/raid1/www/Hosts/bankrupt/TCRAP_Public/070601.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, June 1, 2007, Vol. 10, No. 108
Headlines
A U S T R A L I A
BREEZE TRAILERS: Will Declare First & Final Dividend Today
ERNEST W. KING: Sets Members’ Final Meeting for June 30
FOWLER ELECTRICAL: Members & Creditors to Meet on July 4
ITRON: Ernst & Young Replaces Deloitte & Touche as Accountant
J INGRAM: Members’ Final Meeting Set for June 29
NM & MV: Members to Hear Wind-Up Report on June 29
PALMDALE ELECTRICS: Members Agree on Voluntary Liquidation
ROBMA ENTERPRISES: Members Resolve to Liquidate Business
SONTRIP PTY: Liquidator to Present Wind-Up Report on June 29
SWIFT & CO: Acquisition by J&F Cues Moody’s to Review B3 Rating
SYMBION HEALTH: Accepts Healthscope's AU$2.8 Billion Bid
WATERS NOMINEES: Members to Hold Final Meeting on June 29
YANDOT PTY: Supreme Court Enters Wind-Up Order
C H I N A & H O N G K O N G
ARTPAC RESOURCES: Members’ Annual Meeting Set for June 8
BLOUNT INT’L: March 31 Balance Sheet Upside-Down by US$98.4 Mil.
BOMBARDIER INC: Earns US$79 Million in Quarter Ended April 30
COUDERT BROS: Disclosure Statement Hearing Moved to June 15
KAWAMURA CO: Creditors’ Meeting Set for Today
KOPPERS HOLDINGS: Mar. 31 Balance Sheet Upside-Down by US$83.2MM
MARSH & MCLENNAN: Members’ Final Meeting Set for June 26
MIXMAX GARMENTS: Creditors’ Proofs of Debt Due by June 25
TITANIUM METALS: Earns US$76.4 Million in Quarter Ended March 31
UNIKITAS AND CO: Members Pass Resolution to Wind Up Firm
I N D I A
BRITISH AIRWAYS: Displeased by Air Jamaica's London Route Sale
CABLE & WIRELESS: Deutsche Bank Maintains Buy Rating on Firm
MODI RUBBER: Net Loss Widens to INR27.9MM in Qtr. Ended March 31
MYSORE CEMENTS: Turns Around With INR318MM Profit in 1st Quarter
I N D O N E S I A
ALCATEL-LUCENT: Expands Triple Play Services in Chile
INDOFOOD SUSKES: Expects 6% Increase in Noodles’ Sale Volume
INCO LTD: To Revise Current Royalty System
TELKOM INDONESIA: To Spend US$2 Billion on Expansion
GOODYEAR TIRE: Fitch Lifts Issuer Default Rating to B+
PHILLIPS-VAN HEUSEN: Earns US$53 Million in Quarter Ended May 6
J A P A N
ADVANCED MEDICAL: Names Robert J. Palmisano as Director
ADVANCED MEDICAL: Recall Prompts Moody’s to Review Low-B Ratings
FORD MOTOR: Planning To Sell Volvo
FORD MOTOR: Production Ends at Windsor Casting Plant
JAPAN AIRLINES: To Boost Capital Base to JPY100-150 Billion
NORTHWEST AIRLINES: AFA-CWA OKs Collective Bargaining Agreement
TIMKEN COMPANY: Earns US$75.2 Million in First Quarter 2007
SAPPORO HOLDINGS: Dissatisfied With Steel Partners' Answers
K O R E A
CHOROKBAEM MEDIA: Signs Contract With Munwha Broadcasting
M A L A Y S I A
AVAYA INC: In Talks With Silver Lake on Likely Buyout, WSJ Says
VANGUARD CAR: Moody’s Affirms Corporate Family Rating at B1
VERIFONE HOLDINGS: Earns US$4.8 Mil. in Quarter Ended April 30
N E W Z E A L A N D
BELLE CHILDREN: Creditors’ Proofs of Debt Due by June 14
BUP LTD: Creditors’ Proofs of Debt Due by June 18
GAME DAME: Enters Wind-Up Proceedings
POGO PRODUCING: S&P Retains Developing Watch on BB Credit Rating
SIACS GROUP: Taps Sanson and Fisk as Liquidators
QUINNS POST: Shareholders Resolve to Liquidate Business
QUINNS POST TAVERN: Names Rhys Michael Barlow as Liquidator
TEBROC CONSULTANTS: Creditors Must Prove Debts by June 11
URBAN PLUMBING: Requires Creditors to Prove Debts by June 15
WAITOKI PROPERTIES: Enters Liquidation Proceedings
VINCENT PROPERTY: Appoints Parsons and Kenealy as Liquidators
P H I L I P P I N E S
CHIQUITA BRANDS: Panamanian Court Releases Coosemupar Account
CHIQUITA BRANDS: Will Sell 12 Cargo Vessels for US$227 Million
MANILA ELECTRIC: Lopez Family Plans to Buy Government Stake
* S&P Puts BB+ Rating on Republic of Philippines' Bond Issues
* 5.7% Economic Growth Predicted for First Quarter 2007
* Central Bank Puts Measures to Stem Peso Growth
S I N G A P O R E
CKE RESTAURANTS: Selling La Salsa Chains to Baja Fresh & M Plus
DIGILAND: Director Reduces Holdings of Direct Shares
PETROLEO BRASILEIRO: In Exploration Talks with Petrochina
SEE HUP SENG: Shareholder Increases Holdings of Deemed Shares
T H A I L A N D
TONGKAH HARBOUR: Turns Around With THB6-Mil. Net Income in 2006
TONGKAH HARBOUR: Posts THB29.52-Mil. Net Loss for 1st Qtr. 2007
TONGKAH HARBOUR: SET May Return Stock to Non-Performing Group
TMB BANK: Will Act as Agent for True's Debenture Offering
TOTAL ACCESS COMMS: Terje Borge to Replace Petter Furberg as CFO
TRUE CORP: To Issue THB4 Billion Worth of Debentures
TRUE CORP: To Acquire Future Gamer's Shares for THB20 Million
* Large Companies With Insolvent Balance Sheets
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A U S T R A L I A
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BREEZE TRAILERS: Will Declare First & Final Dividend Today
----------------------------------------------------------
Breeze Trailers Pty Ltd will declare a first and final dividend on June 1,
2007.
Priority unsecured creditors were required to file their proofs of debt by
May 31, 2007, to be included in the company’s dividend distribution.
The company’s liquidator is:
Antony de Vries
c/o de Vries Tayeh
PO Box 216, Parramatta
New South Wales 2124
Australia
About Breeze Trailers
Breeze Trailers Pty Ltd is a distributor of transportation equipment. The
company is located in New South Wales, Australia.
ERNEST W. KING: Sets Members’ Final Meeting for June 30
-------------------------------------------------------
A final meeting will be held for the members of Ernest W. King & Sons Pty
Ltd on June 30, 2007, at 2:00 p.m.
The members will receive at the meeting a report about the company’s
wind-up proceedings and property disposal.
The company’s liquidator is:
Brett Anthony Matthews
c/o Tait Miller McIntyre & Co.
53 Junction Street
Nowra, New South Wales 2541
Australia
About Ernest W. King
Ernest W. King & Sons Pty Ltd manages dairy farms. The company is located
in New South Wales, Australia.
FOWLER ELECTRICAL: Members & Creditors to Meet on July 4
--------------------------------------------------------
The members and creditors of Fowler Electrical Pty Ltd will meet on July
4, 2007, at 9:30 a.m., to receive the liquidator’s report about the
company’s wind-up proceedings and property disposal.
The company’s liquidator is:
Nicholas Crouch
Crouch Insolvency
31 Market Street, Level 28
Sydney, New South Wales
Australia
About Fowler Electrical
Fowler Electrical Pty Ltd is involved with electrical work. The company
is located in Queensland, Australia.
ITRON: Ernst & Young Replaces Deloitte & Touche as Accountant
-------------------------------------------------------------
Itron Inc. selected Ernst & Young LLP to replace Deloitte & Touche LLP as
the company’s independent registered public accounting firm, subject to
E&Y’s acceptance of the position. E&Y notified Itron of its acceptance of
the position on May 24, 2007. The decision was made at a meeting of the
company’s Board of Directors on May 21, 2007, the same date Deloitte was
informed of the E&Y’s selection.
As a result of Itron’s acquisition of Actaris Metering Systems on April
18, 2007, the Audit/Finance Committee undertook a review of both Deloitte
and E&Y as Itron’s independent accountants. E&Y served as Actaris’
independent accountants since Actaris’ formation in 2001.
The audit reports of Deloitte on the consolidated financial statements of
the company as of and for the years ended Dec. 31, 2006, and 2005 did not
contain an adverse opinion or disclaimer of opinion.
During the years ended Dec. 31, 2006 and 2005, and in the subsequent
interim period through May 21, 2007, there were no disagreements between
Itron and Deloitte on any matter of accounting principles or practices,
financial statement disclosure or auditing scope or procedure, which
disagreement, if not resolved to the satisfaction of Deloitte, would have
caused Deloitte to make reference to the subject matter of the
disagreement in their reports on the financial statements for such years.
About Itron Inc.
Itron Inc., -- http://www.itron.com/-- is a technology provider and
critical source of knowledge to the global energy and water industries.
Nearly 3,000 utilities worldwide rely on Itron technology to provide the
knowledge they require to optimize the delivery and use of energy and
water. Itron creates value for its clients by providing industry-leading
solutions for electricity metering; meter data collection; energy
information management; demand response; load forecasting, analysis and
consulting services; distribution system design and optimization;
web-based workforce automation; and enterprise and residential energy
management.
Itron has operations in Taiwan, Australia and New Zealand.
* * *
As reported in the Troubled Company Reporter on April 20, 2007, Standard &
Poor's Ratings Services lowered its ratings on Itron Inc., including its
corporate credit rating to 'B+' from 'BB-', following the completion of
the company's acquisition of Actaris Metering Systems.
J INGRAM: Members’ Final Meeting Set for June 29
------------------------------------------------
A final meeting will be held for the members of J Ingram & Co Pty Ltd on
June 29, 2007, at 2:00 p.m.
At the meeting, the members will hear the liquidator’s report about the
company’s wind-up proceedings and property disposal.
The company’s liquidator is:
Mark Crowther
Tait Miller McIntyre & Co.
53 Junction Street
Nowra, New South Wales 2541
Australia
About J Ingram
J Ingram & Co Pty Ltd provides engineering services. The company is
located in New South Wales, Australia.
NM & MV: Members to Hear Wind-Up Report on June 29
--------------------------------------------------
The members of NM & MV Pty Limited will meet on June 29, 2007, at 2:00
p.m., to receive a report about the company’s wind-up proceedings and
property disposal.
The company’s liquidator is:
Sule Arnautovic
Jirsch Sutherland
Chartered Accountants
55 Hunter Street, Level 4
Sydney, New South Wales 2000
Australia
Telephone: (02) 9236 8333
PALMDALE ELECTRICS: Members Agree on Voluntary Liquidation
----------------------------------------------------------
During a general meeting held on April 30, 2007, the members of Palmdale
Electrics Pty Ltd agreed to liquidate the company’s business and appointed
Steven Nicols as liquidator.
The Liquidator can be reached at:
Steven Nicols
Nicol & Brien
Australia
Telephone: (02) 9299 2289
Web site: http://www.bankrupt.com.au
About Palmdale Electrics
Palmdale Electrics Pty Ltd provides business services. The company is
located in New South Wales, Australia.
ROBMA ENTERPRISES: Members Resolve to Liquidate Business
--------------------------------------------------------
At an extraordinary general meeting held on May 2, 2007, the members of
Robma Enterprises Pty Ltd resolved to liquidate the company’s business and
appointed Chris Wykes as liquidator.
The Liquidator can be reached at:
Chris Wykes
Lawler Partners
Chartered Accountants
1 Margaret Street, Level 7
Sydney, New South Wales 2000
Australia
About Robma Enterprises
Robma Enterprises Pty Ltd is involved with carpentry work. The company is
located in New South Wales, Australia.
SONTRIP PTY: Liquidator to Present Wind-Up Report on June 29
------------------------------------------------------------
Sontrip Pty Limited will hold a final meeting for its members and
creditors on June 29, 2007, at 10:00 a.m.
Danny Vrkic, the company’s liquidator, will present a report about the
company’s wind-up proceedings and property disposal at the meeting.
The Liquidator can be reached at:
Danny Vrkic
Jirsch Sutherland & Co - Wollongong
6-8 Regent Street, Level 3
Wollongong, New South Wales 2500
Australia
Telephone:(02) 4225 2455
Facsimile:(02) 4225 2546
About Sontrip Pty
Sontrip Pty Limited is a distributor of durable goods. The company is
located in New South Wales, Australia.
SWIFT & CO: Acquisition by J&F Cues Moody’s to Review B3 Rating
---------------------------------------------------------------
Moody's Investors Service placed the ratings of Swift & Company including
its B3 corporate family rating and B3 probability of default rating, on
review for possible upgrade following the announcement that the company
will be acquired by J&F Participacoes S.A. of Brazil. LGD assessments are
also subject to adjustment.
Ratings under review for possible upgrade:
-- Corporate family rating at B3;
-- Probability of default rating at B3;
-- Senior unsecured notes at Caa1;
-- Senior subordinated notes at Caa1.
HM Capital Partners LLC and J&F Participacoes S.A. have signed a
definitive agreement under which J&F will acquire Swift in an all cash
transaction of approximately US$1.4 billion, including the assumption of
about US$1.2 billion in Swift debt. Post-transaction, the combined company
will be the world's largest beef and pork processor in terms of capacity.
Moody's review will focus on the successful execution of the acquisition,
the post transaction credit profile of the resulting company and group,
and the ultimate disposition of Swift's debt. Should most of Swift's debt
be repaid, its ratings will be withdrawn.
Headquartered in Greeley, Colorado, Swift & Company is one of the world's
leading beef and pork processing companies. Its largest business segments
are domestic beef processing, domestic pork processing and beef operations
in Swift Australia. Swift's parent S&C Holdco 3 is owned by a limited
partnership formed by equity sponsors HM Capital Partners LLC (formerly
Hicks Muse) and Booth Creek Management Corporation. Consolidated sales
for the 12 months ended Feb. 25, 2007, were approximately US$9.5 billion.
SYMBION HEALTH: Accepts Healthscope's AU$2.8 Billion Bid
--------------------------------------------------------
Symbion Health has accepted a AU$2.8 billion takeover cash-and—stock bid
from hospital and pathology company Healthscope, Jacob Saulwick of The
Sydney Morning Herald reports.
Mr. Saulwick relates that Healthscope will acquire Symbion’s diagnostic
imaging, pathology and medical center, while private equity groups
Ironbridge Capital and Archer Capital will want to acquire Symbion’s
pharmacy and consumer segments for more than AU$1 billion.
According to the report, Healthscope’s offer is between AU$4.30 and
AU$4.50 per share and shareholders will vote on the offer at a meeting in
August.
Reportedly, under the provision of the deal, there is a three-week
allowance for another bidder to take over the pharmacy and consumer
businesses.
The Troubled Company Reporter-Asia Pacific reported on May 24, 2007, that
Sigma Pharmaceuticals Ltd expressed its interest in taking over the
company's wholesale drugs and consumer businesses.
Along with the takeover are some executive changes, Mr. Saulwick adds.
Healthscope's managing director, Bruce Dixon, will run the enlarged
company, with Symbion managing director and chief executive Robert Cooke
taking on a part-time consultancy role for two years.
About Symbion Health
Melbourne-based Symbion Health Limited --
http://www.symbionhealth.com/-- formerly Mayne Group Limited, provides
health products and services. The principal activities of Symbion Health,
during the fiscal year ended June 30, 2006, consisted of diagnostic and
wellness products and services through its Pathology, Imaging, Medical
Centers, Pharmacy Services and Consumer divisions. Symbion Pathology owns
and operates private pathology practices, providing pathology services to
healthcare professionals and their patients. Symbion Medical Centers
provides local communities with healthcare and family medicine. Symbion
Imaging provides imaging services to patients on the eastern seaboard of
Australia. Symbion Pharmacy Services supplies a line of pharmaceuticals
and associated products to pharmacies. Symbion Consumer manufactures and
markets nutraceuticals (vitamins and mineral supplements).
On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating
of Symbion Health Limited on review for possible downgrade after the
company's announcement that it has received an ownership proposal from
Primary Health Care Limited (unrated).
WATERS NOMINEES: Members to Hold Final Meeting on June 29
---------------------------------------------------------
A final meeting will be held for the members of Waters Nominees Pty
Limited on June 29, 2007, at 10:00 a.m.
The members will receive at the meeting a report about the company’s
wind-up proceedings and property disposal.
The company’s liquidator is:
John Lord
PKF Chartered Accountants
1 Margaret Street, Level 10
Sydney, New South Wales 2000
Australia
About Waters Nominees
Waters Nominees Pty Limited provides business services. The company is
located in Victoria, Australia.
YANDOT PTY: Supreme Court Enters Wind-Up Order
----------------------------------------------
On April 27, 2007, the Supreme Court of New South Wales released an order
to wind up the operations of Yandot Pty Ltd.
Peter Hillig and Smith Hancock were appointed as liquidators.
The Liquidators can be reached at:
Peter Hillig
Smith Hancock
88 Phillip Street, Level 4
Parramatta, New South Wales 2150
Australia
About Yandot Pty
Located in Victoria, Australia, Yandot Pty Ltd is an investor relation
company.
================================
C H I N A & H O N G K O N G
================================
ARTPAC RESOURCES: Members’ Annual Meeting Set for June 8
--------------------------------------------------------
The members of Artpac Resources China Limited will have their annual
meeting on June 8, 2007, at 12:00 p.m., to receive the liquidator’s report
about the company’s wind-up proceedings and property disposal.
The meeting will be held on the 21st Floor of Skyline Commercial Centre at
71-77 Wing Lok Street in Sheung Wan, Hong Kong.
BLOUNT INT’L: March 31 Balance Sheet Upside-Down by US$98.4 Mil.
----------------------------------------------------------------
Blount International Inc.’s balance sheet at March 31, 2007, showed
US$447.6 million in total assets and US$545.9 million in total
liabilities, resulting in a US$98.4 million total stockholders’ deficit.
The company reported net income of US$4.7 million for the first quarter
ended March 31, 2007, compared to net income of
US$9 million in the comparable period in 2006. This year’s first quarter
results were adversely impacted by weak conditions in the North American
timber markets.
Sales for the quarter were US$144 million, compared to
US$163.8 million in last year’s first quarter. Operating income was
US$15.4 million, compared to US$22.3 million in the first quarter of 2006.
Commenting on the first quarter results, James S. Osterman, chairman and
chief executive officer, stated: “Our results for the first quarter
reflect the continuation of weak industry conditions in the North American
timber markets. Company-wide sales declined in the first quarter by 12%
from last year, as the outlook for United States housing starts and lumber
prices negatively impacted the demand for the timber-harvesting equipment
distributed by our Industrial and Power Equipment segment. This domestic
market weakness and some disruption caused by the relocation of a
distribution warehouse in March contributed to a 3% year over year decline
in our Outdoor Products Segment. Sales for this segment outside of North
America remained relatively strong and increased by 7% from last year’s
first quarter. Although our first quarter operating results were
disappointing in comparison to last year, the results were consistent with
our previously communicated view on full year 2007 financial performance.”
The Outdoor Products segment reported first quarter sales of
US$110.9 million, a 2.9% decrease from last year’s first quarter sales of
US$114.2 million. Contribution to operating income for this segment was
US$21.1 million, compared to last year’s US$24.8 million. Segment sales
declined in this year’s first quarter from last year as weaker North
American market conditions within the timber and lawn care industries
resulted in lower unit sales.
The Industrial and Power Equipment segment first quarter sales were
US$33.2 million compared to US$49.8 million in 2006, a 33.4% decrease.
Segment contribution to operating income was US$200,000 compared to US$3.3
million in the first quarter of 2006. A decline in unit sales of the
company’s timber harvesting products in the North America market resulted
in year-over-year sales and contribution declines.
Corporate expense was US$5.8 million in this year’s first quarter, equal
to last year. This year’s corporate expense included US$2.1 million in
stock compensation expense, a US$300,000 increase from last year.
Full-text copies of the company’s consolidated financial statements for
the quarter ended March 31, 2007, are available for free at
http://researcharchives.com/t/s?206a
Blount International Inc. (NYSE: BLT) -- http://www.blount.com/-- is a
diversified international company operating in two principal business
segments: Outdoor Products and Industrial and Power Equipment.
Blount manufactures its products in the United States, Canada, China, and
Brazil, and sells them in more than 100 countries.
BOMBARDIER INC: Earns US$79 Million in Quarter Ended April 30
-------------------------------------------------------------
Bombardier Inc. released financial results for the first quarter of fiscal
year 2008 -- three months ended April 30, 2007 -- that show substantial
improvement in many key areas.
Earnings before financing income, financing expense and income taxes grew
by US$105 million, to reach US$183 million. This resulted in an EBIT
margin of 4.6%, compared to 2.2% for the same period last fiscal year.
Similarly, net income increased by US$55 million to total
US$79 million.
Free cash flow (cash flows from operating activities less net
additions to property, plant and equipment) usage of US$154 million, after
payment of a discretionary pension fund contribution of US$174 million,
compares to a usage of US$539 million for the same period last fiscal
year. The overall order backlog also improved by US$4.7 billion, to
attain a record US$45.4 billion.
"We had a strong first quarter, with both groups contributing solid
results," observed Laurent Beaudoin, Chairman of the Board and Chief
Executive Officer, Bombardier Inc. "As both groups make progress toward
their EBIT targets, we're seeing overall improvement in profitability and
cash flow generation. At Aerospace, business aircraft continue to attract
a substantial level of new orders. We're now also seeing the U.S. airline
industry rebounding, as demonstrated by a higher level of regional
aircraft orders compared to last year. Meanwhile, our Transportation
group's order intake remains robust, as it continues to focus on its
margin and quality enhancement program," added Mr. Beaudoin. "With the
combination of our various initiatives yielding improved profitability,
and our strong backlog, we are well positioned to pursue our goal of
long-term sustainable growth."
Bombardier Inc. -- http://www.bombardier.com/-- (TSE:BBD.B)
manufactures innovative transportation solutions, from regional
aircraft and business jets to rail transportation equipment,
systems and services. Headquartered in Canada, the company also
has offices in the U.S., Northern Ireland, United Kingdom,
Germany, Switzerland, Sweden, Austria, China and Australia.
* * *
As reported in the Troubled Company Reporter on May 22, 2007, Standard &
Poor's Ratings Services revised the outlook on
Bombardier Inc. to stable from negative. At the same time, the
ratings, including the 'BB' long-term corporate credit rating on
Bombardier, were affirmed.
COUDERT BROS: Disclosure Statement Hearing Moved to June 15
-----------------------------------------------------------
The hearing to approve the disclosure statement describing Coudert
Brothers LLP’s Chapter 11 Plan of Liquidation was deferred from May 30,
2007, to June 15, 2007, Bill Rochelle of Bloomberg News reports.
In March 2007, Coudert filed with the Court a Chapter 11 Plan of
Liquidation stating that on the effective date of that Plan, the
liquidation trust agreement will be executed by the Debtor and the
liquidation trustee. Also on that date, all the estate's assets will vest
in the liquidation trust free and clear of all liens, claim and
encumbrances.
The Debtor and the Creditors Committee will jointly pick the
liquidation trustee 15 days before the confirmation hearing.
If a dispute arises, the Court will select from the candidates
submitted by the Debtor and the Committee.
Treatment of Claims
Under the Plan, each holder of Secured Claims and Priority
Non-Tax Claims will be paid in full. At the Liquidation
Trustee's option, these holders will receive:
i. cash;
ii. non-recourse conveyance of the Debtor's interest
and the collateral securing the their claims; or
iii. less favorable treatment as agreed to by the holders
and the liquidation trustee.
Holders of General Unsecured Claims and Partner Non-Profit Claims will
receive a pro rata share of the unsecured creditor fund.
In the event there exists any disputed Secured, Priority Non-Tax, General
Unsecured, and Partner Non-Profit claims, the liquidation trustee must
maintain cash in an amount equal to the portion of the disputed claims
reserve.
On the effective date, Convenience Claim holders will receive
cash in an aggregate amount equal to a percentage of the allowed
amount determined by the Debtor before the solicitation of the
Plan.
In addition, holders of Convenience, General Unsecured, and
Partner Profit Claims will be paid from the Unsecured Creditors
fund.
Holders of Insured Malpractice Claims will be paid solely
from the proceeds of any applicable policy with respect to the
insured portion of the claim. This holder will not receive any
distribution from the Unsecured Creditor fund.
Each holder of Partner Profit Claims, if any, will receive the
Debtor's surplus.
Holders of Interests will get nothing under the Plan.
The Unsecured Creditor Fund is the cash derived from Participating Party
Settlement Proceeds, liquidation of assets, and causes of action
recoveries, less any distributions or reserves on account of Secured
Claims, Administrative Claims, Priority Tax Claims, Priority Non-Tax
Claim, and Estate Expenses.
Participating Party Settlement Proceeds refers to cash that the
Liquidation Trustee received from a participating party under a
participating party agreement.
Coudert Brothers LLP was an international law firm specializing in complex
cross border transactions and dispute resolution. The firm had operations
in Australia and China. The Debtor filed for Chapter 11 protection on
Sept. 22, 2006 (Bankr. S.D.N.Y. Case No. 06-12226). John E. Jureller,
Jr., Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP,
represent the Debtor in its restructuring efforts. Brian F. Moore, Esq.,
and David J. Adler, Esq., at McCarter & English, LLP, represent the
Official Committee Of Unsecured Creditors. In its schedules of assets and
debts, Coudert listed total assets of US$29,968,033 and total debts of
US$18,261,380.
KAWAMURA CO: Creditors’ Meeting Set for Today
---------------------------------------------
The creditors of Kawamura Co., Limited will have a meeting on June 1,
2007, at 11:00 a.m., to determine whether or not to accept certain
accounts receivable to be bad debt.
The meeting will be held in Room 1005 of Allied Kajima Building at 138
Gloucester Road in Wanchai, Hong Kong.
KOPPERS HOLDINGS: Mar. 31 Balance Sheet Upside-Down by US$83.2MM
----------------------------------------------------------------
Koppers Holdings Inc. reported total assets of US$671.2 million, total
liabilities of US$741.4 million, and total stockholders' deficit of
US$83.2 million as of March 31, 2007.
The company’s sales for the quarter ended March 31, 2007, increased 21%,
or US$56.5 million, to US$321.1 million, as compared to US$264.6 million
for the prior year quarter. This increase was primarily a result of
higher sales in the Carbon Materials & Chemicals segment, which increased
29%, or US$44.5 million.
Net income for the first quarter of 2007 increased to US$10.5 million as
compared to a loss of US$6 million in the prior year quarter. Net income
for the quarter benefited from higher prices for Carbon Materials &
Chemicals and synergies related to the Reilly transaction, as well as
US$1.3 million of non-conventional fuel tax credits. Net income for the
prior year quarter was negatively impacted by US$18.9 million of pretax
charges related to the company’s initial public offering and plant
closings and restructurings. Adjusted net income, after excluding such
charges, was US$5.5 million for the quarter ended March 31, 2006.
Liquidity
The Koppers Inc.’s senior secured credit facility agreement, as amended,
provides for a revolving credit facility of up to US$125 million and term
loans of US$49 million at variable rates. The senior secured credit
facility expires in December 2009. Amounts outstanding under the senior
secured credit agreement are secured by a first priority lien on
substantially all of Koppers Inc.’s assets, including the assets of
certain significant subsidiaries.
As of March 31, 2007, the company had US$59.6 million of unused revolving
credit availability for working capital purposes after restrictions by
various debt covenants and certain letter of credit commitments. As of
March 31, 2007, US$20.4 million of commitments were utilized by
outstanding letters of credit. In addition, as of March 31, 2007, the
Company had outstanding term loans of US$49 million under the credit
facility.
The company’s estimated liquidity was US$85.6 million at
Dec. 31, 2006. The decrease in estimated liquidity from that date is
primarily due to a reduction in cash and cash equivalents.
As of March 31, 2007, the company had US$200 million aggregate amount of
common stock, debt securities, preferred stock, depositary shares and
warrants available to be issued under its US$200 million universal shelf
registration statement filed in 2006.
The company believes that its cash flow from operations and available
borrowings under the senior secured credit facility will be sufficient to
fund its anticipated liquidity requirements for at least the next 12
months.
A full-text copy of the company’s first quarter report is available for
free at http://ResearchArchives.com/t/s?206b
Commenting on the quarter, president and chief executive officer Walter W.
Turner said, “Our first quarter exceeded our expectations, reflecting the
synergies derived from the Reilly transaction as well as overall strong
product demand. Looking ahead, we are optimistic about 2007 as we
anticipate a full year of benefits from the Reilly transaction, additional
sales and profit as a result of the expansion of our carbon black plant in
Australia, and the beginning of construction of our new joint venture in
China, which we anticipate coming on-line by the end of 2008. We continue
to benefit from strong demand within our primary end markets, aluminum and
railroads, as well as our focus on enhancing cash flow and our strict
adherence to safety, health and environmental regulations.”
Mr. Turner continued, “Based on the strong results in the first quarter
and what we see as an improved 2007 operating environment, in conjunction
with the successful completion of our profit improvement initiatives, we
are modifying our 2007 guidance for sales growth from between 7% and 10%
to growth to between 10% and 13% and adjusted EBITDA growth from 8% to 11%
to growth between 11% and 14%.”
About Koppers
Headquartered in Pittsburgh, Pennysylvania, Koppers Holdings Inc. (NYSE:
KOP) -- http://www.koppers.com/-- is a global integrated producer of
carbon compounds and treated wood products. Including its joint ventures,
Koppers operates facilities in the United States, United Kingdom, Denmark,
Australia, China, the Pacific Rim and South Africa.
MARSH & MCLENNAN: Members’ Final Meeting Set for June 26
--------------------------------------------------------
A final meeting will be held for the members of Marsh & Mclennan Limited
on June 26, 2007, at 10:30 a.m., to hear the liquidator’s report about the
company’s wind-up proceedings and property disposal.
MIXMAX GARMENTS: Creditors’ Proofs of Debt Due by June 25
---------------------------------------------------------
The creditors of Mixmax Garments Limited are required to file their proofs
of debt by June 25, 2007, to be included in the company’s dividend
distribution.
The company’s liquidator is:
Kwok Yuen Man
The Lee Gardens, 34th Floor
33 Hysan Avenue, Causeway Bay
Hong Kong
TITANIUM METALS: Earns US$76.4 Million in Quarter Ended March 31
----------------------------------------------------------------
Titanium Metals Corporation reported net income of US$76.4 million for the
quarter ended March 31, 2007, compared to US$58.9 million for the quarter
ended March 31, 2006.
The company’s net sales increased 19% from US$286.9 million during the
first quarter of 2006 to US$341.7 million during the first quarter of 2007
due primarily to increases in average selling prices and favorable product
mix. Melted product average selling prices increased 37% and mill product
average selling prices increased 20% during the first quarter of 2007 as
compared to the year-ago period.
Operating income increased 22% to US$116.2 million for the quarter ended
March 31, 2007, compared to US$95.1 million for the quarter ended March
31, 2006. In addition to higher production costs associated with the
shift in product mix comparing the first quarters of 2006 and 2007, cost
of sales also increased due to higher costs of certain raw materials,
including titanium sponge. Profitability was favorably impacted by TIMET’s
increased production levels, as overall plant operating rates improved to
95% in the first quarter of 2007 compared to 88% in the first quarter of
2006. Despite the increased cost of sales associated with higher raw
material and production costs, profitability improved, as the favorable
effect of higher average selling prices and TIMET’s improved plant
operating rates more than offset the effect of higher raw material and
production costs.
The company’s sales order backlog at the end of March 2007 was
US$1 billion compared to US$1.1 billion at the end of December 2006 and
US$900 million at the end of March 2006.
Balance Sheet and Liquidity
The company's balance sheet as of March 31, 2007, reflected
US$1.2 billion in total assets, US$338 million in total liabilities, and
US$878.9 million in total stockholders' equity.
At March 31, 2007, the company had credit available under existing U.S.
and European credit facilities of US$229 million, and it had an aggregate
of US$75.6 million of cash and cash equivalents. The company’s U.S.
credit facility matures in February 2011, and its U.K. credit facility
matures in April 2008.
Based upon the company’s expectations of its operating performance,
anticipated demands on its cash resources, borrowing availability under
its existing credit facilities and anticipated borrowing availability
after the maturity of these credit facilities, the company expects to have
sufficient liquidity to meet short-term obligations and its long-term
obligations, including planned capacity expansion projects. If actual
developments differ from the company’s expectations, the company said its
liquidity could be adversely affected.
The company intends to invest a total of about US$150 million to US$200
million for capital expenditures during 2007, primarily for improvements
and upgrades to existing productive capacity, including expansions of
existing sponge and melting capacity, building new sponge capacity and
other additions of plant machinery and equipment. The company has spent
US$13.3 million on capital expenditures as of March 31, 2007.
A full-text copy of the company’s first quarter report is available for
free at http://ResearchArchives.com/t/s?2063
Steven L. Watson, vice chairman and chief executive officer, said, “TIMET
achieved record levels for quarterly net sales and operating income while
maintaining overall sales volumes. Demand continued to be strong across
all of our end markets, with a slight improvement in mix of mill products
and a favorable mix of aerospace quality plate and sheet products
contributing to the improved operating results. These factors added to
continuing improvement in prices and favorably impacted operating margins
during the first quarter of 2007. Expansion of our productive capacity
across all areas of our manufacturing operations continues. Our 4,000
metric ton VDP sponge expansion (Henderson, Nevada) is now completed, and
commercial production commenced in April 2007. We expect to be operating
at full annual capacity of approximately 12,600 metric tons by the end of
the third quarter of 2007. Our electron beam cold hearth addition
(Morgantown, Pennsylvania) of about 8,500 metric tons of melted product
annual capacity is on schedule for an anticipated completion date of early
2008. We have commenced design and engineering efforts for a new VDP
sponge plant, which could initially provide an additional 10,000 to 20,000
metric tons of annual capacity of premium-grade sponge as early as the end
of 2009.
“We have also entered into an extension of an existing third party sponge
supply agreement that will provide for the ability to purchase up to 2,600
metric tons of additional sponge beginning in 2009 through 2016. We
believe these and other efforts will help insure that we will be able to
maintain certainty, quality and reliability of supply for our customers.
“We are focusing on initiatives that will increase our participation in
downstream value-added products and capitalize on our ongoing efforts to
increase our existing sponge and melt capacity. We are also exploring
other opportunities to expand our existing production and conversion
capacities through internal expansion and long-term third party
arrangements, as well as potential joint ventures and acquisitions. We
will continue our efforts to focus on operational excellence and
efficiency throughout our organization, which will add benefits as we
bring additional capacity online, initiate planned improvements and
expansions and strategically invest in our business.”
About Titanium Metals Corp.
Headquartered in Dallas, Texas, Titanium Metals Corp. (NYSE: TIE) --
http://www.timet.com/-- produces titanium melted and mill products. It
offers titanium sponge, melted products, mill products, and industrial
fabrications. The company has substantial operations located in the
United Kingdom, France and Italy and sales offices in Australia, China,
Japan, Saudi Arabia, India, and Taiwan.
* * *
Titanium Metals carries Moody's Investors Services’ Caa1 Issuer Rating and
B3 Long-Term Corporate Family Rating.
UNIKITAS AND CO: Members Pass Resolution to Wind Up Firm
--------------------------------------------------------
At an extraordinary general meeting held on May 18, 2007, the members of
Unikitas & Co. Limited passed a resolution winding up the company’s
operations and appointed Keiko Ishikawa as liquidator.
The Liquidator can be reached at:
Keiko Ishikawa
Lawision Building, 13th Floor
No. 37 Hillwood Road
Tsimshatsui, Kowloon
Hong Kong
=========
I N D I A
=========
BRITISH AIRWAYS: Displeased by Air Jamaica's London Route Sale
--------------------------------------------------------------
Radio Jamaica reports that Air Jamaica's surrendering its London route to
Virgin Atlantic has frustrated British Airways.
British Airways admitted to Radio Jamaica that it was disappointed at the
decision, especially since it has served the Jamaican market for 60 years.
During that period it has maintained service through good and bad times.
British Airways said in a release that it remained loyal to the Jamaican
market and has had a history of cooperation with Jamaicans and their
government.
According to Radio Jamaica, British Airways stated that it was still
interested in working with the government and Air Jamaica to further
develop its services.
British Airways told Radio Jamaica that it would set up a more sustainable
business between the UK and Jamaica if the decision to sell Air Jamaica's
London route had worked in its favor.
Meanwhile, Air Jamaica Chief Executive Officer Michael Conway told Radio
Jamaica that the airline will receive a fair deal from the sale of its
London route to Virgin Atlantic.
Air Jamaica refused to tell Radio Jamaica how much it will collect from
the sale of its London route.
"Well that information is propriety, its part of the overall transaction
but we are confident that we received a fair market value rate for the
sale of those slots. The conditions of the deal are that the sale of the
slots was merely one component of it, there is an extensive five year code
share agreement that goes along with it," Mr. Conway commented to Radio
Jamaica.
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to own Air Jamaica
permanently.
About British Airways
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa, the rating
agency confirmed its Ba1 Corporate Family Rating for British
Airways Plc.
Moody's also assigned a Ba1 Probability-of-Default Rating to the
company.
* Issuer: British Airways, Plc
Projected
Old New LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ----------------
GBP100-million 10.875%
Sr. Unsec. Regular
Bond/Debenture
Due 2008 Ba2 Ba2 LGD5 84%
GBP250-million 7.25%
Sr. Unsec. Regular
Bond/Debenture
Due 2016 Ba2 Ba2 LGD5 84%
As reported in the TCR-Europe on March 27, 2007, Standard &
Poor's Ratings Services said that its 'BB+' long-term corporate
credit rating on British Airways PLC remains on CreditWatch,
with positive implications, following a vote on March 22 by EU
ministers approving a proposed "open skies" aviation treaty with
the U.S.
CABLE & WIRELESS: Deutsche Bank Maintains Buy Rating on Firm
------------------------------------------------------------
Deutsche Bank analyst Matthew Bloxham has kept his "buy" rating on Cable &
Wireless Plc's shares, Newratings.com reports.
Mr. Bloxham said in a research note that Cable & Wireless has reported
strong results for the fiscal year 2007. Its profitability and cash
management were ahead of expectations.
Mr. Bloxham told Newratings.com that Cable & Wireless’ fiscal year 2008
guidance shows improving momentum.
The earnings per share estimate for fiscal year 2008 was increased by 5%
compared to this year to show better revenue growth prospects, while the
estimate for fiscal year was decreased by 13% to indicate
slower-than-expected recovery in the UK (LLU) Access business as well as
the start-up costs related to the new Virgin Media wholesale contract,
Newratings.com states.
Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, the Cayman Islands and the Middle East.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the corporate families in the Telecommunications, Media
and Technology sectors last week, the
rating agency confirmed its Ba3 Corporate Family Rating for
Cable & Wireless Plc.
Moody's also assigned a Ba3 Probability-of-Default rating to the
company.
* Issuer: Cable & Wireless Plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
4% Senior Unsecured
Conv./Exch.
Bond/Debenture
Due 2010 B1 LGD4 60%
GBP200 million
8.75% Senior
Unsecured Regular
Bond/Debenture
Due 2012 B1 LGD4 60%
* Issuer: Cable & Wireless International Finance B.V.
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
GBP200 million
8.625% Senior Unsecured
Regular Bond/Debenture
Due 2019 B1 LGD4 60%
Cable & Wireless Plc's long-term and short-term foreign issuer
credit carry Standard & Poor's BB- ratings. Its short-term
foreign and local issuer credit were rated at B. The outlook is
negative.
Headquartered in London, Cable & Wireless PLC --
http://www.cw.com/new/-- provides voice, data and IP
(Internet Protocol) services to business and residential
customers, as well as services to other telecoms carriers, mobile
operators and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, China, India, the
Cayman Islands and the Middle East.
MODI RUBBER: Net Loss Widens to INR27.9MM in Qtr. Ended March 31
----------------------------------------------------------------
Modi Rubber Limited’s net loss grew to INR27.86 million in the three
months ended March 31, 2007, twice the INR13.52-million net loss booked in
the same quarter in 2006. Total income decreased 18% to INR3.75 million
while expenditures rose 113% to
INR24.55 million in January-March 2007.
During the quarter under review, the company booked interest charges
totaling INR6.73 million, depreciation of INR330,000 and zero taxes.
For the year ended March 31, 2007, the company incurred a net loss of
INR12.92 million on revenues of INR97.99 million. With operating
expenditures totaling INR83.88 million, the company booked an operating
profit of INR12.11 million in FY2007.
Headquartered in Delhi, India, Modi Rubber Limited --
http://www.mepc.com/-- is principally involved in the
development, manufacture and distribution of automobile tires,
tubes and flaps. The company's financial performance has not
been all that impressive, as it continuously reported losses in
the past years, which eventually lead to its closure in 2001.
The financial health of its subsidiaries was also in question
with Modistone being referred to the Board of Industrial and
Financial Reconstruction due to the erosion in net worth.
Modi Rubber's equity shares were the delisted from the Uttar
Pradesh Stock Exhange, Kanpur. The delisting, effective
Feb. 22, 2006, came after news that 44% stake in the rubber
manufacturer was acquired by a group of financial institutions.
The Board for Industrial and Financial Reconstruction on May 23,
2006, declared the company as "Sick Company" and appointed IDBI
Bank has been appointed as the operating agency. By BIFR order dated Oct.
9, 2006, the State Bank of India has been appointed as operating agency
for the company and was directed to prepare a revival scheme. A revised
draft revival scheme of Modi Rubber was submitted to its board of
directors at its meeting on
March 10, 2007, which board gave unanimous approval. The same has been
submitted to SBI and BIFR on March 15, 2007, for further action.
MYSORE CEMENTS: Turns Around With INR318MM Profit in 1st Quarter
----------------------------------------------------------------
Mysore Cements Ltd turned around in the three months ended
March 31, 2007, with a net profit of INR317.99 million, compared to the
net loss of INR313.11 million in the same period in 2006.
Even with the decrease in revenues -- total income decreased by 3% to
INR1.47 billion in the January-March 2007 quarter -- the company achieved
a positive bottom line because expenditures decreased more (by 14%) from
INR1.28 billion in the quarter ended March 31, 2006, to INR1.1 billion in
the latest quarter under review.
Other charges for the quarter also dipped:
Jan.-Mar. ‘07 Jan.-Mar. ‘06
------------- -------------
Interest Charges INR7.38 million INR63.87 million
Depreciation 40.06 million 43.52 million
Taxes 1.73 million 3.76 million
The company’s financial year-end was previously March 31. However, the
board of directors decided to align the financial year-end with Heidelberg
Cement group’s reporting period so the company adopted a calendar year
end.
Therefore the last audited period is the nine-month period from April 1,
2006, to December 31, 2006. For the April-December 2006 period, the
company booked a net loss of INR98.62 million on revenues totaling INR4.22
billion.
Mysore Cements Ltd. is engaged in the cement business. Its
products include cement, sponge iron and M.S. ingots.
The company reported at least two consecutive yearly net losses --
INR899.09 million in the year ended March 31, 2006, and
INR247.87 million in the year ended March 31, 2005.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Expands Triple Play Services in Chile
-----------------------------------------------------
Alcatel-Lucent has signed an agreement with Telefonica del Sur, a leading
provider of Internet-based multimedia and communication services in Latin
America, to supply a converged IP/MPLS network that will deliver high
quality data and Internet services to business and residential customers.
Covering a large area in southern Chile, Alcatel-Lucent’s IP/MPLS advanced
network will enable Telefonica del Sur to benefit from a wider variety of
service offerings and increased service flexibility. Telefonica del Sur
will be able to provide triple play services to subscribers from regions
that cover the cities of Concepcion, Temuco, Valdivia, Osorno and Puerto
Montt. Deployment is expected to begin in the summer of 2007, with
service launch slated for early in Q4.
Alcatel-Lucent will install the 7750 Service Router for the backbone
network. Network management will be handled by the Alcatel-Lucent 5620
Service Aware Manager, which automates tasks while supporting the
introduction and administration of new services.
“With Alcatel-Lucent’s converged, all-IP, multiservice infrastructure,
Telefonica del Sur is moving forward in its efforts to enhance customer
satisfaction and to win new customers”, said Jorge Atton, CEO of
Telefónica del Sur. “This new network, together with an aggressive
deployment of urban optical fiber and IP DSL platform, will strengthen our
competitiveness by offering subscribers a variety of converged services.”
“Alcatel-Lucent’s IP/MPLS solution gives Telefonica del Sur the service
flexibility, continuity and richness that are critical to ensuring
customer satisfaction and market leadership,” said Olivier Picard,
President of Alcatel-Lucent’s Europe and South activities.
“Alcatel-Lucent also offers unparalleled triple play integration
experience gained from more than 40 projects around the globe.”
According to data from Ovum-RHK for the global IP/MPLS Edge market,
Alcatel-Lucent has strengthened its #2 position during the fourth quarter
of 2006 and established itself as the clear alternative in IP by securing
a solid #2 position for the full year. Over 160 service providers in more
than 60 countries around the world have selected the Alcatel-Lucent IP
portfolio as key elements of their IP transformation, including massive,
multi-year projects at AT&T, BT and Telstra. In the past six months
Alcatel-Lucent has announced new Service Provider IP transformation
deployments at Cable & Wireless, China Mobile, CTM-Macau, Hawaiian Telcom,
Indosat, SaskTel, Telefónica Latin America, Telecom Malagasy, Vodafone and
Wind Telecommunications.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users. Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia,
Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent
Technologies Inc. completed their merger transaction, and began
operations as a communication solutions provider under the name
Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
INDOFOOD SUSKES: Expects 6% Increase in Noodles’ Sale Volume
------------------------------------------------------------
PT Indofood Sukses Makmur Tbk’s Vice President Director Franciscus
Welirang said that in line with economic growth they expect the company’s
instant noodle sales volumes to increase 6% this year, Reuters reports.
According to the report, the firm planned to boost its instant noodle
capacity to 14.5 billion packs per year compared to 13.5 billion in 2006
to meet growing demand. In 2006, the company produced 11.82 billion packs
of instant noodles.
Indofood posted a five-fold rise in net profit in 2006 on firmer sales and
after earnings rebounded after following hefty one-off charges in 2005,
the report adds.
About Indofood Sukses
PT Indofood Sukses Makmur Tbk (Indofood) --
http://www.indofood.co.id/-- is Indonesia's premier processed
foods company. Its products, including instant noodles, wheat
flour, branded edible oils and fats, baby foods, snack foods,
food seasoning, lead domestic market shares. Indofood is
currently the largest instant noodles manufacturer and the
largest flour miller in the world, with installed capacities of
approximately 13 billion packs and 3.6 million tons per annum,
respectively. Indofood's products are distributed mainly
through its subsidiaries, including Indomarco, independent
distributors, as well as some cooperatives, which bring the
Company's products to more than 150,000 retail outlets in the
country. Total employees as of December 1999 were 42,172. A
combination of shrinking profits, escalating costs, losses,
competition and a declining rupiah prompted the Company to cut
around 2,000 or 4.4% of its workforce and slash 40 products from
its range in 2005.
In 2005, Indofood's total outstanding debt fell to IDR6.8 trillion from
IDR7.9 trillion in 2004. The United States
dollar-denominated debts also fell to US$190.6 million in the
same period from US$317.4 million in 2004.
Indofood has bought back US$166.3 million (IDR1.55 trillion) of
its US$280 million (IDR2.61 trillion) Eurobonds due in 2007. The
Company also plans to redeem all the outstanding balance of the
Eurobonds this year.
The Troubled Company Reporter - Asia Pacific reported on
July 19, 2006, that Standard & Poor's Ratings Services withdrew its 'B'
corporate credit rating on Indofood at the company's
request.
INCO LTD: To Revise Current Royalty System
------------------------------------------
The Indonesian government has asked PT International Nickel Indonesia to
revise the current royalty system so that it will earn more revenues from
rising nickel prices, Reuters reports.
According to the report, the government wants Inco's US$78 a tonne royalty
payment to be changed into a flexible one in line with nickel price
movements, said Simon Sembiring, director general of mineral resources.
The government expects the new royalty to take effect in 2008.
"The government wants to change the royalty system because they did not
expect nickel prices will surge. If the government wants a fluctuating
royalty it will reduce our margin," said Arief Siregar, Inco Indonesia's
president director, the report notes.
Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N)
-- http://www.inco.com/-- produces nickel, which is used primarily for
manufacturing stainless steel and batteries. Inco also mines and
processes copper, gold, cobalt, and platinum group metals. It makes
nickel battery materials and nickel foams, flakes, and powders for use in
catalysts, electronics, and paints. Sulphuric acid and liquid sulphur
dioxide are produced as byproducts. The company's primary mining and
processing operations are in Canada, Indonesia, and the U.K.
Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.
TELKOM INDONESIA: To Spend US$2 Billion on Expansion
----------------------------------------------------
PT Telekomunikasi Indonesia Tbk may spend as much as US$2 billion this
year to expand its networks and fend off competition, The Herald Tribune
reports.
According to the report, the company expects sales to rise more than 20%
in 2007 due to the addition of millions of users to its mobile network.
The paper relates that Telkom is also planning to expand its pay
television, broadband, and satellite businesses but is not in a hurry to
expand regionally because of the tremendous opportunities for domestic
growth. The company still has to make sure all the domestic segments are
captured.
Telkom President Commissioner, Tanri Abeng, told the Tribune that they
expect full-year earnings to increase by "double digits," even as profit
gains may be limited by narrower margins, but declining to give specific
projections.
About Telkom Indonesia
Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk --
http://www.telkom-indonesia.com/-- provides local and long distance
telephone service in Indonesia. Known as Telkom, the company also offers
fixed wireless service, leased lines, and data transport through
affiliates.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Fitch Ratings revised the outlook on
Telekomunikasi Indonesia's long-term foreign and local currency
issuer default ratings to positive from stable and affirmed the
ratings at 'BB-'.
Moody's Investors Service gave Telekomunikasi Indonesia a Ba1
local currency corporate family rating.
Standard & Poor's Ratings Services gave the company 'BB+'
foreign and local currency corporate credit rating.
GOODYEAR TIRE: Fitch Lifts Issuer Default Rating to B+
------------------------------------------------------
Fitch Ratings has upgraded the Issuer Default Rating for The Goodyear Tire
& Rubber Company to 'B+' from 'B'. In addition, these debt ratings have
been upgraded:
The Goodyear Tire & Rubber Company
-- Issuer Default Rating 'B+' from 'B';
-- US$1.5 billion first lien credit facility to 'BB+/RR1'
from 'BB/RR1';
-- US$1.2 billion second lien term loan to 'BB+/RR1' from
'BB/RR1';
-- US$300 million third lien term loan to 'BB-/RR3' from
'B/RR4';
-- US$650 million third lien senior secured notes to 'BB-
/RR3' from 'B/RR4';
-- Senior unsecured debt to 'B-/RR6' from 'CCC+/RR6'.
Goodyear Dunlop Tires Europe B.V.
-- EUR505 million European secured credit facilities to
'BB+/RR1' from 'BB/RR1'.
The Rating Outlook is Positive. GT had approximately $5.8 billion of debt
outstanding at March 31, 2007.
The rating upgrades reflect the positive impact on GT's balance sheet of
the recent sale of common stock for approximately $834 million in net
proceeds. GT used proceeds from the sale to redeem US$175 million of
outstanding 8.625% notes due in 2011 and US$140 million of 9% notes due in
2015. The ratings and Outlook also incorporate GT's pending sale of its
Engineered Products business for nearly US$1.5 billion, which was
announced in March 2007. The proceeds from both transactions strengthen
GT's liquidity as it recovers from the labor strike in 2006, continues
with its multi-year program to reduce its cost structure, and further
implements its strategy to exit certain segments of the private label tire
business and expand its higher-margin premium tire business.
GT has made meaningful progress toward its goals but significant
challenges remain with respect to high material costs, achieving capacity
reductions including the closing of the Tyler Texas plant in 2008, and a
highly competitive global tire market. In addition, GT faces substantial
cash requirements including its agreement to fund a VEBA trust for US$1
billion, rebuild inventory, and fund capital expenditures and pension
contributions. The company expects pension contributions to decline after
2007, and GT would realize annual cash savings from the transfer of OPEB
liabilities to the VEBA trust assuming it is approved.
As a result of ongoing restructuring and other special items such as the
VEBA trust, GT's free cash flow in 2007 is likely to remain weak.
However, the Positive Outlook incorporates Fitch's view that GT will
attain its targeted cost savings that would support stronger cash flow in
2008 and additional debt reduction consistent with the company's goals.
The settlement of the labor strike at the end of 2006 reinforced GT's
ability to address its high-cost structure in North America . Partly as a
result of its new labor agreement, GT expanded its cost reduction program
to at least US$1.8 billion over a four year period through 2009. The
company's ratings and/or Outlook will be contingent on realizing stronger
margins in North America , generating higher levels of free cash flow, and
maintaining a competitive position in the global tire market.
In April 2007, GT restated and extended its bank facilities that provide
more flexible terms, although the facilities remain secured. The amounts
of the facilities were generally unchanged; however, GT's third-lien bank
term loan was not amended and the term loan portion of GDTE's EUR505
million first-lien credit facilities was converted into a revolver.
Fitch's recovery ratings for GT's debt remain unchanged with the exception
of the third lien debt. The improvement in the recovery rating to 'RR3'
reflects expectations for stronger operating results as GT makes further
progress in reducing costs and paying down debt.
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,and
Thailand. Goodyear employs more than 80,000 people worldwide.
* * *
Moody's Investors Service affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1. Ratings on Goodyear's
existing secured and unsecured obligations were also affirmed,
as was the company's Speculative Grade Liquidity rating of
SGL-2. The outlook has reverted to stable from negative.
In January 2007, Standard & Poor's Ratings Services affirmed its 'B+'
corporate credit and other ratings on Goodyear Tire & Rubber Co. and
removed them from CreditWatch where they were placed with negative
implications on Oct. 16, 2006, as a result of the labor dispute at several
of the company's North American plants.
PHILLIPS-VAN HEUSEN: Earns US$53 Million in Quarter Ended May 6
---------------------------------------------------------------
Phillips-Van Heusen Corporation reported a net income of
US$53 million on US$591.9 million of net revenues for the fiscal quarterly
period ended May 6, 2007, compared to a net income of US$45.5 million on
US$506.4 of total net revenues for the three-month fiscal period ended
April 30, 2006.
First quarter 2007 earnings includes US$1.9 million of pre-tax income,
comprised of a US$3.3 million gain associated with the release of cash
held in escrow in connection with the sale in the first quarter of 2006 of
minority interests in certain entities, offset in part by US$1.4 million
of start-up costs associated with the company's Timberland wholesale
sportswear business and Calvin Klein better specialty retail stores.
Aside from this increase to earnings, the first quarter earnings per share
improvement was driven by a 17% revenue increase, fueled by a 37% increase
in Calvin Klein royalty revenues. Gross margin improved 150 basis points,
due principally to the growth in Calvin Klein royalty revenue and strong
product sell-throughs in the company's wholesale dress shirt and outlet
retail businesses.
Partially offsetting these increases was a decrease in gross margin in the
company's wholesale sportswear business, which was negatively impacted by
the overall weak retail environment resulting in slower than planned
sell-throughs at customer accounts.
Total revenues in the first quarter of 2007 increased 17% to US$591.9
million from US$506.4 million in the prior year. Revenues increased 43%
in the company's Calvin Klein licensing business and 14% in the company's
combined wholesale and retail business. The strong increase in the Calvin
Klein licensing business was driven by excellent performance in the
fragrance business, which experienced the successful global launch of the
new CKIN2U fragrance line for both men and women, as well as the continued
strength in sales of both the men's and women's euphoria fragrance line.
Calvin Klein licensing revenues also increased as a result of royalties
generated from the multiple new licensed product categories launched over
the past few years and from strong performances in jeans and underwear.
The growth in the company's wholesale and retail legacy businesses was
primarily due to the newly-acquired neckwear business and comparable store
sales growth of 7% in the company's outlet retail business. Due to the
53rd week in fiscal 2006, first quarter 2007 comparable store sales are
more appropriately compared with the thirteen week period ended May 7,
2006 . On this shifted basis, comparable store sales increased 4%.
Receivables ended the quarter 24% above the prior year level and were in
line with the first quarter revenue growth exhibited by the company's
wholesale and licensing businesses. Inventories increased 21% to end the
quarter on plan and in line with anticipated sales growth for the second
quarter.
Commenting on these results, Emanuel Chirico, Chief Executive Officer,
noted, "We are extremely pleased with our first quarter results. Despite
the challenges the overall retail environment has been experiencing, we
were able to exceed our previous earnings guidance. Our diversification
strategy of marketing our nationally recognized brands across multiple
channels of distribution is working and continues to benefit our bottom
line. The global demand for the Calvin Klein brand continues to grow as we
add new product categories and enter new markets. This comes in addition
to strong growth in the Calvin Klein brand's largest businesses --
fragrance, jeans and underwear."
Mr. Chirico added, "The integration of the Superba neckwear operations is
substantially complete and the performance of this business has exceeded
our expectations. We continue to look forward to the opportunities
provided by layering on additional neckwear brands over time, as well as
exploiting the benefits of our unique positioning of being able to market
dress shirts and neckwear together."
Mr. Chirico concluded, "We will continue this year to invest significantly
in both the people and infrastructure that are necessary to support our
multiple new growth initiatives, our heritage brand legacy businesses and
our Calvin Klein licensing business. We feel these investments enhance
not only the long-term strength of our brands, but enable us to develop
our new initiatives and explore future growth opportunities which support
our long-term earnings growth targets."
The company projects total revenues for the full year 2007 to be
approximately US$2.41 billion, which represents an increase of 15% over
2006. Second quarter 2007 revenues are expected to be approximately
US$545 million, which represents an increase of 19% over 2006.
About Phillips-Van Heusen
Phillips-Van Heusen Corporation -- http://www.pvh.com/-- owns
and markets the Calvin Klein brand worldwide. It is a shirt
company that markets a variety of goods under its own brands:
Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co.,
Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole,
BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael
Kors, Chaps and Donald J. Trump Signature.
It has operations in the Asia-Pacific region, including Indonesia, China,
Philippines, Malaysia, and Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 14, 2006, that Moody's Investors Service upgraded Phillips
Van Heusen Corporation's corporate family rating to Ba2 from
Ba3. The company's senior secured notes were upgraded to Baa3
from Ba1 and the company's senior unsecured notes were upgraded
to Ba3 from B1. The rating outlook is stable, reflecting
Moody's expectations that the company will sustain financial
metrics appropriate for the rating category.
=========
J A P A N
=========
ADVANCED MEDICAL: Names Robert J. Palmisano as Director
-------------------------------------------------------
Advanced Medical Optics Inc. has named Robert J. Palmisano as board of
director at its annual meeting of stockholders.
Mr. Palmisano, 62, most recently served as the president, chief executive
officer and director of IntraLase Corp., which the company acquired on
April 2, 2007.
“Bob brings a wealth of industry and management experience to AMO and we
are pleased to welcome him to the board,” said AMO Chairman, President and
CEO Jim Mazzo. His leadership and view of the future of the global
ophthalmic market were integral to IntraLase’s success. We look forward
to his counsel and guidance as an AMO director.”
The company said that Mr. Palmisano joined IntraLase Corp. as president,
chief executive officer and a director in April 2003. From April 2001 to
April 2003, Mr. Palmisano was the president, chief executive officer and a
director of MacroChem Corporation, a development stage pharmaceutical
corporation.
Additionally, from April 1997 to January 2001, Mr. Palmisano served as
president and chief executive officer and a director of Summit Autonomous,
Inc., a global medical products company that was acquired by Alcon, Inc.
in October 2000.
Before 1997, Mr. Palmisano held various executive positions with Bausch &
Lomb Incorporated. He earned his bachelor’s degree in political science
from Providence College.
About Advanced Medical
Headquartered in Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures and
markets ophthalmic surgical and contact lens care products. The company
has operations in Germany, Japan, Ireland, Puerto Rico and Brazil.
The Troubled Company Reporter – Asia Pacific reported that in connection
with Moody's Investors Service's implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology, the
rating agency confirmed its B1 Corporate Family Rating for Advanced
Medical Optics Inc. Additionally, Moody's revised its
probability-of-default ratings and assigned loss-given-default ratings on
these loans and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior secured
revolving credit
facility B1 Ba1 LGD1 7%
2.5% convertible
senior subordinated
notes B3 B2 LGD4 66%
ADVANCED MEDICAL: Recall Prompts Moody’s to Review Low-B Ratings
----------------------------------------------------------------
Moody's Investors Service placed the ratings of Advanced Medical Optics,
Inc. on review for possible downgrade following AMO's announcement that it
voluntarily withdrew its Complete MoisturePlus contact lens solution based
on information received from the U.S. Centers for Disease Control and
Prevention regarding Acanthamoeba keratitis infections from Acanthamoeba
microorganism.
Acanthamoeba is a microorganism commonly found in water, soil, sewage
systems, cooling towers, and heating/ventilation/air conditioning systems.
AK is a rare, but serious, infection of the cornea. For the fiscal year
ended Dec. 31, 2006, the Complete MoisturePlus contact lens solution
accounted for approximately US$105.7 million, or 10%, of consolidated
sales.
Recently, AMO announced its intention to enter the "go shop" process for
Bausch & Lomb Incorporated. The company has announced only the intention
and has not officially entered a bid for BOL.
Sidney Matti, Analyst, stated that, "The review for possible downgrade
will focus primarily on the financial effects, both revenue and cost,
associated with the recall of the Complete MoisturePlus product and the
possible consequences for the company's financial flexibility."
These ratings were placed on review for possible downgrade:
-- B1 Corporate Family Rating;
-- B1 Probability of Default rating;
-- Ba1 (LGD2/14%) rating on US$300 million senior secured
revolver due 2013;
-- Ba1 (LGD2/14%) rating on US$450 million senior secured
term loan B due 2014;
-- B1 (LGD4/50%) rating on US$250 million senior subordinated
notes due 2017; and
-- B3 (LGD5/81%) rating on US$251 million convertible senior
subordinated notes due 2024.
Headquartered in Santa Ana, California, Advanced Medical Optics --
http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures and markets
ophthalmic surgical and contact lens care products. The company has
operations in Germany, Japan, Ireland, Puerto Rico and Brazil.
About Advanced Medical
Headquartered in Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures and
markets ophthalmic surgical and contact lens care products. The company
has operations in Germany, Japan, Ireland, Puerto Rico and Brazil.
The Troubled Company Reporter – Asia Pacific reported that in connection
with Moody's Investors Service's implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology, the
rating agency confirmed its B1 Corporate Family Rating for Advanced
Medical Optics Inc. Additionally, Moody's revised its
probability-of-default ratings and assigned loss-given-default ratings on
these loans and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior secured
revolving credit
facility B1 Ba1 LGD1 7%
2.5% convertible
senior subordinated
notes B3 B2 LGD4 66%
FORD MOTOR: Planning To Sell Volvo
----------------------------------
Ford Motor Co. is considering the sale of its Swedish carmaker Volvo,
Goteborgs Posten reports.
Sources told Goteborgs Posten that the German carmaker BMW AG could buy
Volvo, which is a part of Ford Motor's Premier Automotive Group.
A report in The Financial Times confirmed BMW's interest in Volvo.
Ford Motor has been incurring losses due to decreasing sales and
increasing cost in production, Newratings.com states.
Company Denies Talks with BMW
Ford Motor Company has denied reports that it is in unofficial discussions
with German auto maker BMW to sell its Swedish unit Volvo Car Corp,
various papers disclose.
Analysts say that the sale of Volvo could raise about US$8 billion,
Poornima Gupta of Reuters reports.
“Ford is not in discussions with BMW or any other carmaker regarding
interest in the Volvo Car Corp.," Ford spokesman John Gardiner said,
reading from a statement. "We have seen this kind of speculation for the
past year, as Ford Motor Company has been assessing our operations and
portfolio -- as any good business does and we will continue to do."
According to Jeremy van Loon of Bloomberg News, BMW AG’s shares went up
1.7% after the Financial Times reported that it is a possible buyer of
Volvo.
Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles in 200
markets across six continents. With more than 324,000 employees
worldwide, the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo.
Its automotive-related services include Ford Motor Credit Company and The
Hertz Corporation.
The company has operations in Japan in the Asia Pacific region.
In Europe, the Company maintains a presence in Sweden, and the
United Kingdom. The Company also distributes its brands in various
Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard &
Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery
ratings on Ford Motor Co.
As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch
Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.
As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's
Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor
Company's US$3-billion of senior convertible notes due 2036.
FORD MOTOR: Production Ends at Windsor Casting Plant
----------------------------------------------------
Production at the 73-year-old Windsor Casting Plant ended as Ford Motor
Company continues to transform its North American automotive operations
into a profitable and sustainable business. Ford is moving away from
in-house casting operations due to the competitive realities of today's
auto industry and the need to focus on the core business.
During the last 73 years, the Windsor Casting Plant has produced more than
50 million cylinder block castings and crankshafts for Ford engines.
Windsor Casting Plant employees have demonstrated leadership in their
dedication to quality, environmental stewardship and their commitment to
the community.
"It is a tribute to the employees at the Windsor Casting Plant that they
have achieved outstanding productivity levels with consistently high
quality throughout this year, right down to the last engine block
produced," AdrianVido, Windsor site manager, Ford Motor Company of Canada,
Limited, said. "The company's decision to move away from in-house casting
operations is based on a thorough analysis of our business and a need to
focus on our core operations. While difficult, these are the right
actions for Ford's future."
As reported in the Troubled Company Reporter on May 9, 2007, the company
also recently disclosed that it will end casting production at the Ford
facility in Cleveland, Ohio.
The Windsor Casting Plant opened in 1934 and most recently employed 500
people. It produces cylinder block castings for 4.2-litre V6 engines and
crankshafts for 4.2-litre V6, 5.4-litre V8, 3.0-litre V6, 4.6-litre V8 and
2.3-litre engines. The plant is also one of the largest recyclers of iron
and steel in
Southern Ontario. All the steel used in the cylinder blocks and
crankshafts is recycled material.
"For decades, workers at the Windsor Casting Plant have demonstrated an
unwavering commitment to quality workmanship and pride in a job well
done,” Mike Vince, president, Canadian Auto Workers Local 200, said.
“They leave the plant with their heads held high.”
Working with the CAW, Ford of Canada has offered financial assistance
packages worth up to US$100,000 to help employees in Windsor retire, or
move their careers in new directions. The company has also partnered with
the Ontario government to open an employment counseling and training
centre specifically for Ford employees impacted by the restructuring.
Programs and services for these workers include: job-search assistance,
raining information, vocational and educational counseling, personal
support in dealing with the stress of job loss, financial counseling and
information about starting a small business.
"A key priority is to help our employees, their families and the community
through this difficult transition," Tom McWilliams, manufacturing manager
and a 24-year Ford veteran, including 17 years at Windsor Casting, said.
"It's simply the right thing to do in a tough situation."
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in 200
markets across six continents. With about 260,000 employees and about 100
plants worldwide, the company's core and affiliated automotive brands
include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin,
and Mazda. The company provides financial services through Ford Motor
Credit
Company.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2'
recovery ratings on Ford Motor Co.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to
'B-/RR5' from 'B/RR4'.
As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's
Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3-billion of senior convertible notes due 2036.
JAPAN AIRLINES: To Boost Capital Base to JPY100-150 Billion
-----------------------------------------------------------
Japan Airlines Corp. is considering increasing its capital base by between
JPY100 billion and JPY150 billion through a third-party allocation of new
shares with major trading houses as underwriters, sources told the Daily
Yomiuri. The planned increase will be used to introduce a new fleet of
fuel-efficient aircraft to reduce costs.
Sources informed the Daily Yomiuri that JAL is looking to trading firms
like Sojitz Corp., Mitsui & Co. and Itochu Corp. as possible underwriters
for the new capital increase.
On May 25, 2007, the Troubled Company Reporter-Asia Pacific reported that
JAL had sought its main lenders, Development Bank of Japan, Mizuho
Corporate Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking
Corp, to increase its capital to JPY200-400 billion.
With the current plan, JAL’s capital base will total to JPY300-500
billion, the Daily Yomiuri reported.
JAL, according to the daily’s sources, might make the request to other
trading firms, like Mitsubishi Corp., that also do business with JAL.
The report added, that sources say that JAL hopes to reach an agreement
with the trading companies by June 26 during its shareholders general
meeting.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger of Japan
Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines
flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of its new
medium-term management plan. The outlook on the long-term corporate
credit rating is negative.
The TCR-AP reported on Oct. 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd. The rating affirmation is in response to the
planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the merger of
JAL's two operating subsidiaries, JAL International and Japan Airlines
Domestic. JAL International will be the surviving company. The rating
outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt
obligations and expenses for new aircraft have placed it in an unfavorable
financial position. Fitch assigned a BB- rating on the company, which is
three notches lower than investment grade.
NORTHWEST AIRLINES: AFA-CWA OKs Collective Bargaining Agreement
---------------------------------------------------------------
Northwest Airlines Corp.'s flight attendants, represented by the
represented by the Association of Flight Attendants-CWA, ratified a new
collective bargaining agreement with the airline company.
Doug Steenland, Northwest Airlines president and chief executive officer,
said, "As Northwest Airlines prepares to exit bankruptcy later this week,
we are pleased that we have now reached ratified collective bargaining
agreements with all of our unions. In particular, we are pleased that the
flight attendants will be able to share in the success of the
restructuring by receiving a claim in the Northwest bankruptcy case."
As part of the new agreement, flight attendants will receive a US$182
million unsecured claim in the airline's bankruptcy. This claim will be
sold for cash which will be distributed to flight attendants upon the
company's emergence from Chapter 11. The agreement also includes
additional contract modifications designed to improve the flight
attendants' work environment.
"We deeply appreciate the tireless efforts of the National Mediation Board
and its staff, who participated throughout these negotiations and aided
the parties in reaching this agreement," Mr. Steenland continued.
"I realize that the past 20 months have been a difficult period for our
employees and I want to thank them for their hard work and sacrifices that
helped Northwest complete its restructuring. I am pleased that our
employees are seeing the benefits of the restructuring already in the
forms of unsecured claims and profit sharing. We hope to be able to share
with our employees some US$1.6 billion in unsecured claims and profit
sharing payments through 2010."
"We are also pleased to be able to make distributions of Northwest common
stock to holders of the company's Series C preferred stock," Mr. Steenland
concluded. Series C stock was granted to Northwest employees as part of
previous labor agreements.
Since beginning its restructuring process in September 2005, Northwest has
remained focused on its goals to achieve a competitive cost structure,
develop a more efficient business model and recapitalize its balance
sheet. Earlier this month, the company received permission from the U.S.
Bankruptcy Court for the Southern District of New York to exit bankruptcy.
On
May 9, 2 007, Northwest announced that 98.4 percent of the dollar amount
of claims that voted and 96.9 percent of the airline's creditors who
voted, approved the Northwest Plan of Reorganization.
Northwest expects that it will emerge from Chapter 11 protection on May
31, once all closing conditions of the Plan have been met and the
company's US$750 million new equity rights offering has been funded.
About Northwest Airlines
Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/-- is the
world's fourth largest airline with hubs at Detroit, Minneapolis/St.
Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily
departures. Northwest is a member of SkyTeam, an airline alliance that
offers customers one of the world's most extensive global networks.
Northwest and its ravel partners serve more than 900 cities in excess of
160 countries on six continents, including Italy, Spain, Japan, China,
Venezuela and Argentina.
The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R.
Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham &
Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in their
restructuring efforts. The Official Committee of Unsecured Creditors has
retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in
the Debtors' chapter 11 cases.
When the Debtors filed for bankruptcy, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts.
On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan.
On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure
Statement. The Court approved the adequacy of the Debtors' Disclosure
Statement on March 26, 2007. On May 21, 2007, the Court confirmed the
Debtors' Plan. The Plan will take effect May 31, 2007.
* * *
As reported in the Troubled Company Reporter on May 25, 2007, Standard &
Poor's Ratings Services expects to assign its 'B+' corporate credit rating
to Northwest Airlines Corp. and subsidiary Northwest Airlines Inc. (both
rated 'D') upon their emergence from bankruptcy, anticipated May 31, 2007.
TIMKEN COMPANY: Earns US$75.2 Million in First Quarter 2007
-----------------------------------------------------------
The Timken Company recorded a net income of US$75.2 million for the first
quarter ended March 31, 2007, as compared with a net income of US$65.9
million for the first quarter ended March 31, 2006.
The company reported net sales for the first quarter of 2007 of about
US$1.3 billion, an increase of US$30.2 million over the first quarter of
2006, or an increase of 2.4%. Sales were higher across the Industrial and
Steel Groups, offset by lower sales in the Automotive Group.
The company’s first quarter results reflect the ongoing strength of
industrial markets and the performance of the Steel Group. The company
continued its focus to increase production capacity in targeted areas,
including major capacity expansions for industrial products at several
manufacturing locations around the world. The company’s first quarter
results also reflect a favorable discrete tax adjustment of US$32.1
million to recognize the benefits of a prior year tax position as a result
of a change in tax law during the quarter.
As of March 31, 2007, the company’s balance sheet showed total assets of
US$4.1 billion, total liabilities of US$2.5 billion, and total
stockholders’ equity of US$1.6 billion.
Liquidity and Capital Resources
The company had US$100.8 million in cash and cash equivalents as of March
31, 2007. Total debt was US$668.5 million at March 31, 2007, compared to
US$597.8 million at Dec. 31, 2006. Net debt was US$567.7 million at March
31, 2007, compared to US$496.7 million at Dec. 31, 2006. The net debt to
capital ratio was 26.7% at March 31, 2007, compared to 25.2% at Dec. 31,
2006.
At March 31, 2007, the company had no outstanding borrowings under its
US$500 million Amended and Restated Credit Agreement, and had letters of
credit outstanding totaling US$33.2 million, which reduced the
availability under the Senior Credit Facility to US$466.8 million. The
Senior Credit Facility matures on
June 30, 2010.
At March 31, 2007, the company had no outstanding borrowings under the
company’s Asset Securitization, which provides for borrowings up to US$200
million. As of March 31, 2007, there were letters of credit outstanding
totaling US$18.8 million, which reduced the availability under the Asset
Securitization to US$181.2 million.
The company believes it has sufficient liquidity to meet its obligations
through 2010. It expects to make cash contributions of US$100 million to
its global defined benefit pension plans in 2007.
A full-text copy of the company’s first quarter report is available for
free at:
http://ResearchArchives.com/t/s?2061
Guidance for 2007
The company expects that the continued strength in industrial markets
throughout 2007 should drive year-over-year volume and margin improvement.
While global industrial markets are expected to remain strong, the
improvements in the company’s operating performance will be partially
constrained by restructuring initiatives, as well as investments,
including Project O.N.E. and Asian growth initiatives. Project O.N.E. is
a program designed to improve the company’s business processes and
systems. In 2006, the company successfully completed a pilot program of
Project O.N.E. in Canada. The company expects to complete the
installation of Project O.N.E. for a major portion of its domestic
operations during the second quarter of 2007.
Updates on Groups
* Industrial Group
In February, the company announced the launch of a fully integrated
casting operation to produce precision aerospace aftermarket components at
this new site. In addition, the company is increasing large-bore bearing
capacity in Romania, China, India
and the United States to serve heavy industrial markets. The Industrial
Group expects to benefit from this increase in large-bore bearing
capacity during the second half of 2007.
* Automotive Group
In 2005, the company disclosed plans for its Automotive Group to
restructure its business. In February 2006, the company announced plans
to downsize its manufacturing facility in Vierzon, France. These plans
are targeted to collectively deliver annual pretax savings of about US$75
million by 2008, with expected net workforce reductions of about 1,300 to
1,400 positions and pretax costs of about US$125 million to US$135
million, which include restructuring costs and rationalization costs
recorded in cost of products sold and selling, administrative and general
expenses. In December 2006, the company completed the divestiture of its
steering business located in Watertown, Connecticut and Nova Friburgo,
Brazil. The steering business employed about 900 associates.
* Steel Group
In January 2007, the company announced plans to invest approximately US$60
million to enable the company to competitively produce steel bars down to
1-inch diameter for use in power transmission and friction management
applications for a variety of customers.
About The Timken Company
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered bearings
and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace, medical,
industrial and railroad industries. The company has
operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech
Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea,
Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America,
Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000
employees.
* * *
The Timken Company carries Moody's Ba1 Long-Term Corporate Family, Senior
Unsecured Debt and Probability-of-Default tings. The Outlook is Stable.
SAPPORO HOLDINGS: Dissatisfied With Steel Partners' Answers
-----------------------------------------------------------
Sapporo Holdings Ltd said it is dissatisfied with Steel Partners' answers
to its questions about the US investment fund's takeover proposal, and has
asked the fund for more information, Yumiko Nishitani of Forbes reports.
Mr. Yumiko relates that Sapporo, in a written statement said the fund's
response “lacks specifics or the information needed to determine what sort
of management plans [the fund] has and whether the proposal would
contribute to enhancing the value of the company.”
On February 19, 2007, the Troubled Company Reporter-Asia Pacific reported
that Steel Partners sought to increase its stake in Sapporo to 66.6% from
17.5% reflect its continued confidence in the prospects of the Company as
the single largest shareholder in Sapporo Holdings.
Sapporo, Mr. Yumiko noted, wanted to obtain more information such as the
fund’s operations and its strategic plans for Sapporo before deciding
whether to approve the proposal.
About Sapporo Holdings
Sapporo Holdings Limited -- http://www.sapporoholdings.jp/-- formerly
known as Sapporo Breweries, brews beer and operates more than 200 beer
halls and restaurants. Sapporo is one of
Japan's oldest brewers, and is Japan's third largest brewing company, with
brews ranging from its flagship Black Label to the pricier Yebisu.
Sapporo also makes the low-malt happoshu brew.
The company sells Guinness beer in Japan through its Sapporo
Guinness Company and owns a beverage company that makes canned coffee,
bottled water, and soft drinks.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
August 7, 2006, Sapporo Holdings posted a JPY1.8 billion operating loss
for the first half of the fiscal year, and forecast earnings to drop to
JPY10.2 billion for FY2006 from an initial forecast of JPY16.8 billion.
On March 15, 2007, the TCR-AP reported that Sapporo Holdings posted net
income of JPY2.34 billion for the year ended Dec. 31,
2006, a 35.6% drop from the JPY3.63 billion net income recorded for the
year ended Dec. 31, 2005. Sapporo Holding's consolidated balance sheet as
of Dec. 30, 2006, showed strained liquidity with JPY127.97 billion in
current assets available to pay JPY268.89 billion in current liabilities
within the next 12 months.
On May 14, 2007, the TCR-AP reported that Sapporo Holdings reported a net
loss of JPY3.98 billion for the three months ended March 31, 2007, down
from the JPY5.91-billion loss booked in the same quarter last year.
As of May 16, 2007, the company still carries Standard & Poor's
Rating Service's 'BB' Long-Term Foreign Issuer Credit and Long-
Term Local Issuer Credit Ratings that were issued on February 6,
2006; and Fitch Ratings' 'B' Short-term Foreign and Local
Currency Issuer Default Ratings that were issued on March 14,
2006.
=========
K O R E A
=========
CHOROKBAEM MEDIA: Signs Contract With Munwha Broadcasting
---------------------------------------------------------
Chorokbaem Media Co., Ltd. has signed a contract with Munwha Broadcasting
Corporation to supply daily television drama, Reuters reports.
According to the report, the contract amount is worth KRW1,695,100,000.
Seoul, Korea-based Chorokbaem Media Co., Ltd. is a manufacturer
engaged in the provision of non-woven fabrics. The company
provides non-woven fabrics used in normal and special filters,
artificial and synthetic leathers and other related usages. In
addition, the company operates family restaurants.
The Troubled Company Reporter - Asia Pacific reported that Korea
Investors Service gave the company's unregistered US$8 million
convertible bonds a 'B' rating on Feb. 16, 2007.
===============
M A L A Y S I A
===============
AVAYA INC: In Talks With Silver Lake on Likely Buyout, WSJ Says
---------------------------------------------------------------
Avaya Inc. is currently in talks with Silver Lake Partners on a
possible leveraged-buyout, The Wall Street Journal reports citing people
familiar with the matter.
The Journal relates that the company had previously engaged in discussions
with Nortel Networks Corp. on a possible deal. The talks, however,
"cooled off" after the two companies couldn't agree on price and mode of
payment.
Citing people familiar with the matter, the Journal reports that the two
sides are continuing dialogues and a deal could still occur.
According to the report, the company had postponed a scheduled analyst-day
meeting which prompted some to think that the company may be in talks over
a possible buyout.
Headquartered in Basking Ridge, N.J., Avaya Inc., (NYSE: AV) --
http://www.avaya.com.-- designs, builds and manages communications
networks for more than one million businesses worldwide, including more
than 90 percent of the FORTUNE 500(R). Focused on businesses large to
small, Avaya is a world leader in secure and reliable Internet Protocol
telephony systems and communications software applications and services.
Avaya has locations in Malaysia, Argentina and the United Kingdom.
* * *
Standard & Poor's Ratings Services raised its corporate credit
rating on Avaya, Inc., to 'BB' from 'B+'.
Moody's Investors Service upgraded the senior implied rating of
Avaya, Inc., to Ba3 from B1. Moody's said the ratings outlook is positive.
VANGUARD CAR: Moody’s Affirms Corporate Family Rating at B1
-----------------------------------------------------------
Moody's Investors Service lowered the senior unsecured rating of ERAC USA
Finance Company (a wholly-owned financing conduit of Enterprise Rent-A-Car
Company) to Baa2 from Baa1, and confirmed the company's Prime-2 short-term
rating.
The ratings benefit from an Enterprise guarantee and the outlook is
stable. The downgrade recognizes that Enterprise's acquisition of
Vanguard Car Rental USA Holdings Inc will increase its leverage
considerably and will result in credit metrics remaining below recent
levels. Factors contributing to this increased leverage are the addition
of Vanguard's $4 billion in debt to Enterprise's $7 billion in existing
debt, and the borrowings that Enterprise will take on to fund the
acquisition. In addition to increased financial risk, the acquisition
will also entail a degree of integration risk. Despite these challenges,
Moody's believes that the transaction will enable Enterprise to strengthen
its position in the US on-airport car rental market, and to maintain
superior levels of financial flexibility relative to its peers. These
strengths provide support for Enterprise's Baa2 long-term and Prime-2
short-term ratings, and for the stable outlook.
Vanguard's ratings, including the B1 Corporate Family Ratings, are
affirmed and the outlook remains stable. Moody's anticipates that
change-of-control language will require the repayment of Vanguard's
non-ABS debt. At that time, the Vanguard ratings will likely be
withdrawn.
"Despite the additional leverage, this transaction holds some compelling
strategic opportunities for Enterprise," said Bruce Clark, Senior Vice
President with Moody's. "The acquisition will jump-start the company's
existing on-airport expansion strategy, and could provide it a significant
competitive advantage in meeting both the on- and off-airport car rental
needs of corporate clients."
The majority of Enterprise's revenues are generated in the off-airport
market. Much of this off-airport business comes from large insurance
companies that provide replacement vehicles to consumers whose cars have
been in accidents or are being repaired under new-car warranty contracts.
Other corporate clients in the off-airport arena must provide temporary
vehicles to their employees. However, these insurance and corporate
clients also have extensive on-airport car rental needs. Because of
Enterprise's relatively small presence in the on-airport market, it has
had limited capacity to meet these needs. The Vanguard acquisition will
significantly increase Enterprise's position in the on-airport sector, and
will enable it to better serve the full range of rental car requirements
of its corporate clients.
"Enterprise has been committed to building its position in the on-airport
market for some time. But, limited availability of space within airports
severely constrained its ability to pursue this strategy." Clark said.
"Acquiring the 20% market share that
National and Alamo have in the on-airport market will raise Enterprise's
overall share in this sector to a very competitive 27%."
Moody's assessment of the operating capability and financial strategy of
Enterprise's management also plays an important role in the Baa2 rating
and stable outlook. Enterprise has remained highly successful in meeting
the needs of its corporate clients in the off-airport market, and in
managing an automobile fleet that consists primarily of "risk vehicles".
Unlike "program vehicles" which automobile OEMs repurchase from rental
companies at agreed upon prices, risk vehicles pose resale value risk for
the rental company upon the sale of the vehicle - generally seven to
twelve months after purchase.
Enterprise has one of the premier systems for managing risk fleets, and
for selling vehicles at a profit upon disposition. Enterprise's
competitors, whose fleets have historically consisted primarily of program
cars, are now moving aggressively toward risk vehicles because of their
lower purchase prices.
Financially, Enterprise's management has retained a healthy degree of
capital within the business. This prudently conservative financial
strategy, in combination with a strong earnings history, has enabled
Enterprise to steadily and significantly strengthen its credit metrics
during the past six years. As a result, its current credit metrics are
relatively strong, and provide sufficient financial cushion to undertake
the Vanguard acquisition, yet retain pro forma metrics that Moody's views
as supportive of the Baa2 rating. Moody's believes that preserving a
solidly investment grade rating remains important to Enterprise, and that
the company's ongoing financial strategy will help to further strengthen
its capital structure and credit metrics following the acquisition. This
financial strategy includes maintaining adequate committed backup for all
commercial paper borrowing and current portions of long-term debt.
As a closely held, family-owned company, Enterprise faces the possibility
that it may have to take on additional debt in order to pay dividends that
would enable owners to meet estate tax obligations. Moody's believes that
the estate tax planning on the part of the company and owners would enable
Enterprise to address any estate tax event without a material erosion in
its credit metrics.
Enterprise Rent-A-Car Company, headquartered in St. Louis, Missouri, is
the leading provider of in-town and insurance replacement rental cars in
US. ERAC USA Finance Company is a wholly-owned funding vehicle for
Enterprise.
Headquartered in Tulsa, Oklahoma, Vanguard Car Rental Holdings
LLC -- http://www.vanguardcar.com/-- is a car rental company
operator of the National Car Rental and Alamo Rent A Car brands. It has
more than 3,200 locations in 83 countries, including the United States,
Canada, Mexico, Europe, the Caribbean, Latin America, Hong Kong, Malaysia,
the Pacific Rim, Africa, the Middle East and Australia.
VERIFONE HOLDINGS: Earns US$4.8 Mil. in Quarter Ended April 30
--------------------------------------------------------------
VeriFone Holdings Inc. recorded US$4.8 million of net income for the three
months ended April 30, 2007, compared with US$15 million of net income for
the same period in 2006. The company reported net revenues of US$217.2
million for the three months ended April 30, 2007, 53% higher than the net
revenues of US$142.2 million for the comparable period of 2006.
VeriFone's International business increased 97% and VeriFone's North
America business increased 19%. The significant increase in sales was
driven largely by the acquisition of Lipman, which closed on Nov. 1, 2006.
Subsequent to the end of the quarter, management determined that booked
orders of approximately US$4 million could not be recognized as revenue
due to incomplete sales administration requirements in our international
operations. These orders were largely sourced from VeriFone’s new Israeli
and Turkish facilities and all were headed to high growth markets in Asia,
Eastern Europe and Africa. The company is confident that the shortcomings
in applying these field processes have now been remedied. All of this
revenue has now been fully recognized and is reflected in guidance for the
third quarter.
Gross margins, excluding non-cash acquisition related charges and
stock-based compensation expense, expanded to a record 48.1%, for the
three months ended April 30, 2007, compared to 45.7% for the comparable
period of 2006. GAAP gross margins for the three months ended April 30,
2007, were 41.5%, compared to 44.6% for the three months ended April 30,
2006, as a result of increased amortization of purchased technology
assets, the step-up in inventory and stock-based compensation.
GAAP operating expenses for the three months ended April 30, 2007, were
US$72.9 million compared to US$37.8 million for the comparable period of
2006. In addition to the effect of the Lipman acquisition and related
integration expenses, the company incurred higher non-cash stock
compensation expenses and amortization of purchased intangible assets.
Stock-based compensation for the three months ended April 30, 2007, was
US$9.8 million compared to US$1.0 million for the comparable period of
2006. This increase was primarily due to the acceleration of the vesting
of options of Lipman executives, the increase in the number of option
holders following the Lipman acquisition and the grant of
performance-based restricted stock units to the Company’s Chief Executive
Officer. Amortization of purchasedintangible assets for the three months
ended April 30,
2007, was US$6.1 million compared to US$1.2 million for the comparable
period of 2006, primarily due to the Lipman acquisition.
EBITDA, as adjusted, margins for the three months ended
April 30, 2007, expanded for the eleventh consecutive quarter and reached
a record level of 26.3%, compared to the 21.6% recorded in the three
months ended April 30, 2006.
GAAP EPS for the three months ended April 30, 2007, was US$0.06 per
diluted share, compared to US$0.22 per diluted share, for the comparable
period of fiscal 2006, due to acquisition related non-cash charges, higher
stock-based compensation expense primarily related to the Lipman
acquisition and to a significantly higher GAAP tax rate driven by an
increase in the valuation allowance related to Lipman.
Net income, as adjusted, which excludes non-cash acquisition related
charges and debt issuance costs, as well as non-cash stock-based
compensation expense and Lipman integration costs, for the three months
ended April 30, 2007, increased 50% to US$0.39 per diluted share, compared
to US$0.26 per diluted share, for the three months ended April 30, 2006.
“I am pleased to report on another very successful quarter for VeriFone as
we once again achieved record profitability,” said Douglas G. Bergeron,
Chairman and Chief Executive Officer. “During the quarter, our record
margins drove our robust EPS growth, and also resulted in strong cash
flow,” continued Bergeron. “We were especially pleased with our
continuing success of our wireless products and were delighted with the
resurgence of our North American business which grew sequentially 8% from
the previous quarter.”
“Based on these results and the US$4 million of revenue which has been
recognized in the third quarter, we are increasing our third quarter
internal expectations for net revenue to US$225 - US$227 million and
increasing our guidance for net income, as adjusted, per share to a range
of US$0.39 - US$0.40. We remain confident of our prospects for the
remainder of fiscal 2007.”
Second Quarter Highlights
In the UK, VeriFone had continued success with the Tesco contract, where
the VeriFone Secura outdoor payment system is enabling easy integration
with ECRs, pumps and a range of unattended devices in a Wincor Nixdorf-led
project.
In Mexico, VeriFone completed a successful pilot with American Express for
its Vx 670 Pay at the Table solution and looks forward to demand creation
from the related American Express advertising campaign.
VeriFone announced wins at Ahold Group members Stop & Shop and
Giant-Landover food stores. These organizations have embraced a strategy
to install MX870’s in all new and remodeled stores as well as to replace
legacy products over time. In addition,
VeriFone also announced other significant wins including Wegman’s Food
Markets, a high end supermarket in the northeast US region, which began
its rollout of the MX870 with RFID to replace a competitive product; and
Brookshires Grocery, a Texas based supermarket chain, which passed the
Texas WIC certification and began a chain wide rollout with the MX870.
Financial Measures
Reconciliations for the non-GAAP measures presented in
this press release are provided at the end of this
press release. Management uses the non-GAAP measures
presented in this release to help them evaluate
VeriFone’s performance and to compare VeriFone’s
current results with those for prior periods as well
as with the results of other companies in our
industry, but cautions investors that these non-GAAP
measures should not be considered as substitutes for
disclosures made in accordance with GAAP.
About VeriFone
VeriFone Inc. is headquartered in Santa Clara, California, and is a global
market leader in the development and sale of point-of-sale electronic
payment systems. The company has operations in Argentina, Australia,
Brazil, China, France, India, Malaysia, Poland, the United Kingdom, the
United States, among others.
* * *
As reported in the Troubled Company Reporter on Sept. 29, 2006, Moody's
Investors Service affirmed the Corporate Family Rating of B1 of VeriFone
and revised the rating outlook to stable from negative. At the same time,
Moody's assigned ratings to new bank credit facilities that VeriFone will
use to finance its pending acquisition of Lipman Electronic Engineering
Ltd.
====================
N E W Z E A L A N D
====================
BELLE CHILDREN: Creditors’ Proofs of Debt Due by June 14
--------------------------------------------------------
Belle Children Wear Company Ltd. commenced liquidation proceedings on May
17, 2007.
The company fixed June 14, 2007, as the last day for receiving creditors’
proofs of debt.
The Liquidators can be reached at:
Henry David Levin
Gavin Harold
PPB McCallum Petterson
Forsyth Barr Tower, Level 11
55-65 Shortland Street
Auckland
New Zealand
Telephone:(09) 336 0000
Facsimile:(09) 336 0010
BUP LTD: Creditors’ Proofs of Debt Due by June 18
-------------------------------------------------
BUP Ltd. requires its creditors to file their proofs of debt by June 18,
2007.
The company started to liquidate its business on May 17, 2007.
The company’s liquidator is:
Robert Laurie Merlo
Merlo Burgess & Co. Limited
PO Box 51486, Pakuranga
Auckland
New Zealand
Telephone:(09) 520 7101
Facsimile:(09) 529 1360
e-mail: merloburgess&co@xtra.co.nz
GAME DAME: Enters Wind-Up Proceedings
-------------------------------------
Timothy Wilson Downes and Stephanie Beth Jeffreys were appointed as
liquidators of Game Dame Ltd. on May 16, 2007.
Creditors are required to file their proofs of debt by June 22, 2007, to
be included in the company’s dividend distribution.
The Liquidators can be reached at:
Timothy Wilson Downes
Stephanie Beth Jeffreys
Grant Thornton Auckland Limited
97-101 Hobson Street, Auckland
New Zealand
Telephone:(09) 308 2570
POGO PRODUCING: S&P Retains Developing Watch on BB Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BB' corporate credit
rating on Pogo Producing Co. remains on CreditWatch with developing
implications following the company's announcement that it is selling its
Canadian oil- and gas-producing subsidiary for US$2 billion.
The sale reduces Pogo's reserves by 35% and production by 37%,
considerably reducing the company's credit base. However, S&P expect Pogo
to apply a meaningful portion of the proceeds to reducing debt, lowering
the company's elevated financial leverage. S&P note that following the
sale, the company will continue to consider strategic alternatives that
could include a sale of the company.
"The uncertainty regarding the company's direction warrants continuation
of the CreditWatch listing," said Standard & Poor's credit analyst Ben
Tsocanos.
The CreditWatch listing reflects the potential for ratings to be raised,
lowered, or affirmed in the near term.
"A sale or merger carries the risk that the buyer or resulting merged
company will have a lower rating," Mr. Tsocanos said. "The CreditWatch
listing also reflects the risk that the company may pursue large share
repurchases or special dividends funded with debt or asset sale proceeds
that could result in significantly increased financial leverage or a
smaller asset and production base."
Alternatively, S&P could raise the ratings if Pogo is acquired by a
company with a higher rating that guarantees Pogo's debt, in which case
the ratings would be equalized with those of the acquiring company
following the transaction's close.
Headquartered in Houston, Texas, Pogo Producing Company (NYSE: PPP) --
http://www.pogoproducing.com/-- explores for, develops and produces oil
and natural gas. Pogo owns approximately 4,000,000 gross leasehold acres
in major oil and gas provinces in North America, 3,119,000 acres in New
Zealand and 1,480,000 acres in Vietnam.
SIACS GROUP: Taps Sanson and Fisk as Liquidators
------------------------------------------------
John Howard Ross Fisk and Craig Sanson were appointed as liquidators of
SIACS Group Ltd. on May 14, 2007.
Messrs. Fisk and Sanson require the company’s creditors to file their
proofs of debt by July 14, 2007.
The Liquidators can be reached at:
John Howard Ross Fisk
Craig Sanson
c/o PricewaterhouseCoopers
113-119 The Terrace
PO Box 243, Wellington
New Zealand
Telephone:(04) 462 7188
Facsimile:(04) 462 7492
QUINNS POST: Shareholders Resolve to Liquidate Business
-------------------------------------------------------
The shareholders of Quinns Post Ltd. met on May 1, 2007, and resolved to
liquidate the company’s business.
The company’s liquidator is:
Rhys Michael Barlow
c/o BDO Spicers
Chartered Accountants
BDO House, Level 2
99-105 Customhouse Quay
PO Box, Wellington
New Zealand
Telephone:(04) 472 5850
Facsimile:(04) 473 3582
e-mail: rhys.barlow@wlg.bdospicers.com
QUINNS POST TAVERN: Names Rhys Michael Barlow as Liquidator
-----------------------------------------------------------
Quinns Post Tavern Ltd. entered liquidation proceedings on
May 1, 2007, and named Rhys Michael Barlow as the company’s liquidator.
The Liquidator can be reached at:
Rhys Michael Barlow
c/o BDO Spicers
Chartered Accountants
BDO House, Level 2
99-105 Customhouse Quay
PO Box, Wellington
New Zealand
Telephone:(04) 472 5850
Facsimile:(04) 473 3582
e-mail: rhys.barlow@wlg.bdospicers.com
TEBROC CONSULTANTS: Creditors Must Prove Debts by June 11
---------------------------------------------------------
Tebroc Consultants Ltd, which is in liquidation, requires its creditors to
file their proofs of debt by June 11, 2007.
The company’s liquidators are:
Henry David Levin
David Stuart Vance
PPB McCallum Petterson
Forsyth Barr Tower, Level 11
55-65 Shortland Street
Auckland
New Zealand
Telephone:(09) 336 0000
Facsimile:(09) 336 0010
URBAN PLUMBING: Requires Creditors to Prove Debts by June 15
------------------------------------------------------------
The creditors of Urban Plumbing Co Ltd. are required to file their proofs
of debt by June 15, 2007.
The company entered wind-up proceedings on May 14, 2007.
The company’s liquidators are:
Jeffrey Philip Meltzer
Lloyd James Hayward
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
WAITOKI PROPERTIES: Enters Liquidation Proceedings
--------------------------------------------------
Waitoki Properties Ltd. entered liquidation proceedings on
May 17, 2007.
Creditors are required to file their proofs of debt by June 29, 2007, to
be included in the company’s dividend distribution.
The company’s liquidators are:
Peter Reginald Jollands
Rory Iain Grieve
Jollands Callander,
Accountants and Insolvency Practitioners
Administrator House, Level 8
44 Anzac Avenue, Auckland
New Zealand
Web site: www.jollandscallander.co.nz
VINCENT PROPERTY: Appoints Parsons and Kenealy as Liquidators
-------------------------------------------------------------
Dennis Clifford Parsons and Katherine Louise Kenealy were appointed as
liquidators of Vincent Property Trust Ltd on
May 14, 2007.
The Liquidators can be reached at:
Dennis Clifford Parsons
Katherine Louise Kenealy
Indepth Forensic Limited
PO Box 278, Hamilton
New Zealand
Telephone:(07) 957 8674
Web site: http://www.indepth.co.nz
=====================
P H I L I P P I N E S
=====================
CHIQUITA BRANDS: Panamanian Court Releases Coosemupar Account
-------------------------------------------------------------
A court in Panama has released a Coosemupar account, where Chiquita Brands
International transferred money for the cooperation, Fresh Plaza reports.
The account was frozen in a lawsuit on Aug. 14, 2006.
Union Sitrachilco's general secretary Salustiano De Gracia told Fresh
Plaza that the account will help the cooperative.
Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) --
http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service changed the rating
outlook for Chiquita Brands International, Inc. to negative from
stable.
Ratings affirmed:
* Chiquita Brands International, Inc. (parent holding company)
-- Corporate family rating at B3
-- Probability of default rating at B3
-- US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5, 89%)
-- US$225 million 8.875% senior unsecured notes due 2015 at
Caa2 (LGD5, 89%)
* Chiquita Brands LLC (operating subsidiary):
-- US$200 million senior secured revolving credit agreement
at B1 (LGD2, 26%)
-- US$24.3 million senior secured term loan B at B1 (LGD2,
26%)
-- US$368.4 million senior secured term loan C at B1 (LGD2,
26%).
CHIQUITA BRANDS: Will Sell 12 Cargo Vessels for US$227 Million
--------------------------------------------------------------
Chiquita Brands International, Inc., told Fresh Plaza that it has signed
definitive accords with Eastwind Maritime Inc. and
NYKLauritzenCool AB to sell its 12 "refrigerated" cargo vessels for US$227
million.
According to Fresh Plaza, the ships will be "chartered back from an
alliance" by Eastwind Maritime and NYKLauritzenCool.
The report says that Chiquita Brands also entered a long-term
strategic pact with Eastwind Maritime and NYKLauritzenCool. Under the
agreement, the alliance will serve as Chiquita Brands' supplier in ocean
shipping to and from Europe and North America.
Chiquita Brands will lease back 11 of the vessels for seven years, with
options to extend it to two or five years -- one vessel for three years,
Fresh Plaza notes.
Fresh Plaza relates that the vessels to be sold are:
-- eight reefer ships, and
-- four container ships.
The vessels transport 70% of Chiquita Brands' banana volume shipped to
European and North American markets, according to the report.
Fresh Plaza says that the accords also provide for the alliance to serve
the remainder of Chiquita Brands' ocean shipping needs for North America
and Europe.
Chiquita Brands Chairperson and Chief Executive Officer Fernando
Aguirre told Fresh Plaza, "This long-term arrangement will increase our
financial flexibility, simplify our business model and allow us to
increase our focus on providing branded, healthy, fresh foods to consumers
worldwide. We are confident that the alliance parties, whose core
business is global shipping, will ensure the continuing reliable,
high-quality shipment of Chiquita products. The ship sale transaction
will significantly reduce our debt, and the alliance will better position
us to adapt our shipping services as we grow our
business over time. At the same time, we anticipate that this
transaction will generate synergies and help to keep operating
costs competitive. Additionally, the long-term ship leases will help
insulate us from further industry operating cost increases on a
significant portion of our logistics portfolio for several years to come."
Eastwind Maritime Chairperson John Kousi commented to Fresh Plaza, "This
transaction is an exciting and rare opportunity to acquire a large,
modern, highly efficient refrigerated fleet and to work with one of the
best names in the produce industry. Not only is this a great opportunity
to grow with Chiquita, but it also provides an excellent platform on which
to optimize capacity and achieve cost synergies in the global shipment of
produce, which is key to our business."
According to Fresh Plaza, Chiquita Brands, Eastwind Maritime and
NYKLauritzenCool would conclude the transaction in 45 days.
Eastwind Maritime and NYKLauritzenCool committed to keep the same high
social and environmental standards and certifications that Chiquita Brands
implemented in its shipping operations as well as the company's code
standards related to labor conditions, Fresh Plaza states.
About Chiquita Brands
Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) --
http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service changed the rating
outlook for Chiquita Brands International, Inc. to negative from
stable.
Ratings affirmed:
* Chiquita Brands International, Inc. (parent holding company)
-- Corporate family rating at B3
-- Probability of default rating at B3
-- US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5, 89%)
-- US$225 million 8.875% senior unsecured notes due 2015 at
Caa2 (LGD5, 89%)
* Chiquita Brands LLC (operating subsidiary):
-- US$200 million senior secured revolving credit agreement
at B1 (LGD2, 26%)
-- US$24.3 million senior secured term loan B at B1 (LGD2,
26%)
-- US$368.4 million senior secured term loan C at B1 (LGD2,
26%).
MANILA ELECTRIC: Lopez Family Plans to Buy Government Stake
-----------------------------------------------------------
Since the Philippine government plans to sell its 29% stake in the Manila
Electric Co., its chairman Manuel Lopez said his family will raise the
US$500 million needed to acquire the stake, Reuters reports.
According to the news agency, Mr. Lopez will amass the amount through a
combination of equity, loans and a strategic partnership.
The Philippine government is selling its ownership in Meralco in a bid to
fund the country's deficit, caused by weak tax revenues from January-April
2007, the article explains.
Headquartered in Ortigas, Pasig City, the Manila Electric Company --
http://www.meralco.com.ph/-- is the largest utility in the Philippines,
providing power to 4.1 million customers in Metropolitan Manila and more
than 100 surrounding communities. As deregulation takes effect, Meralco
is reducing its dependence on state-owned National Power Corp. by
increasing the amount of power it purchases from independent power
producers. Meralco is also preparing for competition by moving into
non-regulated activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real estate.
* * *
A March 31, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the company posted a 79.7% decrease in its 2005 net
losses to PHP411 million from PHP2.03 billion in 2004, due to provisions
for probable losses while awaiting a Supreme Court final decision on a
pending unbundling rate case, and the adoption of new accounting
standards.
In a TCR-AP report on April 24, 2006, it was noted that Manila
Electric cannot seek a loan to expand its facilities unless it repays
outstanding short-term debts amounting to around PHP4.7 billion.
* S&P Puts BB+ Rating on Republic of Philippines' Bond Issues
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' senior unsecured
rating to the Republic of Philippines' (Philippines; foreign currency
BB-/Stable/B, local currency
BB+/Stable/B) new three- and five-year benchmark bond issues.
The new bonds mature in 2010 and 2012 and carry interest rates of 5.5% and
5.75%, respectively. Launched in February 2007, they are part of the
government's efforts to consolidate a multitude of illiquid bonds into
large benchmark issues, thereby deepening the local currency government
debt market. The exchange offers yielded approximately Philippine peso 55
billion and PHP58 billion for the three- and five-year bonds,
respectively, from the exchange of eligible issues.
The stable outlook on the ratings on the Philippines balances the
government's achievements in fiscal consolidation and public sector reform
against continuing risks to revenue and deficit targets in light of weak
collection and administration efficiency.
"Significant progress has been made in addressing the narrow revenue base
and associated fiscal shortfalls," said Standard & Poor's credit analyst
Agost Benard. Following the implementation of key fiscal reform
initiatives, revenue collection was boosted to 16.3% of GDP from a low of
14.6% in 2004, while deficits declined to 1.1% of GDP in 2006, from nearly
5% in 2002. However, many of the key debt ratios point to a level of
fiscal vulnerability that is higher than what is generally associated with
this rating category. Total public sector debt at 75.5% of 2006 GDP is
well in excess of the 47.3% for the 'BB' median, while a debt to revenue
ratio of 386% (against 162% for the 'BB' median) highlights the
sovereign's relatively high level of indebtedness and low revenue base
from which to service it.
The outlook on the ratings could change to positive if additional revenue
measures are forthcoming early on in the life of the new
Congress--including the passage of existing fiscal initiatives that are
currently stranded in the legislature. Conversely, the outlook on the
ratings could again come under downward pressure in the event that fiscal
correction is endangered by stalling reforms. This would make the
government's balanced budget goals unattainable and/or necessitate
continued expenditure compression at the expense of future growth
prospects.
* 5.7% Economic Growth Predicted for First Quarter 2007
-------------------------------------------------------
Singaporean investment bank DBS is predicting a 5.7% growth for the
Philippine economy in the first quarter of the year, due to a strong
domestic demand, higher personal spending and robust export earnings,
Lawrence Agcaoili writes for the Manila Standard Today.
The article relates that the investment bank's forecast falls with the
5.3%-6.1% growth projected by the National Economic and Development
Authority.
The bank further relates that domestic demand contributed 5 percentage
points, followed by exports which gave in 2.3 percentage points.
Altogether, this represented 12% growth.
Imports also grew 7.1% in the first quarter, while personal spending rose
5.7% due to the May 14 elections and higher overseas Filipino workers'
remittances.
According to the article, a 5.5% expansion in the growth domestic product
is predicted for 2007, as compared to 5.4% in 2006. This is way below the
Development Budget Coordination Committee's 6.1%-6.7% percent GDP growth
goal, the newspaper adds.
The strong domestic expansion would force the Bangko Sentral ng
Pilipinas to remain vigilant over excessive accommodation in monetary
policies, the Manila Standard relates.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B'
foreign currency and 'BB+/B' local currency sovereign credit ratings on
the Philippines, with a stable outlook.
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service
changed to stable from negative the outlook on the Philippines' key
ratings due to the progress made in reining in fiscal deficits in 2006 and
an easing in dependence on external financing. The affected ratings
include the B1 long-term government foreign- and local-currency ratings,
the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency
country ceiling, the TCR-AP noted.
* Central Bank Puts Measures to Stem Peso Growth
------------------------------------------------
Malacanang Palace said that the Bangko Sentral ng Pilipinas has placed
mitigating measures to help exporters and families of Overseas Filipino
Workers cope with the adverse effects of the strong peso, the Philippine
News Agency reports.
Executive Secretary Eduardo Ermita said Wednesday that the government
prepaid some of its debts, while the BSP accumulated foreign exchange, in
order to ease the rise of the peso.
The peso has been hovering at the PHP45 to PHP46 exchange rates
against the dollar, reaching levels from as far back as seven years ago
following the general trend of appreciating Asian currencies.
To directly help exporters, Ermita said the government has cut
exporters' fees and has set up an initial PHP280 million fund to
support exporters through the Industrial Guarantee and Loan Fund
(IGLF). The fund will be used to improve product quality, packaging,
design and marketing.
"The BSP has also been supporting small and medium exporters through
microfinance," he said. "Ultimately, the best way to help our exporters is
to lower power rates, but that is for the medium term."
Ermita even read the position report of the National Economic and
Development Authority and the Department of Finance stating that in 2006,
exports of goods grew by 14%, the fastest in
eight years. He said that the strong peso has also helped reduce
interests costs including those for the financing needs of the exporters.
"For OFW remittances, in year 2006, it rose to an all-time high of US$12.8
billion while this year, they are up by 24 percent despite the fact that
OFW deployment or the number leaving the country has gone down and the
foreign direct investments in 2006 expanded by 26 percent," Ermita pointed
out.
Mr. Ermita further said that export continued to improve, despite
speculation that Phlippine exports will be affected by the peso's
improving strength against the dollar.
Although families of OFWs may find themselves with less peso
equivalent of dollars remitted to them, Ermita pointed out that
relatively the strong peso lowered the price of imports notably oil and in
the process lowered inflation and prices of commodities.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B'
foreign currency and 'BB+/B' local currency sovereign credit ratings on
the Philippines, with a stable outlook.
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service
changed to stable from negative the outlook on the Philippines' key
ratings due to the progress made in reining in fiscal deficits in 2006 and
an easing in dependence on external financing. The affected ratings
include the B1 long-term government foreign- and local-currency ratings,
the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency
country ceiling, the TCR-AP noted.
=================
S I N G A P O R E
=================
CKE RESTAURANTS: Selling La Salsa Chains to Baja Fresh & M Plus
---------------------------------------------------------------
CKE Restaurants Inc. has entered into an agreement for the sale of its La
Salsa Fresh Mexican Grill restaurants. La Salsa will be acquired by
Thousand Oaks, California-based Baja Fresh Mexican Grill(R), led by David
Kim and M Plus Capital, which is based in Santa Monica, California.
Under the agreement, Santa Barbara Restaurant Group Inc., a
wholly-owned subsidiary of CKE, is expected to sell its 100% equity
interest in La Salsa Inc. and La Salsa of Nevada Inc.
The transaction is subject to customary closing conditions and is expected
to close by the end of June 2007. The transaction is not expected to have
a material impact on the future earnings of CKE on a consolidated basis.
"The company's focus is on growing Carl's Jr. and Hardee's, including dual
branding them with the company's Mexican brands, Green Burrito(R) and Red
Burrito(TM)," Andrew F. Puzder, CKE president and chief executive officer
said. While the company
believes in La Salsa's potential, the company also believes its best
opportunity for improving earnings and cash flow is to devote its
resources to the future of Carl's Jr. and Hardee's. As such, selling La
Salsa to David Kim is in the mutual best interests of both CKE and the La
Salsa brand. David Kim is a former Carl's Jr. franchisee whom the company
knows well and
it wishes him the best with his investment in La Salsa."
"I am pleased that the company will have two great Mexican concept brands
in La Salsa and Baja Fresh," Investor David Kim said. The company
welcomes La Salsa's employees and franchisees to the family. The combined
efficiencies and resources of these two national brands create a dynamic
growth company to
compete in the Mexican food restaurant market."
About CKE Restaurants
Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR) --
http://www.ckr.com-- through its subsidiaries, franchisees and licensees,
operates some of the most popular U.S. regional brands in quick-service
and fast-casual dining, including the
Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and Green
Burrito(R) restaurant brands. The company operates 3,131 franchised,
licensed or company-operated restaurants in 43 states and in 13 countries
–- including Singapore.
* * *
As reported in the Troubled Company Reporter on March 29, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on CKE Restaurants. The outlook is stable.
DIGILAND: Director Reduces Holdings of Direct Shares
----------------------------------------------------
Dr. Vincent Tan Kim Yong, a director of Digiland International Ltd,
reduced his holdings of direct shares in the company on
May 28, 2007.
Before the change, Dr. Yong held 5,573,452,500 with 70.64% issued share
capital. Presently, Dr. Yong holds 5,380,452,500 direct shares with
68.19% issued share capital. Dr. Yong still holds 1,687,750 deemed shares
with 0.02% issued share capital.
The reduction of shares was due to the shares placement through
off-market married deals from May 24, 2007 to May 28, 2007.
Digiland International Limited -- http://www.digiland.com.sg/--
is a major distributor of IT products and provider of IT
services in the Asia-Pacific. The Digiland International Group
of Companies was set up initially as the distribution arm of GES
International Limited to handle sales, marketing and
distribution of GES products, specifically the Datamini brand of
Personal Computer, designed and manufactured by GES
International Limited. It was renamed Digiland International
Private Ltd in 1998 and has since expanded geographically to
cover most countries in Asia-Pacific. The company has been
reporting a string of losses in the recent years due to the
negative impact of the highly cyclical nature of the computer
industry. Sales were adversely affected by the shortening
product cycles of IT products and downward pressure on selling
prices as newer and more technologically advanced products enter
mass production. Aside from recurring losses, the company's
subsidiaries have also been bombarded by wind-up petitions filed
by creditors.
The company has acquired losses for the past two years. For the
fiscal year ended June 2005, the Company's annual report showed
a US$18.7-million loss while fiscal year ended June 2004 showed
a US$44.7-million loss.
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 13, 2006, the company registered US$31.32 million in total
assets and a US$11.94 million shareholders' equity deficit as of
October 12.
PETROLEO BRASILEIRO: In Exploration Talks with Petrochina
---------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro told Neftegaz.ru that the
company is negotiating with Chinese petrochemical giant Petrochina for a
strategic cooperation, which would involve exploration and refining.
Neftegaz.ru relates that Henyo T. Barretto, Petroleo Brasileiro's head
consultant, said that the firm may sign an initial accord with Petrochina
by year-end.
Chinese oil companies have boosted exploration to offset decreasing
production from oil fields, Neftegaz.ru reports.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
SEE HUP SENG: Shareholder Increases Holdings of Deemed Shares
-------------------------------------------------------------
On May 25, 2007, Legg Mason, Inc. added its deemed shares in See Hup Seng
Limited because of placement of shares.
Presently, Legg Mason holds 24,400,000 deemed shares with 6.77% issued
share capital. Prior to the change, Legg Mason held 14,400,000 deemed
stake with 3.99% issued share capital.
See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is
engaged in the provision of corrosion prevention services
through a range of marine and industrial blasting and coating
methods. Its other activities are the provision of tank
cleaning, painting and coating, ship repair, shipbuilding and
scaffolding services, trading and manufacturing of blasting and
painting equipment and investment holding. The group is
domiciled in Singapore and markets its products and services
domestically and in the People's Republic of China, Hong Kong
and Cayman Islands.
Significant Doubt
As reported in the Troubled Company Reporter - Asia Pacific on
May 24, 2006, after reviewing the company's financials for the
year 2005, Moore Stephens -- See Hup Seng's independent auditors
-- expressed significant doubt in the company's ability to
continue as going concern, citing the company's losses and net
current liabilities. Moore Stephens adds that the ability of
the group and the company to continue as going concerns is
dependent the company's debt restructuring exercise.
===============
T H A I L A N D
===============
TONGKAH HARBOUR: Turns Around With THB6-Mil. Net Income in 2006
---------------------------------------------------------------
Tongkah Harbour PCL posted a THB6.09 million net income for the year ended
December 31, 2006, as compared to the THB69.01-million net loss it
reported at December 31, 2005.
In 2006, the company earned total revenues of THB317.18 million and
incurred THB285.04 million in total expenses, and THB29.06 million in
interest expenses.
As of December 31, 2006, the company's current liabilities of
THB353.56 million exceeded its current assets of THB180.79 million,
signifying that the company is illiquid. As of December 31, 2006, the
company had total assets of
THB1.8 billion and total liabilities of THB585.82 million, resulting in a
shareholders' equity of THB1.21 billion.
Headquartered in Bangkok, Thailand, Tongkah Harbour Public Company Limited
-- http://www.tongkahharbour.co-- is primarily engaged in mining
operations. The company is engaged in offshore tin mining, gold
exploration and mining, igneous rock quarrying, as well as property
development and management.
Going Concern Doubt
The Troubled Company Reporter – Asia Pacific reported that after
auditing the company's financial report for the third quarter and
nine-month periods ended Sept. 30, 2006, Kesree Narongdej of A.M.T. &
Associates Ltd expressed doubt on Tongkah's continued operations as a
going concern.
According to the auditor, the company and its subsidiaries have
experienced the continuous operating losses, and its consolidated
financial statements for nine-month period ended September 30, 2006,
showed operating losses of THB44.78 million and a working capital deficit
of THB173.74 million. These may have significant effect on the liquidity
status and the going concern position of the company.
TONGKAH HARBOUR: Posts THB29.52-Mil. Net Loss for 1st Qtr. 2007
---------------------------------------------------------------
Tongkah Harbour PCL posted a THB29.52-million net loss for the quarter
ended March 31, 2007, a 26.43% increase from the THB23.35-million net loss
reported for the same quarter in 2006.
For the January-March 2007 period, the company earned THB143.29
million in total revenues and incurred total expenses of THB158.78 million.
As of March 31, 2007, the company had total assets of THB2.16 million and
total liabilities of THB982.8 million, resulting in a total shareholders'
equity of THB1.18 billion.
Headquartered in Bangkok, Thailand, Tongkah Harbour Public Company Limited
-- http://www.tongkahharbour.co-- is primarily engaged in mining
operations. The company is engaged in offshore tin mining, gold
exploration and mining, igneous rock quarrying, as well as property
development and management.
Going Concern Doubt
The Troubled Company Reporter – Asia Pacific reported that after
auditing the company's financial report for the third quarter and
nine-month periods ended Sept. 30, 2006, Kesree Narongdej of A.M.T. &
Associates Ltd expressed doubt on Tongkah's continued operations as a
going concern.
According to the auditor, the company and its subsidiaries have
experienced the continuous operating losses, and its consolidated
financial statements for nine-month period ended September 30, 2006,
showed operating losses of THB44.78 million and a working capital deficit
of THB173.74 million. These may have significant effect on the liquidity
status and the going concern position of the company.
TONGKAH HARBOUR: SET May Return Stock to Non-Performing Group
-------------------------------------------------------------
The Stock of Exchange of Thailand may return Tongkah Harbour PCL to the
non-performing group if it failed to clarify three points raised by the
Securities and Exchange Commission regarding expense recognition in its
annual report for 2006, the Bangkok Post reports.
The SEC requires clarification whether the expenses were recorded
according to generally accepted accounting principles. The expenses are:
* Profit sharing arrangements with the Industry Ministry's
Department of Primary Industries and Mines totaling THB4.1
Million;
* THB11.6 million pre-payment fees; and
* THB5 million in legal fees.
The company has until June 12 to clarify these expenses.
The Bangkok Post cited DBS Vickers as saying that the company may be
compelled to book the expenses in its 2006 financial statements. DBS
Vickers further said that it may result to a net loss of THB14.7 million.
Headquartered in Bangkok, Thailand, Tongkah Harbour Public Company Limited
-- http://www.tongkahharbour.co-- is primarily engaged in mining
operations. The company is engaged in offshore tin mining,
gold exploration and mining, igneous rock quarrying, as well as
property development and management.
Going Concern Doubt
The Troubled Company Reporter – Asia Pacific reported that after
auditing the company's financial report for the third quarter and
nine-month periods ended Sept. 30, 2006, Kesree Narongdej of A.M.T. &
Associates Ltd expressed doubt on Tongkah's continued operations as a
going concern.
According to the auditor, the company and its subsidiaries have
experienced the continuous operating losses, and its consolidated
financial statements for nine-month period ended September 30, 2006,
showed operating losses of THB44.78 million and a working capital deficit
of THB173.74 million. These may have significant effect on the liquidity
status and the going concern position of the company.
TMB BANK: Will Act as Agent for True's Debenture Offering
---------------------------------------------------------
TMB Bank PCL will act as register and paying agent for True Corp. PCL's
planned issuance of at most THB4 billion worth of subordinated and
unsubordinated debentures, Reuters reports.
The details of the offering are:
* Set 1 – Debentures amounting to at most THB1 billion with
two-year maturity and 5.7% interest rate
* Set 2 – Debentures amounting at most THB2 billion with
three-year maturity and 6.2% interest rate
* Set 3 – Debentures amounting to at most THB1 billion
maturing in 5 years with 6.8% interest rate.
Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders
financial services to all groups of customers. TMB Bank had
total assets of about THB717 billion as at December 31, 2005.
Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.
On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign
currency hybrid Tier 1 rating to B from B+ and revised the
Outlook on TMB's Long-term foreign currency Issuer Default
rating to Stable from Positive.
On May 4, 2007, Moody's retained the following ratings for TMB:
* BSFR is at D-.
* Foreign currency deposit ratings remains at Baa2/P-2.
Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.
TOTAL ACCESS COMMS: Terje Borge to Replace Petter Furberg as CFO
----------------------------------------------------------------
Terje Borge will act as Total Access Communication PCL's Chief
Financial Officer effective August 1, 2007, following Petter B. Furberg's
resignation, Reuters reports.
According to the report, Mr. Furberg cited family reasons for his
resignation, and will stay with the company until the end of July 2007.
True Corporation Public Company Ltd's -– http://www.truecorp.co.th/--
principal activities are the provision of telecommunication services and
various value-added-services that includes: Digital Data Network Direct
Inward Dialing, Integrated Service Digital Network, Public Telephone,
Personal Communication Telephone Service, Multimedia and
Internet Service Provider. Other activities include training
services, online games, rental services and investment holding.
The Troubled Company Reporter – Asia Pacific reported that on
November 22, 2006, Standard & Poor's Ratings Services assigned its BB-
long-term corporate credit rating to Thailand's third-largest cellular
operator, True Move Co. Ltd. The outlook is negative.
At the same time, Standard & Poor's assigned its B issue rating to True
Move's proposed senior unsecured notes, assuming a debt size of about
US$450 million.
The Troubled Company Reporter – Asia Pacific reported on
Nov. 27, 2006, that Moody's Investors Service affirmed True Corporation
Public Company Ltd's Ba3 corporate family rating and at the same time
changed the rating outlook to negative from stable.
TRUE CORP: To Issue THB4 Billion Worth of Debentures
----------------------------------------------------
True Corp. PCL plans to issue secured and unsubordinated debentures
amounting to at most THB4 billion, according to Reuters.
The details of the offering are:
* Set 1 – Debentures amounting to at most THB1 billion with
two-year maturity and 5.7% interest rate
* Set 2 – Debentures amounting at most THB2 billion with
three-year maturity and 6.2% interest rate
* Set 3 – Debentures amounting to at most THB1 billion
maturing in 5 years with 6.8% interest rate.
TMB Bank PCL will act as register and paying agent.
True Corporation Public Company Ltd's -– http://www.truecorp.co.th/--
principal activities are the provision of telecommunication services and
various value-added-services that includes: Digital Data Network Direct
Inward Dialing, Integrated Service Digital Network, Public Telephone,
Personal Communication Telephone Service, Multimedia and
Internet Service Provider. Other activities include training
services, online games, rental services and investment holding.
The Troubled Company Reporter – Asia Pacific reported that on
November 22, 2006, Standard & Poor's Ratings Services assigned its BB-
long-term corporate credit rating to Thailand's third-largest cellular
operator, True Move Co. Ltd. The outlook is negative.
At the same time, Standard & Poor's assigned its B issue rating to True
Move's proposed senior unsecured notes, assuming a debt size of about
US$450 million.
The Troubled Company Reporter – Asia Pacific reported on
Nov. 27, 2006, that Moody's Investors Service affirmed True Corporation
Public Company Ltd's Ba3 corporate family rating and at the same time
changed the rating outlook to negative from stable.
TRUE CORP: To Acquire Future Gamer's Shares for THB20 Million
-------------------------------------------------------------
True Corp. PCL will purchase 1,440,000 ordinary shares or 90% of the total
issued and paid-up shares of Future Gamer Co. Ltd. for THB20 million
through its wholly-owned subsidiary Telecom Holding Co. Ltd.
Future Gamer will be a new subsidiary and will be indirectly owned by the
company after the transaction.
True Corporation Public Company Ltd's -–http://www.truecorp.co.th/--
principal activities are the provision of telecommunication services and
various value-added-services that includes: Digital Data Network Direct
Inward Dialing, Integrated Service Digital Network, Public Telephone,
Personal Communication Telephone Service, Multimedia and Internet Service
Provider. Other activities include training
services, online games, rental services and investment holding.
The Troubled Company Reporter – Asia Pacific reported that on
November 22, 2006, Standard & Poor's Ratings Services assigned its BB-
long-term corporate credit rating to Thailand's third-largest cellular
operator, True Move Co. Ltd. The outlook is negative.
At the same time, Standard & Poor's assigned its B issue rating to True
Move's proposed senior unsecured notes, assuming a debt size of about
US$450 million.
The Troubled Company Reporter – Asia Pacific reported on
Nov. 27, 2006, that Moody's Investors Service affirmed True Corporation
Public Company Ltd's Ba3 corporate family rating and at the same time
changed the rating outlook to negative from stable.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker ($MM) ($MM)
------- ------ ------ ------------
AUSTRALIA
Austar United Communications
Limited AUN 411.16 -43.72
Global Wine Ventures Limited GWV 22.04 -0.84
Hutchison Telecommunications
(Aust) Ltd. HTA 1637.04 -1443.69
Intellect Holdings Limited IHG 15.01 -0.83
KH Foods Ltd KHF 62.30 -1.71
Lafayette Mining Limited LAF 78.17 -127.82
Life Therapeutics Limited LFE 59.00 -0.38
Orbital Corp. Ltd. OEC 14.01 -4.86
RMG Ltd. RMG 22.33 -2.16
Tooth & Co. Ltd. TTH 99.25 -74.39
CHINA AND HONG KONG
Artel Solutions Group
Holdings Limited 931 29.19 -18.65
Asia Telemedia Limited 376 10.89 -5.50
Chang Ling Group 561 77.48 -76.83
Chengdu Book Digital Co. Ltd. 600083 21.50 -3.07
China Kejian Co. Ltd. 35 54.71 -179.23
China Liaoning International
Cooperation (Group) Ltd 638 20.12 -42.96
Datasys Technology
Holdings Ltd 8057 14.1 -2.07
Dynamic Global Holdings Ltd. 231 39.43 -2.21
Everpride Biopharmaceutical
Company Limited 8019 10.16 -2.16
Fujian Changyuan Investment
Holdings Limited 592 31.36 -54.04
Fujian Sannong Group Co. Ltd 732 44.23 -92.62
Guangdong Hualong Groups
Co., Ltd 600242 26.60 -33.10
Guangdong Kelon Electrical
Holdings Co Ltd 921 685.74 -96.88
Guangdong Meiya Group
Company Ltd. 529 107.16 -49.54
Guangxia (Yinchuan) Industry
Co. Ltd. 557 62.19 -115.50
Hainan Dadonghai Tourism
Centre Co., Ltd 613 19.74 -5.81
Hainan Overseas Chinese
Investment Co., Ltd 600759 32.70 -15.28
Hans Energy Company Limited 554 85.00 -0.49
Heilongjiang Black Dragon
Co., Ltd 600187 121.30 -74.45
Hualing Holdings Limited 382 262.90 -32.17
Huda Technology & Education
Development Co. Ltd. 600892 17.12 -0.39
Hunan GuoGuang Ceramic
Co., Ltd. 600286 87.44 -68.55
Hunan Hengyang 600762 68.45 -7.20
Innovo Leisure Recreation
Holdings Ltd. 703 13.37 -3.89
Junefield Department
Store Group Limited 758 16.80 -6.34
Loulan Holdings Limited 8039 13.01 -1.04
New World Mobile Holdings Ltd 862 295.66 -12.53
New City China 456 242.25 -28.46
Orient Power Holdings Ltd. 615 176.86 -64.20
Plus Holdings Ltd. 1013 18.52 -3.34
Shenyang Hejin Holding
Company Ltd. 633 83.18 -20.87
Shenzhen China Bicycle Co.,
Hlds. Ltd. 17 39.13 -224.64
Shenzhen Dawncom Business
Tech. and Service Co., Ltd. 863 79.84 -37.30
Shenzhen Shenxin Taifeng
Group Co., Ltd. 34 95.27 -44.65
Shijiazhuang Refining-Chemical
Co., Ltd 783 357.75 -84.57
Sichuan Changjiang Packaging
Holding Co. Ltd. 600137 13.11 -72.76
Sichuan Topsoft Investment
Company Limited 583 113.12 -148.61
Songliao Automobile Co. Ltd. 600715 49.56 -3.76
Success Information Industry
Group Co. 517 99.92 -14.29
Suntek Technology Co., Ltd 600728 48.81 -16.09
Taiyuan Tianlong Group Co.
Ltd 600234 13.47 -87.63
Tianyi Science & Technology
Co., Ltd 600703 53.41 -28.73
Tibet Summit Industry
Co., Ltd 600338 90.92 -4.05
UNIDA Co., Ltd. 600181 136.43 -12.38
Winowner Group Co. Ltd. 600681 38.03 -62.88
Xiamen Eagle Group Co., Ltd 600711 18.82 -2.74
Yueyang Hengli Air-Cooling
Equipment Inc. 622 49.89 -17.71
Zarva Technology Co. Ltd. 688 101.76 -102.01
Zhejiang Haina Science & Tech
Co., Ltd. 925 21.43 -33.33
INDIA
Andhra Cement Ltd. ANDC 58.94 -13.48
Andrew Yule & Co. Ltd ANY 86.39 -12.47
Ashima Ltd. ASHM 101.78 -35.04
ATV Projects India Ltd. ATV 68.25 -30.17
Bagalkot Udyog Ltd. BUL 20.55 -0.63
Baroda Rayon Corp. Ltd. BR 41.16 -26.62
Birla VXL Ltd. NVXL 98.77 -14.62
CFL Capital Financial
Services Ltd CEATF 25.42 -47.32
Core Healthcare Ltd. CPAR 214.36 -199.02
Deccan Aviation Pte. Ltd. DECA 86.94 -2.83
Dunlop India Limited DNLP 52.75 -65.30
Fairfield Atlas Ltd. ATG 20.03 -0.15
GKW Ltd. GKW 35.75 -13.52
Global Broadcast News Ltd GBN 18.13 -1.27
Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.01
Himachal Futuris HMFC 574.62 -38.68
Hindustan Organic Chemicals
Limited HOC 99.56 -27.65
HMT Ltd. HMT 238.05 -288.85
IFCI Ltd. IFCI 2566.01 -727.71
JCT Electronics Ltd. JCTE 118.28 -165.74
Jenson and Nicholson
(India) Ltd. JN 15.41 -77.32
JK Synthetics Ltd. JKS 24.04 -1.42
Kinetic Engineering Ltd. KNEL 72.82 -5.40
Kothari Sugars and
Chemicals Ltd. NKTSG 43.24 -29.24
Lloyds Steel Industries Ltd. LYDS 380.94 -69.93
LML Ltd. LML 81.21 -11.89
Mafatlal Ind. MFI 95.67 -85.81
Malanpur Steel Ltd. HDC 82.08 -52.01
Modern Threads MRT 78.18 -20.71
Mysore Cements Ltd. MYC 82.02 -14.57
Mysore Kirloskar Ltd. MK 23.71 -3.04
Panchmahal Steel Ltd. PMS 51.02 -0.33
Phil Corporation Ltd. NPPI 22.13 -4.96
RPG Cables Ltd. NRPG 51.43 -20.19
Saurashtra Cement Ltd. SRC 112.31 4.57
Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38
Shree Rama Multi Tech Ltd. NSRMT 86.31 -3.90
Shyam Telecom NSHY 147.34 -22.80
Singer India Ltd. SING 12.32 -6.69
SIV Ind. Ltd. NSIV 101.16 -66.27
SpiceJet Ltd. SJET 121.34 -2.75
Shyam Telecom Limited SHY 147.34 -22.80
Tata Teleservices (Maharashtra)
Limited NTTLS 653.56 -9.99
Uniflex Cables Ltd UFC 17.22 -5.04
UB Engineering Ltd UBE 47.78 -2.77
INDONESIA
Ades Waters Indonesia Tbk ADES 21.35 -8.93
Dharmala Intiland Tbk DILD 197.91 -6.62
Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21
Hotel Sahid Jaya SHID 71.05 -4.26
Jakarta Kyoei Steel Works Tbk JKSW 44.72 -38.57
Mulialand Tbk MLND 141.33 -45.99
Panca Wiratama Sakti Tbk PWSI 39.72 -18.82
Sekar Bumi Tbk SKBM 23.07 -41.95
Steady Safe SAFE 19.65 -2.43
Suba Indah Tbk SUBA 85.17 -9.18
Surya Dumai Industri Tbk SUDI 105.06 -30.49
Toba Pulp Lestrari Tbk INRU 403.58 -198.86
Unitex Tbk UNTX 29.08 -5.87
Wicaksana Overseas
International Tbk WICO 43.09 -46.36
JAPAN
Mamiya-OP Co., Ltd. 7991 152.37 -67.11
Montecarlo Co. Ltd. 7569 66.29 -3.05
Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10
Sumiya Co., Ltd. 9939 89.32 -11.57
Tasco System Co., Ltd 2709 48.45 -14.07
Yakinikuya Sakai Co., Ltd. 7622 79.34 -11.20
KOREA
Belco International Co., Ltd 53470 19.89 -5.49
BHK Inc 3990 24.36 -17.38
C&C Enterprise Co. Ltd. 38420 28.05 -14.50
Cenicone Co. Ltd. 56060 36.82 -1.46
DaeyuVesper Co. Ltd. 41140 19.06 -1.60
EG Greentech Co. 55250 186.00 -1.50
EG Semicon Co. Ltd. 38720 166.70 -12.34
Seji Co., Ltd 53330 37.25 -0.31
MALAYSIA
Ark Resources Bhd ARK 25.91 -28.35
Cygal Bhd CYG 58.47 -69.79
Gefung Holdings Bhd GFHB 21.68 -1.74
Lityan Holdings Berhad LIT 22.22 -19.11
Mentiga Corporation Berhad MENT 22.13 -18.25
Metroplex Bhd MEX 323.51 -49.28
Mycom Bhd MYC 222.58 -136.17
Olympia Industries Bhd OLYM 272.49 -281.44
Pan Malay Industries PMRI 199.08 -6.30
PanGlobal Berhad PGL 189.92 -50.36
Park May Bhd PMY 11.04 -13.58
PSC Industries Bhd PSC 62.80 -116.18
Sateras Resources Bhd. SRM/4278 44.73 -38.82
Setegap Berhad STG 19.92 -26.88
Sino Hua-An International Bhd HUAAN 184.60 -98.30
Wembley Industries
Holdings Bhd WMY 111.72 -204.61
PHILIPPINES
APC Group Inc. APC 67.04 -163.14
Atlas Consolidated Mining and
Development Corp. AT 33.59 -57.17
Cyber Bay Corporation CYBR 11.54 -58.06
East Asia Power Resources Corp. PWR 92.55 -64.61
Filsyn Corporation FYN 19.20 -8.83
Gotesco Land, Inc. GO 17.34 -9.59
Prime Orion Philippines Inc. POPI 98.36 -74.34
Swift Foods Inc. SFI 26.95 -8.23
Unioil Resources & Holdings
Company Inc. UNI 10.64 -9.86
United Paragon Mining Corp. UPM 21.19 -21.52
Universal Rightfield Property UP 45.12 -13.48
Uniwide Holdings Inc. UW 61.45 -30.31
Victorias Milling Company Inc. VMC 127.83 -32.21
SINGAPORE
Compact Metal Industries Ltd. CMI 47.42 -36.47
Falmac Limited FAL 10.51 -2.30
Gul Technologies GUL 155.76 -15.21
HLG Enterprise HLGE 116.77 -8.71
Informatics Holdings Ltd INFO 22.30 -9.14
L & M Group Investments Ltd LNM 56.91 -10.59
Lindeteves-Jacoberg Limited LJ 185.49 -46.43
Pacific Century Regional PAC 1569.35 -88.20
Semitech Electronics Ltd. SEMI 11.01 -0.23
THAILAND
Bangkok Rubber PCL BRC 70.19 -56.98
Central Paper Industry PCL CPICO 40.41 -37.02
Circuit Electronic
Industries PCL CIRKIT 20.37 -64.80
Daidomon Group PLC DAIDO 12.92 -8.51
Datamat Public Co., Ltd DTM 17.55 -1.72
Kuang Pei San Food Products
Public Co. POMPUI 12.51 -9.87
Sahamitr Pressure Container
Public Co. Ltd. SMPC 20.77 -28.13
Sri Thai Food & Beverage Public
Company Ltd SRI 18.29 -43.37
Tanayong PCL TYONG 178.27 -734.30
Thai-Denmark PCL DMARK 21.37 -18.88
Thai-Wah PCL TWC 91.56 -41.24
*********
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 S. Abangan, and Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***