/raid1/www/Hosts/bankrupt/TCRAP_Public/071226.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, December 26, 2007, Vol. 10, No. 254
Headlines
A U S T R A L I A
CHALLENGER FINANCIAL: S&P Assigns BB Rating on Class C Notes
INTERNATIONAL POWER: Fitch Affirms BB Issuer Default Rating
LAFAYETTE MINING: Philippines Units Seek Court Protection
STADIUM AUSTRALIA: ANZ Obtains Naming Rights for AU$31.5 Million
* Moody's Says Negative Australian Corporate Trend to Persist
C H I N A , H O N G K O N G & T A I W A N
BEANEAR LIMITED: Members to Receive Wind-Up Report on Jan. 18
CAMTEL COMPANY: Liquidator to Present Wind-Up Report on Jan. 18
CHIA TAI CONSUMER PRODUCTS: Members to Receive Report on Jan. 18
CHIA TAI HENAN INVESTMENT: Liquidator to Present Wind-Up Report
CHIA TAI INTERNATIONAL: Members to Receive Wind-Up Report
CHIA TAI SOYBEAN: Members to Receive Wind-Up Report on Jan. 18
CHIA TAI TELECOMUNICATION: Liquidator to Present Wind-Up Report
CITIC PACIFIC: S&P Affirms 'BB+' Corporate Credit Rating
CITY TELECOM: S&P Raises Corporate Credit Rating to B+
C.P. FOODS: Liquidator to Present Wind-Up Report on Jan. 18
THE WAH FUNG: Members’ Final General Meeting Set for Jan. 18
I N D I A
AGILENT TECH: Reports Biggest Instrument Sale in India to Date
IFCI LTD: Invites Bids to Value & Buy Stake in Unlisted Firms
ITI LTD: Ties Up With U.S.-Based Alphion Corp.
KINETIC ENGINEERING: To Raise as Much as US$18MM in FCCB Issue
QUEBECOR WORLD: Moody's Cuts Corporate Family Rating to Caa2
I N D O N E S I A
ALCATEL-LUCENT SA: Sells Draka Comteq Stake for EUR209 Million
BANK INTERNASIONAL: Bank Indonesia Gets Compliance from Temasek
BANK LIPPO: Bank Indonesia Gets Compliance from Khazanah
BANK MANDIRI: Aims to Increase Micro Loans
BANK MANDIRI: Signs Business Deal With Lippo Cikarang
EXCELCOMINDO PRATAMA: Gets IDR4-Million Loan from Bank Mandiri
GOODYEAR TIRE: Jean-Claude Kihn Replaces Joseph Gingo as Sr. VP
NORTEL NETWORKS: Sues Vonage Holdings for Patent Infringement
PERUSAHAAN GAS: S&P Raises Corporate Credit Ratings to 'BB-'
REXAM PLC: Weak US Dollar to Impact 2007 Second Half Results
J A P A N
IHI CORP: President Sees Strong Recovery Next Fiscal Year
NIS GROUP: TPG Alliance Cues S&P to Put Ratings on CreditWatch
NUANCE COMM: Prices Public Offering of 7,000,000 Common Shares
SAPPORO HOLDINGS: To Raise Shipment & Beer Prices in FY2008
* Moody's Report Say Japanese Firms Retain Financial Profiles
* Japanese Railroads' Outlook Moderately Positive, Moody's Says
K O R E A
ACTUANT CORP: Earns US$27.4 Mil. in First Quarter Ended Nov. 30
DURA AUTO: Resolves Magna Objections to Reorganization Plan
DURA AUTO: Wants to Pay Lenders US$358K to Ignore Violations
UAL CORP: Names New VP of Base Maintenance for United Services
M A L A Y S I A
AMBANK BHD: Fitch Maintains 'BB' Rating on Hybrid Securities
VERIFONE HOLDINGS: Special Interest to Accrue on 1.375% Notes
N E W Z E A L A N D
CLEAR CHANNEL: Fitch to Cut IDR to B Upon Transaction Closing
CLEAR CHANNEL: S&P Cuts Rating on US$6.32 Billion Notes to B-
PSIS LTD: S&P Assigns 'BB+/B' Issuer Credit Ratings
P H I L I P P I N E S
IPVG CORP: Links Up With GMA to Form Online Gaming Joint Venture
METROPOLITAN BANK: Gets Retail Management Award for CMR Efforts
PHILCOMSAT: Poblador-Locsin Group Protests Rival's Takeover
PHIL. LONG DISTANCE: Wants to Clear Up Foreign Ownership Issues
SAN MIGUEL: Enters New Packaging Supply Deal with Hong Kong Unit
S I N G A P O R E
CHEMTURA CORP: Moody's Reviews Ratings for Possible Downgrade
CHEMTURA CORP: S&P Places BB+ Corp. Rating on Watch Developing
INTERMEC TECH: Names David Jones as Global Services Vice Pres.
SYNIVERSE TECHNOLOGIES: Completes BSG Wireless Acquisition
T H A I L A N D
TOTAL ACCESS: Eyes Major Investments in 2008
TRUE CORP: Moody's Affirms B1 Corporate Family & Bond Ratings
TRUE MOVE: Moody's Affirms B1 Corporate Family & Bond Ratings
* Upcoming Meetings, Conferences and Seminars
- - - - - - - -
=================
A U S T R A L I A
=================
CHALLENGER FINANCIAL: S&P Assigns BB Rating on Class C Notes
------------------------------------------------------------
Standard & Poor's Ratings Services assigned ratings to the
residential mortgage-backed securities (RMBS) to be issued by
Perpetual Trustee Victoria Ltd. as trustee for Challenger
Millennium Warehouse H Trust.
The complete ratings are as follows:
Class Rating
A AA-
B BBB
C BB
D Unrated
This transaction has four tranches of notes. The Class A, Class
B and Class C notes have been rated. The fourth tranche, Class
D, is unrated.
The ratings assigned largely reflect the:
-- Credit quality of the underlying mortgage loans, and the
credit support provided, including lenders mortgage
insurance and subordinated notes. It should be noted that
the pool includes both mortgage insured and non-mortgage
insured loans;
-- Asset level liquidity support; and
-- Yield sufficiency.
A full rating report for this transaction will not be published,
at the request of the issuer.
Challenger Financial Services Group Limited --
http://www.challenger.com.au -- is a financial services
company. The Company, along with its subsidiaries, is
principally engaged in the provision of financial services, in
particular mortgage management, which involves commercial and
residential lending and securitization business; funds
management, which funds management business; asset management,
which structures and manages assets to generate long term income
streams, and financial planning, which involves financial
planning and funds administration business. In September 2007,
the Company acquired Choice Aggregation Services, including
Choice Home Loans, a mortgage aggregator/broker in the
Australian market. Challenger has also acquired a 19% stake in
FAST, a national mortgage aggregator headquartered in Western
Australia.
INTERNATIONAL POWER: Fitch Affirms BB Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has affirmed International Power plc's Long-term
Issuer Default Rating at 'BB' with Stable Outlook.
IPR is a UK holding company for a portfolio of international
power assets.
The ratings reflect IPR's relatively conservative debt levels
and management's prudent approach to expansion of the business
and to financing. Unlike several of its peers, IPR has not
aggressively pursued double leverage - the use of holding
company debt to fund the "equity" in subsidiaries, associates or
joint ventures which are, themselves, predominantly debt-
funded.
The Stable Outlook reflects Fitch's expectation that management
will maintain its prudent acquisition and financing strategy.
Since the last credit review, IPR has enlarged its engagement in
renewable energy sources with its acquisition of Levanto,
Maestrale and Schkortleben wind farm portfolios. Further
acquisitions included the oil-fired OCGT Indian Queens peaking
plant in Cornwall, England and the purchase of the 50% remaining
stake in a partnership with Energy Australia. IPR also
strengthened its cooperation with Mitsui by creating a common
ownership platform for its UK assets in June 2007.
Debt finance at the subsidiaries is of non-recourse nature to
IPR and almost all of the group's assets are project-financed.
For groups financed in this manner, Fitch focuses on debt and
cash-flows at the holding company rather than for the
consolidated group, since the holding company has limited access
to the subsidiaries' assets other than the dividends and has no,
or limited, liability associated with the subsidiaries' debts.
About International Power
International Power plc --
http://www.internationalpowerplc.co... -- is a United Kingdom-
based public limited company. The principal activity of the
Company is to act as the holding company for a group of
companies and a number of associated companies and joint
ventures. Its principal activities are the generation and sale
of electricity. International Power's primary business is the
generation of electricity, and related district heating and
desalination. It has interests in 32,000 megawatt (gross) of
power generating capacity in 20 countries. The Company's
business is focused in five core regions: North America, Europe,
Middle East, Australia and Asia. On January 22, 2006, along
with its partners Suez Energy International of France and
Sumitomo Corporation of Japan, it signed an agreement to acquire
the Hidd independent power and water project in Bahrain, 40%
owned by the Company, 30% by Suez Energy International and 30%
by Sumitomo Corporation. In May 2006, it acquired a 30% stake
in Oxford Power Holdings Ltd.
LAFAYETTE MINING: Philippines Units Seek Court Protection
---------------------------------------------------------
After going into voluntary administration, Lafayette Mining
Ltd.'s Philippine units are seeking court protection from
creditors to continue normal operations in its Rapu-Rapu
project, reports Agence France-Presse.
James Regan and Carmel Crimmins of Reuters relates that Carlos
Dominguez, chairman of Lafayette's Philippine operations, said
the mine and its 1,000 strong workforce would continue working
until the Australia-based administrators would tell them
otherwise and as long as the mine is still profitable.
The Rapu-Rapu project is located 350 km. southeast of Manila,
states Reuters.
Tom Green, executive director of risk consultancy Pacific
Strategies and Assessments, told Reuters, "Mining companies
always have lessons learned and cautionary tales and Lafayette
always comes up."
Reuters relates that Lafayette was the first foreign company to
operate a mine in the Philippines after a law granting full
foreign ownership of local projects was upheld in 2004.
The Troubled Company Reporter-Asia Pacific reported on Oct. 25,
2007, that the Rapu-Rapu project has been forecasted to generate
revenues of AU$350 million a year from annual production of
10,000 tonnes of copper in concentrate, 14,000 tonnes of zinc in
concentrate, 50,000 ounces of gold and 600,000 ounces of silver.
About Lafayette
Lafayette Mining Philippines, Incorporated, is a subsidiary of
Australian firm Lafayette Mining, Incorporated --
http://www.lafayettemining.com/-- which has been listed on the
Australian Stock Exchange since August 1997. Lafayette
Philippines is currently developing a polymetallic project
involving copper, gold, zinc and silver on the Island of Rapu-
Rapu in the Philippines.
TCR-AP's "Large Companies with Insolvent Balance Sheets" column
on December 14, 2007, reflected Lafayette Mining Limited as
having US$190.86 million equity deficit, on total assets of
US$105.24 million.
STADIUM AUSTRALIA: ANZ Obtains Naming Rights for AU$31.5 Million
----------------------------------------------------------------
Stadium Australia Group confirmed that it will have a new name
and a new logo from January 1, 2008, after ANZ Bank secured the
naming rights of the sports and entertainment venue for AU$31.5
million.
The Australian Associated Press reports that the stadium, which
is currently known as Telstra Stadium, will be renamed as ANZ
Stadium, after Telstra cut short its nine-and-a-half-year deal
by two years.
According to the AAP, an investment trust owned by ANZ, the
Diversified Infrastructure Trust, acquired the stadium in April
2007.
The AAP relates that ANZ will pay AU$4.5 million annually for
seven years, which is AU$1.5 million more than what Telstra
currently forks out.
SAG Managing Director and CEO Ken Edwards said that the
partnership with ANZ is a great step for the company.
The company, in a statement, claims that ANZ's AU$31.5 million
sponsorship will be Australia's biggest stadium naming rights
agreement ever seen in sports and entertainment history.
About Stadium Australia
Stadium Australia Group -– http://www.telstrastadium.com.au--
owns and operates Telstra Stadium, which comprise Stadium
Australia Trust (SAT) and Stadium Australia Management Limited
(SAM). SAG's principal activities include the operation,
management and maintenance of Telstra Stadium. The Telstra
Stadium has a seating capacity of 80,000 approximately. During
the year ended December 31, 2005, the Company hosted 27 events.
In 2005, it has rebranded Telstra Stadium as Australia's Home
Ground. During the same period, SAG hosted Australia's three
national football teams, the Wallabies, the Kangaroos and the
Socceroos. During 2005, the Company has signed hiring agreements
with Australian Rugby Union, NSW Rugby Union, Bulldogs and South
Sydney Rabbitohs. In January 2007, Stadium Investments Pty
Limited acquired a relevant interest in more than 50% of the
stapled securities of SAG.
The Troubled Company Reporter-Asia Pacific, on April 20, 2007,
included in its "Large Companies With Insolvent Balance Sheets"
Column Stadium Australia Group, with US$137.64 million in assets
and US$47.57 million in stockholders' equity deficit.
* Moody's Says Negative Australian Corporate Trend to Persist
-------------------------------------------------------------
Moody's Investors Service says Australian corporates in 2007
showed a clear negative credit trend -- driven by M&A activities
and the resultant aggressive use of debt -- and this situation
is likely to persist into 2008.
At present, 20% of the Australian/New Zealand portfolio are
either on review for downgrade or on negative outlook, compared
to 6% with positive indications.
"Due to the fallout from the US sub-prime crisis, Australian
rated companies -- when compared with Asian corporates -- face
more exposures as they, as well as the banking sector, are more
reliant on capital market funding," says Clara Lau, a Moody's
SVP and Chief Credit Officer.
The report reviews credit conditions throughout Asia Pacific
(ex-Japan) in 2007 and the outlook for 2008.
Going into 2008, the disruption in the cross border debt markets
caused by the sub-prime crisis and the contagion effects on the
rest of the capital markets, including equity markets, will
remain a major concern, the report says in reference to
Australia and the Asia Pacific region overall. Liquidity
management remains a key credit risk and will need to be
monitored closely.
"At present, most Australian banks and corporates -- in this
context -- do not seem to have major issues rolling over CPs,
though at higher costs; but potential challenges are anticipated
if the sub-prime situation worsens," says Lau.
Moreover, an economic slowdown in the US, depending on its
severity, could, at a minimum, affect issuers that generate
revenue from the US, like technology and trading companies, some
Australian consumer products companies and listed property
trusts, the report says.
"In comparison to the relative balance and stability noted in
Moody's Asian portfolio, Australian non-financial rated
corporates displayed a clear negative trend in 2007," says Lau,
adding, "Negative rating actions dominated positive rating
actions by a factor of four."
The negative trend in Austalia was mainly driven by M&A
activities, and mostly felt in the utilities and metals and
mining sectors.
================================================
C H I N A , H O N G K O N G & T A I W A N
================================================
BEANEAR LIMITED: Members to Receive Wind-Up Report on Jan. 18
-------------------------------------------------------------
Members of Bearner Limited will have their final general meeting
on January 18, 2008, at 9:00 a.m., to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
CAMTEL COMPANY: Liquidator to Present Wind-Up Report on Jan. 18
---------------------------------------------------------------
Members of Camtel Company Limited will have their final general
meeting on January 18, 2008, at 15:40 p.m., to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
CHIA TAI CONSUMER PRODUCTS: Members to Receive Report on Jan. 18
----------------------------------------------------------------
Members of Chia Tai Consumer Products Company Limited will have
their final general meeting on January 18, 2008, at 11:20 a.m.,
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
CHIA TAI HENAN INVESTMENT: Liquidator to Present Wind-Up Report
---------------------------------------------------------------
Members of Chia Tai Henan Investment Company Limited will have
their final general meeting on January 18, 2008, at 12:20 p.m.,
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
CHIA TAI INTERNATIONAL: Members to Receive Wind-Up Report
---------------------------------------------------------
Members of Chia Tai International Trading Limited will have
their final general meeting on January 18, 2008, at 12:40 p.m.,
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
CHIA TAI SOYBEAN: Members to Receive Wind-Up Report on Jan. 18
--------------------------------------------------------------
Members of Chia Tai Soybean Oil Extraction Company Limited will
have their final general meeting on January 18, 2008, at 14:20
p.m., to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
CHIA TAI TELECOMUNICATION: Liquidator to Present Wind-Up Report
---------------------------------------------------------------
Members of Chia Tai Telecommunication Company Limited will have
their final general meeting on January 18, 2008, at 14:40 p.m.,
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
CITIC PACIFIC: S&P Affirms 'BB+' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services, on Dec. 24, 2007, affirmed
its 'BB+' corporate credit rating on CITIC Pacific Ltd. (CITIC
Pacific). The outlook is stable. At the same time, Standard &
Poor's affirmed the 'BB+' issue rating on senior unsecured notes
issued by CITIC Pacific Finance (2001) Ltd. and guaranteed by
CITIC Pacific.
"The rating affirmations recognize the group's diversified
operations and the strong asset value of many investments, which
support its financial flexibility and liquidity," said Standard
& Poor's credit analyst Lawrence Lu.
While elements of CITIC Pacific's business profile are sound,
the rating affirmations recognize the company's weak financial
metrics and its shift in focus toward two core businesses:
property and steel. These segments are exposed to high
underlying industry risks and are susceptible to volatile
operating conditions. In addition, the benefits of operating
across a number of separate businesses are offset by the ongoing
streamlining of the group's operations toward core businesses,
combined with the company's opaque strategic commitment to other
business activities and investments.
CITIC Pacific's recent operating results continued to improve,
although bottom line profits continue to be volatile and were
materially affected by nonrecurring items relating to the
ongoing restructuring of many of its businesses. Significant
development and expansion of its core businesses -- namely
property, steel, and mining -- and the high prospect of further
business and investment divestment also moderate the visibility
of recurring revenue generation and limit clarity about the
group's longer-term debt requirements.
CITY TELECOM: S&P Raises Corporate Credit Rating to B+
------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on City Telecom (H.K.) Ltd. (CTI) to
'B+' from 'B'. The outlook is stable. At the same time, Standard
& Poor's also raised its issue rating on CTI's US$125 million
senior unsecured notes due 2015 to 'B+' from 'B'.
"The rating actions reflect CTI's improved financial and
operating performances in fiscal 2007, driven by a change in
business strategy to capture revenue market share instead of
subscriber market share," said Standard & Poor's credit analyst
Lawrence Lu. The rating actions also reflect the company's
increased reliance on a self-built network rather than third-
party capacity; and its cost containment program, implemented
during fiscal 2006.
The rating on CTI also reflects the company's small size and
weak market position in Hong Kong's highly competitive fixed-
line telecommunications industry, and its aggressive financial
position. These weaknesses are balanced by its sound liquidity,
modern network which is attractive to customers and would take a
few years to replicate by competitors, and efficient cost
structure.
CTI's total subscriber base in the fixed telecom network
services (FTNS) segment increased 11% to 683,000 in fiscal 2007.
Most new and renewing subscribers now have standard 24-month
contracts, bringing transparency to the company's order book,
which is also supportive to cash flow stability.
CTI derives significant competitive advantages from its low-cost
and fast, modern Ethernet network, which covers about 1.4
million households in Hong Kong (about two-thirds of total
coverage) The company aims to increase its network coverage to
about 2 million households by spending about Hong Kong dollar
(HK$) 850 million over the next three years. CTI is the only new
entrant with its own end-to-end network. This gives it a
potential edge over other new entrants, which are currently more
reliant on the existing network of incumbent operator PCCW-HKT
Telephone Ltd. (PCCW-HKT; BBB/Positive/--), to which mandatory
access will be removed by June 2008.
C.P. FOODS: Liquidator to Present Wind-Up Report on Jan. 18
-----------------------------------------------------------
Members of C.P. Foods Company Limited will have their final
general meeting on January 18, 2008, at 10:00 a.m., to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central, Hong Kong
THE WAH FUNG: Members’ Final General Meeting Set for Jan. 18
------------------------------------------------------------
Members of The Wah Fung Productions Limited will meet on
January 18, 2008, at 10:00 a.m., to hear the liquidator's report
on the company's wind-up proceedings and property disposal.
The meeting will be held at:
Chinachem Century Tower, 31st Floor
178 Gloucester Road
Wanchai, Hong Kong
=========
I N D I A
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AGILENT TECH: Reports Biggest Instrument Sale in India to Date
--------------------------------------------------------------
Agilent Technologies Inc. has disclosed its biggest sale to date
of analytical instrumentation in India. The sale includes more
than 50 instruments, mainly Rapid Resolution Liquid
Chromatography systems, plus gas chromatography systems and
headspace samplers to Orchid Chemicals & Pharmaceuticals Ltd.,
one of the top 15 companies in the Indian pharmaceutical
industry.
In addition to being Agilent's biggest sale in India, this is
also Orchid's largest order from any chromatography
manufacturer.
"We were interested in the RRLC system when Agilent introduced
it to us," said Dr. P.Y. Naidu, Orchid vice president, QC and
R&D, "and subsequent demonstrations at our site proved its
worthiness. Instrument reliability is a factor in this
decision, along with our trust in Agilent based on our long
association with district manager Mr. Gopala Krishnan. He
properly understood our requirements at each and every point,
and this helped guide our decision."
"This type of investment is based on much more than price," said
Sanjiv Dhar, Agilent country operations manager, India. "First,
the instruments must deliver consistently good results, year-in
and year-out. Second, they must easily integrate into existing
workflows. Third, they must be extremely reliable. We're
pleased that Orchid recognized these qualities in Agilent
products and support services in this highly competitive
environment."
The Agilent 1200 Series RRLC system provides up to 20 times
faster analysis and 60-percent higher resolution than
conventional HPLC, without sacrificing precision or sensitivity.
It is designed to provide the highest analysis speed and
resolution while keeping system pressure at a minimum. The
result is higher performance coupled with the robustness of
conventional HPLC.
Agilent is the clear global leader in gas chromatography, and
the new 7890A GC, which Orchid purchased, is the latest
generation of 40 years of innovation. It delivers advanced
separation capabilities, powerful productivity enhancements, and
real-time self-monitoring and diagnostic intelligence. Faster
oven cool-down and robust backflushing let users analyze more
samples in less time. Fifth-generation electronic pneumatics
control and digital electronics set a new standard for pressure
setpoint and retention time locking precision.
About Agilent Tech
Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/
-- is the world's premier measurement company and a technology
leader in communications, electronics, life sciences and
chemical analysis. The company's 19,000 employees serve
customers in more than 110 countries.
The company has operations in India, Argentina, Puerto Rico,
Bolivia, Paraguay, Venezuela, and Luxembourg, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 26, 2007, Moody's Investors Service has assigned a Ba1
rating to Agilent Technologies, Inc.'s proposed offering of
USUS$500 million senior notes due 2017 and affirmed its existing
ratings and stable outlook.
IFCI LTD: Invites Bids to Value & Buy Stake in Unlisted Firms
-------------------------------------------------------------
IFCI Ltd has invited bids from merchant bankers to value and buy
its shares in unlisted firms to enable the company to sell them,
various reports say. The move came after the finance firm
called off its plan to sell 26% of the company to what would
have been a strategic partner.
As previously reported by the Troubled Company Reporter-Asia
Pacific, IFCI cancelled the stake sale after its board of
directors rejected the financial proposal submitted by the
consortium of Sterlite Industries and Morgan Stanley and Co,
saying that the conditional offer is unacceptable.
The Economic Times, citing unnamed sources close to the
development, said that the Sterlite consortium offered a INR107-
per-share minimum price at which institutional shareholders will
convert their debt into equity. Management control was the
reason behind deal being called off, moneycontrol.com quoted
CNBC-TV18 in a report. Thomson Financial News, citing the
Times, reported that the Sterlite-led consortium was seeking a
guarantee from IFCI to ensure that any further dilution in IFCI
stake be undertaken with their consent, which was unacceptable
to IFCI.
Last week, right after the sale was called off, the press quoted
an unnamed IFCI official as saying that the finance institution
has identified 100 companies where it would like to sell off its
stake. Merchant bankers and other interested parties reportedly
have until January 10, 2008, to submit their bids.
IFCI had over time acquired stake in many companies either
directly or in lieu of debt, the Press Trust of India cited its
source as saying.
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.
ITI LTD: Ties Up With U.S.-Based Alphion Corp.
----------------------------------------------
Alphion Corporation, a privately held company that develops,
manufactures and markets communication systems, sub-systems, and
integrated photonic components based on its proprietary QLight
technology, has struck an alliance with ITI Limited for the
manufacture and distribution of its family of GPON products.
The AOLT-4000 Optical Line Terminal (OLT) reflects the state-of-
the-art in GPON OLT equipment, with high-density 40 GPON ports
per shelf, ultra-fast 200 gigabit per second backplane, and 56
gigabit per second uplink capacity. The platform supports PON
architectures with path and equipment redundancy. The product
family includes Optical Network Terminals for single family
residences (AONT-100), small businesses (AONT-200), and multiple
dwelling units (AONT-300).
"This alliance with ITI Limited is an exciting step and Alphion
will be able to support ITI from our existing research,
development and customer support centers in India," commented
Dr. Bharat P. Dave, Alphion Chairman, President and CEO. "We
are looking forward to close cooperation with ITI Limited as we
begin addressing the needs for advanced FTTH networks in Asia."
"ITI will be the first Indian company to acquire GPON
technology-based FTTH products and will be manufacturing them at
our Rae Bareli Plant," says Shri S K Chatterjee, Chairman and
Managing Director of ITI. "The GPON equipment manufactured in
Rae Bareli, besides meeting the domestic market requirements,
also has potential for overseas sales."
The collaboration between Alphion and ITI strengthens both
parties, combining Alphion’s expertise in access technologies
with ITI’s manufacturing skills and presence in India. ITI is
acknowledged as the leading provider in India for turnkey
solutions in the telecommunications marketplace.
The Alphion AOLT-4000 and AONT-100/200/300 family were developed
in full compliance with the International Telecommunications
Union’s standard for FTTx equipment (ITU-T G.984). This ensures
that the Alphion product family meets the stringent carrier-
class requirements and interoperates with a broad spectrum of
other manufacturers’ GPON equipment.
ITI Limited -- http://www.itiltd-india.com/-- is a
telecom company, which manufactures a range of telecom
equipment, including switching products; transmission systems,
such as satellite communication systems, optical line
terminating equipments and digital microwave systems; access
products, such as fixed wireless local loop systems and digital
local loop carriers; terminal equipment, such as telephones,
integrated services digital network products and video
conferencing systems; microelectronic products and software;
information technology products and telecom products for the
defense sector, and other products, including solar power
systems and bank mechanizing products. It also provides value-
added services, such as shared hub very-small aperture terminal
services, and public mobile radio trunked services and
turnkey solutions. Its customers include The Department of
Telecommunications, defense, railways, oil sector and corporates
in India, and certain African and South Asian nations.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 23, 2007, Credit Analysis & Research Ltd. revised the
rating assigned to the 'L' series long term bond issue of ITI
Limited to CARE D (SO) [Single D (Structured Obligation)] from
CARE AAA (SO) [Triple A (Structured Obligation))] with Credit
Watch. The rating revision took into account the delay in the
interest payment of the above said bond issue.
The TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned
final National ratings of 'D(ind)(SO)' to ITI's INR550 million
'J-1' Series long-term bonds.
ITI has incurred losses for at least two consecutive years --
INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06. The
company is a sick company as per provisions of India's Sick
Industrial Companies Act 1985.
KINETIC ENGINEERING: To Raise as Much as US$18MM in FCCB Issue
--------------------------------------------------------------
The committee of Kinetic Engineering Ltd's board of directors at
its meeting on Dec. 21, 2007, agreed to raise as much as
US$18 million via international offerings of securities
including foreign currency convertible bonds, the company
disclosed to the Bombay Stock Exchange.
As decided during the meeting, the price of the equity shares so
issued on conversion will not be less than INR156 (including
premium of INR146) per equity shares of INR10 each.
According to Reuters, the amount raised would be used in the
production of gearboxes for Tata Motors Ltd's small car,
scheduled to be launched in 2008.
The committee has also decided to issue and allot, by way of a
preferential issue, up to 19,23,077 Compulsorily Convertible
Cumulative Preference shares of INR156 each convertible in full
into a maximum 19,23,077 of the company's INR10 each shares at a
price of INR156 per share (including premium of INR146) to these
AIG Entities:
-- AIG Asian Opportunity Fund II;
-- L P (AOF II);
-- American International Assurance Company (Bermuda) Ltd
[AIA(B)]
-- American International Assurance Company Ltd (AIA);
-- Ashoka Investment Holding Ltd (AIHL); and
-- Ambadevi Mauritius Holding Ltd (AMHL).
To seek the shareholders' approval of the move, the company has
scheduled an extraordinary general meeting on Jan. 22, 2008.
India-based Kinetic Engineering Ltd. --
http://www.kineticindia.com/-- is an automobile manufacturer,
which specializes in two wheelers. The company has sold over 6
million vehicles in India. Kinetic has brought to India
technologies, such as four valve engines, electric start on
scooters and motorcycles, v-twin engines and upside down (USD)
forks. The company offers top-end bikes, such as Comet and
Aquila. It has a nationwide network of nearly 450 dealers and
over 1,000 service centers. Kinetic exports vehicles to the
United States, Canada, Latin America, Europe, Africa, Middle
East and South Asia.
For the 15 months ended Dec. 30, 2006, the company booked a net
loss of INR432.9 million. For the period Apr. 1, 2004, to
Sept. 30, 2005, the company incurred a net loss of
INR549.6 million.
QUEBECOR WORLD: Moody's Cuts Corporate Family Rating to Caa2
------------------------------------------------------------
Moody's Investors Service has downgraded Quebecor World Inc.'s
corporate family rating by two notches to Caa2. The company's
debt instruments and those of related companies, Quebecor World
Capital Corporation and Quebecor World Capital ULC, were also
downgraded and the related ratings outlooks were changed to
negative. Quebecor World Inc.'s speculative grade liquidity
rating remains at SGL-4, indicating poor liquidity.
The rating action concludes a review initiated on Nov. 23, 2007,
and reflects increased default risk as the company looks to
renegotiate bank credit facility arrangements in advance of
potential financial covenant defaults that could occur when
year-end compliance is tested. The company's ability to manage
the situation has been adversely impacted by cancellation of a
previously announced sale of the company's European operations.
This complicates an already difficult situation, and in light of
the tight time frame, increases execution risks.
In addition, without the benefit of sales proceeds from the
cancelled European transaction, it is not clear whether the
company may require more than mere financial covenant
adjustments. However, even including the relatively weak
European operations, Moody's expects the company to be modestly
cash flow positive during 2008. Accordingly, the revised
ratings' levels reflect the impact of liquidity related risks.
Over the recent past, Quebecor World has depended heavily on
third party financing to augment cash flow from operations.
This has created significant reliance on the company's bank
credit facility and has strained both the CFR and SGL ratings.
Consequently, until such time as Quebecor World can validate its
restructuring activities by way of significant cash flow self-
sufficiency, the close linkage between the SGL and CFR ratings
will continue to prevail, and over the near-term, liquidity
related milestones will trigger ratings activity and will
determine ratings outcomes. Since resolution of the current
situation depends on events that the company cannot control, the
ratings outlook is negative.
Downgrades:
Issuer: Quebecor World, Inc.
-- Corporate Family Rating, Downgraded to Caa2 from B3
-- Probability of Default Rating, Downgraded to Caa2 from B3
-- Senior Unsecured Regular Bond/Debenture, Downgraded to
Caa3 (LGD4, 67) from Caa1 (LGD4, 66)
Issuer: Quebecor World Capital Corporation
-- Senior Unsecured Regular Bond/Debenture, Downgraded to
Caa3 (LGD4, 67) from Caa1 (LGD4, 66)
Issuer: Quebecor World Capital ULC
-- Senior Unsecured Regular Bond/Debenture, Downgraded to
Caa3 (LGD4, 67) from Caa1 (LGD4, 66)
Outlook Actions:
-- Quebecor World, Inc.: Outlook, Changed To Negative From
Rating Under Review
-- Quebecor World Capital Corporation: Outlook, Changed To
Negative From Rating Under Review
-- Quebecor World Capital ULC: Outlook, Changed To Negative
From Rating Under Review
Headquartered in Montreal, Quebec, Canada, Quebecor World Inc.
(TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/--
provides marketing and advertising solutions to leading
retailers, catalogers, branded-goods companies and other
businesses with marketing and advertising activities, as well as
complete, full-service print solutions for publishers. The
company's major product categories include advertising inserts
and circulars, catalogs, direct mail products, magazines, books,
directories, digital premedia, logistics, mail list technologies
and other value-added services. Quebecor World has
approximately 27,500 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT SA: Sells Draka Comteq Stake for EUR209 Million
--------------------------------------------------------------
Alcatel-Lucent S.A. has reached an agreement with Draka Holding
N.V. to sell its 49.9% share in Draka Comteq B.V. against
payment of an aggregate cash purchase price of EUR209 million.
Under this transaction, Draka acquires full ownership of Draka
Comteq. Draka Comteq B.V. is a leader in the field of optical
fibre and optical fibre cable, created on July 1, 2004 by
combining the worldwide optical fibre and communication cable
activities of Draka and Alcatel-Lucent.
Since the initial establishment of the joint venture, Draka
Comteq has been controlled by Draka and its results have been
consolidated in full in the Draka consolidated financial
statements.
It is expected that the transaction completed by the end of
2007.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors
Service downgraded to Ba3 from Ba2 the Corporate Family Rating
of Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
BANK INTERNASIONAL: Bank Indonesia Gets Compliance from Temasek
---------------------------------------------------------------
Bank Indonesia received statements of compliance from PT Bank
Internasional Indonesia Tbk's shareholder, Temasek
Holdings, Antara News reports citing BI Banking Research and
Regulation Director Halim Alamsyah.
As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 17, 2007, Temasek, through Fullerton Financial Holdings
Pte. Ltd, is the majority shareholder of Sorak Consortium, which
in turn holds 56.13% of Bank Internasional shares.
According to Antara News, under Bank Indonesia's single-presence
policy, foreign parties cannot own a controlling stake in more
than one Indonesian bank and must submit statements of
compliance to this rule. Bank Indonesia, the report noted, set
an end-2007 deadline for affected bank owners to decide on how
they would comply with the rule.
Foreigners controlling Indonesian banks have three options to
comply with the single presence policy introduced by Bank of
Indonesia, the TCR-AP related:
-- merge the banks,
-- set up a holding company for the banks, or
-- sell down their stakes.
The TCR-AP added that Temasek Holdings plans to merge the bank
with PT Bank Danamon Indonesia Tbk, pending the approval from
banking regulatory bodies.
Mr. Alamsyah told the news agency that Bank Indonesia would
study the policies of the two holding companies with regard to
their share ownership in the Indonesian banks.
About Bank Internasional
PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/--
engages in general banking services and in other banking
activities based on Syariah principles. The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard. The bank is headquartered in Jakarta,
Indonesia.
With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.
The Troubled Company Reporter-Asia Pacific reported on
October 19, 2007, that Moody's Investors Service raised the
foreign currency long-term debt and foreign currency long-term
deposit ratings of PT Bank Internasional Indonesia Tbk.
-- The issuer/foreign currency subordinated debt ratings were
raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long-
term deposit rating to B1 from B2
-- The Not Prime foreign currency short-term deposit rating,
Baa3 global local currency deposit rating and D BFSR were
unaffected.
On Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of
Bank Internasional as follows:
* Long term foreign currency IDR at 'BB-' with a Positive
Outlook,
* Short term foreign currency IDR at 'B',
* Individual Rating 'C/D',
* Support Rating '4', Support Rating Floor 'B' and
* National Rating 'AA-(idn)'.
BANK LIPPO: Bank Indonesia Gets Compliance from Khazanah
--------------------------------------------------------
Bank Indonesia received statements of compliance from PT Lippo
Bank Tbk's shareholder, Khazanah Nasional Bhd, Antara News
reports citing BI Banking Research and Regulation Director Halim
Alamsyah.
As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 19, 2007, Khazanah Nasional is looking into the possibility
of merging Lippo Bank and PT Bank Niaga given the synergy
involved, and also to comply with Indonesia's single presence
policy.
According to Antara News, under Bank Indonesia's single-presence
policy, foreign parties cannot own a controlling stake in more
than one Indonesian bank and must submit statements of
compliance to this rule. Bank Indonesia, the report noted, set
an end-2007 deadline for affected bank owners to decide on how
they would comply with the rule.
Khazanah, the holding company of CIMB Group, has an 86.52% stake
in Bank Lippo through Santubong Investment BV, while CIMB Group
itself owns 62% of Bank Niaga`s shares through its subsidiary,
Bumiputra Commerece, Antara News disclosed. Under the single
presence policy, CIMB group and Khazanah were deemed as a single
shareholder because Khazanah has a 19.7% stake in CIMB, The Edge
notes.
Foreigners controlling Indonesian banks have three options to
comply with the single presence policy introduced by Bank of
Indonesia, the TCR-AP related:
-- merge the banks,
-- set up a holding company for the banks, or
-- sell down their stakes.
Mr. Alamsyah told the news agency that Bank Indonesia would
study the policies of the two holding companies with regard to
their share ownership in the Indonesian banks.
About Bank Lippo
Headquartered in Jakarta, Indonesia, PT Lippo Bank Tbk
-- http://www.lippobank.co.id/-- offers two product segments:
Consumer Products, comprised of personal accounts, debit cards,
distribution cards, VIP banking, credit cards, loans,
bancassurance, payment services, loyalty programs and safe
deposit boxes, and Corporate Products, consisting of
LippoKredit, LippoTrade, LippoGiro, LippoDeposit, e-LippoLink
and MFTS. The bank is supported by 134 branch offices, 21 sub
branch offices, 238 cash offices and four payment service
offices nationwide.
The Troubled Company Reporter-Asia Pacific reported on Oct. 19,
2007, that Moody's Investors Service raised the foreign currency
long-term debt and foreign currency long-term deposit ratings of
PT Lippo Bank Tbk.
The detailed ratings are:
-- The issuer/foreign currency subordinated debt ratings
were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency
long-term deposit rating to B1 from B2.
-- The Not Prime foreign currency short-term deposit rating
and D BFSR were unaffected.
On Sept. 11, 2007, Fitch Ratings upgraded the Individual Ratings
of PT Bank Lippo Tbk to 'C/D' from 'D. At the same time, the
agency upgraded Bank Lippo's National Long-term Rating to 'AA-'
from 'A+'. The Outlook remains Stable. All other ratings have
been affirmed:
* Long-term foreign currency IDR at 'BB-' with Positive
Outlook,
* Short-term foreign currency Rating at 'B',
* Support Rating at 4 and Support Rating Floor at 'B',
On July 12, 2007, Standard & Poor's Ratings Services assigned
'B+' long-term and 'B' short-term counterparty credit ratings to
Indonesia-base Lippo Bank. The outlook is stable. Standard &
Poor's also assigned its 'D' bank fundamental strength rating to
the bank. At the same time, Standard & Poor's assigned its 'B-'
issue rating to Lippo Bank's US$200 million subordinated notes
due in 2016. The differential between the 'B+' counterparty
credit rating on Lippo Bank and the 'B-' rating on its
subordinated notes reflects the subordinated feature of the
notes.
BANK MANDIRI: Aims to Increase Micro Loans
------------------------------------------
PT Bank Mandiri plans to boost its lending to micro businesses
by opening up to 300 more micro units next year to add to the
existing 311, The Jakarta Post reports.
Bank Indonesia, the report relates, categorizes loans of up to
IDR50 million as micro, from IDR50 million to IDR500 million as
small, and from IDR500 million to IDR5 billion as medium.
Of the 300 new micro units, 104 would be in Jakarta, 60 in
Sumatra, 25 in West Java, 24 in Central Java and Yogyakarta, 30
in East Java, 12 in Bali, 20 in Kalimantan and 25 in Sulawesi
and Papua, the report notes.
The report noted that Mandiri's lending to micro business during
the first nine months of this year amounted to IDR1.12 trillion,
less than 1% of its total loan book of IDR121.7 trillion.
Still, it reflects an increase of 4% from last year's IDR982
billion, the report added.
In addition to providing more loans to micro businesses, the
Post relates, Mandiri is also stepping up its efforts to boost
its housing loan portfolio, taking advantage of rising demand on
the back of declining interest rates.
PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.
The Troubled Company Reporter-Asia Pacific reported on Dec. 7,
2007, that Fitch Ratings upgraded the Individual Rating of PT
Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its
National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The
Outlook on the National rating remains Stable. At the same
time, all other ratings are affirmed, as follows:
-- Long-term foreign and local currency Issuer Default
ratings at 'BB-' with a Positive Outlook
-- Short-term IDR at 'B'
-- Support at '4', and
-- Support Floor at 'B+'
On Oct. 19, 2007, Moody's Investors Service raised the foreign
currency long-term debt and foreign currency long-term deposit
ratings of Bank Mandiri.
-- The foreign currency senior/subordinated debt ratings were
raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long-
term deposit rating to B1 from B2.
-- The Not Prime foreign currency short-term deposit rating,
Baa2 global local currency deposit rating and D- BFSR were
unaffected.
BANK MANDIRI: Signs Business Deal With Lippo Cikarang
-----------------------------------------------------
PT Bank Mandiri signed an agreement with PT Lippo Cikarang,
pursuant to which every buyer of a home or shophouse in Lippo
Cikarang that has been purchased with a loan from Mandiri will
get a fixed 7.77% interest rate during the first two years, The
Jakarta Post reports.
Bank Director for Consumer Finance Omar S. Anwar was quoted by
The Post as saying, "We are offering loans ranging from
IDR25 million to IDR5 billion for customers who use Bank
Mandiri's housing loan scheme.
PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.
The Troubled Company Reporter-Asia Pacific reported on Dec. 7,
2007, that Fitch Ratings upgraded the Individual Rating of PT
Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its
National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The
Outlook on the National rating remains Stable. At the same
time, all other ratings are affirmed, as follows:
-- Long-term foreign and local currency Issuer Default
ratings at 'BB-' with a Positive Outlook
-- Short-term IDR at 'B'
-- Support at '4', and
-- Support Floor at 'B+'
On Oct. 19, 2007, Moody's Investors Service raised the foreign
currency long-term debt and foreign currency long-term deposit
ratings of Bank Mandiri.
-- The foreign currency senior/subordinated debt ratings were
raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long-
term deposit rating to B1 from B2.
-- The Not Prime foreign currency short-term deposit rating,
Baa2 global local currency deposit rating and D- BFSR were
unaffected.
EXCELCOMINDO PRATAMA: Gets IDR4-Million Loan from Bank Mandiri
--------------------------------------------------------------
PT Excelcomindo Pratama obtained a IDR4 trillion loan from Bank
Mandiri to expand its network, various reports say.
The Jakarta Post relates that President Director Hasnul Suhaimi
said the funds will be used to build transmission towers and
fiber optic cabling.
The company, Reuters notes, signed the agreement on December 19.
The loan will be repaid in five years, The Post adds citing a
company statement.
About Excelcomindo Pratama
Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/ -- provides wireless telecommunications
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
services. In addition, Excelcomindo provides voice, data and
other value-added cellular telecommunications services. Its
product lines include jempol, bebas and xplor. The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
all centers. Excelcomindo starter packs and voucher reloads are
also sold by independent retailers.
Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%. TM and
its parent Khazanah together hold 73.7% in XL.
* * *
The Troubled Company Reporter-Asia Pacific reported on Dec 12,
2007, Standard & Poor's Ratings Services affirmed its 'BB-'
corporate credit ratings on Indonesian cellular operator, PT
Excelcomindo Pratama Tbk, and removed them from CreditWatch with
negative implications. The outlook is stable. The 'BB-' ratings
on all foreign currency senior unsecured debt were also
affirmed.
In October 2007, Moody's Investors Service upgraded Excelcomindo
Finance Company B.V.'s foreign currency senior unsecured bond
rating to Ba2 from Ba3. The bond is irrevocably and
unconditionally guaranteed by Excelcomindo Pratama. At the same
time, Moody's affirmed the Ba2 local currency corporate family
rating of XL with a positive outlook.
In May 2007, Fitch Ratings affirmed PT Excelcomindo Pratama
Tbk's Long-term Foreign Currency and Local Currency Issuer
Default Ratings at 'BB-'. The Outlook remains Stable. At the
same time, Fitch affirmed the 'BB-' rating on its senior
unsecured notes programme.
GOODYEAR TIRE: Jean-Claude Kihn Replaces Joseph Gingo as Sr. VP
---------------------------------------------------------------
The Goodyear Tire & Rubber Company has appointed Jean-Claude
Kihn as its senior vice president and chief technical officer,
effective Jan. 1, 2008. Mr. Kihn, who currently is general
director of Goodyear's Technical Center in Akron, will replace
Joseph M. Gingo, who is retiring from Goodyear after 41 years to
become chief executive officer of A. Schulman Inc.
The announcement of Mr. Kihn is evidence of the broad and deep
capabilities that have been built on Goodyear's technical
leadership team according to Robert J. Keegan, Goodyear's
chairman and chief executive officer.
"Jean-Claude has demonstrated excellent leadership throughout
the time I have known him and worked with him," said Mr. Keegan.
"He has gained the trust of our business leaders in Europe,
Latin America and North America through his recent assignments
in those businesses.
"I have a tremendous amount of confidence in Jean-Claude, and
the entire organization, to continue the positive trajectory
that we have driven over the course of the past several years,"
Mr. Keegan added. "Our new product engine is now the best in
the industry."
Mr. Kihn joined Goodyear in 1988 at the Goodyear Technical
Center in Luxembourg as a compounder working in passenger tires.
In subsequent years, he held several positions with Goodyear's
Asian and Latin American business units before being promoted to
general director of GTC*A in 2005. Mr. Kihn is a chemical
engineer and has a Ph.D. from the University of Louvain in
Belgium. He is fluent in English, French, German, Spanish and
Luxembourgish.
"I am extremely honored to be thought of as someone who can fill
Joe's shoes. However, I am also very confident of our future
capabilities - thanks in large part to the tremendous leadership
team that has been developed throughout the organization," said
Mr. Kihn.
Along with the appointment of Mr. Kihn, Goodyear announced other
leadership changes in the technical and research areas of the
company:
* William M. Hopkins, currently the vice president of
technology and strategic initiatives, has been named vice
president of advanced concepts. In his new role, he will
establish and lead a team responsible for "break-through"
concepts that will drive the development of innovative
product and process technologies.
* Joseph Zekoski, currently the general director of the
Goodyear Technical Center in Luxembourg, has been named to
the newly created position of vice president of global
product development and technical center operations. He
will be responsible for product development designed to
assure the timely and cost-effective delivery of
innovative new products.
* Surendra Chawla, currently the director of corporate tire
research, has been named to the position of senior
director of external science and technology programs.
Mr. Chawla will be responsible for discovering and
assessing innovative new technologies applicable to its
product and business needs.
* Marc Junio, currently director of technology, consumer
tires in Goodyear's European Union and Eastern Europe,
Middle East and Africa tire business segments, has been
named general director of GTC*A, replacing Mr. Kihn.
Goodyear is one of the world's largest tire companies. The
company employs about 70,000 people and manufactures its
products in more than 60 facilities in 26 countries around the
world.
About Goodyear Tire
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide.
* * *
In June 2007, Standard & Poor's Ratings Services raised its
ratings on Goodyear Tire & Rubber Co., including its corporate
credit rating to 'BB-' from 'B+'. These ratings still apply as
of Dec. 4, 2007.
NORTEL NETWORKS: Sues Vonage Holdings for Patent Infringement
-------------------------------------------------------------
Nortel Networks Corp. sued Vonage Holdings Corp. alleging that
Vonage is infringing 12 patents covering technology used in
managing telephone data, Jeff St.Onge and Amy Thomson at
Bloomberg News report.
According to Bloomberg, Nortel's lawsuit came after Vonage sued
Nortel's U.S. unit in August seeking to invalidate three of the
patents, arguing that the patents shouldn't have been issued by
the U.S. Patent and Trademark Office.
Nortel denied the allegations and claimed that Vonage is
violating the three patents and nine others, Bloomberg relates.
The Delaware case is Vonage Holdings Corp. v. Nortel Networks
Inc., 07CV507, U.S. District Court, Delaware (Wilmington).
About Vonage
Headquartered in Holmdel, New Jersey, Vonage Holdings Corp.
(NYSE:VG) -- http://www.vonage.com/-- provides broadband
telephone services with over 1.4 million subscriber lines as of
February 8, 2006. Utilizing its voice over Internet protocol
technology platform, the company offers feature-rich, low-cost
communications services with a call quality comparable to
traditional telephone services. While customers in the United
States represent over 95% of its subscriber lines, Vonage
continues to expand internationally, having launched its service
in Canada in November 2004, and in the United Kingdom in May
2005.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next-
generation technologies, for both service provider and
enterprise networks, support multimedia and business-critical
applications. Nortel's technologies are designed to help
eliminate today's barriers to efficiency, speed and performance
by simplifying networks and connecting people to the information
they need, when they need it. Nortel does business in more than
150 countries around the world. Nortel Networks Limited is the
principal direct operating subsidiary of Nortel Networks
Corporation.
Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.
* * *
Nortel Networks Corp. still carries Moody's Investors Service
'B3' Senior Unsecured Debt rating, which was placed on
March 22, 2007.
PERUSAHAAN GAS: S&P Raises Corporate Credit Ratings to 'BB-'
------------------------------------------------------------
Standard & Poor's Ratings Services has raised its corporate
credit ratings on PT Perusahaan Gas Negara (Persero) Tbk. to
'BB-' from 'B+'. The outlook on the rating is stable. At the
same time, Standard & Poor's has raised the rating on the senior
unsecured debt issued by PGN Euro Finance 2003 Ltd. (guaranteed
by PGN) to 'BB-' from 'B+'.
The upgrade factors in expectation of an improving financial
profile in the short to medium term, with revenue increasing as
a result of the completion of the two new major transmission
lines from South Sumatra into West Java (SSWJ1 and SSWJ2) and
the ongoing expansion of its distribution network. The
transmission lines and distribution expansion are expected to be
completed toward the end of 2008 and 2009, respectively.
"The rating reflects the company's dominant market position,
minimal price and volume risk for its transmission business,
aggressive capital expenditure, high concentration on industrial
customers, gas supply constraints, and mismatch of gas sales
contract length and country and regulatory risks," said Standard
& Poor's credit analyst Wee Lee Cheng.
"The stable outlook reflects the expectation of an improving
financial profile in the short to medium term, with revenue
increasing as a result of the completion of the two new major
transmission lines from South Sumatra into West Java and the
ongoing expansion of its distribution network in West Java,"
Mr. Cheng added. "The outlook or rating could face downward
pressure if there is a significant decline in gas exploration
and production activities resulting in lower gas supply
reliability, reduction in government support, decrease in
pipeline utilization rates, or if significant delays or cost
overruns in PGN's capital expenditure plan results in FFO to
debt falling below 25% and debt-to-EBITDA ratio rising above
3x."
PGN is a 55% government-owned Indonesian gas utility involved in
the transmission, distribution, wholesaling, and retailing of
gas. For the first six months of 2007, PGN generated total
revenue of IDR3.85 trillion (US$419 million) and EBITDA of
IDR1.76 trillion. The company had total assets of IDR19
trillion as of June 30, 2007.
REXAM PLC: Weak US Dollar to Impact 2007 Second Half Results
------------------------------------------------------------
Rexax plc provided a pre-close trading update for the second
half of 2007.
Underlying trading for the second half of 2007 is anticipated to
be broadly in line with management's expectations at the time of
Rexam's Interim Results announcement, excluding the impacts of
foreign exchange and a one-off fair value inventory adjustment
arising on the acquisition of O-I Plastics.
Beverage Cans is performing well, driven by strong volume growth
in Europe and South America, with good pricing and improved mix
in Europe. Volume growth in Brazil has been mitigated by the
Brazilian Real which has strengthened against the US dollar by
approximately 10% in the second half, which increased local
currency costs on translation. The North American business is
recovering from the effects of the strike in the first half.
The company's growth capex program is well on track, despite
start up delays in its new end manufacturing plant in Manaus,
Brazil.
Plastic Packaging is seeing a continuation of the trends
experienced in the first half. Growth in Pharma is driving
performance in the Healthcare division. In Personal Care, the
strong performance in Dispensing Systems and the recovery of
Make up partially offset softer volumes in Home and Personal
Care. Lower demand in North America is affecting trading in the
Closures division.
In the second half, the US dollar has continued to weaken
against sterling, and this will affect the company's reported
results due to the translation impact on its US dollar earnings.
In addition, energy and freight costs have been affected by the
higher price of oil and this is expected to continue into 2008.
The integration of O-I Plastics, acquired in July 2007, is
proceeding well and is set to deliver the expected synergies
from 2008 onwards. However, the 2007 operating profit for O-I
Plastics will be affected by an estimated additional GBP5
million fair value inventory accounting charge arising on
acquisition.
Rexam will announce its preliminary results for the year ending
Dec. 31, 2007 on Feb. 20, 2008.
Headquartered in London, England, Rexam Plc --
http://www.rexam.com/-- is a global consumer packaging company
and a beverage can maker. Rexam serves the beverage, beauty,
pharmaceuticals and food markets with around 100 manufacturing
operations in more than 20 countries, including Brazil and
Indonesia and generated revenues of GBP3.7 billion.
* * *
In June 2007, Moody's Investors Service assigned a provisional
(P)Ba2 rating to the proposed issuance of capital securities by
Rexam Plc rated Baa3 for senior unsecured debt. The assigned
rating and the basket designation will be subject to
satisfactory final documentation. Moody's said the outlook
for the ratings is stable.
=========
J A P A N
=========
IHI CORP: President Sees Strong Recovery Next Fiscal Year
---------------------------------------------------------
http://www.japancorp.net/Article.Asp?Art_ID=16465
Azela/3rd Party
IHI Corp. President Kazuaki Kama is confident that the company
will make a strong recovery in the next fiscal year starting
April 1, 2008, Jiji Press reports.
After revising its financial statement for fiscal 2006 and
lowering its earnings to an estimated loss of JPY15 billion for
this year, IHI, according to Jiji Press, is expected to log a
group operating profit of some JPY40 billion for the next fiscal
year.
Earlier this month, IHI, whose shares are being monitored by the
Tokyo Stock Exchange for delisting, estimated that its energy
plant division will incur a loss of JPY54 billion for the
current year, the report added.
The ships and heavy machinery is expected to regain a JPY4-JPY5
billion profit, thanks to a decline in the number of loss-making
projects overseas and cost control, Mr. Kama told Jiji Press.
Mr. Kama, relates Jiji Press, notes that its aircraft engine
supply and shipbuilding are growing steadily.
About IHI Corp.
Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp
-- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a
Japan-based company engaged in six business segments. The
Logistics and Steel segment offers concrete products, automated
storages, loaders and others. The Machinery segment offers
plastic processing machines, industrial boilers, pumps and
others. The Energy Plant segment develops waste incineration
facilities, nuclear power plants, thermal power plants and
process plants, water treatment plants, renewable power plants
and other facilities. The Aerospace segment produces aircraft
engine parts and provides aircraft maintenance services. The
Ship and Offshore segment builds container ships, bulk carriers,
tankers and other ships, as well as develops marine equipment
and machinery and provides design and engineering services. The
Others segment provides real estate, financial and insurance
services.
The Troubled Company Reporter-Asia Pacific reported on July 13,
2007, that Standard & Poors Rating Agency affirmed its BB+ long-
term corporate credit rating with a positive outlook.
NIS GROUP: TPG Alliance Cues S&P to Put Ratings on CreditWatch
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BB-' long-term
counterparty credit rating and long-term senior unsecured debt
rating on NIS Group Co. Ltd. remain on CreditWatch with negative
implications, where they were placed on Oct. 3, 2007.
The realization of the recently announced capital and business
alliance with TPG Capital L.P. will likely have a positive
effect on NIS Group's credit quality. However, Standard &
Poor's believes it is appropriate to reassess the ratings on NIS
Group after continued monitoring of the business environment,
since the impact of the transaction on the company's financing
and future business plans have not yet been clarified. The
ratings on NIS Group were lowered and placed on CreditWatch
mainly due to increasing concerns over the credit quality of the
finance industry as a whole, and the resultant heightening of
precautionary measures by financial institutions.
NIS Group's issuance of new shares to TPG worth JPY20 billion
scheduled for Feb. 20, 2008, will boost the company's capital
ratio by around 4% from 19.3%, as of Sept. 30, 2007, providing
stronger credit quality. On the other hand, TPG's planned
investment of JPY102.5 million in NIS Group's Chinese
subsidiary, Nissin Leasing (China) Co. Ltd., will have limited
impact on the company in terms of credit quality. This is
because of the diluted contribution the subsidiary makes to NIS
Group and the restrictive conditions of the transaction.
TPG has yet to clearly specify the concrete steps it plans to
take to improve the corporate value of NIS Group. In the
meantime, the company is challenged to maintain stable financing
and continues to rely on multiple financial institutions to
raise funds. The extent to which the alliance will support such
efforts is currently unclear. Standard & Poor's will resolve
its CreditWatch listing after analyzing the following factors:
-- NIS Group's financing conditions, including the stance
taken by financial institutions with respect to credit
lines;
-- Progress of the company's alliance with TPG;
-- The company's business plans; and
-- Business profitability, including NPL trends.
Standard & Poor's will most likely resolve its CreditWatch
listing after the capital increase, but there is a possibility
it will occur before that depending on various circumstances.
Headquartered in Ehime Prefecture, Japan, NIS Group Co., Ltd.,
formerly Nissin Co., Ltd., --
http://www.nisgroup.jp/japanese/ind... -- is mainly engaged in
the provision of secured and unsecured loans to individuals,
including small business owners, consumers, small- and medium-
sized enterprises in Japan. The Company operates in four
business segments. The Integrated Loan Services segment is
engaged in the provision of secured and unsecured loans, trust
assurance, leasing and securities services to individuals and
corporate clients. The Debt Management and Collection segment
is engaged in the purchase, management and collection of debts.
The Real Estate segment is engaged in the purchase, sale and
development of real estate, as well as the asset management
business. The Others segment is engaged in the provision of
construction services and enterprise support services, among
others. The Company has 54 subsidiaries and 10 associated
companies.
NUANCE COMM: Prices Public Offering of 7,000,000 Common Shares
--------------------------------------------------------------
Nuance Communications Inc. has priced a public offering of 7.0
million shares of its common stock at US$17.50 per share.
Nuance is selling 6,773,000 shares in the offering and certain
members of Nuance management are selling an additional 227,000
shares in the offering. The public offering price of US$17.50
per share will result in gross proceeds of US$118.5 million and
net proceeds, after underwriting commissions and other offering
expenses, of approximately US$112.8 million to Nuance. The
company also granted the underwriters a 30-day option to
purchase up to an additional 1,050,000 shares of its common
stock to cover over-allotments, if any.
Citi and Goldman, Sachs and Co. are acting as the joint book-
running managers of the offering. Lehman Brothers and Thomas
Weisel Partners will act as the lead managers of the offering
and Craig-Hallum Capital Group, Needham & Company and Raymond
James Financial will act as co-managers of the offering.
Printed copies of the prospectus may be obtained from:
Citi
Brooklyn Army Terminal
140 58th Street, 8th Floor
Brooklyn, NY 11220
Tel: (718) 765-6732
Fax: (718) 765-6734
-- or --
Goldman, Sachs & Co.
Attn: Prospectus Department
85 Broad Street
NY, New York 10004
Fax: (212) 902-9316
The offering is being made pursuant to an effective registration
statement filed by Nuance with the U.S. Securities and Exchange
Commission on Nov. 29, 2007.
About Nuance Communications
Based in Burlington, Massachusetts, Nuance Communications Inc.
(NASDAQ: NUAN), fka ScanSoft Inc., -- http://www.nuance.com/--
provides speech and imaging solutions for businesses and
consumers around the world. Its technologies, applications and
services that help users interact with information, and create,
share and use documents.
The company has offices in Australia, Belgium, Japan, Korea,
Hong Kong, India, Mexico, and the United Kingdom, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 9, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on Burlington, Massachusetts-based
Nuance Communications Inc. and assigned its 'B-' rating to
Nuance's proposed USUS$150 million senior unsecured convertible
notes due 2027. Proceeds from the notes will be used to
partially fund the previously announced acquisition of Tegic
Communications Inc. S&P said the outlook is positive.
SAPPORO HOLDINGS: To Raise Shipment & Beer Prices in FY2008
-----------------------------------------------------------
Sapporo Holdings Ltd.'s unit will raise the shipment prices of
its beer and quasi-beer products on April 1, 2008, due to rising
material prices, Jiji Press reports.
Retail prices for its beer and beer-like drinks are also
expected to rise by 3% to 5% from the current levels, notes Jiji
Press.
Sapporo Breweries Ltd. officials, relates Jiji Press, said that
malt and hop prices are shooting up amid growing global demand
for biofuels, while higher crude oil prices are pushing up the
prices of aluminum cans.
Kyodo News quotes Sapporo as saying, "Our own efforts alone
would not suffice to make up for the cost increases."
In line with this, the company expects material costs to
increase JPY3 billion form the next fiscal year compared to this
year, states Jiji Press.
The brewery, according to the reports, did not disclose the
margin of the price hike.
About Sapporo Holdings
Sapporo Holdings Limited -- http://www.sapporoholdings.jp/--
formerly known as Sapporo Breweries, brews beer and operates
more than 200 beer halls and restaurants. Sapporo is one of
Japan's oldest brewers, and is Japan's third largest brewing
company, with brews ranging from its flagship Black Label to the
pricier Yebisu. Sapporo also makes the low-malt happoshu brew.
The company sells Guinness beer in Japan through its Sapporo
Guinness Company and owns a beverage company that makes canned
coffee, bottled water, and soft drinks.
* * *
As of May 16, 2007, the company carries Standard & Poor's Rating
Service's 'BB' Long-Term Foreign Issuer Credit and Long-Term
Local Issuer Credit Ratings that were issued on February 6,
2006; and Fitch Ratings' 'B' Short-term Foreign and Local
Currency Issuer Default Ratings that were issued on March 14,
2006.
* Moody's Report Say Japanese Firms Retain Financial Profiles
-------------------------------------------------------------
According to a report by Moody's Investors Services, in 2007,
Japanese companies continued their aggressive and strategic
investments, although they were still financially conservative.
"Positive rating actions dominated in 2007. While we expect
upgrades to continue into 2008, the number will decrease,"
writes Emiko Otsuki, Moody's SVP, Chief Credit Officer in
Japan's Corporate Finance Group, and author of the report.
"Companies will still have very strong credit profiles, but
earnings are expected to come under pressure."
On the downside, many of the 2008 earnings projections are
weaker due to a number of challenges, including passing on
additional hikes in the cost of raw materials and fuel. Still,
Japanese companies have improved their tolerance for potential
risk, and we believe that any negative impact on Japanese
companies' ratings should be limited, according to the report,
entitled "Corporate Japan -- Credit Insights & Highlights:
2007 Review & 2008 Outlook."
Thus, ratings should remain stable in 2008. Of the total rated
debt by Moody's, US$271 billion (87% of rated debt), have
currently stable rating outlooks.
Because of aggressive investments, funding needs have increased.
In 2007, funding in Japan's bond markets increased -- to the
highest level since 1998. And the appetite for strategic
investments will remain strong, according to Otsuki. "With
interest rates likely to stay at their current low levels,
companies will increasingly use leverage, which had improved in
the past. Debt may increase, but the companies will try to
avoid any material deterioration in financial ratios."
Among the challenges Japanese companies face are a slowdown of
the US economy, which would cloud the outlook for Japanese
companies' activities in the US.
Also, a stronger yen is negative for exporters with a
substantial percentage of sales outside of Japan, although they
should be able to minimize the negative impact with global
production management measures. Furthermore, the exporters are
better prepared for potential risks, given that their
portfolios, cost structures, and balance sheets are stronger
than they were ten years ago.
If overall financial profiles deteriorate due to greater than
expected earnings pressure, ratings may face downward pressure.
Significant market activity, such as M&A, could also lead to
downward pressure, depending on how such activities are carried
out.
* Japanese Railroads' Outlook Moderately Positive, Moody's Says
---------------------------------------------------------------
The ratings outlooks of Moody's Investors Services' universe of
Japanese railroad companies are stable to positive. Non-rail
business restructuring continues, leading to improved credit
quality, says Moody's in a report.
In 2007, Moody's changed the ratings outlook to positive from
stable for East Japan Railway (Aa2) and Central Japan Railway
(Aa2) in May, and for Keio Electric Railway (A2) and Tokyu
Corporation (Baa3) in June. The ratings outlook for Kansai
Rapid Railway (Aa2), Keihin Electric Express Railway (A3),
Hankyu Hanshin Holdings (Baa1), Kintetsu Corporation (Baa2), and
Sagami Railway (Baa2) remain stable.
"We also published one new rating in the sector -- Kansai Rapid
Railway (KRR, Aa2) -- bringing the total number of rated
railroad companies in Japan to nine," says Kazusada Hirose,
Moody's Vice President/Senior Analyst and author of the report.
The report, entitled "Japan's Railroad Companies," comments
that, despite lower railroad passenger numbers, the rated
companies have been able to control costs and stabilize
profitability. Moody's expects that railroad business cash flow
will continue to support company ratings.
"Although we expect railroad revenues will be pressured, the
decline is set to be slow and predictable, and the railroad
companies should be able to implement effective
countermeasures," Hirose writes. "We believe that the companies
will be able to continue cutting operating costs and control
their capital expenditures, leading to stable cash flow from the
railroad business."
The rated companies have improved overall cash flow by
restructuring their non-rail operations, namely retail and real
estate, to varying extents. This restructuring and the
resulting overall improvement to profitability have led to
improved leverage.
In the near future, some companies may increase their capital
expenditures for transportation safety and station areas
redevelopment, as well as for real estate and retail. Still,
Moody's believes the railroad companies in general will control
their debt even as they continue improving their financial
profiles. The credit ratings of Japan's railroad companies are
likely to improve, supported by stabilized cash flow and
improved leverage.
=========
K O R E A
=========
ACTUANT CORP: Earns US$27.4 Mil. in First Quarter Ended Nov. 30
---------------------------------------------------------------
Actuant Corporation reported first quarter fiscal 2008 net
earnings of US$27.4 million compared to prior year net earnings
of US$25.1 million. Fiscal 2008 first quarter results include a
US$5.5 million (US$0.09 per diluted share) charge covering a
portion of the company's previously announced European
Electrical restructuring, versus US$0.1 million in the first
quarter of fiscal 2007. Excluding these restructuring charges,
first quarter EPS increased 27% year-over-year from US$0.41 to
US$0.52.
For the first quarter ended Nov. 30, 2007, the company's net
sales increased 21% to US$415 million from US$343 million in the
prior year, reflecting the combination of core growth, business
acquisitions and the weaker US dollar. Excluding the impact of
foreign currency rate changes (5%) and acquisitions (13%), core
sales growth was 3%. Both the Industrial and Engineered Products
segments generated double-digit core sales growth.
Robert Arzbaecher, President and CEO of Actuant commented,
"Actuant is off to a solid start in fiscal 2008 with core sales
growth slightly ahead of expectations and excellent conversion
to earnings. Robust Industrial segment sales as well as
continued strength in the European truck market had a favorable
impact on our core sales growth in the quarter. These results
reinforce the benefits of Actuant's end market, geographic and
customer diversification. Excluding restructuring charges,
first quarter EPS increased 27% from last year, driven by higher
sales, the benefit of acquisitions and margin expansion. We
were especially pleased with the breadth of the year-over-year
EBITDA margin increase as all of our business segments
contributed to the improvement."
Excluding European Electrical restructuring charges, operating
margins in the first quarter improved 90 basis points, to 13.6%
from 12.7% in the prior year. Higher gross profit margins as
well as controlled selling, administrative and engineering
spending were the primary drivers. The gross profit margin
expansion reflects higher volume, favorable sales mix and the
Company's continuous improvement initiatives including Lean
Enterprise Across Discipline.
Financial Position
Net debt at Nov. 30, 2007, was US$505 million (total debt of
US$574 million less US$69 million of cash), an increase of US$30
million from the beginning of the quarter. Strong cash flow in
the quarter was used to fund the US$47 million investment in TK
Simplex as well as US$9 million of capital expenditures.
Actuant's first quarter cash flow was impacted by seasonal
trends including working capital growth and the payment of prior
year employee incentive compensation.
Outlook
The company also announced that it has increased its full year
sales and earnings guidance and provided guidance for the second
quarter of fiscal 2008. Mr. Arzbaecher stated, "We expect
second quarter sales and EPS to be lower than the first quarter
due to normal seasonality, but do anticipate year-over-year
growth. Excluding future acquisition activity and European
Electrical restructuring charges, we are projecting second
quarter sales and EPS to be in the range of US$385 - 395
million, and US$0.39-0.42 per share, respectively."
Mr. Arzbaecher continued "Our full year fiscal 2008 sales and
earnings outlook, excluding future acquisitions and European
Electrical restructuring charges, is being increased to reflect
actual first quarter results, the weaker US dollar and current
business conditions. Our increased guidance is for sales and
EPS in the range of US$1.625-1.660 billion and US$1.95-2.05 per
share, respectively. This translates to 13-18% EPS growth over
the US$1.73 fiscal 2007 EPS, excluding 2007 tax gains and
European Electrical restructuring charges. We are pleased with
our first quarter performance and remain committed to delivering
outstanding customer and shareholder value."
About Actuant Corp.
Headquartered in Butler, Wis., Actuant Corp. (NYSE: ATU) --
http://www.actuant.com/-- is a diversified industrial company
with operations in more than 30 countries including Australia,
Brazil, China, Hong Kong, Italy, Japan, Taiwan, United Kingdom
and South Korea. The Actuant businesses are market leaders in
highly engineered position and motion control systems and
branded hydraulic and electrical tools and supplies. The
company employs a workforce of more than 6,700 worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 6, 2007, Moody's Investors Service assigned a Ba2 (LGD3,
43%) rating to Actuant Corporation's USUS$250 million senior
unsecured notes and affirmed the company's Ba2 Corporate Family
Rating.
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Actuant Corp.'s proposed USUS$250 million senior unsecured notes
due 2017. The proceeds from the notes will be principally used
to repay a portion of borrowings under the company's senior
credit facility due 2009.
DURA AUTO: Resolves Magna Objections to Reorganization Plan
-----------------------------------------------------------
DURA Automotive Systems, Inc., and its debtor-affiliates and
Magna Donnelly Corporation have decided to resolve a lift
automatic stay issue and certain related issues related to the
Debtors' Plan of Reorganization.
In March 2007, the Debtors commenced a lawsuit against Magna in
the United States Court for the Eastern District of Michigan,
which alleges, among other things, that Magna infringed on
certain of the Debtors' patents and misappropriated trade
secrets.
Magna wanted to lift the automatic stay to ensure that the
Debtors' Plan of Reorganization does not restrict its ability to
pursue its counterclaim against the Debtors.
Thus, in a Court-approved stipulation, the parties agree, among
other things, that:
(a) the automatic stay will be immediately lifted to allow
the District Court action to proceed and for Magna to
assert and pursue its counterclaim and any other claims
against the Debtors; and
(b) Magna will be allowed to liquidate and enforce any
damage claims against the Debtors, whether pre- or post-
confirmation, and the District Court will have the sole
and exclusive jurisdiction over the liquidation,
provided, however, the Bankruptcy Court will have sole
and exclusive jurisdiction over the enforcement of any
monetary damage award related to prepetition monetary
claims that Magna may have against the Debtors.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 41 Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
DURA AUTO: Wants to Pay Lenders US$358K to Ignore Violations
------------------------------------------------------------
DURA Automotive Systems, Inc., and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to pay postpetition lenders US$358,000 to overlook loan
covenant violations.
As reported in the Troubled Company Reporter on Nov. 22, 2006,
the Debtors entered into a US$300 million of debtor-in-
possession financing facility with Goldman Sachs Capital
Partners L.P., General Electric Capital Corporation, and other
lender parties. Under the DIP Credit Agreement, the Debtors are
required to comply with certain financial covenants.
Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that Dura Operating
Corp., as borrower, and its debtor-affiliates, as guarantors,
have agreed to enter into amendments to the Postpetition
Revolving Credit Agreement dated Nov. 30, 2006, and Postpetition
Term Loan Agreement dated Oct. 31, 2006, to avoid violating
certain negative covenants in the DIP Facility as a result of
the Debtors' entry into Court-approved agreements with Johnson
Controls Systems, Inc., its affiliates and subsidiaries, and
Bridgewater Interiors LLC.
Mr. DeFranceschi says the $358,000 fee is equal to 0.05% of the
aggregate outstanding "Revolving Commitment provided by each of
the consenting Postpetition Lender or 0.25% of the aggregate
outstanding principal amount of "Loans" of each consenting
Postpetition Lender.
Anthony C. Flanagan, managing director of AlixPartners, LLP,
financial advisors to the Debtors, asserts that the aggregate
amount of the Amendment Fees is small and reasonable in
comparison to the benefits of the JCI Agreements to the Debtors'
estates.
The Debtors, in February 2007, negotiated the JCI Agreements to
obtain improvements in the commercial terms of its existing
supply contracts with JCI. DURA management believes that the
JCI Agreements contain:
(a) favorable commercial terms adjustments and resourcing
limitations;
(b) certain commitments by the Debtors to protect JCI from
supply disruptions;
(c) purchase options for JCI in the event of a default by the
Debtors or of a sale of the Debtors' facility in
Stockton, Illinois, where the Debtors predominantly
manufacture automotive components, including seat racks,
for JCI; and
(d) a general release of any existing claims of the Debtors
against JCI.
Over the course of approximately 5 years, the Debtors expect
that the commercial term adjustments contained in the JCI
Agreements will result in an increase in EBITDA. Mr. Flanagan,
however, redacted the projected EBITDA from the statement he
filed with the Court.
Under the JCI Agreements, JCI commits that it will not resource
parts produced at the Stockton Facility for one year, allowing
the Debtors time to enhance an already strong relationship with
JCI.
The Debtors asked the Court to convene an emergency hearing on
their request on Dec. 27, 2007, at 1:30 p.m. (ET).
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 41 Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
UAL CORP: Names New VP of Base Maintenance for United Services
--------------------------------------------------------------
UAL Corporation, the holding company whose primary subsidiary is
United Airlines Inc., has named Tracy M. Elving vice president
of Base Maintenance for United Services. Joining the company
from General Electric, Ms. Elving will be responsible for
engine, components and airframe maintenance for United Airline's
fleet, customer work at the San Francisco Base and oversight of
all outsourced airframe maintenance worldwide.
"Tracy's experience and proven track record in developing
continuous improvement initiatives and her experience with
supply chain will be a great complement to our current team,"
says United Services senior vice president, Bill Norman. "We
are thrilled to have her join our team as we focus on providing
the highest quality maintenance service to United and our
customers."
Ms. Elving brings more than 20 years experience in aviation
engineering and manufacturing to United. Most recently, she
served as the vice president, Lockheed Martin Account for
General Electric, where she was responsible for all GE Aviation
Systems products to Lockheed Martin and the development plans
for all GE Aviation Systems product lines. Ms. Elving also held
leadership positions at United Technologies Corporation and
Northrop Grumman Corporation.
"It is a very exciting time in the MRO business, and I look
forward to working with the team to expand our continuous
improvement efforts," Ms. Elving said.
Ms. Elving will assume her role on Jan. 7, 2008, and will report
directly to Mr. Norman.
About UAL Corp.
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest
air carrier. The airline flies to Brazil, Korea and Germany.
The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts. Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy. Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006. The company emerged from bankruptcy protection
on Feb. 1, 2006.
* * *
As reported in the Troubled Company Reporter on Nov. 29, 2007,
Moody's Investors Service affirmed the ratings of UAL Corp. debt
-- corporate family rating at B2 -- following the company's
announced plans to amend its US$2.055 billion bank credit
facilities (comprising a term loan facility of US$1.8 billion
and a revolving credit facility of US$255 million) to provide
the flexibility to implement up to US$500 million of shareholder
initiatives. This level of shareholder initiatives would likely
be within United's anticipated free cash flow and should still
preserve the company's adequate level of liquidity. Moody's
said the outlook remains stable.
Standard & Poor's Ratings Services meanwhile affirmed its 'B'
corporate credit rating on UAL Corp. and subsidiary United Air
Lines Inc. following disclosure of a proposed amendment to
United's bank credit agreement that would permit UAL to pursue
"shareholder initiatives" (which could include a special
dividend or share repurchases) of up to US$500 million. S&P
said the outlook remains stable.
===============
M A L A Y S I A
===============
AMBANK BHD: Fitch Maintains 'BB' Rating on Hybrid Securities
------------------------------------------------------------
Fitch Ratings has revised the Outlook on Malaysia-based AmBank
(M) Berhad's ratings to Positive from Stable. Concurrently, the
agency has affirmed the bank's Long-term foreign currency Issuer
Default Rating at 'BBB-' with a Stable Outlook, Short-term
foreign currency IDR at 'F3', Individual rating at 'C/D',
Support rating at '3' and Support Rating Floor at 'BB'. Fitch
has also affirmed the 'BB' rating on the bank's hybrid
securities.
The ratings reflect the bank's improved, but still weak, balance
sheet strength and moderate profitability as well as the
benefits from its new strategic partner, the Australian and New
Zealand Banking Group Limited (ANZ; ANZ National Bank Limited is
rated 'AA-' (AA minus)). With ANZ's involvement in AmBank's
strategic direction and operational matters, AmBank's financial
strength and market position is expected to improve further over
the longer term. Most of ANZ's seconded managerial personnel
have been designated to focus on AmBank's retail strategy and
risk management.
The bank's asset quality has improved considerably over the past
two to three years, thanks to its concerted recovery initiatives
and write-offs. At end-H1FY08, its gross NPL ratio stood at 7.9%
(industry: 6%). Loan loss reserve over NPLs doubled to 65%
(industry: 70%) from 30% at end-FY05; the bulk of additional
provisions was incurred in FY07 in view of the capital injection
by ANZ.
Notwithstanding the hefty provisions - which resulted in FY07
being a loss-making year - AmBank's Total CAR remained at 12%
thanks to ANZ's capital injection; Tier 1 CAR stood at 6.3% at
end-H1FY08. The bank has emerged on a stronger footing as
reflected by its lower net NPL to equity ratio of 38% at end-
H1FY08 (FY05: 139%). Nonetheless, AmBank's current capital
position only permits a modest loan expansion, unless fresh
capital is injected.
Excluding the one-off hefty provision, AmBank's underlying
performance has remained stable, driven by its consumer-led
lending activities. This segment, with auto financing being the
largest, along with SME lending will continue to be the bank's
main growth engine with an increasing emphasis on fee income.
However, given that higher loan loss coverage over NPLs is
expected, credit costs are likely to limit the bank's
profitability in the near term.
With a network of 176 branches, 260 ATMs and 56 Electronic
Banking Centres, AmBank has a sizeable presence in the consumer
market with a notable franchise in car hire-purchase financing.
The commercial bank is part of the AMMB Holdings Berhad (AHB)
group, whose two major shareholders are AmCorpGroup Berhad
(owned by the Non-Executive Chairman, Tan Sri Azman Hashim with
18.1% shareholding), and ANZ with a shareholding of 14.1%.
Subject to regulatory approvals, ANZ's shareholding can increase
up to 24.9% through the exercise of conversion option attached
to the convertible and exchange instruments that it had injected
into the group.
VERIFONE HOLDINGS: Special Interest to Accrue on 1.375% Notes
-------------------------------------------------------------
VeriFone Holdings Inc. said that beginning Dec. 20, 2007,
special interest accrued on its 1.375% convertible notes due
2012 at a rate of 0.25% per annum. Special interest will accrue
on the convertible notes pursuant to the registration rights
agreement and the indenture relating to the convertible notes
until a registration statement relating to the convertible notes
is declared effective. VeriFone expects to file a registration
statement relating to the convertible notes following the
completion of its previously announced restatement and the
filing of its annual report on Form 10-K for the fiscal year
ended Oct. 31, 2007. The convertible notes were previously
issued through offerings to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as
amended.
No registration statement relating to the securities described
above has yet been filed with the Securities and Exchange
Commission. This notice does not constitute an offer to sell or
the solicitation of an offer to buy any securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which the offer, solicitation or sale
would be unlawful prior to registration or qualification under
the securities laws of any state.
About VeriFone
VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems. The company has operations
in Argentina, Australia, Brazil, China, France, India, Malaysia,
Poland, the United Kingdom, the United States, among others.
* * *
As reported in the Troubled Company Reporter on Sept. 29, 2006,
Moody's Investors Service affirmed the Corporate Family Rating
of B1 on VeriFone and revised the rating outlook to stable from
negative. At the same time, Moody's assigned ratings to new
bank credit facilities that VeriFone will use to finance its
pending acquisition of Lipman Electronic Engineering Ltd.
====================
N E W Z E A L A N D
====================
CLEAR CHANNEL: Fitch to Cut IDR to B Upon Transaction Closing
-------------------------------------------------------------
Clear Channel Communications gave greater detail on its pro
forma capital structure post-closing of its going-private
transaction.
The filing states that the new secured debt will be granted,
among other things, a first-priority security interests in
certain assets of Clear Channel and the guarantor subsidiaries
that will not require Clear Channel's existing senior notes that
remain outstanding to be equally and ratably secured under the
indenture. In addition, new secured and unsecured debts are
expected to be guaranteed by each of Clear Channel's existing
and future wholly owned material domestic restricted
subsidiaries, subject to certain exceptions. Existing notes
will not receive any guarantees from Clear Channel subsidiaries.
These details are in-line with Fitch's Sept. 25, 2007 press
release that stated that the existing Clear Channel indenture
does not appear to limit subsidiary guarantees and that this
could ultimately structurally subordinate existing bondholders
behind any new secured and unsecured financings. Furthermore,
Fitch stated in that press release that the Limitation on
Mortgages language in the company's existing indenture is only
applicable to Principal Property in the United States. As
defined in the indenture, Fitch believes Principal Property may
exclude FCC licenses and outdoor permits in the United States,
as well as international assets. While the language in
yesterday's filings was still vague in what assets will be
secured with the new financings, the company could potentially
carve-out these specific assets in its security packages to the
new secured financings.
Upon close of the going-private transaction, Fitch has indicated
they expect to downgrade Clear Channel's IDR to 'B'. Fitch
expect to rate CCU's bank facility equal to or one notch above
the IDR; new unsecured would be one or two notches below the IDR
and existing senior unsecured could be two to three notches
below the IDR. The Rating Outlook is expected to be Stable.
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media and
entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.
CLEAR CHANNEL: S&P Cuts Rating on US$6.32 Billion Notes to B-
-------------------------------------------------------------
Standard & Poor's Rating Services lowered its issue-level
ratings on Clear Channel Communication Inc.'s roughly US$6.32
billion of existing senior unsecured notes to 'B-', two notches
below the corporate credit rating, from 'B+'. All ratings
remain on CreditWatch with negative implications, where they
were originally placed on Oct. 26, 2007, pending the completion
of Clear Channel's LBO.
"The two-notch downgrade is based on the company's disclosure
that following its pending LBO transaction, it will roll over
existing debt on an unsecured basis into the new capital
structure, and structurally subordinate it to proposed new bank
debt," explained Standard & Poor's credit analyst Michael
Altberg.
The new bank debt will benefit from operating company
guarantees. Therefore, the downgrade of the existing senior
notes reflects the large amount of priority debt in the capital
structure. This disclosure accompanied Clear Channel's tender
offer for its outstanding US$750 million of 7.65% senior notes
due 2010 and its outstanding US$644.9 million of 8% senior notes
due 2008 at its AMFM Operating Inc. subsidiary.
The proposed financing for the transaction consists of about
US$18.5 billion of new senior secured credit facilities and
US$2.6 billion of new senior unsecured notes. The new senior
secured facilities, as proposed, will be guaranteed by Clear
Channel's immediate parent entity and, more importantly, by its
existing and future wholly owned domestic restricted
subsidiaries that hold FCC licenses and radio stations assets.
The company's existing senior notes, which are being downgraded,
will not have any guarantees. The indentures governing the
borrower's existing debt significantly limit the pledge of
collateral to the proposed US$18.5 billion senior secured debt.
The amount of debt secured by collateral from principal
properties cannot exceed 15% of consolidated stockholder equity.
The permitted collateral amount is not fixed at the closing of
the transaction and will fluctuate in line with changes in
stockholders equity. The existing bondholders are entitled to
equal and ratable security if this limitation is breached. S&P
understands that the proposed debt will be structured to avoid
breach of this covenant.
Revenue and EBITDA increased 5.5% and 4.8%, respectively, for
the third quarter of 2007, as 14% growth in outdoor advertising
more than offset a 1% decline in radio revenue. Gross balance
sheet debt to EBITDA was 3.1x at Sept. 30, 2007, down from 3.6x
at year-end 2006. Lease-adjusted total debt (which capitalizes
operating leases and minimum franchise payments associated with
outdoor advertising, and includes third-party debt, guaranteed
letters of credit, and acquisition-related earn-out payments) to
EBIDA was 4.4x. Pro forma for the proposed merger, S&P expects
the debt to EBITDA to be about 10x.
The closing of the merger is still subject to the acquirer's
receipt of FCC approval, which it expects to receive in the
first quarter of 2008. S&P will continue to monitor
developments surrounding the proposed merger and will review the
business and financial strategies, as well as post-transaction
liquidity, in determining the ultimate corporate credit rating
for Clear Channel. S&P could further lower issue-level ratings
on the existing debt, depending on how much flexibility is built
into the deal structure.
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media and
entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.
PSIS LTD: S&P Assigns 'BB+/B' Issuer Credit Ratings
---------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB+/B'
issuer credit ratings to New Zealand cooperative PSIS Ltd. The
rating outlook is stable.
"The ratings on PSIS reflect the company's very good asset
quality, which is supported by a relatively low-risk lending
profile in the New Zealand non-bank loans market; strong
customer focus, underpinned by a loyal customer base; and good
capital adequacy on a risk-weighted basis," Standard & Poor's
credit analyst Shaun Evans said. "Offsetting these strengths
are the company's small absolute capital base when compared to
international peers, high cost structure, concentrated lending
profile within the personal segment, declining profitability,
and a mismatched asset-liability maturity profile which is
moderately exposed to interest rate movements."
PSIS has a small but defendable and long-established business
profile within the highly competitive New Zealand retail
financial-services market. Although PSIS holds a small 0.6% of
New Zealand financial institutions' assets, it is supported by a
loyal client base. About 88% of its lending book as at fiscal-
year ended March 2007 comprised residential mortgages, where
three-quarters were in standard low-risk residential mortgages.
The balance was in low-equity residential loans and personal
loans, where approximately 4.9% were unsecured.
Over the last three fiscal years, PSIS' after-tax profits have
been declining, mainly due to lower interest margins and higher
costs, and despite growth in assets and the loan book. The
company has adequate liquidity and reasonable funding facilities
for a normal market environment, although it has a mismatch in
its asset-liability maturity profile. In the six months to
September 2007, although the company was also affected by mark-
to-market losses for its investments in managed funds, resulting
in an after-tax loss of NZ$0.2 million, PSIS achieved an
improvement in its underlying profit compared to the same period
in 2006.
"The stable outlook reflects our expectation that the
cooperative's financial characteristics will be maintained in
the medium term. Unlike most financial entities in the non-bank
finance industry, PSIS has very low credit risk within its
lending book. We do not anticipate any material increase in
credit risk in the short term," added Mr. Evans.
Rating Definition: An obligor rated 'BB' is less vulnerable in
the near term than other lower-rated obligors (rated in the 'B'
'CCC' or 'CC' categories). However, it faces ongoing
uncertainties and exposure to adverse business, financial, or
economic conditions which could lead to the obligor's inadequate
capacity to meet its financial commitments.
=====================
P H I L I P P I N E S
=====================
IPVG CORP: Links Up With GMA to Form Online Gaming Joint Venture
----------------------------------------------------------------
IPVG Corp. and GMA Network Inc. will team up and invest in an
online gaming business, the Philippine Daily Inquirer reports.
According to the report, GMA said on Friday that the joint
venture company, I-Play Inc., which will be comprised of its
unit GMA New Media Inc. and IPVG's subsidiary IP E-Game
Ventures, will design and operate online gaming and online
gaming-related portals.
I-Play will have an authorized capital stock of PHP800 million
with an initial paid-up capital of PHP200 million, GMA said,
according to the Inquirer.
IPVG Corporation -- http://www.ipvg.com/-- is engaged in the
information technology and communications business with
interests in Information Technology and Telecommunications; On-
line Gaming; and Business Process Outsourcing.
IPVG reaches its customers through collaboration with
international corporations that have proven to be market leaders
in their respective geographic markets and industries. Its
current partners include Fortune 1000 companies listed on the
New York Stock Exchange, such as Pacific Century Cyberworks Inc.
and IDT. The company can offer established product and
proprietary business knowledge to the Philippine market by
pairing each of its business subsidiaries with strategic
partners.
The TCR-AP reported on May 15, 2007, that the corporation posted
a net loss of PHP102.1 million for the year ended Dec. 31, 2006,
the company's third consecutive annual net loss after
PHP43.0 million in 2005 and PHP6.2 million in 2004.
METROPOLITAN BANK: Gets Retail Management Award for CMR Efforts
---------------------------------------------------------------
Metropolitan Bank & Trust Company (Metrobank), the country's
largest bank, was recognized once again for its good corporate
citizenship in the Philippines. The Asian Banking & Finance
Magazine, one of the leading independent business publishers in
Asia recently held its inaugural Retail Management Awards in
Singapore organized by the Charlton Media Group.
Metrobank Foundation, the Bank's corporate social responsibility
arm was recognized as the "Best Corporate Social Responsibility
Program" by the competition’s panel of judges, comprised of
banking and finance journalists, industry leaders, and
practitioners across the region.
Metrobank Foundation president Aniceto Sobrepena expressed his
appreciation for the honor bestowed on the Foundation, saying
that the recognition is a testament to Metrobank’s active
participation and deep involvement in helping the nation move
forward.
"We are pleased to be given the opportunity to put the
Philippine corporate social responsibility practices in the
global map. This award is a testament to the Metrobank Group's
unwavering commitment to helping local communities and our
contribution to nation building. Since we started the
Foundation’s work in 1979, we have continuously worked with our
partners in both public and private sectors in advancing our
advocacies in education, arts, public service, and health," he
said.
"Metrobank Group chairman George S.K. Ty always reminds us to
put more meaning into our achievements by giving back and
sharing the fruits of our success with the society that made
our success possible in the first place," he explained.
This includes delivering programs to local communities that
complement the values-oriented business culture of the Metrobank
Group. Metrobank Foundation takes great effort in going
after the public and private schools especially in the
countryside for excellent men and women who have proven their
service to the community to be bestowed with a Metrobank
excellence award.
On top of its excellence awards, the Bank has also espoused good
corporate citizenship in various areas like providing grants to
deserving charities and scholarships to college students. Aside
from being recognized for practicing good corporate governance,
the Bank has also supported the government by providing the
financing needs of various sectors through specialized lending
and proper payment of taxes. In 2007, the Metrobank Group has
remitted a total of PHP24.98 billion in national taxes, earning
a respectable position as one of the nation's large taxpayers.
Sobrepeña added that as a responsible corporate citizen,
Metrobank shall remain committeed to making meaningful
contributions for the economic and social development of local
communities, towards the greater goal of nation-building.
About Metrobank
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
Internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.
The bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
In November 2006, Moody's Investors Service revised the outlook
of Metropolitan Bank & Trust Co.'s foreign currency long-term
deposit rating of B1 and foreign currency subordinated debt
rating of Ba3 from negative to stable. The outlooks for
Metropolitan Bank's foreign currency Not-Prime short-term
deposit rating and bank financial strength rating of "D" remain
stable.
On Sept. 21, 2006, Fitch Ratings upgraded Metrobank's Individual
rating to 'D' from 'D/E'. All the bank's other ratings were
affirmed:
* Long-term Issuer Default rating 'BB-' -- with a stable
Outlook;
* Short-term rating 'B'; and
* Support rating '3.
On March 3, 2006, Standard and Poor's Rating Service assigned a
CCC+ rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
PHILCOMSAT: Poblador-Locsin Group Protests Rival's Takeover
-----------------------------------------------------------
The Poblador-Locsin group in the Philcomsat Holdings Corp. board
is protesting the forced takeover of PHC offices by the Bildner-
Africa faction in the Sandiganbayan, saying that the Bildner-
Africa members' election as government representatives in the
PHC group is based on bogus letters of representation, the
Philippine Daily Inquirer reports.
The Troubled Company Reporter-Asia Pacific reported on Nov. 21,
2007, that the government appointed new nominees into the boards
of PHC's parent companies Philippine Communications Satellite
Corp. and Philippine Overseas Telecommunications Corp.,
reportedly replacing the Locsin-Poblador group as government
representatives on the boards of these companies. Presidential
Management Staff Undersecretary Enrique Perez and Department of
Justice lawyers represented the government's 35% holdings during
the stockholders meeting.
The new group said that they are set to take over PHC, which is
still under the management of the Locsin-Poblador group, the
report said.
According to the group's lawyer Atty. Pitero Reig, the Ilusurio-
Bildner group used letters signed by Bernardo Aves, former
Government Service Insurance System chairman, and Solicitor
General Agnes Devanadera to vote themselves onto the boards of
POTC and Philcomsat, the Inquirer reported. Atty. Reig also
said that only the Presidential Commission on Good Government
could vote the shares in the sequestered companies, and added
that they have critical appointment documents signed by the
President herself, the Inquirer related.
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, Philcomsat
Holdings was one of the active participants in search of oil.
The company has since withdrawn from oil exploration because
there was no commercial discovery of oil. On January 10, 1997,
the company approved amendments to its Articles of
Incorporation, changing its primary purpose from embarking in
the discovery, exploitation, development and exploration of
mineral oils, petroleum in its natural state, rock or carbon
oils, natural oils and other volatile mineral substances to a
holding company.
According to a Troubled Company Reporter-Asia Pacific report
on May 18, 2006, Philcomsat Holdings has not declared dividends
for the past two fiscal years. Philcomsat is involved in an
anomaly brought about by huge losses. The company reported a
PHP6.965-million loss in 2004 and a PHP22-million loss in 2005.
The Philippine Senate has initiated an inquiry into the matter.
Moreover, according to press reports, a huge fraction of the
shareholdings of Philcomsat, which is said to be ill-gotten, had
been confiscated by the Government.
PHIL. LONG DISTANCE: Wants to Clear Up Foreign Ownership Issues
---------------------------------------------------------------
The Philippine Long Distance Telephone Co. wants to resolve all
foreign ownership issues cleared up before resuming negotiations
with the Japan NTT Group for the latter's possible acquisition
of additional shares in PLDT, the Philippine Star reports.
According to PLDT chairman Manuel Pangilinan, they want to
resolve any doubts raised on the extent of foreign ownership in
the company before allowing NTT to increase its shareholdings,
the Star relates. However, Mr. Pangilinan said they are
confident that foreign equity in PLDT remains below the
constitutional limit, the newspaper added.
The NTT Group, the report says, seeks to hike its ownership in
PLDT to 20% through its subsidiary NTT DoCoMo.
Atty. Wilson Gamboa had earlier questioned in court the
government's sale of its 46% stake in the Philippine
Telecommunications Investment Corp. to Hong Kong-based First
Pacific Corp. for PHP25.2 billion, the Star relates. The
acquisition also brought into question FPC's 27.93% in PLDT, the
report added.
Specifically, the Star reports, Atty. Gamboa questioned the
foreign equity in PLDT, which had reportedly exceeded the 40%
ceiling under the Philippine Constitution for a
telecommunications company.
Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.
* * *
As of November 7, 2007, Philippine Long Distance Telephone
Company carried Fitch Ratings' long-term foreign currency issuer
default and senior notes ratings of 'BB+'.
The company also carries Standard & Poor's 'BB+' foreign
currency rating, as well as Moody's Investors Service's foreign
currency bond rating of Ba2.
SAN MIGUEL: Enters New Packaging Supply Deal with Hong Kong Unit
----------------------------------------------------------------
San Miguel Corp. has entered into a new packaging supply deal
with San Miguel Brewery Hong Kong in light of continued growth
in the Chinese beverage market, the BusinessWorld Online
reports.
In a circular to the Stock Exchange of Hong Kong, SMB Hong Kong
said the new agreement was signed ahead of the expiration of the
current agreement by Dec. 31, 2007, and will last until Dec. 31,
2010, the report relates.
"The company is optimistic about the future growth in its sale
of alcoholic and non-alcoholic beverage products which will lead
to possible growth in the purchase of packaging materials and
alcoholic and non-alcoholic beverage products from the San
Miguel Group. The formal launch of the group’s juice products
in 2008 is another important factor," the circular stated,
BusinessWorld reports.
Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,
operates food, beverage and packaging businesses. The company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products. San Miguel markets its
products both in the domestic and overseas markets. The company
also manufactures glass, metal, plastic, paper and composites
packaging products.
The TCR-AP reported on November 12, 2007, that Moody's affirmed
the Ba2 local currency corporate family rating of San Miguel
Corporation. This follows the company's announcement that it is
to sell the Tasmanian brewer, J Boag & Son Pty Ltd, for
AU$325 million and the Australia-based dairy and beverage
producer, National Foods Ltd, for AU$2.8 billion. The rating
outlook remains stable.
The TCR-AP reported on November 14, 2007, that Standard & Poor's
Ratings Services affirmed its 'BB' long-term foreign currency
corporate credit rating on San Miguel Corp. The outlook remains
negative. The affirmation comes after San Miguel announced the
sale of its Australian dairy and juice subsidiary National Foods
Ltd. to the Japanese brewer Kirin Holdings Co. Ltd. (AA-/Watch
Neg/--), for AU$2.8 billion.
=================
S I N G A P O R E
=================
CHEMTURA CORP: Moody's Reviews Ratings for Possible Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed the ratings of Chemtura
Corporation (corporate family rating, Ba2) under review for
possible downgrade following the announcement that its Board of
Directors has authorized management to consider a wide range of
strategic alternatives available to the company to enhance
shareholder value. While this process may not be resolved
within the next three months, Moody's review will examine the
company's ratings given the lack of improvement in financial
metrics over the past year, the potential impact of a slowdown
in the US economy in 2008, potential further weakness in the
company's Non-Flame Retardant Polymer Additives businesses, and
the likelihood of additional restructuring charges.
Moody's review will focus on the company's expected financial
metrics in 2008 as well as any indications from management on
the size or scope of the actions they may consider as part of
the strategic review.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products. The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and The United Kingdom.
CHEMTURA CORP: S&P Places BB+ Corp. Rating on Watch Developing
--------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'BB+'
corporate credit and senior unsecured debt ratings of Chemtura
Corp. on CreditWatch with developing implications, following the
recent announcement that management is considering strategic
alternatives, including sale or merger of the company.
Alternatives under consideration also include select business
divestitures, acquisitions, or changes to its capital structure.
The CreditWatch with developing implications means S&P could
raise, lower, or affirm the ratings, depending on management's
actions. The company's diversified portfolio of specialty and
industrial chemical businesses (generating annual revenues of
roughly US$3.7 billion) presents management with a range of
options.
"We would lower the ratings if a leveraged buyout of the firm
were to occur or if management was unable to find an interested
buyer for the entire business and Chemtura's credit fundamentals
deteriorated during this review process," said S&P's credit
analyst Wesley E. Chinn. "Conversely, we would raise the
ratings if a substantially stronger entity acquired Chemtura,
but this does not appear to have a high probability."
Management could continue to sell assets and use proceeds for
debt reduction as well as share repurchases, but the business
profile would suffer. Currently, S&P views the direction of
credit quality as having a significantly greater bias on the
downside versus upside prospects.
This announcement, which throws into question management's
intermediate-term financial policies, occurs at a time when the
company's credit quality metrics, including the key funds from
operations to adjusted debt ratio, are substandard for the
current ratings. Recent overall earnings were disappointing and
debt reduction for 2007 will be less-than-expected. S&P expects
the ratio of funds from operations to adjusted debt to finish
2007 at less than 20%, versus the 25% target. Cost-cutting
initiatives and the divestiture of noncore operations are near-
term positives for earnings and operating margins. On the other
hand, challenging conditions in the polymer additives business,
elevated raw material costs, and other factors viewed against
the backdrop of the company's aggressive debt load could
constrain to a meaningful extent the anticipated strengthening
of financial measures during 2008.
S&P will resolve the CreditWatch when information becomes
available regarding the company's plans, including any potential
change in ownership that would result from management's review
of possible transactions.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products. The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and The United Kingdom.
INTERMEC TECH: Names David Jones as Global Services Vice Pres.
--------------------------------------------------------------
Intermec Technologies Inc. has appointed David Jones as its Vice
President and General Manager, Global Services.
Mr. Jones is an accomplished executive with twenty-one years of
critical business leadership and experience in the areas of
global service, network management services and systems
integration.
Mr. Jones was most recently at Motorola, Inc. where he was Vice
President of Global Service Delivery. During his twenty-one
year tenure, he was responsible for Motorola's global service
and support network providing critical repair and optimization
service delivery to thousands of global customers.
"Our Global Service offerings are strategically significant to
accelerating profitable growth and margin expansion," said
Michael A. Wills, SVP of Global Sales and Service. "I'm
confident that Dave will be an outstanding addition to our
management team based on his considerable experience and
tangible proven results."
About Intermec Inc.
Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets. Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.
The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, Singapore and the United Kingdom.
* * *
Standard & Poor's Rating Services raised its ratings on Everett,
Washington-based Intermec Inc. to 'BB-' from 'B+'. The upgrade
reflects expectations that Intermec will sustain current levels
of profitability and leverage. S&P said the outlook is stable.
SYNIVERSE TECHNOLOGIES: Completes BSG Wireless Acquisition
----------------------------------------------------------
Syniverse Technologies has closed its acquisition of the
wireless services business of Billing Services Group Limited.
The combined company serves more than 500 customers in over 100
countries with the industry's broadest suite of voice and data
roaming, financial clearinghouse, messaging, and signaling
services.
"This acquisition significantly expands Syniverse's global
footprint and adds a world-class financial settlement platform
to our industry-leading suite of services," said Tony Holcombe,
President and Chief Executive Officer, Syniverse. "The
combination of Syniverse and BSG Wireless also will lead to
increased operating efficiencies, and we expect to realize $12
million of annual cost synergies within two years."
The former BSG Wireless operations will become part of
Syniverse's EMEA organization and will be led by Eugene Bergen
Henegouwen, Executive Vice President, EMEA, Syniverse.
Bergen Henegouwen said the acquisition will enable Syniverse to
provide increasingly superior products and services over the
long term.
"The blend of Syniverse and BSG Wireless know-how will allow us
to deliver mobile operators even higher levels of expertise and
innovative solutions while addressing their needs for a trusted
one-stop shop for both data clearing and financial clearing
services," he said.
The transaction was funded through the draw down of the
company's amended and restated credit facility completed in
August 2007. Included in the facility were a delayed draw term
loan of US$160 million in aggregate principal and a Euro-
denominated delayed draw term loan facility of the equivalent of
US$130 million intended to finance this acquisition.
About Syniverse
Syniverse Technologies Inc. in Tampa, Florida (NYSE: SVR)
-- http://www.syniverse.com/-- provides technology services for
wireless telecommunications companies. Its integrated suite of
services include technology interoperability services, which
enable the invoicing and settlement of domestic and
international wireless roaming telephone calls and wireless data
events; SMS and MMS routing and translation services between
carriers; and interactive video and mobile broadband solutions,
prepaid applications, and roaming services. Celebrating its
20th anniversary in 2007, Syniverse has offices in major cities
around the globe. Syniverse is ISO 9001:2000 certified and TL
9000 approved, adhering to the principles of customer focus and
quality improvement practices. The company has its
international offices in the Netherlands, China, Japan and
Singapore, among others.
* * *
As reported by the Troubled Company Reporter on June 29, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating, along with its stable outlook, and its 'B' senior
subordinated debt rating on Tampa, Florida-based Syniverse
Technologies Inc. At the same time, Standard & Poor's assigned
its 'BB' bank loan rating and '2' recovery rating to Syniverse's
proposed US$489 million senior secured bank facility. The bank
loan rating, which is one notch above the corporate credit
rating, along with the '2' recovery rating, reflect our
expectation for substantial (70%-90%) recovery of principal by
creditors in the event of a payment default.
===============
T H A I L A N D
===============
TOTAL ACCESS: Eyes Major Investments in 2008
--------------------------------------------
Total Access Communications PCL will make new investments in
2008, including a major investment in third-generation mobile
services and international direct dialing, the Bangkok Post
reports.
According to the report, the company is moving into IDD to focus
on its three core businesses: domestic and international voice
calls, and broadband.
The company will also invest in 3g infrastructure by getting a
new license or upgrading its existing 2G network, the Post adds.
Total Access Communications, DTAC -- http://www.dtac.co.th/--
is the second-largest cellular operator in Thailand with an
approximately 30% market share and strong brand recognition.
With Telenor's recent purchase of a 39.9% interest in United
Communication Industry Plc and its subsequent tender offers for
UCOM and DTAC shares, Telenor lifted its aggregate economic
interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest
acquisition in Asia and it ranks second in terms of EBITDA
contribution outside Norway.
* * *
The Troubled Company Reporter-Asia Pacific reported on April 3,
2006, that Moody's Investors Service upgraded its corporate
family and senior unsecured rating for Total Access
Communications Public Co Ltd to Ba1 from Ba2 with a positive
outlook. This concluded the review for possible upgrade
commenced on October 21, 2005.
Standard and Poor's gave the company a BB+ Long-term local and
foreign issuer credit ratings.
Fitch Ratings on July 18, 2006, affirmed DTAC's Long-term
foreign currency Issuer Default Rating at BB+ and National Long-
term rating at A(tha). The company's National Short-term rating
was also affirmed at F1(tha). The Outlook on the ratings is
Stable.
TRUE CORP: Moody's Affirms B1 Corporate Family & Bond Ratings
-------------------------------------------------------------
Moody's Investors Service has affirmed the B1 corporate family
ratings and senior unsecured bond ratings of True Corporation
Public Company Limited and True Move Company Limited.
At the same time, Moody's has changed the outlook on the
ratings to negative from stable. The change in outlook follows
True Corp's recent announcement of a THB3.0 billion equity
injection, through a rights issue, from its 30% shareholder, the
Charoen Pokphand Group, into its cellular subsidiary True Move.
This equity injection has reduced True Corp's stake in True Move
from 98.2% to 75.3%.
"The cash injection into True Move, while positive, continues,
in Moody's view, to highlight the company's fragile cash flow
and parlous liquidity profile," says Laura Acres, a Moody's Vice
President. Under the terms of the deal, effectively a bridge
loan structure, True Corp will have the option to buy-back the
shares on a cost-plus 18% basis over the course of the next 18
months; if not exercised, the CP Group may, at expiry, exercise
its own put option on the shares to True Corp.
"True Corp has indicated its commitment to buy back under the
deal, which will place slightly negative pressure on the
company's financial metrics and raises the issue of shareholder
interests being put ahead of creditor interests," adds Acres,
also Moody's Lead Analyst for both companies.
"Furthermore, True Corp's and True Move's financial metrics
continue to be affected by ongoing challenges in executing their
business plans in the competitive cellular market," says Acres,
adding, "Although there has been some improvement so far this
year, particularly on debt reorganization for both companies,
their financial profiles remain under pressure with little
headroom to meet the financial covenants of their loan
facilities."
Given the negative outlook, it is unlikely that the ratings will
be upgraded in the near term. However, the ratings outlook
could revert to stable if True Corp and True Move display a
consistent ability to achieve their projected results and comply
with their financial covenants. Moody's would also look for
outstanding regulatory issues, particularly with regard to the
disputes with TOT, to be resolved.
The most immediate likely driver of negative rating action is if
True Corp fails to successfully negotiate a revised amortization
schedule with its banks, such that it continues to rely on
covenant waivers. The ratings would also experience downward
pressure if True Move or True Corp seek any further waivers for
their financial covenants; or either seek to increase leverage,
such that adjusted debt/EBITDA exceeds 5.0x.
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.
TRUE MOVE: Moody's Affirms B1 Corporate Family & Bond Ratings
---------------------------------------------------------------
Moody's Investors Service has affirmed the B1 corporate family
ratings and senior unsecured bond ratings of True Corporation
Public Company Limited and True Move Company Limited.
At the same time, Moody's has changed the outlook on the
ratings to negative from stable. The change in outlook follows
True Corp's recent announcement of a THB3.0 billion equity
injection, through a rights issue, from its 30% shareholder, the
Charoen Pokphand Group, into its cellular subsidiary True Move.
This equity injection has reduced True Corp's stake in True Move
from 98.2% to 75.3%.
"The cash injection into True Move, while positive, continues,
in Moody's view, to highlight the company's fragile cash flow
and parlous liquidity profile," says Laura Acres, a Moody's Vice
President. Under the terms of the deal, effectively a bridge
loan structure, True Corp will have the option to buy-back the
shares on a cost-plus 18% basis over the course of the next 18
months; if not exercised, the CP Group may, at expiry, exercise
its own put option on the shares to True Corp.
"True Corp has indicated its commitment to buy back under the
deal, which will place slightly negative pressure on the
company's financial metrics and raises the issue of shareholder
interests being put ahead of creditor interests," adds Acres,
also Moody's Lead Analyst for both companies.
"Furthermore, True Corp's and True Move's financial metrics
continue to be affected by ongoing challenges in executing their
business plans in the competitive cellular market," says Acres,
adding, "Although there has been some improvement so far this
year, particularly on debt reorganization for both companies,
their financial profiles remain under pressure with little
headroom to meet the financial covenants of their loan
facilities."
Given the negative outlook, it is unlikely that the ratings will
be upgraded in the near term. However, the ratings outlook
could revert to stable if True Corp and True Move display a
consistent ability to achieve their projected results and comply
with their financial covenants. Moody's would also look for
outstanding regulatory issues, particularly with regard to the
disputes with TOT, to be resolved.
The most immediate likely driver of negative rating action is if
True Corp fails to successfully negotiate a revised amortization
schedule with its banks, such that it continues to rely on
covenant waivers. The ratings would also experience downward
pressure if True Move or True Corp seek any further waivers for
their financial covenants; or either seek to increase leverage,
such that adjusted debt/EBITDA exceeds 5.0x.
True Move, a subsidiary of True Corporation Plc, Thailand's only
fully integrated communications solutions provider, convergence
solutions leader, and premier lifestyle enabler, offers
innovative and high quality wireless communications services on
its nationwide 1800MHz network to 8.1 million subscribers
(March, 2007) throughout Thailand. True Move's vision is to
create a pioneering wireless hi-speed lifestyle where people can
communicate as well as access knowledge, information, and
entertainment whenever, wherever, and however they wish. The
company delivers superior coverage, quality, and best value
services, leveraging its relationships with True Corporation and
the CP Group. True Move offers unique integrated products and
services to the Thai market. For more information please visit
http://www.truemove.com/or http://www.truecorp.co.th/
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
January 10, 2008
Turnaround Management Association
Distressed Debt Panel
University Club, Jacksonville, Florida
January 10, 2008
Turnaround Management Association
NJTMA Holiday Party
Iberia Tavern & Restaurant, Newwark, New Jersey
Telephone: 908-575-7333
Web site: http://www.turnaround.org/
January 11, 2008
Turnaround Management Association
Annual Lenders Panel
Westin Buckhead, Atlanta, Georgia
Web site: http://www.turnaround.org/
January 16, 2008
Turnaround Management Association
Current Outlook: Workouts, Lending and Turnarounds
Marriott North, Fort Lauderdale, Florida
Web site: http://www.turnaround.org/
January 17-18, 2008
American Bankruptcy Institute
Caribbean Insolvency Symposium
Westin Diplomat, Hollywood, Florida
Web site: http://www.abiworld.org/
January 28, 2008
Turnaround Management Association
Finding Money: Int'l Asset Search and
Recovery Methods for Collecting Judgments
Centre Club, Tampa, Florida
Web site: http://www.turnaround.org/
February 7, 2008
Turnaround Management Association
PowerPlay
Philips Arena, Atlanta, Georgia
Telephone: 678-795-8103
Web site: http://www.turnaround.org/
February 7, 2008
Turnaround Management Association
Breakfast Event
Carnelian Room, San Francisco, California
Telephone: 510-346-6000 ext 226
Web site: http://www.turnaround.org/
February 7, 2008
Turnaround Management Association
PowerPlay
Philips Arena, Atlanta, Georgia
Telephone: 678-795-8103
Web site: http://www.turnaround.org/
February 14-16, 2008
American Bankruptcy Institute
13th Annual Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colorado
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/
February 19, 2008
Moody's Investors Service
Financial Statement Adjustments and Ratios
Singapore
Web site: http://www.moodys.com/trainingservices
February 20-21, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Singapore
Web site: http://www.moodys.com/trainingservices
February 22, 2008
American Bankruptcy Institute
Bankruptcy Battleground West
Fairmont Miramar, Santa Monica, California
Web site: http://www.abiworld.org/
February 23-26, 2008
Norton Institutes on Bankruptcy Law
Bankruptcy Litigation Seminar I
Park City, Utah
Web site: http://www.nortoninstitutes.org/
February 26, 2008
Turnaround Management Association
Retail Panel
Citrus Club, Orlando, Florida
Web site: http://www.turnaround.org/
February 27-28, 2008
Euromoney Institutional Investor
6th Annual Distressed Investing Forum
Union League Club, New York, New York
Web site: http://www.euromoneyplc.com/
March 6-8, 2008
ALI-ABA
Fundamentals of Bankruptcy Law
Mandalay Bay Resort, Las Vegas, Nevada
Web site: http://www.ali-aba.org/
March 8-10, 2008
American Bankruptcy Institute
Conrad Duberstein Moot Court Competition
St. John's University School of Law, New York
Web site: http://www.abiworld.org/
March 12-14, 2008
Moody's Investors Service
Corporate Credit Analysis Series: General Corporate Credit
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
March 17-18, 2008
Moody's Investors Service
High Yield and Leveraged Finance Credit Analysis
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
March 19, 2008
Turnaround Management Association
South Florida Dinner
Bankers Club of Miami, Florida
Telephone: 561-882-1331
Web site: http://www.turnaround.org/
March 25, 2008
Turnaround Management Association
Luncheon - Maggie Good
Centre Club, Tampa, Florida
Telephone: 561-882-1331
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
March 27-30, 2008
Norton Institutes on Bankruptcy Law
Bankruptcy Litigation Seminar II
Las Vegas, Nevada
Web site: http://www.nortoninstitutes.org/
April 2-4, 2008
Moody's Investors Service
Fundamentals of Debt Capital Markets and Instruments
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
April 3, 2008
International Women's Insolvency & Restructuring Confederation
Annual Spring Luncheon
Renaissance Hotel, Washington, District of Columbia
Telephone: 703-449-1316
Web site: http://www.iwirc.org
April 3, 2008
American Bankruptcy Institute
Nuts and Bolts for Young Practitioners - East
The Renaissance, Washington, District of Columbia
Web site: http://www.abiworld.org/
April 3-6, 2008
American Bankruptcy Institute
26th Annual Spring Meeting
The Renaissance, Washington, District of Columbia
Web site: http://www.abiworld.org/
April 7-8, 2008
Moody's Investors Service
Introduction to Collateralised Debt Obligations (CDOs)
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
April 10-11, 2008
Moody's Investors Service
Introduction to Credit Derivatives - Structures &
Applications
Singapore
Web site: http://www.moodys.com/trainingservices
April 14-15, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Beijing, China
Web site: http://www.moodys.com/trainingservices
April 17-18, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Shanghai, China
Web site: http://www.moodys.com/trainingservices
April 25-27, 2008
National Association of Bankruptcy Judges
NABT Spring Seminar
Eldorado Hotel & Spa, Santa Fe, New Mexico
Web site: http://www.nabt.com/
May 1-2, 2008
American Bankruptcy Institute
Debt Symposium
Hilton Garden Inn, Champagne/Urbana, Illinois
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/
May 5-6, 2008
Moody's Investors Service
Islamic Bank Analysis
Hong Kong
Web site: http://www.moodys.com/trainingservices
May 7-9, 2008
Moody's Investors Service
Bank Credit Risk Analysis
Hong Kong
Web site: http://www.moodys.com/trainingservices
May 9, 2008
American Bankruptcy Institute
Nuts and Bolts for Young Practitioners - NYC
Alexander Hamilton U.S. Custom House, New York
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/
May 12, 2008
American Bankruptcy Institute
New York City Bankruptcy Conference
Millennium Broadway Hotel & Conference Center, New York
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/
May 12-14, 2008
Moody's Investors Service
Bank Credit Risk Analysis
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
May 13-16, 2008
American Bankruptcy Institute
Litigation Skills Symposium
Tulane University, New Orleans, Louisiana
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/
May 18-20, 2008
International Bar Association
14th Annual Global Insolvency & Restructuring Conference
Stockholm, Sweden
Web site: http://www.ibanet.org/
May 20-21, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Seoul, South Korea
Web site: http://www.moodys.com/trainingservices
May 22, 2008
Moody's Investors Service
Financial Statement Adjustments and Ratios
Seoul, South Korea
Web site: http://www.moodys.com/trainingservices
June 2-4, 2008
Moody's Investors Service
Corporate Credit Analysis Series: General Corporate Credit
Singapore
Web site: http://www.moodys.com/trainingservices
June 5, 2008
Moody's Investors Service
Financial Statement Adjustments and Ratios
Hong Kong
Contact: http://www.moodys.com/trainingservices
June 4-7, 2008
Association of Insolvency & Restructuring Advisors
24th Annual Bankruptcy & Restructuring Conference
J.W. Marriott Spa and Resort, Las Vegas, Nevada
Web site: http://www.airacira.org/
June 12-14, 2008
American Bankruptcy Institute
15th Annual Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Web site: http://www.abiworld.org/
June 18-20, 2008
Moody's Investors Service
Bank Credit Risk Analysis
Singapore
Web site: http://www.moodys.com/trainingservices
June 19-21, 2008
ALI-ABA
Partnerships, LLCs, and LLPs: Uniform Acts, Taxation,
Drafting, Securities, and Bankruptcy
Omni Hotel, San Francisco, California
Web site: http://www.ali-aba.org/
June 23, 2008
Moody's Investors Service
Hedge Fund Analysis
Singapore
Web site: http://www.moodys.com/trainingservices
June 24-25, 2008
Moody's Investors Service
Sovereign and Sub-Sovereign Analysis
Singapore
Web site: http://www.moodys.com/trainingservices
June 26, 2008
Moody's Investors Service
Economic Capital: Pillar II and ICAAP under Basel II
Singapore
Web site: http://www.moodys.com/trainingservices
June 26-29, 2008
Norton Institutes on Bankruptcy Law
Western Mountains Bankruptcy Law Seminar
Jackson Hole, Wyoming
Web site: http://www.nortoninstitutes.org/
July 1-2, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
July 3, 2008
Moody's Investors Service
Financial Statement Adjustments and Ratios
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
July 4, 2008
Moody's Investors Service
Analyzing and Rating Hybrid Securities
Sydney, Australia
Web site: http://www.moodys.com/trainingservices
July 10-13, 2008
American Bankruptcy Institute
16th Annual Northeast Bankruptcy Conference
Ocean Edge Resort
Brewster, Massachussets
Web site: http://www.abiworld.org/events
July 31 - Aug. 2, 2008
American Bankruptcy Institute
4th Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, Maryland
Web site: http://www.abiworld.org/
August 16-19, 2008
American Bankruptcy Institute
13th Annual Southeast Bankruptcy Workshop
Ritz-Carlton, Amelia Island, Florida
Web site: http://www.abiworld.org/
August 20-24, 2008
National Association of Bankruptcy Judges
NABT Convention
Captain Cook, Anchorage, Alaska
Web site: http://www.nabt.com/
September 4-5, 2008
American Bankruptcy Institute
Complex Financial Restructuring Program
Four Seasons, Las Vegas, Nevada
Web site: http://www.abiworld.org/
September 4-6, 2008
American Bankruptcy Institute
Southwest Bankruptcy Conference
Four Seasons, Las Vegas, Nevada
Web site: http://www.abiworld.org/
September 8, 2008
Moody's Investors Service
Financial Statement Adjustments and Ratios
Hong Kong
Web site: http://www.moodys.com/trainingservices
September 22-23, 2008
Moody's Investors Service
High Yield and Leveraged Finance Credit Analysis
Singapore
Web site: http://www.moodys.com/trainingservices
September 24-26, 2008
International Women's Insolvency & Restructuring Confederation
IWIRC 15th Annual Fall Conference
Scottsdale, Arizona
Web site: http://www.ncbj.org/
September 24-27, 2008
National Conference of Bankruptcy Judges
National Conference of Bankruptcy Judges
Desert Ridge Marriott, Scottsdale, Arizona
Web site: http://www.iwirc.org/
October 9, 2008
Turnaround Management Association
TMA Luncheon - Chapter 11
University Club, Jacksonville, Florida
Web site: http://www.turnaround.org/
October 15-16, 2008
Moody's Investors Service
High Yield and Leveraged Finance Credit Analysis
Seoul, South Korea
Web site: http://www.moodys.com/trainingservices
October 22-23, 2008
Moody's Investors Service
Securities Firms Analysis \u2013 Including Broker-Dealers
Hong Kong
Web site: http://www.moodys.com/trainingservices
October 24, 2008
Moody's Investors Service
Hedge Fund Analysis
Hong Kong
Web site: http://www.moodys.com/trainingservices
October 27, 2008
Moody's Investors Service
Economic Capital: Pillar II and ICAAP under Basel II
Hong Kong
Web site: http://www.moodys.com/trainingservices
October 28-29, 2008
Moody's Investors Service
Sovereign and Sub-Sovereign Analysis
Hong Kong
Web site: http://www.moodys.com/trainingservices
October 28-29, 2008
Moody's Investors Service
High Yield and Leveraged Finance Credit Analysis
Hong Kong
Web site: http://www.moodys.com/trainingservices
October 28-31, 2008
Turnaround Management Association - Australia
TMA 2008 Annual Convention
New Orleans Marriott, New Orleans, LA, USA
e-mail: livaldi@turnaround.org
November 4-5, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Hong Kong, China
Web site: http://www.moodys.com/trainingservices
November 11-12, 2008
Moody's Investors Service
Introduction to Collateralised Debt Obligations (CDOs)
Hong Kong
Web site: http://www.moodys.com/trainingservices
November 13-14, 2008
Moody's Investors Service
Introduction to Credit Derivatives-Structures & Applications
Hong Kong
Web site: http://www.moodys.com/trainingservices
November 17-19, 2008
Moody's Investors Service
Fundamentals of Debt Capital Markets and Instruments
Singapore
Web site: http://www.moodys.com/trainingservices
November 17-18, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Beijing, China
Web site: http://www.moodys.com/trainingservices
November 20-21, 2008
Moody's Investors Service
Corporate Credit Rating Analysis
Shanghai, China
Web site: http://www.moodys.com/trainingservices
December 3-5, 2008
American Bankruptcy Institute
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, Arizona
Web site: http://www.abiworld.org/
TBA 2008
INSOL
Annual Pan Pacific Rim Conference
Shanghai, China
Web site: http://www.insol.org/
May 7-10, 2009
American Bankruptcy Institute
27th Annual Spring Meeting
Gaylord National Resort & Convention Center
National Harbor, Maryland
Web site: http://www.abiworld.org/
June 11-13, 2009
American Bankruptcy Institute
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Web site: http://www.abiworld.org/
June 21-24, 2009
International Association of Restructuring, Insolvency &
Bankruptcy Professionals
8th International World Congress
TBA
Web site: http://www.insol.org/
July 16-19, 2009
American Bankruptcy Institute
Northeast Bankruptcy Conference
Mt. Washington Inn
Bretton Woods, New Hampshire
Web site: http://www.abiworld.org/
September 10-12, 2009
American Bankruptcy Institute
17th Annual Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nevada
Web site: http://www.abiworld.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
December 3-5, 2009
American Bankruptcy Institute
21st Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Telephone: 1-703-739-0800
Web site: http://www.abiworld.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
Web site: http://www.beardaudioconferences.com/
Audio Conferences CD
Beard Audio Conferences
Distressed Real Estate under BAPCPA
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Changes to Cross-Border Insolvencies
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Healthcare Bankruptcy Reforms
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Calpine's Chapter 11 Filing
Audio Conference Recording
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Beard Audio Conferences
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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Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Employee Benefits and Executive Compensation
under the New Code
Audio Conference Recording
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Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Dana's Chapter 11 Filing
Audio Conference Recording
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Beard Audio Conferences
Reverse Mergers-the New IPO?
Audio Conference Recording
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Beard Audio Conferences
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
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Beard Audio Conferences
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
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Beard Audio Conferences
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
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Beard Audio Conferences
When Tenants File -- A Landlord's BAPCPA Survival Guide
Audio Conference Recording
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Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Distressed Market Opportunities
Audio Conference Recording
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Beard Audio Conferences
Homestead Exemptions under BAPCPA
Audio Conference Recording
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Beard Audio Conferences
BAPCPA One Year On: Lessons Learned and Outlook
Audio Conference Recording
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Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Surviving the Digital Deluge: Best Practices in
E-Discovery and Records Management for Bankruptcy
Practitioners and Litigators
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Deepening Insolvency - Widening Controversy: Current Risks,
Latest Decisions
Audio Conference Recording
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Beard Audio Conferences
KERPs and Bonuses under BAPCPA
Audio Conference Recording
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Beard Audio Conferences
Diagnosing Problems in Troubled Companies
Audio Conference Recording
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Beard Audio Conferences
Equitable Subordination and Recharacterization
Audio Conference Recording
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Web site: http://www.beardaudioconferences.com/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Mark Andre Yapching, Azela Jane Taladua, Rousel
Elaine Tumanda, Valerie Udtuhan, 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 ***