quarter to
INR23.37 billion in the latest quarter under review.
A full-text copy of the bank's financial results for the quarter
ended March 31, 2006, is available for free at:
http://ResearchArchives.com/t/s?1f16
The bank's net profit for the year ended March 31, 2007,
increased to INR8.45 billion from INR6.75 billion last year.
Total income increased from INR63.58 billion in the year ended
March 31, 2006, to INR80.69 billion in 2007.
A full-text copy of the bank's financial results for the year
ended March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1f17
The bank's board of directors at its meeting on May 7, proposed
a final dividend of 20% for the financial year 2006-07 in
addition to an interim dividend of 15% paid during the year.
Union Bank of India -- http://www.unionbankofindia.com/-- is
one of the 10 largest Indian banks with total assets of more
than INR800 billion as of March 31, 2006. Union Bank was
incorporated in 1919 at Mumbai and was nationalized during the
first round of bank nationalization in 1969. Until August 2002,
GoI fully owned the bank; currently, GoI has a 55% stake.
The bank has a nationwide presence with a geographically
diversified branch network. As of March 31, 2006, it had 2,082
branches and 145 extension counters.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Oct. 23, 2006, that Fitch Ratings upgraded the Bank's individual
rating to 'C/D' from 'D.'
Moody's Investors Service gave the bank's foreign long-term bank
deposits a Ba2 rating.
=================
I N D O N E S I A
=================
ANEKA TAMBANG: Exploration Funds Increase by 7% to IDR12 Billion
----------------------------------------------------------------
PT Aneka Tambang Tbk's exploration funds increased by 7% to
IDR12 billion compared to IDR11.2 billion in March, Antara News
reports.
According to the report, the company spent IDR8.66 billion and
IDR3.2 billion in April for its nickel and gold operations.
Aneka Tambang's expenses for bauxite exploration in 2006
amounted to IDR813.46 billion.
About Aneka Tambang
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 4,
2006, that Standard & Poor's Ratings Services raised its long-
term corporate credit rating on Indonesian state-owned mining
company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable.
At the same time, Standard & Poor's also raised to 'B+', from
'B', the rating on the senior unsecured notes issued by Antam
Finance Ltd. and guaranteed by Antam.
Moody's Investors Service gave Aneka Tambang a local currency B1
corporate family rating, and a B2 foreign currency bond rating.
ANIXTER INT'L: Earns US$53.6 Million in First Quarter 2007
----------------------------------------------------------
Anixter International Inc. reported results for the quarter
ended March 30, 2007.
First Quarter Highlights
* Sales of US$1.33 billion, including US$33.6 million from
the acquisitions of IMS, Inc. in May 2006 and MFU Holdings
S.p.A. in October 2006, rose 24% compared to sales of
US$1.07 billion in the year ago quarter.
* Quarterly operating income of US$90.4 million reflected a
52% increase from the US$59.6 million reported in the
first quarter of 2006.
* Net income in the quarter, inclusive of income of US$3.4
million or 8 cents per diluted share primarily related to
the settlement of certain income tax audits, increased 71%,
to US$53.6 million, or US$1.27 per diluted share, from
US$31.3 million, or 74 cents per diluted share, in last
year's first quarter.
* Cash flow from operations was US$65.8 million as compared
to US$12.9 million in the year ago quarter.
Three Months Ended
Robert Grubbs, President and CEO, stated, "We are pleased to
note that the same trends that drove record performance in 2006
have remained largely intact through the first few months of the
new year. At this time, all indications are that these trends
will continue for the next few quarters. Assuming strong market
conditions and continued success in our ongoing initiatives to
expand our business, we should be in a position to have another
very good year."
First Quarter Results
For the three-month period ended March 30, 2007, sales of
US$1.33 billion produced net income of US$53.6 million, or
US$1.27 per diluted share. Included in the current year's first
quarter results were sales of US$33.6 million from the
acquisitions of IMS and MFU in May and October 2006,
respectively. Also included in this year's first quarter is
income of US$3.4 million or 8 cents per diluted share primarily
related to the settlement of certain income tax audits. In the
prior year period, sales of US$1.07 billion generated net income
of US$31.3 million, or 74 cents per diluted share. Operating
income in the first quarter increased 52% to US$90.4 million as
compared to US$59.6 million in the year ago quarter. For the
latest quarter, operating margins were 6.8% compared to 5.6% in
the first quarter of 2006.
First Quarter Sales Trends
Commenting on first quarter sales trends, Mr. Grubbs said,
"Sales in the first quarter grew at a year-over-year organic
rate of 19% after adjusting for the IMS and MFU acquisitions as
well as the favorable foreign exchange impact of US$25.9 million
on first quarter 2007 sales. This organic growth clearly
exceeded our target of 8% to 12% as we once again saw very
strong customer demand across a broad mix of end markets." Mr.
Grubbs continued, "The factors driving our organic growth were
consistent with those we have seen during the past year. In the
most recent quarter, we again saw strong larger project
business, particularly as it relates to data center builds in
the enterprise cabling market and energy/natural resources
customers within the electrical wire & cable market. At the
same time, we have continued to experience strong growth in the
security and OEM markets. Lastly, higher copper prices
continued to contribute to our organic growth in the most recent
quarter, with market-based copper prices averaging approximately
US$2.71 per pound during the quarter compared to US$2.25 per
pound in the year ago first quarter and US$3.20 per pound in the
fourth quarter of 2006. We estimate that the higher copper
prices accounted for approximately US$35.0 million of our year-
on-year quarterly increase in sales within the electrical wire &
cable market. Excluding the impact of copper prices, the IMS
and MFU acquisitions and foreign exchange, however, we were
still able to grow company-wide sales by 15% over the prior year
first quarter."
"Specifically, in North America we saw year-over-year sales grow
19% to US$927.0 million in the most recent quarter," commented
Mr. Grubbs. "In addition to strong end-market demand, North
American sales were up US$12.2 million due to the acquisition of
IMS and an estimated US$31.4 million due to higher copper
prices. Foreign exchange had a negative impact of US$1.3
million. In Europe, we saw sales climb by 39% versus the year
ago quarter, of which US$26.4 million was due to exchange rate
differences, US$21.4 million was due to the acquisition of
MFU at the end of October 2006 and US$3.6 million was due to
higher copper prices in the electrical wire & cable business.
Taking out exchange rate differences, acquisitions and copper
effects, sales in Europe still grew organically by 16% as
compared to the year ago quarter."
"In the emerging markets of Latin America and Asia Pacific, we
saw a 34% increase in year-on-year sales, with a favorable
impact of US$0.8 million from currency exchange rate effects
Growth was particularly strong in Asia Pacific, which posted
year-on-year growth of nearly 80%," continued Mr. Grubbs.
First Quarter Operating Results
"As a result of very strong sales growth, first quarter
operating margins were 6.8% as compared to 5.6% in the year ago
period," said Mr. Grubbs. "In North America, the 19% sales
growth drove an improvement in operating leverage, which
generated operating margins of 7.6% compared to 6.0% in the
prior year first quarter. While strong market conditions and
market share gains were the primary drivers of the sales growth
and improved profitability, copper prices also contributed to
first quarter operating results. Specifically, copper prices
added an estimated US$31.4 million to North American electrical
wire & cable sales, which added an estimated US$5.6 million to
first quarter operating income as compared to the year ago
quarter."
Mr. Grubbs added, "In Europe, operating margins in the most
recent quarter were 4.6% as compared to 3.4% in the year ago
quarter. This significant improvement in operating margins
reflects the operating leverage we gained as a result of strong
organic sales growth and the acquisition of MFU. Operating
income in the quarter was, however, negatively impacted by
copper price changes. While year-on-year increases in copper
prices added to sales in Europe, the first quarter short-term
drop in copper prices reduced gross profit and operating income
by US$0.7 million. This reduced operating margins by 28 basis
points. We ere again encouraged by the results in the most
recent quarter as well as the near term outlook for our business
in Europe."
"First quarter operating margins in the emerging markets were
5.7% as compared to 7.4% in the year ago quarter. The year ago
first quarter benefited from a gain of US$2.2 million related to
a favorable sales tax settlement and, after excluding this gain,
the year ago operating margins were 4.3%. Continued sales growth
throughout these markets once again allowed us to achieve better
leveraging of infrastructure costs that resulted in improved
operating margins," added Mr. Grubbs.
Cash Flow and Leverage
"In the first quarter we generated cash from operations of
US$65.8 million as compared to US$12.9 million in the year ago
quarter," said Dennis Letham, Senior Vice President-Finance.
"In anticipation of continued positive cash flow and in order to
improve the effectiveness of our capital structure, we completed
two important capital structure transactions during the quarter.
We repurchased a total of 3 million shares, or approximately
7.6% of our outstanding shares, at an average price of US$54.23
per share. To finance this repurchase the Company sold US$300
million, principal amount, of 1% Convertible Senior Notes, that
mature in 2013."
"As a result of these capital structure transactions our debt-
to-total capital ratio at the end of the first quarter has
increased to 52.5% as compared to 45.7% at the end of 2006. For
the first quarter our weighted-average cost of borrowed capital
was 4.8%, however, compared to 5.2% in the year ago quarter. At
the end of the first quarter, 80% of our total borrowings of
US$950.9 million were fixed, either by the terms of the
borrowing agreements or through hedging arrangements. We also
had US$233.3 million of available, unused credit facilities at
March 30, 2007, which provides us with the resources to support
continued strong organic growth and to pursue other strategic
alternatives, such as acquisitions, in the coming quarters."
Business Outlook
Mr. Grubbs concluded, "2007 is off to a good start as most of
the same underlying trends that generated record performance in
2006 continue to drive the business. If the underlying market
fundamentals remain healthy and we continue to make solid
progress on our strategic initiatives to build our security and
OEM business, add to our supply chain services offering, expand
the geographic presence of our electrical wire & cable business,
and expand our product offering, 2007 has the potential to be
another very strong year." "As we move into the next three
quarters of 2007, we will be measuring our progress against
three comparatively stronger quarters of performance that will
have the effect of slowing the year-over-year reported rates of
sales and earnings growth. Nonetheless, we believe that the
current market conditions will allow us to continue growing
organic sales in line with our stated goal of 8% to 12%. It is
our expectation that sales growth at these rates will enable us
to continue achieving better operating leverage over time."
About Anixter
Anixter International Inc. -- http://www.anixter.com/-- is the
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.
The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5.0 million square feet of space, and has presence in 220
cities in 45 countries, including Indonesia, Australia, China,
Hong Kong, India, Malaysia, New Zealand, the Philippines,
Singapore, Taiwan, and Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 19, 2007, that Moody's Investors Service downgraded Anixter
International Inc.'s corporate family rating to Ba2 from Ba1. In
elated rating action, Moody's lowered the ratings of
Anixter Inc.'s US$200 million guaranteed senior unsecured notes
to Ba1 from Baa3 and Anixter's 3.25% LYON's notes to B1 from
Ba2. The rating outlook was changed to stable from negative.
Fitch Ratings affirmed these ratings for Anixter International
Inc. and its wholly owned operating subsidiary, Anixter Inc.:
Anixter:
-- Issuer Default Rating 'BB+'
-- Senior unsecured debt 'BB-'
AI:
-- Issuer Default Rating 'BB+'
-- Senior unsecured notes 'BB+'
-- Senior unsecured bank credit facility at 'BB+'
Fitch's action affects approximately US$700 million of public
debt securities. The Rating Outlook is Stable.
ANIXTER INT'L: Acquires Total Supply Solutions for US$8 Million
---------------------------------------------------------------
Anixter International Inc. has acquired all of the outstanding
shares of Total Supply Solutions Limited, with an expectation
that it will generate sales of approximately US$22 million. Of
the projected sales, approximately half will be in the U.K.,
with the remainder coming from Poland and the Czech Republic.
Anixter is paying approximately US$8 million in cash, including
the payoff of TSS debt obligations, for all of the outstanding
shares of TSS.
Commenting on the acquisition, Bob Grubbs, President and CEO of
Anixter, said, "We are pleased to have acquired TSS and the
excellent team of people involved at the company. This
acquisition is another step in the geographic expansion of our
OEM Supply business through the addition of important customers
in Eastern Europe." "This acquisition not only expands the
geographic scope of our OEM Supply business, but it also brings
some very complementary customers to our existing base. Given
our stated goal of building on our current strategic platform to
drive future organic sales growth, this acquisition is a nice
addition to our existing business," said Mr. Grubbs.
About Total Supply
Manchester, U.K.-based TSS is a fastener distributor that will
complement Anixter's product offering with a broad array of
valued-added services and inventory management programs to
Original Equipment Manufacturers.
About Anixter
Anixter International Inc. -- http://www.anixter.com/-- is the
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.
The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5.0 million square feet of space, and has presence in 220
cities in 45 countries, including Indonesia, Australia, China,
Hong Kong, India, Malaysia, New Zealand, the Philippines,
Singapore, Taiwan, and Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 19, 2007, that Moody's Investors Service downgraded Anixter
International Inc.'s corporate family rating to Ba2 from Ba1. In
elated rating action, Moody's lowered the ratings of
Anixter Inc.'s US$200 million guaranteed senior unsecured notes
to Ba1 from Baa3 and Anixter's 3.25% LYON's notes to B1 from
Ba2. The rating outlook was changed to stable from negative.
Fitch Ratings affirmed these ratings for Anixter International
Inc. and its wholly owned operating subsidiary, Anixter Inc.:
Anixter:
-- Issuer Default Rating 'BB+'
-- Senior unsecured debt 'BB-'
AI:
-- Issuer Default Rating 'BB+'
-- Senior unsecured notes 'BB+'
-- Senior unsecured bank credit facility at 'BB+'
Fitch's action affects approximately US$700 million of public
debt securities. The Rating Outlook is Stable.
BERLIAN LAJU: Earns US$125 Million From Convertible Bond Sale
-------------------------------------------------------------
PT Berlian Laju Tanker has raised US$125 million due to a
positive and strong demand of its string of convertible bond
issues, as a part of a fundraising program to repay outstanding
debt, Finance Asia reports.
According to the report, the coupon bonds was issued by BLT
Finance but was fully guaranteed by BLT. Deutsche Bank and
JPMorgan were the joint book runners on the CB.
The proceeds from the coupon bond will be used both towards debt
repayment and to acquire new vessels, the report adds.
About Berlian Laju
PT Berlian Laju Tanker Tbk is the largest Indonesian shipping
company, focusing on liquid bulk cargo, with operations
primarily in Asia with some expansion into the Middle East and
Europe. In 2006, BLT achieved revenue of US$335 million, EBITDA
of US$154 million and net income of US$107 million. The
founder, Hadi Surya, has a 48.7% beneficial interest in BLT.
The Troubled Company Reporter - Asia Pacific reported on May 9,
2007, that Fitch Ratings assigned a final rating of 'BB-' to the
US$400 million senior unsecured notes due 2014 issued by BLT
Finance B.V. and guaranteed by PT Berlian Laju Tanker Tbk (BLT,
rated 'BB-' (BB minus)/Stable).
On April 26, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' corporate credit rating to Indonesia's PT Berlian Laju
Tanker Tbk, a liquid bulk cargo shipping company. The outlook
is stable. At the same time, Standard & Poor's assigned its
'B+' issue ratings to both the proposed US$200 million seven-
year senior unsecured notes due 2014 and US$125 million five-
year convertible bond due 2012, to be issued by BLT Finance
B.V., a wholly owned subsidiary of BLT.
INDIKA ENERGI: Moody's Affirms 'B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has affirmed its B2 corporate family
rating of PT Indika Energi. At the same time, Moody's has
affirmed its B2 rating for the 5-year, US$250 million senior
secured bond issued by Indo Integrated Energy BV and guaranteed
by Indika following the completion of the bond issuance. Both
ratings have been removed from their provisional status. The
ratings outlook is stable.
The bond proceeds will be used for refinancing, acquisitions,
investments and for general corporate purpose.
About Indika
Indika is a privately held, integrated energy group based in
Indonesia. Its principal investment is its 46% shareholding in
Kideco, Indonesia's third largest domestic coal producer. In
addition, Indika is involved in Engineering, procurement and
Construction and Operations and Maintenance businesses through
its wholly owned subsidiary Tripatra which has a long
established history of successfully completing such projects in
Indonesia for major international oil companies.
MEDCO ENERGI: Unit Plans to Sell 40% of Equity in IPO
-----------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
April 12, 2007, that PT Medco Energi Internasional Tbk's
subsidiary, Medco Global Plc, plans to hold an Initial Public
Offering in the London exchange by the end of this year.
In an update, the company said it will sell as much as 40% of
equity through an IPO later this year or early in 2008, The Wall
Street Journal reports.
According to the report, the company expects to raise US$400
million from the IPO. MedcoGlobal is valued at US$1 billion.
UBS Bank was appointed as the lead underwriter.
About half of the proceeds from the offering will be used for
more gas-and-oil exploration, while the rest will go toward
strengthening the company's working capital, the Journal notes.
About Medco Energi
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of, and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed
its 'B+' corporate credit rating on Medco Energi. The outlook
remains negative. According to S&P, the negative outlook on
Medco reflects the company's weak financial profile due to its
increased debt burden to fund its aggressive capital
expenditure.
In a TCR-AP report on Aug. 16, 2006, Moody's Investors Service
changed the outlook on Medco Energi's ratings to negative from
stable. The ratings affected by the outlook change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
=========
J A P A N
=========
ALL NIPPON AIRWAYS: To Allocate JPY355 Bil. for Capital Spending
----------------------------------------------------------------
The Nikkei reported that "All Nippon Airways Co Ltd will
allocate a record JPY355 billion for capital spending in the
fiscal year ending next March, about 40% more than it spent in
the last fiscal year and JPY120 billion more than it previously
planned," according to AFX News Limited.
The Nikkei quoted unidentified company sources as saying "ANA
will spend JPY286 billion, or roughly 80% of the total, on
purchasing fuel-efficient aircraft, highlighting its resolve to
focus corporate resources on its core business," AFX News
Limited related.
The report notes that ANA will buy 15 new planes and will sell
11 outdated aircraft to other companies. The airline "currently
spends a sum equivalent to slightly less than 20% of its annual
revenue to procure jet fuel," the report added.
About All Nippon Airways
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded in
1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business,
including passenger boarding procedures and loading of
hand baggage.
The airline flies to all key Asian destinations, the United
States and Canada, France, the United Kingdom and key European
countries.
* * *
Moody's Investors Service, on April 19, 2007, placed the Ba1
senior unsecured debt ratings of All Nippon Airways Co., Ltd.
under review for possible upgrade. The rating action reflects
ANA's high and stable profitability despite the ongoing price
hikes of aircraft fuel, as well as Moody's view that the
company's financial flexibility is likely to be further improved
by its asset disposition related to its hotel business.
As reported in the Troubled Company Reporter - Asia Pacific on
June 13, 2006, Fitch Ratings said the credit quality gap between
Japan's top two airlines continues to widen with All Nippon
Airways Co. Limited -- rated BB+/Stable -- benefiting from
market improvements, while its rival, Japan Airlines Corporation
-- rated BB-/Stable -- continues to be grounded by internal
woes.
MAZDA MOTOR: To Buy Back 1.6% of Shares for JPY1.8 Billion
----------------------------------------------------------
On May 11, 2007, Mazda Motor Corporation's board of directors
decided to submit a bill for the purchase of its own shares.
The board also submitted a bill for the issuance of subscription
rights for new shares as stock options to certain directors,
executive officers and employees of Mazda and certain directors
of consolidated companies, at the company's 141st Ordinary
General Meeting of Shareholders to be held on June 26, 2007.
From June 27, 2007 to June 26, 2008, the company plans to buy up
to 2,300,000 common shares for up to JPY1.8 billion.
As to the issuance of subscription rights for new shares as
stock option, Representative Director and President Hisakazu
Imaki explained: "We would like to increase Mazda's corporate
value by improving the motivation and morale of directors and
employees with regard to their job performance and by carrying
out continuous management reform through the qualification of
subscription rights for new shares to certain directors,
executive officers and employees of Mazda and certain directors
of consolidated companies. The subscription rights for new
shares are granted to Mazda directors as stock options and
deemed as compensation."
The number of shares intended for subscription rights is up to
2,300,000 shares. The number of subscription rights for new
shares to be issued is up to 2,300 subscription rights.
Approximately 1,000 common shares per subscription right for new
shares will be granted upon exercise of a subscription right for
new shares. The total amount to be paid for a subscription
right is price per share times the number of shares to be
purchased. The period during which subscription rights for new
shares are exercisable is from July 1, 2009, to June 30, 2012.
About Mazda Motors
Headquartered in Hiroshima Prefecture, Mazda Motor Corporation
-- http://www.mazda.co.jp-- together with its subsidiaries and
associates, is primarily involved in the manufacture and
distribution of automobiles. The company manufactures passenger
cars and commercial vehicles. Mazda Motor distributes its
products in both domestic and overseas markets. The company has
58 subsidiaries. It has overseas operations in the United
States, Canada, Mexico, Germany, Belgium, France, the United
Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia,
Columbia, New Zealand, Thailand, Indonesia and China. The
Company has a global network.
* * *
The Troubled Company Reporter-Asia Pacific reported on April 27,
2007, that Standard & Poor's Ratings Services raised Mazda Motor
Corp. long-term corporate credit rating and the company's long-
term senior unsecured debt as:
* Corporate Credit Rating: BB /Stable/
* Company's Long-term Senior Unsecured Debt: BB+
S&P's rating actions reflect Mazda's improved operational and
financial performance, and financial risk profile. Mazda's
operating and financial performance has been improving over the
past several years due to the success of new products following
a shift in strategy. The company continued to improve operating
and financial performance in the nine months ended Dec. 31,
2006, owing to an improved sales mix and favorable foreign
exchange rates. Although the EBITDA margin of about 6% remains
lower than most of its Japanese peers, profitability is steadily
improving. Mazda is now focusing on certain segments instead of
attempting to compete as a full-line producer. The company
also has excellent product engineering capabilities.
MAZDA MOTOR: To Declare Year-End Dividend for Fiscal Year 2006
--------------------------------------------------------------
A resolution was passed at a meeting of Mazda Motor
Corporation's Board of Directors held on May 11, 2007, to submit
a bill for the payment of a year-end dividend for which the
record date is March 31, 2007.
The bill will be taken up at the company's 141st Ordinary
General Meeting of Shareholders scheduled for June 26, 2007.
Most Recent
Dividend FY2005 Dividend
Forecast (Year ended
Amount (4/27/2007) March 31, 2006)
------ ----------- ---------------
Record Date 3/31/2007 3/31/2007 3/31/2006
Dividend
Per Share JPY6 JPY6 JPY6
Total Amount
of Dividend JPY8.4 billion -- JPY7 billion
Effective Date 6/27/2007 -- 6/28/2006
Source of
Dividend Retained -- Retained
Earnings Earnings
* Breakdown of Annual Dividend
Dividend per Share
------------------
Record Date Interim Year-end Full-Year
----------- ------------------------------
FY2006 Dividend to be paid -- JPY6 JPY6
FY2005 Dividend Paid
(Year ended March 31, 2006) -- JPY5 JPY5
About Mazda Motors
Headquartered in Hiroshima Prefecture, Mazda Motor Corporation
-- http://www.mazda.co.jp-- together with its subsidiaries and
associates, is primarily involved in the manufacture and
distribution of automobiles. The company manufactures passenger
cars and commercial vehicles. Mazda Motor distributes its
products in both domestic and overseas markets. The company has
58 subsidiaries. It has overseas operations in the United
States, Canada, Mexico, Germany, Belgium, France, the United
Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia,
Columbia, New Zealand, Thailand, Indonesia and China. The
Company has a global network.
* * *
The Troubled Company Reporter-Asia Pacific reported on April 27,
2007, that Standard & Poor's Ratings Services raised Mazda Motor
Corp. long-term corporate credit rating and the company's long-
term senior unsecured debt as:
* Corporate Credit Rating: BB /Stable/
* Company's Long-term Senior Unsecured Debt: BB+
S&P's rating actions reflect Mazda's improved operational and
financial performance, and financial risk profile. Mazda's
operating and financial performance has been improving over the
past several years due to the success of new products following
a shift in strategy. The company continued to improve operating
and financial performance in the nine months ended Dec. 31,
2006, owing to an improved sales mix and favorable foreign
exchange rates. Although the EBITDA margin of about 6% remains
lower than most of its Japanese peers, profitability is steadily
improving. Mazda is now focusing on certain segments instead of
attempting to compete as a full-line producer. The company
also has excellent product engineering capabilities.
MITSUBISHI MOTORS: To Develop Cheap Car for Emerging Markets
------------------------------------------------------------
Mitsubishi Motors Corp. plans to develop a low-priced car for
emerging markets based on the fuel-efficient Colt, the Nikkei
business daily reported, according to Reuters.
The Nikkei learned about the plan during its interview with
Osamu Masuko, Mitsubishi Motors' president on Saturday.
Reuters relates that the Nikkei pegged the price of the new car
at around JPY1 million or $8,315. The report notes that Mr.
Masuko didn't say when it would launch the car.
According to the Nikkei, Reuters adds, Mr. Masuko said the
company is preparing to build a new plant in Russia.
About Mitsubishi Motors
Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.
The company also operates consumer-financing services and
provides this to its customer base. MMC adopted the "Mitsubishi
Motors Revitalization Plan" on Jan. 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company. The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."
The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia. Its
products are sold in over 170 countries.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Standard & Poor's Ratings Services raised its
long-term corporate credit and senior unsecured debt ratings on
Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in
the company's revitalization efforts and reduced downside risks
in its earnings and financial profile. S&P said the outlook on
the long-term rating is stable.
As reported by the TCR-AP on Aug. 4, 2006, Rating & Investment
Information Inc. upgraded its issuer rating on Mitsubishi Motors
Corp. from CCC+ to B with a stable outlook and its commercial
paper rating from C to B, and has removed the rating from its
monitor at the same time.
In July 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors' senior debts to BB- from B-,
with a stable outlook. The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.
SUMITOMO MITSUI BANKING: 1st Japan Bank to Open Branch in Dubai
---------------------------------------------------------------
Minoru Nagata, writing for The Asahi Shimbun, reported that
Dubai is attracting a lot of investors, including Japanese banks
that are scurrying to open branch offices there.
According to Mr. Nagata, "Sumitomo Mitsui Banking Corp. became
the first Japanese bank to open a branch in Dubai this March.
Mizuho Corporate Bank and the Bank of Tokyo-Mitsubishi UFJ are
also considering following suit. Daiwa Securities SMBC Co. also
opened a branch in April."
Mr. Nagata related that according to the Japan External Trade
Organization, "216 Japanese companies had made forays into the
United Arab Emirates as of June 2006, an increase of 78 during
the past four years."
About Sumitomo Mitsui Banking Corporation
Headquartered at Chiyoda-ku, in Tokyo, Japan, Sumitomo Mitsui
Banking Corporation -- http://www.smbc.co.jp/-- provides
commercial banking services including deposits, loans, foreign
exchange transactions, and correspondents banking services
around the world. The bank also provides leasing, securities
brokerages, credit cards, consumer loans, venture capital, and
mortgage securitization services.
On May 10, 2007, the Troubled Company Reporter - Asia Pacific
reported that Moody's Investors Service upgraded these ratings
of Sumitomo Mitsui Banking Corporation:
-- bank financial strength rating to C from D+;
-- long-term and short term deposit ratings to Aa2/P-1 from
A1/P-1;
-- long-term issuer and senior unsecured debt rating to Aa2
from A1; and
-- senior and junior subordinated debt ratings to Aa3 from
A2.
A TCR-AP report on Oct. 24, 2006, stated that Fitch Ratings
upgraded Sumitomo Mitsui's Individual Rating to 'C' from 'C/D'.
=========
K O R E A
=========
HYUNDAI MOTOR: European Unit to Receive EUR111-Million Aid
----------------------------------------------------------
Hyundai Motor Company's unit Hyundai Motor Manufacturing Czech
will receive EUR111 million from the Czech state to build a new
car manufacturing plant because the European Commission already
approved the proposed support, Reuters reports.
According to the report, the European Commission regulates what
aid may be granted by national governments and does so only
under strict conditions. In this case, Czech's aid consisted of
a cash grant and a transfer of land at a reduced price.
Reuters relates that the planned manufacturing plant will have a
capacity of 200,000 passenger cars a year and is expected to
expand the capacity to 300,000 cars by 2012. The company also
aims to create 4,400 new jobs by 2011, the report adds.
About Hyundai Motor
Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
United States since 1986, but it only started selling its heavy
trucks stateside in 1998. Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles. The Company re-established itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%. The Company also manufactures machine
tools for factory automation and material- handling equipment.
The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.
Chairman Chung has been indicted early in May 2006 for fraud
charges.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.
On Feb. 5, 2007, a South Korean court handed down the sentence
to Mr. Chung for illegally raising US$110 million in slush funds
and bribing government officials. Mr. Chung has been released
on bond and continues to run the auto conglomerate.
HYUNDAI MOTOR: Plans to Build New Car Plant in Brazil
-----------------------------------------------------
Hyundai Motor Company plans to build another car factory in
Brazil, with annual capacity of 100,000 vehicles, as part of the
company's overseas expansion plans, Reuters reports. The
automaker had just completed its first car assembly plant in
Latin America last month, Reuters notes.
Analysts told Reuters that overseas units are vital for
Hyundai's growth but some analysts are worried about the
expensive costs of the expansion, the report adds.
About Hyundai Motor
Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
United States since 1986, but it only started selling its heavy
trucks stateside in 1998. Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles. The Company re-established itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%. The Company also manufactures machine
tools for factory automation and material- handling equipment.
The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.
Chairman Chung has been indicted early in May 2006 for fraud
charges.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.
On Feb. 5, 2007, a South Korean court handed down the sentence
to Mr. Chung for illegally raising US$110 million in slush funds
and bribing government officials. Mr. Chung has been released
on bond and continues to run the auto conglomerate.
HYUNDAI MOTOR: Developing Ultra-Cheap Cars
------------------------------------------
Hyundai Motor Company is developing an "ultra-cheap" car in line
with the international trend of building such low-cost models,
Antara News reports.
According to the report, analysts said that Hyundai needed to
sell premium models to boost profits since the company is
struggling with high inventory and a stronger Korean currency.
The company's foreign rivals like Renault is also developing
low-cost cars priced below US$10,000, the report adds.
About Hyundai Motor
Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
United States since 1986, but it only started selling its heavy
trucks stateside in 1998. Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles. The Company re-established itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%. The Company also manufactures machine
tools for factory automation and material- handling equipment.
The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.
Chairman Chung has been indicted early in May 2006 for fraud
charges.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.
On Feb. 5, 2007, a South Korean court handed down the sentence
to Mr. Chung for illegally raising US$110 million in slush funds
and bribing government officials. Mr. Chung has been released
on bond and continues to run the auto conglomerate.
===============
M A L A Y S I A
===============
DCEIL INT'L: Failure to File Financial Report Cues Reprimand
------------------------------------------------------------
The Bursa Malaysia Securities Berhad on May 9, 2007, publicly
reprimanded DCEIL International Berhad for failure to timely
submit its quarterly report for the financial period ended
December 30, 2006.
The bourse directs the company to submit the quarterly report no
later than June 9, 2007.
In addition, the bourse took enforcement action against these
directors in respect of DCEIL's breach in listing rules:
Director Designation Penalty
-------- ----------- -------
Dato Dr Tan Seng An Executive Public reprimand and
Chairman fine of MYR750 per
market day delay (up
to a maximum of 3
months from the due
date of submission of
the QR December 2006)
Datin Bee Lian Executive Public reprimand and
Director fine of MYR750 per
market day delay (up
to a maximum of 3
months from the due
date of submission of
the QR December 2006)
* * *
DCEIL International Bhd is principally involved in trading,
distribution and installation of ceilings and partitioning
works. Its other activities include manufacturing of toilet
partitions and investment holding. The Group operates in
Malaysia and other foreign countries.
DCEIL is classified under Practice Note 1 and Practice Note 17
of the Bursa Malaysia Securities Berhad's Listing Requirements,
and is therefore required to implement a plan to regularize its
finances.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 7, 2006, Wang & Co, the external auditor of DCEIL, raised
doubt on the company's ability to continue as a going concern
after auditing the company's financial statements for the fiscal
year ended June 30, 2006. The auditor pointed to the bankers'
demands for the company to settle its outstanding loans.
DCEIL's balance sheet as of end-September 2006 reflected total
assets of MYR139.93 million and total liabilities of MYR146.6
million, resulting in a shareholders' equity deficit of MYR6.66
million.
FA PENINSULAR: Bursa Admits Appeal; Defers May 15 Delisting
-----------------------------------------------------------
FA Peninsular Bhd appealed the Bursa Malaysia Securities Bhd's
decision to delist its securities today from the bourse's
official list.
With the company's appeal, Bursa Securities deferred the
securities delisting pending the decision on the appeal.
On May, 7, 2007, the Troubled Company Reporter - Asia Pacific
reported that the bourse decided to delist FA Peninsular's
securities after the company failed to make its reform plan
requisite announcement on April 30, 2007, as required under the
extended timeframe granted by Bursa Securities.
The bourse, however, said that the deferment pending the appeal
is a stay in respect of the delisting and it is not to be
equated to a variation or a revision of the decision to delist.
The decision remains unless reversed on appeal.
* * *
FA Peninsular's principal activities are processing and trading
cocoa. Other activity includes stock and share-broking.
Operations are carried out mainly in Malaysia.
The company is currently listed in the Amended PN-17 list of
companies in the Bursa Malaysia Securities Bhd and is required
to submit a regularization plan to stabilize its financial and
operational status.
FA Peninsular Bhd's unaudited balance sheet as of Dec. 31, 2006,
went upside down with total assets of MYR15.86 million and total
liabilities of MYR22.08 million, resulting in a shareholders'
deficit of MYR6.22 million.
PANGLOBAL BERHAD: Unit Ends Joint Venture With Aset Budi
--------------------------------------------------------
PanGlobal Bhd's wholly owned subsidiary, PanGlobal Services Sdn
Bhd, mutually terminated its joint venture agreement with Aset
Budi Sdn Bhd due to delays in obtaining a Development Order to
proceed with a joint development project.
In a disclosure with the Bursa Malaysia Securities Bhd, the
company said that on May 11, 2007, both parties entered into a
deed of revocation and release from an agreement to develop a
piece of land under its joint venture company, Zahari Holdings
Sdn Bhd.
With the termination of the agreement, Aset Budi has agreed to
refund PanGlobal Services MYR1,300,000 as a deposit and part
payment for the shares in Zahari Holdings. In addition, the
joint venture company has agreed to refund MYR581,839 paid by
PanGlobal's unit as initial development project expenditure.
"The deed of revocation and release agreement will not have any
material effect on the earnings and net tangible assets of PGB
Group for the financial year ending December 31, 2007," the
company disclosed.
In a separate disclosure, PanGlobal told the bourse that its
wholly owned unit, Panglobal Corporate Services Sdn Bhd, on
May 4, 2007, changed its name to Pacific Regency Hotels &
Resorts Sdn Bhd.
* * *
Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.
PanGlobal is listed under Practice Note 4/2001. The Bursa
Malaysia Securities has required the company to regularize its
financial condition, curb huge losses and settle debts in order
to continue operating. The company has already submitted a
Proposed Restructuring Scheme to the Securities Commission on
Sept. 9, 2005. On April 6, 2006, the Securities Commission
approved PanGlobal Berhad's proposed restructuring scheme.
Panglobal's balance sheet as of Dec. 31, 2006, went upside down
with total assets of MYR680.26 million and total liabilities of
MYR1.06 billion, resulting in a shareholders' deficit of
MYR388.67 million.
====================
N E W Z E A L A N D
====================
3 WISE MEN: Appoints Whittfield & van Delden as Liquidators
-----------------------------------------------------------
On April 24, 2007, the shareholders of 3 Wise Men Entertainment
Ltd. appointed John Trevor Whittfield and Boris van Delden as
the company's liquidators.
Messrs. Whittfield and van Delden fixed June 1, 2007, as the
last day for creditors to prove their debts.
The Liquidators can be reached at:
John Trevor Whittfield
Boris van Delden
McDonald Vague
PO Box 6092
Wellesley Street
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
ALLBANX MORTGAGES: Court Sets Wind-Up Hearing for May 21
--------------------------------------------------------
The High Court of Whangarei will hear a wind-up petition against
Allbanx Mortgages Ltd. on May 21, 2007.
The petition was filed by the Commissioner of Inland Revenue on
April 11, 2007.
The CIR's solicitor is:
M. B. Smith
c/o P. J. Smith
Marsden Woods Inskip & Smith
122 Bank Street
PO Box 146
Whangarei
New Zealand
AUBIN INVESTMENTS: Enters Wind-Up Proceedings
---------------------------------------------
On April 12, 2007, Aubin Investments Ltd. entered wind-up
proceedings.
Iain Andrew Nellies and Paul William Gerrard Jenkins were
appointed as liquidators.
The Liquidators can be reached at:
Iain Andrew Nellies
Paul William Gerrard Jenkins
c/o Insolvency Management Limited
Burns House, Level 3
10 George Street
PO Box 1058, Dunedin
New Zealand
DELGRA TRANSPORT: Creditors' Proofs of Debt Due by May 31
---------------------------------------------------------
On April 30, 2007, Malcolm Grant Hollis and John Howard Ross
Fisk were appointed as liquidators of Delgra Transport Ltd.
Messrs. Hollis and Fisk require the company's creditors to prove
their debts by May 31, 2007.
The Liquidators can be reached at:
Malcolm Grant Hollis
John Howard Ross Fisk
c/o PricewaterhouseCoopers
119 Armagh Street
PO Box 13244, Christchurch
New Zealand
Telephone:(03) 374 3034
Facsimile:(03) 374 3001
GREAT NORTHERN: Court to Hear Wind-Up Petition on May 21
--------------------------------------------------------
The Commissioner of Inland Revenue filed a wind-up petition
against Great Northern Enterprises Ltd. on April 11, 2007.
The wind-up petition will be heard before the High Court of
Whangarei on May 21, 2007, at 10:45 a.m.
The CIR's solicitor is:
M. B. Smith
c/o P. J. Smith
Marsden Woods Inskip & Smith
122 Bank Street
PO Box 146, Whangarei
New Zealand
KRC LOGGING: Wind-Up Petition Hearing Set for May 21
----------------------------------------------------
A petition to wind up the operations of KRC Logging Ltd. will be
heard before the High Court of Masterton on May 21, 2007, at
10:00 a.m.
The petition was filed by Accident Compensation Corporation on
March 23, 2007.
Accident Compensation's solicitor is:
Dianne S. Lester
Maude & Miller
McDonald's Building, 2nd Floor
Cobham Court
PO Box 50555, Porirua City
New Zealand
PACIFIC SURGIMED: Court to Hear Liquidation Petition on May 17
--------------------------------------------------------------
On Feb. 14, 2007, Readers Digest (Australia) Pty Limited filed
an application to wind up the operations of Pacific Surgimed
International NZ Ltd.
The petition will be heard before the High Court of Auckland on
May 17, 2007, at 10:45 a.m.
Readers Digest's solicitor is:
Roger A. McL. Fraser
Receivables Management (NZ) Limited
7 City Road, Level 8
Auckland, New Zealand
Facsimile:(09) 919 3697
SOUTHERN AIR: Commences Liquidation Proceedings
-----------------------------------------------
Southern Air Support Ltd. commenced liquidation proceedings on
April 11, 2007.
Iain Andrew Nellies and Wayne John Deuchrass were appointed as
liquidators.
The Liquidators can be reached at:
Iain Andrew Nellies
Wayne John Deuchrass
c/o Insolvency Management Limited
148 Victoria Street, Level 1
PO Box 13401, Christchurch
New Zealand
STEWART AND ROGERS: Shareholders Resolve to Shut Down Business
--------------------------------------------------------------
On April 27, 2007, the shareholders of Stewart and Rogers
Electrical (Auckland) Ltd. agreed to shut down the company's
business and appoint Grant Bruce Reynolds as liquidator.
The Liquidator can be reached at:
Grant Bruce Reynolds
Reynolds & Associates Limited
PO Box 259059, Burswood
East Tamaki, Auckland
New Zealand
Telephone:(09) 577 0162
Facsimile:(09) 576 5503
TOMARATA BUILDING: Faces CIR's Wind-Up Petition
-----------------------------------------------
On March 19, 2007, the Commissioner of Inland Revenue filed a
wind-up petition against Tomarata Building Company Ltd.
The petition will be heard before the High Court of Whangarei on
May 21, 2007, at 10:45 a.m.
The CIR's solicitor is:
Simon John Eisdell Moore
Meredith Connell
Forsyth Barr Tower, Level 17
55-65 Shortland Street
PO Box 2213, Auckland
New Zealand
Telephone:(09) 336 7556
=====================
P H I L I P P I N E S
=====================
IPVG CORP: Posts Third Consecutive Annual Net Loss in 2006
----------------------------------------------------------
IPVG Corporation reported a net loss of PHP102.1 million for the
year ended Dec. 31, 2006, the company's third consecutive annual
net loss after PHP43.0 million and PHP6.2 million net losses for
in 2005 and 2004, respectively.
Total consolidated revenues for 2006 increased by 713% from
PHP29.8 million to PHP242.7 million or a total increase of
PHP212.9 million. This substantial increase was attributed to
the commencement of commercial operations of Egames and the full
year operations of IP Converge. The average monthly revenue for
the company in 2006 is PHP20.2 million as compared to PHP4.98
million in 2005, or an increase of about 4 times.
Consolidated expenses, likewise, increased by 269% from PHP58.3
million in 2005 to PHP215.3 million in 2006, an increase of
PHP157.0 million.
A copy of the company's financial statements for the year ended
Dec. 31, 2006, is available for free at:
http://bankrupt.com/misc/IPVG2006.pdf
IPVG Corporation -- http://www.ipvg.com/-- is engaged in
the information technology and communications business with
interests in Information Technology and Telecommunications; On-
line Gaming; and Business Process Outsourcing.
IPVG reaches its customers through collaboration with
international corporations that have proven to be market leaders
in their respective geographic markets and industries. Its
current partners include Fortune 1000 companies listed on the
New York Stock Exchange, such as Pacific Century Cyberworks Inc.
and IDT. The company can offer established product and
proprietary business knowledge to the Philippine market by
pairing each of its business subsidiaries with strategic
partners.
ISM COMMUNICATIONS: One-offs Fuel First Net Income in Four Years
----------------------------------------------------------------
ISM Communications Corporation reported a net income of
PHP455.56 million for the year ended Dec. 31, 2006, a turn
around from the PHP13.42 million reported in 2005.
The company, however, still suffered an operating loss of
PHP14.81 million, almost tripling its operating loss of PHP5.20
million a year earlier. The net income comes from one-off
revenues of PHP697.89 million in other income, PHP9.27 million
in equity in net income of associate and PHP5.64 million in
foreign exchange gain, partially offset by a PHP241.99 million
impairment loss on investment.
As of Dec. 31, 2006, the company had total assets of PHP895.70
million and total liabilities of PHP11.34 million, giving it a
positive equity of PHP884.35 million, a turn around from the
capital deficiency of PHP2.49 million the company recorded as of
Dec. 31, 2005.
The increase in capital stock of PHP886.8 million or 35642% was
brought about by subscription to additional 43 billion shares
out of the increase in the company's authorized capital stock
from 30 billion shares to 120 billion shares and P455.6 million
net income for the period.
A copy of the company's financial statements for the year ended
Dec. 31, 2006, is available for free at:
http://bankrupt.com/misc/ISM2006.pdf
Headquartered in Makati, Philippines, ISM Communications
Corporation, formerly Itogon-Suyoc Mines, Inc., was originally a
gold-producing company with mines in the municipalities of
Itogon and Suyoc in Benguet Province. In June 2002, the
Securities and Exchange Commission approved the change in the
company's primary purpose from a mining company to one engaged
in the business of information technology, telecommunications,
multi-media and other similar business, and relegating the
original primary purpose to one of the secondary purposes.
JG SUMMIT: Posts 137% Rise in Net Income to PHP4 Bil. For 2006
--------------------------------------------------------------
JG Summit Holdings Inc. reported a consolidated net income of
PHP8.7 billion in 2006, an increase of 137% from PHP3.7 billion
in 2005, the company said in its results release lodged with the
Philippine Stock Exchange.
Net income attributable to equity holders of JG Summit
(including nonrecurring items) rose by 55% from PHP4.2 billion
in 2005 to PHP6.5 billion in 2006.
Consolidated group revenues increased by 27% from PHP67.9
billion in 2005, to PHP86.1 billion in 2006 due to the strong
performance of the company's food, property and airline
subsidiaries. Revenues of Universal Robina Corporation grew by
13% from PHP31.2 billion in 2005, to PHP35.2 billion in 2006,
mainly because of the rapid growth of the company's beverage
business, and the company's continuing dominance in snackfoods.
URC continues to be the largest contributor to group revenues
accounting for 41% of the total.
Revenues from Robinsons Land grew the fastest with a 30% growth
from PHP5.1 billion, to PHP6.6 billion in 2006. The high-rise
division emerged as the company's fastest growing business
buoyed by the strong demand for condominiums and BPO office
space. RLC is now the country's largest landlord to the BPO
industry to date with around 125,000 square meters leased out.
Cebu Pacific is now the company's second largest business in
terms of revenue contribution posting a 24% growth from PHP7.8
billion in 2005 to PHP9.7 billion in 2006. This was caused by
the company's successful shift into a true low cost carrier
model which enabled us to stimulate passenger traffic growth
with the company's increasingly popular 'Go' fares and internet
booking engine.
Service revenues from Digitel posted a modest 8% decline, from
PHP8.3 billion to PHP7.6 billion, as fixed line revenues
suffered from lower international receipts due to the
strengthening of the peso and the over-all decline of inbound
traffic.
Mobile revenues also declined modestly as the company
deliberately focused more on the improvement of network coverage
and quality. Consolidated revenues however, inclusive of
foreign exchange gains and the increase in the market valuation
of financial instruments, increased 8% from PHP10.5 billion in
2005, to PHP11.3 billion in 2006.
The most significant improvement in earnings was posted by Cebu
Pacific from a net income of PHP3.7 million in 2005 to PHP133.9
million in 2006. This was brought about by a more fuel
efficient aircraft fleet, better aircraft utilization, a
dramatic increase in the number and profitability of the
company's international routes, and a revenue management system
that helps the company maintain high passenger loads throughout
the year.
RLC's net earnings improved from PHP1.2 to 1.7 billion, as it
increased the completion of its high rise projects which also
delivered better margins and rental income. JG's share of this
declined modestly from PHP1.1 to PHP1.0 billion as a result of
the company's reduced effective equity interest in RLC.
URC's earnings also improved from PHP2.5 to PHP3.0 billion
despite increasing raw material, packaging and freight costs.
JG's share of this declined from PHP2.2 to PHP1.8 billion as a
result of the company's reduced equity stake in URC.
The net loss of Digitel improved from PHP1.5 billion to PHP963
million, despite higher financing costs, because of the tight
management of operating and network related expenses. JG's
share of Digitel's net loss declined from PHP748 million last
year, to PHP480 million in 2006.
Petrochemicals saw a deterioration of earnings mainly because of
the lower prices of the company's main products, coupled with
the higher cost of feedstock. Net losses increased from PHP431
million in 2005 to PHP3.4 billion in 2006 (already inclusive of
almost PHP3 billion in asset impairment charges). JG's share of
this loss was PHP355 million in 2005, and
PHP2.8 billion in 2006.
Without the non-recurring items and with the lower equity
ownership in URC and RLC, net income attributable to equity
holders of JG Summit, declined by 15% from PHP4.5 billion in
2005, to PHP3.8 billion in 2006. Gains realized from the URC
and RLC follow-on offerings amounted to PHP9.1 billion.
Impairment losses recognized, mostly from JG Petrochemicals and
Cebu Air totaled PHP5.9 billion.
Losses on discontinued operations of the textile and printing
subsidiaries amounted to PHP119.7 million.
Foreign exchange gains were recognized on the translation of the
company's dollar-denominated net borrowings and this amounted to
PHP3.4 billion.
Gains on the market value of the company's financial instruments
amounted to PHP2.4 billion. Equity income from the company's
associates, United Industrial Corporation and First Private
Power, increased to PHP1.1 billion in 2006.
Interest income grew 12.5% from PHP4.4 billion to PHP4.9 billion
as cash proceeds from the follow-on offerings were placed in
high-yielding instruments.
EBITDA (earnings before interest, taxes, depreciation and
amortization) excluding nonrecurring items increased by 4.6%
from PHP21.5 billion to PHP22.5 billion with major improvements
in food, property, and airlines, boosted by growth in revenues,
foreign exchange gains and better cost management.
The company's cost of sales and services grew 14% to PHP42.8
billion as a result of an increase in the cost of raw materials
in the company's foods business, the higher cost of services in
the company's mobile phone business, and the increase of flight
operations costs in the airline business.
Operating expenses increased by 6.8% as a result of the higher
operating expenses of the company's expanding mobile network,
the company's growing airline operations, and the expansion of
the company's international branded food operations.
The issuance of a US$300 Million 8% bond, due 2013, in January
2006 increased the company's interest and other financing
charges from PHP7.2 billion in 2005 to PHP7.5 billion in 2006.
Provision for income tax increased by 52%, because of the
booking of deferred taxes on unrealized foreign exchange gains
and unrealized gross profits on sales of real property.
However, the company's effective tax rate (income tax expense as
a percentage of net income before tax) was reduced to 24% in
2006, from 34% in 2005 as a result of the lower stock
transaction tax on the secondary sale of shares related to the
URC and the RLC follow-on offerings.
Consolidated total assets grew by 11% to PHP220.4 billion.
Capital Expenditures grew by 13% to almost PHP28 billion in
2006, from PHP24.4 billion in 2005, because of the re-fleeting
exercise of the airline, the continued roll-out of the mobile
network of Digitel, the expansion of the beverage manufacturing
assets of URC, and the continuing build-out of the high rise and
commercial center projects of RLC. Cash and cash equivalents
increased to PHP24.8 billion, from the proceeds of the follow-on
offerings of URC and RLC.
Current assets amounted to PHP82.3 billion while current
liabilities reached PHP57.7 billion, for a current ratio of
1.43:1. Total financial debt amounted to PHP86.5 billion in
2006, slightly lower from PHP87.9 billion in 2005.
Additional borrowing was offset by the lower translated level of
the company's dollar-denominated debt as the peso strengthened.
Net debt stood at PHP44.8 billion, bringing the company's net
debt to equity ratio to 0.49:1 from 0.74:1 at the beginning of
the year. The company's gearing ratio for the year is 0.96:1,
well within the company's financial covenant of 1.5:1.
Cash and cash equivalents increased significantly to PHP24.83
billion as of December 31, 2006, from last year's PHP5.46
billion. Such increase was a result of proceeds from follow-on
offerings of certain subsidiaries. Investments in bonds and
other securities, classified as financial assets at fair value
through profit and loss, available for sale investments and
held-to-maturity investments with the adoption in 2005 of PAS
39, dropped by 18.9% with the sale of debt securities.
Cash from operating activities amounted to PHP15.68 billion and
cash from financing activities amounted to PHP3.4 billion. Cash
was principally used for the capital expenditure program of the
company's operating subsidiaries and to service debt maturity.
The company does not expect any liquidity problems that may
arise in the near future.
Receivables dropped to PHP14.53 billion as of December 31, 2006
from last year's PHP19.60 billion due to lower receivables from
related parties.
Inventories decreased by 13.4% from PHP10.34 billion as of
December 31, 2005 to PHP8.95 billion as of December 31, 2006
mainly due to cessation of operation of textile business.
Inventories of textile business last year amounted to PHP1.43
billion, this year, its net realizable value amounted to PHP1.1
billion, which is being presented under assets for disposal
group classified as held for sale.
Other current assets decreased by 15.2% from last year's PHP3.80
billion to PHP3.22 billion due to drop in advances to suppliers
of the airline business.
Assets of disposal group classified as held for sale pertains to
total assets of the textile and printing businesses which ceased
operation during the year.
Investments in associates and joint ventures increased by 10.6%
from PHP17.11 billion to PHP18.91 billion following the
acquisition of additional shares in UIC, Ltd., which increased
the company's stake from 30% to 32% in 2006.
Investment properties rose by 9% from PHP18.63 billion as of
December 31, 2005 to PHP20.30 billion as of December 31, 2006
due to acquisition of land for future development of the real
estate business of the company.
Property, plant and equipment increased 14% from PHP81.42
billion to PHP92.81 billion attributed mainly to the re-fleeting
program of air transportation business, on-going expansion of
the facilities of the company's cellular telecommunications
business, and the expansion of the company's branded consumer
foods business.
Goodwill and intangibles dropped significantly to PHP959.73
million this year, from PHP2.05 billion last year due to
recognition of impairment losses of goodwill in URC-China
amounting to PHP240 million and JGSPC's technology license
amounting to PHP278.4 million.
Other noncurrent assets decreased by 31.6% from PHP5.54 billion
in 2005 to PHP3.79 billion in 2006 due to reclassification of
certain security deposits to property and equipment account.
Accounts payable and accrued expenses grew by 26.2% from
PHP25.45 billion as of December 31, 2005 to PHP32.10 billion as
of December 31, 2006 mainly due to increase in deposit
liabilities of RSB which totaled PHP13.6 billion in 2006 versus
PHP7.0 billion in 2005.
Short-term debt declined by 23.3% from PHP19.09 billion as of
December 31, 2005 to PHP14.64 billion as of December 31, 2006
due to settlement of short-term borrowings of certain offshore
subsidiaries.
Other current liabilities dropped 43% from last year's PHP7.05
billion to PHP4.01 billion this year as the Company settled some
of its obligations.
Long-term debt, including current portion, went up by 4.5% from
PHP66.72 billion as of December 31, 2005 to PHP69.74 billion as
of December 31, 2006 because of additional borrowings under an
Export Credit Agency guaranteed aircraft facility of Cebu Air
related with their refleeting program, and the issuance of a US$
300 million 8% bond in January 2006, through one of the
company's offshore finance subsidiaries. This was offset by
settlement of some longterm debt by some of the company's
subsidiaries.
Deferred income tax liabilities rose to PHP4.22 billion, up by
98% from last year's PHP2.13 billion which is due to deferred
tax effects of unrealized foreign exchange gain and mark-to-
market gain of the company's financial instruments.
Other noncurrent liabilities dropped significantly by 52% from
PHP4.04 billion last year to PHP1.96 billion due to decrease in
accrued project cost of the telecoms.
Minority interest in consolidated subsidiaries increased
significantly from PHP7.79 billion as of December 31, 2005 to
PHP20.94 billion as of December 31, 2006 due to the company's
reduction in equity interest in URC from 86% to 59% and RLC from
90% to 60%. Stockholders' equity, excluding minority interest,
stood at PHP69.55 billion as of December 31, 2006 from PHP63.85
billion.
A copy of the group's financial statements for the year ended
Dec. 31, 2006, is available for free at:
http://bankrupt.com/misc/jgsummit2006.pdf
JG Summit Holdings Inc. -- http://www.jgsummit.com.ph/-- is
engaged in manufacturing and distributing food and agro-
industrial products and commodities; development, leasing and
management of real estate and hotels; manufacturing and
exporting textiles; provision of voice and data
telecommunication services; manufacturing of polypropylene,
polyethylene and other industrial chemicals; operation of thrift
bank and foreign exchange and securities dealing; provision of
air transport services both domestic and international and other
supplementary businesses like manufacturing of printed circuit
boards; air charter services, power generation, printing
services, Internet-related services, packaging materials,
insurance brokering and securities investment.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
April 12, 2006, Standard & Poor's Ratings Services assigned its
B+ corporate credit rating to JG Summit, with a stable outlook.
At the same time, Standard & Poor's assigned its B+ rating to
the US$300 million 8% unsecured notes due 2013 issued in January
2006 by JGSH Philippines Limited, a special purpose vehicle
wholly owned by JG Summit. The notes are irrevocably and
unconditionally guaranteed by JG Summit.
MAKATI MEDICAL: Earns PHP223.1 Mil. in 2006
-------------------------------------------
Medical Doctors Inc. (MDI), which owns and operates Makati
Medical Center, reported a 37-year record high consolidated net
income after tax of PHP223.1 million, 1,360% higher than the
PHP15.3 million recorded in 2005, the Manila Bulletin reports.
The Bulletin says that earnings before income tax, depreciation
and amortizations increased by 108% to PHP631 million in 2006
from PHP304 million in 2005. EBITDA margin stood at 23% of
revenues. Makati Med said revenues improved by 6.2% percent
from PHP2.6 billion in 2005 to PHP2.7 billion in 2006, due
mainly to stringent cost management, which contributed savings
of PHP117 million during the year.
The Bulletin also reports that Makati Med has earlier secured
SEC approval to issue PHP900 million in convertible notes. It
is now anticipated that the full amount of these Notes will be
taken up by Metro Pacific Investment Corporation and by the
principal existing shareholders, including senior doctors, who
have indicated their intention to exercise their preemptive
rights to the notes.
Makati Med is in the final stages of negotiations with various
creditor banks for the restructuring of its outstanding loans.
Makati Medical Center -- http://www.makatimed.rxpinoy.com/--
was founded in the 1960s by Drs. Constantino Manahan, Jose
Fores, Dr. Mariano Alimurung, Carlos Sevilla and Luis Maria
Araneta together with Romeo Gustilo, Manuel Fernandez Sr., Jorge
Araneta, Raul Fores, Julieta Ledesma, and Daniel Go.
On May 31, 1969, the Makati Medical formally opened its doors to
the public.
The Troubled Company Reporter - Asia Pacific reported that after
his appointment as chairman of the Makati Med board, Manuel
Pangilinan invested PHP100 million into the hospital to contain
its financial hemorrhage.
The TCR-AP also reported that Makati Med is restructuring its
PHP1.2-billion debt, PHP400 million of which are owed to
suppliers.
Makati Medical's creditor banks include:
* Development Bank of the Philippines,
* Rizal Commercial Banking Corp.,
* Insular Savings,
* Social Security System, and
* DEG of Germany.
The hospital needs about PHP100 million to solve its cash
problems and another PHP400 million to improve its facilities.
MEDCO HOLDINGS: Books PHP16.94-Million Net Loss in 2006
-------------------------------------------------------
Medco Holdings Inc. reported yet another net consolidated loss
of PHP16.94 million for the year ended Dec. 31, 2006, following
net losses of PHP6.02 million and PHP592.61 million for the
years 2005 and 2004, respectively.
For 2006, the group had total revenues of PHP14.49 million and
total expenses of PHP29.86 million.
A copy of Medco Holdings' 2006 financials is available for free
at http://bankrupt.com/misc2/medco2006.pdf
Makati City-based Medco Holdings, Inc. is engaged in investment
holding activities.
NEXTSTAGE INC: Dec. 31 Balance Sheet Upside Down by PHP54 Mil.
--------------------------------------------------------------
NextStage Inc. reports a net loss of PHP159.08 million for the
year ending Dec. 31, 2006, a 788% increase from the net loss of
PHP17.91 million for the year ending Dec. 31, 2005.
The company also reported a net loss of PHP44.81 million in
2004.
Consolidated revenue and other operating income in 2006
increased to PHP1.78 million from PHP28,808 in 2005, while costs
and expenses amounted to PHP129.07 million, a 222% increase from
the PHP39.75 million in 2005.
As of Dec. 31, 2006, the group posted total assets of PHP359.70
million, total liabilities of PHP410.28 million, and total
capital deficiency of PHP54.02 million. The group also has an
accumulated deficit of PHP256.58 million as of Dec. 31, 2006.
The company's 2006 financials are available for download at:
http://bankrupt.com/misc/nextstage2006.pdf
NextStage, Inc. is the holding company of three software
development businesses, Mondex Philippines, Inc., Infinit-e Asia
Inc. and Mondex Protector Philippines Inc. It was the result of
the union between listed company, Pacemco Holdings, Inc.
(formerly Pacific Cement Company) and its subsidiary, NextStage,
Inc. (a technology and electric company) consummated in December
2001. Pacemco Holdings, Inc. remained as the surviving
corporation but adopted the name of NextStage, Inc.
NextStage is responsible for the management of its three wholly
owned subsidiaries. It competes with other payment products
such as debit and credit cards. It also invests in smart card
applications development systems, which uniquely provides
MULTOS-based solutions, an open smart card operating system
allowing several applications to reside on a single chip. It has
an affiliation with international payments company, MasterCard
International.
WARNER MUSIC: Incurs US$27 Million Net Loss in Second Quarter
-------------------------------------------------------------
Warner Music Group Corp. reported a net loss of US$27 million
for the second quarter ended March 31, 2007. It had a net loss
in the second quarter of fiscal 2006 of US$7 million. For the
second quarter of fiscal 2007, revenue slipped to US$784 million
from US$796 million in the same period last year.
"We are in the midst of transforming Warner Music Group to a
music-based content company," said Edgar Bronfman, Jr., Warner
Music Group's chairman and chief executive officer. "Despite
tough comparisons to last year and a challenging industry
environment, we achieved some important successes this quarter.
We gained album share in the largest global music market, the
U.S., achieved double-digit revenue growth in the second largest
global music market, Japan, sustained our digital leadership
position, and concluded new partnerships. Perhaps most
significantly, we advanced our initiatives to maximize the value
of our content and to diversify our revenue streams. Essential
to the on-going success of those business initiatives, we are in
the process of realigning the organization to more effectively
deploy our resources to growth areas, such as digital and video
distribution. By helping us manage physical costs, while
redeploying our resources and ongoing investments towards new
business initiatives, this realignment will ensure a successful
transformation in an evolving music industry, not just for this
year or the next, but for years to come."
Michael Fleisher, Warner Music Group's executive vice president
and chief financial officer, added, "Our realignment initiatives
are designed to improve our effectiveness, flexibility,
structure and performance. Between now and the end of the
fiscal year, we expect to incur one-time restructuring and
implementation charges ranging from US$65 million to US$80
million."
Second-Quarter Results
The decline in revenue for the second quarter 2006 was driven by
difficult Recorded Music comparisons against our very strong
second quarter last year. In addition, the recorded music
industry remains challenged by piracy and changing consumption
patterns in the shift from physical sales to new forms of
digital music. On a constant-currency basis, quarterly revenue
fell 5%. Declines in our physical Recorded Music revenue were
only partially offset by increases in Music Publishing and
digital Recorded Music revenue. Domestic revenue was relatively
flat while international revenue was down 4%, or 11% on a
constant-currency basis.
Operating income for the quarter dropped to US$19 million from
US$45 million in the prior-year quarter and operating margin was
down 3.2 percentage points to 2.4%. Adjusted to exclude Non-
Recurring Items, operating income for the quarter declined 22%
to US$35 million and operating margin was down 1.2 percentage
points to 4.5%.
As of March 31, 2007, the company's balance sheet showed total
assets of US$4.5 billion, total liabilities of US$4.5 billion,
and total stockholders' equity of US$4 million. Its accumulated
deficit as of March 31, 2007, grew to US$564 million from US$516
million as of Sept. 30, 2006.
The company's March 31 balance sheet also showed strained
liquidity with total current assets of US$1.2 billion available
to pay total current liabilities of US$1.8 billion.
The company reported a cash balance of US$362 million, total
long-term debt of US$2.3 billion and net debt or total long-term
debt minus cash of US$1.9 billion, all as of March 31, 2007.
Full-text copies of the company's 2007 second quarter report are
available for free at http://ResearchArchives.com/t/s?1eb8
About Warner Music Group
Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--
is a music company that operates through numerous international
affiliates and licensees in more than 50 countries, including
the Philippines.
* * *
In March 2007, Standard & Poor's Ratings Services placed its
ratings on Warner Music Group Corp., including the 'BB-'
corporate credit rating, on CreditWatch with negative
implications, following the company's statement that it is
exploring a possible merger agreement with EMI Group PLC (BB-
/Watch Neg/B).
Warner Music Group Corp. carries Fitch Ratings' BB- issuer
default rating assigned in May 2006.
=================
S I N G A P O R E
=================
CHANG HIN: Proofs of Claim Filing Deadline is May 25
----------------------------------------------------
Chang Hin Investment Pte Ltd., which is in wind-up proceedings,
requires its creditors to file their proofs of claim by May 25,
2007.
Creditors who fail to file their proofs of claim by the deadline
will be excluded from the company's dividend distribution.
The company's liquidator is:
Chan Wang Ho
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
DYNASTY CITY: Pays Dividend to Creditors
----------------------------------------
Dynasty City Traders Pte Ltd., which is in liquidation, paid the
first and final dividend to its creditors on April 24, 2007.
The company paid 1.522% to all received claims.
The liquidator can be reached at:
Chan Wang Ho
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
TECHMAT HOLDINGS: Proofs of Claim Filing Deadline is May 25
-----------------------------------------------------------
Techmat Holdings Pte Ltd., which is in wind-up proceedings,
requires its creditors to file their proofs of claim by May 25,
2007.
Creditors who fail to file their proofs of claim by the deadline
will be excluded from the company's dividend distribution.
The company's liquidator is:
Moey Weng Foo
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
YE MUN BUILDERS: Pays Dividend to Creditors
-------------------------------------------
Ye Mun Builders Pte Ltd., which is in liquidation, paid the
first and final dividend to its creditors on April 24, 2007.
The company paid 3% to all received claims.
The company's liquidator is:
Ewe Pang Kooi
Loke Poh Keun
c/o 8 Robinson Road
#08-00 ASO Building
Singapore 048544
* BOND PRICING: For the Week 7 May to 11 May 2007
-------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA &
NEW ZEALAND
-----------
Ainsworth Game 8.000% 12/31/09 AUD 0.85
Alinta Networks 5.750% 09/22/10 AUD 6.62
APN News & Media Ltd 7.250% 10/31/08 AUD 5.02
A&R Whitcoulls Group 9.500% 12/15/10 NZD 9.75
Arrow Energy NL 10.000% 03/31/08 AUD 2.00
Babcock & Brown Pty Ltd 8.500% 12/31/49 NZD 7.45
Becton Property Group 9.500% 06/30/10 AUD 0.80
BIL Finance Ltd 8.000% 10/15/07 NZD 9.75
Capital Properties NZ Ltd 8.500% 04/15/07 NZD 9.00
Capital Properties NZ Ltd 8.000% 04/15/10 NZD 9.00
Cardno Limited 9.000% 06/30/08 AUD 5.60
CBH Resources 9.500% 12/16/09 AUD 0.39
Chrome Corporation Ltd 10.000% 02/28/08 AUD 0.02
Clean Seas Tuna Ltd 9.000% 09/30/08 AUD 1.35
Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.60
Evans & Tate Ltd 8.250% 10/29/07 AUD 0.45
Fletcher Building Ltd 8.600% 03/15/08 NZD 8.90
Fletcher Building Ltd 7.800% 03/15/09 NZD 8.25
Fletcher Building Ltd 7.550% 03/15/11 NZD 8.20
Futuris Corporation Ltd 7.000% 12/31/07 AUD 2.53
Geon Group 11.750% 10/15/09 NZD 12.35
Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 9.50
Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 10.00
Hutchison Telecoms Australia 5.500% 07/12/07 AUD 0.50
IMF Australia Ltd 11.500% 06/30/10 AUD 0.80
Infrastructure & Utilities
NZ Ltd 8.500% 09/15/13 NZD 8.70
Infratil Ltd 8.500% 11/15/15 NZD 8.20
Kiwi Income Properties Ltd 8.000% 06/30/10 NZD 1.24
Metal Storm 10.000% 09/01/09 AUD 0.14
Minerals Corporation Ltd 10.500% 09/30/07 AUD 0.90
Nuplex Industries Ltd 9.300% 09/15/07 NZD 9.10
Primelife Corporation 10.000% 01/31/08 AUD 1.03
Salomon SB Aust 4.250% 02/01/09 USD 7.43
Sapphire Sec 7.410% 09/20/35 NZD 7.36
Sapphire Sec 9.160% 09/20/35 NZD 9.09
Silver Chef Ltd 10.000% 08/31/08 AUD 1.10
Software of Excellence 7.000% 08/09/07 NZD 2.33
Speirs Group Ltd. 10.000% 06/30/49 NZD 65.00
Structural Systems 11.000% 06/30/07 AUD 1.60
TrustPower Ltd 8.300% 09/15/07 NZD 8.60
TrustPower Ltd 8.300% 12/15/08 NZD 8.65
TrustPower Ltd 8.500% 09/15/12 NZD 8.15
TrustPower Ltd 8.500% 03/15/14 NZD 8.25
CHINA
-----
China Tietong 4.600% 08/18/15 CNY 60.00
Jiangxi Investment 4.380% 09/11/21 CNY 56.84
JAPAN
-----
Japan Funi Muni Ent 1.700% 10/30/08 JPY 2.47
JNR Settlement 2.200% 02/15/08 JPY 1.68
Nara Prefecture 1.520% 10/31/14 JPY 10.08
KOREA
-----
Korea Development Bank 7.350% 01/27/21 KRW 49.71
Korea Development Bank 7.450% 10/31/21 KRW 49.68
Korea Development Bank 7.400% 11/02/21 KRW 49.67
Korea Development Bank 7.310% 11/08/21 KRW 49.63
Korea Development Bank 8.450% 12/15/26 KRW 71.20
Korea Electric Power 7.950% 04/01/96 USD 57.54
MALAYSIA
--------
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.75
Asian Pac Bhd 4.000% 12/21/07 MYR 0.60
Berjaya Land Bhd 5.000% 12/30/09 MYR 1.04
Bumiputra-Commerce 2.500% 07/17/08 MYR 1.47
Camerlin Group 5.500% 07/15/07 MYR 2.17
Crescendo Corporation Bhd 3.000% 08/25/07 MYR 1.44
Denko Industrial Corp. Bhd 5.000% 03/15/07 MYR 0.69
Eastern & Oriental Hotel 8.000% 07/25/11 MYR 2.85
Eden Enterprises (M) Bhd 2.500% 12/02/07 MYR 0.80
Equine Capital 3.000% 08/26/08 MYR 0.62
EG Industries Bhd 5.000% 06/16/10 MYR 0.60
Greatpac Holdings 2.000% 12/11/08 MYR 0.21
Gula Perak Bhd 6.000% 04/23/08 MYR 0.43
Hong Leong Industries Bhd 4.000% 06/28/07 MYR 0.83
Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.50
I-Berhad 5.000% 04/30/07 MYR 0.75
Insas Bhd 8.000% 04/19/09 MYR 0.80
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.42
Kosmo Technology Industrial 2.000% 06/23/08 MYR 0.76
Kretam Holdings Bhd 1.000% 08/10/10 MYR 0.72
Kumpulan Jetson 5.000% 11/27/12 MYR 0.58
LBS Bina Group Bhd 4.000% 12/31/07 MYR 0.86
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.86
LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.86
Media Prima Bhd 2.000% 07/18/08 MYR 1.78
Mithril Bhd 8.000% 04/05/09 MYR 0.28
Mithril Bhd 3.000% 04/05/12 MYR 0.60
Nam Fatt Corporation Bhd 2.000% 06/24/11 MYR 0.76
Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.28
Pelikan International 3.000% 04/08/10 MYR 1.98
Pelikan International 3.000% 04/08/10 MYR 2.00
Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.87
Ramunia Holdings 1.000% 12/20/07 MYR 1.07
Rashid Hussain Bhd 3.000% 12/23/12 MYR 1.85
Rashid Hussain Bhd 0.500% 12/24/12 MYR 1.85
Rhythm Consolidated Bhd 5.000% 12/17/08 MYR 0.32
Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.31
Senai-Desaru Exp 3.500% 06/07/19 MYR 74.25
Senai-Desaru Exp 3.500% 12/09/19 MYR 72.87
Senai-Desaru Exp 3.500% 06/09/20 MYR 71.49
Senai-Desaru Exp 3.500% 12/09/20 MYR 70.14
Senai-Desaru Exp 3.500% 06/09/21 MYR 68.77
Southern Steel 5.500% 07/31/08 MYR 1.68
Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.29
Tradewinds Corp. 2.000% 02/08/12 MYR 1.06
Tradewinds Plantations Bhd 3.000% 02/28/16 MYR 1.20
TRC Synergy Berhad 5.000% 01/20/12 MYR 1.51
WCT Land Bhd 3.000% 08/02/09 MYR 2.53
Wah Seong Corp 3.000% 05/21/12 MYR 4.22
YTL Cement Bhd 4.000% 11/10/15 MYR 2.15
SINGAPORE
---------
Sengkang Mall 8.000% 11/20/12 SGD 1.90
*********
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
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
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