/raid1/www/Hosts/bankrupt/TCRAP_Public/070822.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
Wednesday, August 22, 2007, Vol. 10, No. 166
Headlines
A U S T R A L I A
FILMER TRADING: Shareholders Resolve to Shut Down Business
HECAIN: Declares Dividend for Priority & Unsecured Creditors
JILLYROSE PTY: Declares First Dividend on August 22
LEISK JENKIN: To Declare Second Dividend on September 5
NEWMONT MINING: Sets Members' Final Meeting for August 24
NORTHERN AIR: Declares Dividend for Priority Creditors
OXFO01 PTY: Declares Final Dividend on August 22
PEABODY ENERGY: Reports Organizational Changes
PEABODY ENERGY: Hires Scott Durgin as Operations Manager
PEABODY ENERGY: Hires Morry Davis as Director-Gov't Relations
SMART SERVICES: Members Opt for Voluntary Wind-Up
UNIVERSAL DIESEL: Members to Receive Wind-Up Report on August 24
WHEELS INTERNATIONAL: Placed Under Voluntary Liquidation
C H I N A & H O N G K O N G
ARIBA CHINA: Liquidator Quits Post
ASAT HOLDINGS: Amends Consent Solicitation for 9.25% Sr. Notes
AVICEL ASIA PACIFIC: Suen Pui Yee Quits as Liquidator
CHINA SOUTHERN: Turns Around in 1st-Half with CNY308MM Profit
CHINA SOUTHERN: To Replace Old Aircraft with 55 Boeing Planes
CITIC PACIFIC: Metallurgical Group Takes 20% Stake in Sino-Iron
CYBERSPEED TECHNOLOGY: Creditors to Meet on August 31
DAIICHI DAIMON: Liquidators to Give Wind-Up Report on Sept. 12
DAVID C LEE: Sets Joint Annual Meeting for August 23
HOPSON DEV'T: Land Purchase Has No Effect on Moody's Ratings
K.L. LEE: Members to Receive Wind-Up Report on September 20
KLL ASSOCIATES: Sets Members' General Meeting for September 20
LEOPARD HONG KONG: Liquidator Quits Post
SRE GROUP: Moody's Keeps B1 Family Rating Amid New Purchase
STORAGETEK NORTH: Members to Hear Wind-Up Report on Sept. 14
TERRETON LIMITED: Members' Final Meeting Slated for September 10
UNICORN LIMITED: Creditors' Meeting Set for August 21
I N D I A
AES CORP: Tiete Deciding on Making Investment Outside Sao Paulo
IFCI LTD: Will Stay in Long-Term Financing, Report Says
IFCI LTD: Punjab National Interested in Acquiring 26% Stake
ICICI BANK: Signs US$200-Mil. Credit Line with Korean Eximbank
ICICI BANK: Gets Finance Minister's Nod for ICICI Financial
I N D O N E S I A
ALLIANCE ONE: Earns US$6 Million in 2007 First Quarter
ALLIANCE ONE: Holds Annual Shareholder & Board Meetings
ANEKA TAMBANG: FeNi III Smelter to Resume Operations in Sept.
ARGO PANTES: No Dividend Payment for Fiscal Year 2006
GEOKINETICS INC: Promotes Richard Miles to VP & CEO Positions
HANOVER COMPRESSOR: Expects Universal Merger to Close
MEDCO ENERGI: Signs Heads of Agreement with Ormat and Itochu
MERPATI NUSANTARA: To Revive Abandoned Domestic Flight Routes
MITEL NETWORKS: Zarlink Sells Equity Interest for US$12.9 Mil.
PERUSAHAAN LISTRIK: Signs US$750-Mil. Power Purchase Agreement
SEKAR BUMI: Says No Dividend Payment for Fiscal Year 2006
SUBA INDAH: Bunge Agribusiness Files Bankruptcy Lawsuit
TELKOMSEL: Postpones Bond Issue to Next Year
J A P A N
FLOWSERVE CORP: Paying 15 Cents Per Share Dividend on Oct. 10
FLOWSERVE CORP: Messrs. Friedery & Harlan Elected on Board
NIPPON SHEET: To Build JPY2.3-Billion Plant in India
PAYLESS SHOESOURCE: Completes US$900 Million Stride Rite Buyout
PAYLESS SHOESOURCE: Changes Company Name to Collective Brands
TENNECO INC: Fitch Affirms BB- Issuer Default Rating
K O R E A
ARAMARK CORP: Extends Exchange Offer Expiration Date to Aug. 22
ARAMARK CORP: 8.5% Sr. Notes Offer Set to Expire Today
DM TECHNOLOGY: Converts Second-Convertible Bonds to Shares
EG SEMICON: To Issue 3,773,000 Common Shares for KRW1.9 Billion
E-NET CORPORATION: To Raise KRW9.23 Million from Bond Issuance
M A L A Y S I A
PANGLOBAL BERHAD: Expects to Sell Entire Stake in PGI by Sept.
STAR CRUISES: Unit's Ratings on Moody's Review for Downgrade
STAR CRUISES: Moody's Reviews B1 Rating; Direction Uncertain
* Malaysia's Quality of Mortgages to Remain Stable, Fitch Says
N E W Z E A L A N D
AMALEK HOLDINGS: Undergoes Liquidation Proceedings
BLIS TECHNOLOGIES: Obtains U.S. Patent for New Probiotic Strain
CHASE MEDIA: Fixes August 31 as Last Day to File Claims
CONNEZIONZ LTD: Sets Annual Shareholders Meeting for Sept. 18
DRH WEST: Creditors' Proofs of Debt Due on August 24
EL DORADO: Names Shephard and Dunphy as Liquidators
FAGA CIVIL: Court Appoints Liquidators
FLYOVER INVESTMENTS: Accepting Proofs of Debt Until August 31
GML PROPERTIES: Fixes August 28 as Last Day to File Claims
NZ WINDFARMS: Names Garry Forward as New Chief Financial Officer
PARTS IMPORTS: Commences Liquidation Proceedings
P H I L I P P I N E S
BANGKO SENTRAL: Lifts Moratorium on Quasi-Banking Licenses
GOTESCO LAND: June 30 Balance Sheet Upside-Down By PHP534 Mil.
MAIDENFORM BRANDS: Moody's Rates New US$50 Mil. Term Loan at Ba2
NAT'L POWER: Gov't Seeks to Complete Privatization by Year's End
NIHAO MINERAL: Reports PHP2.29MM Net Loss for 2007 2nd Quarter
PHIL AIRLINES: Par Value of Shares Reduced to PHP0.80 from PHP1
PHIL. AIRLINES: Schedules Annual Meeting for Sept. 17
PHIL. REALTY: Loses PHP42 Million in the Six Months to June 30
PRC LLC: S&P Lowers Corporate Credit Rating to B
RIZAL COMMERCIAL: Posts PHP985-Mil. Income for 2nd Quarter 2007
SAN MIGUEL CORP: Moody's Downgrades Local Currency Rating to Ba2
STENIEL MANUFACTURING: Loses PHP39 Million for the 2nd Quarter
UNIWIDE HOLDINGS: June 30 Bal. Sheet Upside-Down By PHP1.96 Bil.
ZEUS HOLDINGS: Posts PHP28,815 Net Loss for 2nd Quarter 2007
* PSALM Sets Nov. 28 Deadline to Submit Bids for Benguet Plants
* Interest Expenses Decline 16.4% for January-July 2007 Period
* Arroyo Orders Open Access to Ecozone Electricity Supply
S I N G A P O R E
AAR CORP: Terry Stinson to Head Structures & Systems Segment
CHINA CIVIL: Court to Hear Wind-Up Petition on August 31
CHUAN & CO: Accepting Proofs of Debt Until August 31
FALMAC LIMITED: Net Loss Widens to SGD1.4 Mil. in 1st Half 2007
FALMAC LIMITED: Moves to New Location
FALMAC LIMITED: Taps Cheng Ji Jiang as Non-Executive Chairman
SCOTTISH RE: Earns US$102.7 Million in Second Quarter 2007
TARGUS GROUP: S&P Lowers Corp. Credit Rating to B-
T H A I L A N D
THAI PROPERTY: Wants Financials Filing Date Extended to Sept. 20
TRUE CORP: Appoints Norbert Vay and Jens B. Bessai as Directors
TMB BANK: Extends IT Service Pact with DBS Bank for Three Months
* Upcoming Meetings, Conferences and Seminars
- - - - - - - -
=================
A U S T R A L I A
=================
FILMER TRADING: Shareholders Resolve to Shut Down Business
----------------------------------------------------------
The shareholders of Filmer Trading Pty Ltd met on June 26, 2007,
and resolved to shut down the company's business.
Alan Grevler was named as liquidator.
The Liquidator can be reached at:
Alan Grevler
2/2 Northcote Street
St Leonards, New South Wales 2065
Australia
Telephone:(02) 9439 3138
Facsimile:(02) 9906 6944
About Filmer Trading
Filmer Trading Pty Ltd is a distributor of nondurable goods.
The company is located at Kariong, in New South Wales,
Australia.
HECAIN: Declares Dividend for Priority & Unsecured Creditors
------------------------------------------------------------
Hecain Pty Ltd, which is formerly trading as Healthcare
Industries Australia Pty Ltd, declared a dividend for its
priority creditors on August 22, 2007, to the exclusion of those
who were not able to file their claims by August 15.
The company will also declare dividend for its unsecured
creditors on September 7, 2007.
Unsecured creditors who were not able to file their debts by
August 15, 2007, will be excluded from sharing in the company's
dividend distribution.
The company's deed administrator is:
Des Munro
SimsPartners
Level 4, 12 Pirie Street
Adelaide, South Australia 5000
Australia
About Hecain Pty
Hecain Pty Ltd is a distributor of medical and hospital
equipments. The company is located at Glynde, in South
Australia.
JILLYROSE PTY: Declares First Dividend on August 22
---------------------------------------------------
Jillyrose Pty Ltd declared its first and final dividend on
August 22, 2007.
The company's liquidator is:
S. R. Coad
Level 2, 45 Stirling Highway
Nedlands, Western Australia 6009
Australia
About Jillyrose Pty
Located at North Lake, in Western Australia, Jillyrose Pty Ltd
is an investor relation company.
LEISK JENKIN: To Declare Second Dividend on September 5
-------------------------------------------------------
Leisk Jenkin Eltech Pty Ltd will declare the second and final
dividend on September 5, 2007.
Creditors who were not able to file their claims by August 14,
will be excluded from sharing in the company's dividend
distribution.
The company's deed administrator is:
Jack James
KordaMentha
Level 11, 37 St Georges Terrace
Perth, Western Australia 6000
Australia
About Leisk Jenkin
Leisk Jenkin Eltech Pty Ltd provides plumbing, heating and air-
conditioning services. The company is located at Belmont, in
Western Australia.
NEWMONT MINING: Sets Members' Final Meeting for August 24
---------------------------------------------------------
A final meeting will be held for the members of Newmont Mining
Investments Pty Ltd on August 24, 2007, at 10:30 a.m.
At the meeting, the members will receive a report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Sam Davies
McGrathNicol
Level 13, 99 Gawler Place
Adelaide, South Australia 5000
Australia
Telephone: +61 8 8468 3700
Web site: http://www.mcgrathnicol.com
About Newmont Mining
Newmont Mining Investments Pty Ltd provides management
consulting services. The company is located in Adelaide, South
Australia.
NORTHERN AIR: Declares Dividend for Priority Creditors
------------------------------------------------------
Northern Air Charter Pty Ltd, which is in liquidation, declared
the first dividend to its priority creditors on August 17, 2007.
Creditors who were not able to file their claims by August 8,
2007, were excluded from sharing in the company's dividend
distribution.
The company's liquidator is:
M. O. Basedow
Basedows Chartered Accountants
Business Advisors & Recovery Specialists
121 Greenhill Road
Unley, South Australia 5061
Australia
Telephone:(08) 8373 5111
Facsimile:(08) 8373 5511
About Northern Air
Northern Air Charter Pty Ltd is in the business of nonscheduled
air transportation. The company is located in Darwin, NT,
Australia.
OXFO01 PTY: Declares Final Dividend on August 22
------------------------------------------------
Oxfo01 Pty Ltd declared its final dividend on August 22, 2007.
Creditors who were not able to file their claims before
August 15, 2007, were excluded from sharing in the company's
dividend distribution.
The company's deed administrator is:
Des Munro
SimsPartners
Level 4, 12 Pirie Street
Adelaide, South Australia 5000
Australia
Telephone:(08) 8233 9900
About Oxfo01 Pty
Oxfo01 Pty Ltd is a distributor of surgical, medical instruments
and apparatus. The company is located at Seven Hills, in New
South Wales, Australia.
PEABODY ENERGY: Reports Organizational Changes
----------------------------------------------
Peabody Energy Corporation disclosed several organizational
changes to expand the company's continuous improvement
initiatives.
Walter J. Scheller III has been named Senior Vice President and
Group Executive of Colorado Operations, which include the
Twentymile Mine and related facilities near Steamboat Springs.
Mr. Scheller will be responsible for the day-to-day operations
activities of the mine, including safety, continuous
improvement, environmental management, and the review of
strategic growth opportunities in Colorado. He reports to Group
Vice President of Western Operations Kemal Williamson.
Mr. Scheller joined the company in 2006 as Senior Vice President
of Strategic Operations Improvement. He has more than 20 years
of experience in operations and mining engineering and is a
graduate of West Virginia University with a Bachelor of Science
in Mining Engineering. He holds a Juris Doctorate from Duquesne
University School of Law and a master's degree in Business
Administration from the University of Pittsburgh.
In addition, Larry B. Ellgen has been named Group Controller for
the Colorado Operations, reporting to Scheller, effective
Sept. 1. Mr. Ellgen has nearly 20 years of coal industry
experience in various financial functions. He holds a Bachelor
of Science degree in Accounting from Brigham Young University.
Charles F. Meintjes will join the company as Senior Vice
President of Operations Improvement, replacing Mr. Scheller. In
this position, Mr. Meintjes will be responsible for leading the
company's operations continuous improvement initiatives and
implementation of standard operating procedures across Peabody
global operations. He will report to Executive Vice President
and Chief Operating Officer Eric Ford.
Mr. Meintjes has a strong mining industry background and has
managed financial and technical functions, large re-engineering
programs, IT system implementations, and large industrial
construction projects. He most recently served as a consultant
to Exxaro Resources Limited in Pretoria, South Africa, and is
the former Executive Director, board member and Executive Vice
President of Support Services of Kumba Resources Limited, one of
the largest iron ore, coal, zinc and heavy minerals mining
companies in South Africa. He also has senior management
experience in continuous improvement and information services
with Iscor Limited (now Mittal Steel) and Alusaf Limited in
South Africa.
Mr. Meintjes holds Bachelor of Commerce degrees in Accounting
from both Rand Afrikaans University and the University of South
Africa. He is a Chartered Accountant in South Africa.
In addition, several management changes have been made in the
finance and commercial organizations.
-- Lina A. Young has been named to the new position of Senior
Vice President of Marketing Commercial Services, effective
Sept. 24. Young will report to COALSALES President Bryan
A. Galli. Reporting to Mr. Young will be Curtis P.
Tichenor, Vice President of Commercial Analytics and
Contract Management; F. Andrew Roberts, Director of Market
Analysis; and Leah A. Bennett, Senior Accounting Manager.
Lisa M. Cantwell has also been named Director of Contract
Management, effective Sept. 1, reporting to Mr. Tichenor.
-- Robert L. Reilly has been named Senior Vice President of
Business and Resource Development, reporting to Chief
Financial Officer and Executive Vice President of
Corporate Development Richard A. Navarre. Mr. Reilly
replaces Charles A. Ebetino, who will become Senior Vice
President of Corporate Development at such time as a
spinoff or other transaction occurs to create Patriot Coal
Corporation. Reporting to Mr. Reilly are Vice President
of Resource Development James C. Sevem and a shared
Business Development Resource group.
-- Walter L. Hawkins has been named Senior Vice President and
Treasurer, also reporting to Navarre. Reporting to
Mr. Hawkins are Director of Insurance and Enterprise Risk
Management Ryan W. Brown, Director of Credit Management
Matthew S. Davis, Manager of Treasury Operations John
F. Busch and an Assistant Treasurer. The Risk Management
function, headed by Thomas B. Swaykus, will now also
report to Mr. Hawkins.
-- Michael C. Crews has been named to the new position of
Vice President of Operational Planning, reporting to
Executive Vice President and Chief Operating Officer Eric
Ford. Reporting to Mr. Crews will be Jeffrey D.
Timmermann, Director of Operational Planning.
-- Bradley E. Phillips replaces Mr. Crews as Vice President
of Financial Planning and Analysis, also reporting to
Mr. Navarre. Reporting to Mr. Phillips are James F.
Gardner, Director of Capital Planning, and Amy B. Schwetz,
Director of Financial Planning. Mr. Schwetz replaces
Mr. Phillips as Director of Financial Planning. Reporting
to Mr. Schwetz are Daniel E. Heath, Senior Manager of
Financial Planning and Carolyn G. Bowles, Manager of
Financial Planning.
-- Debra A. Drake has been named to the new position of Vice
President of Trading and Administration, reporting to
COALTRADE President Stephen L. Miller. Reporting to
Mr. Drake are Director of Trading Robert E. Carswell and
Senior Manager of Sales and Marketing Victor H. Soto.
-- Robert W. Bland, Vice President of Sales and Marketing,
will now report to COALTRADE President Stephen L. Miller.
-- Barbara E. Busby, Vice President of Sales and Marketing,
will now report to Senior Vice President of Sales and
Marketing for the Powder River Basin James C. Campbell Jr.
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and US$4.6 billion in revenues. Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity. The company has coal operations in Australia and
Venezuela.
* * *
As reported in the Troubled Company Reporter on Mar 9, 2007,
Moody's Investors Service reported that, after the adoption of
final guidelines for preferred stock and hybrid securities
notching, it downgraded Peabody Energy Corporation's hybrid
instrument to Ba3. This instrument has been placed on review
for downgrade.
PEABODY ENERGY: Hires Scott Durgin as Operations Manager
--------------------------------------------------------
Peabody Energy Corporation has named Scott N. Durgin Operations
Manager for the Rawhide Mine near Gillette, Wyoming. Mr. Durgin
is responsible for the day-to-day operations activities at the
17 million ton-per-year mine, including safety, continuous
improvement, sourcing, environmental management and finance. He
reports to Powder River Basin Group Executive D.L. Lobb.
"Scott has broad-based engineering, operations and continuous
improvement experience," said Mr. Lobb. "I'm confident his
leadership will help us continue to execute the basics through
safe, low-cost, and productive operations."
Most recently, Mr. Durgin served as Senior Manager of Operations
Support at Peabody's North Antelope Rochelle Mine, the nation's
premier ultra-low sulfur mine. In this position, he helped lead
engineering efforts to commission a Bucyrus-Erie 2570 dragline
and in-pit conveyor system that together will reduce Peabody's
fuel costs by 16 percent and increase productivity by more than
10 percent.
He joined a Peabody subsidiary in 1996 as a mine engineer and
has served in multiple mine management positions, including
Production Manager at the North Antelope Rochelle Mine and as an
Engineering and Environmental Manager at Peabody's Caballo Mine.
Mr. Durgin holds both a Bachelor of Science in Mining
Engineering and a Master of Science in Technical Management from
the South Dakota School of Mines and Technology. Mr. Durgin
serves on the Mining Engineering and Management Program
Industrial Advisory Board of the South Dakota School of
Mines and Technology and is a member of Society of Mining
Engineers and Society of Explosive Engineers.
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and US$4.6 billion in revenues. Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity. The company has coal operations in Australia and
Venezuela.
* * *
As reported in the Troubled Company Reporter on Mar 9, 2007,
Moody's Investors Service reported that, after the adoption of
final guidelines for preferred stock and hybrid securities
notching, it downgraded Peabody Energy Corporation's hybrid
instrument to Ba3. This instrument has been placed on review
for downgrade.
PEABODY ENERGY: Hires Morry Davis as Director-Gov't Relations
-------------------------------------------------------------
Peabody Energy Corp. has named Morry C. Davis Director of
Government Relations. He is responsible for serving as a
liaison with Midwestern state legislators and constituent groups
and leading educational community and minority outreach
programs.
Mr. Davis is also actively involved in bipartisan advocacy in
local, state and federal legislatures for Btu Conversion and
coal-fueled generation development initiatives. He reports
jointly to Vice President of Federal Government Relations W.
Christopher Leahy and Vice President of State Government
Relations Kelly F. Mader.
Most recently, Davis served as Manager of Government Relations.
He joined Peabody in 2001 as a Management Associate, where he
focused on market research and generation development.
Mr. Davis holds a Bachelor of Science in Management from Purdue
University with concentrations in Finance and Information
Management and an MBA from Washington University in St. Louis.
He is a founding member of the Southeastern Missouri -- Southern
Illinois Chapter of the American Association of Blacks in Energy
and is a member of the National Black MBA Association and the
American Coal Council.
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and US$4.6 billion in revenues. Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity. The company has coal operations in Australia and
Venezuela.
* * *
As reported in the Troubled Company Reporter on Mar 9, 2007,
Moody's Investors Service reported that, after the adoption of
final guidelines for preferred stock and hybrid securities
notching, it downgraded Peabody Energy Corporation's hybrid
instrument to Ba3. This instrument has been placed on review
for downgrade.
SMART SERVICES: Members Opt for Voluntary Wind-Up
-------------------------------------------------
On July 18, 2007, the members of Smart Services Partners Pty
Limited had a meeting and resolved to voluntarily liquidate the
company's business.
David Watson and Schon G Condon RFD were named as liquidators.
The Liquidators can be reached at:
David Watson
Schon G Condon RFD
c/o Condon Associates
Australia
Telephone:(02) 9893 9499
About Smart Services
Smart Services Partners Pty Limited provides management
consulting services. The company is located at Artarmon, in New
South Wales, Australia.
UNIVERSAL DIESEL: Members to Receive Wind-Up Report on August 24
----------------------------------------------------------------
The members of Universal Diesel Engineering Pty Ltd will have
their general meeting on August 24, 2007, at 10:45 a.m., to hear
the liquidator's report about the company's wind-up proceedings
and property disposal.
The company's liquidator is:
A. R. M. Taylor
Meertens Chartered Accountants
Level 1, 49 Woods Street
Darwin NT 0800
Australia
Telephone:(08) 8923 9239
Facsimile:(08) 8942 3250
About Universal Diesel
Universal Diesel Engineering Pty Ltd provides engineering
services. The company is located in Darwin, NT, Australia.
WHEELS INTERNATIONAL: Placed Under Voluntary Liquidation
--------------------------------------------------------
During a general meeting held on June 29, 2007, the members of
Wheels International Pty Ltd agreed to voluntarily liquidate the
company's business.
About Wheels International
Wheels International Pty Ltd operates investment offices. The
company is located at Myrtle Bank, in South Australia.
================================
C H I N A & H O N G K O N G
================================
ARIBA CHINA: Liquidator Quits Post
----------------------------------
Suen Pui Yee (P Y Suen) ceased to act as liquidator of Ariba
(China) Limited on July 27, 2007.
The former Liquidator can be reached at:
Suen Pui Yee (P Y Suen)
Gloucester Tower, 8th Floor
The Landmark, 15 Queen's Road
Central, Hong Kong
ASAT HOLDINGS: Amends Consent Solicitation for 9.25% Sr. Notes
--------------------------------------------------------------
ASAT Holdings Limited previously announced on August 1, 2007,
that its wholly owned subsidiary, New ASAT (Finance) Limited, is
soliciting consents from the holders of the US$150 million
aggregate principal amount of outstanding 9.25% Senior Notes due
2011 (the "Senior Notes) to the amendment of certain provisions
of the indenture, dated as of January 26, 2004, pursuant to
which the Senior Notes were issued.
ASAT is seeking consents for amendment or waiver of certain
defaults and events of default that may have occurred or may
occur. The proposed amendments, if adopted, will among other
things:
(i) eliminate restrictions on the value of the assets that
may be held by ASAT Semiconductor (Dongguan) Limited,
ASAT Holdings' Chinese subsidiary;
(ii) expand the ability of ASAT Holdings and its subsidiaries
to secure financing from additional sources; and
(iii) extend the deadline for ASAT Holdings to fulfill its
reporting obligations under the indenture.
ASAT now is amending the terms of the consent solicitation and
extending the expiration date. The consent solicitation will
now expire at 5:00 p.m., New York City time, on August 23, 2007,
unless extended by the Company. Only holders of record as of
5:00 p.m., New York City time, on July 25, 2007, are eligible to
deliver consents to the proposed amendments in the consent
solicitation.
In addition, the Company announced that ASAT Holdings will pay a
consent fee in the form of warrants, which are exercisable into
ordinary shares of ASAT Holdings, to consenting holders. The
consent fee is subject to the proposed amendments becoming
operative and other conditions specified in the Amended Consent
Solicitation Statement, including consenting holders'
eligibility under U.S. securities laws to receive warrants. If
every holder of Senior Notes consents to the proposed amendments
and is eligible to receive warrants, then the warrants would, in
the aggregate, be exercisable for a total of 5% of ASAT
Holding's total outstanding ordinary shares on a fully diluted
basis (inclusive of ordinary shares issuable upon exercise of
warrants to the holders themselves and which ASAT Holdings
expects to grant to the lenders under its purchase money loan
agreement, dated as of July 31, 2005, in exchange for their
consent to certain amendments to the terms of that agreement
which are being discussed by the parties currently). The
warrants will have an exercise price of US$0.01 per ordinary
share, subject to adjustment as provided in the warrants and the
other terms and conditions contained therein. The warrants will
expire on February 1, 2011.
Holders of the Senior Notes are referred to the Company's
Amended Consent Solicitation Statement and materials, which will
be mailed to each record holder, for the detailed terms and
conditions of the consent solicitation, as amended.
ASAT Holdings is using Piper Jaffray & Co. to serve as
Solicitation Agent for the consent solicitation. Questions
concerning the terms of the consent solicitation should be
directed to Michael Hsieh of Piper Jaffray & Co. at (212) 284-
9589. ASAT Holdings has also retained The Bank of New York to
serve as its Information Agent, Tabulation Agent and Payment
Agent for the consent solicitation. Requests for assistance in
delivering consents should be directed to David A. Mauer of The
Bank of New York at (212) 815-3687. Requests for copies of the
Consent Solicitation Statement can be directed to either Piper
Jaffray & Co. or The Bank of New York.
Completed consents should be sent to David A. Mauer, The Bank of
New York, Corporate Trust Operations, Reorganization Unit, 101
Barclay Street-7 East, New York, NY, 10286, USA.
The warrants referenced above and the ordinary shares into which
they will be exercisable have not been registered under the
Securities Act of 1933, or any state securities laws, and will
be sold in a private transaction under Regulation D and
Regulation S. Unless the warrants and ordinary shares are
registered, they may not be offered or sold in the United States
except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state laws.
About ASAT Holdings
ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/--
is a global provider of semiconductor package design, assembly
and test services. With 18 years of experience, the company
offers a definitive selection of semiconductor packages and
world-class manufacturing lines. ASAT's advanced package
portfolio includes standard and high thermal performance ball
grid arrays, leadless plastic chip carriers, thin array plastic
packages, system-in-package and flip chip. ASAT was the first
company to develop moisture sensitive level one capability on
standard leaded products. Today the company has operations in
the United States, Hong Kong, China, and Germany.
ASAT Holdings Limited's consolidated balance sheet at April 30,
2007, showed US$135.1 million in total assets, US$217.7 million
in total liabilities, and US$5.7 million in series A redeemable
convertible preferred shares, resulting in a US$88.3 million
total stockholders' deficit.
AVICEL ASIA PACIFIC: Suen Pui Yee Quits as Liquidator
-----------------------------------------------------
On July 27, 2007, Suen Pui Yee (P Y Suen) quit as liquidator of
Avicel Asia Pacific, Limited.
The former Liquidator can be reached at:
Suen Pui Yee (P Y Suen)
Gloucester Tower, 8th Floor
The Landmark, 15 Queen's Road
Central, Hong Kong
CHINA SOUTHERN: Turns Around in 1st-Half with CNY308MM Profit
-------------------------------------------------------------
China Southern Airlines booked a net profit of CNY308 million in
the first half of 2007, a turnaround from the CNY854-million net
loss in the same period a year earlier, mainly due to increased
passenger traffic and the appreciation of the Chinese yuan.
The figure, according to the company's filing with the Shanghai
Stock Exchange, were obtained using Chinese accounting
standards.
Citing the company's filing with the Shanghai bourse, media
reports note that the airline carried 26.44 million passengers
in the first half, up 16.6% year-on-year, and 403,500 tons of
mail and cargo, up 7.2%. Passenger load factor in the first
half was 71.9%, up 1.7 percentage points from a year earlier.
China Southern's operating revenue rose 19.23% year-on-year to
CNY25.21 billion, while operating costs were also up 17.6% to
CNY21.971 billion mainly due to rising jet fuel prices.
In addition, the company also disclosed that it booked a foreign
exchange gain of CNY1.266 billion in the period as a result of
the yuan's appreciation. Earnings per share stood at CNY0.07,
against a loss of CNY0.20 per share a year earlier.
Under international accounting standards, the airlines booked a
net profit of CNY168 million, against a net loss of
CNY825 million a year ago.
Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com/-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
On May 1, 2006, Fitch Ratings downgraded China Southern Airlines
Company Limited's Foreign Currency and Local Currency Issuer
Default Ratings to B+ from BB-.
CHINA SOUTHERN: To Replace Old Aircraft with 55 Boeing Planes
-------------------------------------------------------------
China Southern Airlines will buy 55 Boeing B737-700 and B737-800
aircraft to replace the old ones and to enhance its core
competence, Infocast News reports.
The acquisition will be funded partly by the company's internal
cash and partly by loans, the news agency adds.
The catalogue price of a Boeing B737-700 aircraft is in the
range of US$57-67.5 million and a Boeing B737-800 aircraft is in
the range of US$70.5-79 million.
Boeing will deliver the planes in stages to China Southern from
May 2011 to October 2013, Infocast relates.
According to China Southern, the acquisitions of the Boeing
Aircraft is beneficial to the implementation of its development
strategy and improvement of its operating capacity in order to
accommodate the continuous growth in demand for aviation
services in China.
The carrier said that in addition to the 37 Boeing B737-800
aircraft, the six Boeing B777F freighters and the 20 Airbus A320
series aircraft acquired in the past 12 months, the new
aircrafts will increase the available tonne kilometers of the
group by 32.8%.
Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com/-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
On May 1, 2006, Fitch Ratings downgraded China Southern Airlines
Company Limited's Foreign Currency and Local Currency Issuer
Default Ratings to B+ from BB-.
CITIC PACIFIC: Metallurgical Group Takes 20% Stake in Sino-Iron
---------------------------------------------------------------
CITIC Pacific Ltd sold a 20% stake in Sino-Iron Pty Ltd to China
Metallurgical Group Corp. for US$448 million, Infocast News
says.
After the stake sale, CITIC Pacific will now own 80% of its
magnetite mining subsidiary in Australia.
Sino-Iron, according to the news agency, is currently involved
in the mining and extraction of magnetite ore in Western
Australia.
In line with the acquisition, Sino-Iron also entered into an
agreement with MCC to revise the construction contract sum for
the Sino-Iron project to US$1.75 billion from US$1.11 billion.
CITIC Pacific said MCC's participation in the projects will
better align the interests of MCC and that of the CITIC group,
as well as generating economies of scale, operational efficiency
and cost savings.
Based in Hong Kong, CITIC Pacific Ltd --
http://www.citicpacific.com/-- is engaged in a range of
businesses in China and Hong Kong, including steel
manufacturing, property development and investment, power
generation, aviation, infrastructure, communications and
distribution. It is 29% indirectly owned by China International
Trust & Investment Corporation.
On June 28, 2006, The Troubled Company Reporter-Asia Pacific
reported that Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on CITIC Pacific Ltd to BB+
from BBB-. At the same time, it removed the rating from
CreditWatch, where it had been placed with negative implications
on April 7, 2006. The outlook is stable.
In addition, the TCR-AP also reported that Moody's Investors
Service on June 16, 2006, assigned a Ba1 corporate family rating
to CITIC Pacific Ltd and has withdrawn its Baa3 issuer rating.
The senior unsecured rating for CITIC Pacific Finance (2001)
Ltd's bond is downgraded to Ba1 from Baa3. The rating outlook
is stable. This concludes the review initiated by the rating
agency in April 2006.
CYBERSPEED TECHNOLOGY: Creditors to Meet on August 31
-----------------------------------------------------
Cyberspeed Technology Co., Limited will hold a meeting for its
creditors on August 31, 2007, at 2:30 p.m., in the Training Room
B, Ground Floor of The Centre at 99 Queen's Road in Central,
Hong Kong.
DAIICHI DAIMON: Liquidators to Give Wind-Up Report on Sept. 12
--------------------------------------------------------------
Daiichi Daimon Hong Kong Co., Limited will hold a final meeting
for its members on September 12, 2007, at 10:30 a.m., on the
35th Floor of One Pacific Place at 88 Queensway, Hong Kong.
Lai Kar Yan (Derek) and Darach E. Haughey, the company's
liquidators, will give at the meeting a report about the
company's wind-up proceedings and property disposal.
DAVID C LEE: Sets Joint Annual Meeting for August 23
----------------------------------------------------
The members and creditors of David C Lee Surveyors Limited will
have their annual meetings on August 23, 2007, at 3:00 p.m. and
3:30 p.m., respectively, at the offices of Baker Tilly Hong
Kong, 12th Floor of China Merchants Tower, Shun Tak Centre at
168-200 Connaught Road in Central, Hong Kong.
HOPSON DEV'T: Land Purchase Has No Effect on Moody's Ratings
------------------------------------------------------------
On August 20, 2007, Moody's Investors Service affirmed its Ba2
corporate family and senior unsecured ratings of Hopson
Development Holdings Limited. The outlook remains stable.
The affirmation follows the company's announcement that it will
purchase from its affiliate the entire equity interest in
Shanghai Dazhan Investment Management Company Limited, which has
recently acquired a parcel of land in Shanghai for investment
property purpose. Total consideration, including the land
premium, amounts to CNY1,409 million.
"While the investment property nature of this project will
enhance Hopson's future recurring cash flow, this transaction,
together with the company's earlier acquisition in Beijing, will
consume a significant portion of Hopson's cash on hand," says
Kaven Tsang, Moody's lead analyst for Hopson.
"As such, Hopson will need to draw on additional debts to
maintain balance sheet liquidity and fund project constructions
that would somehow expose the company to the current volatile
market environment. Nevertheless, projected adjusted
debt/capitalization will stay at around 45% in the medium term,
which is considered appropriate for the current rating level,"
says Tsang, adding "however, further aggressive expansions that
weaken the balance sheet liquidity or increase leverage will
pressure the ratings."
Hopson Development Company Holdings Limited (Hopson) is one of
the largest property developers in China. Its principal
businesses are residential developments in 4 major cities --
Guangzhou, Beijing, Shanghai and Tianjin -- and their
surrounding areas.
K.L. LEE: Members to Receive Wind-Up Report on September 20
-----------------------------------------------------------
The members of K.L. Lee & Partners C.P.A. Limited will meet on
September 20, 2007, at 10:00 a.m., to hear the liquidators'
report about the company's wind-up proceedings and property
disposal.
The meeting will be held on the 29th Floor of Wing On Centre, at
111 Connaught Road in Central, Hong Kong.
KLL ASSOCIATES: Sets Members' General Meeting for September 20
--------------------------------------------------------------
The members of KLL Associates CPA Limited will meet on
September 20, 2007, at 10:00 a.m., on the 29th Floor of Wing On
Centre at 111 Connaught Road in Central, Hong Kong.
The members will hear, at the meeting, a report about the
company's wind-up proceedings and property disposal.
LEOPARD HONG KONG: Liquidator Quits Post
----------------------------------------
Suen Pui Yee (P Y Suen) quit as the liquidator of Leopard Hong
Kong, Limited on July 27, 2007.
The former Liquidator can be reached at:
Suen Pui Yee (P Y Suen)
Gloucester Tower, 8th Floor
The Landmark, 15 Queen's Road
Central, Hong Kong
SRE GROUP: Moody's Keeps B1 Family Rating Amid New Purchase
-----------------------------------------------------------
Moody's Investors Service, on August 20, 2007, has affirmed its
B1 corporate family and senior unsecured ratings of SRE Group
Limited. The outlook remains stable.
The affirmation follows the company's announcement that it will
purchase from its major shareholder at a consideration of
HK$1.6 billion a 100% interest in Konmen Investment Limited,
which in turn has a 70% interest in a development project in
Shenyang with around 900,000 sqm in gross floor area.
"SRE's debt service coverage metrics will largely be unaffected,
as the transaction is fully equity funded," says Kaven Tsang,
Moody's lead analyst for SRE, adding, "While this new project
will increase near-term construction expenditure, it will
strengthen SRE's position in Shenyang and its presale cash flow
over the medium term."
Moody's notes that the legal title of the Shenyang project has
not yet been cleared and is subject to completion of the
resettlement. The affirmation is based on the expectation of
successful completion of the resettlement and hence the title
transfer by end-2008. Partly mitigating such risk, the major
shareholder has undertaken to repay SRE the acquisition amount
in cash if the title remains unclear by June 2009.
Moody's further notes that the new equity issuance will raise
the major shareholder's interest in SRE to 44% from 31%
currently, which will trigger the Takeover Code. As such, the
major shareholder will apply for a waiver, which is subject to
the approval of independent shareholders.
After the new equity issuance, SRE's adjusted
debt/capitalization will improve to 40-45% from 51% as of end-
2006. Core rating drivers going forward remain SRE's ability to
carry out its business plan and demonstrate financial discipline
in managing its land bank acquisition and business expansion.
SRE Group Limited was established in 1993 and listed on the Hong
Kong Stock Exchange in 1999. The company focuses on mid-to-
high-end residential development in Shanghai. It currently
possesses a land bank of about 1.4 million sqm in Shanghai and
about 1.9 million sqm in Shenyang, sufficient for five years of
development.
STORAGETEK NORTH: Members to Hear Wind-Up Report on Sept. 14
------------------------------------------------------------
The members of Storagetek North Asia Limited will have their
final general meeting on September 14, 2007, at 10:00 a.m., to
hear the liquidator's report about the company's wind-up
proceedings and property disposal.
The meeting will be held on the 66th Floor of Central Plaza at
18 Harbour Road in Wanchai, Hong Kong.
TERRETON LIMITED: Members' Final Meeting Slated for September 10
----------------------------------------------------------------
A final meeting will be held for the members of Terreton Limited
on September 10, 2007, at 10:00 a.m., on the 8th Floor of
Gloucester Tower, The Landmark at 15 Queen's Road Central, Hong
Kong.
Thomas Andrew Corkhill, the company's liquidator, will give at
the meeting a report about the company's wind-up proceedings and
property disposal.
UNICORN LIMITED: Creditors' Meeting Set for August 21
-----------------------------------------------------
The creditors of Unicorn Limited will have their meeting on
August 21, 2007, at 11:30 a.m., to hear the liquidator's report
about the company's wind-up proceedings and property disposal.
The meeting will be held at the boardroom of Baker Tilly Hong
Kong, 12th Floor of China Merchants Tower, Shun Tak Centre, at
168-200 Connaught Road in Central, Hong Kong.
=========
I N D I A
=========
AES CORP: Tiete Deciding on Making Investment Outside Sao Paulo
---------------------------------------------------------------
The AES Corp.'s Brazilian power generation firm AES Tiete Chief
Executive Officer Britaldo Soares told the press that the firm
will decide on whether to invest in new capacity outside Sao
Paulo when it gets government authorization.
Business News Americas relates that the Sao Pauolo state
government and federal power regulator Aneel will decide on
whether it will let AES Tiete make the investment.
Mr. Soares commented to BNamericas, "We haven't heard from
anybody yet."
BNamericas notes that under its 1999 privatization contract, AES
Tiete must construct new projects in Sao Paulo to expand its
capacity by 15% by December 2007 from 2.65 giga watts.
Mr. Soares told BNamericas that because of the 2004 changes in
the power sector and the lack of investment potential within Sao
Paulo, AES Tiete has failed to make investments in recent years.
AES Tiete will invest some BRL75.5 million, including
investments in new Sao Paulo hydro projects, this year,
BNamericas says.
Almost all of Sao Paulo's hydroelectric potential has been used,
BNamericas notes, citing Mr. Soares. The lack of natural gas
supply guarantees and difficulties in getting environmental
licensing has also reduced chances for new thermo investments.
BNamericas relates that AES Tiete proposed that the Sao Paulo
state government and Aneel let it invest in new capacity outside
the state and buy power from third parties in five-year
contracts to meet the 400-megawatt capacity increase mandates.
Mr. Soares commented to BNamericas, "Tiete has the resources for
new investments and the company's objective is to continue
growing. We have taken the first steps."
According to the report, AES Tiete is "improving its financial
returns and investing in small-scale hydro projects in Sao Paulo
and Rio de Janeiro. Investments include three projects in Sao
Paulo with combined capacity of eight megawatts and three in Rio
de Janeiro with combined capacity of 52 megawatts."
AES Tiete earned BRL303 million in the first half of 2007. It
will distribute all the profits in dividends to shareholders,
BNamericas states, citing Mr. Soares.
About AES Tiete
AES Tiete SA is controlled by the Brasiliana holding company,
which is a joint venture between US-based AES Corp. and Brazil's
National Development Bank aka BNDES. It is a ten-dam
hydroelectric generating company located in the State of Sao
Paulo, Brazil. The company has been granted the right to
operate the dams pursuant to a 30-year concession agreement.
About AES Corp.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Specifically, it also has operations
in India. Generating 44,000 megawatts of electricity through
124 power facilities, the company delivers electricity through
15 distribution companies. The company's Latin America business
group is comprised of generation plants and electric utilities
in Argentina, Brazil, Chile, Colombia, Dominican Republic, El
Salvador, Panama and Venezuela.
AES has been in Eastern Europe for over ten years, since it
acquired three power plants in Hungary in 1996. Currently, AES
has two distribution companies in Ukraine, which serve 1.2
million customers and generation plants in the Czech Republic
and Hungary. AES is also the leading company in biomass
conversion in Hungary, generating 37% of the nation's total
renewable generation in 2004.
* * *
On Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
given-default rating methodology. Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.
IFCI LTD: Will Stay in Long-Term Financing, Report Says
-------------------------------------------------------
IFCI Limited may remain a financial services firm focusing on
long-term financing instead of applying for a banking license,
Sanjiv Shankaran writes for livemint.com.
Pure debt doesn't help the company in attaining the required
degree of commercial viability, Mr. Shankaran quotes an unnamed
member of the IFCI's board of directors as saying.
Livemint recalls that India's finance ministry officials earlier
said that the Reserve Bank of India is not willing to give IFCI
banking licenses. Government financial institutions, like IFCI,
find it hard to compete with banks because the former access
resources at a higher cost.
The decision to remain in long-term financing came after the
company asked itself "where do we fit in," the board member told
livemint.
IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector. The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services. Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.
Non-project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project. Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 3, 2007, India's Credit Analysis & Research Ltd. retained
a CARE D rating to IFCI's Long & Medium Term Debt aggregating
INR91.36 crore. The amount represents the outstanding non-
restructured amount under the Bonds series, which have been
rated by CARE.
Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating
at '4'. The outlook on the rating is stable.
IFCI LTD: Punjab National Interested in Acquiring 26% Stake
-----------------------------------------------------------
Punjab National Bank may bid for the 26% holding in IFCI Ltd.,
The Economic Times reports.
As previously reported by the Troubled Company Reporter-Asia
Pacific, IFCI's board of directors approved the move for the
company to invite expressions of interest for a strategic
investor, in whom the company plans to divest a 26% stake.
IFCI wants to raise as much as US$250 million by selling up 26%
in fresh equity. IFCI has tapped Ernst & Young to look for the
strategic investor.
"The bank's board will take a final call on the matter," The
Times quotes PNB chairman and managing director K.C. Chakraborty
as saying.
Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and
Barclays are reportedly also interested in buying the stake.
The process of inviting Expressions of Interest kicked off last
week. The last date for submission of EOIs is Sept. 14, after
which IFCI would shortlist the best suitable candidate.
Request for proposal will be issued on Oct. 1, and the entire
process for the sale of the stake would be complete by the end
of January.
IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector. The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services. Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.
Non-project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project. Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 3, 2007, India's Credit Analysis & Research Ltd. retained
a CARE D rating to IFCI's Long & Medium Term Debt aggregating
INR91.36 crore. The amount represents the outstanding non-
restructured amount under the Bonds series, which have been
rated by CARE.
Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating
at '4'. The outlook on the rating is stable.
ICICI BANK: Signs US$200-Mil. Credit Line with Korean Eximbank
--------------------------------------------------------------
ICICI Bank Ltd has signed a credit line of up to US$200 million
with The Export-Import Bank of Korea to finance Indian firms
that has ties with Korea.
The bank's Hong Kong branch will use the money to meet foreign
currency requirements that apply to Indian companies with equity
participation by Korean companies and companies with a business
relationship with Korean companies, AFX News Limited relates.
Bloomberg News, citing ICICI Deputy Managing Director Chanda
Kochhar, specifies that the funds will be used to provide loans
either for working capital or for a longer term of as much as 14
years.
The bank believes the transaction would deepen the commercial
links between the two nations.
ICICI's managing director and CEO K.V. Kamath told The Economic
Times that the bank is also exploring a similar opportunity with
other countries, depending upon the trading volumes they share
with India.
ICIC had taken a similar US$200-million LoC from the Japan Bank
for International Cooperation last year, and has drawn up to
US$150 million till now, The Times noted.
India-based ICICI Bank Ltd -- http://www.icicibank.com/-- is a
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services. The bank
operates in two business segments: consumer and commercial
banking, and investment banking. ICICI has a network of over
741 branches and over 3,300 ATMs in India.
The bank has operations in Russia and the United States.
* * *
Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.
ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.
ICICI BANK: Gets Finance Minister's Nod for ICICI Financial
-----------------------------------------------------------
India's Finance Minister P. Chidambaram has approved the
proposal of ICICI Bank Ltd to set up a holding company for
insurance and mutual fund businesses, leaving the plan to the
hands of the Reserve Bank of India.
As reported by the Troubled Company Reporter-Asia Pacific on
Aug. 20, 2007, the Foreign Investment Promotion Board gave ICICI
Bank the go signal to sell to foreign investors up to 24% of its
wholly owned subsidiary ICICI Financial Services, which unit
will hold the bank's investments in the insurance and mutual
fund businesses. The bank has also obtained the clearance of
the Insurance Regulatory and Development Authority.
"The RBI has yet to take a view on this" the Business Standard
quotes an unnamed senior RBI official as saying. "While
considering ICICI Bank's proposal, we will have to take into
account the fact that the bank has clarified to the insurance
regulator that ICICI Bank will continue to be the promoter of
the insurance company (for all practical purposes). So then we
have to find out what is the need of the proposed subsidiary
other than raising capital."
The RBI reportedly can still reject the proposal even with the
approval of the FIBP and the finance minister.
India-based ICICI Bank Ltd -- http://www.icicibank.com/-- is a
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services. The bank
operates in two business segments: consumer and commercial
banking, and investment banking. ICICI has a network of over
741 branches and over 3,300 ATMs in India.
The bank has operations in Russia and the United States.
* * *
Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.
ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.
=================
I N D O N E S I A
=================
ALLIANCE ONE: Earns US$6 Million in 2007 First Quarter
------------------------------------------------------
Alliance One International Inc. has earned US$6 million for the
three months ended June 30, 2007, compared to net income of
US$4.6 million in the year-ago-quarter.
The company's underlying net income, which excludes discontinued
operations, non-recurring items and market valuation adjustments
for derivative financial instruments, was US$7.6 million
compared with underlying net income of US$10.8 million in the
year-ago-quarter.
Robert E. Harrison, Chief Executive Officer, said "Our results
for the quarter demonstrate continued focus and execution of our
strategy. A confluence of positive and negative variables have
affected performance, such as on the one hand the improved
current crop quality in Brazil and a comfortable uncommitted
inventory position, and on the other hand higher green tobacco
costs at auction in Malawi driven by a smaller crop. What has
remained very consistent is our commitment to develop innovative
solutions to the challenges faced in the various producing
countries, and our determination to identify further cost saving
opportunities.
"Importantly, world demand for cigarettes and therefore our
products remains solid and we are well positioned globally to
meet these long-term supply needs. As such, we continue our
drive to bring greater value to our customers and enhance our
strategic proposition through the timely delivery of key service
and product offerings, including, but not limited to: tobacco to
order, rigorous processes designed to ensure product integrity,
and traceability."
"In conjunction with our operational focus, we remain committed
to long-term debt reduction through strong cash flow from
operations and proceeds from non-core asset dispositions.
Foreign currency volatility mitigation remains a constant goal
as well, through a variety of programs and negotiations with our
customers, in the face of continued US dollar depreciation."
Mr. Harrison concluded, "The recent turbulence in the capital
markets is, in our view, neither representative of our results,
nor of our long term value to investors. We have shown our
resolve to enhancing long-term shareholder value and are
confident that our strategy and talented people, position us
well in this regard."
Performance Summary for the Quarter
Sales and other operating revenues decreased 6.4% to
US$461.7 million in 2007 compared with US$493.5 million in the
year-ago period, primarily as the result of a 7.4% or 10.8
million kilo decrease in quantities sold partially offset by a
1.2% or US$0.04 per kilo increase in average sales prices.
Tobacco sales from the South America operating segment increased
US$27.5 million or 11.5% resulting from an increase of US$0.14
per kilo in average sales prices combined with an increase in
volumes of 4.9 million kilos. At the same time, tobacco sales
from the Other Regions operating segment decreased
US$59.2 million or 23.7%, primarily as a result of the
completion of our exit from certain European markets and an
opportunistic sale of U.S. inventories that was executed in the
prior year.
Gross profit decreased US$5.7 million or 7.4% from
US$77.5 million in 2006 to US$71.8 million in 2007, while gross
profit as a percentage of sales was essentially unchanged versus
the prior year, which included positive reversal of interstate
trade taxes partially offset by increased farmer bad debts.
Additionally, the decrease in gross profit is also attributable
to the prior year opportunistic sale of U.S. inventories, as
well as a US$5.5 million current quarter charge related to the
2007 burley crop in Malawi that is being processed at this time.
Other Income of US$1.9 million in 2007 and US$0.6 million in
2006 relates primarily to fixed asset sales.
Restructuring and asset impairment charges were US$0.4 million
in 2007 compared to US$1.7 million in 2006. The costs in 2007
and 2006 primarily relate to employee severance and other
integration related charges as a result of the merger.
Debt retirement expense of US$1.9 million in 2007 relates to
accelerated amortization of debt issuance costs as a result of
debt prepayment during the quarter.
Net interest expense for the quarter decreased US$2.8 million
from US$25.5 million in 2006 to US$22.7 million in 2007. Other
drivers included increased interest income of US$2.2 million as
a result of higher average cash balances and lower interest cost
due to lower average borrowings.
Effective tax rate used for the three months ended June 30, 2007
was an expense of 35.9% compared to an expense of 29.5% for the
three months ended June 30, 2006. The effective tax rates for
these periods are based on the current estimate of full year
results after the affect of taxes related to specific events
which are recorded in the interim period in which they occur.
Losses from discontinued operations decreased US$3.8 million in
2007 compared to 2006, as the company continued to exit from the
discontinued operations in Italy, Mozambique and wool
operations.
Liquidity and Capital Resources
As of June 30, 2007, available credit lines and cash were
US$634.0 million including US$8.2 million exclusively available
for letters of credit, US$110.6 million of cash, the US$250.0
million unfunded revolver, and US$265.1 million in foreign
lines. Total debt, net of US$110.6 million of cash, increased
to US$903.1 million from US$830.7 million at March 31, 2007, as
a result of expected seasonal borrowings in the South American
region. Compared to the quarter ended June 30, 2006, net debt
decreased US$190.7 million as a result of continued debt
repayment due to cash flow from operations, improved working
capital management, account receivable sales and proceeds
generated through non-core asset dispositions. During the
quarter, the company prepaid US$85 million of its US$145 million
term loan B, leaving US$60 million outstanding.
About Alliance One
Based in Morrisville, North Carolina, Alliance One
International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a
leaf tobacco merchant. The company has worldwide operations,
including those in Indonesia, Argentina, Brazil, Bulgaria,
Canada, China, France, India, Philippines, Malaysia, and
Singapore.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Sept. 29, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the US Consumer
Products, Beverage, Toy, Natural Product Processors, Packaged
Food Processors and Agricultural Cooperative sectors, the rating
agency confirmed its B2 Corporate Family Rating for Alliance One
International, Inc., and upgraded its B2 rating on the company's
US$300 million senior secured revolver to B1. In addition,
Moody's assigned an LGD3 rating to notes, suggesting note
holders will experience a 37% loss in the event of a default.
ALLIANCE ONE: Holds Annual Shareholder & Board Meetings
-------------------------------------------------------
Alliance One International Inc. disclosed that all proposed
matters on the ballot for its 2007 annual shareholders meeting
were approved by the shareholders. Prior to the meeting, Albert
Monk withdrew his name from the ballot, and has resigned from
the company's Board of Directors. The company wants to thank
Mr. Monk for his decades of dedication and service to the
company, both while an executive officer, and most recently as a
director.
The company also announced that the Board has approved an
amendment to its Bylaws decreasing the size of the Board of
Directors from 13 to 11 directors.
Additionally, the Board authorized the repurchase of up to
US$200 million of its senior notes in open market transactions
from time to time, subject to compliance with the company's
credit facilities and indentures.
The company said, as anticipated, that Brian Harker, Chairman of
the Board, resigned from the Board of Directors effective
Aug. 16, 2007. Mr. Harker's leadership, perseverance and
service culminated in the successful merger of DIMON and
Standard Commercial and the integration that followed. The
company extends its best wishes to both Brian and his wife
Angie as they begin their next life chapter.
Effective as of Mr. Harker's resignation, the company's Board
also unanimously elected the company's Chief Executive Officer,
Robert E. "Pete" Harrison, its Chairman. Following the meetings
Mr. Harrison commented, "the strong foundation following the
merger and integration, strategically places Alliance One as a
valued provider of goods and services to the world's cigarette
manufacturers with significant scale, good people and a well
balanced global foot print. We continued to evaluate our
business and value proposition, while striving to develop
additional opportunities that will ultimately translate to
further improved customer and shareholder value. We feel
confident about our direction and resolve."
About Alliance One
Based in Morrisville, North Carolina, Alliance One
International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a
leaf tobacco merchant. The company has worldwide operations,
including those in Indonesia, Argentina, Brazil, Bulgaria,
Canada, China, France, India, Philippines, Malaysia, and
Singapore.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Sept. 29, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the US Consumer
Products, Beverage, Toy, Natural Product Processors, Packaged
Food Processors and Agricultural Cooperative sectors, the rating
agency confirmed its B2 Corporate Family Rating for Alliance One
International, Inc., and upgraded its B2 rating on the company's
US$300 million senior secured revolver to B1. In addition,
Moody's assigned an LGD3 rating to notes, suggesting note
holders will experience a 37% loss in the event of a default.
ANEKA TAMBANG: FeNi III Smelter to Resume Operations in Sept.
-------------------------------------------------------------
PT Antam Tbk disclosed that the ongoing investigation into the
metal leak from the furnace wall of FeNi III, which occurred on
June 16, 2007, has revealed repairs will be complete by the
first week of September.
Antam has decreased the 2007 production target, not including
toll smelting, for nickel contained in ferronickel from 20,000
tonnes to 16,000 tonnes. Antam may be able to supplement the
volume of production by 400 tonnes to 2,000 tonnes depending on
the outcome of negotiations for third party toll smelting
arrangements. The cause of the leak is at this point
inconclusive as Antam, the designer, the contractor and other
expert advisors continue to study the data.
On July 11-12, 2007 meetings were held at the offices of Hatch
Ltd, in Mississauga, Canada, between individuals from the three
parties connected to the building, designing and operating of
FeNi III. Hatch, the designer of FeNi III and cooling system
provider, Kawasaki Heavy Industries and PT Antam participated in
the high-level meetings. The meetings were held to discuss the
root causes and remedies of the metal leak. While much progress
was made, it is clear more investigation is required. At this
point, prior to receipt of the quantitative analysis from the
designer, and as per the last public announcement on July 2,
2007, possible causes of the leak are linked to the design,
construction, start-up and operator error.
Immediate repairs will be made so as to safely begin operating
as soon as possible and reduce lost production. In order to
avoid delivery delays for the refractory bricks, Antam will use
bricks currently available from other operations and vendors in
South Africa and Canada. As well, Antam has placed a large
order for more refractory bricks from RHI, Austria, should the
investigation reveal leaks could occur elsewhere and full
repairs are needed. Antam does not normally keep large
inventories of refractory bricks due to the high risk, in the
tropics, of hydration, which renders the bricks useless, however
all steps will be taken to keep the bricks dry. Although a
pressure test determined there was no water leak from the waffle
coolers, Antam will also replace the two slightly damaged waffle
coolers and repair parts of the outer steel shell. In order to
prevent a recurrence of the leak, immediately following the
repairs, Antam will coat the walls of the furnace with a lower
silica, high basicity material. Antam expects to switch on the
furnace on or about the first week of September. Thereafter,
Antam will carefully monitor the furnace, and if safely
possible, ramp up to no higher than 34MW. Antam will then
increase the load if the operation of the furnace is stable and
running well.
Regarding associated costs, Antam will assess its options, based
upon the conclusions of the investigation, as regards filing
claims under the warranty provided the engineering, construction
and procurement contractors and also under Antam's insurance
policies.
Antam will make a more detailed announcement in mid-September to
inform the repair progress of the FeNi III smelter.
About Aneka Tambang
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
* * *
The Troubled Company Reporter-Asia Pacific reported on Dec. 4,
2006, that Standard & Poor's Ratings Services raised its long-
term corporate credit rating on Indonesian state-owned mining
company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable.
At the same time, Standard & Poor's also raised to 'B+', from
'B', the rating on the senior unsecured notes issued by Antam
Finance Ltd. and guaranteed by Antam.
Moody's Investors Service gave Aneka Tambang a local currency B1
corporate family rating, and a B2 foreign currency bond rating.
ARGO PANTES: No Dividend Payment for Fiscal Year 2006
-----------------------------------------------------
PT Argo Pantes will not pay fiscal year 2006 dividend, Reuters
reports.
As previously reported by the Troubled Company Reporter-Asia
Pacific, the company posted a net loss of IDR18.42 billion for
the three months ended Mar. 31, 2007, compared with the
company's net profit of IDR27.16 billion recorded a year
earlier.
Headquartered in Jakarta, Indonesia, PT Argo Pantes Tbk
-- http://www.argo.co.id-- is an Indonesia-based textile
manufacturer. The company is comprised of four business units:
Spinning, Yarn Dying, Weaving and Dying Finishing. It sells its
products to both domestic and international markets, including
countries in Asia, North America and Europe. The company's
subsidiaries include Argo Pantes Finance B.V., Argo Pantes (HK)
Ltd. and PT Mega Sentra Propertindo, which are engaged in the
financial services, sales and general trading industries.
PT Argo Pantes Tbk. is the flagship company of Argo Manunggal
Group, one of Indonesia's largest business enterprises.
Argo Pantes booked lower sales at IDR932.53 billion for the full
year of 2005, and posted a reduced loss at IDR87.24 billion.
Indo Pus BV, a Netherland-based company and Deutsche Bank filed
a bankruptcy suit on Argo Pantes for its default in paying US$12
million.
Argo Pantes has an outstanding debt of US$198.68 million to 18
creditors of which Bank Madiri is the largest with US$92
million. The company is currently working out a debt
restructuring through equity conversion.
In its Annual Report for the year 2005, Hidajat Rahardjo of Ijin
Akuntan Publik -- the company's independent auditors --
expressed substantial doubt of the Company's ability to continue
as a going concern, citing the COmpany's significant deficit of
IDR1,451,834,884,000 as of December 31, 2005, and default in
payments.
GEOKINETICS INC: Promotes Richard Miles to VP & CEO Positions
-------------------------------------------------------------
Geokinetics Inc. has promoted Richard F. Miles, Vice President
and Chief Operating Officer, to the positions of President and
Chief Executive Officer. Mr. Miles replaces David A. Johnson,
who resigned to pursue opportunities outside the seismic
services industry.
William R. Ziegler, Chairman of the Company, stated, "We wish
Dave Johnson continued success in his next endeavors. Dave was
instrumental in completing two acquisitions, which transformed
Geokinetics from a small, domestic seismic services business, to
the fourth-largest provider of land, transition zone and shallow
water seismic surveying in the world. We are grateful for
Dave's accomplishments and wish him the best."
Mr. Ziegler continued: "We are particularly fortunate to have
someone of the caliber of Dick Miles to promote to the positions
of President and Chief Executive Officer. Dick has been in
charge of all international operations at Geokinetics since our
acquisition of Grant Geophysical, Inc. in September 2006, and
most recently he was the President and Chief Executive Officer
of Grant Geophysical since January 2001. Dick was a director of
Kelman Technologies, Inc. from 2003 until September 2006. Dick
served as Chief Executive Officer and a Director of GeoScience
Corporation, the Chairman of CogniSeis, Syntron and Symtronix
from 1990 until 2000. Prior to that he held numerous positions
with Halliburton and Geophysical Services. Dick has over 40
years experience in the seismic acquisition and processing
industry and we think he is uniquely qualified to continue the
process of growing Geokinetics' seismic services businesses."
Mr. Miles stated: "I am honored that the Board of Directors has
the confidence and trust in me to ask me to succeed Dave
Johnson. Dave's accomplishments at Geokinetics during the past
years have been substantial. I am confident that Geokinetics is
on the right track and that we can continue to increase
revenues, improve profitability and create shareholder value in
the years ahead. Our employees have been instrumental in the
process of integrating our recent acquisitions and the building
of our backlog, and we will continue to provide them with the
tools necessary to build Geokinetics into a world class,
profitable seismic acquisition and processing Company. We will
continue to focus on our core seismic acquisition businesses,
both domestically and in selected international markets, while
making the return of our processing business to profitability a
priority."
About Geokinetics Inc.
Geokinetics Inc., based in Houston, Texas, is a leading global
leader of seismic acquisition and high-end seismic data
processing and interpretation services to the oil and gas
industry. Geokinetics provides seismic data acquisition
services in North America, Indonesia, Norway and Brazil.
Geokinetics operates in some of the most challenging locations
in the world from the Arctic to mountainous jungles to the
transition zone environments.
HANOVER COMPRESSOR: Expects Universal Merger to Close
-----------------------------------------------------
Hanover Compressor Company and Universal Compression Holdings
Inc. reported that, at the companies' respective stockholders
meetings held earlier, the stockholders of each company
approved by a substantial margin the merger of the two companies
into a new company, Exterran Holdings, Inc. The stockholders of
both companies also approved the adoption of the Exterran 2007
Stock Incentive Plan and the Exterran Employee Stock Purchase
Plan. Hanover and Universal expect the merger to close on
Aug. 20, 2007. On the day following the merger closing,
Exterran's common stock will begin trading under the symbol
"EXH" on the New York Stock Exchange, and the common stock of
Hanover and Universal will no longer be traded.
About Universal Compression
Universal Compression Holdings, headquartered in Houston, Texas,
is a leading natural gas compression services company, providing
a full range of contract compression, sales, operations,
maintenance and fabrication services to the natural gas industry
worldwide.
About Hanover Compressor Company
Headquartered in Houston, Texas, Hanover Compressor Company
(NYSE:HC) -- http://www.hanover-co.com/-- is in full service
natural gas compression and provider of service, fabrication and
equipment for oil and natural gas production, processing and
transportation applications. Hanover sells and rents this
equipment and provides complete operation and maintenance
services, including run-time guarantees for both customer-owned
equipment and its fleet of rental equipment. Founded in 1990
and a public company since 1997, Hanover's customers include
both major and independent oil and gas producers and
distributors as well as national oil and gas companies. It has
locations in Argentina, Bolivia, Brazil, Colombia, Mexico, Peru,
Venezuela, India, China, Indonesia, Japan, Korea, Taiwan, the
United Kingdom, and Vietnam, among others.
* * *
As reported in the Troubled Company Reporter on Feb. 8, 2007,
Standard & Poor's Ratings Services placed the 'BB-' corporate
credit ratings on oilfield service company Hanover Compressor
Co. and its related entity Hanover Compression L.P. on
CreditWatch with positive implications.
MEDCO ENERGI: Signs Heads of Agreement with Ormat and Itochu
------------------------------------------------------------
Medco Energi Internasional Tbk, Ormat International, Inc., and
Itochu Corporation signed the Heads of Agreement for the Sarulla
Geothermal Project.
As reported by the Troubled Company Reporter-Asia Pacific on
Aug. 9, 2007, Medco Energi, together with its partners
Ormat International and Itochu, is set to start the construction
of the Sarulla geothermal power project in North Sumatra in
September.
In addition to members of the Consortium, Eddie Widiono,
President Director of state-owned Indonesian power company PT
Perusahaan Listrik Negara, and Ari H. Soemarno, President & CEO
of Pertamina, also signed the agreement. The signing was
witnessed by The President of the Republic of Indonesia H.E.
Susilo Bambang Yudhoyono and the Prime Minister of Japan, H.E.
Shinzo Abe during the Japan-Indonesia Business Forum.
The Consortium received a Letter of Intent from PLN on July 25,
2006, following a tender process and, having reached preliminary
agreements, expects that it will soon formalize the Deed of
Assignment, and amendments of the Energy Sales Contract with PLN
and Joint Operating Contract with Pertamina.
The HoA sets forth the milestones achieved in the contract
negotiations and the parties' undertaking to expedite the
contracts finalization and formalization, including all relevant
approval procedures.
The Sarulla Geothermal Project, located in Tapanuli Utara, North
Sumatra, represents the largest single-contract geothermal
project to date in the geothermal industry, and is a reflection
of the large scale, high productivity and potential of
Indonesian geothermal resources.
The Sarulla Geothermal project is to be constructed over the
next five years. It will consist of three phases of 110 to 120
MW each, with the first power generating unit scheduled to
commence operation within 30 months of the financial closing,
and the remainder scheduled to commence operation over a period
of 18 months following the first unit. Power delivered by the
project will serve the base load of PLN's North Sumatra - Aceh
grid system.
The project will be owned and operated by the Consortium members
under the framework of a JOC with the concession holder, PT
Pertamina (Persero) through its subsidiary PT Pertamina
Geothermal Energy.
Medco is the leader of the Consortium, whose bid included
completion of the development of the geothermal steam field,
construction of the field piping systems and three Ormat
designed and supplied power plants with a combined gross
capacity of approximately 340 MW. The Consortium will own and
operate the facilities, as well as sell electricity to PLN under
a 30-year Energy Sales Contract. The total project cost is
projected to be approximately US$800 million, and it is expected
that the Japan Bank for International Corporation will provide
the majority of the project financing based on the Umbrella Note
of Mutual Understanding signed between the Ministry of Finance
of Indonesia and JBIC.
In addition to the HOA, The Consortium and Kyushu Electric Power
Co., Inc. executed a Memorandum of Understanding. The MOU
confirms Kyushu Electric's strong interest in participating in
the Sarulla Project. Kyushu Electric is one of the largest
electricity utility companies in Japan and owns and operates a
number of geothermal power plants in Kyushu.
Hilmi Panigoro, CEO of Medco Energi, said, "Geothermal is one of
the primary energy resources for the future. This project will
be a cornerstone for the company's efforts to diversify its
energy resources portfolio."
Aries Pardjimanto, President Director of PT Medco Geothermal
Indonesia, added, "The Sarulla project is evidence of our
commitment to developing Renewable Energy Resources, and our
desire to assist the Government in its effort to provide new
power generation capacity in the region."
Also commenting on the project, Lucien Bronicki, Chairman and
CTO of Ormat Technologies, stated, "We are pleased that the long
cooperation with Pertamina, PLN and the teams of Medco and
Itochu is approaching fruition. Ormat's air-cooled geothermal
Combined Cycle technology, well proven over the last 15 years,
is particularly suited to assure maximum utilization of the
Sarulla resource in a sustainable manner. We pledge to continue
our efforts to contribute to the development of this important
renewable energy of Indonesia by sharing our experience in
constructing geothermal plants in 12 countries as well as the
operating experience of the plants we own in the US, Guatemala,
Kenya, Nicaragua and the Philippines."
Akira Yokota, Executive Vice President of ITOCHU Corporation,
said "ITOCHU has been actively pursuing environmental renewable
energy projects in several countries and geothermal power
projects are also an area we have been truly focusing.
Indonesia has quite rich geothermal resources and we are very
glad to have achieved this valuable step in contributing to the
further prosperity of Indonesia through Sarulla Power Project
using such environmentally friendly resources which Indonesia
owns."
About Ormat Technologies
Ormat Technologies, Inc. is a vertically-integrated company
primarily engaged in the geothermal and recovered energy power
business. The Company designs, develops, builds, owns and
operates geothermal and recovered energy power plants using
Organic Rankine Cycle technology. Additionally, the Company
designs, manufactures and sells geothermal and recovered energy
power units and other power generating equipment, and provides
related services. Ormat is a pioneer and a leader in the
manufacture of ORC power equipment its products and systems are
covered by approximately 70 patents. Ormat currently operates
the following geothermal power plants: in the United States -
Brady, Heber, Mammoth, Ormesa, Puna and Steamboat; in the
Philippines - Leyte; in Guatemala - Zunil; in Kenya - Olkaria;
and in Nicaragua - Momotombo. In the U.S., Ormat owns and
operates four OREG1 Recovered Energy Generation plants.
About Medco Energi
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of, and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter-Asia Pacific reported on Dec. 21,
2006, that Standard & Poor's Ratings Services affirmed its 'B+'
corporate credit rating on Medco Energi. The outlook remains
negative. According to S&P, the negative outlook on Medco
reflects the company's weak financial profile due to its
increased debt burden to fund its aggressive capital
expenditure.
A TCR-AP report on Aug. 16, 2006, said that Moody's Investors
Service changed the outlook on Medco Energi's ratings to
negative from stable. The ratings affected by the outlook
change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
MERPATI NUSANTARA: To Revive Abandoned Domestic Flight Routes
-------------------------------------------------------------
PT Merpati Nusantara Indonesia Merpati is set to reopen former
abandoned domestic flight routes next to its plan to add six
jets to its fleet in the second semester of this year, Antara
News reports, citing Merpati Commercial Director Jaka Pujiyono.
The old routes that would be re-opened include those between
Jakarta and Palembang, between Makassar and Ambon as well as
between Balikpapan and Banjarmasin, while the new routes include
those between Jakarta and Tanjung Pinang, between Jakarta and
Batam as well as between Jakarta and Tanjung Karang, Mr.
Pujiyono told Antara.
Mr. Pujiyono said that about only 60% of the old routes will be
reopened, and the remaining 40% will still be evaluated at the
end of the year or early in 2008, the report relates.
The report adds that Mr. Pujiono said the reopening of the old
routes would be supported with additional six jet airplanes.
Two Boeing 737-300s already arrived, while the remaining four
are expected to arrive in October and November 2007.
About Merpati Nusantara
Headquartered in Jakarta, Indonesia, PT Merpati Nusantara
Indonesia -- http://www.merpati.co.id/-- is a state-owned
carrier that services predominantly international routes. The
carrier is facing the threat of being declared bankrupt with
IDR1.6 trillion in accumulated losses.
According to press reports, Merpati suffered from high fuel
prices and hurt by the weaker rupiah. The bombings in Bali in
October 2005 hit the airline pretty hard in its revenue flow.
The airline is also struggling to cope with new competition
within Indonesia, both from domestic airlines and from other
airlines coming into Indonesia internationally.
The Troubled Company Reporter - Asia Pacific reported in January
2006, the government promised to inject up to IDR400 billion
into the Company. However, since it is also cash-strapped, the
government said it would disburse the amount in installments,
and initially meted out IDR75 billion for the company to
continue its business.
As of fiscal year end 2005, the company has an equity deficit of
IDR1.24 trillion.
On July 24, 2004, the Indonesian Government invited applications
from financial and legal advisers to help devise a privatization
scheme for the carrier. The Government proposed a strategic
sale of the state's 51% stake in Merpati to help fund the
carrier's operations. The state was also considering a
IDR220-billion debt-for-equity swap.
MITEL NETWORKS: Zarlink Sells Equity Interest for US$12.9 Mil.
--------------------------------------------------------------
Zarlink Semiconductor Inc. reported on Thursday last week that
it has sold its Mitel Networks Corporation shares for
US$12.9 million, following the approval of the merger of Mitel
and Inter-Tel (Delaware) Incorporated.
Zarlink obtained ownership of 10 million common shares of Mitel
through the sale of its systems business in fiscal 2001. In
fiscal 2002, Zarlink acquired a put right on its shares as a
result of conditions obtained by a new investor in Mitel.
On June 4, 2007, Zarlink and other put right holders agreed to
an amendment to the put right as a result of Mitel's announced
proposed merger with Inter-Tel and associated refinancing
arrangements.
As provided in the amended put right, Zarlink received payment
from Mitel of US$1.29 per share. The US$12.9 million in
proceeds received through the sale of this investment results in
an additional US$0.10 earnings per share for the second quarter
fiscal 2008 as the Mitel shares were carried on Zarlink's books
at no value. In light of the payment and the company's recent
acquisition of Legerity, Zarlink will be issuing revised
guidance for the second quarter fiscal 2008 within the next
week.
About Zarlink Semiconductor
Zarlink Semiconductor -- http://www.zarlink.com/-- delivers
semiconductor solutions that drive the capabilities of voice,
enterprise, broadband and wireless communications. The company
has been in operations for over 30 years.
About Mitel Networks
Headquartered in Herndon, Virginia, Mitel Networks Corporation
-- http://www.mitel.com/-- delivers the full value of IP
Communications through networked business solutions that help
customers achieve success through business process integration,
enhanced employee productivity, increased customer loyalty and
helping to generate new revenue streams.
The company has operations in Brazil, the United Kingdom and
Indonesia.
* * *
As reported in the Troubled Company Reporter on June 22, 2007,
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Ottawa-based Mitel Networks Corp.
The outlook
is stable.
PERUSAHAAN LISTRIK: Signs US$750-Mil. Power Purchase Agreement
--------------------------------------------------------------
PT Perusahaan Listrik Negara signed a US$750 million power
purchase agreement with a consortium headed by Japan's Marubeni
Corp., Ruters reports citing Energy Minister Purnomo
Yusgiantoro.
As reported by the Troubled Company Reporter - Asia Pacific
August 7, 2007, Perusahaan Listrik will buy electricity from
Marubeni Corp. pursuant to the terms of the power purchase
agreement.
Mr. Yusgiantoro told reporters that the consortium would
construct a power plant and supply electricity to Perusahaan
Listrik for 4.363 U.S. cents per kilowatt hour, with
expectations that the commercial operation will start by August,
2011, Reuters relates.
The report notes that the 30-year contract was signed in the
presence of Japanese Prime Minister Shinzo Abe and Indonesian
President Susilo Bambang Yudhoyono.
Marubeni controls a 32.5% stake in the consortium, Korea Midland
Power Co holds 27.5% and two local firms, Tripatra Engineers and
Construction and Samtan Co, hold 20% each, the report adds.
About Perusahaan Listrik
Indonesian state utility firm PT Perusahaan Listrik Negara --
http://www.pln.co.id/-- transmits and distributes electricity
to around 30 million customers, roughly 60% of Indonesia's
population. The Indonesian Government decided to end PLN's
power supply monopoly to attract independents to build more
capacity for sale directly to consumers, as many areas of the
country are experiencing power shortages.
* * *
The Troubled Company Reporter-Asia Pacific reported on
June 19, 2007, that Moody's Investors Service assigned a B1
senior unsecured rating to PT Perusahaan Listrik Negara's
proposed U.S. dollar bond issuance.
At the same time, Moody's has affirmed PLN's B1 corporate family
rating and A1.id national scale rating. The outlook for all the
ratings is positive, which is in line with the sovereign's
positive outlook.
Standard & Poor's Ratings Services also assigned its 'BB-'
foreign currency rating and 'BB' local currency rating to PLN.
The outlook on the ratings is stable. At the same time,
Standard & Poor's assigned its 'BB-' issue rating to the
proposed U.S. ollar enior unsecured notes issued by PLN's wholly
owned subsidiary, Majapahit Holding B.V.
SEKAR BUMI: Says No Dividend Payment for Fiscal Year 2006
---------------------------------------------------------
PT Sekar Bumi Tbk disclosed that it will not pay fiscal year
2006 dividend, Reuters reports. The company also did not pay
fiscal year 2005 dividend.
As previously reported by the Troubled Company Reporter-Asia
Pacific, the company, for the 2006 nine-month period, reported
net income of IDR4.94 billion, a turnaround from the
IDR86.39-billion net loss recorded for the same period last
year.
PT Sekar Bumi -- http://www.sekar.co.id-- is engaged in food
processing, such as shrimps, frog legs, fish, cashew, and many
others. The company has a main factory in Sidoarjo, Indonesia
with an annual capacity of 5,000 tons.
The TCR-AP reported on August 17, 2007, that Sekar Bumi has a
shareholders' deficit of US$41.95 million.
SUBA INDAH: Bunge Agribusiness Files Bankruptcy Lawsuit
-------------------------------------------------------
Bunge Agribusiness Singapore Pte Ltd has filed a bankruptcy
lawsuit against PT Suba Indah Tbk with the Central Jakarta
Commercial/State Court, Reuters reports.
According to the report, the lawsuit is based on decision No.
13-485 of the Arbitration Body of the Grain and Feed Trade
Association in London on sales contract No. BAS=S07152/01 dated
June 2, 2005.
Suba Indah argued that the sales contract is flawed as the
company has never signed it, the report relates.
Headquartered in Jakarta, Indonesia, PT Suba Indah Tbk is a food
company engaged in the production and marketing of non-
perishable food products made of corn.
The Troubled Company Reporter-Asia Pacific reported on
August 17, 2007, that Suba Indah has a shareholders' deficit of
US$9.18 million on total assets of US$85.17 million.
TELKOMSEL: Postpones Bond Issue to Next Year
--------------------------------------------
PT Telekomunikasi Indonesia Tbk has decided to postpone issuing
a bond until next year, with a larger value of IDR3 trillion,
Antara News reports.
As reported by the Troubled Company Reporter-Asia Pacific on
May 7, 2007, that Telkomsel had planned to issue IDR2 trillion
in bonds in the third quarter of this year to help finance its
capital expenditures for 2007.
Telkom is also seeking bank loans to help finance its
US$1.5-billion plan to develop its cellular business, and will
use its internal cash to cover capital expenditures, the TCR-AP
added.
Antara News relates that Telkom President Kiskenda Suriahardja
said the process of preparing the issuance of the bond could not
be completed as scheduled.
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.
=========
J A P A N
=========
FLOWSERVE CORP: Paying 15 Cents Per Share Dividend on Oct. 10
-------------------------------------------------------------
Flowserve Corp.'s Board of Directors has authorized the payment
of a quarterly cash dividend of 15 cents per share on the
company's outstanding shares of common stock. The dividend is
payable on Oct. 10, 2007, to shareholders of record as of the
close of business on Sept. 26, 2007.
While Flowserve currently intends to pay regular quarterly
dividends for the foreseeable future, any future dividends will
be reviewed individually and declared by the Board at its
discretion, dependent on the board's assessment of the company's
financial condition and business outlook at the applicable time.
Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control
products and services. Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services. Flowserve
has operations in Dominican Republic, Guatemala,Guyana, Belize,
Belgium, Netherlands, Indonesia, Singapore, Japan, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 16, 2007, Moody's Investors Service affirmed Flowserve
Corporation's corporate family rating at Ba3 and probability of
default at B1. Moody's also affirmed the Ba2 rating to the
company's senior secured term loan and assigned a Ba2 rating to
Flowserve's senior secured revolving credit facility.
FLOWSERVE CORP: Messrs. Friedery & Harlan Elected on Board
----------------------------------------------------------
Flowserve Corp.'s board of directors has elected John R.
Friedery and Joe E. Harlan to join the board effective
immediately. Mr. Friedery is currently senior vice president
and chief operating officer for the packaging products, Americas
group of Ball Corp., a packaging products business. Mr. Harlan
is currently executive vice president of the electro and
communications business for 3M Company, a diversified technology
company.
Mr. Friedery has served as the president of metal beverage
container operations, as well as in other leadership roles at
Ball Corp. since 1988. Prior to his roles at Ball Corp., he
served in field operations for Dresser/Atlas Well Services and
in operations, exploration and production for Nondorf Oil and
Gas.
Mr. Harlan has served as vice president of corporate financial
planning and analysis and president and chief executive officer,
Sumitomo 3M Ltd in his previous roles at 3M. Prior to his roles
at 3M, Mr. Harlan served in numerous leadership roles at General
Electric from 1981 to 2001, leaving the company as vice
president and chief financial officer, GE Lighting Group (USA).
"We are very pleased with the addition of John and Joe as
members of the Flowserve board of directors," said Kevin E.
Sheehan, Chairman of the board.
"John and Joe bring a solid understanding of the global
marketplace and proven leadership experience in diverse
industries and I am confident that they will have a positive
impact on the board for years to come," said Lewis M. Kling,
President and CEO of Flowserve.
Mr. Friedery holds a bachelor of science degree in geology from
the College of William and Mary and an MBA from the University
of Tampa. He also completed the Harvard Business School
Advanced Management Program.
Mr. Harlan earned a bachelor of science degree in finance and
economics from Indiana University in Bloomington, Indiana.
Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control
products and services. Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services.
Flowserve has operations in Dominican Republic, Guatemala,
Guyana, Belize, Belgium, Netherlands, Indonesia, Singapore, and
Japan, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 16, 2007, Moody's Investors Service affirmed Flowserve
Corporation's corporate family rating at Ba3 and probability of
default at B1. Moody's also affirmed the Ba2 rating to the
company's senior secured term loan and assigned a Ba2 rating to
Flowserve's senior secured revolving credit facility.
NIPPON SHEET: To Build JPY2.3-Billion Plant in India
----------------------------------------------------
Nippon Sheet Glass Co. said that it will build a plant in India
to manufacture glass for vehicles, the Japan Times reports,
citing Kyodo News.
According to the report, Nippon Sheet will build the plant in
Vishakhapatnam, eastern India, through its British subsidiary
Pilkington Group Ltd. The plant will cost about EUR15 million,
or JPY2.3 billion.
Japan Times notes that it is the first attempt by Nippon Sheet
to tap into the Indian market.
Production is due to begin by next summer, the company told
Japan Times.
Pilkington, which Nippon Sheet bought in 2006, will operate the
Indian plant, the report notes. The new plant will be capable
of producing about 500,000 windshields a year for export to the
United States and Europe.
Headquartered in Tokyo, Nippon Sheet Glass Company, Limited
-- http://www.nsg.co.jp-- Company operates in four business
divisions. Its Glass and Construction Material division
manufactures, processes and sells various types of glasses, such
as float plate, polished wire, heat absorbing, heat reflecting,
reinforced, laminated, double-layer, vacuum, fireproof,
template, mirror and ornamental glass, as well as sashes. It
also supplies construction materials, and interior accessories
for stores. The Information and Electronics division offers
optical products, fine glass products, industrial glass
products, liquid crystal display (LCD) products and others. Its
Glass Fiber division is engaged in the manufacture, processing
and sale of special glass fiber products, air filter-related
items and others. The Others division is involved in the
facility engineering and the test analysis businesses, among
others.
The company has operations in Argentina, the United States, and
Austria.
Standard & Poor's Ratings Services affirmed on June 20, 2006,
its BB+ long-term corporate credit and long-term senior
unsecured debt ratings on Nippon Sheet Glass Co. Ltd., following
the company's successful acquisition of U.K.-based Pilkington
PLC.
PAYLESS SHOESOURCE: Completes US$900 Million Stride Rite Buyout
---------------------------------------------------------------
Payless ShoeSource Inc. has completed the acquisition of
The Stride Rite Corporation for at approximately US$900 million,
which consisted of an aggregate US$800 million payment to Stride
Rite shareholders, option holders and other equity holders, well
as the repayment of existing debt and other transaction costs.
The transaction was financed with approximately US$175 million
in cash-on-hand and a US$725 million term loan B at a variable
rate of currently 8.3% over 7 years.
The acquisition of Stride Rite was approved by its shareholders
at a special meeting held Aug. 16, 2007, with 80.7% of its
shareholders voting in favor of the transaction.
David Chamberlain, chief executive officer for The Stride Rite
Corporation, has retired from the company and will serve as an
outside consultant to Matt Rubel. Richard Thornton will serve
as president and chief operating officer of the Stride Rite
unit. Matt Rubel will continue to head the Payless ShoeSource
unit, and Bruce Pettet will continue to lead the Collective
Licensing unit.
The company also has officially changed its name to Collective
Brands Inc.
"Collective Brands is built on the solid foundation of each
business unit's individual core competencies, expertise and
heritage," Matthew E. Rubel, chief executive officer and
president of Collective Brands Inc., said. "The new company
will reach an expanded customer base with iconic brands through
its nearly 4,900-strong retail stores and vibrant wholesale,
licensing, and e- commerce channels. It will benefit from new
efficiencies and greater scale in all aspects of getting
footwear and accessories to market."
As one of the footwear companies in the western hemisphere,
Collective Brands is organized with three complementary and
separate business units with distinct missions in terms of their
product offerings, distribution channels, brand portfolios, and
target customer bases:
-- Payless ShoeSource: democratizing fashion and design in
footwear and accessories through its nearly 4,600 retail
store chain. Brands sold at Payless include Airwalk(R),
American Eagle(TM), Champion(R), Dexter(R), Tailwind(R)
(through the Exeter Brands Group of Nike Inc.), Disney(R),
Shaquille O'Neal-endorsed Dunkman(TM), ABT for Spotlights,
and designer collections: Abaete for Payless, Lela Rose
for Payless and alice + olivia for Payless.
-- Stride Rite: centering on premium lifestyle and athletic
branded footwear and high-quality children's footwear sold
through wholesaling arrangements and more than 300 retail
store locations. Brands owned or licensed by Stride Rite
include Stride Rite(R), Keds(R), Sperry Top-Sider(R),
Tommy Hilfiger(R) footwear, Saucony(R), Hind(R), and
Robeez(R).
-- Collective Licensing International: specializing in brand
management and global licensing of its portfolio of youth,
lifestyle and high-quality fashion athletic brands. Brands
for Collective Licensing include: Airwalk(R), Vision
Street Wear(R), Lamar(R), Sims(R), LTD(R), genetic(TM),
Dukes(R), Rage(R), Ultra-Wheels(R), and Skate Attack(R).
While each unit will operate separately, the company will
leverage core competencies across the organization in areas such
as product design and development, global sourcing,
distribution, inventory management, and various corporate
functions.
Collective Brands' competitive advantages include:
-- a diverse operating model with the ability to target
specific customer segments with branded products offered
at a range of price points through multiple channels;
-- The preeminent position in children's footwear both at the
premium and moderate level; and
-- a stronger, efficient organization with the scope and
scale to manage all aspects of getting to market -- from
interpretations of emerging trends, to design,
development, sourcing, logistics and distribution.
About The Stride Rite Corporation
Headquartered in Lexington, Massachusetts, The Stride Rite
Corporation (NYSE: SRR) -- http://www.striderite.com/-- markets
the brand of quality children's shoes in the United States. The
unit also markets products for children and adults under known
brand names, including Keds, Sperry Top-Sider, Saucony, Tommy
Hilfiger Footwear, and Robeez.
About Collective Brands Inc.
Headquartered in Topeka, Kansas, Collective Brands Inc. (NYSE:
PSS) -- http://www.collectivebrands.com/-- is the holding
company of three business units: Payless ShoeSource, Stride
Rite, and Collective Licensing International. The company is
footwear retailer in the western hemisphere. It is dedicated to
democratizing fashion and design in footwear and accessories and
inspiring fun, fashion possibilities for the family at a great
value.
* * *
As reported in the Troubled Company Reporter in July 31, 2007,
Standard & Poor's Ratings Services lowered its rating on Payless
ShoeSource Inc. to 'B+' from 'BB-'. At the same time, the
rating on the company's US$200 million senior subordinated notes
was lowered to 'B-' from 'B'. All ratings have been removed
from CreditWatch, where they were placed with negative
implications on May 23, 2007. The outlook is stable.
PAYLESS SHOESOURCE: Changes Company Name to Collective Brands
-------------------------------------------------------------
Payless ShoeSource Inc. has completed the acquisition of
The Stride Rite Corporation and has officially changed its name
to Collective Brands, Inc.
"Collective Brands is built on the solid foundation of each
business unit's individual core competencies, expertise and
heritage," said Matthew E. Rubel, chief executive officer and
president of Collective Brands, Inc. "The new company will
reach an expanded customer base with iconic brands through its
nearly 4,900-strong retail stores and vibrant wholesale,
licensing, and e- commerce channels. It will benefit from new
efficiencies and greater scale in all aspects of getting
footwear and accessories to market."
Collective Brands is a global footwear, accessory and lifestyle
brand company with leading, well-recognized brands, superior
quality and on-trend footwear, and accessory products offered
through multiple channels. As one of the largest footwear
companies in the western hemisphere, Collective Brands is
organized with three highly complementary and separate business
units with distinct missions in terms of their product
offerings, distribution channels, brand portfolios, and target
customer bases:
-- Payless ShoeSource: democratizing fashion and design in
footwear and accessories through its nearly 4,600 retail
store chain. Brands sold at Payless include Airwalk(R),
American Eagle(TM), Champion(R), Dexter(R), Tailwind(R)
(through the Exeter Brands Group of Nike Inc.), Disney(R),
Shaquille O'Neal-endorsed Dunkman(TM), ABT for Spotlights,
and designer collections: Abaete for Payless, Lela Rose
for Payless and alice + olivia for Payless.
-- Stride Rite: centering on premium lifestyle and athletic
branded footwear and high-quality children's footwear sold
primarily through wholesaling arrangements and more than
300 retail store locations. Brands owned or licensed by
Stride Rite include Stride Rite(R), Keds(R), Sperry Top-
Sider(R), Tommy Hilfiger(R) footwear, Saucony(R), Hind(R),
and Robeez(R), among others.
-- Collective Licensing International: specializing in brand
management and global licensing of its portfolio of youth,
lifestyle and high-quality fashion athletic brands.
Brands for Collective Licensing include: Airwalk(R),
Vision Street Wear(R), Lamar(R), Sims(R), LTD(R),
genetic(TM), Dukes(R), Rage(R), Ultra-Wheels(R), and Skate
Attack(R).
While each unit will operate separately, the company will
leverage core competencies across the organization in areas such
as product design and development, global sourcing,
distribution, inventory management, and various corporate
functions.
Collective Brands' competitive advantages include:
-- A diverse operating model with the ability to target
specific customer segments with branded products offered
at a range of price points through multiple channels.
-- The preeminent position in children's footwear both at the
premium and moderate level.
-- A stronger, more efficient organization with the scope and
scale to manage all aspects of getting to market - from
interpretations of emerging trends, to design,
development, sourcing, logistics and distribution.
The acquisition of Stride Rite was approved by its shareholders
at a special meeting held on Aug. 16, 2007, with 80.7% of its
shareholders voting in favor of the transaction. The
transaction, valued at approximately USUS$900 million, consisted
of an aggregate USUS$800 million payment to Stride Rite
shareholders, option holders and other equity holders, as well
as the repayment of existing debt and other transaction costs.
It was financed with approximately USUS$175 million in cash-on-
hand and a USUS$725 million term loan B at a variable rate of
currently 8.3% over 7 years.
David Chamberlain, chief executive officer for The Stride Rite
Corporation, has retired from day-to-day operations of the
company and will serve as an outside consultant to Matt Rubel.
Richard Thornton will continue to serve as president and chief
operating officer of the Stride Rite unit. Matt Rubel will
continue to head the Payless ShoeSource unit, and Bruce Pettet
will continue to lead the Collective Licensing unit.
Headquartered in Topeka, Kansas, Payless ShoeSource Inc.
(NYSE:PSS) -- http://www.payless.com/-- is a family footwear
specialty retailer with 4,605 retail stores, as of fiscal
yearend Jan. 28, 2006 (fiscal 2005), including 22 stores not
open for operations. The Company's Payless ShoeSource retail
stores in the United States, Canada, the Caribbean, Central
America, South America and Japan sold 182 million pairs of
footwear, in fiscal 2005. The Company operates its business in
two segments -- Payless Domestic and Payless International. The
Payless Domestic segment includes retail operations in the
United States, Guam and Saipan. The Payless International
segment includes retail operations in Canada; Puerto Rico; the
United States Virgin Islands; Japan; the South American Region,
which includes Ecuador, and the Central American Region, which
includes Costa Rica, Guatemala, El Salvador, the Dominican
Republic, Honduras, Nicaragua, Panama and Trinidad and Tobago.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 31, 2007, Standard & Poor's Ratings Services lowered its
rating on Payless ShoeSource Inc. to 'B+' from 'BB-'. At the
same time, the rating on the Topeka, Kan.-based company's
USUS$200 million senior subordinated notes was lowered to 'B-'
from 'B'. All ratings have been removed from CreditWatch, where
they were placed with negative implications on May 23, 2007.
The outlook is stable.
S&P also assigned its bank loan and recovery ratings to Payless'
proposed USUS$750 million senior secured term loan maturing
2014. The facility is rated 'BB-', one notch higher than the
corporate credit rating on the company, with a recovery rating
of '2', reflecting the expectation of substantial recovery (70%-
90%) of principal in the event of default. Proceeds from the
term loan will be used to fund the acquisition of The Stride
Rite Corp. The company will also have a USUS$350 million asset-
based revolver maturing in 2012, which is unrated.
TENNECO INC: Fitch Affirms BB- Issuer Default Rating
----------------------------------------------------
Fitch Ratings has affirmed these ratings of Tenneco, Inc:
-- Issuer Default Rating at 'BB-';
-- Senior secured revolver at 'BB+';
-- Senior secured term loan A at 'BB+';
-- Senior secured tranche B-1 LC/revolver 'BB+';
-- Senior secured second lien notes 'BB';
-- Senior subordinated notes at 'B'.
The Rating Outlook remains Positive. The ratings cover
approximately US$1.4 billion of debt.
Fitch's ratings reflect Tenneco's solid revenue growth deriving
from new product introductions and new business wins, continuing
diversification away from the Detroit Three, good liquidity, and
steady underlying margin performance in the midst of difficult
industry conditions. The company's operating discipline,
product launches, and working capital management over the past
several years are also positive credit factors. Credit concerns
include modest free cash flow, declining market share and
volumes of the company's D3 customers, pricing pressures and
commodity cost pressures.
The Rating Outlook is Positive given Tenneco's expected revenue
growth, margin performance, EBITDA growth and strong competitive
position in growth product areas such as air quality and safety
products. Capital expenditure levels and working capital
requirements are expected to limit free cash flow in 2007, and
debt reduction will be modest. Fitch expects that continued
growth in EBITDA will expand free cash flow generation over
time, which will be a key factor for a review of the rating for
an upgrade.
Tenneco has been able to offset the challenges facing the
automotive industry with increased revenue from new business
launched, gains in manufacturing efficiency, close attention to
working capital requirements and a geographically diverse
customer base compared with other North American suppliers.
Over the previous three years, Tenneco's North American EBITDA
margin has been 10% or better, an impressive result considering
the drop in D3 production volume and commodity cost inflation
during the same time period. The total amount of Tenneco's new
business backlog is approximately US$1.3 billion through 2009,
about US$1 billion of which is expected to be launched this
year. Exhaust systems compose the majority of the new business
being launched, including diesel particulate filters, which
represent a strong growth opportunity. Currently, Tenneco has
14 car models equipped with its DPF technology and the company
is scheduled to launch eight more in 2007. In its ride control
business, the company has been awarded business for its
computerized electronic suspension on the Audi A6, several Volvo
models and three additional undisclosed European OEM vehicle
platforms. Over the longer term, Tenneco should benefit from
more strict air quality standards and demand for safety related
products.
Total debt-to-EBITDA was 3.3 times at the end of the second
quarter 2007 (2.9x debt net of cash), only slightly lower than
the year-end level of 3.4x but down substantially from 4.7x in
2002. Management's stated long-term objective is to achieve net
debt-to-EBITDA of 2x. The company generated only modest free
cash flow of US$22 million in 2006, albeit in a difficult
industry environment. After an increase in working capital
investment, LTM free cash flow at the end of the second quarter
was (US$56) million. Tenneco's working capital position remains
relatively healthy versus the industry, supplemented by a
current cash level of US$168 million. Fitch expects Tenneco to
be slightly free cash flow positive in 2007 with the potential
for further improvement in 2008.
The escalation in commodity costs, especially stainless steel
for exhaust systems, has moderated relative to the previous
three years. However, Tenneco expects the full year 2007 gross
negative impact from steel to be US$85 to US$90 million.
Tenneco will be challenged to fully offset the negative impact
with cost reduction initiatives, material substitutions, low-
cost country sourcing, aftermarket price increases and OEM
customer recoveries.
At the end of the second quarter 2007, total liquidity was
approximately US$582 million, including cash and marketable
securities balance of US$168 million. Tenneco had US$302
million of availability under its US$550 million revolver and
approximately US$106 million available after US$24 million in
outstanding letters of credit under its Tranche B-1 facility.
The company also has a U.S. securitization facility of
approximately US$100 million, of which only US$6 million was
available at the end of the quarter. In addition, Tenneco had
US$54 million outstanding under its uncommitted European
receivable facilities, the availability of which Fitch does not
include in liquidity since the facility is cancelable at any
time. Tenneco has no exposure to refinancing risk given that
the company's credit facility was refinanced in March this year
and that the company has no significant debt maturities until
after 2011.
Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket. Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products. The company has operations in
Argentina, Japan, and Germany.
=========
K O R E A
=========
ARAMARK CORP: Extends Exchange Offer Expiration Date to Aug. 22
---------------------------------------------------------------
ARAMARK Corporation has extended the expiration date of its
offer to exchange up to US$1,280,000,000 in aggregate principal
amount of its registered 8.50% Senior Notes due 2015 and up to
US$500,000,000 in aggregate principal amount of its registered
Senior Floating Rate Notes due 2015 for its outstanding
unregistered 8.50% Senior Notes due 2015 and outstanding
unregistered Senior Floating Rate Notes due 2015.
The exchange offer was originally scheduled to expire at 5:00
p.m. (Eastern Standard Time) on Aug. 16, 2007, but will now
expire at 5:00 p.m. (Eastern Standard Time) on Aug. 22, 2007.
As of the close of business on Aug. 16, 2007, US$1,277,700,000
in aggregate principal amount of outstanding unregistered 8.50%
Senior Notes due 2015 and US$489,839,000 in aggregate principal
amount of outstanding unregistered Senior Floating Rate Notes
due 2015 had been validly tendered to the exchange agent by the
holders thereof.
The exchange agent for the exchange offer is:
The Bank of New York, Reorganization Unit
Attn: Carolle Montreuil
101 Barclay Street, 7E
New York, New York 10286.
Headquartered in Philadelphia, Pennsylvania, ARAMARK Corporation
(NYSE:RMK) -- http://www.aramark.com/-- is a leader in
professional services, providing award-winning food services,
facilities management, and uniform and career apparel to health
care institutions, universities and school districts, stadiums
and arenas, and businesses around the world. In FORTUNE
magazine's 2006 list of "America's Most Admired Companies,"
ARAMARK was ranked number one in its industry, consistently
ranking since 1998 as one of the top three most admired
companies in its industry as evaluated by peers and industry
analysts. The company was also ranked first in its industry in
the 2006 FORTUNE 500 survey. ARAMARK has approximately 240,000
employees serving clients in 20 countries, including Japan and
Korea.
* * *
As reported in the Troubled Company Reporter-Europe on Feb. 14,
2007, Fitch has downgraded the Issuer Default Rating for both
ARAMARK Corporation and its wholly owned subsidiary, ARAMARK
Services, Inc. to 'B' from 'BB-' and has rated the new financing
of ARAMARK Corporation:
-- US$600 million revolving senior secured credit facility
due 2013 'BB-/RR2';
-- US$4.15 billion senior secured term loans due 2014 'BB-
/RR2';
-- US$250 million senior secured synthetic letter of credit
facility due 2013 'BB-/RR2'; and
-- US$1.78 billion senior unsecured notes due 2015 'B-/RR5'.
In addition, the rating for the US$250 million senior unsecured
notes due 2012 was lowered to 'CCC+/RR6' from 'BB-'. The
ratings are removed from Rating Watch Negative.
Fitch said the Rating Outlook is Stable.
ARAMARK CORP: 8.5% Sr. Notes Offer Set to Expire Today
------------------------------------------------------
ARAMARK Corporation extended the expiration date of its offer to
exchange up to US$1,280,000,000 in aggregate principal amount of
its registered 8.5% senior notes due 2015 and up to
US$500,000,000 in aggregate principal amount of its registered
senior floating rate notes due 2015 for its outstanding
unregistered 8.5% senior notes due 2015 and outstanding
unregistered senior floating rate notes due 2015.
The exchange offer was originally scheduled to expire at 5:00
p.m. (Eastern Standard Time) on Thursday, Aug. 16, 2007, but
will now expire at 5:00 p.m. (Eastern Standard Time) today,
Aug. 22, 2007.
As of the close of business on Thursday, US$1,277,700,000 in
aggregate principal amount of outstanding unregistered 8.5%
senior notes due 2015 and US$489,839,000 in aggregate principal
amount of outstanding unregistered senior floating rate notes
due 2015 had been validly tendered to the exchange agent by the
holders of the notes.
The exchange agent for the exchange offer is:
The Bank of New York
Reorganization Unit
Attn: Carolle Montreuil
101 Barclay Street, 7E
New York, New York 10286
Headquartered in Philadelphia, Pennsylvania, ARAMARK Corporation
(NYSE:RMK) -- http://www.aramark.com/-- is a leader in
professional services, providing award-winning food services,
facilities management, and uniform and career apparel to health
care institutions, universities and school districts, stadiums
and arenas, and businesses around the world. In FORTUNE
magazine's 2006 list of "America's Most Admired Companies,"
ARAMARK was ranked number one in its industry, consistently
ranking since 1998 as one of the top three most admired
companies in its industry as evaluated by peers and industry
analysts. The company was also ranked first in its industry in
the 2006 FORTUNE 500 survey. ARAMARK has approximately 240,000
employees serving clients in 20 countries, including Japan and
Korea.
* * *
As reported in the Troubled Company Reporter-Europe on Feb. 14,
2007, Fitch has downgraded the Issuer Default Rating for both
ARAMARK Corporation and its wholly owned subsidiary, ARAMARK
Services, Inc. to 'B' from 'BB-' and has rated the new financing
of ARAMARK Corporation:
-- US$600 million revolving senior secured credit facility
due 2013 'BB-/RR2';
-- US$4.15 billion senior secured term loans due 2014 'BB-
/RR2';
-- US$250 million senior secured synthetic letter of credit
facility due 2013 'BB-/RR2'; and
-- US$1.78 billion senior unsecured notes due 2015 'B-/RR5'.
In addition, the rating for the US$250 million senior unsecured
notes due 2012 was lowered to 'CCC+/RR6' from 'BB-'. The
ratings are removed from Rating Watch Negative.
Fitch said the Rating Outlook is Stable.
DM TECHNOLOGY: Converts Second-Convertible Bonds to Shares
----------------------------------------------------------
DM Technology Co. Ltd.'s second convertible bonds have been
converted to 132 common shares of the company at a conversion
price of KRW 3,775 per share, Reuters reports.
According to the report, this brings the total number of the
Company's outstanding common shares to 8,335,883.
The confirmed listing date of the new shares is August 22, 2007,
the report adds.
Based in Gyeonggi Province, South Korea, DM Technology Co., Ltd.
--http://www.dmtechnology.co.kr/eng/index.asp-- is engaged in
the manufacturing of digital home appliances. The company
mainly provides crystal display (LCD) televisions (TVs),
portable multimedia players and home theater systems, including
digital versatile disc (DVD) receivers, DVD players and other
systems. It has an overseas corporation each in China, Hong
Kong, Japan, the United Kingdom and Netherlands.
Korea Ratings gave the company's convertible bond with an August
8, 2008 maturity date an initial rating of B, with stable out
look on August 16, 2006.
EG SEMICON: To Issue 3,773,000 Common Shares for KRW1.9 Billion
---------------------------------------------------------------
EG Semicon Co. Ltd will issue 3,773,000 common shares worth
KRW1,999,690,000 through a public offering, Reuters reports.
According to the report, the share's par value and offer price
are KRW500 and KRW530, respectively.
The shares opened for subscription on Aug. 20, to Aug. 21, 2007.
The listing date of the new shares will be Sept. 5, 2007, the
report adds.
EG Semicon Co., Ltd. -- http://www.osec.co.kr/-- manufactures
liquid crystal displays. The company is headquartered in
Gyeongsangbuk Province, Korea. It operates two factories in
Korea and a factory in China.
On August 17, 2007, the Troubled Company Reporter - Asia Pacific
reported that EG Semicon Co. has a shareholders' equity deficit
of US$12.34 million on total assets of US$166.70 million.
E-NET CORPORATION: To Raise KRW9.23 Million from Bond Issuance
--------------------------------------------------------------
E-Net Corporation will issue its sixth overseas unsecured
convertible bonds, raising KRW9,238 million through a private
offering, Reuters reports.
The details regarding the bond issuance are:
* maturity on August 14, 2010;
* maturity interest rate of 4%;
* lump-sum redemption of 112.4864% of unredeemed bonds
principal on maturity date;
* 100% conversion rate of bonds to common shares at the
conversion price of KRW1,500 per share; and
* a subscription period for conversion from August 14, 2008
to July 14, 2010.
Reuters notes that the company has hired HFG IB Securities Co.
Ltd to act as the underwriter.
About E-Net Corporation
Headquartered in Seoul, Korea, E-Net Corporation --
http://www.e-net.co.kr/-- specializes in the provision of
software and system integration solutions. The company provides
two main products: e-business solutions, which provides under
the brand names Commerce 21, customer relationship management
(CRM) WORKS and BizwareFrame to manage e-commerce and customers,
and online games such as TRAVIA and Dragon Gem.
The Troubled Company Reporter - Asia Pacific reported on March
16, 2007 that Korea Ratings gave E-Net Corporation's fifth
unregistered/unsecured overseas convertible bonds issuance of
US$10 million with warrants a 'B-' rating with a stable outlook
on March 6, 2007.
On March 2, 2007 that EG Greentech had a shareholders' equity
deficit of US$1.50 million on total assets of US$186.00 million.
===============
M A L A Y S I A
===============
PANGLOBAL BERHAD: Expects to Sell Entire Stake in PGI by Sept.
--------------------------------------------------------------
PanGlobal Bhd hopes to conclude by September a deal with Tokio
Marine Asia Pte Ltd on the sale of its entire 99.97% stake in
PanGlobal Insurance Bhd, the company's managing director,
Bernard Wong Shoon Tet, told The Edge Daily.
According to Mr. Wong, the company is making progress with
talks, which started in March, and there was a "high prospect"
that PanGlobal would be able to dispose of PGI soon and thereby
use the proceeds for its restructuring plan.
"They (Tokio Marine) did a minor due diligence. There is a
major due diligence now," Mr. Wong told The Edge Financial
Daily.
About five months ago, Bank Negara Malaysia (BNM) allowed
PanGlobal, which is a Practice Note 4/2001 company, to start
talks with Tokio Marine following PanGlobal's failure to strike
a deal with AMMB Holdings Bhd and IAG International Pty Ltd.
Mr. Wong said that the earlier negotiations collapsed because
the parties could not agree on the pricing of PGI, which is
currently valued at MYR150 million.
PanGlobal has been trying to dispose of PGI with an initial
price tag of MYR225 million as part of its restructuring plan
since 1999, the paper relates.
However, Mr. Wong explained that the company had only seriously
looked for a buyer three years ago after it concluded its first
restructuring plan.
Prior to talks with AMMB and IAG, PanGlobal had also
unsuccessfully engaged in talks with OSK Holdings Bhd on the
same matter, Kevin Tan of The Edge notes.
PGI is currently helmed by PricewaterhouseCoopers Malaysia
executive director for corporate finance, Poon Soon Keong, as
the acting chief executive officer pending the disposal of the
company.
"The last CEO (Edwin Wong) had left. In the interim, it is hard
to get a CEO especially when his position in the company is
uncertain," Mr. Wong added. He said employing an acting CEO
from PwC was a "good compromise" as PwC was once appointed by
BNM to take over PGI in the early 1990s.
PGI was set up in 1970 under the name Sovereign General
Insurance Sdn Bhd before changing its name to Global Insurance
Company Sdn Bhd in 1977.
The Edge recounts that PGI posted a lower net loss of
MYR5.57 million in the financial year ended Dec 31, 2006,
compared with a loss of MYR26.11 million in the previous year
while its gross premium declined to MYR105.18 million from
MYR130.7 million.
Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.
PanGlobal is listed under Practice Note 4/2001. The Bursa
Malaysia Securities has required the company to regularize its
financial condition, curb huge losses and settle debts in order
to continue operating. The company has already submitted a
Proposed Restructuring Scheme to the Securities Commission on
Sept. 9, 2005. On April 6, 2006, the Securities Commission
approved PanGlobal Berhad's proposed restructuring scheme.
Panglobal's balance sheet as of Dec. 31, 2006, went upside down
with total assets of MYR680.26 million and total liabilities of
MYR1.06 billion, resulting in a shareholders' deficit of
MYR388.67 million.
STAR CRUISES: Unit's Ratings on Moody's Review for Downgrade
------------------------------------------------------------
On August 20, 2007, Moody's Investors Service has put on review
for possible downgrade the B1 corporate family rating and the B3
senior unsecured bond rating of NCL Corporation Ltd.
The review has been prompted by the announcement that private
equity group, Apollo Management, LP, has agreed to make a
US$1 billion cash investment in NCL for a 50% equity interest,
with Star Cruises Limited continuing to own the remaining 50%
stake. The cash proceeds will be used to repay NCL's existing
debts and fund upcoming new builds.
"While the fresh capital will improve NCL's capital structure
and key credit metrics upfront, the improvement may not be
sufficient to offset the impact of a potential reduction in the
current 2-notch rating uplift derived from the expected support
from SCL and the Genting group," says Kaven Tsang, Moody's lead
analyst for NCL.
"Genting's indirect ownership in NCL, through SCL, will be
reduced to around 5% and will lose the control of the board;
Apollo will name a majority of the NCL board while certain
consent rights will be retained by SCL. As a result, the
support, and hence the rating uplifts, will potentially be
reduced going forward as the strategic importance of NCL to the
group is expected to be lower," adds Tsang.
Moody's notes that the transaction will trigger the Change of
Control covenant under the indenture of NCL's senior unsecured
notes issuance, and expects NCL to offer a repurchase of the
notes at 101% by means of the fresh capital. This arrangement
will to an extent support the position of the bondholders.
Moody's review will focus on:
1) future development and funding plans of NCL, and the
associated impact on its stand-alone credit profile;
2) the relationship between NCL, SCL and the Genting group,
and the degree of future support from the group; and
3) Apollo's willingness and ability to extend further funding
support to NCL.
NCL Corporation Ltd, headquartered in Miami, is a wholly-owned
subsidiary of SCL and operates 13 ships with 24,900 berths. It
offers itineraries in North and South America as well as Europe
under 3 brands: Norwegian Cruise Line (mainly in North America),
Orient Lines (destination-oriented premium market), and NCL
America (Hawaii).
About Star Cruises
Malaysia-based Star Cruises Limited --
http://www.starcruises.com/-- is a company publicly listed in
Hong Kong and is a core member of the Genting Group and 36.1%
owned by Resorts World, which is, in turn, 57.7% owned by
Genting Berhad. Star Cruises operates 22 ships with 35,000
lower berths under five main brands: Star Cruises and Cruise
Ferries, which service Asia Pacific, and three brands under NCL.
Standard & Poor's Ratings Services on April 11, 2007, said its
BB- long-term corporate credit ratings on Malaysia-based cruise
operator Star Cruises Ltd., remain on CreditWatch with negative
implications. The ratings were placed on CreditWatch on Dec.
11, 2006, following the announcement that Genting International
PLC had won its SD$5.2 billion bid to build Singapore's second
integrated resort on Sentosa Island.
Moody's Investors Service confirmed the B1 corporate family
rating of Star Cruises Limited. The rating outlook is stable.
This concludes the ratings review initiated on January 25, 2007.
STAR CRUISES: Moody's Reviews B1 Rating; Direction Uncertain
------------------------------------------------------------
Moody's Investors Service, on August 20, 2007, put on review the
B1 corporate family rating of Star Cruises Limited with
direction uncertain.
The review has been prompted by the announcement that private
equity group, Apollo Management, LP, has agreed to make a US$1
billion cash investment in NCL for a 50% equity interest, with
SCL continuing to own the remaining 50% stake. Apollo will name
a majority of the NCL board while certain consent rights will be
retained by SCL. The cash proceeds will be used to repay NCL's
existing debts and fund upcoming new builds.
"SCL's current financial profile is largely dragged down by its
consolidation with NCL. An improvement in the latter's
financial and liquidity positions could lower SCL's financial
burden and therefore the need to provide ongoing support to
NCL," says Kaven Tsang, Moody's lead analyst for SCL, adding, "A
potential disassociation with NCL, such as a lowering in
ownership level, could also enhance SCL's adjusted key credit
metrics."
"The current rating of SCL incorporates a 2-notch uplifted based
on expectations of ongoing support via Resorts World Bhd from
Genting Berhad, and its ultimate shareholder, the Lim family.
The continuing reduction in Genting's ownership in SCL/NCL may
alter the overall group relationship and the support level,"
adds Tsang.
Moody's expects the final rating of SCL will be a result of a
combination of the net effect of improvement in its stand-alone
financial position and the potential change in support from
Genting and the Lim family. Any negative assessment of the
latter will pressure the rating. On the other hand, there will
be upside potential if Moody's considers the support remains
unchanged.
In this context, Moody's review will focus on:
1) future development and funding plans of SCL and the
associated impact on its stand-alone credit profile;
2) the likelihood of SCL extending support to NCL and the
impact on its adjusted financial profile; and
3) future ongoing support from Genting and the Lim family,
and the potential rating uplift.
Malaysia-based Star Cruises Limited, publicly listed in Hong
Kong, is a core member of the Genting Group and 19.9% owned by
Resorts World Berhad, which is, in turn, 49.98% owned by Genting
Berhad. SCL operates 21 ships with some 32,300 lower berths
under five brands: Star Cruises and Cruise Ferries, which
service Asia Pacific, and three brands under NCL.
* Malaysia's Quality of Mortgages to Remain Stable, Fitch Says
--------------------------------------------------------------
Fitch Ratings published a report on August 21, 2007, on the
quality of household credit, particularly home mortgages, in
Malaysia, which is anticipated to stay intact with stable
consumers' debt servicing ability, underpinned by the moderately
healthy economy and benign interest rate environment.
After a disastrous episode during the 1997/98 Asian financial
crisis, financial institutions in Malaysia have shifted their
focus to consumer lending, which has been driving the banking
system's growth in loans year upon year. From slightly over a
quarter in the pre-crisis period, this retail segment now
accounts for more than half of the Malaysian banking sector's
overall loan exposure. In achieving that, the rate of growth
for consumer loans have expanded quickly at about 15% from 1999
to 2006, at least twice the pace of the overall loan base of 6%.
Post-crisis, banks have reduced their credit exposure limit to
corporates; some of those corporates with good credit ratings
have tapped the debt capital markets.
In search of lending alternatives, most Malaysian banks,
including foreign bank subsidiaries, have been actively
targeting the consumer segment, namely home mortgages (53%),
auto financing (33%) and consumer credit (14%). The credit
environment has been benign and conducive to growth, thanks to
the low interest rate environment in Malaysia, which is still
among the lowest in South-East Asia. While household debt is on
the rise, it is worth noting that the economy has also been
progressing healthily, largely on the back of consumer spending.
Gross domestic product (GDP) has expanded by 4% to 8% annually
since 1999. As a percentage of GDP, household debt stood at 61%
as at end-2006.
To some, the double-digit growth rate of household debt can be
perceived to herald a potential burst in the credit bubble,
drawing comparisons to recent experiences witnessed in Korea and
Taiwan from their exposure to unsecured consumer lending. In
this regard, Fitch does not anticipate this risk to manifest in
Malaysia given that the bulk of the loan growth were fuelled by
secured lending (home mortgages and auto financing) and more
importantly, the credit quality of unsecured consumer lending
(7% of the banking sector's overall portfolio) has remained
satisfactory.
This report first touch on the developments in the residential
and automobile sectors, which have become critical drivers in
forming what the Malaysian banking sector is today. The biggest
chunk of Malaysian household debt lies in mortgages, which have
a 90-day delinquency ratio of 7.4%. While home mortgages have
been expanding rapidly in Malaysia, non-performing home loans
have also been rising, which raises some concerns over the
quality of this loan segment. The report discusses these risks
and interlinks this with the appropriateness of risk-weights for
mortgages under Basel II in Malaysia.
====================
N E W Z E A L A N D
====================
AMALEK HOLDINGS: Undergoes Liquidation Proceedings
--------------------------------------------------
Amalek Holdings Ltd. started to liquidate its business on
July 27, 2007.
The company is accepting proofs of debt from its creditors until
August 30, 2007.
The company's liquidator is:
Stephen James Higgs
Stephen Alan Dunbar
c/o Polson Higgs
PO Box 5346, Dunedin
New Zealand
BLIS TECHNOLOGIES: Obtains U.S. Patent for New Probiotic Strain
---------------------------------------------------------------
BLIS Technologies Ltd (NZX: BLT), developer and manufacturer of
BLIS K12, an advanced oral probiotic for the prevention of upper
airways infection and the treatment of chronic bad breath, has
recently announced that it been granted US patent for its latest
strain of advanced oral probiotic called "MIA".
"MIA is very closely related to our existing K12 range of
probiotic products, which is found in the New Zealand retail
sector and was the active ingredient behind a novel Australian
halitosis product that recently appeared on the TV3 programme,
Campbell Live" according to BLIS, Chief Scientific Officer, Dr
Chris Chilcott. "What makes MIA unique; however, is that this
new strain has been shown to be very effective in protecting
teeth from dental plaque, which is known to be a major
contributor to tooth decay. We believe the new MIA probiotic
can be used to suppress levels of Streptococcus mutans, the
principal cause of dental plaques. Streptococcus mutans
converts dietary refined sugar to lactic acid. The lactic acid,
in turn, erodes the mineral in enamel and dentin, which weakens
the tooth resulting in tooth decay.
Dr. Chilcott indicated that dental caries or tooth decay, is a
worldwide epidemic that affects the majority of populations in
both industrialized and developing countries. According to the
World Health Organization, tooth decay is the most prevalent
infectious disease, affecting approximately 5 billion people.
"This represents a major milestone in our research and
development programme, and sends a clear signal that BLIS is not
a single product company" Dr. Barry Richardson, BLIS CEO, said
today, "we have been planning a solid platform of technology
that addresses a broad array of potential application areas."
BLIS has indicated that they have already started early
discussions with some major international companies around the
commercial opportunities for their new probiotic, MIA; but would
not be drawn on specific details at this early stage. BLIS
Technologies Ltd did however recently announce that it had
entered into "letter of intent" to evaluate and potentially
develop global product and market opportunities based on BLIS's
advanced probiotics technology, with Dutch food ingredient
giant, DSM Nutritionals (formally Roche Vitamins). It is
expected that this would also include opportunities for the new
MIA strain.
About BLIS Technologies
BLIS Technologies Limited (NZX: BLT) became listed on the New
Zealand Stock Exchange in July 2001 and was formed to
commercialise BLIS (bacteriocin-like inhibitory substances),
hence the company's name, BLIS Technologies Ltd. The company
has acquired the rights to the collection of an extensive range
of BLIS producing organisms and is developing new products for
use in the control of undesirable bacterial infections, which
includes dental caries control, the prevention and treatment of
ear and throat infections, and skin infections.
BLIS recorded a net loss of NZ$1,107,851 for the year ended
March 31, 2006, and NZ$1,336,319 in 2005. For the full year to
March 31, 2007, the company reported a NZ$964,000 loss.
CHASE MEDIA: Fixes August 31 as Last Day to File Claims
-------------------------------------------------------
On July 27, 2007, Arron Leslie Heath and Michael Lamacraft were
named as liquidators of Chase Media 2004 Ltd.
Messrs. Heath and Lamacraft are accepting proofs of debt from
the company's creditors until August 31, 2007.
The Liquidators can be reached at:
Arron Leslie Heath
Michael Lamacraft
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
CONNEZIONZ LTD: Sets Annual Shareholders Meeting for Sept. 18
-------------------------------------------------------------
Connexionz Limited intends to hold its 2007 annual meeting of
shareholders at 5:30 p.m. on Sept. 18, 2007, at the company's
offices, in Building 2, 1 Show Place, Addington, Christchurch, a
filing with the New Zealand Stock Exchange says.
The filing also disclosed that the period for the company's
director nominations is now open. The company advises that any
nominations should be forwarded to:
Connexionz Limited
PO Box 36 248,
Christchurch
(Attention: Mr Tony Kan).
The closing date for receipt of nominations is 5:00 p.m.,
Aug. 31, 2007.
About Connezionz Ltd
Christchurch, New Zealand-based Connexionz Limited --
http://www.connexionz.co.nz/-- is a technology company that
develops real-time vehicle tracking systems for the local and
international markets. The company's products include city-side
systems, airport buses, bus interchanges, the BusFinder and
technical papers. Connexionz has a real time system for
tracking a fleet of buses across a city, handling up to 10,000
vehicles and up to 2,500 routes. The Company's BusFinder signs
provide passengers with information citywide at bus stops,
within interchange buildings and in malls and restaurants. The
Company has also customized their system to provide real time
information for airport bus services.
For the 12 months ended March 31, 2007, Connexionz reported a
net loss of NZ$975,463, a 262% increase from the NZ$268,802 loss
incurred in the previous fiscal year.
DRH WEST: Creditors' Proofs of Debt Due on August 24
----------------------------------------------------
On July 23, 2007, the shareholders of DRH West Auckland Ltd.
appointed Peri Micaela Finnigan and Kevin Warwick Bromwich as
the company's liquidators.
The liquidators fixed August 24, 2007, as the last day for
creditors to file their proofs of debt.
The Liquidators can be reached at:
Peri Micaela Finnigan
Kevin Warwick Bromwich
McDonald Vague, PO Box 6092
Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
EL DORADO: Names Shephard and Dunphy as Liquidators
---------------------------------------------------
On July 19, 2007, Iain Bruce Shephard and Christine Margaret
Dunphy were named as liquidators of El Dorado Ventures Limited.
The Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
c/o Shephard Dunphy Limited
Zephyr House, Level 2
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
FAGA CIVIL: Court Appoints Liquidators
--------------------------------------
The High Court of Auckland appointed Iain Bruce Shephard and
Christine Margaret Dunphy as the liquidators of Faga Civil Ltd.
on July 19, 2007.
The Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
c/o Shephard Dunphy Limited
Zephyr House, Level 2
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
FLYOVER INVESTMENTS: Accepting Proofs of Debt Until August 31
-------------------------------------------------------------
The creditors of Flyover Investments Ltd. are required to file
their proofs of debt by August 31, 2007, to be included in the
company's dividend distribution.
The company's liquidator is:
Raymond G. Burgess
PO Box 82100, Auckland
New Zealand
Telephone:(09) 576 7806
Facsimile:(09) 576 7263
GML PROPERTIES: Fixes August 28 as Last Day to File Claims
----------------------------------------------------------
GML Properties Ltd. entered wind-up proceedings on July 23,
2007, and Robert Anthony Elms was appointed as liquidator.
The company requires its creditors to file their claims by
August 28, 2007, to be included in the company's dividend
distribution.
The Liquidator can be reached at:
Robert Anthony Elms
c/o Martin Jarvie PKF
PO Box 1208, Wellington
New Zealand
NZ WINDFARMS: Names Garry Forward as New Chief Financial Officer
----------------------------------------------------------------
Garry Forward has been appointed Chief Financial Officer (CFO)
of NZ Windfarms. He was most recently with Ngai Tahu Holdings
Corporation. He held several positions, including Company
Secretary and CFO, over a seven year period that saw significant
development of the group and its tourism operations,
specifically the Shotover Jet business.
Mr. Forward brings extensive financial management experience to
NZ Windfarms, including in the areas of acquisitions, joint
ventures, capital raising, risk analysis and change management.
He has also held senior financial positions with Eagle
Technology and Lion Nathan.
Mr. Forward takes up the CFO position with NZ Windfarms on
Sept. 3, 2007.
About NZ Windfarms
Christchurch, New Zealand-based NZ Windfarms Limited --
http://www.nzwindfarms.co.nz/-- is engaged in the development
and operation of wind power generation assets for the purpose of
generating and selling electricity. The company's Te Rere Hau
Wind Farm is a 48.5-megawatt wind farm situated on the Tararua
Ranges near Palmerston North. The first stage of the Te Rere
Hau wind farm consists of five New Zealand-made Windflow 500
turbines (2.5 megawatts capacity). NZ Windfarms has arranged a
connection to the local network for the first stage of the Te
Rere Hau wind farm. The company offers a variety of services
associated with wind farm development and operation, such as new
wind farm site identification; wind resource surveying and
assessment; securing wind generation rights; obtaining resource
consents, developing wind farm infrastructure, such as roading,
and onsite and offsite electricity networking; procuring
appropriate wind turbines; providing ongoing support and
maintenance of the wind farm installation, and marketing the
electricity production.
The company reported consecutive net losses of NZ$397,999 and
NZ$118,594 for the years ending June 30, 2006, and 2005,
respectively.
PARTS IMPORTS: Commences Liquidation Proceedings
------------------------------------------------
Parts Imports Co Ltd. went into liquidation on July 21, 2007,
and Alan Tong was appointed as interim liquidator.
The Liquidator can be reached at:
Alan Tong
Level 2, 4-6 Boston Road
Mt Eden, Auckland 1023
PO Box 8942, Symonds Street
Auckland 1150
New Zealand
Telephone:(09) 307 2342
Facsimile:(09) 302 9590
=====================
P H I L I P P I N E S
=====================
BANGKO SENTRAL: Lifts Moratorium on Quasi-Banking Licenses
----------------------------------------------------------
The Bangko Sentral ng Pilipinas has opted to resume issuing
quasi-banking licenses for so-called non-bank financial
institutions at the same maintaining a broader moratorium for
new bank licenses, the Daily Tribune reports.
However, investment houses and finance companies with QB
functions cannot accept deposits from the general public, the
article adds.
According to the Daily Tribune, Toyota Financial Services
Philippines Corp. was granted the license last Friday, the first
company to do so. It can now commence transactions with more
than 19 lenders, the limit which was previously imposed on it
under the moratorium imposed by former BSP Governor Rafael
Carlos Buenaventura in 2000.
Regulators told the Daily Tribune that the drastic rise in
initial public offerings and corporate bond sales by the big
players encouraged the lifting of the moratorium. They also
added that increase in IPOs and sales had collateral impact on
the continued development of the domestic capital market.
The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is
the central bank of the Republic of the Philippines. It was
established on July 3, 1993, pursuant to the provisions of the
1987 Philippine Constitution and the New Central Bank Act of
1993. BSP took over from the Central Bank of Philippines as the
country's central monetary authority. Bangko Sentral enjoys
fiscal and administrative autonomy from the National Government
in the pursuit of its mandated responsibilities.
The powers and functions of the Bangko Sentral are exercised by
the Bangko Sentral Monetary Board, the highest policy-making
body in the BSP.
Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B'
Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign
Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit
Rating.
Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior
Unsecured Debt Rating.
GOTESCO LAND: June 30 Balance Sheet Upside-Down By PHP534 Mil.
--------------------------------------------------------------
Gotesco Land, Inc., filed with the Philippine Stock Exchange its
financial results for the three months to June 30, 2007.
Gotesco Land recorded a lower net loss of PHP791,361 for the
quarter ended June 30, 2007, compared with the PHP949,890 net
loss for the quarter ending June 30, 2006.
The company's revenues increased to PHP6,714,372 for the period
in review, owing to a 1040.69% burst in food and beverage sales
to PHP3,351,175 offset slightly by a 69.83% decrease in room
sales to PHP540,047.
Cost of sales and services amounted to PHP9,272,987, giving the
company a gross loss of PHP2,558,615.
As of June 30, 2007, the company had a capital deficiency of
PHP533,995,800 on total assets of PHP966,596,391.
The company's current liabilities also stood at PHP1,453,935,854
while current assets amounted to PHP140,037,882.
The company's financials are available for download at:
http://bankrupt.com/misc2/GotescoLand.pdf
Headquartered in Manila, Philippines, Gotesco Land, Inc. is the
holding company of the Ever-Gotesco Group of Companies for its
property development projects. As a real estate company, it
acquired various interests principally involved in
leisure/tourist estate developments. The company was partially
successful in the early part of the three-year period but was
hit by the 1997 Asian economic crisis that led to the temporary
suspension of some of its affiliates' various on-going real
estate projects.
MAIDENFORM BRANDS: Moody's Rates New US$50 Mil. Term Loan at Ba2
----------------------------------------------------------------
Moody's Investors Service today assigned Ba2 ratings to
Maidenform's new senior secured US$50 million revolver and
US$100 million term loan, the proceeds of which will be used to
refinance the company's existing senior secured revolver and
term loan. At the same time, Moody's affirmed the company's
corporate family rating at Ba3 and probability of default rating
at B1. The outlook remains stable. The ratings on the existing
US$50 million revolver and US$150 million term loan are being
withdrawn at this time.
Maidenform's Ba3 corporate family rating reflects the company's
well known brands and product innovations that help drive strong
operating margins, improving channel diversity with penetration
into the mass market, albeit at lower margins, and financial
metrics that are strong for the current rating. Maidenform's
ratings are constrained by its lack of scale in revenue while
operating primarily in the highly competitive, commoditized
intimate apparel segment. While the company's move into the
mass market improves its channel diversity, it also may result
in increased its customer concentration.
The stable outlook reflects the expectation that Maidenform will
continue to reduce debt levels while maintaining strong
operating margins in a competitive marketplace and its financial
metrics remain at levels appropriate for the current rating
category. While the current rating category has room for tuck-in
acquisitions that improve diversity, Moody's would expect the
company to remain conservative in its financial policies and not
become aggressive in large debt financed acquisitions or
shareholder friendly activities.
These ratings were assigned:
-- US$50 million senior secured revolver at Ba2 (LGD2 29%)
-- US$100 million senior secured term loan at Ba2 (LGD2 29%)
These ratings were affirmed:
-- Corporate Family Rating at Ba3
-- Probability of Default Rating at B1
These ratings were withdrawn:
-- US$50 million senior secured revolver, was Ba2 (LGD2 29%)
-- US$150 million senior secured term loan, was Ba2 (LGD2 29%)
Maidenform Brands, Inc., the parent of Maidenform, Inc., is a
designer and marketer of intimate apparel, including the
Maidenform, Flexees and Lilyette brands. Based in Bayonne, New
Jersey, the company had revenues of US$425 million for the last
12 months ending June 30, 2007.
Headquartered in Bayonne, New Jersey, Maidenform Brands, Inc. --
http://www.maidenform.com/-- and its subsidiaries design,
source, and market a range of intimate apparel products in the
United States and Canada. Its products include bras, panties,
and shapewear. The company offers its products under the
Maidenform, Flexees, Lilyette, Sweet Nothings, Rendezvous,
Subtract, Bodymates, and Self Expressions brand names.
Maidenform Brands sells its products through department stores;
national chain stores; mass merchants, including warehouse
clubs; and specialty retailers, licensing income, and off-price
retailers, as well as through company-operated outlet stores and
Web sites. As of Dec. 31, 2006, it operated 76 outlet stores.
Maidenform products are currently distributed in 48 foreign
countries and territories, including the Philippines and Puerto
Rico.
NAT'L POWER: Gov't Seeks to Complete Privatization by Year's End
----------------------------------------------------------------
The Government seeks to raise around US$6 billion to
US$7 billion by selling off half of National Power Corp.'s
generating assets by the end of 2007, Energy Secretary Angelo
Reyes told ABS-CBN News on Monday.
Mr. Reyes further told ABS-CBN that they are planning to sell
four facilities, namely:
1. the 600-megawatt (MW) Calaca power plant,
2. the 192.5 MW Palinpinon and the 732 MW Tiwi-Makban
geothermal power plants,
3. the 175-MW Binga-Ambuklao hydro power facilities, and
4. the 25-year concession contract of the National
Transmission Corp. (TransCo).
"President Arroyo has issued a directive for us to accelerate
the privatization, including TransCo. She wants these efforts
to be completed by the end of this year," Mr. Reyes said.
The article relates that the Power Sector Assets and Liabilities
Management Corp., the firm in charge of privatizing NAPOCOR's
assets, so far has sold 24.8% of the power company's assets.
Headquartered in Quezon City, Philippines, National Power
Corporation -- http://www.napocor.gov.ph/-- is a state-owned
utility that builds and operates nuclear, hydroelectric,
thermal, and alternative power generating facilities. It works
with independent producers under a build-operate-transfer
program. With a generating capacity of more than 11,500
megawatts, Napocor sells electricity to distributors and
industrial companies. To comply with the privatization bill
approved by the Philippine Congress, the company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion. It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.
* * *
National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers. The company posted a PHP29.9 billion loss in
2004, after a net loss of PHP117 billion in 2003.
The Government absorbed National Power's PHP200 billion debt,
which was incurred when the government-owned-and-controlled
corporation adopted international accounting standards, forcing
the company to report its foreign exchange losses.
The Troubled Company Reporter-Asia Pacific reported on April 5,
2006, that for 2005, National Power posted a PHP16-million
profit for the first time in seven years, on the Energy
Regulation Commission's approval of a rate increase, the use of
improved fuel mix and better fuel prices.
* * *
The TCR-AP reported that on November 2, 2006, Moody's Investors
Service changed the outlook to stable from negative for the B1
senior unsecured debt rating of National Power Corporation,
which is guaranteed by the Republic of Philippines. This rating
action follows Moody's decision to change the outlook of
Philippines' B1 long-term foreign currency government rating to
stable from negative.
The TCR-AP reported that on October 25, 2006, Standard & Poor's
Ratings Services assigned its 'BB-' rating to the proposed
US$500 million unsecured notes to be issued by Philippines'
National Power Corp. (Napocor; foreign currency BB-/Stable/--,
local currency BB+/Stable/--). The Republic of Philippines
(foreign currency BB-/Stable/B; local currency BB+/Stable/B)
will unconditionally and irrevocably guarantee the notes.
Napocor will use the proceeds for capital expenditure.
On October 25, 2006, Fitch Ratings assigned a rating of 'BB' to
the US$500 million fixed-rate notes issued by National Power
Corporation in the Philippines.
NIHAO MINERAL: Reports PHP2.29MM Net Loss for 2007 2nd Quarter
--------------------------------------------------------------
NiHao Mineral Resources International Inc. reported a
PHP2.29-million net loss incurred during the quarter ended
June 30, 2007, a PHP2.113 billion or 119.54% increase from the
PHP176,783 net loss reported for the same period in 2006.
For the April-June 2007 period, the company reported no revenues
but incurred expenses of PHP2.290 million, which represents the
net loss for the quarter.
NiHao Mineral reported a PHP11.59-million net loss for the first
half of 2007, a PHP11.057-million or 208% increase from the
PHP529,320 net loss reported for the same half-year period in
2006.
For the six months ended June 30, 2007, the company reported no
revenues but incurred expenses of PHP11.59 million, which
represents the net loss for the period.
As of June 30, 2007, the company had PHP397,427 in assets and
PHP16.8 million in liabilities, resulting in a stockholders'
equity deficit of PHP16.403 million.
NiHao Mineral's 2007 second quarter financials can be viewed for
free at:
http://www.pse.com.ph/html/ListedCompanies/pdf/2007/NI_17Q_Jun2007.pdf
Formerly known as Magnum Holdings Inc., Pasig City, Philippine-
based NiHAO Mineral Resources Inc. was originally organized to
engage in mining exploration.
On June 28, 2007, the Securities and Exchange Commission
approved the change in its Magnum Holdings Inc.'s name to NiHAO
Mineral Resources, Inc.
After auditing the company's annual report for 2006, Napoleon
Calderon at MCJ & Co. raised significant doubt on the company's
ability to continue as a going concern, citing the company's:
* losses of PHP920,708 and capital deficit of
PHP4.82 million for the year ended Dec. 31, 2006;
* losses of PHP788,695 and capital deficit of
PHP3.90 million for the year ended Dec. 31, 2005; and
* losses of PHP691,286 and capital deficit of
PHP3.11 million for the year ended Dec. 31, 2004.
PHIL AIRLINES: Par Value of Shares Reduced to PHP0.80 from PHP1
---------------------------------------------------------------
The reduced par value of the shares of Philippine Airlines Inc.
was an unnecessary move because of its profitability, company
sources told the Manila Standard.
Lucio Tan, whose group owns majority of PAL, had forced the
airline's stockholders to vote whether shareholders should waive
their pre-emptive rights and lower the par value of the
airline's shares from PHP1 to PHP0.80, Land Bank of the
Philippines Vice President Alex Macapagal said.
Mr. Macapagal pointed out that the moves were detrimental to the
government because it would render the state unable to maintain
its shareholdings in the event of an anticipated backdoor
listing.
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. As of 2005, it claims
to serve 21 domestic airports and 31 foreign cities. Its main
hub is the Ninoy Aquino International Airport in the capital
city of Manila.
Following labor problems and its failure to settle debts, PAL
filed for rehabilitation in June 1998, and is slated to complete
its 10-year debt rehabilitation program in 2009.
A March 21, 2006 report by the Troubled Company Reporter-Asia
Pacific stated that the airline company will continue a
government-led rehabilitation program even as creditors neither
approved nor rejected the program to leave the protection of the
Securities and Exchange Commission.
According to a TCR-AP report on July 24, 2007, Philippine
Airlines Inc. is considering emerging from its rehabilitation
after it brought down its foreign debts to US$953 million as of
March 31, 2007, from the initial US$2.3 billion upon entering
rehab in June 1999.
PHIL. AIRLINES: Schedules Annual Meeting for Sept. 17
-----------------------------------------------------
PAL Holdings, Inc., Philippine Airlines' holding company, has
scheduled its annual stockholders' meeting for Sept. 17, 2007,
according to a company disclosure with the Philippine Stock
Exchange.
The agenda of the meeting include the appointment of auditors
and the election of new directors.
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. As of 2005, it claims
to serve 21 domestic airports and 31 foreign cities. Its main
hub is the Ninoy Aquino International Airport in the capital
city of Manila.
Following labor problems and its failure to settle debts, PAL
filed for rehabilitation in June 1998, and is slated to complete
its 10-year debt rehabilitation program in 2009.
A March 21, 2006 report by the Troubled Company Reporter-Asia
Pacific stated that the airline company will continue a
government-led rehabilitation program even as creditors neither
approved nor rejected the program to leave the protection of the
Securities and Exchange Commission.
According to a TCR-AP report on July 24, 2007, Philippine
Airlines Inc. is considering emerging from its rehabilitation
after it brought down its foreign debts to US$953 million as of
March 31, 2007, from the initial US$2.3 billion upon entering
rehab in June 1999.
PHIL. REALTY: Loses PHP42 Million in the Six Months to June 30
--------------------------------------------------------------
Philippine Realty and Holdings Corporation registered a
consolidated net loss of PHP42.0 million for the first six
months of 2007, against a net income of PHP537.3 million for the
first six months of 2006.
Rental income increased by 43.5% compared with the first
semester of 2006 as major areas were leased beginning the second
half of 2006. Some building management contracts were
terminated resulting to the decrease in management fees by
subsidiary PRHC Property Managers, Inc. Total income amounted
to PHP45.6 million.
General and administrative expenses rose by 24.7% from
PHP54.2 million to PHP67.6 million in 2007 due to the payment of
taxes on sale of land, original issuance of business and realty
taxes. Total costs and expenses amounted to PHP87.1 million.
The company's financials are available for download at:
http://bankrupt.com/misc2/PhilRealty.pdf
Headquartered in Quezon City, Philippine Realty and Holdings
Corporation is one of the leading real estate developers in the
country. It was incorporated on July 13, 1981, but development
activities began only in 1986 when capitalization was increased
to PHP100 million from the initial PHP2 million to accommodate
the entry of new stockholders. The company's main real estate
activity since it started operations has been the development
and sale of residential/office condominium projects and to a
limited extent, the lease of commercial and office spaces.
In December 2002, the Parent Company's Board of Directors
resolved to file a petition for a corporate rehabilitation with
the Regional Trial Court in Quezon City. A Stay Order was
granted on December 16, 2002, after the petition was deemed
sufficient both in form and in substance.
On February 6, 2003, the Court conducted a series of hearings
for the purpose of receiving various inputs from the company,
the creditors and the rehabilitation receiver as well. In the
course of the proceedings, the Court noted that all the creditor
banks were in agreement that the company is susceptible to
rehabilitation as it is solvent and its business is viable.
The objectives of the rehabilitation plan are:
1. to pay all of Philippine Realty's creditors in a fair and
just manner;
2. to complete and deliver the Andrea Skyline Condominium
units to its existing buyers; and
3. to protect the investments of the shareholders,
particularly the small public investors, by keeping the
business viable and profitable.
At December 31, 2006, the parent company's total debts stood
at PHP829.49 million.
PRC LLC: S&P Lowers Corporate Credit Rating to B
------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on PRC LLC to 'B' from 'B+'. The outlook is negative.
At the same time, S&P lowered the rating on PRC's $160 million
first-lien credit facilities to 'BB-' (two notches above the
corporate credit rating) from 'BB'. The recovery rating remains
unchanged at '1', indicating our expectation of full (90%-100%)
recovery in the event of a payment default.
S&P also lowered the rating on the $67 million second-lien term
loan to 'CCC+' (two notches below the corporate credit rating)
from 'B-'. The recovery rating remains unchanged at '6',
indicating our expectation of negligible (0%-10%) recovery in
the event of a payment default.
The downgrade of PRC, a business process outsourcer, was based
on weak operating performance and a narrowing cushion of
compliance with bank covenants.
"A slower-than-expected ramp-up in call center activity for a
major new client caused most of the company's disappointing
operating performance," said Standard & Poor's credit analyst
Andy Liu. "PRC had incurred most of the infrastructure and
training costs associated with the contract but wasn't able to
staff enough call center operators to generate revenue
sufficient to offset
the costs."
Poor execution of this new contract contributed to the
resignation of PRC's CEO and CFO. An interim management is now
in place.
As a result of earnings underperformance, the company's cushion
of compliance with bank covenants has narrowed. However, PRC's
private-equity owner, Diamond Castle Holdings LLC, could infuse
additional equity if needed to ensure that PRC remains in
compliance with bank covenants.
The ratings reflect PRC's significant revenue concentration
among its top customers, our concerns regarding its operating
execution, the competitive BPO market in which the company
operates, the presence of several larger and better capitalized
competitors, and high debt leverage. These factors are only
partially offset by good BPO industry growth prospects.
Plantation, Florida-based PRC is a business process outsourcing
or BPO provider with operations in the U.S., the Philippines,
India, the Dominican Republic, and Ireland. The company
provides dedicated-agent communication services focusing on
business-to-consumer and business-to-business transactions.
RIZAL COMMERCIAL: Posts PHP985-Mil. Income for 2nd Quarter 2007
---------------------------------------------------------------
Rizal Commercial Banking Corp. reported a consolidated net
income of PHP985.35 million for the second quarter of 2007, an
increase of PHP820.40 million or 4.97% from the
PHP164.95-million net income reported during the same period in
2006.
For the April-June 2007 period, the bank earned a net interest
income of PHP4.439 billion comprising of gross interest income
of PHP7.735 billion less interest expenses of PHP3.30 billion.
Operating income for the period totaled PHP2.77 billion, while
operating expenses are at PHP4.0 billion and tax expenses are at
PHP350.513 million.
As of June 30, 2007, the bank has PHP222.57 billion in assets
and PHP194.52 billion in liabilities, resulting in total capital
funds of PHP28.048 billion.
RCBC's financials for the second quarter can be viewed for free
at:
http://www.pse.com.ph/html/ListedCompanies/pdf/2007/RCB_17Q_Jun2007.pdf
About RCBC
Rizal Commercial Banking Corporation -- http://www.rcbc.com/--
is a universal bank principally engaged in all aspects of
banking. It provides services such as deposit products, loans
and trade finance, domestic and foreign fund transfers,
treasury, foreign exchange and trust services. In addition, the
bank is licensed to enter into forward currency contracts to
service its customers and as a means of reducing and managing
the bank's foreign exchange exposure.
* * *
On November 2, 2006, the Troubled Company Reporter-Asia Pacific
reported that Fitch Ratings has assigned a final rating of 'B-'
to Rizal Commercial Banking Corporation's hybrid issue of up to
US$100 million. The rating action follows the receipt of final
documents conforming to information previously received.
On November 6, 2006, the TCR-AP also reported that Moody's
Investors Service revised the outlook for RCBC's foreign
currency senior debt rating of Ba3, foreign currency Hybrid Tier
1 of B3, and foreign currency long-term deposit rating of B1 to
stable from negative.
The outlook for RCBC's foreign currency Not-Prime short-term
deposit rating and bank financial strength rating of E+ remains
stable, the TCR-AP said.
The TCR-AP reported on October 24, 2006, that Standard & Poor's
Ratings Services assigned its 'CCC' rating to Philippines' Rizal
Commercial Banking Corp's (RCBC; B/Stable/B) US$100 million non-
cumulative step-up callable perpetual capital securities.
SAN MIGUEL CORP: Moody's Downgrades Local Currency Rating to Ba2
----------------------------------------------------------------
Moody's Investor Service has downgraded its local currency
corporate family rating for San Miguel Corporation to Ba2 from
Ba1. The rating outlook is stable. This concludes the rating
review for possible downgrade initiated on May 16, 2007.
"The downgrade reflects the uncertainties surrounding SMC's
business and financial risk profiles, given its planned ventures
into non-traditional businesses, asset disposals, and the nature
of various funding plans now under consideration," says Renee
Lam, a Moody's VP/Senior Analyst.
"The rating action also reflects concerns over SMC's weaker-
than-expected operating performance, partly due to rising input
costs, and unexpected events, such as a drought in Australia,"
adds Lam, also the lead analyst for SMC.
"Therefore, the company's ability to strengthen its debt
coverage measures rapidly enough to support its original Ba1
rating -- an important underlying assumption when it was
originally assigned -- had fallen into doubt," says Lam.
Currently, SMC plans to invest about PHP35 billion in non-
traditional assets, including mining, power and other
infrastructure projects. Such businesses are beyond its
traditional core competencies and involve execution risks.
At the same time, SMC envisages that these new businesses will
only account for about 10% of its total assets, mitigating the
emergent uncertainties to a degree, although subsequent on-going
capital requirements are unpredictable.
SMC also plans to partially dispose of certain core assets,
including the floatation of its domestic beer business in the
Philippines and partial sell-down of National Foods. The one-
off sale proceeds would help fund the new investments, but the
company's on-going access to cash flow from these partially
divested businesses will diminish.
Partly alleviating the above risks is SMC's business diversity,
which encompasses alcoholic beverages and soft drinks, food and
packaging activities in the Philippines, as well as food and
beverage operations in Australia. The company also enjoys
strong brand equity and commanding positions in most of its
markets, which are stable by nature, providing it with a robust
and healthy platform for cash flow generation.
The rating outlook is stable. The current Ba2 rating
incorporates the expectation that SMC will invest not more than
10% of its total assets into non-traditional businesses, and
that it will also partially dispose a number of its core
businesses to part fund such investments.
Near-term upward rating pressure is limited, given the
uncertainties surrounding its planned new ventures and asset
disposals. The rating could be upgraded over time should SMC
enhance efficiency to counter rising costs and execute its
growth strategy with prudent funding means, such that its
financial metrics improve. Better evidence of a sustainable
business mix would also be relevant to an upgrade. Financial
metrics that Moody's would consider for an upgrade include
consistent delivery of Adjusted Retained Cash Flow to Adjusted
Net Debt above 20%, and Adjusted Debt/EBITDA at or below 3.0x.
On the other hand, the rating may come under pressure should
SMC's investments in non-traditional assets develop beyond the
scale presently envisaged (i.e. 10% of total assets). A
downgrade is also possible if there is further deterioration in
its operating performance, or if its new investments are
aggressively financed, such that its financial metrics continue
to weaken. This may be reflected by adjusted RCF to net debt
below 12%; and Adjusted Debt/EBITDA above 4.0x.
San Miguel Corporation, headquartered in Manila, the Republic of
the Philippines, is a broad-based food and beverage company with
major operations in the Philippines and Australia.
STENIEL MANUFACTURING: Loses PHP39 Million for the 2nd Quarter
--------------------------------------------------------------
Steniel Manufacturing Corporation reported an improved loss from
operations for the current quarter of PHP18.1 million as
compared with the budgeted loss from operations of
PHP14.9 million.
The company's net loss amounted to PHP39.0 million.
Consolidated sales revenue for the second quarter of 2007
reached PHP136.5 million with an equivalent volume of 6,220
metric tons. The revenue for the period is lower than the
budget of PHP172.8 million mainly because actual volume for the
current quarter is lower than the budget of 8,560 MT.
In particular, tolling volume in Mindanao is lower than budget
by 32% due to the poor harvest of bananas as a result of erratic
weather changes. Similarly, all-in volume is also lower by 19%
as a result of stiff competition and limited paper supply.
Gross profit for the current quarter of PHP11.2 million (GP rate
-- 8%) is lower than the budget's PHP14.2 million (GP rate --
8%) as a consequence of lower volume. With respect to
manufacturing costs, the total cost per MT is slightly higher
than budget by 2%. Paper, which constitutes significant portion
of total costs, increased by 2% due to higher prices as a result
of longer credit terms.
Other raw materials per MT improved by 16% while direct labor
cost per MT slightly increased by 4%. With respect to
manufacturing overhead, total costs in absolute amounts improved
by 23% as compared with budgeted figures as a result of
continued efforts to reduce costs.
Operating expenses Operating expenses on a consolidated basis
for the current quarter of PHP29.3 million is within budgeted
figure. Continued control of operating expenses is being
observed throughout the plants.
Financial Ratios. Consolidated current assets as at June 30,
2007 totaled PHP457.2 million while current liabilities as at
the same date totaled PHP1.2 billion. The higher balance of
current liabilities is mainly due to the reclassification of
certain long-term debts whose final maturity was in December
2005.
Working capital ratio for the current quarter is 0.37, which is
within budget. Working capital ratio is computed as the ratio of
current assets over current liabilities. The current quarter's
debt-to-equity ratio of 2.0 is within budgeted figures. The
ratio is computed as interest bearing bank debts over
stockholders' equity. The quarter-end balances of bank debts
have not changed as of last reporting period.
The company's financials are available for download at:
http://bankrupt.com/misc2/StenielMfg.pdf
Cavite, Philippines-based Steniel Manufacturing Corporation --
http://www.steniel.com/-- was incorporated in 1963 primarily to
engage in manufacturing, processing, and selling all kinds of
paper products, paper board and corrugated carton containers,
and all other allied products and processes. The company and
its subsidiaries have established a strong foothold in the
packaging industry by offering a broad line of packaging
products from corrugated carton boxes to paper, plastic
containers, and flexible packaging. STN stands as the single
largest independent manufacturer of corrugated fibreboard
containers in the Philippines. About 99% of its revenues come
from the corrugated packaging business while the remaining 1% is
from rigid plastics.
On October 30, 2000, Metro Pacific Corporation and Philippine
International Paper Corporation entered into a Sale and Purchase
Agreement with Steniel (Netherlands) Holdings B.V. whereby all
the 636,193,025 common shares collectively owned by MPC and PIPC
representing approximately 72.6% of the issued and outstanding
capital stock of the company were sold to Steniel (Netherlands)
in accordance with the terms and conditions provided for in the
SPA.
* * *
Steniel Manufacturing did not meet its maturing obligations due
as of December 31, 2005, to certain lender banks. The company
failed to meet its quarterly principal amortizations
and interest payments since March 2004. The creditor banks
declared the company in default on May 24, 2006. The company is
currently negotiating with the lender banks for the rescheduling
of its long-term debts.
Going Concern Doubt
Geraldine Hammond-Apostol of Isla Lipana and Co. raised
substantial doubt on Steniel Manufacturing Corporation's ability
to continue as a going concern citing that the company incurred
net losses of PHP178.23 million, PHP185.15 million and
PHP138.82 million for the years ending Dec. 31, 2006, 2005 and
2004, respectively.
The auditors also cited the company's PHP887.57 million
accumulated deficit as of Dec. 31, 2006.
UNIWIDE HOLDINGS: June 30 Bal. Sheet Upside-Down By PHP1.96 Bil.
----------------------------------------------------------------
Uniwide Holdings, Inc. posted a PHP36,077,027 net loss for the
three months ending June 30, 2007, a 14% increase from the
PHP31,532,249 net loss posted for the three months ending
June 30, 2006.
The company posted a PHP31,611,681 income for the second quarter
of 2007, while operating expenses amounted to PHP68,328,719,
resulting in an operating loss of PHP36,717,038.
As of June 30, 2007, the company had total assets of
PHP3,074,811,759 and total liabilities of PHP5,039,755,119
resulting in a capital deficiency of PHP1,964,943,360.
The company's 2007 2nd quarter financials are available for free
at:
http://bankrupt.com/misc2/UniwideHoldings.pdf
Uniwide Holdings, Inc., was incorporated in the Philippines and
is a major subsidiary of Uniwide Sales, Inc., a holding company
wholly owned by the Gow family.
The company was organized in 1994 as the franchiser of USI and
Uniwide Sales Warehouse Club stores. The company also engages
in real estate operations primarily through a subsidiary,
Uniwide Sales Realty and Resources Corp. USRRC is involved in
the acquisition, development, holding and leasing of land and
buildings used as sites for the warehouse clubs and department
stores. On the other hand, another subsidiary, Naic Resources &
Development Corporation engages in, operates, conducts, manages
and carries on the business of a general amusement, recreation
and entertainment enterprise.
Uniwide filed for rehabilitation in June 1999, and the
Securities and Exchange Commission approved its rehabilitation
plan in 2000. Under the plan, the company will convert 50% of
its unsecured debt into 15-year convertible notes redeemable
anytime at its convenience, while the remaining 50% would be
restructured into a 10-year loan with 0% interest and a 3-year
grace period; payment will begin on the fourth year.
Aris Malantic at Sycip Gorres Velayo & Co. raised significant
doubt on the group's ability to continue as a going concern,
pointing out the group's continued losses and capital
deficiency.
ZEUS HOLDINGS: Posts PHP28,815 Net Loss for 2nd Quarter 2007
------------------------------------------------------------
Zeus Holdings Inc. reported a net loss of PHP28,815 for the
three months ended June 30, 2007, compared with the PHP31,313
net loss recorded for the same period in 2006.
For the six months to June 30, 2007, Zeus Holdings incurred a
net loss of PHP295,583, a slight increase from the PHP269,829
net loss for the same half-year period a year ago.
The company's balance sheets as of June 30, 2007, showed total
assets of PHP245,672 and total liabilities of PHP1,824,231,
resulting in a total capital deficiency of PHP1,578,559.
Zeus Holdings, Inc., was incorporated on December 17, 1981, as
JR Garments Corporation, to engage in the garment manufacturing,
distribution and export business. After 15 years, the company
diversified into other businesses and closed its garment
operations. It increased its capitalization from PHP100 million
to PHP3 billion and changed its primary purpose to that of a
holding company. Consequently, it changed its name from JR
Garments Corporation to Zeus Holdings, Inc.
The company has not declared any cash dividend for the last two
fiscal years.
* * *
After reviewing Zeus Holdings Inc.'s 2006 annual financials,
Mailene Sigue-Bisnar at Punongbayan & Araullo, the company's
independent auditors, raised a significant doubt on the
company's ability to continue as a going concern, citing that:
* the company incurred net losses of PHP498,490; PHP554,657;
and PHP421,293 for the years 2006, 2005 and 2004,
respectively;
* the company has a capital deficiency of PHP1.28 million,
PHP0.78 million and PHP1.75 million as of Dec. 31, 2006,
2005 and 2004 respectively.
* PSALM Sets Nov. 28 Deadline to Submit Bids for Benguet Plants
---------------------------------------------------------------
Interested parties have until November 28, 2007, to submit their
bids to the Power Sector Assets and Liabilities Management Corp.
for the 75-Megawatt Ambuklao and 100-Megawatt Binga
hydroelectric power plants in Benguet, an ABS-CBN News article
reports.
PSALM, which oversees the sale of the Philippines' energy
assets, also told ABS-CBN that prospective buyers may submit a
letter of interest by September 14.
PSALM further specified that interested parties should execute a
confidential agreement and pay a non-refundable participation
fee of US$1,000 as a pre-requisite to the bidding package.
PSALM said that the agreement should be executed by Sept. 18.
A pre-bid conference will be held on September 26, the article
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. Also
in May 2007, S&P assigned its 'BB+' senior unsecured rating to
the Philippines' 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. 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.
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.
* Interest Expenses Decline 16.4% for January-July 2007 Period
--------------------------------------------------------------
The Philippine Government's interest payments for the first
seven months of 2007 at PHP159.9 billion are 16.4% lower than
the PHP190.7 billion reported for the same period last year,
Finance Undersecretary told ABS-CBN News yesterday.
The lower figure for the period is due to a 12.6% drop in
interest payments for the month July, Mr. Beltran exlained. He
added that this has caused the government to save as much as
PHP9 billion in interest payments in July alone.
The strong peso and lower interest rates resulted to PHP30
billion in savings from interest payments in the January-July
period, Mr. Beltran disclosed.
According to the article, the Department of Finance's
simulations shows that the country saves about PHP4.2 billion in
debt service requirements for each PHP1 appreciation against the
US dollar. The simulations also reveal that the Philippines
saves another PHP5.1 billion for every percentage of decline in
domestic interest rates.
* * *
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. Also
in May 2007, S&P assigned its 'BB+' senior unsecured rating to
the Philippines' 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. 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.
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.
* Arroyo Orders Open Access to Ecozone Electricity Supply
---------------------------------------------------------
President Gloria Macapagal Arroyo has ordered open access to
electricity supply in private and publicly-owned economic zones
in order to lower industrial power rates, the Manila Standard
reports.
Pres. Arroyo also ordered the Department of Trade and Industry
and the Philippine Economic Zone Authority to look into the
possibility of declaring six geothermal-producing sites as
industrial zones, the article adds.
Trade Secretary Peter Favila told reporters that they are now
drafting the executive order that will grant open access into
the ecozones. He also added that the Philippines has the
highest industrial power rates in Southeast Asia, and in order
to be more competitive, the country has to bring down its rates.
He said the areas to be put under Peza control are Mt. Apo in
Davao, Tiwi in Albay, Makban, which borders Banahaw and
Makiling, Bago in Negros Occidental, Palinpinon in Negros
Oriental, and Tongonan in Leyte.
The open access would allow industrial customers to choose their
own power supplier, Energy Undersecretary Melinda Ocampo said.
Meanwhile, residential consumers can still enjoy a PHP0.30 per
kilowatt-hour reduction under the Electric Power Industry Reform
Act of 2001 and the lifeline rates.
Lowering electricity costs should be their "primary concern,"
the president told the energy officials.
* * *
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. Also
in May 2007, S&P assigned its 'BB+' senior unsecured rating to
the Philippines' 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. 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.
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
=================
AAR CORP: Terry Stinson to Head Structures & Systems Segment
------------------------------------------------------------
AAR Corp. disclosed that Terry Stinson has been named group vice
president responsible for the company's Structures & Systems
segment. The appointment includes responsibility for AAR's
Cargo Systems, Composites and Mobility Systems operating units
with emphasis on capitalizing on the robust build cycles in
commercial and defense markets.
"Terry is a recognized aerospace industry leader, and we welcome
him to AAR during an exciting time of transformation and
growth," said Timothy Romenesko President & Chief Operating
Officer. "Terry's reputation, extensive experience and
strategic vision will serve AAR well as we capitalize on
opportunities to grow our structures and systems business."
Stinson most recently served as president of Commercial
Operations for Thomas Group, an operational consulting firm, and
chairman and CEO of Xelus Inc. He joined Textron Inc., in 1991,
first as group vice president and segment president of its
Aerospace Systems and Components group, and later as chairman
and chief executive officer of Bell Helicopter Textron Inc.
He previously held leadership positions with United Technologies
Corporation, including president and chief executive officer of
Hamilton Standard, a UTC division.
About AAR Corp.
AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides
products and value-added services to the worldwide
aviation/aerospace industry. With facilities and sales
locations around the world, AAR uses its close-to-the-customer
business model to serve airline and defense customers through
Aviation Supply Chain; Maintenance, Repair and Overhaul;
Structures and Systems and Aircraft Sales and Leasing. In Asia
Pacific, the company has offices in Singapore, China, Japan and
Australia.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 18, 2006, Standard & Poor's Ratings Services upgraded AAR
Corp.'s corporate credit rating from 'BB-' to 'BB'. The outlook
is stable.
The TCR-AP also reported on Dec. 5, 2006, that Moody's upgraded
AAR's corporate family rating and senior notes to Ba3 from B1,
in response to improving financial performance resulting from
the strong commercial and defense aviation supply and repair
environment. The ratings outlook is stable.
CHINA CIVIL: Court to Hear Wind-Up Petition on August 31
--------------------------------------------------------
The High Court of Singapore will hear a petition to wind up the
operations of China Civil Engineering Construction Corporation
Singapore Branch on August 31, 2007.
The petition was filed by SPC Industries Sdn Bhd on August 7,
2007.
SPC Industries' solicitor is:
Margaret George
c/o Peter Low Partnership
No. 19 Carpenter Street #03-00
Singapore 059908
CHUAN & CO: Accepting Proofs of Debt Until August 31
----------------------------------------------------
Chuan & Co Hardware Pte Ltd, which is in compulsory liquidation,
intends to declare dividend.
Creditors are required to file their claims by August 31, 2007,
to be included in the company's dividend distribution.
The company's liquidator is:
Tam Chee Chong
c/o 6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
FALMAC LIMITED: Net Loss Widens to SGD1.4 Mil. in 1st Half 2007
---------------------------------------------------------------
Falmac Limited filed with the Singapore Stock Exchange its
financial results for the half-year ended June 30, 2007.
The group widened its net loss by 558% from SGD220 thousand in
the first half of 2006 to SGD1.4 million net loss in the current
year.
For the first half of 2007, the company's turnover improved by
14.38%, to SGD7.7 million compared to SGD6.8 million in the
first half of 2006. The increase was mainly contributed by
improved sales of knitting machines in the European and Middle
East market.
As of June 30, 2007, the group's balance sheet showed SGD16
million of total assets, total liabilities of SGD20.7 million
and shareholders' equity deficit of SGD4.7 million.
Moreover, the company's balance sheet reflects total assets of
SGD11.8 million available to pay SGD11.4 of total liabilities,
resulting in a shareholders' equity of SGD4 thousand.
About Falmac Ltd.
Headquartered in Singapore, Falmac Limited manufactures and
trades knitting machines and related precision parts and
components, as well as cotton yarn.
A report by the Troubled Company Reporter - Asia Pacific on
July 8, 2004, stated that the company has entered into these
definitive agreements in relation to the company's restructuring
on July 6, 2004:
(1) Restructuring Deed with Ho Liong Fen, Falmac
Investment Holdings Pte Ltd, and the creditor banks
of the Company.
(2) Shareholder's Loan Agreement with Sino Equity.
(3) Strategic Subscription Agreement with Sino Equity.
Moreover, the TCR-AP reported on Aug. 16, 2006, that the company
registered a widening shareholders' deficit, from a shortfall of
SGD1.21 million as of December 31, 2005, to a deficit of
SGD1.88 million as of June 30, 2006.
The company's total assets as of June 30, 2006, stood at
SGD17.62 million, while the total liabilities figure was at
SGD19.50 million. The company has SGD10.39 million of secured
loans repayable within in one year, but current assets stands at
SGD7.23 million.
FALMAC LIMITED: Moves to New Location
-------------------------------------
Effective from August 18, 2007, Falmac Limited is situated in:
6 Clementi Loop
Singapore 129814
About Falmac Ltd.
Headquartered in Singapore, Falmac Limited manufactures and
trades knitting machines and related precision parts and
components, as well as cotton yarn.
A report by the Troubled Company Reporter - Asia Pacific on
July 8, 2004, stated that the company has entered into these
definitive agreements in relation to the company's restructuring
on July 6, 2004:
(1) Restructuring Deed with Ho Liong Fen, Falmac
Investment Holdings Pte Ltd, and the creditor banks
of the Company.
(2) Shareholder's Loan Agreement with Sino Equity.
(3) Strategic Subscription Agreement with Sino Equity.
Moreover, the TCR-AP reported on Aug. 16, 2006, that the company
registered a widening shareholders' deficit, from a shortfall of
SGD1.21 million as of December 31, 2005, to a deficit of
SGD1.88 million as of June 30, 2006.
The company's total assets as of June 30, 2006, stood at
SGD17.62 million, while the total liabilities figure was at
SGD19.50 million. The company has SGD10.39 million of secured
loans repayable within in one year, but current assets stands at
SGD7.23 million.
FALMAC LIMITED: Taps Cheng Ji Jiang as Non-Executive Chairman
-------------------------------------------------------------
Falmac Limited unveiled that, Fei Xue Jun, who is currently the
company's Executive Chairman, has stepped down from his position
due to health reasons. However, Mr. Fei will continue to be the
company's Executive Director.
Cheng Ji Jiang was therefore appointed to replace Mr. Fei as the
company's non-Executive Chairman.
About Falmac Ltd.
Headquartered in Singapore, Falmac Limited manufactures and
trades knitting machines and related precision parts and
components, as well as cotton yarn.
A report by the Troubled Company Reporter - Asia Pacific on
July 8, 2004, stated that the company has entered into these
definitive agreements in relation to the company's restructuring
on July 6, 2004:
(1) Restructuring Deed with Ho Liong Fen, Falmac
Investment Holdings Pte Ltd, and the creditor banks
of the Company.
(2) Shareholder's Loan Agreement with Sino Equity.
(3) Strategic Subscription Agreement with Sino Equity.
Moreover, the TCR-AP reported on Aug. 16, 2006, that the company
registered a widening shareholders' deficit, from a shortfall of
SGD1.21 million as of December 31, 2005, to a deficit of
SGD1.88 million as of June 30, 2006.
The company's total assets as of June 30, 2006, stood at
SGD17.62 million, while the total liabilities figure was at
SGD19.50 million. The company has SGD10.39 million of secured
loans repayable within in one year, but current assets stands at
SGD7.23 million.
SCOTTISH RE: Earns US$102.7 Million in Second Quarter 2007
----------------------------------------------------------
Scottish Re Group Limited disclosed net income of US$102.7
million for the second quarter of 2007, compared to a net loss
of US$121.6 million in 2006, after a five day extension
resulting from last week's Form 12b-25 filing.
The company reported that net income available to ordinary
shareholders for the three months ended June 30, 2007 was
US$99.5 million as compared to a net loss available to ordinary
shareholders of US$123.9 million for the prior year period.
Net operating earnings available to ordinary shareholders for
the three months ended June 30, 2007 was US$98.2 million as
compared to a net operating loss of US$130.3 million for the
prior year period.
Included in net income available to ordinary shareholders and
net operating earnings for the three months ended June 30, 2007
is a significant one-time tax benefit. This benefit resulted
from the interaction between the release of a previously
recorded valuation allowance following the redomestication of
Orkney Re, Inc. and Section 382 of the Internal Revenue Code
restrictions on the future deduction of net operating losses
incurred prior to the change-in-control.
Excluding the one-time tax benefit, the company reported a pre-
tax operating loss of US$52.9 million for the three months ended
June 30, 2007 as compared to a pre-tax operating loss of US$28.5
million for the prior year period. The pre-tax operating loss
increased over the prior year period primarily due to expenses
incurred in the current quarter related to the change-in-
control. As in the first quarter of 2007, the company continues
to report pre-tax operating losses due to the impact our
underlying GAAP valuation models have on profit emergence in our
North America traditional life reinsurance business, the impact
of our current financial strength ratings on the level of new
business production and collateral financing costs, and the
costs of penetrating certain international markets.
Despite the second quarter pre-tax operating loss, we made
significant progress on several fronts. New business production
of US$5.8 billion in our North America segment was higher than
planned and, despite our financial strength ratings, the company
won a number of new treaties and incurred no treaty recaptures.
Mortality experience in our North America segment was favorable
to plan for the second consecutive quarter. The company also
exited our Middle Eastern business through a retrocession
arrangement with Arab Insurance Group because that business did
not meet our strategic objectives. Additionally, the company
initiated the first phase of our restructuring program. The
company incurred US$20.3 million of restructuring expenses
during the current quarter and expect to incur an additional
US$6.0 million of restructuring expenses in the second half of
2007.
Paul Goldean, Chief Executive Officer of Scottish Re Group
Limited, commented, "Following the completion of the equity
investment transaction with affiliates of MassMutual Capital
Partners and Cerberus Capital Management on May 7, 2007, we have
taken the first steps towards re-establishing our position as a
leading global life reinsurance company. We initiated a series
of process improvement initiatives across the Company focused on
strengthening our financial, risk management and operational
controls."
"Our new Board of Directors was elected and met earlier this
month. During this meeting, I resigned from the Board of
Directors and George Zippel, our incoming Chief Executive
Officer effective tomorrow, was elected to the Board. As
planned, a number of key executives have left the organization.
We are actively recruiting their replacements and expect to make
further organizational changes in the coming quarter."
Mr. Goldean concluded, "We have also undertaken a detailed
review of our non-prime investment exposure which includes
US$2.1 billion of subprime residential Asset Backed Securities
and an additional US$1.0 billion of Alt-A Residential Mortgage
Backed Securities. We are working actively with our third party
investment managers to further evaluate and proactively manage
our subprime and Alt-A exposures. Additional disclosure of our
subprime and Alt-A exposures have been made available in our
Form 10-Q for the three months ended June 30, 2007."
Other Financial Highlights
Total revenues for the three months ended June 30, 2007,
increased 3% to US$612.7 million from US$593.6 million for the
prior year period. Excluding realized gains and losses and the
change in value of embedded derivatives, total revenues for the
three months ended June 30, 2007, increased 2% to US$611.4
million from US$597.6 million for the prior year period.
Total benefits and expenses increased 6% to US$664.3 million for
the three months ended June 30, 2007 from US$626.0 million for
the prior year period. Operating expenses increased 52% to
US$59.8 million for the three months ended June 30, 2007, from
US$39.4 million for the prior year period.
Income tax benefit for the three months ended June 30, 2007, was
US$154.3 million compared to income tax expense of US$89.0
million for the prior year period. In the second quarter of
2007, our valuation allowance decreased by approximately
US$203.6 million to US$74.0 million. A majority of the
valuation release is attributable to the expected utilization of
net operating loss carryforwards at the U.S. Consolidated Tax
Life Group to offset significant current year taxable income
generated from the redomestication of Orkney Re, Inc. from South
Carolina to Delaware, which occurred in May 2007. The net
operating loss carryforwards were previously written off via a
valuation allowance, thus the utilization of these results in an
offsetting valuation allowance release.
About Scottish Re
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
* * *
As reported on June 8, 2007, Fitch Ratings has upgraded Scottish
Re Group Ltd.'s (NYSE: SCT) Issuer Default Rating to 'BB-' from
'B+' and the Insurer Financial Strength ratings of its primary
operating subsidiaries to 'BBB-' from 'BB+'. Fitch has removed
the ratings from watch positive and assigned a stable outlook.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2006, Moody's Investors Service disclosed that it
continues to review the ratings of Scottish Re Group Ltd. with
direction uncertain following the announcement by the company
that it has entered into an agreement to sell a majority stake
to MassMutual Capital Partners LLC, a member of the MassMutual
Financial Group and Cerberus Capital Management, L.P., a private
investment firm.
Moody's said the continuing review affects the debt rating of
Scottish Re (senior unsecured at Ba3), as well as the Baa3
insurance financial strength ratings of the company's core
insurance subsidiaries, Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. The
uncertain direction of the review indicates the possibility that
Scottish Re's ratings could be upgraded, downgraded, or
confirmed depending on future developments at Scottish Re.
These ratings continue on review with direction uncertain:
Scottish Re Group Limited
-- senior unsecured debt of Ba3;
-- senior unsecured shelf of (P)Ba3; subordinate shelf of
(P)B1;
-- junior subordinate shelf of (P)B1;
-- preferred stock of B2; and
-- preferred stock shelf of (P)B2.
Scottish Holdings Statutory Trust II
-- preferred stock shelf of (P)B1
Scottish Holdings Statutory Trust III
-- preferred stock shelf of (P)B1
Scottish Annuity & Life Insurance Co (Cayman) Ltd.
-- insurance financial strength of Baa3
Premium Asset Trust Series 2004-4
-- senior secured debt of Baa3 (based on IFS of SALIC)
Scottish Re (U.S.), Inc.
-- insurance financial strength of Baa3
Stingray Pass-Through Certificates
-- senior secured debt of Baa3 (based on IFS rating of
SALIC)
On Sept. 5, 2006, Moody's changed the direction of review for
Scottish Re's ratings to uncertain from possible downgrade.
TARGUS GROUP: S&P Lowers Corp. Credit Rating to B-
--------------------------------------------------
Standard & Poor's ratings services has lowered its corporate
credit rating on Anaheim, California- based Targus Group
International Inc. to 'B-' from 'B'. In addition, S&P's
affirmed the 'B' ratings on Targus' US$40 million senior secured
revolving credit facility due 2011 and US$190 million term loan
B due 2012; the recovery ratings remain '2', indicating the
expectation of substantial (70%-90%) recovery in the event of a
payment default.
S&P's has also affirmed the 'CCC+' rating on the company's US$85
million second-lien term loan maturing in 2013; the recovery
rating remains '5', indicating the expectation of modest
(10%-30%) recovery in the event of a payment default.
S&P's has removed all ratings from CreditWatch with negative
implications, where they were placed on May 23, 2007, reflecting
our concerns about weaker-than-expected working capital
management and tight covenant cushion. The outlook is negative.
Targus has about US$300 million in outstanding debt on its
balance sheet, including US$31.2 million payment-in-kind notes
maturing 2013.
"The downgrade reflects the company's weak cash flow generation
over the last 12 months, very highly leveraged capital
structure, and expected tight cushion on its bank loan financial
covenants over the coming quarters," said S&P's credit analyst
Christopher Johnson.
The ratings on Targus reflect the company's very highly
leveraged capital structure; the highly competitive operating
environment and price-sensitive nature of the laptop computer
case and accessory business; technology risk within the
accessories product line; some customer concentration across the
three distribution channels, and vulnerability to weak economic
and retail environments.
Targus Group International Inc. -- http://www.targus.com/--
invented the notebook case and continues to advance the mobile
accessories category with innovative and relevant solutions for
today's mobile lifestyle. Targus products enhance productivity,
connectivity, and security, liberating users to work in any and
all environments with the utmost convenience and comfort.
Founded in 1983, Targus headquarters are located in Anaheim,
California, with offices worldwide and distribution agreements
in more than 100 countries.
Targus has operations in the Asia Pacific, specifically in
Australia & New Zealand, China, Hong Kong, Japan, Korea, and
Singapore.
===============
T H A I L A N D
===============
THAI PROPERTY: Wants Financials Filing Date Extended to Sept. 20
----------------------------------------------------------------
Thai Property PCL seeks to extend until September 20, 2007, the
deadline for it to submit its financial statements for the
quarter ended June 30, 2007.
TPROP said in a disclosure with the Stock Exchange of Thailand
that it still needs to audit the account between the company and
the Great China Millennium (Thailand) Co. Ltd. regarding a
THB300-million investment by TPROP in the preferred shares of
Great China. To do so, it needs Great China's financial
statements, which Great China said is still being prepared.
Thai Property Public Company Limited was formerly known as
Rattana Real Estate Public Company Limited. The company
develops real estate for sale and rental including residential,
commercial, and office buildings.
Going Concern Doubt
After reviewing the company's financial statements for the first
quarter of 2007, Narong Puntawong at Ernst & Young Office Ltd.
raised doubt on the company's ability to continue as a going
concern. Mr. Narong pointed out the uncertainty in the ability
of the company's new investor, Great China Millennium (Thailand)
Co. Ltd., to repay to the Company the overdue remuneration of
THB291 million under the reciprocal agreement. Mr. Narong also
drew attention to the new investor's late progress with
construction, which may affect the real estate development
project for sales of the Company.
The company currently carries the Stock Exchange of Thailand's
SP sign for suspension of trading due to its inability to timely
submit its financial statements for the second quarter of 2007.
TRUE CORP: Appoints Norbert Vay and Jens B. Bessai as Directors
---------------------------------------------------------------
True Corp. PCL's Board of Directors has approved the appointment
of Norbert Vay and Jens B. Bessai as directors during the
Board's meeting on August 17.
Messrs. Vay and Bessai were elected as replacements for Messrs.
Heinrich Heims and Andreas Klocke, who have resigned.
Mr. Bessai was also appointed as a member of the company's
Finance, Corporate Governance and Independent Committees.
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 company carries Standard & Poor's Ratings Services B+
corporate credit rating. The outlook is negative.
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.
TMB BANK: Extends IT Service Pact with DBS Bank for Three Months
----------------------------------------------------------------
TMB Bank PCL has extended for another three months its agreement
with DBS Bank Ltd. for the provision of IT software system
services.
The system was used in business operations by DBS Thai Danu Bank
PCL prior to its merger with TMB in 2004, after which the
agreement was assigned to TMB for business continuation. The
earlier term was effective July 1, 2006 until June 30, 2007.
According to TMB's disclosure with the Stock Exchange of
Thailand, the bank will extend the agreement by another one
month until October 31, 2007.
DBS Bank is a major shareholder in TMB, holding about 16.07% of
TMB's shareholdings.
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 July 6, 2007, Standard & Poor's Ratings Services gave TMB
Bank's US$200-million hybrid Tier 1 securities a 'BB' rating.
The TCR-AP also reported on June 13, 2007 that Standard & Poor's
Ratings Services has raised the outlook on TMB Bank PCL's debt
rating from negative to stable.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
October 16-19, 2007
Turnaround Management Association - Australia
TMA 2007 Annual Convention
Boston Marriott Copley Place, Boston, MA, USA
e-mail: livaldi@turnaround.org
November 14, 2007
Turnaround Management Association
TMA Australia 4th Annual Conference and Gala Dinner
Hilton, Sydney, Australia
Web site: http://www.turnaround.org/
November 29, 2007
Turnaround Management Association
Special Speaker
Hilton, Sydney, Australia
Web site: http://www.turnaround.org/
March 25-29, 2008
Turnaround Management Association - Australia
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, FL, USA
e-mail: livaldi@turnaround.org
October 28-31, 2008
Turnaround Management Association - Australia
TMA 2008 Annual Convention
New Orleans Marriott, New Orleans, LA, USA
e-mail: livaldi@turnaround.org
TBA 2008
INSOL
Annual Pan Pacific Rim Conference
Shanghai, China
Web site: http://www.insol.org/
June 21-24, 2009
INSOL
8th International World Congress
TBA
Web site: http://www.insol.org/
October 5-9, 2009
Turnaround Management Association - Australia
TMA 2009 Annual Convention
JW Marriott Desert Ridge, Phoenix, AZ, USA
e-mail: livaldi@turnaround.org
October 4-8, 2010
Turnaround Management Association - Australia
TMA 2010 Annual Convention
JW Marriot Grande Lakes, Orlando, FL, USA
e-mail: livaldi@turnaround.org
Beard Audio Conferences
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Telephone: 240-629-3300
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Audio Conferences CD
Beard Audio Conferences
Distressed Real Estate under BAPCPA
Audio Conference Recording
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Beard Audio Conferences
Changes to Cross-Border Insolvencies
Audio Conference Recording
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Beard Audio Conferences
Healthcare Bankruptcy Reforms
Audio Conference Recording
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Beard Audio Conferences
Calpine's Chapter 11 Filing
Audio Conference Recording
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Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
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Beard Audio Conferences
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
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Beard Audio Conferences
Employee Benefits and Executive Compensation
under the New Code
Audio Conference Recording
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Beard Audio Conferences
Dana's Chapter 11 Filing
Audio Conference Recording
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Reverse Mergers-the New IPO?
Audio Conference Recording
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Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
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High-Yield Opportunities in Distressed Investing
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Privacy Rights, Protections & Pitfalls in Bankruptcy
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When Tenants File -- A Landlord's BAPCPA Survival Guide
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Clash of the Titans -- Bankruptcy vs. IP Rights
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Distressed Market Opportunities
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Homestead Exemptions under BAPCPA
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BAPCPA One Year On: Lessons Learned and Outlook
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Surviving the Digital Deluge: Best Practices in
E-Discovery and Records Management for Bankruptcy
Practitioners and Litigators
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Deepening Insolvency - Widening Controversy: Current Risks,
Latest Decisions
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KERPs and Bonuses under BAPCPA
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Diagnosing Problems in Troubled Companies
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Equitable Subordination and Recharacterization
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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-Dy, Frauline Abangan, and
Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***