/raid1/www/Hosts/bankrupt/TCRAP_Public/080211.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
Monday, February 11, 2008, Vol. 9, Issue 29
Headlines
A U S T R A L I A
ACTION TILT: Placed Under Voluntary Liquidation
CAMWELL PTY: Members & Creditors to Meet on February 19
DARNOC PTY: Liquidator to Present Wind-Up Report on February 18
DI CANDILO HOLDINGS: Placed Under Voluntary Liquidation
DI CANDILO & SONS: Undergoes Liquidation Proceedings
GIBWAY PTY: Placed Under Voluntary Liquidation
GILETE CSI: Annual General Meeting Set for February 22
MEANDERHAM PTY: Members' Meeting Set for February 18
RMS CORPORATION: Members to Receive Wind-Up Report on Feb. 13
SPENLEIGH INDUSTRIES: Joint Meeting Slated for February 15
C H I N A , H O N G K O N G & T A I W A N
AFFLUENCE PICTURE: Court to Hear Wind-Up Petition on March 28
AQUAMATE SANITARY: Court to Hear Wind-Up Petition on April 2
BRAND NEW: Court to Hear Wind-Up Petition on April 2
CHINA ASIA: Court to Hear Wind-Up Petition on February 27
CHINA HERITAGE: Appoints New Liquidators
CHINA STAR: Court to Hear Wind-Up Petition on February 27
FORTUNATE STAR: Court to Hear Wind-Up Petition on March 5
KAI YIP: Appoints New Liquidators
KWONG YUEN: Creditors' Proofs of Debt Due on February 15
LENG LOI: Appoints New Liquidators
MAXBUSY GROUP: Creditor's Meeting Fixed for February 25
TING CHEONG: Creditor's Meeting Fixed for February 13
YAOHAN BEST: Creditors' Proofs of Debt Due on February 15
I N D I A
BANK OF INDIA: Raises INR1,360 Crore from Share Issue
BPL LTD: Net Loss Tripled to INR294 Mil. in Oct.-Dec. 2007
GMAC LLC: Financial Unit Posts US$724MM Net Loss in Fourth Qtr.
RPG LIFE: Fixes Feb. 22 as Record Date for Scheme of Arrangement
TATA POWER: To Penetrate Infrastructure Sector
I N D O N E S I A
BANK CENTRAL: Doubles Number of Shares to be Repurchased
BANK DANAMON: Plans To Issue Bonds for IDR2.25 Trillion
BANK MANDIRI: To Delay US$300-Million Bond Issue
BANK NIAGA: To Sell IDR500 Billion of Schroder's Fund
BANK PERMATA: Develops Mobile Token
J A P A N
JAPAN AIRLINES: Reports JPY20.4BB Income for First Nine Months
JAPAN AIRLINES: Chairman to Leave Post on March 31
OKI ELECTRIC: Signs Marketing Deal with Alcatel-Lucent
SOFTBANK CORP: Posts JPY46.7BB Net Income in Qtr. Ended Dec. 31
SOFTBANK CORP: Considering Next Move In Light of Microsoft's Bid
K O R E A
DURA AUTOMOTIVE: To Bypass Executives from 2008 Bonuses
DURA AUTO: Reaches Settlement Pact w/ Nyloncraft for US$2 Mil.
KOREAN EXPRESS: KDB Sells 3.43% Company Stake
SSAMZIE: Discloses Conversion of 10th Bonds to 3,112 Shares
SSAMZIE CO: Signs License Agreement with Korea Company
* KOREA: Korean Banks Lose US$563 Million from Subprime Hit
M A L A Y S I A
ELECTRONIC DATA: To Pay US$0.05 Per Share Dividend on March 10
KNOLL INC: Reports US$20.7-Mln Net Income in Fourth Quarter 2007
MEGAN MEDIA: May Wind Up Operations After Creditor Talks Failed
SOLUTIA INC: Aims to Assume Wal-Mart Deals Under Terms of Plan
SOLUTIA INC: Files Suit to Enforce Exit Financing Commitment
N E W Z E A L A N D
24 HOURS: Levin & Vance Replace Fatupaito, McCloy as Liquidators
ALPHA AVIATION: Commences Liquidation Proceedings
BEAZLEY BROS: Wind-Up Petition Hearing Set for Today
CALEB H CONTRACTING: Wind-Up Petition Hearing Set for Feb. 20
CER GROUP: Sales Revenue in 2007 Rose 31% to NZ$8.1 Million
CONNECT SYSTEMS: Creditors' Proofs of Debt Due on Feb. 21
CONTINENTAL PANEL: Taps Crichton & Horne as Liquidators
DREAM PROPERTY: Subject to CIR's Wind-Up Petition
DUKE STREET: Court to Hear Wind-Up Petition on February 14
NO BAD PIZZAS: Fixes March 21 as Last Day to File Claims
SALEPRO PLASTICS: Appoints Vance & Levin as Liquidators
SALES & PROMOTIONS: Fixes February 21 as Last Day to File Claims
WELLINGTON STEEL: Taps Shephard & Dunphy as Liquidators
P H I L I P P I N E S
WENDY'S INT'L: Earnings at US$14 Mil. in Qtr. Ended Dec. 30
S I N G A P O R E
ASSOCIATED DEVELOPMENT: Contributories to Meet on February 15
BENCHMARK ELECTRONICS: Earns US$21 Mil. in Fourth Quarter 2007
CHOW CHO: Contributories' Meeting Set for February 15
GUAN GUAN: Creditors' Proofs of Debt Due on February 29
POLYONE CORP: Earns US$7.1 Million in 2007 Fourth Quarter
SEA CONTAINERS: Inks Pact with Two Pension Schemes Trustees
SEA CONTAINERS: Court Approves SC Iberia & YMCL Guarantees
SEAGATE TECH: Board of Directors OK's US$2.5BB Share Repurchase
SEAGATE TECHNOLOGY: S&P's BB+ Rating Unmoved by Share Repurchase
- - - - -
=================
A U S T R A L I A
=================
ACTION TILT: Placed Under Voluntary Liquidation
-----------------------------------------------
Action Tilt Tray & Low Loader Services Pty Ltd.'s members agreed
on December 20, 2007, to voluntarily liquidate the company's
business. In line with this goal, the company has appointed
Mark Conlan at RSM Bird Cameron Partners to facilitate the sale
of its assets.
The liquidator can be reached at:
Mark Conlan
c/o RSM Bird Cameron Partners
Chartered Accountants
8 St Georges Terrace
Perth, Western Australia 6000
Australia
About Action Tilt
Action Tilt Tray & Low Loader Services Pty Ltd. provides
transportation services. The company is located at Subiaco, in
Western Australia, Australia.
CAMWELL PTY: Members & Creditors to Meet on February 19
-------------------------------------------------------
Camwell Pty Ltd. will hold a joint meeting for its members
and creditors at 2:30 p.m. on February 19, 2008 . During the
meeting, the company's liquidator, Barry Honey at McGrathNicol,
will provide the attendees with property disposal and winding-up
reports.
The liquidator can be reached at:
Barry Honey
McGrathNicol
Level 1, 5 Mill Street
Perth, Western Australia 6000
Australia
Telephone:(08) 6363 7600
Website: http://www.mcgrathnicol.com
About Camwell Pty
Camwell Pty Ltd. operates repair shops. The company is located
at Adelaide, in South Australia, Australia.
DARNOC PTY: Liquidator to Present Wind-Up Report on February 18
---------------------------------------------------------------
Anthony Schiffmann, Darnoc Pty Ltd's appointed estate
liquidator, will meet with the company's members on
February 18, 2008, to provide them with property disposal and
winding-up reports.
The Troubled Company Reporter-Asia Pacific that the company
commenced liquidation proceedings on April 17, 2007.
The liquidator can be reached at:
Anthony Schiffmann
BDO Kendalls
Level 18, 300 Queen Street
Brisbane, Queensland 4000
Australia
About Darnoc Pty
Located at Brisbane, in Queensland, Australia, Darnoc Pty Ltd.
is an investor relation company.
DI CANDILO HOLDINGS: Placed Under Voluntary Liquidation
-------------------------------------------------------
DI Candilo Holdings Pty Ltd's members agreed on
December 28, 2007, to voluntarily liquidate the company's
business. In line with this goal, the company has appointed
Philip Rundell and Darren Weaver at Ferrier Hodgson to
facilitate the sale of its assets.
The liquidators can be reached at:
Philip Rundell
Darren Weaver
Ferrier Hodgson
BankWest Tower, Level 26
108 St Georges Terrace
Perth, Western Australia 6000
Australia
About DI Candilo Holdings
DI Candilo Holdings Pty Ltd is a distributor of fabricated
structural metal. The company is located at Bayswater, in
Western Australia, Australia.
DI CANDILO & SONS: Undergoes Liquidation Proceedings
----------------------------------------------------
DI Candilo & Sons Pty Ltd's members agreed on December 28, 2007,
to voluntarily liquidate the company's business. In line with
this goal, the company has appointed Philip Rundell and Darren
Weaver at Ferrier Hodgson to facilitate the sale of its assets.
The liquidators can be reached at:
Philip Rundell
Darren Weaver
Ferrier Hodgson
BankWest Tower, Level 26
108 St Georges Terrace
Perth, Western Australia 6000
Australia
About DI Candilo & Sons
DI Candilo & Sons Pty Ltd operates metals service centers and
offices. The company is located at Bellevue, in Western
Australia, Australia.
GIBWAY PTY: Placed Under Voluntary Liquidation
----------------------------------------------
Gibway Pty Ltd.'s members agreed on January 3, 2008, to
voluntarily liquidate the company's business. In line with this
goal, the company has appointed Allan Davie at Charts Partners
Pty Ltd to facilitate the sale of its assets.
The Liquidator can be reached at:
Allan Davie
Charts Partners Pty Ltd
GPO Box 2168
Brisbane, Queensland 4001
Australia
About Gibway Pty
Located at Brisbane, in Queensland, Australia, Gibway Pty Ltd is
an investor relation company.
GILETE CSI: Annual General Meeting Set for February 22
------------------------------------------------------
Gilete CSI Pty Ltd will have its annual general meeting on
February 22, 2008, at 2:30 p.m.
During the meeting, the creditors will be asked to:
-- resolve to approve the compromise of the debt owed by
Colisa Pty Ltd to Gilete CSI;
-- resolve to approve the remuneration of the liquidators
pursuant to Section 473(3)(b)(i) of the Corporations Act
2001; and
-- receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Martin Jones
Ferrier Hodgson
BankWest Tower, Level 26
108 St Georges Terrace
Perth, Western Australia
Australia
About Gilete CSI
Located at Joondalup, in Western Australia, Australia, Gilete
CSI Pty Ltd is an investor relation company.
MEANDERHAM PTY: Members' Meeting Set for February 18
----------------------------------------------------
M. G. Mccann, Meanderham Pty Ltd.'s appointed estate liquidator
will meet with the company's members on February 18, 2008, at
9:30 a.m., to provide them with property disposal and winding-up
reports.
As reported by the Troubled Company Reporter-Asia Pacific, the
company commenced liquidation proceedings on June 28, 2007.
The liquidator can be reached at:
M. G. Mccann
Grant Thornton
Chartered Accountants
Ground Floor, 102 Adelaide Street
Brisbane, Queensland 4000
Australia
About Meanderham Pty
Meanderham Pty Ltd., which is also trading as Townsville
Travelodge, operates hotels and motels. The company is located
at Townsville, in Queensland, Australia.
RMS CORPORATION: Members to Receive Wind-Up Report on Feb. 13
-------------------------------------------------------------
I. C. Francis, RMS Corporation Pty Ltd's appointed estate
liquidator, will meet with the company's members on
Feb. 13, 2008, at 11:00 a.m., to provide them with property
disposal and winding-up reports.
The liquidator can be reached at:
I. C. Francis
Taylor Woodings Chartered Accountants
30 The Esplanade, Level 6
Perth, Western Australia 6000
Australia
About RMS Corporation
RMS Corporation Pty Ltd operates non-classifiable
establishments. The company is located at Redcliffe, in Western
Australia, Australia.
SPENLEIGH INDUSTRIES: Joint Meeting Slated for February 15
----------------------------------------------------------
Spenleigh Industries Pty Limited will hold a joint meeting for
its members and creditors at 11:00 a.m. on February 15, 2008.
During the meeting, the company's liquidator, Peter A. Lucas
at P. A. Lucas & Co., will provide the attendees with property
disposal and winding-up reports.
The liquidator can be reached at:
Peter A. Lucas
P. A. Lucas & Co.
Chartered Accountants
ING Building, Level 8
100 Edward Street
Brisbane, Queensland 4000
Australia
About Spenleigh Industries
Spenleigh Industries Pty Limited is a distributor of wood
kitchen cabinets. The company is located at Underwood, in
Queensland, Australia.
================================================
C H I N A , H O N G K O N G & T A I W A N
================================================
AFFLUENCE PICTURE: Court to Hear Wind-Up Petition on March 28
------------------------------------------------------------
On January 10, 2008, Fortunate ChinaStar Overseas Limited was
petitioned to have its operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
March 26, 2008, to hear the petition.
The petitioners' solicitor can be reached at:
Maurice Lee, Tsang
Ng-Quinn & Tang
Rooms 1804-6 Wing On House
71 Des Voeux Road
Central, Hong Kong
AQUAMATE SANITARY: Court to Hear Wind-Up Petition on April 2
------------------------------------------------------------
On February 1, 2008, Paul Edward Dixon filed a petition to have
Aquamate Sanitary Ware Europe Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
April 2, 2007, to hear the petition.
The petitioners' solicitor can be reached at:
Robertsons
57th Floor
The Center
99 Queen's Road
Central, Hong Kong
BRAND NEW: Court to Hear Wind-Up Petition on April 2
----------------------------------------------------
On February 1, 2008, Tse Hing Fai filed a petition to have Brand
New Technology Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
April 2, 2008, to hear the petition.
The petitioners' solicitor can be reached at:
Robertsons
57th Floor
The Center
99 Queen's Road
Central, Hong Kong
CHINA ASIA: Court to Hear Wind-Up Petition on February 27
---------------------------------------------------------
On November 30, 2007, Gwenny So Ling Chee filed a petition to
have China Star (Asia) Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
February 27, 2008, to hear the petition.
The petitioners' solicitor can be reached at:
Fairbairn Catley Low & Kong
3rd Floor, Gloucester Tower
The Landmark
15 Queen's Road
Central, Hong Kong
CHINA HERITAGE: Appoints New Liquidators
----------------------------------------
The shareholders of China Heritage Arts Foundation Limited met
on January 16, 2008, and appointed Angus Hamish Forsyth as the
company's liquidators.
The liquidator can be reached at:
Angus Hamish Forsyth
4th Floor and 5th Floor
Central Tower
28 Queen's Road
Central, Hong Kong
CHINA STAR: Court to Hear Wind-Up Petition on February 27
---------------------------------------------------------
On November 30, 2007, Gwenny So Ling Chee filed a petition to
have Fortunate ChinaStar Overseas Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
February 27, 2008, to hear the petition.
The petitioners' solicitor can be reached at:
Fairbairn Catley Low & Kong
3rd Floor, Gloucester Tower
The Landmark
15 Queen's Road
Central, Hong Kong
FORTUNATE STAR: Court to Hear Wind-Up Petition on March 5
---------------------------------------------------------
On January 4, 2008, Dah Sing Bank Limited filed a petition to
have Fortunate Star Development Company Limited's operations
wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
March 5, 2008, to hear the petition.
The petitioners' solicitor can be reached at:
K.B. Chau & Co
16th Floor
Wing Lung Bank Building
45 Des Voeux Road
Central, Hong Kong
KAI YIP: Appoints New Liquidators
---------------------------------
The shareholders of Kai Yip Manufactory Limited met on
January 31, 2008, and appointed Chan Chi Keung as the
company's liquidators.
The liquidator can be reached at:
Chan Chi Keung
Flat B, 12th Floor
Block E
Wylie Court, 21 Wylie Path
Ho Man Tin
Kowloon, Hong Kong
KWONG YUEN: Creditors' Proofs of Debt Due on February 15
--------------------------------------------------------
The creditors of Kwong Yuen Construction Company Limited are
required to file their proofs of debt by February 15, 2008, to
be included in the company's dividend distribution.
The company's liquidators are:
Stephen Briscoe
Nicholas Timothy
Cornforth Hill
29th Floor, Ccaroline Centre
Lee Gardens Two
28 Yun Ping Road
Hong Kong
LENG LOI: Appoints New Liquidators
----------------------------------------
At a meeting on February 1, 2008, the shareholders of Leng Loi
Limited appointed Kan Tim Hei and Fok Pui Ling Linda as the
company's liquidators.
The liquidators can be reached at:
Angus Hamish Forsyth
Kan Tim Hei
Fok Pui Ling Linda
31st Floor
The Center
99 Queen's Road Central
Hong Kong
MAXBUSY GROUP: Creditor's Meeting Fixed for February 25
-------------------------------------------------------
Jacky CW Muk and Edward S. Middleton, Maxbusy Group Company
Limited's appointed estate liquidators, will meet with the
company's creditors on February 25, 2008, to provide them with
property disposal and winding-up reports.
The liquidators can be reached at:
Jacky CW Muk
Edward S. Middleton
27th Floor
Alexander House
18 Charter Road
Central, Hong Kong
TING CHEONG: Creditor's Meeting Fixed for February 13
-----------------------------------------------------
Lau Lok Chi, Ting Cheong Metal Ware Factory Limited's appointed
estate liquidator, will meet with the company's creditors on
February 13, 2008, to provide them with property disposal and
winding-up reports.
The liquidator can be reached at:
Lau Lok Chi
Auditorium
Duke of Windsor
Social Service Bldg.
15 Hennessy Road
Hong Kong
YAOHAN BEST: Creditors' Proofs of Debt Due on February 15
---------------------------------------------------------
The creditors of Yaohan Best Electrical (HK) Limited are
required to file their proofs of debt by February 15, 2008, to
be included in the company's dividend distribution.
The company's liquidator is:
Kenny King Ching Tam
Room 908
9th Floor
Nan Fung Tower
173 Des Voeux
Road Central, Hong Kong
=========
I N D I A
=========
BANK OF INDIA: Raises INR1,360 Crore from Share Issue
-----------------------------------------------------
Bank of India has raised INR1,359.81 crore from the placement of
its equity shares that closed on Feb. 6, the bank disclosed in a
filing with the Bombay Stock Exchange.
According to the BSE filing, the bank has approved the issuance
of 3,77,72,600 equity shares at a price of INR360 per share of
face value of INR10 (issued at a premium of INR350 each share).
SBI Capital Markets Ltd, A.K. Capital Services Ltd, Edelweiss
Capital Ltd, HSBC Securities and Capital Markets (India) Pvt
Ltd, JM Financial Consultants Pvt Ltd, Kotak Mahindra Capital
Company Ltd and Motilal Oswal Investment Advisors Pvt Ltd acted
as book running lead managers to the issue.
Headquartered in Mumbai, India, Bank of India --
http://www.bankofindia.com-- 2628 branches in India spread over
all states/ union territories, including 93 specialized
branches. The bank provides a range of financial products and
services, including numerous credit schemes, deposit schemes,
cash management services, credit/debit cards, deposit vaults and
corporate bonds. It also extends finance to small and medium
enterprises and small-scale industries. It provides a variety of
loans, such as mortgage loans, educational loans, auto finance
loans, holiday loans, personal loans and home loans. The bank
offers Internet banking services for both the retail and
corporate clients.
The bank operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.
* * *
Moody's Investors Service gave a Ba2 rating to the bank's
Foreign LT Bank Deposits.
BPL LTD: Net Loss Tripled to INR294 Mil. in Oct.-Dec. 2007
----------------------------------------------------------
BPL Ltd. widened its net loss to INR293.8 million in the three
months ended Dec. 31, 2007, from the INR87.8-million loss booked
in the corresponding quarter in 2006.
The worsening bottom line is brought about by decreased revenues
and soaring expenditures. Total income went down to
INR213.2 million in the Oct.-Dec. 2007, from INR256 million in
the same three-month period in 2006. Operating expenditures
soared to INR447.3 million (INR278.8 million in 2006), bringing
the company an operating loss of INR234.1 million.
The bulk of the operating expenditure for the current quarter
under review is from other expenditure aggregating
INR281.4 million. According to the company, other expenditure
includes INR226.9 million written off in investments in shares
held by the company in Sanyo BPL Pvt Ltd due to reduction of
share capital as approved by the High Court of Karnataka.
The company also posted interest charges of INR29.2 million,
depreciation of INR28.7 million and INR1.6 million in taxes.
A copy of the company's financial results for the quarter ended
Dec. 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?27e6
Headquartered in Bangalore, India, BPL Limited manufactures and
distributes consumer electronic products such as televisions,
video tape recorder, audio systems, emergency lanterns,
electrocardiographs and monitors. The Group also manufactures
home appliances like washing machines, refrigerators, vacuum
cleaners, microwave ovens, gas tables, soft energy and consumer
telecom products. Its plants are located at Kerala, Karnataka
and Uttar Pradesh. The Group operates in India.
In 2006, the Company obtained approval from the Kerala High
Court for its financial restructuring scheme and the launch of
the 50:50 joint venture with Sanyo for the CTV business. The
restructuring has allowed BPL to focus and strategize on its
core businesses like mobile phones, entertainment electronics,
medical electronics, engineering plastics and tooling for
automotive and consumer electronics industry. As a part of the
restructuring exercise, BPL had recently sold off its dry cell
business -- which operated through its subsidiary BPL Soft
Energy Systems -- in a INR67 crore deal including liabilities to
the Khaitans of Eveready Industries.
The company incurred at least two consecutive annual net losses
-- INR301.4 million in fiscal year ended March 31, 2007, and
INR2.73 billion in FY2006.
GMAC LLC: Financial Unit Posts US$724MM Net Loss in Fourth Qtr.
---------------------------------------------------------------
GMAC Financial Services reported a 2007 fourth quarter net loss
of US$724 million, compared to net income of US$1 billion in the
fourth quarter of 2006.
The effect on Residential Capital LLC from the continued
disruption in the mortgage, housing and capital markets was the
primary driver of adverse performance. Affecting results in the
quarter were higher credit provision as a percent of assets,
market driven valuation adjustments and increased funding costs
at the company.
Several significant items are reflected in results for the
fourth quarter of 2007, including:
-- US$563 million consolidated gain on the repurchase and
retirement of ResCap debt, of which US$521 million was
recognized at ResCap and US$42 million was recognized at
GMAC;
-- US$438 million gain related to the sale of residual cash
flows and the deconsolidation of several on-balance sheet
securitization structures, which included US$281 million
of current period provision - the effect of this was an
in-period net benefit of US$157 million;
-- US$131 million restructuring charge.
Comparisons to the fourth quarter of 2006 are affected by a
US$791 million gain related to GMAC's conversion to a limited
liability company and a US$570 million capital gain related to
rebalancing the insurance investment portfolio in that period.
Full Year Results
For the full-year 2007, GMAC reported a net loss of
US$2.3 billion, compared to net income of US$2.1 billion for the
full-year 2006. Profitable results in the automotive and
insurance businesses were more than offset by a US$4.3 billion
loss at ResCap.
Comparisons of full-year results are affected by the fourth
quarter significant items previously noted well as goodwill
impairments of US$455 million at ResCap in the third quarter
of 2007 and US$695 million at Commercial Finance in the third
quarter of 2006.
"Losses in the fourth quarter decreased compared to the prior
quarter," Eric Feldstein, GMAC chief executive officer, said.
"However, GMAC's performance throughout 2007 was severely
affected by the ongoing challenges in the mortgage, credit and
capital markets. As a result, 2007 was a year of significant
transformation for the organization -- driving aggressive
actions designed to reduce risk, streamline operations and
rationalize our cost structure. Steps taken included reducing
the balance sheet by US$40 billion, bolstering liquidity,
tightening underwriting standards, significantly restructuring
operations and refocusing our business on core fundamentals.
"We believe the steps taken position the company for future
success," Mr. Feldstein concluded.
Liquidity and Capital
GMAC's consolidated cash and certain marketable securities were
US$22.7 billion as of Dec. 31, 2007, up from US$18.3 billion at
Dec. 31, 2006. Of these total balances, ResCap's consolidated
cash and cash equivalents were US$4.4 billion at year-end, up
from US$2 billion on Dec. 31, 2006.
During the fourth quarter, GMAC purchased in the open market
US$740 million of ResCap debt that was subsequently contributed
to ResCap and retired as a measure to support the capital
position at the mortgage unit.
As of Dec. 31, 2007, ResCap's equity base was US$6 billion,
above the minimum tangible net worth requirements in its credit
facilities, and above the amount expected to be needed to
support its ongoing operations.
In addition, GMAC and ResCap may from time to time continue to
purchase outstanding GMAC or ResCap debt in open market
transactions or otherwise, as part of its liquidity and cash
management strategy.
Strategic Initiatives
GMAC and ResCap continue to investigate strategic alternatives
related to all aspects of ResCap's business. These strategic
alternatives include potential acquisitions as well as
dispositions, alliances, and joint ventures with a variety of
third parties with respect to some of ResCap's businesses.
GMAC and ResCap are in various stages of discussions with
respect to certain of these alternatives, including, in some
cases, execution of confidentiality agreements, indications of
interest, non-binding letters of intent and other exploratory
activities such as preliminary and confirmatory due diligence
and conceptual discussions.
GMAC and ResCap also have engaged advisers to explore the sale
of certain parts of ResCap's operations. There are no
substantive binding contracts, agreements or understandings with
respect to any particular transaction. Further, there can be no
assurances that any of these strategic alternatives will occur,
or if they do, that they will achieve their anticipated
benefits.
At Dec. 31, 2007, the company's total debt amounted to
US$193.15 billion compared to US$236.99 billion in 2006.
About GMAC
GMAC LLC, based in Detroit, is a provider of retail and
wholesale auto financing, auto insurance and warranty products,
and through its wholly-owned subsidiary Residential Capital LLC,
residential mortgage products and services. GMAC reported a
preliminary 2007 fourth quarter consolidated net loss of $724
million. GMAC LLC has a subsidiary in India called GMAC
Financial Services India Limited.
* * *
As reported in the Troubled Company Reporter on Nov. 27, 2007,
Moody's Investors Service placed GMAC LLC's Ba2 senior unsecured
rating on review for possible downgrade. The action was in
response to GMAC's affirmation of support for Residential
Capital LLC, as disclosed in ResCap's Nov. 21, 2007 debt tender
announcement. ResCap's ratings and outlook (Ba3 senior
unsecured, negative outlook) were not affected by the tender
announcement or this GMAC rating action.
As reported in the Troubled Company Reporter on Nov. 16, 2007,
Fitch Ratings has placed GMAC LLC and its related subsidiaries
'BB+' long-term Issuer Default Ratings on Rating Watch Negative.
This action reflects the ongoing pressures in the company's
residential mortgage subsidiary, Residential Capital LLC
(ResCap, IDR 'BB+' by Fitch with Rating Watch Negative).
RPG LIFE: Fixes Feb. 22 as Record Date for Scheme of Arrangement
----------------------------------------------------------------
RPG Life Sciences Ltd has fixed February 22, 2008, as the Record
Date for the purpose of the scheme of arrangement it entered
into with RPG Pharmaceuticals Ltd., Instant Holdings Ltd. and
Instant Trading and Investment Company Ltd.
The Scheme, which the Bombay Court sanctioned in December 2007,
provides for these terms:
1. The company has sold its pharmaceuticals business along
with all assets and liabilities on a going concern basis
to RPG Pharmaceuticals (with effect from April 2, 2007) at
consideration of INR46 crore. In full discharge of this
consideration, RPG Pharmaceuticals will issue equity
shares of face value of INR8 in the ratio of 1:1 to the
shareholders of the company at total premium of
INR34,50,49,200. RPG Pharmaceuticals would list the
equity shares so issued on the Bombay Stock Exchange,
National Stock Exchange and Calcutta Stock Exchange;
2. The company has sold its investments to Instant Holdings
(w.e.f. April 1, 2007) at consideration of INR53 crore.
In full discharge of this consideration, Instant Holdings
would issue 99,50,000 equity shares of face value of INR10
to the company at aggregate premium of INR43.05 crore;
3. Instant Trading, subsidiary of the company, stands
dissolved without winding up; and
4. The company would change its name to "Brabourne
Enterprises Ltd" and "RPG Pharmaceuticals Ltd" would
change its name to "RPG Life Sciences Ltd".
Headquartered in Mumbai, India, RPG Life Sciences Ltd --
http://www.rpglifesciences.com/-- is a full spectrum, world
class, customer focused, innovative pharmaceutical organization.
Formerly known as Searle (India) Ltd., the company develops,
manufactures and markets, for national and international
markets, a broad range of branded formulations, generics and
bulk drugs developed through fermentation and chemical synthesis
routes.
On April 17, 2003, Credit Analysis and Research Limited
downgraded the rating of the outstanding NCD program of
INR145.5 million of RPG Life Sciences rating from CARE BBB to
CARE D. The downgrade is on account of a default in debt
servicing obligations towards institutional investors.
TATA POWER: To Penetrate Infrastructure Sector
----------------------------------------------
Nevin John at The Economic Times writes that Tata Power Company
Ltd. plans to cash in on the booming infrastructure sector using
its engineering and construction competencies.
A Tata Power spokesperson confirmed the plan saying they are
examining opportunities in infrastructure business along with
other Tata Group companies, The Times relates.
According to the news agency, the company made the foray into
the new segment after getting the go signal from its parent,
Tata Sons. Tata Power started the foray with the leading of a
consortium that submitted a bid for the city-side development of
Udaipur airport, Mr. Jonh states. The other members of the
consortium reportedly are Tril Airport Development and Singapore
airport operator Changi.
Tata Power is expected to bid for urban projects, briges and IT
parks and convention centers, The Times adds. The news agency,
citing unnamed sources, says that the company will establish a
separate division for the infrastructure businesses that could
later be reshaped as a subsidiary.
Tata Power Company Ltd. -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area. The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area. The company also has a
plant that supplies power to Tata Steel. In addition, Tata
Power has an 81-MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.
* * *
Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered
its corporate credit rating on India's Tata Power Co. Ltd. to
'BB-' from 'BB+'. S&P said the outlook is stable. At the same
time, the rating on Tata Power's US$300 million senior unsecured
bonds have been lowered to 'BB-' from 'BB+'.
Moody's Investors Service, on July 3, 2007, downgraded the
corporate family rating of Tata Power Company to Ba3 from Ba1.
At the same time, Moody's has downgraded its senior unsecured
bond rating to B1 from Ba2. Moody's said the ratings outlook is
negative.
=================
I N D O N E S I A
=================
BANK CENTRAL: Doubles Number of Shares to be Repurchased
--------------------------------------------------------
PT Bank Central Asia Tbk, in relation to its second share
repurchase program, revise the number of shares to be
repurchased is up to 246,550,100 shares after stock split as
opposed to 123,275,050 shares as disclosed on May 16, 2007,
Reuters Investing Keys reports.
According to the report, the program has an execution period of
18 months from the company's Extraordinary General Meeting dated
May 15, 2007 and will end on November 15, 2008.
PT Trimegah Securities has been appointed to conduct the share
repurchase program, the report adds.
Headquartered in Jakarta, Indonesia, PT Bank Central Asia Tbk
-- http://www.klikbca.com/-- offers individual and business
products and services. The bank's individual services consist
of savings accounts, home loans and car loans, remittance,
collection and safe deposit facilities. The bank's business
services consist of working capital loans, investment loans and
bank guarantee for small and medium-sized enterprises. In
addition, it provides export import facilities such as letters
of credit, negotiation and discounting. The bank's subsidiaries
include PT BCA Finance, BCA Finance Limited and BCA Remittance
Limited. It has 772 branches in Indonesia, Singapore and New
York, 42,958 EDCs and operates 4,425 ATMs. The bank serves
6.6 million accounts throughout Indonesia.
* * *
The Troubled Company Reporter-Asia Pacific reported on
Nov. 2, 2006, that Fitch Ratings affirmed all the ratings of
Bank Central Asia as follows:
* Long-term foreign currency Issuer Default rating: BB-
* Short-term foreign currency rating: B
* Individual: C/D and
* Support: 4.
BANK DANAMON: Plans To Issue Bonds for IDR2.25 Trillion
-------------------------------------------------------
PT Bank Danamon Tbk and its subsidiary PT Adira Dinamika Multi
Finance Tbk have planned to sell IDR2.25 trillion bonds in the
first half of 2008, Reuters Investing Keys reports citing Bisnis
Indonesia.
According to the report, the bank will sell IDR1.5 trillion
bonds while ADMF will sell IDR750 billion bonds.
Bank Danamon, the report notes, invited securities companies to
underwrite the bonds with the term of between three to five
years. The structure of the bonds will be the same for both
companies, the report adds.
Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking. Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services. The bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers. DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income. Bank Danamon is
supported by 86 domestic branch offices, 325 domestic supporting
branch offices, 25 domestic cash office, 739 supporting branches
for DSP, six personal banking branch offices, 10 syariah branch
offices and one overseas branch.
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 Bank Danamon Indonesia Tbk:
-- The foreign currency subordinated debt rating was raised
to Ba2 from Ba3
-- 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, Fitch Ratings upgraded the National Long-term
rating of PT Bank Danamon Indonesia Tbk to 'AA(idn)' from 'AA-
(idn)') while affirming all its other ratings as follows:
* Long term foreign currency Issuer Default Rating (IDR)
'BB-' with a Positive Outlook,
* Short term foreign currency IDR at 'B',
* Individual Rating 'C/D',
* Support Rating '4' and
* Support Rating Floor 'B'.
BANK MANDIRI: To Delay US$300-Million Bond Issue
------------------------------------------------
PT Bank Mandiri (Persero) Tbk may delay the plan to issue US$300
million bonds in the first quarter of 2008 due to unfavorable
market situation, Reuters Investing Keys reports.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 20, 2007, Bank Mandiri planned to raise US$300 million in
bonds between October and January, to help refinance its debts
and fund an expansion.
Mandiri President Director Agus Martowarodojo said the bank
would wait for the proper time to issue the subordinated debt,
as the global credit market has been hit by problems in the
United States subprime market, the TCR-AP noted.
Bank Mandiri, the report added, had short listed Barclays, BNP
Paribas, Credit Suisse, Citibank and Deutsche Bank to underwrite
the issue.
About Bank Mandiri
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.
Indonesia's Mandiri aims for 20 pct 08 loan growth
BANK NIAGA: To Sell IDR500 Billion of Schroder's Fund
-----------------------------------------------------
PT Bank Niaga Tbk has planned to sell IDR500 billion of
Schroeder's mutual fund in a bid to get IDR2.5 billion to
IDR5 billion from the business in 2008, Reuters Investing Keys
reports.
According to the report, the Bank and Schroder's Investment
Management Indonesia have just signed an agreement to sell the
mutual fund to premium customers.
Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk --
http://www.bankniaga.com/-- has a license to operate as a
commercial bank, a foreign exchange bank and a bank engaged in
activities based on Syariah principles. The bank's products and
services include: Funding, Consumer Financing, Business
Financing, Credit and Debit Cards, Private Banking, Preferred
Circle, e-Banking, Corporate Trust, Bancassurance and Treasury
Indicator. The bank's subsidiaries consist of: PT Niaga Aset
Manajemen and PT Saseka Gelora Finance. As of January 31, 2006,
the Bank operates 54 domestic branches, 145 domestic supporting
branches, 22 domestic payment points, seven Syariah units and
one overseas branch.
* * *
The bank also has the following existing global scale ratings
assigned by Moody's Investors Service:
-- issuer/foreign currency subordinated debt of Ba3;
-- global local currency deposit of Baa3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime;
-- and bank financial strength of D.
Fitch Ratings affirmed all the ratings of PT Bank Niaga Tbk as:
Long-term foreign Issuer Default ratings at 'BB-'; Individual at
'C/D'; and Support '4'. Fitch revised the Outlook for the
ratings to positive from stable.
BANK PERMATA: Develops Mobile Token
-----------------------------------
PT Bank Permata Tbk develops mobile token as a media to
authenticate Internet banking transaction in a bid to meet the
more varied needs of corporate customers, Reuters Investing Keys
reports, citing Bisnis Indonesia.
The Bank, the report relates, said multi-layered security and
verification process via password offered by the mobile token
has made the service of Permata e-Business a solution to
corporate customers in optimizing cash management service,
According to the report, the service will enable customers to
run business transaction without having to bring any additional
authentication media.
Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's
-- http://www.permatabank.com/-- products and services include
liabilities, asset, credit card and bancassurance, PermataFOREX,
commercial banking, e-channels and preferred banking. The bank
has approximately 318 domestic branches, sub branches and cash
offices throughout the country. The bank's subsidiaries, which
are engaged in the securities industry, the consumer finance and
leasing sector, the general insurance business and the banking
sector, include PT Bali Securities, PT Bali Tunas Finance, PT
Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan
Rakyat.
As reported by the Troubled Company Reporter-Asia pacific on
Oct. 19, 2007, Moody's Investors Service raised the foreign
currency long-term debt and foreign currency long-term deposit
ratings of Bank Permata.
The detailed ratings are:
-- The foreign currency long-term deposit rating was raised
to B1 from B2.
-- The Not Prime foreign currency short-term deposit rating,
Baa3 global local currency deposit rating and D- BFSR were
unaffected.
=========
J A P A N
=========
JAPAN AIRLINES: Reports JPY20.4BB Income for First Nine Months
--------------------------------------------------------------
JAL Group announced consolidated results for the third quarter
(October-December 2007 inclusive) and the first three quarters
(April - December inclusive) of FY2007, the financial year
ending March 31, 2008.
For the first three quarters of FY2007, total operating revenue
in the air transport segment -- JAL Groups core business --
improved significantly on the same period last year, up by
JPY28.7 billion to JPY1,392.5 billion.
Operating costs for the segment went down by JPY65.5 billion to
JPY1,321.2 billion compared to the previous year.
As a result, the JAL Group posted an operating income in the air
transport segment of JPY71.2 billion in the first three quarters
of FY2007, up JPY94.3 billion on last year.
JAL Group Consolidated FY07 Results
for the Period April - December 2007
Operating Revenue
Over the nine month period, supply on international and domestic
passenger routes measured in available seat kilometers (ASK)
decreased respectively by 4.9% and 3.1%, as a result of network
restructuring by shifting to high profit routes, suspending low
profit routes and fleet downsizing, as outlined in the JAL Group
Medium-term Corporate Revival Plan FY2007-2010.
Mainly as a consequence of this, demand measured in revenue
passenger kilometers (RPK) fell on international passenger
routes by 3.7% and on domestic routes by 4.4%. However, due to
an increase in unit price, operating revenue for the core air
transport business segment which includes cargo, increased by
2.1% when compared to the same period last year, up by JPY28.7
billion to a total of JPY1,392.5 billion.
Consolidated operating revenue declined by JPY32.9 billion or
1.9% from the same period last year to JPY1,701.1 billion. One
main factor was a JPY58 billion decrease in non-air transport
business revenue resulting from the exclusion of JALUX from the
consolidated statement, after the trading company changed from a
consolidated subsidiary to an equity method affiliate.
Operating Expenses
As a result of steady implementation of business structure and
cost reforms outlined in the Medium-term Corporate Revival Plan,
such as a review of all routes, fleet downsizing by introducing
more fuel efficient medium and small size aircraft, and
personnel cost reductions, the JAL Groups operating expenses
decreased by 7.0% or JPY121.3 billion to JPY1,618.6 billion
during the first three quarters of FY2007, when compared to last
year.
Operating, Ordinary & Net Income
For the first three quarters of FY2007, the JAL Group recorded
an operating income of JPY82.5 billion up JPY88.4 billion on
last year, and an ordinary income of 79.2 billion yen up JPY86.9
billion on last year. The Group posted a net income of JPY20.4
billion up JPY29.8 billion when compared to the same 9 month
period the previous year.
Business Segment Outline (April - December 2007)
International Passenger
Demand: Tourism demand was weak on Europe routes and Hawaii
routes due to a weakening of the yen. Reduced seat supply, a
part of JALs route restructuring, led to a decrease in revenue
passenger kilometers and passenger numbers on US mainland and
Oceania routes. While demand over the nine-month period on
China, Korea and Southeast Asia routes all increased on the
previous year.
Demand measured in revenue passenger kilometers was 96.3% from
the same period last year. The revenue seat load factor rose
0.9 points to 71.9%. In total 10,061,760 international
passengers were carried by JAL Group Airlines, almost identical
to the number carried in the same period the year before.
Supply: In addition to fleet downsizing, JAL has actively
reduced flight frequency and suspended flights on low profit
routes. On the other and, the airline has increased scheduled
flights on high profit routes to such high growth markets as
China, India and Vietnam, whilst increasing international
charter flights to meet demand primarily from the baby boomer
generation. Supply measured in available seat kilometers
decreased by 4.9% from the same period last year.
Unit price: In addition to an increase in business passenger
demand and the shifting of resources to high profit routes, air
fares were revised and the fuel surcharge was increased
resulting in an increase in unit price of 8.3% compared to the
same period last year.
Revenue: Given the above, revenue increased by 4.3% from the
same period last year up JPY23.6 billion to JPY572.9 billion.
Domestic Passenger
Demand: During the nine-month period, JAL implemented a number
of measures that increased customer convenience and value
through, for example, the launch of Japans first ever domestic
first class cabin, the introduction of discount fares and the
launch of seasonal promotional campaigns. Route restructuring
and fleet downsizing which came into effect during FY2007, and a
boost in demand from a one-off special fare made available in
October 2006 to commemorate the final stage of JAL Group
integration, meant that revenue passenger kilometers were 4.4%
down on the previous year. The number of domestic passengers
carried during the period by JAL Group airlines decreased by
4.6% to 31,915,821.
Supply: Supply measured in available seat kilometer was 3.1%
down on the same period last year, a result of fleet downsizing
and a review of routes, including flight frequency adjustments,
to more effectively meet demand.
Unit price: Due to changes in passenger composition and an
increase in air fares, unit price increased by 5.6% when
compared to the same period last year.
Revenue: Given the above, revenue increased by 1.0% from the
same period last year by JPY5.2 billion to JPY520.1 billion.
International Cargo
Demand: Demand from Japan to North America declined over the
period when compared to the same period last year mainly due to
a reduction in belly space resulting from a decrease in the
number of passenger flights operated. Demand from Japan to
Europe increased as a result of better utilization of passenger
aircraft belly space. Also, demand to China and Southeast Asia
was strong and increased on the previous year, due mainly to
increased supply from the introduction of 767 freighters.
Demand from China to Japan increased from last year, but
decreased from Europe, Southeast Asia and the US, due to for
example, a reduction in available belly space the result of
route restructuring and fleet downsizing. Revenue cargo ton
kilometers (RCTK) were 2.2% down when compared to the same
period last year.
Unit price: Increased 0.9% from the same period last year.
Revenue: Revenue decreased by 1.3% from the same period last
year by JPY1.9 billion to JPY143.6 billion.
Fuel costs
The price of Singapore kerosene from April to December 2007
averaged US$88.1 per barrel, an increase on last year's average
of US$81.9 per barrel. From the end of October onwards the
average price of fuel was extremely high, regularly exceeding
the US$100.00 per barrel mark. Despite this, through fleet
renewal and downsizing, route restructuring and a range of fuel
consumption reduction measures, JAL managed to reduce fuel costs
over the period by 13.3 billion yen to JPY307.0 billion when
compared to the same period last year.
Personnel costs
As a result of steadily implementing the various measures of the
Medium-term Corporate Revival Plan, in the air transport segment
personnel costs decreased over the 9-month period by JPY14.9
billion from the same period last year. To achieve JAL Groups
target of reducing total personnel costs annually by JPY50
billion compared to FY2006, in FY2007 in Japan the company has
already made large reductions to the summer and winter bonuses
of staff, has offered special early retirement programs to cabin
attendant and managerial level ground staff, and plans to revise
retirement benefit related systems and reduce retirement benefit
costs. Worldwide the Group has been increasing productivity by,
for example, expanded introduction of Toyota Production System
methods.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
S&P said the outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to the
planned restructuring of the Japan Airlines Corporation group on
Oct. 1, 2006 with the completion of the merger of JAL's two
operating subsidiaries, JAL International and Japan Airlines
Domestic. JAL International will be the surviving company.
Moody's said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
JAPAN AIRLINES: Chairman to Leave Post on March 31
--------------------------------------------------
Toshiyuki Shinmachi, Japan Airlines' chairman, will quit from
his post effective March 31 to give way to younger leadership,
the Associated Press reports.
Mr. Shinmachi became the airline's president in 2004, and was
appointed chairman in 2006 to lead the company out of financial
and organizational problems, the same report relates.
JAL's chairman said that he has been successful in making the
airline profitable, and now would like to make way for younger
managers. Mr. Shinmachi implemented a restructuring plan that
included shifting to fuel-efficient aircraft and dropping
unprofitable routes, the result of which is a JPY13.1 billion
third quarter profit for JAL, AP relates.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
S&P said the outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to the
planned restructuring of the Japan Airlines Corporation group on
Oct. 1, 2006 with the completion of the merger of JAL's two
operating subsidiaries, JAL International and Japan Airlines
Domestic. JAL International will be the surviving company.
Moody's said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
OKI ELECTRIC: Signs Marketing Deal with Alcatel-Lucent
------------------------------------------------------
Oki Electric Industry Co. Ltd. entered into an agreement with
Alcatel-Lucent to jointly market OKI's mobile WiMAX terminals to
the worldwide market. As part of the agreement, a demonstration
showing how OKI terminals work with Alcatel-Lucent's WiMAX base
stations will be featured at Alcatel-Lucent's booth at Mobile
World Congress 2008, which will be held from Feb. 11 to 14 in
Barcelona, Spain (Booth number: 8A147 in Hall 8).
"We are pleased to be working with Alcatel-Lucent, a global
leader in the field of advanced communications infrastructure
technology, to bring to consumers useful, reliable mobile
devices that will enable them to stay in touch with the people
they care about and get the information they need no matter
where they are," said Kichiro Akino, President of Network
Systems Company at Oki Electric Industry. "This collaboration
is an important step in promoting WiMAX technology worldwide
because by working together we will be able to ensure seamless
interoperability between OKI's various mobile WiMAX terminals
and Alcatel-Lucent's WiMAX base stations, making both sets of
products more useful to businesses and consumers alike."
By joining the Open Customer Premises Equipment Program, OKI
will work with Alcatel-Lucent to share market data enabling both
companies to better define, test and introduce features earlier,
ensure faster availability of end-to-end solutions and widen the
offering of terminals.
"In signing the Global Co-Marketing and Interoperability Testing
Agreements, OKI joins and further enhances Alcatel-Lucent's Open
CPE Program," said Karim El Naggar, Alcatel-Lucent's WiMAX Vice
President. "This will enable the two companies to offer an end-
to-end WiMAX 802.16e-2005 solution that leverages OKI's
leadership in developing compact devices with minimal power
consumption."
The two companies will collaborate on conducting
interoperability tests to obtain WiMAX Forum Certification and
focus on offering new devices, developing features and improving
overall performance on a wide range of devices, including CF
cards to mobile terminals such as PCs, PDAs and UMPCs, data
cards like USB dongles, and devices with a WiFi interface.
OKI expects to begin shipping WiMAX compatible products in the
second half of this year, in time to coincide with the
commercial launch of mobile WiMAX service.
About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions
that enable service providers, enterprises and governments
worldwide, to deliver voice, data and video communication
services to end-users. As a leader in fixed, mobile and
converged broadband networking, IP technologies, applications,
and services, Alcatel-Lucent offers the end-to-end solutions
that enable compelling communications services for people at
home, at work and on the move. With operations in more than 130
countries, Alcatel-Lucent is a local partner with global reach.
The company has the most experienced global services team in the
industry, and one of the largest research, technology and
innovation organizations in the telecommunications industry.
Alcatel-Lucent achieved adjusted proforma revenues of Euro 18.3
billion in 2006 and is incorporated in France, with executive
offices located in Paris. [All figures exclude impact of
activities transferred to Thales]. For more information, visit
Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com.
About Oki Electric
Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's
first telecommunications manufacturer, with its headquarters in
Tokyo, Japan. OKI provides top-quality products, technologies
and solutions to its customers through its info-telecom system
business, semiconductor business and printer business. All three
businesses function as a collective force to create exciting new
products and technologies that satisfy a spectrum of customer
needs in various markets. Visit OKI's global web site at
http://www.oki.com/
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 18, 2007. Rating and Investment Information, Inc. affirmed
Oki Electric's issuer rating at BB+. According to R&I, little
has improved in the performance of the company's mainstay info-
telecom system business. This is due to the sluggishness in
products for communication carriers despite the recovery in
products for financial institutions, which had been stagnant
after the special demand caused by the introduction of new bank
notes in 2004.
SOFTBANK CORP: Posts JPY46.7BB Net Income in Qtr. Ended Dec. 31
---------------------------------------------------------------
Softbank Corp. reported financial results for the fiscal third
quarter ended Dec. 31, 2007. As widely reported, the Japanese
mobile-phone carrier's quarter net income is JPY46.7 billion, up
from JPY7.49 billion a year ago.
Operating profit rose 9% to JPY92.4 billion, as gains in the
broadband division and fixed-line operations turning profitable
helped offset lower earnings at its mobile-phone unit, Bloomberg
reports, citing the company's statement.
Profit for the first nine months, according to the Associated
Press, rose four times compared to the previous year, as
Softbank succeeded in securing a bigger customer base as a
result of price discounting and aggressive advertising. The
company gained 561,000 users from Octoebr to December 2007, and
200,700 subscribers to its mobile service in January, bringing
its total users to 17.81 million.
Analyst Kenji Nishimura explained to Bloomberg that Softbank
makes up for its discounting and providing of free content
schemes through ring tone, music, game, and video clip
downloads.
Additionally, the company's nine-month revenue was helped by its
stake sale in Alibaba Group, which fetched JPY57.2 billion in
profit. Alibaba.com Ltd. is now trading in the Hong Kong stock
exchange, the Wall Street Journal says.
Softbank reported April to December profit of JPY93.2 billion,
compared to JPY21.93 billion the previous year, the AP says.
About Softbank
Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese
telecommunications and media corporation. SoftBank was
established on September 3, 1981. The company operates in eight
business segments:
* Broadband Infrastructure Segment
* Fixed-line Telecommunications Segment
* e-Commerce Segment
* Internet Culture Segment
* Broadmedia Segment
* Technology Services Segment
* Media & Marketing Segment
* Overseas Funds Segment
Softbank is also involved with leisure and service operations,
e-finance, holding company functions for overseas operations,
and back-office services in Japan. SoftBank's corporate profile
includes various other companies such as Japanese broadband
company Cable & Wireless IDC, cable company BB-Serve, and gaming
company GungHo Online Entertainment. In 2006, SoftBank bought
Vodafone Japan, giving it a stake in Japan's US$78 billion
mobile market. As of March 31, 2007, the company's paid-in
capital was JPY163.3 billion.
* * *
The Troubled Company Reporter-Asia Pacific reported on
June 7, 2007, that Standard & Poor's Rating Agency lifted its
long-term corporate credit and senior unsecured debt ratings to
BB from BB- in light of the company's increasing earnings
stability. The outlook for the long-term credit rating is
stable. Moody's Investors Service, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2from Ba3, concluding a review initiated on March 17, 2006,
when the company announced that it would acquire a 97.7% stake
in mobile phone giant Vodafone Group's Japanese unit, Vodafone
K.K.
SOFTBANK CORP: Considering Next Move In Light of Microsoft's Bid
----------------------------------------------------------------
Softbank Corp. is looking at ways to maximize the benefit it
would get as a result of Microsoft Corp.'s US$44.6 billion
unsolicited bid for Yahoo! Inc.
Softbank owns 41% of Yahoo Japan Corp. and 3.9% of Yahoo Inc.,
Bloomberg News says.
"If done properly, Yahoo brand value can increase as a result"
Softbank's Chief Executive Officer Masayoshi Son was quoted by
Bloomberg as saying. Yahoo "management should choose the way
that doesn't reduce value."
In a separate report from the Associated Press, Mr. Son said
that he is in talks with Yahoo!'s chief executive, Jerry Yang,
on how best to respond to Microsoft's takeover proposal.
"We will consider the (Microsoft) bid in light of our overall
Yahoo strategy," Mr. Son was quoted by Reuters as saying. "We
have no intention of selling our Yahoo Japan stake."
According to Mr. Son, Yahoo and Alibaba -- a Chinese search
engine, are still the more popular choices in Asia compared to
Google, AP relates. He attributed this to cultural difference.
Meanwhile, the Wall Street Journal reports that as a result of
Microsoft's Yahoo bid, investors poured into Softbank. The
company's shares have also gained 12%, ending at JPY2,130 on
Thursday.
About Softbank
Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese
telecommunications and media corporation. SoftBank was
established on September 3, 1981. The company operates in eight
business segments:
* Broadband Infrastructure Segment
* Fixed-line Telecommunications Segment
* e-Commerce Segment
* Internet Culture Segment
* Broadmedia Segment
* Technology Services Segment
* Media & Marketing Segment
* Overseas Funds Segment
Softbank is also involved with leisure and service operations,
e-finance, holding company functions for overseas operations,
and back-office services in Japan. SoftBank's corporate profile
includes various other companies such as Japanese broadband
company Cable & Wireless IDC, cable company BB-Serve, and gaming
company GungHo Online Entertainment. In 2006, SoftBank bought
Vodafone Japan, giving it a stake in Japan's US$78 billion
mobile market. As of March 31, 2007, the company's paid-in
capital was JPY163.3 billion.
* * *
The Troubled Company Reporter-Asia Pacific reported on
June 7, 2007, that Standard & Poor's Rating Agency lifted its
long-term corporate credit and senior unsecured debt ratings to
BB from BB- in light of the company's increasing earnings
stability. The outlook for the long-term credit rating is
stable. Moody's Investors Service, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2from Ba3, concluding a review initiated on March 17, 2006,
when the company announced that it would acquire a 97.7% stake
in mobile phone giant Vodafone Group's Japanese unit, Vodafone
K.K.
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K O R E A
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DURA AUTOMOTIVE: To Bypass Executives from 2008 Bonuses
-------------------------------------------------------
DURA Automotive Systems Inc. and its debtor-affiliates have
amended their 2008 Key Management Incentive Plan to better focus
on the non-senior management KMIP participants with respect to
two aspects:
(1) The Debtors are not going forward with the proposed 2008
KMIP payments to their chief executive officer, chief
financial officer, chief operating officer, and vice
president of human resources; and
(2) The Debtors intend to make all payments to approximately
104 non-Debtor employee participants in the 2008 KMIP
from the Debtors' European non-debtor affiliates.
The Amended 2008 KMIP maintains a two three-month performance
measurement and pay-out periods, ending on March 31 and
June 30, 2008:
* Threshold pay-out: If the Debtors achieve 90% of adjusted
EBITDA goals, participants will receive 50% of their
individual target bonus opportunities;
* Target opportunity pay-out: If the Debtors achieve 100% of
adjusted EBITDA goals, participants will receive 100% of
their individual target bonus opportunities.
* Maximum pay-out: If the Debtors achieve 120% of adjusted
EBITDA goals, participants will receive 150% of their
individual target bonus opportunities.
Participant's individual target bonus opportunities range from
5% to 45% of each participant's base salary at the Target
Opportunity Payout. The Debtors have previously proposed a
target bonus opportunities range range of 5% to 80%.
Distribution of participant to target opportunity percentages:
Target Opportunity Number of 2008 KMIP
(% of base salary) Participants
------------------ -------------------
45% 7
30% 16
25% 20
20% 26
15% 1
12% 40
The Debtors estimate to pay approximately US$2,500,000 at the
Target Opportunity Payout, compared to their previous estimate
of US$6,000,000.
Accordingly, the Debtors ask the Court to approve the 2008 KMIP,
as amended. The Debtors reserve their right to seek approval of
an incentive plan for their senior managers.
Marc Kieselstein, P.C., Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, relates the Official Committee of Unsecured
Creditors and the Debtors are in discussions regarding the
merits of the 2008 KMIP. As of February 4, 2008, Mr. Kieseltein
says there has been no appreciable progress in resolving the
differences between the Debtors and the Creditors Committee.
About DURA Automotive
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 $1,993,178,000 in total
assets and $1,730,758,000 in total liabilities.
The Debtors have asked the Court to extend their plan filing
period to April 30, 2008. (Dura Automotive Bankruptcy News,
Issue No. 45; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DURA AUTO: Reaches Settlement Pact w/ Nyloncraft for US$2 Mil.
--------------------------------------------------------------
DURA Automotive Systems Inc. and its debtor-affiliates ask the
U.S. Bankruptcy Courts for the District of Delaware to approve a
US$2 million settlement agreement they entered into with
Nyloncraft, Inc.
In January 2002, the Debtors sold their plastics products
business to Nyloncraft, Inc., for US$41,000,000. Of the
proceeds, US$6,000,000 was in the form of a subordinated note
executed by Nyloncraft, which provides that Nyloncraft will pay
interest to the Debtors quarterly, and will repay US$4,000,000
of principal on Feb. 28, 2007, with the remainder due on
Feb. 28, 2008.
Shortly after the bankruptcy filing, the Debtors were informed
that Nyloncraft was in financial covenant default with its
senior secured lenders, as well as under the Nyloncraft Note.
Nyloncraft would not be able to make further interest payments
to the Debtors under the Nyloncraft Note. Accordingly, during
the pendency of their Chapter 11 cases, the Debtors have not
received interest payments on the Nyloncraft Note, which
interest payments have accrued to approximately US$647,500
through Feb. 15, 2008. Nyloncraft was also unable to make the
principal payment required by the note on Feb. 28, 2007.
The Debtors and Nyloncraft conducted discussions over a
compromise of the Nyloncraft Note amount payable to the Debtors.
As a result of good-faith negotiations, the parties agree that
Nyloncraft will pay US$1,997,500 to the Debtors in exchange for
a release from obligations under the Nyloncraft Note.
Daniel DeFranceschi, Esq., at Richards, Layton & Finger, P.A.,
in Wilmington, Delaware, relates that the Debtors have
considered accepting part of the settlement amount in equity but
have determined that an all-cash settlement is in the best
interests of their estates.
By settling the debt, Dura avoided becoming an unsecured
creditor if the former subsidiary itself were to file in Chapter
11, William Rochelle at Bloomberg News says.
About DURA Automotive
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.
The Debtors have asked the Court to extend their plan filing
period to April 30, 2008. (Dura Automotive Bankruptcy News,
Issue No. 45; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
KOREAN EXPRESS: KDB Sells 3.43% Company Stake
---------------------------------------------
The Korea Express Co. Ltd.'s investor, KDB, has sold off 23,525
shares of the company, Reuters Investing Keys reports.
According to the report, the shares were equivalent of 3.43%
stake on the company. As a result, KDB now holds a 4.90% stake
in the company.
Headquartered in Seoul, Korea Express Co., Ltd. --
http://www.korex.co.kr/-- provides land and marine
transportation, and logistics services. The company also
operates stevedoring, distribution, and warehousing businesses
that serve domestic and international customer needs. Korea
Express transports a variety of products, ranging from consumer
goods to machinery and turbines. Korea Express also operates
Internet home shopping business.
Korea Express Bank has been under court receivership since June
2001 after it could not service a KRW1.5-trillion debt,
including KRW919 billion owed by then-parent Dong-Ah
Construction Industrial Co. Korea Express President Lee Kook-
Dong will decide with a Seoul court about when to sell the
company, which has a market value of US$601 million.
In the company's Web site, Mr. Lee said that Korea Express will
strive to end court receivership and improve its liquidity,
maximize sales profit through strengthening of cooperation
between management and labor, and seek continuous development.
Korea Investors Service gave the company a BB rating.
SSAMZIE: Discloses Conversion of 10th Bonds to 3,112 Shares
-----------------------------------------------------------
Ssamzie Co., Ltd.'s 10th convertible bonds have been converted
for 3,112 shares of the company at the conversion price of
KRW1,285 per share, Reuters Investing Keys reports.
According to the report, thhis brings the total number of the
company's outstanding common shares to 20,933,551. The listing
date of the new shares was on January 31, 2008.
SSAMZIE Co., Ltd. specializes in the manufacturing, designs and
sale of leather goods, cloths, hats and accessories. The
company provides bags, wallets, shoes, hats, clothes and
accessories under house brands such as SSAMIE, ISSAC, nom, GILI,
SSAMZIE SPORT, SSAM, DALKI and acupuncture. Its target
customers include teenagers and people in their mid-twenties.
The company sells its products through stores, department stores
and Internet shopping mall. It has stores in the United States,
the United Kingdom and China.
Korea Investors Service placed a BB rating on the company's
issuer rating.
SSAMZIE CO: Signs License Agreement with Korea Company
------------------------------------------------------
Ssamzie Co. Ltd. has signed a license agreement with a Korea-
based company, Reuters Investing Keys reports.
Under the business agreement, the report notes, the company
granting the latter entity an exclusive right for a limited time
(from January 15, 2008 to January 15, 2011) to use its brand
SSAMZIE SPORT, in Korea and China markets.
The contract amount is worth KRW1,050 million, the report adds.
SSAMZIE Co., Ltd. specializes in the manufacturing, designs and
sale of leather goods, cloths, hats and accessories. The
company provides bags, wallets, shoes, hats, clothes and
accessories under house brands such as SSAMIE, ISSAC, nom, GILI,
SSAMZIE SPORT, SSAM, DALKI and acupuncture. Its target
customers include teenagers and people in their mid-twenties.
The company sells its products through stores, department stores
and Internet shopping mall. It has stores in the United States,
the United Kingdom and China.
* KOREA: Korean Banks Lose US$563 Million from Subprime Hit
-----------------------------------------------------------
South Korean banks lost US$563 million as of the end of December
2007 after investing in U.S. subprime mortgage-related
instruments, Asia Pulse reports, citing the country's financial
watchdog Financial Supervisory Service.
According to the report, the country's watchdog said that seven
local banks including Woori Bank invested US$682.5 million in
U.S. collateralized debt obligations derived from subprime
mortgages.
The lenders' total loss accounted for 83% of their total CDO
investments, the report notes. Among the seven lenders, Woori
Bank posted the biggest losses with US$445 million, followed by
the National Agricultural Cooperative Federation with US$107
million, Asia Pulse relates.
Shinhan Bank, the report says, wrote down losses of about US$1.5
million from its subprime-related investments last year.
Meanwhile, Korea Exchange Bank booked US$560,000 in valuation
losses in the fourth quarter after posting a US$1.17 million
loss from selling part of its CDO investments, the report adds.
Service placed a BB rating on the company's issuer rating.
===============
M A L A Y S I A
===============
ELECTRONIC DATA: To Pay US$0.05 Per Share Dividend on March 10
--------------------------------------------------------------
The Electronic Data System Corp. Board of Directors has declared
a dividend on the common stock of US$0.05 per share, payable
March 10, 2008, to shareholders of record as of the close of
business Feb. 20, 2008.
Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS)
-- http://www.eds.com/-- is a global technology services
company delivering business solutions to its clients. The
company founded the information technology outsourcing industry
more than 40 years ago. The company delivers a broad portfolio
of information technology and business process outsourcing
services to clients in the manufacturing, financial services,
healthcare, communications, energy, transportation, and consumer
and retail industries and to governments around the world. The
company has locations in Argentina, Australia, Brazil, China,
Chile, Hong Kong, India, Japan, Mexico, Puerto Rico, Singapore,
Taiwan, Thailand, South Korea and Malaysia.
* * *
Moody's placed EDS Corp.'s senior unsecured debt rating at 'Ba1'
in July 2004, and its probability of default rating at 'Ba1' in
September 2006. Moody's said the outlook is positive. Moody's
said the ratings still hold to date.
KNOLL INC: Reports US$20.7-Mln Net Income in Fourth Quarter 2007
----------------------------------------------------------------
Knoll Inc. announced results for its fourth quarter and year
ended Dec. 31, 2007. Net sales were US$281.8 million for the
quarter, an increase of 3.2% from fourth quarter 2006.
Operating income was US$39.5 million, or 14.0% of net sales, an
increase of 11% from the fourth quarter 2006, and net income was
US$20.7 million, an increase of 15% over the fourth quarter
2006.
For the full year, net sales were US$1.05 billion, an increase
of 7.5% over full year 2006. Operating income was US$142.2
million, or 13.5% of net sales, an increase of 21.6% over full
year 2006, net income was US$71.4 million, an increase of 21.8%
over full year 2006.
"For the 3rd year in a row now Knoll has continued to expand our
industry leading operating margins, generate better than
industry top-line growth and deliver more than 20% EPS growth
for our shareholders," said Knoll Chief Executive Officer,
Andrew Cogan.
"While we are aware that our industry faces headwinds as we head
into 2008, we are confident that the strength and diversity of
our growth initiatives, the fullness of our new product pipeline
and our cost discipline will allow us to continue to generate
better than industry top-line performance as we work to achieve
our mid-term 15% operating margin goals." Mr. Cogan added.
"I want to congratulate and thank our Associates and Dealers on
generating another year of industry leading performance. They
have once again demonstrated that in the words of our founder
Florence Knoll 'Good design is good business.'" Mr. Cogan
stated.
Mr. Cogan noted, "Net sales for the quarter were US$281.8
million, an increase of US$8.8 million, or 3.2%, over fourth
quarter 2006, representing increased volume and price
realization from previously implemented price increases. Our
Specialty products experienced the strongest growth during the
quarter as they also benefited from our fourth quarter
acquisition of Edelman Leather."
Backlog of unfilled orders at Dec. 31, 2007, was US$190.7
million, an increase of US$23million, or 13.7%, versus the prior
year.
Gross profit for the fourth quarter 2007 was US$99 million, an
increase of US$9.9 million, or 11.1%, over the same period in
2006. Gross margin increased from 32.6% in the fourth quarter
of 2006 to 35.1% in spite of the significant appreciation of the
Canadian Dollar. The increase from the fourth quarter of 2006
largely resulted from additional volume, better pricing, and
moderating inflation. Improved factory performance and global
sourcing initiatives also contributed to the increase in gross
margin.
Operating expenses for the quarter were US$59.5 million, or
21.1% of sales, compared to US$53.5 million, or 19.6% of sales,
for fourth quarter of 2006. The increase in operating expenses
during the fourth quarter of 2007 was in large part due to the
inclusion of Edelman Leather and increased investment spending
in marketing and product development.
Operating income increased, as a percentage of sales, to 14%
from 13% in the same period in the prior year. Gross margin
improvements from a year ago contributed to this increase.
Net income for the fourth quarter 2007 was US$20.7 million as
compared to US$18 million for the same quarter in 2006. Interest
expense decreased US$0.9 million due to lower borrowing costs on
the company's credit facility.
For the year, net sales totaled US$1.05 billion an increase of
US$73.6 million, or 7.5%, from 2006 net sales of US$982.2
million. The increase was attributable to additional revenues
realized from price increases as well as higher volumes across
all the company's product categories. The specialty businesses
followed by International expansion and complimentary seating
and storage products experienced the strongest growth in the
year.
Gross margins increased to 34.6% in 2007 compared to 32.5% in
2006. Additional volume, better pricing, and moderating
inflation led to the increase. Improved factory performance and
global sourcing initiatives also contributed to the increase.
The increase in gross margin came in spite of the further
appreciation in the Canadian Dollar.
Operating expenses for 2007 were US$222.9 million, or 21.1% of
sales, compared to US$202.1 million, or 20.6% of sales, for
2006. Increased investment spending on growth initiatives
relating to new products and international expansion drove the
increase along with increased incentive payments as a result of
the higher sales and profits. The acquisition of Edelman
Leather also impacted operating expense levels.
The company generated 2007 net income of US$71.4 million
compared to US$58.6 million in 2006. Net income in 2007
includes the write-off of deferred financing fees totaling
US$0.7 million after tax as the company implemented the
refinancing of its old credit facility with a new US$500 million
revolving credit facility on June 29, 2007.
Other income/expense in 2007 included an approximate
US$4.2 million loss due to foreign currency translation and
US$1.2 million loss related to the write off of deferred
financing fees. Other income/expense in 2006 included an
approximate US$563 thousand gain due to the foreign currency
translation, a US$703 thousand loss on interest rate
derivatives, and US$881 thousand gain in other miscellaneous
income.
Annual cash generated from operations in 2007 was
US$102.2 million, compared to US$77.5 million the year before.
Capital expenditures in 2007 totaled US$16.3 million compared to
US$13.4 million for 2006. Investing activities in 2007 also
included US$70.8 million for the acquisition of Edelman Leather.
In addition, the Company repurchased approximately 2.3 million
shares of its stock for US$48.1 million during the year. Also
during the year the Company had net borrowings of
US$18.2 million primarily to finance the purchase of Edelman
Leather and repurchase shares. The company also paid dividends
of US$21.7 million for the first three quarters of 2007,
increasing to US$0.12 per share in the fourth quarter of 2007.
Chief Financial Officer, Barry L. McCabe said, "During the
quarter we were able to close the acquisition of Edelman
Leather, increase our quarterly dividend and take advantage of
our current stock price by repurchasing 1.1 million shares for a
total repurchase of 2.261 million shares for the year. With our
expanded bank facility, lowered leverage ratio and reduced
borrowing costs, Knoll enters 2008 in the strongest financial
position since our 2004 IPO and we are well positioned to take
advantage of opportunities to continue to reduce our shares
outstanding. Accordingly, we are pleased to announce the
expansion of our share repurchase program by US$50 million."
Expanded US$50 million Stock Repurchase Program
On Feb. 4, 2008, the Knoll Board of Directors approved a US$50
million expansion of the company's previously announced stock
repurchase program. The expanded repurchase program does not
require the purchase of any minimum number of shares, but sets a
limit on the total amount spent on repurchases. Before this
expansion, the company had approximately US$17 million remaining
under its US$50 million stock repurchase program announced in
February 2006. Purchases under the repurchase program may be
made from time to time in the open market, through privately
negotiated transactions, or otherwise, and will depend on market
conditions and applicable securities laws.
First Quarter 2008 Outlook
The company stated that it expects first quarter 2008 revenue to
be in the US$258 - US$265 million range, an increase of 4.1%-
6.9% from the first quarter of 2007.
The company added that on Feb. 4, 2008, its Board of Directors
declared a quarterly cash dividend of US$0.12 per share payable
on March 31, 2008, to stockholders of record on March 14, 2008.
About Knoll Inc.
Headquartered in East Greenville, Pennsylvania, Knoll Inc.
(NYSE:KNL) -- http://www.knoll.com/-- designs and manufactures
branded office furniture products and textiles, serves clients
worldwide. It distributes its products through a network of
more than 300 dealerships and 100 showrooms and regional
offices. The company has locations in Argentina, Australia,
Bahamas, Cayman Islands, China, Colombia, Denmark, Finland,
Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
Philippines, Poland, Portugal and Singapore, among others.
* * *
Knoll Inc. carries Moody's Investors Service's B1 Corporate
Family Rating and the company's US$200 million senior secured
revolver and US$250 million senior secured term loan carry
Moody's Ba2. Moody's assigned an LGD2 rating to both loans,
suggesting note holders will experience a 27% loss in the event
of a default.
MEGAN MEDIA: May Wind Up Operations After Creditor Talks Failed
---------------------------------------------------------------
Megan Media Holdings Bhd may wind up its operations following
its failure to pursue a scheme of arrangement with creditor
banks, the company disclosed to the Bursa Malaysia Securities
Berhad.
It will not resist any winding up action initiated by any
creditor, Megan Media said in its disclosure.
The Board believes that a court appointed liquidator is imminent
and decisions dealing with the company's financial condition is
best pursued by a liquidator. Accordingly, the company has
withdrawn the Certificate of Solvency dated May 9, 2007, issued
to Bursa Malaysia Securities.
As reported by the Troubled Company Reporter-Asia Pacific on
February 6, 2008, the company and its subsidiaries have
defaulted on MYR899.96 million in maturing banking facilities.
Megan Media, together with its operating subsidiaries -- Memory
Tech Sdn Bhd and MJC (Singapore) Pte Ltd -- continues to be
saddled with debts procured from banks on the back of its
trading business which Investigative Accountants have now
established as fraudulent. To top it all, several key
management personnel crucial to its debt restructuring plans
tendered their resignation early this year.
Megan Media Holdings Berhad' s principal activities are
manufacturing and trading data storage media products like
Computer diskettes, video cassette tapes, compact disc
recordable (CD-R's) and digital versatile disc recordable (DVD-
R's). The Group operates in Malaysia, Singapore and other
countries.
The Troubled Company Reporter-Asia Pacific reported on
June 11, 2007, that the Rating Agency Malaysia downgraded the
long-term rating of Memory Tech Sdn Bhd's MYR320 million Bai
Bithaman Ajil Islamic Debt Securities (2005/2012) ("BaIDS"),
from C3 (with a negative outlook) to D. The BaIDS carries a
corporate guarantee from MTSB's holding company, Megan Media
Holdings Berhad.
Concurrently, RAM has lifted the Rating Watch (with a negative
outlook) that had been placed on MTSB on May 9, 2007, following
the failure of MTSB and MJC (Singapore) Pte Ltd, another wholly
owned subsidiary of Megan Media, to repay their trade facilities
amounting to MYR47.36 million.
On June 19, 2007, the company was classified as a PN17 company,
and was given eight months to submit a substantive plan to
regularize its financial condition.
SOLUTIA INC: Aims to Assume Wal-Mart Deals Under Terms of Plan
--------------------------------------------------------------
Solutia Inc. and its debtor-affiliates intend to assume certain
executory contracts with Wal-Mart Stores Inc., pursuant to the
terms of the Debtors' confirmed Fifth Amended Joint Plan of
Reorganization.
In the ordinary course of operating under the Wal-Mart
Contracts, Wal-Mart may be entitled to take credits or
contractual adjustments for defective products, rebates or other
contractually permitted items that are currently unknown or that
will accrue after the date of the Debtors' assumption of the
Wal-Mart Contracts.
The parties have agreed that notwithstanding the proposed cure
amounts of the contracts, Wal-Mart and its subsidiaries and
affiliates are allowed to assert in the ordinary course any
chargebacks that are currently unknown or that will accrue after
the Assumption Date pursuant to the terms of the Wal-Mart
Contracts without regard to the date on which Wal-Mart or its
subsidiary or affiliate purchased the product giving rise to the
Chargeback.
Nothing in the Stipulation constitutes a waiver of the Debtors'
rights to dispute any Chargeback for reasons other than that the
claims were not made before the Assumption Date.
About Wal-Mart
Wal-Mart Stores Inc. (NYSE: WMT) -- http://www.walmart.com/--
operates retail stores in various formats around the world. The
company operates through three segments: Wal-Mart Stores
segment, which includes Supercenters, Discount Stores and
Neighborhood Markets, Sam's Club segment and International
segment. The Wal-Mart Stores segment consists of three
different traditional retail formats, all of which operate in
the United States, and Wal-Mart's online retail format,
walmart.com. The Sam's Club segment consists of membership
warehouse clubs, which operate in the United States, and the
segment's online retail format, samsclub.com. At Jan. 31, 2007,
its International segment consisted of retail operations in 12
countries and Puerto Rico. In October 2006, the company
disposed of its South Korean and German operations.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide. Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).
When the Debtors filed for protection from their creditors, they
listed US$2,854,000,000 in assets and US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue
No. 116; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported on Dec. 11, 2007, Standard & Poor's Ratings Services
assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--)
proposed US$1.2 billion senior secured term loan and a '3'
recovery rating, indicating the likelihood of a meaningful (50%-
70%) recovery of principal in the event of a payment default.
The ratings are based on preliminary terms and conditions. S&P
also assigned its 'B-' rating to the company's proposed US$400
million unsecured notes.
Standard & Poor's expects to assign its 'B+' corporate credit
rating to Solutia if the company and its subsidiaries emerge
from Chapter 11 bankruptcy proceedings in early 2008 as planned.
S&P expect the outlook to be stable.
SOLUTIA INC: Files Suit to Enforce Exit Financing Commitment
------------------------------------------------------------
Solutia Inc. on Wednesday filed a complaint in the United States
Bankruptcy Court for the Southern District of New York against
the three banks that had executed a firm commitment to fund a
$2 billion exit financing package for Solutia, but to date have
refused to meet this commitment.
These banks are Citigroup Global Markets Inc., Goldman Sachs
Credit Partners L.P., and Deutsche Bank Securities Inc. Solutia
is seeking a court order requiring the banks to meet their
commitment and fund Solutia's exit from bankruptcy.
The complaint also asserts that the banks should be stopped from
invoking the clause they claim relieves them of their obligation
due to their improper conduct and misrepresentations to the
company, and further claims that the banks fraudulently induced
Solutia to enter into the initial engagement by promising that
the financing was firmly committed. Solutia and the banks have
agreed that Solutia's claim to require immediate funding of the
US$2 billion package should be heard by the Court on an
expedited basis, with the trial to conclude by the end of
February -- prior to the expiration of the banks' commitment.
"This is not a 'best efforts' agreement," said Jeffry N. Quinn,
chairman, president and CEO of Solutia Inc. "Solutia agreed to
pay the banks an enhanced fee in exchange for their firm
commitment to fund the full US$2 billion exit financing facility
-- regardless of the results of the syndication process. We are
extremely disappointed by their refusal to meet this commitment
and have no choice but to pursue all of our legal remedies."
On Oct. 25, 2007, the banks executed a firm commitment to fund a
US$2 billion exit financing package for Solutia. These
substantial, custom credit facilities and arrangements were
specifically tailored to facilitate Solutia's prompt emergence
from Chapter 11. On Nov. 20, 2007, the bankruptcy court
approved the exit financing package. Nine days later, in
reliance on the banks' firm lending commitment, the court found
the plan of reorganization to be feasible and confirmed the
plan. However, in late January -- shortly before the
anticipated closing of the exit facility and Solutia's long-
awaited emergence from Chapter 11 -- the banks notified Solutia
that they were refusing to provide the funding, citing a so-
called "market MAC" provision in their commitment letter and
asserting that there has been a change in the markets since
entering into the commitment.
"It is a well-documented fact that the ongoing conditions in the
credit markets began in the summer of 2007," said Quinn. "Well
before the banks committed to Solutia's exit financing, they
stated in public filings and through professional advice to
Solutia that the credit markets were in disarray, and that the
credit crisis would continue for months to come. Despite their
concerns and negative outlook, the banks entered into a firm
commitment to provide Solutia with this exit financing. The
willingness of these banks to offer committed financing that was
not subject to a successful syndication was a major factor in
deciding to award them this business."
Quinn added, "Solutia is ready to emerge from Chapter 11. We
have successfully repositioned our company, we have confirmed a
plan of reorganization that brings significant value to our
constituents, and our businesses are performing well. We now
look to the banks to meet their commitment."
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide. Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).
When the Debtors filed for protection from their creditors, they
listed US$2,854,000,000 in assets and US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan.
=====================
N E W Z E A L A N D
=====================
24 HOURS: Levin & Vance Replace Fatupaito, McCloy as Liquidators
----------------------------------------------------------------
On January 23, 2008, Henry David Levin and David Stuart Vance
replaced Vivian Fatupaito and Colin McCloy as the liquidators of
24 Hours Personnel Access Recruitment Consultancy Services
Limited.
Messrs. Levin and Vance are accepting creditors' proofs of debt
until February 27, 2008.
The liquidators can be reached at:
Henry David Levin
David Stuart Vance
PPB McCallum Petterson
Forsyth Barr Tower, Level 11
55-65 Shortland Street
Auckland
New Zealand
Telephone:(09) 336 0000
Facsimile:(09) 336 0010
ALPHA AVIATION: Commences Liquidation Proceedings
-------------------------------------------------
Alpha Aviation Marketing Limited's shareholders agreed on
January 21, 2008, to voluntarily liquidate the company's
business. In line with this goal, the company has appointed
Stephen Mark Lawrence and Anthony John McCullagh at Horwath
Corporate (Auckland) Limited to facilitate the sale of its
assets.
Creditors are required to file their proofs of debt by
Feb. 29, 2008, to be included in the company's dividend
distribution.
The liquidators can be reached at:
Stephen Mark Lawrence
Anthony John McCullagh
Horwath Corporate (Auckland) Limited
PO Box 3678, Auckland 1140
New Zealand
Telephone:(09) 306 7424
Facsimile:(09) 302 0536
BEAZLEY BROS: Wind-Up Petition Hearing Set for Today
----------------------------------------------------
A petition to have Beazley Bros. Transport Ltd.'s operations
wound up will be heard before the High Court of Rotorua on
February 11, 2008, at 11:45 a.m.
The Commissioner of Inland Revenue filed the petition on
Dec. 6, 2007.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
CALEB H CONTRACTING: Wind-Up Petition Hearing Set for Feb. 20
-------------------------------------------------------------
The High Court of Blenheim will hear on February 20, 2008, at
10:00 a.m., a petition to have Caleb H Contracting Ltd.'s
operations wound up.
The Commissioner of Inland Revenue filed the petition on
November 28, 2007.
The CIR's solicitor is:
Julie Newton
c/o Inland Revenue Department
Legal and Technical Services
First Floor Reception
224 Cashel Street
PO Box 1782, Christchurch 8140
New Zealand
Telephone:(03) 968 0807
Facsimile:(03) 977 9853
CER GROUP: Sales Revenue in 2007 Rose 31% to NZ$8.1 Million
-----------------------------------------------------------
CER Group Ltd rounded off 2007 with a record final quarter,
ended Dec. 31, 2007, with sales of NZ$3.9 million, up 40% on the
fourth quarter of 2006.
The Group's full year performance showed a considerable uplift
overall with sales revenue of NZ$8.1 million, up 31% from NZ$6.2
million in 2006.
The strong result for fourth quarter sales was driven by
continued growth in both of the existing businesses, NZ Nature
and Certified Organics. The Group's new acquisition in 2007,
Australian sustainable environmental management company VRM
(Vital Resource Management), delivered a highly encouraging
NZ$750,000 of sales in the fourth quarter, bringing its
contribution to sales for the second half of 2007 in at just
over NZ$1million.
Certified Organics' fourth quarter sales of NZ$400,000 were
three times the level achieved in the same period in 2006.
Overall, the full year sales for Certified Organics were up 15%,
to NZ$1.68 million. A key contributor to this was the initial
stocking orders for Certified Organics' BioWeed Control product
which recently received Australian regulatory approval, enabling
the product to be marketed to the Australian viticulture
industry.
Despite the adverse market conditions and high exchange rate
affecting all New Zealand exporters, New Zealand Nature returned
pleasing full year sales of NZ$5.3 million, up 13% on 2006. NZ
Nature achieved overseas sales growth of 17% in the fourth
quarter, driven by particularly strong demand from the UK and
continental Europe.
The Group expects the momentum delivered by VRM to continue in
2008. Sales are largely generated from VRM's microbially-
enhanced liquid fertilisers which are being sold to the
Queensland sugar and banana growing industries. These products
allow growers to reduce fertiliser input quantity and cost and
enhance environmental outcomes through reduced nutrient run-off
into rivers and the Barrier Reef.
The Group has sound strategies in place for continued,
accelerated growth in 2008. The company anticipates announcing
the full financial year results at the end of this month.
Auckland, New Zealand-based CER Group Ltd. --
http://www.certified-organics.com/-- formerly Certified
Organics Limited, is engaged in the development, manufacture and
marketing of naturally based biological control, hygiene and
health products for use in agriculture, industry and
domestically, both within New Zealand and for export. The
company is also involved in the sale of Internet catalogue goods
both within New Zealand and for export. The company's
subsidiaries include New Zealand Nature Company Limited, Organic
Interceptor Products Limited, Certified Organics (Aust) Pty
Limited and Certified Organics Inc.
The Troubled Company Reporter-Asia Pacific, citing a report
from ShareChat News, said on March 5, 2007, that CER Group's
December 2006 full-year loss narrowed to NZ$53,000 from
NZ$327,000 in 2005.
CONNECT SYSTEMS: Creditors' Proofs of Debt Due on Feb. 21
---------------------------------------------------------
The creditors of Connect Systems Limited are required to file
their proofs of debt by Feb. 21, 2008, to be included in the
company's dividend distribution.
The liquidators can be reached at:
David Stuart Vance
Henry David Levin
PPB McCallum Petterson
The Todd Building, Level 8
95 Customhouse Quay
PO Box 3156, Wellington
New Zealand
Telephone:(04) 499 7796
Facsimile:(04) 499 7784
CONTINENTAL PANEL: Taps Crichton & Horne as Liquidators
-------------------------------------------------------
The shareholders of Continental Panel Repairs (Chch) Ltd. met on
January 22, 2008, and appointed David Donald Crichton and Keiran
Anne Horne as the company's liquidators.
Creditors are required to file their proofs of debt by
February 22, 2008, to be included in the company's dividend
distribution.
The liquidators can be reached at:
David Donald Crichton
Keiran Anne Horne
c/o Crichton Horne & Associates Limited
Old Library Chambers
109 Cambridge Terrace
PO Box 3978, Christchurch
New Zealand
Telephone:(03) 379 7929
DREAM PROPERTY: Subject to CIR's Wind-Up Petition
-------------------------------------------------
On October 4, 2007, the Commissioner of Inland Revenue filed a
petition to have Dream Property Concepts Ltd.'s operations wound
up.
The petition will be heard before the High Court of Auckland on
February 14, 2008, at 10:00 a.m.
The CIR's solicitor is:
Kathleena Hemotitaha Smith
c/o Inland Revenue Department
Legal and Technical Services
5-7 Byron Avenue
PO Box 33150, Takapuna
Auckland
New Zealand
Telephone:(09) 984 1309
Facsimile:(09) 984 3116
DUKE STREET: Court to Hear Wind-Up Petition on February 14
----------------------------------------------------------
A petition to have Duke Street Discounts Ltd.'s operations wound
up will be heard before the High Court of Auckland on
Feb. 14, 2008, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition on
Oct. 29, 2007.
The CIR's solicitor is:
Simon John Eisdell Moore
c/o Meredith Connell
Forsyth Barr Tower, Level 17
55-65 Shortland Street
PO Box 2213, Auckland
New Zealand
Telephone:(09) 336 7556)
NO BAD PIZZAS: Fixes March 21 as Last Day to File Claims
--------------------------------------------------------
No Bad Pizzas Ltd. requires its creditors to file their proofs
of debt by March 21, 2008, to be included in the company's
dividend distribution.
The company's liquidators are:
John Howard Ross Fisk
Craig Alexander Sanson
c/o PricewaterhouseCoopers
113-119 The Terrace
PO Box 243, Wellington
New Zealand
Telephone:(04) 462 7238
Facsimile:(04) 462 7492
SALEPRO PLASTICS: Appoints Vance & Levin as Liquidators
-------------------------------------------------------
David Stuart Vance and Henry David Levin were named liquidators
of Salepro Plastics Limited on January 17, 2008.
Creditors are required to file their proofs of debt by
February 21, 2008, to be included in the company's dividend
distribution.
The liquidators can be reached at:
David Stuart Vance
Henry David Levin
PPB McCallum Petterson
The Todd Building, Level 8
95 Customhouse Quay
PO Box 3156, Wellington
New Zealand
Telephone:(04) 499 7796
Facsimile:(04) 499 7784
SALES & PROMOTIONS: Fixes February 21 as Last Day to File Claims
----------------------------------------------------------------
The creditors of Sales & Promotions NZ Ltd. are required to file
their proofs of debt by February 21, 2008, to be included in the
company's dividend distribution.
The company's liquidators are:
David Stuart Vance
Henry David Levin
PPB McCallum Petterson
The Todd Building, Level 8
95 Customhouse Quay
PO Box 3156, Wellington
New Zealand
Telephone:(04) 499 7796
Facsimile:(04) 499 7784
WELLINGTON STEEL: Taps Shephard & Dunphy as Liquidators
-------------------------------------------------------
On January 18, 2008, the shareholders of Wellington Steel
Construction Ltd. passed a resolution appointing Iain Bruce
Shephard and Christine Margaret Dunphy as the company's
liquidators.
The liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
c/o Shephard Dunphy Limited
Zephyr House, Level 2
82 Willis Street
Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
=====================
P H I L I P P I N E S
=====================
WENDY'S INT'L: Earnings at US$14 Mil. in Qtr. Ended Dec. 30
-----------------------------------------------------------
Wendy's International Inc. reported its preliminary, unaudited
financial results for the full year and fourth quarter of 2007.
The company reported net income of US$14.07 million in fourth
quarter ended Dec. 30, 2007, compared to net income of
US$3.03 million for the same period in the previous year.
For full year ended Dec. 30, 2007, the company reported net
income of US$87.90 million, compared to US$94.31 million for the
same period in the previous year.
"I am proud of our restaurant crews, franchisees and company
employees for what we accomplished in 2007," Kerrii Anderson,
chief executive officer and president, said. "We executed our
strategic plan, implemented many initiatives to drive the
business and made tough decisions to position Wendy's for future
growth.
"We produced significantly improved company store operating
margins and earnings growth in the face of an incredibly
challenging environment, with rising commodities and the
distraction of the Special Committee process," Mr. Anderson
added. "Our goal was to deliver EBITDA in the range of US$295-
US$315 million for the year, and we achieved that objective with
EBITDA of US$305 million, up 38% over the previous year."
"Our improved financial performance reflected modest same-store
sales growth, higher average check and excellent expense control
by our employees," Jay Fitzsimmons, chief financial officer,
said. "There is no question that our business is stronger today
than a year ago."
Phase 2 of its Strategic Plan
The company launched Phase 2 of its strategic plan, which
focuses on further growth in same-store sales and earnings in
2008.
"We have a powerful brand, and our objective in 2008 is to re-
ignite sales growth and drive quality and innovation throughout
our business," Mr. Anderson said. "In addition to a strong new
product lineup for 2008 and a re-energized focus on restaurant
operations, we are excited about our new advertising that
highlights Wendy's unique competitive advantage of quality.
Today, we are launching our 'Waaaay Better' campaign, and the
hero of our new advertising will be our quality food."
The company's evolution of its advertising approach is based on
extensive consumer research over the last eight months, working
in close collaboration with its agency partners and franchise
advertising committee.
"Our new campaign leverages Wendy's red-hair iconography, but
does so in a way that is more genuine and true to our brand,"
Mr. Anderson said. "Each television spot opens and closes with
an animated version of our familiar logo - the enduring image of
Wendy, a red-headed, little girl. Our Wendy icon stands for
wholesome authenticity and honest quality. It's one of the most
powerful, under-used assets in the consumer world today."
Discontinued operations
Wendy's completed its spinoff of Tim Hortons in the third
quarter of 2006 and completed the sale of Baja Fresh(R: 56.92,
- 0.10, -0.17%) Mexican Grill during the fourth quarter of 2006.
During the third quarter of 2007, the Company completed the sale
of Cafe Express. Accordingly, the after-tax operating results
of Tim Hortons, Baja Fresh and Cafe Express appear in the
"Discontinued Operations" line on the income statement.
Wendy's Joint Venture with Tim Hortons
Wendy's and Tim Hortons continue to operate approximately 100
combination restaurants in Canada as part of the joint venture.
The company refers to the entity that controls the real estate
of these combination restaurants as its Canadian restaurant real
estate joint venture with Tim Hortons. Wendy's and Tim Hortons
also operate approximately 40 combination restaurants in the
U.S., which are not included in the joint venture.
As a result of its 2006 spinoff of Tim Hortons, the company, in
accordance with generally accepted accounting principles,
accounts for its 50% share of the Canadian restaurant real
estate joint venture with Tim Hortons under the equity method of
accounting, rather than consolidating the results of the joint
venture in the company's financial statements.
Without this change, company-operated restaurant EBITDA margins
would have been 10.9% for the full year. This change in
accounting for the company's joint venture with Tim Hortons
impacts several lines on the company's statement of income and
resulted in an overall reduction to full-year 2007 operating
income of US$7.2 million compared to the full-year of 2006.
At Dec. 30, 2007, the company's balance sheet showed total
assets of US$1.79 billion, total liabilities of US$0.99 billion,
and total shareholders' equity of US$0.80 billion.
Headquartered in Dublin, Ohio, Wendy's International Inc. (NYSE:
WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and
fast casual restaurants in the United States, Canada, Mexico,
Argentina, and the Philippines, among others.
* * *
As reported in the Troubled Company Reporter on June 21, 2007,
Moody's Investors Service lowered all ratings of Wendy's
International, Inc. and placed all ratings on review for further
possible downgrade. Affected ratings include the company's
Ba2 corporate family rating which was lowered to Ba3 and
its (P)B1 preferred stock shelf rating which was lowered to
(P)B2.
Additionally, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Wendy's
International Inc. to 'BB-' from 'BB+'. All ratings remain on
CreditWatch with negative implications, where they were placed
on April 26, 2007.
=================
S I N G A P O R E
=================
ASSOCIATED DEVELOPMENT: Contributories to Meet on February 15
-------------------------------------------------------------
Associated Development Private Limited, which is in compulsory
liquidation, will hold a meeting for its contributories at
3:00 p.m. on February 15, 2008. During the meeting, the
company's liquidator, Tam Chee Chong, will provide the attendees
with property disposal and winding-up reports. Moreover, the
contributories will be asked to appoint a Committee of
Inspection.
The liquidator can be reached at:
Tam Chee Chong
6 Shenton Way
#32-00 DBS Building Tower 2
Singapore 068809
BENCHMARK ELECTRONICS: Earns US$21 Mil. in Fourth Quarter 2007
--------------------------------------------------------------
Benchmark Electronics Inc. reported sales of US$735 million for
the quarter ended Dec. 31, 2007, compared to US$737 million for
the same quarter in the prior year. Fourth quarter net income
was US$21 million. In the comparable period of 2006, net income
was US$28 million.
Excluding restructuring charges, integration costs, amortization
of intangibles and the impact of stock-based compensation costs,
the Company would have reported net income of US$25 million in
the fourth quarter of 2007. Excluding restructuring charges and
the impact of stock-based compensation costs, the Company would
have reported net income of US$29 million in the fourth quarter
of 2006.
Sales for the years ended Dec. 31, 2007 and 2006 were each
US$2.9 billion. Net income for the year ended Dec. 31, 2007,
was US$93 million. In the prior year, net income was
US$112 million.
Excluding restructuring charges, integration costs, amortization
of intangibles, the impact of stock-based compensation costs and
a discrete tax benefit related to a previously closed facility,
the company would have reported net income of US$98 million in
2007. Excluding restructuring charges, the impact of stock-
based compensation expense and a tax benefit resulting from the
closure of our UK facility, the company would have reported net
income of US$113 million in 2006.
"In 2007 we achieved several major goals -- we expanded our
customer base, enhanced our manufacturing and engineering
capabilities, completed the integration of recent acquisitions,
and realigned our manufacturing facilities," said Chief
Executive Officer, Cary T. Fu. "We are delighted to have the
heavy lifting behind us. We are on an excellent pathway for
increased business from new and existing customers in 2008."
Fourth Quarter 2007 Financial Highlights
-- Operating margin for the fourth quarter was 3.0% on a GAAP
basis and was 3.7%, excluding restructuring charges,
integration costs, amortization of intangibles and the
impact of stock-based compensation expense.
-- Cash flows provided by operating activities for the fourth
quarter were approximately US$59 million.
-- Cash and short-term investments balance was US$382 million
at Dec. 31, 2007.
-- Total debt outstanding was US$13 million.
-- Accounts receivable was US$486 million at Dec. 31, 2007;
calculated days sales outstanding were 60 days.
-- Inventory was US$362 million at Dec. 31, 2007; inventory
turns were 7.6 times.
-- Repurchases of common shares through Feb. 4, 2008, were
US$74 million.
2008 Outlook
For 2008, the company expects top line growth of 5-8% for the
year and earnings per share growth in the range of 15-20%,
excluding amortization of intangibles and the impact of stock-
based compensation expense.
Looking forward, sales for the first quarter of 2008 are
expected to be between US$700 million and US$725 million.
About Benchmark Electronics
Based in Angleton, Texas, Benchmark Electronics Inc. (NYSE: BHE)
-- http://www.bench.com/-- manufactures electronics and
provides services to original equipment manufacturers of
computers and related products for business enterprises, medical
devices, industrial control equipment, testing and
instrumentation products, and telecommunications equipment. The
company's global operations include facilities in The
Netherlands, Romania, Ireland, Brazil, Mexico, Thailand, China
and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 21, 2008, Moody's Investors Service has assigned a Ba2
(LGD-3, 39%) rating to Benchmark Electronics, Inc.'s new 5-year
US$100 million senior secured revolving credit facility due 2012
and affirmed the company's Ba3 corporate family rating. Moody's
said the rating outlook is stable.
CHOW CHO: Contributories' Meeting Set for February 15
-----------------------------------------------------
Chow Cho Poon (Private) Limited, which is in compulsory
liquidation, will hold a meeting for its contributories at 3:00
p.m., on February 15, 2008.
The company's liquidator is:
Tam Chee Chong
6 Shenton Way
#32-00 DBS Building Tower 2
Singapore 068809
GUAN GUAN: Creditors' Proofs of Debt Due on February 29
-------------------------------------------------------
The creditors of Guan Guan Plastic Industries Pte Ltd are
required to file their proofs of debt by February 29, 2008, to
be included in the company's dividend distribution.
The company's liquidator is:
Chia Kok Hwa (Ms)
c/o K H Chia & Co
101 Upper Cross Street
#04-16 People's Park Centre
Singapore 058357
POLYONE CORP: Earns US$7.1 Million in 2007 Fourth Quarter
---------------------------------------------------------
PolyOne Corporation reported fourth-quarter consolidated sales
of US$631.3 million, a 6% increase compared with US$595.2
million in the fourth quarter of 2006.
Net income was US$7.1 million, or US$0.08 per diluted share, for
the fourth quarter of 2007 versus US$14.5 million from
continuing operations, or US$0.16 per diluted share, for the
fourth quarter of 2006. Included in fourth quarter results were
special items that equate to a US$0.01 per share charge in 2007
contrasted to a US$0.10 per share gain in 2006.
On a comparable basis, adjusting for special items, PolyOne
reported US$0.09 earnings per share in the fourth quarter of
2007, a 50% increase compared to the US$0.06 per share earned in
the fourth quarter of 2006.
"We are encouraged that we delivered both top line growth and
stronger earnings during the quarter, and are energized by the
fact that never in PolyOne's history have so many opportunities
been present to affect change and drive cash flow and earnings,
despite the economic uncertainty Corporate America faces near
term," said Stephen D. Newlin, chairman, president and chief
executive officer. "We accomplished much in 2007, including
materially reducing our historical earnings volatility by
divesting our interest in OxyVinyls which deleveraged our
balance sheet and accelerated our global specialization
strategy."
"We have prudently balanced commercial investment with
productivity increases, positioning us to leverage our new
commercial capabilities and focus our energy on profitably
growing our businesses during this period of economic
turbulence," Newlin added.
International Color and Engineered Materials sales and operating
income for fourth quarter 2007 increased 15% and 48%,
respectively, compared with the fourth quarter of 2006. PolyOne
Distribution sales increased 10%, while operating income rose
from US$3.6 million to US$5.7 million, a 58% increase, in the
fourth quarter of 2007 compared to the fourth quarter of 2006.
Operating income for segments reported within 'All Other'
meaningfully improved by US$4.0 million to earn US$1.5 million
in the fourth quarter 2007, compared with the US$2.5 million
loss reported in the same period last year. For the fourth
quarter of 2007, operating income for PolyOne's non-vinyl
businesses increased 175% compared with the same period a year
ago. Non-vinyl businesses include PolyOne Distribution,
International Color and Engineered Materials and All Other.
Fourth quarter Vinyl Business sales were flat while earnings
fell US$8 million, or approximately 70%, compared to the fourth
quarter of 2006, in line with Company expectations, reflecting
weak residential construction market demand and downward margin
pressure resulting from higher raw material and energy costs.
"Earnings in the fourth quarter reflected an important and
meaningful shift toward our specialty platform. The magnitude
of our non-vinyl income growth reflects significant strides in
building an earnings platform separate from the cyclical
residential housing market. As we look ahead, we expect this
base will continue to grow to become the primary source of
earnings and earnings growth for the company," stated Newlin.
Sales for the full year 2007 were US$2.64 billion, up 1% from
the US$2.62 billion reported for 2006.
2007 Highlights
-- Divestiture of our 24% interest in OxyVinyls for
US$261 million, eliminating a major source of earnings
volatility.
-- Financial profile strengthened with redemption of entire
US$241 million balance of the company's 2010 senior
notes, resulting in lowest outstanding debt balance and
leverage ratio in company history.
-- Announced the acquisition of GLS Corporation (which
subsequently closed on Jan. 2, 2008), a leading North
American business in the US$3.5 billion global
thermoplastic elastomers (TPE) market.
-- Established vinyl compounding foothold in China by
acquiring the assets of Ngai Hing PlastChem.
-- Specialty platform businesses' operating income more than
doubled to nearly US$30 million in 2007 compared with
2006:
-- International Color and Engineered Materials delivered
strong sales and earnings growth of 16% and 25%,
respectively;
-- North American Color reversed steep losses with a greater
than US$9 million operating income improvement from 2006;
and
-- Specialty platform gross margin as a percent of sales
increased 1.7% points to over 16% in 2007.
-- PolyOne Distribution set an earnings record, posting a
16% increase compared to 2006.
-- Innovation processes are gaining momentum with 27 new
commercial launches in 2007.
-- Increased commercial resources by adding 127 people since
first quarter 2006 and upgraded talent level by investing
in training to develop sales skills and marketing
processes.
2008 Outlook
The company anticipates 2008 total company sales growth in the
range of 10% to 12%, as a result of sales improvements in our
distribution and specialty businesses, including sales from GLS,
despite the likelihood of incremental degradation in the North
American residential construction market. Similarly, PolyOne
expects full-year earnings growth in 2008 even though near term
economic conditions should remain challenging. Growth in
PolyOne's non-vinyl businesses, operating improvements and lower
interest expense underpin current expectations. Beyond the
broader economic conditions, raw material and energy costs
remain a fluid dynamic that could impact the magnitude and
direction of our preliminary forecast.
About PolyOne Corp.
Headquartered in northeast Ohio, PolyOne Corporation (NYSE: POL)
-- http://www.polyone.com/-- is a provider of specialized
polymer materials, services and solutions. The company
maintains operations in China, Colombia, Thailand, Singapore,
Belgium, Denmark, France, the United Kingdom, among others.
* * *
Moody's Investor Services placed PolyOne Corporation's senior
unsecured debt, long term corporate family and probability of
default ratings at 'B1' in July 2007. Moody's said the ratings
still hold to date with a stable outlook.
SEA CONTAINERS: Inks Pact with Two Pension Schemes Trustees
-----------------------------------------------------------
Sea Containers has reached agreement in principle with the
Trustees of the two main Sea Containers Pension Schemes to agree
the amount of their claims against the Sea Containers estate.
This is a critical and positive milestone in its efforts to
emerge from Chapter 11.
Since the Chapter 11 negotiations first began in October 2006,
the board of directors and the officers of Sea Containers have
been focused on achieving a plan of reorganization that provides
full and fair settlement for all creditors. The major creditors
involved are the 1983 and the 1990 pension funds which have
almost 1500 members between them and the holders - thought to be
a number of US hedge funds - of the four outstanding bond
issues.
The agreement with the Trustees for the pension funds, which are
estimated to be in deficit by approximately US$200 million under
the s75 'buy out' basis prescribed by UK law, will allow the
Company and The trustees to avoid costly and protracted
litigation in multiple and potentially competing jurisdictions.
The agreement also creates an additional reserve of
US$69 million for certain potential pension scheme liabilities
in respect of age-related equalization changes.
In connection with the agreement, Sea Containers has withdrawn
its appeal against the Financial Support Direction. The FSD,
which sought to oblige Sea Containers Limited, the ultimate
parent company, to put in place additional financial support for
the pension funds, was handed down by the Determinations Panel
of the UK Pensions Regulator on 3 July 2007. Sea Containers
considers that the settlement will adequately address any FSD
and that the current legal proceedings would be of no further
benefit. Sea Containers is therefore pleased to have reached a
timely and consensual settlement with the Trustees.
Sea Containers, alongside the Trustees, will be seeking approval
from the Regulator for the proposed settlement. Both sides are
confident an approval will be granted in the near future.
The proposed settlement is also subject to approval by the U.S.
Bankruptcy Court for the District of Delaware and may be
objected to by other creditors of the estate.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP. In its schedules
filed with the Court, Sea Containers disclosed total assets of
US$62,400,718 and total liabilities of US$1,545,384,083.
The Court gave the Debtors until Feb. 20, 2008, to file a plan
of reorganization.
SEA CONTAINERS: Court Approves SC Iberia & YMCL Guarantees
----------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized Sea Containers Ltd. and its
debtor-affiliates to enter into two Deeds of Guarantee in favor
its two wholly owned non-debtor subsidiaries, Sea Containers
Iberia SA and Yorkshire Marine Containers Ltd.
As reported in the Troubled Company Reporter on Jan. 22, 2008,
the Debtors sought permission from the Court to enter into the
SC Iberia and YMCL Guarantees, in connection with a potential
settlement by SCL and certain of its subsidiaries, of
intercompany claims asserted by GE SeaCo SRL and its
subsidiaries.
Sanjay Bhatnagar, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, related that many of the GE SeaCo
Entities' claims against the Debtors are currently under a
pending arbitration proceeding. However, the Parties excluded
certain claims from arbitration in an attempt to consensually
resolve those claims. The excluded claims consist of more than
$90,000,000 in intercompany claims asserted by GE SeaCo out of
ordinary course business transactions between the Parties.
After extensive negotiations among the Parties, the Official
Committee of Unsecured Creditors of Sea Containers Ltd. and the
Official Committee of Unsecured Creditors of Sea Containers
Services Ltd., reached a stipulation for the resolution of the
Intercompany Claims, the terms of which are yet to be finalized.
As a condition to their entry into the Stipulation, the
directors of SC Iberia and YMCL have required that SCL provide
certain guarantees in exchange for releasing their receivable
balances against the GE SeaCo Entities, Mr. Bhatnagar disclosed.
Accordingly, SCL made arrangements to provide postpetition
guarantees to SC Iberia and YMCL for the value of their
receivables due from the GE SeaCo Entities, amounting to
US$585,861 for YMCL and US$189,858 for SC Iberia.
Each Guarantee is payable solely to the extent necessary to fund
recoveries of sums owed to creditors of SC Iberia and YMCL,
other than the SCL Entities, and only upon the occurrence of the
earlier of:
-- certain insolvency events with respect to SC Iberia and
YMCL; or
-- the Debtors' confirmation of a plan of reorganization that
includes a final settlement of any of the Intercompany
Claims.
The Stipulation provides that as of June 30, 2007, the GE SeaCo
Entities owe approximately US$4,300,000 to SCL and its
subsidiaries on account of all Intercompany Claims. The amount
would be adjusted based on certain payments made by and between
the GE SeaCo Entities and the SCL Parties subsequent to June 30.
Pursuant to the Stipulation, after accounting for the post-June
30 payments, the GE SeaCo Entities agree to set aside at least
US$600,000 in a segregated account as the net balance owing to
the SCL Parties. The funds would remain in the segregated
account for SCL's benefit, pending resolution of all the GE
SeaCo Entities' claims, including those subject to arbitration.
Mr. Bhatnagar contended that the Stipulation, if finalized,
would maximize value for the bankruptcy estates, and that SCL's
grant of the Guarantees is necessary to induce SC Iberia and
YMCL to enter into the Stipulation.
The Guarantees serve the Debtors' interests in helping to ensure
that third-party claims against SC Iberia and YMCL are funded,
thus, avoiding the need for the third-party claimants to resort
to collection efforts, which may reach back to the bankruptcy
estates, Mr. Bhatnagar explained.
Judge Carey said that the Guarantees and the authorization are
only effective upon execution and approval of the stipulation.
He noted that the maximum guaranteed amount will be reduced by
the amount of any offset by GE SeaCo on accounts owed by SC
Iberia or YMCL.
Judge Carey also ruled that the Debtors' and the Committees'
rights and defenses are reserved with respect to:
-- the services agreement between SCL and SCSL;
-- the final determination of the existence, amount and
treatment of any related or underlying Intercompany
Claims; and
-- the appropriate allocation of any costs or obligations.
Judge Carey further noted that the order is without prejudice to
the rights of the Committees to oppose the approval of any
ultimate resolution of the intercompany claims. He said that
the Committees may seek reconsideration of the Order on any
grounds, and at any time prior to the approval of the
stipulation resolving the Intercompany Claims.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP. In its schedules
filed with the Court, Sea Containers disclosed total assets of
US$62,400,718 and total liabilities of US$1,545,384,083.
The Court gave the Debtors until Feb. 20, 2008 to file a plan of
reorganization. (Sea Containers Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
SEAGATE TECH: Board of Directors OK's US$2.5BB Share Repurchase
---------------------------------------------------------------
Seagate Technology divulged that its board of directors has
approved an increase in its quarterly dividend from US$0.10 to
US$0.12 per share, effective with the dividend expected to be
paid to shareholders after the conclusion of the company's third
fiscal quarter of 2008.
Additionally, the board of directors has authorized the company
to repurchase up to an additional US$2.5 billion of its
outstanding common shares over the next 24 months. This new
share repurchase authorization continues our commitment to
enhancing shareholder value.
Seagate expects to fund the share repurchase through a
combination of cash on hand, future cash flow from operations
and potential alternative sources of financing. Share
repurchases under this program may be made through a variety of
methods, which may include open market purchases, privately
negotiated transactions, block trades, accelerated share
repurchase transactions or otherwise, or by any combination of
such methods. The timing and actual number of shares
repurchased will depend on a variety of factors including the
common share price, corporate and regulatory requirements and
other market and economic conditions. The share repurchase
program may be suspended or discontinued at any time.
About Seagate Technology
Headquartered in Grand Cayman, Cayman Islands, Seagate
Technology (NYSE: STX) -- http://www.seagate.com-- is engaged
in the design, manufacture and marketing of rigid disc drives.
The company produces a range of disc drive products addressing
enterprise applications, where its products are used in
enterprise servers, mainframes and workstations; desktop
applications, where its products are used in desktop computers;
mobile computing applications, where the company's products are
used in notebook computers, and consumer electronics
applications, where its products are used in a variety of
devices, such as digital video recorders, gaming devices and
other consumer electronic devices that require storage. In May
2006, the company acquired Maxtor Corporation. Seagate
Technology has R&D and product sites in: Silicon Valley,
California; Pittsburgh, Pennsylvania; Longmont, Colorado;
Bloomington and Shakopee, Minnesota; Springtown, Northern
Ireland; and Singapore.
SEAGATE TECHNOLOGY: S&P's BB+ Rating Unmoved by Share Repurchase
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Scotts Valley, California-based Seagate Technology
(BB+/Stable/--) are not affected by the company's announcement
that the board of directors has approved a US$2.5 billion share
repurchase program. The new program replaces a US$2.5 billion
authorization approved in August 2006. Similar to its prior
share repurchase program, the authorization is for two years,
and S&P expects it to be administered at a measured pace.
Seagate's liquidity is adequate to fund a US$2.5 billion
program, with cash of US$1.75 billion as of Dec. 31, 2007, and
about US$700 million of discretionary cash flow in the 12 months
ended December 2007. The company is expected to maintain a
moderate leverage profile.
*********
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.
*********
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. Azela Jane Taladua, Rousel Elaine Tumanda,
Valerie Udtuhan, Tara Eliza Tecarro, Marjorie C. Sabijon,
Frauline Abangan, and Peter A. Chapman, Editors.
Copyright 2008. 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 ***