/raid1/www/Hosts/bankrupt/TCRAP_Public/080422.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, April 22, 2008, Vol. 11, No. 79
Headlines
A U S T R A L I A
CARCONE PTY: Members to Receive Wind-Up Report on April 30
CENTRO PROPERTIES: No Bulk Buyer Available on Assets for Sale
CITIGROUP PTY: Moody's Changes Outlook to Negative from Stable
GCH REALISATIONS: To Declare Dividend on June 3
JAMES HARDIE: Stays Mum on Transfer of Parent Company to U.S.
JSD INTERNATIONAL: Creditors Opt to Liquidate Business
LAKEMBA RETURNED: Placed Under Voluntary Liquidation
MSP HOLDINGS: Inability to Pay Debts Prompts Wind-Up
OPES PRIME: Trader Dealer Clients Unharmed by Collapse
OPES PRIME: Court Mulls Over ANZ, Beconwood Case
RETORNY PTY: Undergoes Liquidation Proceedings
SHOALHAVEN FRAMES: Final Meeting Slated for April 30
WILLIAM M. MERCER: Members' Final Meeting Set for April 29
C H I N A & H O N G K O N G & T A I W A N
AGRICULTURAL BANK: Inks Comprehensive Pact with Benxi Iron
ALERIS INTERNATIONAL: S&P Puts 'B+' Rating Under Negative Watch
CHINA CONSTRUCTION: BofA Mulls Sale of 9% Stake in the Bank
CHINA SOUTHERN: Earns RMB796 Million in First Quarter 2008
OASIS AIRLINES: Founder Apologizes for Business Collapse
PETROLEOS DE VENEZUELA: Invests VEF1 Mil. in Six Social Projects
PETROLEOS DE VENEZUELA: Gov't Inks Three Oil Supply Contracts
PETROLEOS DE VENEZUELA: To Install Nine Pumps in Nueva Esparta
I N D I A
GENERAL MOTORS: Delta Township Plant Workers Rally, Talks Resume
GENERAL MOTORS: Plastech Complains About Tooling Repossession
GENERAL MOTOR: Delta Township Factory Workers Walk Off from Jobs
ICICI BANK: Hikes Auto Loan Rates Effective April 15
TATA MOTORS: Increased Competition Cues Firm to Bring Ace Abroad
TATA STEEL: MMTC's Board Approves Joint Venture With Firm
I N D O N E S I A
ANEKA TAMBANG: Shareholders Okay Flexible Bid for Herald
BANK CENTRAL: Optimistic on Meeting IDR14-MIl. Loan Target
BANK MANDIRI: Sees 2008 Loan Growth to Exceed 22%
GARUDA INDONESIA: To Fly Jakarta-Pontianak Route Thrice Daily
PERUSAHAAN LISTRIK: Losses to Continue Due to High Oil Prices
J A P A N
AMPEX CORP: Earns US$904,000 in Year Ended Dec. 31, 2007
AMPEX CORP: Discloses Terms of Chapter 11 Reorganization Plan
CITIBANK JAPAN: Moody's Affirms “B” Financial Strength Rating
DELPHI: Plastech Wants to Return Tooling to Delphi Automotive
JAPAN AIRLINES: In Discussions With MUFG on JALCard Sale
K O R E A
HYNIX SEMI: Sees DRAM Market Improvement in Second Half of 2008
KRISPY KREME: Posts Fourth Quarter Net Loss of US$31.8 Million
M A L A Y S I A
FOAMEX INT'L: David J. Lyon Joins Board of Directors
IDAMAN UNGGUL: BNM Okays Disposal of Equity Interest in Tahan
MANGIUM INDUSTRIES: Inks Share Sale Agreement with Tekun Teguh
SHAW GROUP: Earns US$8.9 Million in Quarter Ended February 29
N E W Z E A L A N D
BROADBEACH GROUP: Placed Under Voluntary Liquidation
CLEAR CHANNEL: Extends Offer's Expiration Date to April 25
EMBEDDEDFUSION LTD: Fixes April 25 as Last Day to File Claims
IJ CONTRACTORS: Subject to Steel & Tube's Wind-Up Petition
JOLLY ENGINEER: Taps Whittfield and van Delden as Liquidators
LONDON TRADERS: Commences Liquidation Proceedings
MACRON HOLDINGS: Taps John Chapman as Liquidator
PURSUIT PROPERTY: Appoints Taylor as Liquidator
SAWGRASS DEVELOPMENTS: Wind-Up Petition Hearing Set for April 24
SHIRE DEVELOPMENTS: Court to Hear Wind-Up Petition on April 24
W.SCOTT/MORRIS AUTO: Fixes May 9 as Last Day to File Claims
P H I L I P P I N E S
PRC LLC: Files Supplement Site Consolidation Incentive Plan
PRC LLC: Committee Wants to Employ Halperin as Conflicts Counsel
PRC LLC: Inks Stipulation Resolving Pact With Spirit Airlines
S I N G A P O R E
ADVANCED MICRO: Posts US$358MM Net Loss in First Quarter of 2008
FABLESS INVESTMENTS: Creditors' Proofs of Debt Due on May 5
J MORITA: Court Enters Wind-Up Order
NOVO NORDISK: Requires Creditors to File Claims by May 5
TEO BROS.: Court Enters Wind-Up Order
T H A I L A N D
BLOCKBUSTER: CEO Keyes' US$5.6MM Pay Lower than Predecessor's
DOLE: S&P Lifts Debt Rating to B- and Puts '4' Recovery Rating
* BOND PRICING: For the Week 21 April to 25 April 2008
- - - - -
=================
A U S T R A L I A
=================
CARCONE PTY: Members to Receive Wind-Up Report on April 30
----------------------------------------------------------
Andrew Blevin, Carcon Pty. Ltd.'s appointed estate liquidator,
will meet with the company's members on April 30, 2008, to
provide them with property disposal and winding-up reports.
Carcon Pty. Ltd. is a dealer of new and used car. The company
is located at Ferntree Gully, in Victoria, Australia.
CENTRO PROPERTIES: No Bulk Buyer Available on Assets for Sale
-------------------------------------------------------------
With its deadline to pay off a $4.9 billion short-term debt just
days away, Centro Properties Group may be forced to sell the
25 properties in its Australian wholesale fund on a piecemeal
basis due to the unavailability of buyers who can buy the entire
fund.
However, until now, Centro Properties is still looking to sell
its assets including the $2.3 billion fund in bulk, Turi Condon
of The Australian relates.
The company is facing pressure from lenders to speed up the sale
of its key assets to bring down its liabilities as it fast
approaches its debt refinancing deadline, a report by Carolyn
Cummins and Danny John of The Sydney Morning Herald said, as
cited by the Troubled Company Reporter-Asia Pacific last month.
On March 31, 2008, the Troubled Company Reporter-Asia Pacific,
citing an emailed statement to Laura Cochrane of Bloomberg News,
reported that Centro Properties spokesman, Jim Kelly, said that
negotiation has been initiated by the company with its
Australian bankers to extend the April 30, 2008 debt payment
deadline by five months until September 30.
Should no agreement extending the due date is reached, Centro
chief executive Glenn Rufrano told Kris Hudson at The Wall
Street Journal that the company would need to file for the
Australian equivalent of bankruptcy.
Centro's lenders, according to Bloomberg, include Commonwealth
Bank of Australia, Australia & New Zealand Banking Grouop Ltd.,
National Australia Bank Ltd., JPMorgan Chase & Co., Royal Bank
of Scotland Group Plc and BNP Paribas.
About Centro Properties
Centro Properties Group -- http://www.centro.com.au/-- is a
Melbourne, Australia-based company that comprises the operations
of Centro Property Trust and its entities, which are engaged in
property investment, property management, property development
and funds management.
The company operates in two business segments: property
ownership business and services business. The Company derives
income from retail property rentals of shopping center space to
retailers across Australasia and the United States. It also
derives income from its retail property investments in listed
and unlisted entities. Its services business activities include
incorporating funds management, property management and
development and leasing. During the fiscal year ended June 30,
2007, the Company acquired New Plan Excel Realty Trust, Heritage
Property Investment Trust and Galileo Funds Management, as well
as assumed full ownership of its United States management
operations.
* * *
The Troubled Company Reporter-Asia Pacific reported on Jan. 4,
2008, that Standard & Poor's Ratings Services lowered its issuer
credit, senior-unsecured debt and preferred stock ratings to
'CCC+' with negative implications reflecting the potential of
the group's assets to be sold in softening market conditions,
particularly in the U.S.
CITIGROUP PTY: Moody's Changes Outlook to Negative from Stable
--------------------------------------------------------------
Moody's Investors Service changed to negative, from stable, the
outlook for Citigroup Pty Ltd's Aa3 deposit and debt ratings.
The bank financial strength rating of C+ was not affected.
The rating action follows a similar change of outlook to
negative for Citigroup Inc.'s Aa3 debt ratings.
The deposit and debt ratings of Citigroup Pty Ltd are higher at
Aa3 than its baseline credit assessment of A2, which is derived
from the BFSR of C+ and addresses the bank's stand-alone credit
profile. This is because its debt and deposit ratings reflect
the high degree of integration of Citigroup Pty Ltd's with the
broader group, and Moody's expectation that a high degree of
parental support will be forthcoming, in case of need.
Consequently, a rating action on the parent's ratings has a
flow-on effect on the supported deposit and debt ratings of
Citigroup Pty Ltd.
Citigroup Pty Ltd is the Australian retail banking subsidiary of
Citigroup Inc. It is headquartered in Sydney, New South Wales,
Australia and reported total assets of AUD18 billion at FYE
2007.
GCH REALISATIONS: To Declare Dividend on June 3
-----------------------------------------------
GCH Realisations Pty. Limited will declare first and final
dividend for its priority creditors on June 3, 2008.
Only creditors who were able to file their proofs of debt by
April 15, 2008, will be included in the company's dividend
distribution.
The company's deed administrator is:
Martin J. Green
GHK Green Krejci
1 Castlereagh Street, Level 13
Sydney, New South Wales 2000
Australia
About GCH Realisations
Gch Realisations Pty. Limited provides management services. The
company is located at Stanmore, in New South Wales, Australia.
JAMES HARDIE: Stays Mum on Transfer of Parent Company to U.S.
-------------------------------------------------------------
Ean Higgins of The Australian writes that James Hardie
Industries Ltd. plans to liquidate its parent company in the
Netherlands to the United States.
The Australian, which was able to obtain secret company
documents relates that James Hardie would "liquidate" its Dutch
company and become effectively an American company registered in
Delaware, although some operations might officially be based in
obscure European legal havens to avoid tax.
James Hardie's Australian and New Zealand operations would be
separated from the US company, either to be sold off or
incorporated as independent local companies, writes Mr. Higgins.
Peter Baker, James Hardie's Asia-Pacific vice-president told Mr.
Higgins he did not know the specifics of the plan, but
understood that a review of domicile and tax options was being
undertaken by Netherlands and US-based executives.
Mr. Higgins states that this plan of the company is likely to
cause deep concerns to Australian asbestos victims, unions and
the New South Wales Government, which secured a AU$4 billion
deal in which James Hardie will pay compensation to thousands of
people over the next 40 years.
ABC News relates that the Australian Council of Trade Unions
(ACTU) president Sharan Burrow says workers and asbestos
campaigners need assurances that their jobs and claims for
compensation will be safe.
The Australian Associated Press relates that Ms. Burrow has "two
primary concerns:
* to know James Hardie's intentions about their Australian
operations; and
* hear from James Hardie that this is not about any of the
commitments that they've made in regards to victims'
compensation."
ABC News reports that a James Hardie spokesman said its
compensation agreement with asbestos victims is legally binding
and allows for a change in country and parent company.
The Australian Associated Press quotes James Hardie vice
president of investor relations Steve Ashe as saying, "The
company has no official comment to make."
James Hardie has not commented about its intentions or what
impact a sale would have on its Australian operations and
commitments, relates AAP.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/
-- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives.
The company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established.
By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia. Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.
In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades. When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.
As reported by Asbestos Litigation on Feb. 16, 2007, the
Australian Securities & Investments Commission has sued James
Hardie Industries NV, claiming the Company misled investors over
the cost of compensating people sickened by asbestos. The ASIC
said that Chairman Meredith Hellicar, former Chief Executive
Officer Peter MacDonald and eight other officials face bans from
running a public company and fines of more than AU$200,000 or
US$160,000.
The suit centers on a Feb. 16, 2001 press release when the
Company said a newly created AUD293 million fund was
"sufficient" to compensate victims of asbestos poisoning. A
government inquiry later found the fund would have run out of
money in three years and the Company was forced to set up a new
AU$1.6 billion compensation fund.
JSD INTERNATIONAL: Creditors Opt to Liquidate Business
------------------------------------------------------
JSD International Consultants Pty. Ltd.'s members agreed on
March 11, 2008, to voluntarily liquidate the company's business.
The company has appointed Michael Dwyer to facilitate the sale
of its assets.
The liquidator can be reached at:
Michael Dwyer
Dwyer Corporate
455 Bourke Street, Level 6
Melbourne, Victoria 3000
Australia
About JSD International
JSD International Consultants Pty. Ltd. is involved with highway
and street construction, except elevated highways. The company
is located at Alice Springs, in NT, Australia.
LAKEMBA RETURNED: Placed Under Voluntary Liquidation
----------------------------------------------------
Lakemba Returned Soldiers' Club Ltd.'s members agreed on
March 7, 2008, to voluntarily liquidate the company's business.
The company has appointed Peter Murray Walker to facilitate the
sale of its assets.
The liquidator can be reached at:
Peter Murray Walker
Ferrier Hodgson
Grosvenor Place, Level 13
225 George Street
Sydney, New South Wales 2000
Australia
About Lakemba Returned
Lakemba Returned Soldiers' Club Ltd. is into deals with civic,
social, and fraternal associations. The company is located at
Lakemba, in New South Wales, Australia.
MSP HOLDINGS: Inability to Pay Debts Prompts Wind-Up
----------------------------------------------------
During a general meeting held on March 29, 2008, the members of
MSP Holdings Pty Limited resolved to voluntarily wind up the
company's operations due to its inability to pay its debts.
The company's liquidator is:
Blair Pleash
c/o Hall Chadwick
31 Market Street, Level 29
Sydney, New South Wales 2000
Australia
About MSP Holdings
MSP Holdings Pty. Limited operates meat and fish markets. The
company is located at Brookvale, in New South Wales, Australia.
OPES PRIME: Trader Dealer Clients Unharmed by Collapse
------------------------------------------------------
Opes Prime Group Ltd.'s online trading service clients have
emerged relatively unscathed by the collapse of the firm, Mahesh
Sharma writes for The Australian.
The Australian reports that Opes' Trader Dealer clients were
able to access their accounts for the first time since the Opes
collapse, after the platform was revived by the financial
adviser MDS Financial Group and corporate advisory firm Box Red.
It has been rebranded as Trader Dealer Online, says the report.
According to The Australian, the relaunch of the business was
possible because the majority of Trader Dealer's operations were
separate from Opes Prime, with accounts and stock held by
Berndale Securities, and cash management trust accounts held by
Macquarie Bank and Adelaide Bank.
MDS chief executive of online broking David Wylie told The
Australian that "a fairly large amount of the clients actually
did avoid the harder end of the stick...purely because the way
accounts were structured, the bank accounts and holdings were
structured in the clients' names. There's a fairly large
percentage that have missed out on a few areas of problems that
other Opes clients may not have."
Mr. Wylie, relates The Australian, said a large percentage of
clients were sticking around because they wanted to.
The Australian states that Mr. Wylie did not not comment on the
terms of the acquisition and wouldn't give an exact figure but
he said the number of clients MDS acquired was "certainly in the
thousands."
About Opes Prime Group Ltd
Opes Prime Group Ltd is an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients. The Group conducts business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:
1) Opes Prime Stockbroking Limited is a full Market
Participant of the Australian Stock Exchange Ltd, and
holds an Australian Financial Services Licence (#247408)
which enables it to deal and advise in financial services
and products to retail and wholesale clients. The company
was first registered on 10 March 1999, and started
business with its current shareholders in 2005. Opes
Prime Stockbroking is a specialist provider of securities
lending and equity financing services. In Singapore, the
firm operates through Opes Prime Group's wholly owned
subsidiary, Opes Prime International Pte Ltd. In
Australia, Opes Prime Stockbroking has granted Authorized
Representative status to Trader Dealer Pty Ltd, an on-line
non-advisory trading execution service for the semi-
professional and professional trader.
2) Opes Prime Structured Products Pty Ltd develops, manages
and markets specialized leveraged products for the high
net worth market, providing outstanding risk protection
and return potential.
3) Opes Prime Paradigm Pty Ltd, is a corporate finance and
advisory firm specializing in small and mid cap stocks.
4) In Singapore, Opes Prime Asset Management Pte Ltd provides
specialist hedge fund incubation, advisory and trade
management services, and Five Pillars Associates Pte Ltd
provides Islamic finance consultancy.
* * *
The Troubled Company Reporter Asia-Pacific reported on April 1,
2008, that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls. The Administrators are
currently examining the Group's affairs to quantify the likely
liability to OPSL's clients.
At the same time, Sal Algeri and Chris Campbell from the
Deloitte Corporate Reorganisation Group were appointed by a
secured creditor, ANZ Banking Group Ltd., as Receivers and
Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd,
Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd.
OPES PRIME: Court Mulls Over ANZ, Beconwood Case
------------------------------------------------
The Federal Court of Victoria has reserved its decision in a
legal bout between ANZ Banking Group Ltd. and stock broker
Beconwood Securities over who owns shares placed with Opes Prime
Group Ltd., reports The Australian Associated Press.
According to AAP, the court is trying to determine if Opes Prime
clients are entitled to have ANZ return to them equivalent
securities to shares originally pledged with Opes Prime in
return for loans.
Melbourne businessman Paul Choiselat's Beconwood Securities went
to the Federal Court seeking orders that ANZ return equivalent
securities to the shares of Beconwood placed with Opes Prime.
Beconwood, notes AAP, placed its Destra Corp. Ltd., Q Ltd. and
Jumbuck Entertainment Ltd. shares with Opes Prime.
AAP relates that Beconwood pledged AU$7 million worth of shares
to Opes Prime in return for a AU$1.3 million loan.
Michael Garner, counsel for Beconwood, said his client had
entered into what it thought was a margin lending agreement
involving a mortgage of shares, states AAP.
Mr. Garners said it was important to consider what retail
investors thought they were getting into when they entered into
agreements with Opes Prime -- and that they did not believe they
would lose title to their shares. Mr. Garner told the court a
true securities lending agreement required the borrower of the
shares to pay a margin and provide collateral, in this case
cash, says AAP. Mr. Garner argues that this contrasted with the
deal between Opes Prime and Beconwood.
Mr. Garner argued that Beconwood had entered into an equity
financing agreement, where the client lends securities as
collateral against cash. The intention was that the lender
retained beneficial ownership of the shares, relates AAP.
AAP reports that counsel for ANZ, Alan Archibald QC told the
court that Opes Prime clients had entered into a securities
lending arrangement with Opes Prime under, under which they
transferred title to their shares to Opes.
Mr. Archibald, relays AAP, said provisions in the agreement
between Opes Prime and its clients referred to a transfer of the
shares without any encumbrance.
Mr. Archibald said that the difference between what Beconwood
was loaned by Opes Prime, and the value of the shares placed
with Opes, reflected the quality of those shares, adds AAP.
About Opes Prime
Opes Prime Group Ltd is an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients. The Group conducts business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:
1) Opes Prime Stockbroking Limited is a full Market
Participant of the Australian Stock Exchange Ltd, and
holds an Australian Financial Services Licence (#247408)
which enables it to deal and advise in financial services
and products to retail and wholesale clients. The company
was first registered on 10 March 1999, and started
business with its current shareholders in 2005. Opes
Prime Stockbroking is a specialist provider of securities
lending and equity financing services. In Singapore, the
firm operates through Opes Prime Group's wholly owned
subsidiary, Opes Prime International Pte Ltd. In
Australia, Opes Prime Stockbroking has granted Authorized
Representative status to Trader Dealer Pty Ltd, an on-line
non-advisory trading execution service for the semi-
professional and professional trader.
2) Opes Prime Structured Products Pty Ltd develops, manages
and markets specialized leveraged products for the high
net worth market, providing outstanding risk protection
and return potential.
3) Opes Prime Paradigm Pty Ltd, is a corporate finance and
advisory firm specializing in small and mid cap stocks.
4) In Singapore, Opes Prime Asset Management Pte Ltd provides
specialist hedge fund incubation, advisory and trade
management services, and Five Pillars Associates Pte Ltd
provides Islamic finance consultancy.
* * *
The Troubled Company Reporter Asia-Pacific reported on April 1,
2008 that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls. The Administrators are
currently examining the Group's affairs to quantify the likely
liability to OPSL's clients.
At the same time, Sal Algeri and Chris Campbell from the
Deloitte Corporate Reorganisation Group were appointed by a
secured creditor, ANZ Banking Group Ltd., as Receivers and
Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd,
Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd.
RETORNY PTY: Undergoes Liquidation Proceedings
----------------------------------------------
Retorny Pty Limited's members agreed on March 10, 2008, to
voluntarily liquidate the company's business. The company has
appointed Morgan James Chubb to facilitate the sale of its
assets.
The liquidator can be reached at:
Morgan James Chubb
Clout & Associates
144-148 West High Street, Level 1
Coffs Harbour
New South Wales
Australia
About Retorny Pty.
Retorny Pty. Limited provides business services. The company is
located at Coffs Harbour, in New South Wales, Australia.
SHOALHAVEN FRAMES: Final Meeting Slated for April 30
----------------------------------------------------
Shoalhaven Frames & Trusses Pty. Limited will hold a final
meeting for its members and creditors on April 30, 2008, at
10:00 a.m. During the meeting, the company's liquidator, Gavin
Thomas at Gavin Thomas & Partners, will provide the attendees
with property disposal and winding-up reports.
The liquidator can be reached at:
Gavin Thomas & Partners
31 Market Street, Level 9
Sydney, New South Wales
Australia
About Shoalhaven Frames
Shoalhaven Frames & Trusses Pty. Limited is a distributor of
structural wood members. The company is located at Nowra
South, in New South Wales, Australia.
WILLIAM M. MERCER: Members' Final Meeting Set for April 29
----------------------------------------------------------
Richard G. Mansell, William M. Mercer Retirement Plan Pty.
Ltd.'s appointed estate liquidator, will meet with the company's
members on April 29, 2008, at 10:30 a.m. to provide them with
property disposal and winding-up reports.
The liquidator can be reached at:
Richard G. Mansell
R.G. Mansell & Associates
Level 3, 118 Queen St.
Melbourne
Australia
About William M. Mercer
Located at Melbourne, in Victoria, Australia, William M. Mercer
Retirement Plan Pty. Ltd. is an investor relation company.
==================================================
C H I N A & H O N G K O N G & T A I W A N
==================================================
AGRICULTURAL BANK: Inks Comprehensive Pact with Benxi Iron
----------------------------------------------------------
Agricultural Bank of China and Benxi Iron and Steel Group have
signed a comprehensive cooperation agreement, Steelguru.com
reports. The agreement provides that the Agricultural Bank will
provide CNY10 billion intention credits to Benxi Steel, and the
two sides will carry out full cooperation in traditional credit
business and financing advisers, investment in bank and other
fields.
Mr. Yang Kun, vice-president of Agricultural Bank, told
Steelguru.com his bank is a large-scale state-owned commercial
bank, it has been actively supporting the development of Chinese
iron and steel industry, providing financial services for iron
and steel enterprises’ adjustment of industrial structure,
energy saving and emission reduction.
According to the report, in recent years, Agricultural Bank
established strategic cooperative partnerships with Ansteel,
Wisco, Shougang etc large number of leading steel enterprises in
China, Steelguru.com relates. At present, the total amount bank
loans of Agricultural Bank in iron and steel industry has
reached about CNY100 billion.
About Agricultural Bank of China
Agricultural Bank of China -- http://www.abchina.com/-- is the
mainland's fourth largest bank. It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.
* * *
Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of 2006.
According to XFN-Asia, at the end of September 2007,
Agricultural Bank had outstanding loans of CNY3.44 trillion, of
which 22.11% were bad loans.
The Troubled Company Reporter-Asia Pacific reported on June 27,
2006, that the National Audit Office found accounting
irregularities involving CNY51.6 billion, CNY14.27 billion of
which come from deposit business, CNY27.62 billion from loan
grants, and CNY9.72 billion from fraudulent bill issuance.
Fitch Ratings gave the Bank an Individual rating 'E'.
ALERIS INTERNATIONAL: S&P Puts 'B+' Rating Under Negative Watch
---------------------------------------------------------------
On April 17, 2008, Standard & Poor's Ratings Services placed its
ratings for Aleris International Inc., including the 'B+'
corporate credit rating, on CreditWatch with negative
implications.
"The CreditWatch listing reflects our assessment that the weak
end-market demand in the company's North American rolled and
extruded products segment is likely to continue over the next
several quarters," said Standard & Poor's credit analyst Maurice
Austin, "primarily because of weaker demand for building and
construction, distribution, and transportation products. This,
combined with increased debt balances due to the company's
aggressive growth strategy over the past few years, has resulted
in credit measures that we would consider to be weak for the
rating."
In resolving the CreditWatch listing, S&P will review the
company's near-term operating and financial strategy in light of
the difficult operating conditions and evaluate its cash flow
generation capability.
About Aleris International
Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE:ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys. The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal.
The company's international segment provides aluminum metal to
customers through both tolling arrangements and product sales,
and the types of scrap that it recycles are similar to those
processed by Aleris’ U.S. recycling facilities. In 2004 its
five plants have a rated annual capacity of 1.08 billion pounds.
The operations include two aluminum recycling and foundry alloy
plants in Germany as well as aluminum recycling facilities in
Brazil, Mexico and Wales. The segment’s growth is largely a
result of its development and use of efficient scrap preparation
and recycling technologies that allow high recovery of metal and
delivery of a top-quality product. In Asia, the company has
subsidiaries in Hong Kong and China.
CHINA CONSTRUCTION: BofA Mulls Sale of 9% Stake in the Bank
-----------------------------------------------------------
Bank of America is considering a sale of its 9 percent stake in
China Construction Bank and may also seek to exercise options it
holds to buy more shares in the bank at levels that are now well
below market rates, The Financial Times reports, citing unnamed
sources.
According to FT, BofA's plan is intended to support its balance
sheet amid turmoil in the credit market.
Due to rising losses on home-equity loans and credit cards,
plus writedowns of $3.5 billion related to subprime mortgages,
analysts surveyed by Bloomberg News see unchanged or lower
profit for BofA this year.
BofA Chief Executive Officer Kenneth Lewis targets 20 percent
profit increase this year, Bloomberg relates.
About Bank of America
Bank of America (NYSE: BAC) -- http://www.bankofamerica.com/--
is a U.S.-based financial institution serving more than
59 million consumer and small business relationships. The
company serves clients in 175 countries and has relationships
with 99 percent of the U.S. Fortune 500 companies and 83 percent
of the Global Fortune 500.
About China Construction
The China Construction Bank -- http://www.ccb.cn/-- is one of
the "big four" banks in the People's Republic of China. It was
founded on October 1, 1954, under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.
* * *
The Troubled Company Reporter-Asia Pacific reported on Nov. 20,
2006, that Fitch Ratings affirmed the bank's 'D' individual
rating.
As of March 5, 2008, China Construction Bank carries Moody's
"D-" bank financial strength rating. Moody's Bank Financial
Strength Ratings (BFSRs) represent Moody's opinion of a bank's
intrinsic safety and soundness and, as such, exclude certain
external credit risks and credit support elements that are
addressed by Moody's Bank Deposit Ratings.
CHINA SOUTHERN: Earns RMB796 Million in First Quarter 2008
----------------------------------------------------------
China Southern Airlines Company Limited said net profit for the
first quarter ended March 31, 2008, amounted to RMB796 million
or earnings of RMB0.18 per share, RTT News reports. Net cash
flow from operating activities declined 32.78% to
RMB1,134 million or RMB0.26 per share.
According to the report, the company's total assets increased
1.74% to RMB83,885 million from RMB82,453 million in the prior
year period. Return on net assets increased 8.02 percentage
point to 6.14%. Return on net assets, after deducting non-
operating profits rose 7.85 percentage point amounted to 5.49%.
China Southern said based on the share capital of 4,374,178,000
shares as at Dec. 31, 2007, the company proposes to issue an
additional 2,187,089,000 shares to all of its shareholders by
the conversion of capital reserve to share capital, on the basis
of 5 new shares for every 10 existing shares held, and the share
capital of the company will be 6,561,267,000 shares after the
conversion, RTT News relates. The company said it proposes to
issue short-term financing bills of RMB4 billion in two
tranches, which will be primarily utilized to fund the business
activities of the company.
China Southern also disclosed that it approved the purchase of
20 Boeing 737 series aircraft by Xiamen Airlines Company
Limited, a subsidiary of the company, from the Boeing company,
RTT News says. The release said that Boeing has agreed to
deliver all the 20 Boeing 737 series aircraft between April 2014
and October 2015. China Southern told RTT News that the
internal resources of Xiamen Airlines and loan facilities from
commercial banks will fund the consideration for the
transaction.
About China Southern Airlines
Headquartered in Guangzhou, China, China Southern Airlines Co.
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
* * *
As reported on March 3, 2008, Fitch Ratings affirmed China
Southern Airlines Co. Ltd.'s Long-term Foreign Currency and
Local Currency Issuer Default Ratings at 'B+'. Fitch said the
outlook on the ratings remains stable.
OASIS AIRLINES: Founder Apologizes for Business Collapse
--------------------------------------------------------
The founder of Oasis Hong Kong Airlines has apologized to
passengers, staff and partners for the inconvenience caused by
the business' collapse earlier this month, Monsters and Critics
reports. The Reverend Raymond Lee Cho-min said he was very
sorry and that he had not given up hope that the airline could
be saved.
When he founded the airline in October 2006, Mr. Lee, the former
chairman, said that his dream had been to make it possible for
Hong Kong's seven million people to fly the world, Monsters and
Critics says. Oasis ceased operating after going into voluntary
liquidation on April 9, with 700 employees laid off and more
than 30,000 passengers left holding tickets valued at
HK$300 million (US$38.5 million).
According to the report, Oasis chief executive Steve Miller said
he was initially "very confident" someone would come forward to
take over the airline and save the jobs of its staff, Monsters
and Critics relates. However, the airline's huge losses and
debts to creditors along with the uncertain industry outlook due
to high fuel prices appeared to have put off any potential
saviours.
Mr. Lee insisted that the model of the no-frills airline was not
the cause of its collapse but that its failure was down to
insufficient funding, Mosters and Critics reports, citing the
South China Morning Post.
"It needs at least eight planes to achieve the full potential of
this operation model. Oasis had only four,' Mr. Lee told
Monsters and Critics. "We are very sorry for our passengers and
commercial partners, but we hope to turn grief into action and
seek to continue Oasis' mission in the near future."
About Oasis Airlines
Oasis Hong Kong Airlines commenced service in October 2006. The
airline flew daily non-stop between Hong Kong and London and 6
times weekly between Hong Kong and Vancouver. It stopped flying
on April 9, 2008.
The Troubled Company Reporter-Asia Pacific reported on April 10,
2008, that the company applied for a voluntary liquidator.
Reports said that Oasis Airlines had accumulated losses of as
much as HK$1 billion (US$128 million) and was losing more than
HK$1 million a flight. The TCR-AP, citing Bloomberg, reported
that the airline was set up by Chairman Raymond Lee, a minister
and property investor. Mr. Lee and his wife, executive director
Priscilla Lee Hwang, together hold a stake of between 50% and
60%.
PETROLEOS DE VENEZUELA: Invests VEF1 Mil. in Six Social Projects
----------------------------------------------------------------
Petroleos de Venezuela, S.A., through its affiliated company
PDVSA Gas, has invested over VEF1,000,000 in six social projects
that will benefit 3,500 residents of La Vaca sector (located in
the Simon Bolivar municipality, in Maracaibo Lake’s Eastern
Shore), as well as residents of the El Carmelo and Puerto Paez
municipalities (located in the La Cañada de Urdaneta
municipality). The latter two are the locations of the Ule and
Bajo Grande gas processing plants, respectively, in Zulia state.
Portions of these social projects have been completed thanks to
the work done by professionals from the Engineering and
Construction Management Division of the Gas Occidente Processing
Organization. This progress includes paving of the main streets
of La Vaca sector, a project requested by this town’s Community
Council, as well as construction of a sports court named “Alvaro
Polanco” in the same town.
Most of the construction workers are residents of La Vaca sector
and were selected by the town’s Community Council. Such
Community Council gave a presentation to PDVSA Gas and to
Pantersa, the company responsible for the social project to
improve the Ule Plant (the selected town), which explained the
selection process of the specialized personnel working in the
construction projects. Such selection process included
considering aspects like abilities, skills and the workers’
families’ socio-economic situation.
Upholding Social Responsibility
The New PDVSA Gas abides by the guidelines issued by the
Bolivarian Government and continues to uphold social
responsibility and carry out works to increase the welfare of
communities across the nation. An example of this is the
donation of computers and refurbishment of the computer room
“Maria Moreno de Lopez” in the Lagunillas municipality.
Also, a pre-school was built in the La Cañada municipality as
part of the Puerto Paez Basic School. 80% of these works has
already been completed, and responsibility over them will be
handed to the community during the second and third quarter of
this year, complying with the infrastructure and donation time
table established for this period by the Engineering and
Construction Management Division of the Gas Occidente Processing
Organization.
This way, PDVSA Gas is investing its resources to consolidate
patriotic and revolutionary sovereignty throughout the country,
thereby providing social benefit to Venezuelan communities and
enhancing their quality of life.
About Petroleos de Venezuela SA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
PETROLEOS DE VENEZUELA: Gov't Inks Three Oil Supply Contracts
-------------------------------------------------------------
The Venezuelan government, which runs Petroleos de Venezuela SA,
has signed three contracts for monthly supply of 1.48 million
barrels of oil to Bolivia, Nicaragua, and Haiti, Prensa Latina
reports.
Prensa Latin relates that the signing of the contracts is made
under Venezuela's Bolivarian Alternative for the Americas, an
international cooperation organization based on the idea of
social, political, and economic integration between the
countries of Latin America and the Caribbean. The Venezuelan
government initially proposed the initiative as an alternative
to the US' Free Trade Area of the Americas.
According to Bolivian daily Los Tiempos, the contracts
establishes direct monthly supply of 250,000 barrels of oil and
derivatives or their energy equivalents and special terms of
payment like a 2% yearly interest rate.
Prensa Latina notes that Petroleos de Venezuela's joint venture
with Yacimientos Petroliferos Fiscales Bolivianos, Petroandina,
will be responsible for the shipments.
Petroleos de Venezuela also signed agreements with Yacimientos
Petroliferos for the exploration of oil and gas in the north of
La Paz and south east Bolivia, Prensa Latina adds.
About Petroleos de Venezuela SA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
PETROLEOS DE VENEZUELA: To Install Nine Pumps in Nueva Esparta
--------------------------------------------------------------
Petroleos de Venezuela S.A. will install nine diesel and
lubricant pumps in several municipalities in the island state so
as to guarantee fuel supply to artisan fishermen in Nueva
Esparta state.
Rafael Ramirez, People’s Minister of Energy and Petroleum and
president of PDVSA, met with representatives from 64 fishermen
organizations of Nueva Esparta state and informed them of
PDVSA’s initiative. The meeting was held in Playa Valdez,
Maneiro municipality, in Margarita Island.
Minister Ramirez indicated that the first two fuel pumps will be
located in the towns of Boca de Rio and Robledal (Macao
municipality), and will begin operating in the next few days.
These two pumps will benefit 282 fishermen located in this area
of Margarita Island. The remaining infrastructure will be built
in the towns of Manzanillo, La Isleta, La Guardia, Playa Moreno
and Playa Valdez, located in the Antolin del Campo, Garcia, Diaz
and Maneiro municipalities, respectively, as well as in Coche
Island, located in Villalba municipality.
PDVSA’s initiative allows fishermen to obtain fuel for their
boats directly and efficiently, and is part of the policies
implemented by the Bolivarian Government to empower communities.
Furthermore, Minister Ramirez informed that the Venezuelan Food
Producer and Distributor (PDVAL) will expand its services by
offering artisan fishermen the opportunity to purchase, sell,
store and distribute sea food at fair prices to the residents of
Nueva Esparta state.
PDVAL also will provide fishermen with fishing supplies and
tools at reasonable prices, thereby protecting them from price
speculation of such supplies and tools which directly influences
fish prices.
About Petroleos de Venezuela SA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
=========
I N D I A
=========
GENERAL MOTORS: Delta Township Plant Workers Rally, Talks Resume
----------------------------------------------------------------
General Motors Corp. and United Auto Workers union
representatives of a Delta Township plant in Lansing, Michigan,
resumed talks on Friday, April 18, 2008, after workers went on
strike after 10 a.m. on Thursday, after both parties failed to
agree on plant-specific issues, various sources report.
GM also disclosed that a planned rally at a key transmission
plant in Warren, Michigan, was suppressed after GM and the UAW
agreed to continue talks past the strike deadline, Terry
Kosdrosky of Dow Jones Newswires relates. However, if talks
fail, the UAW Local 909 will, then, issue a 12-hour strike
notice.
Mr. Kosdrosky also added that UAW Local 31 of a GM plant in
Fairfax, Kansas, which makes the Chevrolet Malibu and Saturn
Aura sedans, warned the automaker that union members will walk
off the job in five days.
As reported in the Troubled Company Reporter on April 11, 2008,
UAW workers at three GM factories in Michigan had threatened to
rally in five days if discussions on plant-specific issues,
including work rules and seniority, would not be resolved.
GM spokesman Dan Flores said that the automaker was doing its
best to reach a new labor contract as soon as possible, pointing
at a recent settlement between GM and a UAW local at a Parma,
Ohio plant.
The three plants are the Delta Township plant, which
manufactures large crossover utility vehicles -- the Buick
Enclave, GMC Acadia and Saturn Outlook; the Warren plant, which
produces transmissions, and the Flint plant, produces pickup
trucks and medium-duty commercial trucks, though pickup truck
production is idled due to the strike at supplier American Axle
& Manufacturing Holdings Inc.
The strike will greatly affect auto production which is still
reeling on the impact of the 6-week Axle strike. To date, 30 GM
plants was shut down as Axle continues negotiations with the
UAW.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on March 26, 2008,
Standard & Poor's Ratings Services placed the ratings on General
Motors Corp., American Axle & Manufacturing Holdings Inc., Lear
Corp., and Tenneco Inc. on CreditWatch with negative
implications. The CreditWatch placement reflects S&P's
decision to review the ratings in light of the extended American
Axle (BB/Watch Neg/--)
strike.
The work stoppage that began Feb. 25 at American Axle's U.S.
United Auto Workers plants has forced closure of many GM
(B/Watch Neg/B-3) plants, as well as plants of certain GM
suppliers. The strike began after the expiration of the four-
year master labor agreement with American Axle. Although S&P
still expects American Axle and the UAW to reach an agreement
that will reflect more competitive labor costs, the timing is
unknown.
To resolve the CreditWatch listings, S&P's will assess the
strike's impact on the companies' credit profiles, particularly
liquidity, once production resumes. S&P could lower the ratings
any time prior to a resolution of the Axle strike if the
liquidity of the companies becomes compromised, although
downgrades are not likely for another several weeks.
GENERAL MOTORS: Plastech Complains About Tooling Repossession
-------------------------------------------------------------
Plastech Engineered Products Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Eastern District of Michigan
to deny the request of General Motors Corporation to lift the
automatic stay to allow it to repossess tooling from the
Debtors.
General Motors seeks "contingent" relief from the automatic stay
to allow it to repossess the Tooling only in the event that the
Debtors reject a relevant purchase order, the Debtors close a
relevant plant, the Debtors' financing expires, or the Debtors
are unable to supply parts.
Matthew P. Ward, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Wilmington, Delaware, states that General Motors'
request is procedurally improper, as the relief must be sought
only through an adversary proceeding, pursuant to Rule 7001 of
the Federal Rules of Bankruptcy Procedure.
Bankruptcy Rule 7001 provides that, "a proceeding to recover
. . . property" and "a proceeding to determine the validity,
priority, or extent of a lien or other interest in property" are
adversary proceedings."
Mr. Ward contends General Motors' request is improper because it
seeks only prospective and "contingent" relief from the
automatic stay based upon speculative future events. As these
"speculative" events have not occurred, the motion is merely an
advisory opinion rather than an actual case or controversy, and
therefore the Court lacks jurisdiction because there does not
presently exist any actual dispute that is ripe for
adjudication, Mr. Ward relates.
In addition, Mr. Ward says the standards applicable for
modifying the automatic stay under Section 362(d)(1) of the
Bankruptcy Code are not satisfied. He cites that General Motors
has not afforded the Debtors with the breathing spell to which
they are entitled. To the contrary, General Motors filed the
Stay Relief Motion within six weeks of the Petition Date, a
period when the Debtors' initial exclusivity period has not yet
expired, and the Debtors have been engaged in negotiating
restructuring proposals with their major creditor
constituencies, Mr. Ward maintains.
Mr. Ward tells the Court that General Motors has created issues
for vendors, moldbuilders, and other major customers by sending
a negative signal, such as the relief sought by Roush
Manufacturing, Inc., to lift the automatic stay in order to
exercise state law rights with respect to certain Tooling.
Mr. Ward avers that relief from the automatic stay would be
particularly inappropriate because General Motors is merely an
unsecured creditor. He emphasizes ceding to GM's request would
be detrimental to other unsecured creditors, and other creditors
in general, and would put the collateral of the Debtors' secured
lenders in jeopardy, particularly those claims senior in
priority to General Motors, whose recovery depends on the
Debtors' continuing operations. Mr. Ward maintains that lifting
the stay would affect the Debtors' production of GM's parts and
would, in turn, cause immediate shutdowns at GM's plants. To
the Debtors' knowledge, Mr. Ward says there is no orderly
transition plan in place, and any transition plan would take
weeks, if not months, to implement procedures and protocols to
identify any Tooling and to safely remove it without causing
disruption to the Debtors' operations and its other customers'
production lines.
The Official Committee of Unsecured Creditors concurs with the
Debtors' contentions. "The relief requested in the Motion is of
a contingent nature and based upon speculation as to future
events. The Motion essentially seeks an advisory opinion on a
controversy that is not ripe for adjudication."
Goldman Sachs Joins Objection
Goldman Sachs Credit Partners L.P., the administrative and
collateral agent for the Debtors' Prepetition First Lien Term
Lenders, joins in the Debtors' objection to GM's request.
According to Richard A. Levy, Esq., at Latham Watkins LLP, in
Chicago, Illinois, Goldman Sachs asks the Court, in the event
the Court grants GM's request, to make clear that nothing in the
Court's order terminates or otherwise impairs any liens, claims
or other interests the Prepetition First Lien Term Agent and the
Prepetition First Lien Lenders may have in the Tooling under
applicable law.
About Plastech Engineered
Based in Dearborn, Michigan, Plastech Engineered Products, Inc.
-- http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded
plastic products primarily for the automotive industry.
Plastech's products include automotive interior trim, underhood
components, bumper and other exterior components, and cockpit
modules. Plastech's major customers are General Motors, Ford
Motor Company, and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is
certified as a Minority Business Enterprise by the state of
Michigan. Plastech maintains more than 35 manufacturing
facilities in the midwestern and southern United States. The
company's products are sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The
Debtors chose Jones Day as their special corporate and
litigation counsel. Lazard Freres & Co. LLC serves as the
Debtors' investment bankers, while Conway, MacKenzie & Dunleavy
provide financial advisory services. The Debtors also employed
Donlin, Recano & Company as their claims and noticing agent.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
As of Dec. 31, 2006, the company's books and records
reflected assets totaling US$729,000,000 and total liabilities
of US$695,000,000. (Plastech Bankruptcy News, Issue No. 17;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/ or 215/945-7000)
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on March 26, 2008,
Standard & Poor's Ratings Services placed the ratings on General
Motors Corp., American Axle & Manufacturing Holdings Inc., Lear
Corp., and Tenneco Inc. on CreditWatch with negative
implications. The CreditWatch placement reflects S&P's
decision to review the ratings in light of the extended American
Axle (BB/Watch Neg/--)
strike.
The work stoppage that began Feb. 25 at American Axle's U.S.
United Auto Workers plants has forced closure of many GM
(B/Watch Neg/B-3) plants, as well as plants of certain GM
suppliers. The strike began after the expiration of the four-
year master labor agreement with American Axle. Although S&P
still expects American Axle and the UAW to reach an agreement
that will reflect more competitive labor costs, the timing is
unknown.
To resolve the CreditWatch listings, S&P's will assess the
strike's impact on the companies' credit profiles, particularly
liquidity, once production resumes. S&P could lower the ratings
any time prior to a resolution of the Axle strike if the
liquidity of the companies becomes compromised, although
downgrades are not likely for another several weeks.
GENERAL MOTOR: Delta Township Factory Workers Walk Off from Jobs
----------------------------------------------------------------
United Auto Workers Local 602 union workers at General Motors
Corp.'s Delta Township plant in Lansing, Michigan, went on
strike after 10 a.m. on April 17, 2008, after both parties
failed to agree on plant-specific issues, David Bailey and Nick
Carey of Reuters report.
As reported in the Troubled Company Reporter on April 11, 2008,
UAW workers at three GM factories in Michigan had threatened to
rally in five days if discussions on plant-specific issues,
including work rules and seniority, would not be resolved.
GM spokesman Dan Flores said that the automaker was doing its
best to reach a new labor contract as soon as possible, pointing
at a recent settlement between GM and a UAW local at a Parma,
Ohio plant.
The three plants are the Delta Township plant, which
manufactures large crossover utility vehicles -- the Buick
Enclave, GMC Acadia and Saturn Outlook; the Warren plant, which
produces transmissions, and the Flint plant, produces pickup
trucks and medium-duty commercial trucks, though pickup truck
production is idled due to the strike at supplier American Axle
& Manufacturing Holdings Inc.
The strike will greatly affect auto production which is still
reeling on the impact of the 6-week Axle strike. To date, 30 GM
plants was shut down as Axle continues negotiations with the
UAW.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on March 26, 2008,
Standard & Poor's Ratings Services placed the ratings on General
Motors Corp., American Axle & Manufacturing Holdings Inc., Lear
Corp., and Tenneco Inc. on CreditWatch with negative
implications. The CreditWatch placement reflects S&P's
decision to review the ratings in light of the extended American
Axle (BB/Watch Neg/--)
strike.
The work stoppage that began Feb. 25 at American Axle's U.S.
United Auto Workers plants has forced closure of many GM
(B/Watch Neg/B-3) plants, as well as plants of certain GM
suppliers. The strike began after the expiration of the four-
year master labor agreement with American Axle. Although S&P
still expects American Axle and the UAW to reach an agreement
that will reflect more competitive labor costs, the timing is
unknown.
To resolve the CreditWatch listings, S&P's will assess the
strike's impact on the companies' credit profiles, particularly
liquidity, once production resumes. S&P could lower the ratings
any time prior to a resolution of the Axle strike if the
liquidity of the companies becomes compromised, although
downgrades are not likely for another several weeks.
ICICI BANK: Hikes Auto Loan Rates Effective April 15
----------------------------------------------------
ICICI Bank Limited has hiked its auto loan interest rates on the
heels of the Reserve Bank of India's raising of cash reserve
ratio.
As previously reported by the Troubled Company Reporter-Asia
Pacific, the bank said it will only decide on its lending rates
after the RBI comes out with monetary policy for fiscal year
2009.
RBI said on April 17 it would raise the cash reserve ratio to
tackle inflation, Bloomberg News reports. The regulator
reportedly will hike the CRR from 7.5% to 8% in two phases by
May 10. The increase, the first in 2008, will drain as much as
INR185 billion (US$4.6 billion) from the financial system, the
news agency cited a statement made by RBI.
ICICI Bank is likely to be the most impacted by the regulator's
move, Bloomberg cited an analyst as saying. The bank's average
cost of funds are higher than most state-run banks as it depends
more on bulk deposits that come with higher interest rates,
Bloomberg notes.
In a report yesterday, The Hindu Business Line said ICICI Bank
has increased interest rates on two- and four-wheelers between
50 and 75 basis points with effect from April 15. Other banks
are expected to follow the lending rate move.
“While there has been pressure on financing for quite some time,
the recent CRR hike would further suck out liquidity from the
market which is certainly not a good signal for the automobile
industry,” Business Line quoted Hyundai Motor India Ltd. Sr. VP
Sales and Marketing as saying.
Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance. It also has
interests in the software development, software services and
business process outsourcing businesses. The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others. It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.
* * *
Fitch Ratings on Feb. 5, 2007, gave ICICI Bank's Subordinated
Debt a BB rating. The bank currently carries Moody's Investors
Service's Ba2 Foreign Long Term Bank Deposits rating, which was
places on Feb. 5, 2003.
TATA MOTORS: Increased Competition Cues Firm to Bring Ace Abroad
----------------------------------------------------------------
Tata Motors Ltd. plans to take its mini Truck, the Ace, to
international market because of pressure from competitors in
India, The Telegraph reports.
The Ace's profit reportedly got affected when rivals Piaggio,
Bajaj Auto and Force Motors rolled out similar models.
Tata Motors eyes bringing the Ace, which is currently available
in Bangladesh and Sri Lanka, to Africa, countries of the
Association of South East Asian Nations, and Russia, among
others, the Indian daily relates.
For the international market, Ace will be launched with new
features, including higher engine capacity and air conditioning,
The Telegrapch cited P. Telang, executive director of Tata
Motors, as saying.
India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the Company. The Company's operating segments consists of
Automotive and Others. In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.
Tata Motors has operations in Russia and the United Kingdom.
* * *
Standard & Poor's Ratings Services, on July 13, 2007, assigned
its 'BB+' issue rating to the proposed US$490 million
zero-coupon convertible bonds of India's Tata Motors Ltd.
(BB+/Stable/--). The bonds represent a direct, unsecured and
unsubordinated obligation of the company. Proceeds from the
bonds will be used for capital expenditure, overseas
investments, acquisitions, and other general corporate purposes.
Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.
TATA STEEL: MMTC's Board Approves Joint Venture With Firm
---------------------------------------------------------
MMTC Ltd's board of directors has approved the joint venture
with Tata Steel Ltd for mining exploration, the Press Trust of
India reports.
MMTC in a release said its board “approved the proposal for the
JV with Tata Steel for exploration and development of mines for
minerals, ferrous and non-ferrous ores, precious metals,
diamonds and coal on public-private partnership route."
As reported by the Troubled Company Reporter-Asia Pacific on
April 11, 2008, MMTC and Tata Steel agreed to form a joint
venture to bid for mining projects abroad. Tata Steel will have
a 74% stake in the new company while MMTC will hold the
remaining 26% stake. Tata Steel's board has already approvedthe
JV with proposal.
According to The Financial Express, the venture will focus on
African countries like Angola and Namibia and central Asian
countries like Kazakhstan and Uzbekistan to bid for gold and
diamond mines, besides acquiring coal and iron ore mines.
Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- manufactures steel, and ferro
alloys and minerals. Tata Steel's products are targeted at the
auto sector and construction industry. With wire manufacturing
facilities in India, Sri Lanka and Thailand, the company plans
to emerge as a major global player in the wire business.
* * *
As reported in the Troubled Company Reporter-Asia Pacific,
Standard & Poor's Ratings Services, on July 10, 2007, lowered
its corporate credit rating on Tata Steel to 'BB' from 'BBB.'
The outlook is positive. The rating is removed from
CreditWatch, where it was placed on Oct. 18, 2006, with negative
implications after its announcement on acquiring Corus
Group PLC (Corus, BB-/Stable/--).
Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1
corporate family rating of Tata Steel Ltd., and changed the
outlook to negative from stable.
=================
I N D O N E S I A
=================
ANEKA TAMBANG: Shareholders Okay Flexible Bid for Herald
--------------------------------------------------------
PT Aneka Tambang Tbk's shareholders gave the company the
privilege to modify, if necessary, its bid to acquire a
controlling stake in Herald Resource Limited, various reports
say.
As reported by the Troubled Company Reporter - Asia Pacific on
April 21, 2008, Antam and Chinese zinc producer Shenzhen
Zhongjin Lingnan Nonfemet Co. joined together to submit an offer
to acquire Herald Resources for AU$504.8 million. Antam also
asked its shareholders to give the company the choice to adjust
its offer price for Herald, the TCR-AP said.
Dedi Aditya Sumanagar, Antam president director, told The
Jakarta Post that the shareholders, after an extraordinary
meeting, have agreed to give extensive flexibility to Antam's
board of directors in setting the offer price as long as it is
regarded proper.
Antam, the TCR-AP related, is battling a AU$2.25-a-share offer
from PT Bumi Resources to gain control of Herald's Dairi lead
and zinc project in Indonesia.
Reuters relates Herald Resources has recommended its
shareholders accept Antam and Zhongjin's offer but would still
subject it to a number of conditions, including a minimum
50.1% acceptance and approval from the Foreign Investment Review
Board of Australia.
Reportedly, Antam has already bought a 10.7% stake in Herald and
also holds a 20% interest in Herald's 80% in the Dairi project.
Mr. Sumanagara said that the company might increase the offer
price as the bid price was lower than what they perceive as
Herald's fair value, Reuters notes. "We will offer a reasonable
and best price for our shareholders. The price that we have
offered so far is AU$2.5, but we will be flexible. Our
independent accountant put a fair price of AU$3.51," Mr.
Sumanagara was quoted by Reuters as saying.
However, there is still some uncertainty about the acquisition
as Bumi plans to hold an extraordinary shareholders meeting on
April 30 to seek approval to lift its offer price for Herald's
shares, Reuters says.
About Aneka Tambang
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 17, 2008, Moody's Investors Service upgraded PT Aneka
Tambang (Persero) Tbk's corporate family rating to Ba3 from B1.
The action concluded the review for possible upgrade which
commenced on October 22, 2007.
On Dec. 4, 2006, that Standard & Poor's Ratings Services raised
its long-term corporate credit rating on Indonesian state-owned
miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is
stable. At the same time, Standard & Poor's also raised to
'B+', from 'B', the rating on the senior unsecured notes issued
by Antam Finance Ltd. and guaranteed by Antam.
BANK CENTRAL: Optimistic on Meeting IDR14-MIl. Loan Target
----------------------------------------------------------
PT Bank Central Asia Tbk BBCA remained positive that it could
reach its full-year target of increasing its outstanding loans
by IDR14 trillion despite a slow first quarter, Reuters reports.
According to the report, Jahja Setiaatmadja, bank vice president
director, said its outstanding loans by the end of the first
quarter were up by only about IDR2 trillion to IDR84 trillion.
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
March 5, 2008, that Fitch Ratings upgraded PT Bank Central
Asia Tbk's long-term issuer default rating to BB with a stable
outlook. At the same time, Fitch affirmed the company's B
short-term issuer default rating, and AA+(IDN) national long
term rating with stable outlook.
BANK MANDIRI: Sees 2008 Loan Growth to Exceed 22%
-------------------------------------------------
PT Bank Mandiri expects 2008 loan growth to exceed its 22%
target, helped by a commodity boom and infrastructure projects,
Reuters reports, citing Bank President Director Agus
Martowardojo.
According to Reuters, the new forecast beats a central bank
forecast of around 20% loan growth.
"Although global market conditions are not conducive they have
some infrastructure projects that have not been fully realized
and a booming commodity sector," Nury Sybli of Reuters cited Mr.
Martowardojo as saying..
As reported by the Troubled Company Reporter - Asia Pacific on
March 14, 2008, Bank Mandiri Tbk said it will stick to its loan
growth target of 22% for this year, even though the government
has lowered its economic growth forecast for 2008.
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
March 5, 2008, that Fitch Ratings has upgraded the local
currency and long-term issuer default ratings of PT Bank Mandiri
(Persero) Tbk to BB, with a stable outlook. At the same time,
Fitch affirmed the B short-term issuer default rating and
AA+(IDN) national long term rating. Also, Fitch raised the
support rating floor to BB-.
On Aug. 2, 2007, Moody's Investors Service has placed the
foreign currency long-term debt and foreign currency long-term
deposit ratings of PT Bank Mandiri on review for possible
upgrade.
The detailed ratings are:
* Ba3/Ba3 foreign currency senior/subordinated debt and B2
foreign currency long-term deposit ratings were placed on
review for possible upgrade; and
* Not Prime foreign currency short-term deposit rating, Baa2
global local currency deposit rating and D- BFSR were
unaffected -- these ratings carry a stable outlook.
The bank also carries Fitch Ratings: Long- term foreign and
local currency Issuer Default ratings at 'BB-', Short-term
rating at 'B', National Long-term rating at AA(idn)', Individual
at 'D', and Support at '4'. Fitch said the Outlook for the
ratings was revised to positive from stable.
GARUDA INDONESIA: To Fly Jakarta-Pontianak Route Thrice Daily
-------------------------------------------------------------
PT Garuda Indonesia will now service the Jakarta-Pontianak route
from once a day to thrice daily due to rising demand for air
services, Antara News reports.
Garuda District Manager Wempie Ohoiwutun told the news agency
that load factor of the route has reached an average of 85%
since we resumed it late October 2007."
Mr. Ohoiwutun, the report notes, said Garuda had filed an
application to the operator of Supadio Airport in Pontianak for
an increase in the number of its flights from Jakarta to
Pontianak or vice versa.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
* * *
The Troubled Company Reporter-Asia Pacific reported on Sept. 6,
2007, that Garuda, saddled with a debt of around US$750 million
including some US$475 million owed to the European Credit
Agency, is in negotiations with creditors to restructure some of
its debt. The carrier's debt needs to be restructured,
otherwise Garuda will not be able to fly anymore as its debt is
too big, the report added.
The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005. It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates. Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
was due on Dec. 31, 2005.
The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before.
Garuda is currently undergoing debt restructuring. The Troubled
Company Reporter-Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.
PERUSAHAAN LISTRIK: Losses to Continue Due to High Oil Prices
-------------------------------------------------------------
PT Perusahan Listrik Negara will continue to incur losses this
year as high global oil prices continue to be high, Reuters
reports.
The report says oil prices hit a new historic high of US$117 on
April 1, well above the US$95 mark assumed in the state budget.
Ika Krismantari of The Post relates that the company uses oil-
based fuels to generate power from most of its power plants,
meaning it faces higher-than-assumed production costs while
sales prices remain steady. This leaves the company a gaping
margin to cover, making it impossible for the company to record
a profit this year without government support, President
Director Fahmi Mochtar told the news agency.
According to Reuters, the average selling price for electricity
this year has been pegged at IDR614 per kilowatt hour(KwH),
while production costs are expected to averageIDR1,092 per KwH,
which IDR658.4 will go toward fuel.
"The revenue we gain from selling electricity will never be
enough to cover those production costs," Mr. Fahmi was quoted as
saying.
In the 2008 state budget, the report notes, the government
earmarked IDR60.28 trillion for electricity subsidies. Mr.
Fahmi told Reuters that this is around IDR5 trillion less than
what is needed to cover the widening deficit inflicted by ever-
rising oil prices.
The company has been recording losses for the past three years.
It recorded IDR1.5 trillion in losses in 2007, after having
previously managed to slash its losses to IDR1.08 trillion in
2006 from IDR4.92 trillion in 2005.
Mr. Fahmi said the company would try to cut costs by using more
coal and gas, instead of the more expensive oil-based fuels, to
fire its power plants.
Currently, Reuters notes, 34% of PLN power plants are fired by
oil-based fuels.
"It is most likely conditions will not change until 2009,
because after that it is expected the newly elected government
will raise the electricity prices to fix this situation," Mr.
Fahmi said, the report adds.
About Perusahaan Listrik
Indonesian state utility firm PT Perusahaan Listrik Negara --
http://www.pln.co.id/-- transmits and distributes electricity
to around 30 million customers, roughly 60% of Indonesia's
population. The Indonesian Government decided to end PLN's
power supply monopoly to attract independents to build more
capacity for sale directly to consumers, as many areas of the
country are experiencing power shortages.
* * *
The Troubled Company Reporter-Asia Pacific reported on June 18,
2007, that Standard & Poor's Ratings Services affirmed its
'BB-' foreign currency rating and 'BB' local currency rating on
Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook
is stable. At the same time, Standard & Poor's assigned its
'BB-' issue rating to the proposed senior unsecured notes to be
issued by PLN's wholly owned subsidiary, Majapahit Holding B.V.
=========
J A P A N
=========
AMPEX CORP: Earns US$904,000 in Year Ended Dec. 31, 2007
--------------------------------------------------------
Ampex Corp., on April 15, 2008, filed with the U.S. Securities
and Exchange Commission its Annual Report for the year ended
Dec. 31, 2007.
For the year ended Dec. 31, 2007, the company reported net
income of US$904,000 on revenues of US$41,476,000. For the year
ended Dec. 31, 2006, the company reported a net loss of
US$3,948,000 on total revenues of US$35,921,000.
At Dec. 31, 2007, the company's balance sheet showed total
assets of US$26,467,000 and total liabilities of US$133,602,000
resulting in a stockholders' deficit of US$107,135,000. This
was an increase from a stockholders' deficit of US$104,403,000.
The balance sheet further showed a working capital deficit with
total current assets of US$25,578,000 and total current debts of
US$65,099,000.
Bankruptcy Filing
On March 30, the company and its U.S. subsidiaries filed
voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code.
Prior to filing, the company says it negotiated with and
obtained the support of the majority of its secured creditors
and its largest unsecured creditor for the terms of a pre-
negotiated plan of reorganization, as evidenced by the plan
support agreement filed contemporaneously with the company's
voluntary petitions for relief under Chapter 11.
Concurrently with the filing of the petition, the company
filed a motion for approval of the disclosure statement with
respect to the Plan and related solicitation procedures. The
company believes that it will emerge from Chapter 11 no later
than fall 2008. During the Chapter 11 proceedings, the company
will continue to operate its business without interruption as a
debtor-in-possession. All of the company's employees will be
retained, offices and manufacturing facilities will remain open
and all customer support and warranty programs will continue as
planned.
Upon emergence from Chapter 11, Hillside Capital Incorporated ,
the company's largest secured and unsecured creditor, will
provide new financing to the Company that will be used for
working capital purposes, to repay certain long term
obligations, including certain senior secured notes, and to fund
future pension obligations. Ampex began to report in July 2007
that it might be forced to take this action in order to
facilitate an orderly financial restructuring.
Delisting Notice
The company said that on April 11, 2008 it received notice from
The Nasdaq Stock Market that, following the company’s filing of
a voluntary petition for relief under Chapter 11 of the U.S.
Bankruptcy Code on March 30, 2008, the staff of Nasdaq’s Listing
Qualifications Department has determined, using its
discretionary authority under Marketplace Rule 4300 and IM-4300,
that the Company’s Class A Common Stock will be delisted from
Nasdaq unless the company requests an appeal of the
determination.
Nasdaq’s determination was based upon the Company’s Chapter 11
filing, associated public interest concerns raised by it,
concerns regarding the residual equity interests of the
Company’s existing Common Stockholders and its ability to
sustain compliance with all of Nasdaq’s continued listing
requirements.
Unless Ampex appeals Nasdaq’s determination, trading in its
Common Stock will be suspended at the opening of business on
April 21, 2008, and a Form 25-NSE will be filed with the
Commission, which will remove the Company’s Common Stock from
listing and registration on Nasdaq. Ampex intends to appeal
Nasdaq’s determination by requesting an oral hearing before a
Nasdaq Listing Qualifications Panel. The Company’s hearing
request will stay the suspension of its Common Stock and the
filing of the Form 25-NSE pending the Panel’s decision, although
there can be no assurance that the Panel will ultimately grant
the Company’s appeal.
A full-text copy of the company's annual report for the year
ended Dec. 31, 2007 may be viewed for free at:
http://ResearchArchives.com/t/s?2adf
About Ampex
Headquartered in Redwood City, California, Ampex Corp. --
http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual
information technology. The company has two business segments:
Recorders segment and Licensing segment. The Recorders segment
primarily includes the sale and service of data acquisition and
instrumentation recorders (which record data and images rather
than computer information), and to a lesser extent mass data
storage products. The Licensing segment involves the licensing
of intellectual property to manufacturers of consumer digital
video products through their corporate licensing division.
On March 30, 2008, Ampex Corp. and six affiliates filed for
protection under Chapter 11 of the Bankruptcy Code with the U.S.
Bankruptcy Court for the Southern District of New York (Case
Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq.,
and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP,
represents the Debtors in their restructuring efforts. The
Debtors have also retained Conway Mackenzie & Dunleavy as their
financial advisors. In its schedules of assets and liabilities
filed with the Court, Ampex Corp. disclosed total assets of
US$9,770,089 and total debts of US$$82,488,054.
The Debtors have nine foreign affiliates that are incorporated
in seven countries -- one each in the United Kingdom, Japan,
Belgium, Colombia and Brazil and two each in Germany and Mexico.
With the exception of the affiliates located in the U.K. and
Japan, none of the other foreign affiliates conduct meaningful
business activity. As of March 30, 2008, none of the foreign
affiliates have commenced insolvency proceedings.
AMPEX CORP: Discloses Terms of Chapter 11 Reorganization Plan
-------------------------------------------------------------
Ampex Corporation and its debtor-affiliates delivered a
Disclosure Statement dated March 31, 2008, explaining their
Joint Chapter 11 Plan of Reorganization with the United States
Bankruptcy Court for the Southern District of New York.
Plan Overview
The Plan intends to provide for the restructuring of the
Debtors' liabilities designed to maximize recovery to all
stakeholders and to enhance the financial viability of the
reorganized debtors.
Generally, the Plan provides for a balance sheet restructuring
which swaps the Debtors' current debt including, but not limited
to, debt evidenced by the senior secured notes and the Hillside
Notes for cash, new notes and equity, as applicable.
Other secured and unsecured creditors will receive cash or
equity as applicable. All of the Debtors' existing common stock
will have no value and will be canceled.
Upon emergence, at least 80% of the reorganized Debtors' new
common stock will be owned by Hillside Capital Incorporated and
its affiliates. The new common stock will not be registered and
will not trade on any public exchange.
Holders of existing common stock that do not object to
confirmation of the Plan will be eligible to receive
distribution rights entitling such holder to receive certain
future payments, if the net proceeds of future monetization of
the Debtors' patents that are not currently revenue bearing
produce proceeds sufficient to meet certain obligations and
funding needs of reorganized Ampex.
The resulting debt structure of the Reorganized Debtors will
substantially deleverage the company and provide additional
needed liquidity.
Indebtedness
As of March 30, 2008, the Debtors had approximately US$59.6
million of outstanding notes issued by the Debtors.
Approximately US$6.9 million of such amount represents amounts
due under an indenture dated as of Feb. 28, 2002. Pursuant to
the indenture, the Debtors issued those certain 12% senior
secured notes due 2008, which are secured by liens on the
Debtors' future royalty receipts.
Approximately US$52.7 million of the Debtors' outstanding
indebtedness is represented by the Hillside notes that have been
issued in connection with Hillside's satisfaction of required
contribution obligations under the pension plans.
As of Dec. 31, 2007, the media pension plan and the Ampex
pension plan were underfunded by US$13.5 million and US$44.2
million, respectively.
Treatment of Claims
Under the Plan, these creditors are expected to get 100%
recovery include:
-- administrative expense claims;
-- fee claims;
-- priority tax claims;
-- priority non-tax claims;
-- other secured claims; and
-- trade unsecured claims.
Senior Secured Note Claims and Other Unsecured Claims will be
entitled to receive their pro rata share of their respective
claims.
Each holder of Hillside Secured Claims, totaling US$11 million,
will expect to receive in full of its secured claim.
All equity interests will be canceled. Interests in these
classes are impaired and deemed to have rejected the plan
include:
-- existing common stock;
-- existing securities laws claims; and
-- other existing interest.
A full-text copy of Disclosure Statement is available for free
at http://ResearchArchives.com/t/s?2a69
A full-text copy of Joint Chapter 11 Plan of Reorganization is
available for free at http://ResearchArchives.com/t/s?2a6a
About Ampex
Headquartered in Redwood City, California, Ampex Corp. --
http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual
information technology. The company has two business segments:
Recorders segment and Licensing segment. The Recorders segment
primarily includes the sale and service of data acquisition and
instrumentation recorders (which record data and images rather
than computer information), and to a lesser extent mass data
storage products. The Licensing segment involves the licensing
of intellectual property to manufacturers of consumer digital
video products through their corporate licensing division.
On March 30, 2008, Ampex Corp. and six affiliates filed for
protection under Chapter 11 of the Bankruptcy Code with the U.S.
Bankruptcy Court for the Southern District of New York (Case
Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq.,
and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP,
represents the Debtors in their restructuring efforts. The
Debtors have also retained Conway Mackenzie & Dunleavy as their
financial advisors. In its schedules of assets and liabilities
filed with the Court, Ampex Corp. disclosed total assets of
US$9,770,089 and total debts of US$$82,488,054.
The Debtors have nine foreign affiliates that are incorporated
in seven countries -- one each in the United Kingdom, Japan,
Belgium, Colombia and Brazil and two each in Germany and Mexico.
With the exception of the affiliates located in the U.K. and
Japan, none of the other foreign affiliates conduct meaningful
business activity. As of March 30, 2008, none of the foreign
affiliates have commenced insolvency proceedings.
CITIBANK JAPAN: Moody's Affirms “B” Financial Strength Rating
-------------------------------------------------------------
Moody's Investors Service has affirmed the B bank financial
strength rating and Aa3 long-term deposit rating of Citibank
Japan Ltd. but changed the ratings outlooks to negative from
stable. The outlooks for the A1 long-term ratings of Nikko
Cordial Corporation, Nikko Cordial Securities Inc., and Nikko
Citigroup Limited were also revised to negative from stable.
The Prime-1 short-term ratings of Citibank Japan, NCS, and NCL
were unaffected.
These outlook changes have been prompted by Moody's outlook
change for Citigroup on April 18, 2008, following its
announcement that it had incurred a net loss of US$5.1 billion
in the first quarter of 2008.
Citibank Japan's BFSR reflects its strong link to the BFSR of
Citibank N.A., given the integration of its businesses and
operational platform into Citibank N.A. Moody's continues to
incorporate a very high probability of parent support toward
Citibank Japan from Citibank N.A.
The ratings of NCC, NCS, and NCL reflect Moody's assessment of a
very high probability of support from Citigroup in case of need,
given their strategic importance to Citigroup as consolidated
subsidiaries and key vehicles of securities business in Japan.
The following ratings were affirmed, and the outlooks changed to
negative from stable:
Citibank Japan Ltd. -- Bank Financial Strength Rating of B,
long-term deposit rating of Aa3
Nikko Cordial Corporation -- issuer rating of A1
Nikko Cordial Securities Inc. -- issuer rating of A1
Nikko Citigroup Limited -- issuer rating of A1, euro medium-
term note program ratings of A1/A2, senior unsecured debt
rating of A1, subordinated debt rating of A2
Nikko Citigroup Services Limited -- senior unsecured medium-
term note program rating of A1
Citibank Japan Ltd., headquartered in Tokyo, is a wholly owned
subsidiary bank of Citibank N.A. in Japan.
Nikko Cordial Corporation, headquartered in Tokyo, is one of
Japan's major securities companies, and a majority-owned
subsidiary of Citigroup Inc. Nikko Cordial Securities Inc. is a
100% owned subsidiary of Nikko Cordial Corporation. Nikko
Citigroup Limited is a joint venture between Nikko Cordial
Corporation (which owns 51%) and Citigroup (which owns 49%).
DELPHI: Plastech Wants to Return Tooling to Delphi Automotive
-------------------------------------------------------------
Plastech Engineered Products Inc. and its debtor-affiliates ask
permission from the U.S. Bankruptcy Court for the Eastern
District of Michigan to return certain tooling equipment to
Delphi Automotive Systems LLC.
Specifically, the Debtors seek authority to:
(a) surrender certain tooling owned by Delphi Automotive
Systems, LLC, that is in the Debtors' possession;
(b) sell to Delphi certain de minimis finished goods
inventory made with the Delphi tooling forUS$4,671, free
and clear of liens; and
(c) lift the automatic stay to effectuate the release of
tooling and the sale of the de minimis inventory to
Delphi.
According to Deborah L. Fish, Esq., at Allard & Fish, P.C., in
Detroit, Michigan, the Debtors currently are in possession of
certain tooling which is fully paid for and is owned by Delphi
at a plant in Croswell, Michigan that was used to make service
parts for Delphi's Powertrain Division that are no longer in
production.
Ms. Fish informs that the Inventory represents idle assets that
are of little or no use or value to the Debtors' estates or
restructuring efforts, as the Inventory consists of service
parts that are no longer in production. The Debtors have
determined in their sound business judgment that the sale of the
Inventory to Delphi is the most efficient way to convert idle
assets of de minimis value into cash, Ms. Fish relates.
Pursuant to Section 363(b)(1) of the Bankruptcy Code, "[t]he
trustee, after notice and a hearing, may use, sell or lease,
other than in the ordinary course of business, property of the
estate." However, Ms. Fish states that the Debtors acknowledge
the Court's discretion in granting their request, giving due
consideration to the Debtors' exercise of sound business
judgment.
Furthermore, Ms. Fish notes Section 363(f) permits a debtor to
sell property free and clear of another party's interest in the
property if:
(a) applicable non-bankruptcy law permits such a free and
clear sale;
(b) the holder of the interest consents;
(c) the interest in a lien and the sales price of the
property exceeds the value of all Liens on the property;
(d) the interest is in bona fide dispute; or
(e) the holder of the interest could be compelled in a legal
or equitable proceeding to accept a monetary satisfaction
of its interest.
The Debtors believe that the sale of the inventory to Delphi is
commercially reasonable in light of the assets being sold and as
a result, the value of the proceeds from the sale fairly
reflects the value of the Inventory sold, Ms. Fish maintains.
The Debtors propose that any party with a lien on the Inventory
be given a corresponding security interest in the proceeds of
the sale. In light of these, the requirements of Section 363(f)
of the Bankruptcy Code would be satisfied for any proposed sales
free and clear of liens, Ms. Fish says.
Moreover, because the Debtors have no further need for the
Delphi Tooling, the Debtors believe that the automatic stay
should be lifted pursuant to Section 362(d) of the Bankruptcy
Code to allow Delphi to take possession of the Delphi Tooling
and to deem the applicable purchase orders between Delphi and
the Debtors terminated upon the return of the Delphi Tooling and
payment for the Inventory, Ms. Fish asserts.
About Plastech Engineered
Based in Dearborn, Michigan, Plastech Engineered Products, Inc.
-- http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded
plastic products primarily for the automotive industry.
Plastech's products include automotive interior trim, underhood
components, bumper and other exterior components, and cockpit
modules. Plastech's major customers are General Motors, Ford
Motor Company, and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is
certified as a Minority Business Enterprise by the state of
Michigan. Plastech maintains more than 35 manufacturing
facilities in the midwestern and southern United States. The
company's products are sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The
Debtors chose Jones Day as their special corporate and
litigation counsel. Lazard Freres & Co. LLC serves as the
Debtors' investment bankers, while Conway, MacKenzie & Dunleavy
provide financial advisory services. The Debtors also employed
Donlin, Recano & Company as their claims and noticing agent.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
As of Dec. 31, 2006, the company's books and records
reflected assets totaling US$729,000,000 and total liabilities
of US$695,000,000. (Plastech Bankruptcy News, Issue No. 17;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets andUS$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
* * *
As reported in the Troubled Company Reporter on April 11, 2008,
Moody's Investors Service withdrawn Delphi Corp.'s prospective
debt ratings for its emergence financing. Although Delphi was
successful in arranging commitments for its first lien term
loans of US$1.7 billion, a first lien revolving credit ofUS$1.6
billion and General Motors Corporation and a GM affiliate agreed
to accept up to US$2.825 billion of second lien term debt,
equity participants in the financing structure have filed a
notice of termination on their earlier undertaking to
provideUS$2.55 billion of capital. The absence of equity
funding terminates Delphi's plans to emerge from bankruptcy by
April 4, 2008.
Ratings being withdrawn are those listed in Moody's earlier
releases which were: Corporate Family Rating, (P)B2; Probability
of Default, (P)B2; Outlook, Stable;US$1.5 billion first lien
term loan, (P)Ba2 (LGD-2, 17%);US$2.8 billion second lien term
loan, (P)B2 (LGD-4, 52%); and Speculative Grade Liquidity
rating, SGL-2.
JAPAN AIRLINES: In Discussions With MUFG on JALCard Sale
--------------------------------------------------------
Japan Airlines International Co., Ltd. is to sell a 49% stake in
wholly owned credit card unit JALCard Inc. to Mitsubishi UFJ
Financial Group Inc., informed sources revealed to Jiji Press.
Jiji Press' sources say that JAL has eliminated other possible
candidates for the deal and that the two parties are in talks
over the price of the unit's shares, estimated at around
JPY50 billion.
According to the sources, JAL and MUFG are expected to finalize
a deal as early as May after working out the details of the
business tie-up.
JAL, states Jiji Press, will consider alliances with MUFG mostly
in card businesses, including the launch of credit cards that
serve as cash cards in addition to cards adopting JAL's mileage
point service.
Jiji Press notes that JALCard has about two million card
holders, a relatively small number for a Japanese credit card
business. But its core members are wealthy entrepreneurs and
businesspeople, and the annual average value of transaction
among all members is JPY900,00 far higher than the industry
average.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
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.
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.
=========
K O R E A
=========
HYNIX SEMI: Sees DRAM Market Improvement in Second Half of 2008
---------------------------------------------------------------
Hynix Semiconductor Inc. expects an improvement in the dynamic
random access memory (DRAM) market in the second half of 2008,
Reuters reports.
Hynix chief Excecutive Kim Jong-kap told the news agency that
"There is little likelihood of a further drop in prices,
referring to the DRAM market, "and we are hoping for an
improvement in the market in the second half, thanks to
continued strength in demand for notebooks and the impact of
investment cuts."
Marie-France Han of Reuters relates that makers of DRAM, used
mainly in personal computers, have seen their profitability
savaged by a severe glut and slower PC demand, which has driven
down the price of some key chips by more than 90% since early
2007.
About Hynix Semiconductor
Headquartered in Echon, South Korea, Hynix Semiconductor Inc.
-- http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
The company has operations in Russia, and the United States.
* * *
As reported in the Troubled Company Reporter-Asia Pacific
reported on June 19, 2007, Moody's Investors Service upgraded to
Ba2 from Ba3 Hynix Semiconductor Inc's senior unsecured bond
rating and corporate family rating. At the same time, Moody's
assigned a Ba2 senior unsecured bond rating for Hynix's proposed
US$500 million issuance. Moody's said the outlook for the
ratings is stable.
KRISPY KREME: Posts Fourth Quarter Net Loss of US$31.8 Million
--------------------------------------------------------------
Krispy Kreme Doughnuts Inc. released on Thursday financial
results for the fourth quarter and fiscal year ended Feb. 3,
2008.
The company's fiscal year ends on the Sunday closest to
January 31, which periodically results in a 53-week year. The
fourth quarter and fiscal year ended Feb. 3, 2008, contained 14
weeks and 53 weeks, respectively, compared to the fourth quarter
and fiscal year ended Jan. 28, 2007, which contained 13 weeks
and 52 weeks, respectively.
The net loss for the fourth quarter wasUS$31.8 million, compared
to a net loss of US$24.4 million in the fourth quarter last
year. The fourth quarters of fiscal 2008 and 2007 reflect
impairment charges and lease termination costs of approximately
US$27.6 million and US$6.0 million, respectively, most of which
are non-cash and relate to the Company Stores segment.
In addition, results for the fourth quarter of fiscal 2008
include a charge ofUS$3.0 million for estimated payments under
the company's guarantees of a portion of certain debt and leases
of a franchisee in which it owns an interest. Results for the
fourth quarter last year reflect charges of approximatelyUS$17.3
million related to the settlement of litigation.
Fourth quarter systemwide sales (excluding the 14th week in the
fourth quarter of fiscal 2008) increased 2.3% from the fourth
quarter of last year. The growth in systemwide sales in the
quarter was entirely attributable to growth in sales by
international franchisees; the domestic component of systemwide
sales fell in the fourth quarter compared to the fourth quarter
last year, principally due to store closures. For the year,
systemwide sales (measured on a 52-week basis) decreased 0.9%
compared to fiscal 2007.
During the fourth quarter of fiscal 2008, 32 new Krispy Kreme
stores, comprised of 13 factory stores and 19 satellites, were
opened systemwide, and 6 stores, comprised of 5 factory stores
and 1 satellite, were closed systemwide. This brings the total
number of stores systemwide at the end of fiscal 2008 to 449,
consisting of 295 factory stores and 154 satellites.
Approximately 75% of these stores are operated by franchisees,
and almost half are located outside the United States.
Revenues for the fourth quarter decreased to US$110.9 million
from US$112.2 million in the fourth quarter last year.
Excluding revenues for the 14th week, revenues for the fourth
quarter of fiscal 2008 decreased 8.2% to US$102.9 million. The
decline in revenues reflects an 11.1% decrease in Company Stores
revenues to US$70.4 million and a 5.2% decrease in KK Supply
Chain revenues to US$25.8 million, partially offset by a 17.0%
increase in Franchise revenues t oUS$6.7 million.
Fiscal 2008 Results
For fiscal 2008, revenues decreased toUS$429.3 million from
US$461.2 million in fiscal 2007. Excluding revenues for the
53rd week, revenues for fiscal 2008 decreased 8.6% toUS$421.3
million. The decline in revenues reflects an 8.4% decrease in
Company Stores revenues to US$298.9 million and a 12.3%
decrease in KK Supply Chain revenues US$99.9 million, partially
offset by a 6.8% increase in Franchise revenues to
US$22.5 million.
The net loss for fiscal 2008 was US$67.1 million, compared with
a net loss of US$42.2 million, in fiscal 2007. Impairment
charges and lease termination costs were US$62.1 million and
US$12.5 million in fiscal 2008 and 2007, respectively. Of the
total charges and costs in fiscal 2008 and 2007, most of which
were non-cash, US$56.0 and US$9.4 million, respectively, relate
to the long-lived assets and US$4.6 million and US$1.1 million,
respectively, relate to goodwill, in each case associated
principally with the Company Stores segment.
In addition, fiscal 2008 results reflect an impairment charge of
approximately US$10.4 million related to the company's
manufacturing and distribution facility in Effingham, Illinois,
which the company divested during the year, a charge of
US$3.0 million for estimated payments under the company's
guarantees of a portion of certain debt and leases of a
franchisee in which it owns an interest, and a charge of
US$9.6 million resulting from the refinancing of indebtedness.
Fiscal 2008 results include a non-cash credit of US$14.9 million
and fiscal 2007 results included a non-cash charge of
US$16.0 million related to changes in the value of common stock
and warrants issued in March 2007 in connection with the
settlement of litigation.
In addition to announcing financial results, the company also
announced that it had remediated all of the material weaknesses
in its internal control over financial reporting identified as
of Jan. 28, 2007, and maintained effective internal control over
financial reporting as of Feb. 3, 2008.
As of Feb. 3, 2008, the company's consolidated balance sheet
reflects cash and indebtedness of approximately US$25 million
and US$77 million, respectively. During fiscal 2008, the
company prepaid approximately US$32.8 million of the principal
balance of the US$110 million term loan entered into in February
2007. Subsequent to year end, the company and its lenders
executed amendments to the company's secured credit facilities
which, among other things, relax certain financial covenants
contained therein.
Those covenants previously were scheduled to become more
stringent during fiscal 2009. The amendments also provide that
the interest rate on the loans outstanding under the facilities
will increase from LIBOR plus 3.50% to LIBOR plus 5.50%, with a
minimum LIBOR rate of 3.25%, and fees on letters of credit
outstanding under the facilities will increase from 3.75% to
5.75%.
As of Feb. 3, 2008, the outstanding loan balance was
US$76.1 million and outstanding letters of credit were
US$20.3 million. There were no amounts drawn under the
revolving facility, which was reduced from US$50 million to
US$30 million.
"Although it's clear from our fourth quarter and year-end
results that we have more work to do in order to produce the
financial results we believe are possible, there were some
successes in fiscal 2008," said Jim Morgan, chairman, president
and chief executive officer.
"Our international expansion continues to be a source of
exciting growth, we are seeing encouraging initial results from
company factory stores that have been converted to satellite hot
shops as part of our hub and spoke strategy, and Krispy Kreme's
entire menu now is zero grams trans fat per serving. In
addition, we remediated all material weaknesses in our internal
control over financial reporting."
Morgan added, "Beyond the challenges we still face, we believe
there are a multitude of opportunities, and we are committed to
providing corporate performance that is in keeping with the
iconic brand we represent."
Many factors could adversely affect the company's business. In
particular, the company is vulnerable to further increases in
the cost of raw materials, which could adversely affect the
company's operating results and cash flows. In addition,
several franchisees have been experiencing financial pressures
which, in certain instances, became more exacerbated during
fiscal 2008.
The company has guaranteed certain obligations of franchisees in
which it has an equity interest, and has recorded charges
aggregating US$3.4 million in fiscal 2007 and 2008 for estimated
payments under such guarantees; these guarantees could result in
additional charges in future periods.
Franchisees opened 88 stores and closed 26 stores in fiscal
2008. Franchisees have contractual commitments to open over 170
additional stores after fiscal 2008; however, the company
believes franchisees also will close additional stores in the
future, and the number of such closures may be significant.
Royalty revenues and most of KK Supply Chain revenues are
directly correlated to sales by franchise stores and,
accordingly, franchise store closures have an adverse effect on
the company's revenues, results of operations and cash flows.
Balance Sheet
At Feb. 3, 2008, the company's consolidated balance sheet showed
US$202.35 million in total assets,US$145.73 million in total
liabilities, andUS$56.62 million in total stockholderss' equity.
Full-text copies of the company's consolidated financial
statements for the year ended Feb. 3, 2008, are available for
free at http://researcharchives.com/t/s?2ac7
About Krispy Kreme
Headquartered in Winston-Salem, North Carolina, Krispy Kreme
Doughnuts Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/--
is a retailer and wholesaler of doughnuts. The company's
principal business, which began in 1937, is owning and
franchising Krispy Kreme doughnut stores where over 20 varieties
of doughnuts are made, sold and distributed and where a broad
array of coffees and other beverages are offered.
As of Feb. 3, 2008, there were 449 Krispy Kreme stores operated
systemwide in 37 U.S. states and in the District of Columbia,
Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico,
the Philippines, Qatar, Saudi Arabia, South Korea, the United
Arab Emirates and the United Kingdom, of which 105 were owned by
the company and 344 were owned by franchisees. Of the 449 total
stores, there were 295 factory stores and 154 satellites. Of
the Krispy Kreme factory stores and satellites in operation at
Feb. 3, 2008, 210 and 35, respectively, were located in the
United States.
* * *
Standard & Poor's placed Krispy Kreme Doughnuts Inc.'s long term
foreign and local issuer credit ratings at 'B-' in September
2007. The ratings still hold to date with a negative outlook.
===============
M A L A Y S I A
===============
FOAMEX INT'L: David J. Lyon Joins Board of Directors
----------------------------------------------------
David J. Lyon has been named to the Foamex International Inc.'s
Board of Directors.
"We are pleased to welcome David to the Foamex Board," Jack
Johnson, President and Chief Executive Officer, said. "He has
an impressive background and we believe that his expertise and
perspective will be valuable additions as we continue to work to
strengthen and build our business. We appreciate the continued
support of the D. E. Shaw group and all of our other
stockholders."
David J. Lyon is a vice president of D. E. Shaw & Co., L.P. and
focuses on the firm’s special situations private equity
strategy. Prior to joining the D. E. Shaw group, Mr. Lyon spent
seven years as a managing director of The Cypress Group, a New
York-based private equity firm. He has also held positions at
Goldman, Sachs & Co. and Och-Ziff Capital Management Group. Mr.
Lyon received his M.B.A. from Harvard Business School and his
B.A. from the University of Notre Dame. He also serves on the
Board of Directors of Owens Corning.
About Foamex International
Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets. The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries. Foamex
has Asian locations in Malaysia, Thailand and China.
The company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693).
On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended
Joint Plan of Reorganization. The Plan of Reorganization of
Foamex International Inc. became effective and the company
emerged from chapter 11 bankruptcy protection on Feb. 12, 2007.
* * *
As reported in the Troubled Company Reporter on April 8, 2008,
Foamex International Inc.'s consolidated balance sheet at
Dec. 30, 2007, showed US$430.6 million in total assets and
US$728.7 million in total liabilities, resulting in a US$298.1
million total stockholders' deficit.
IDAMAN UNGGUL: BNM Okays Disposal of Equity Interest in Tahan
-------------------------------------------------------------
Bank Negara Malaysia has no objection for Idaman Unggul Berhad
to commence negotiations with Shriram Financial Services
Holdings Ltd. with respect to the proposed disposal of equity
interest in Tahan Insurance Malaysia Berhad, a wholly-owned
subsidiary of Idaman.
However, Idaman and Shriram will be required to obtain the
approval of the Minister of Finance, based on the recommendation
of Bank Negara, pursuant to the relevant provisions of the
Insurance Act 1996, before entering into any agreement to effect
the proposal.
The Board expects that negotiations will commence soon and
further development will be announced in due course.
About Idaman Unggul
Idaman Unggul Berhad is an investment holding company, whose
principal activity is the provision of corporate, administrative
and management support to its subsidiaries. The company
operates in two segments: insurance, which includes underwriting
of life insurance and all classes of general insurance business,
and other, which includes investment holding. Idaman Unggul's
subsidiaries include Tahan Insurance Malaysia Berhad, F.T. Land
Sdn. Bhd., PCM Synergy Sdn. Bhd., PICT Solution Sdn. Bhd. and
Straight Effort Sdn. Bhd. On July 12, 2006, the company
disposed Advanced Electronics (M) Sdn. Bhd. to Elevale Temasek
Sdn. Bhd. On July 3, 2006, Tahan Insurance Malaysia Berhad
disposed of its Life Insurance Business to AXA Affin Life
Insurance Berhad. Waikiki Beach Hotel Sdn. Bhd., a wholly owned
subsidiary of Idaman Unggul, was also divested as part of the
Life Insurance Business disposal. On January 17, 2007, the
company disposed IUB Asset Management Sdn Bhd to Capital
Intelligence Holdings Sdn Bhd.
* * *
As reported by Troubled Company Reporter-Asia Pacific on
March 6, 2008, the company has been classified as an Affected
Listed Issuer under Amended Practice Note 17/2005 of the Listing
Requirements of Bursa Malaysia Securities Berhad, since the
company's shareholders' fund has dropped to MYR41.204 million
which is lower than the 25% of the paid-up share capital and
minimum issued and paid up capital of MYR60 milion required
under the Listing Requirements.
MANGIUM INDUSTRIES: Inks Share Sale Agreement with Tekun Teguh
--------------------------------------------------------------
On April 17, 2008, Mangium Industries Bhd. entered into a Share
Sale Agreement with Tekun Teguh Sdn Bhd for the disposal of the
entire issued and paid-up share capital of its wholly owned
subsidiary, Mangium Sawmill Sdn Bhd.
The Proposed Disposal involves the sale of Mangium Sawmill's
2,500,000 ordinary shares at MYR1.00 each representing 100% of
the entire issued and paid-up capital of Mangium Sawmill by
Mangium to Tekun Teguh for a cash consideration of MYR1.00.
The consideration was arrived at on a willing -buyer-willing-
seller basis after taking into consideration the net liabilities
of Mangium Sawmill totaling to MYR49,667,356 based on its
audited financial statements for the financial year ended
December 31, 2006. Upon the completion of the Proposed
Disposal, Mangium Sawmill will cease to be a subsidiary of
Mangium.
Mangium Industries Berhad's principal activities are the
manufacture and trade of timber and timber related products.
Other activities include provision of printing services,
publisher, printer consultants and advertisers, trading of
alcoholic beverages, general trading of office furniture,
operation and development of the plantation and investment
holding. Operations of the Group are carried out in Malaysia.
The TCR-AP reported that Mangium Industries, on May 22, 2007,
became an affected listed issuer pursuant to the provisions of
Amended Practice Note 17/2005, as its shareholders' equity on
consolidated basis is less than 25% of its issued and paid-up
capital. As an affected listed issuer, Mangium is required to
formulate and implement a plan to regularize its financial
condition within a time frame stipulated by relevant
authorities.
SHAW GROUP: Earns US$8.9 Million in Quarter Ended February 29
-------------------------------------------------------------
The Shaw Group Inc. reported net income of US$8.9 million, or
US$0.11 per diluted share for the three months ended
February 29, 2008. Net income excluding the Westinghouse
segment was US$37.3 million, or US$0.44 per diluted share. The
Westinghouse segment included a non-cash, pre-tax, foreign
exchange translation loss of US$40.6 million. In comparison,
for the three months ended February 28, 2007, Shaw reported a
net loss of US$61.5 million, or US$0.77 per diluted share.
Excluding the Westinghouse segment, the prior year net loss for
the period was US$74.6 million, or US$0.93 per diluted share.
Earnings before interest expense, income taxes, depreciation and
amortization (EBITDA) for the second quarter of fiscal 2008,
excluding the Westinghouse segment, were US$78.6 million,
compared to a loss of US$76.0 million before interest expense,
income taxes, depreciation and amortization in the prior year
period.
"All of our business segments experienced revenue and earnings
growth for the first half of fiscal 2008 compared to the prior
year period, and we continue to generate strong operating cash
flow," said J.M. Bernhard Jr., Shaw's chairman, president and
chief executive officer. "Each segment performed well during
the second quarter with the exception of the Environmental and
Infrastructure segment, which performed below expectations. Our
Fabrication & Manufacturing segment achieved record revenues and
gross profit in the period as the business continues to execute
its capacity expansion program. The Fossil & Nuclear segment
also posted record revenues as work progresses on major air
quality control projects, supercritical clean coal-fired power
projects and the four AP1000 nuclear reactors in China.
"Recent agreements with SCANA and Progress Energy, along with
our EPC contract with Southern Company, indicate that the
nuclear renaissance in the U.S. is well underway," Bernhard
continued. "With our solid financial position, strong project
portfolio and the phasing of our projects under execution, we
continue to forecast increased earnings in the second half of
2008 and beyond."
Net cash provided by operating activities totaled a record
US$196.2 million for the second quarter of fiscal 2008, compared
to US$22.5 million in the second quarter of fiscal 2007. At
February 29, 2008, Shaw's total cash balance was approximately
US$665 million, up approximately US$304 million from the start
of fiscal year 2008.
Revenues for the second quarter of fiscal 2008 were
US$1.7 billion, up 37 percent from US$1.2 billion in the
corresponding 2007 period.
The reported results for the second quarter of 2008, excluding
the Westinghouse segment, include a 42 percent tax provision,
reflecting a higher tax provision than in previous periods due
to a shift in earnings to less favorably taxed jurisdictions.
Shaw's backlog of unfilled orders at February 29, 2008, was a
strong US$14.2 billion, up 26 percent from the prior year
period, with approximately US$5.6 billion, or 39 percent, of the
backlog expected to be converted to revenues during the next 12
months.
About The Shaw Group Inc.
The Shaw Group Inc. (NYSE:SGR) -- http://www.shawgrp.com/--
provides technology, engineering, procurement, construction,
maintenance, fabrication, manufacturing, consulting, remediation
and facilities management services for government and private
sector clients in the energy, chemicals, environmental,
infrastructure and emergency response markets. A Fortune 500
company with nearly $6 billion in annual revenues, Shaw is
headquartered in Baton Rouge, La., and employs approximately
27,000 people at its offices and operations in North America,
South America, Europe, the Middle East and the Asia-Pacific
region. In South America, the company has locations in Chile,
Venezuela, and Puerto Rico. The company's facilities in Europe
are located in the United Kingdom and Netherlands. Show Group's
Asia operations are located in Korea, China, Malaysia and
Indonesia.
* * *
As reported in the Troubled Company Reporter on April 21, 2008,
Moody's Investors Service has upgraded the corporate family
rating of The Shaw Group, Inc. to Ba1 from Ba2. In addition,
Moody's raised the rating on the company's senior secured bank
credit facility to Ba1 from Ba2. The rating outlook is stable.
====================
N E W Z E A L A N D
====================
BROADBEACH GROUP: Placed Under Voluntary Liquidation
----------------------------------------------------
Broadbeach Group Ltd. commenced liquidation proceedings on
March 26, 2008.
Creditors are required to file their proofs of debt by April 30,
2008, to be included in the company's dividend distribution.
The company's liquidator is:
Grant Bruce Reynolds
Reynolds & Associates Limited
PO Box 259059, Greenmount
Auckland
New Zealand
Telephone:(09) 526 0743
Facsimile:(09) 526 0748
CLEAR CHANNEL: Extends Offer's Expiration Date to April 25
----------------------------------------------------------
Clear Channel Communications Inc. last week extended the date on
which its tender offers are scheduled to expire from 8:00 a.m.
New York City time on April 18, 2008 to 8:00 a.m. New York City
time on April 25, 2008.
The company also extended the consent payment deadline for the
notes from 8:00 a.m. New York City time on April 18, 2008 to
8:00 a.m. New York City time on April 25, 2008.
The extension is in connection with the company's previously
announced tender offer for its outstanding 7.65% Senior Notes
due 2010 (CUSIP No. 184502AK8) and Clear Channel's subsidiary
AMFM Operating Inc.'s previously announced tender offer for its
outstanding 8% Senior Notes due 2008 (CUSIP No. 158916AL0).
The Offer Expiration Date and the Consent Payment Deadline are
subject to extension by Clear Channel, with respect to the CCU
Notes, and AMFM, with respect to the AMFM Notes, in their sole
discretion.
The completion of the tender offers and consent solicitations
for the Notes is conditioned upon the satisfaction or waiver of
all of the conditions precedent to the Agreement and Plan of
Merger by and among Clear Channel, CC Media Holdings, Inc., B
Triple Crown Finco, LLC, T Triple Crown Finco, LLC and BT Triple
Crown Merger Co., Inc., dated November 16, 2006, as amended by
Amendment No. 1, dated April 18, 2007, and Amendment No. 2,
dated May 17, 2007 and the closing of the merger contemplated by
the Merger Agreement. The closing of the Merger has not
occurred.
On March 26, 2008, Clear Channel, joined by CC Media Holdings,
Inc., filed a lawsuit in the Texas State Court in Bexar County,
Texas, against Citigroup, Deutsche Bank, Morgan Stanley, Credit
Suisse, The Royal Bank of Scotland, and Wachovia, the banks who
had committed to provide the debt financing for the Merger.
Clear Channel intends to complete the tender offers and consent
solicitations for the CCU Notes, and AMFM intends to complete
the tender offers and consent solicitations for the AMFM Notes,
upon consummation of the Merger.
Clear Channel on Jan. 2, 2008 said that it had received,
pursuant to its previously announced tender offer and consent
solicitation for the CCU Notes, the requisite consents to adopt
the proposed amendments to the CCU Notes and the indenture
governing the CCU Notes applicable to the CCU Notes, and that
AMFM had received, pursuant to its previously announced tender
offer and consent solicitation for the AMFM Notes, the requisite
consents to adopt the proposed amendments to the AMFM Notes and
the indenture governing the AMFM Notes. As of April 16, 2008,
approximately 87 percent of the AMFM Notes have been validly
tendered and not withdrawn and approximately 98 percent of the
CCU Notes have been validly tendered and not withdrawn.
The Clear Channel tender offer and consent solicitation is being
made pursuant to the terms and conditions set forth in the Clear
Channel Offer to Purchase and Consent Solicitation Statement for
the CCU Notes dated December 17, 2007 , and the related Letter
of Transmittal and Consent. The AMFM tender offer and consent
solicitation is being made pursuant to the terms and conditions
set forth in the AMFM Offer to Purchase and Consent Solicitation
Statement for the AMFM Notes dated December 17, 2007, and the
related Letter of Transmittal and Consent. Further details
about the terms and conditions of the tender offers and consent
solicitations are set forth in the Offers to Purchase and the
related documents.
Clear Channel has retained Citi to act as the lead dealer
manager for the tender offers and lead solicitation agent for
the consent solicitations and Deutsche Bank Securities Inc. and
Morgan Stanley & Co. Incorporated to act as co-dealer managers
for the tender offers and co-solicitation agents for the consent
solicitations. Global Bondholder Services Corporation is the
Information Agent for the tender offers and the consent
solicitations. Questions regarding the tender offers should be
directed to Citi at (800) 558-3745 (toll-free) or (212) 723-6106
(collect). Requests for documentation should be directed to
Global Bondholder Services Corporation at (212) 430-3774 (for
banks and brokers only) or (866) 924-2200 (for all others toll-
free).
About Clear Channel
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand. As of Dec. 31, 2007, it owned 717 core radio
stations, 288 non-core radio stations which are being marketed
for sale and a leading national radio network operating in the
United States.
* * *
In March 2008, Standard & Poor's Ratings Services said its
ratings on Clear Channel Communications Inc., including the 'B+'
corporate credit rating, remain on CreditWatch with negative
implications.
Fitch Ratings stated that in line with previous guidance, Clear
Channel Communications' 'BB-' Issuer Default Rating and Senior
Unsecured Ratings would remain in place if the going-private
transaction is not completed.
Moody's stated that assuming the transaction is completed as
currently contemplated, Clear Channel will likely be assigned a
Corporate Family Rating of B2 and the rating on the existing
senior notes is likely to be notched down to Caa1 based on their
expected subordination to the new senior secured debt facilities
and the new senior notes.
EMBEDDEDFUSION LTD: Fixes April 25 as Last Day to File Claims
-------------------------------------------------------------
The creditors of EmbeddedFusion Ltd. are required to file their
proofs of debt by April 25, 2008, to be included in the
company's dividend distribution.
The company's liquidators are:
Jeffrey Philip Meltzer
Michael Lamacraft
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
IJ CONTRACTORS: Subject to Steel & Tube's Wind-Up Petition
----------------------------------------------------------
On March 13, 2008, Steel & Tube Holdings Limited filed a
petition to have IJ Contractors Ltd.'s operations wound up.
The petition will be heard before the High Court of Wellington
on April 28, 2008, at 10:00 a.m.
Steel & Tube's solicitor is:
Merran Chisholm
c/o Walters Law
Qantas House, Level 23
191 Queen Street
Auckland
New Zealand
Telephone:(09) 921 0225
e-mail: merran.chisholm@walterslaw.co.nz
JOLLY ENGINEER: Taps Whittfield and van Delden as Liquidators
-------------------------------------------------------------
On March 19, 2008, the shareholders of The Jolly Engineer Ltd.
Appointed John Trevor Whittfield and Boris van Delden as the
company's liquidators.
Only creditors who were able to file their proofs of debt by
April 20, 2008, will be included in the company's dividend
distribution.
The liquidators can be reached at:
John Trevor Whittfield
Boris van Delden
McDonald Vague
PO Box 6092, Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
LONDON TRADERS: Commences Liquidation Proceedings
-------------------------------------------------
London Traders Ltd. commenced liquidation proceedings on
March 18, 2008.
Creditors are required to file their proofs of debt by April 24,
2008, to be included in the company's dividend distribution.
The company's liquidator is:
Roderick Thomas McKenzie
c/o McKenzie & Partners Limited
484 Main Street, Level 1
PO Box 12014, Palmerston North
New Zealand
Telephone:(06) 354 9639
Facsimile:(06) 356 2028
MACRON HOLDINGS: Taps John Chapman as Liquidator
------------------------------------------------
On March 1, 2008, John Patrick Chapman was appointed liquidator
of Macron Holdings Ltd.
The liquidator can be reached at:
John Patrick Chapman
c/o Bavage Chapman Limited Chartered Accountants
142 Rodney Street
Wellsford
New Zealand
Telephone:(09) 423 8143
Facsimile:(09) 423 7226
e-mail: john@bavagechapman.co.nz
PURSUIT PROPERTY: Appoints Taylor as Liquidator
-----------------------------------------------
On March 25, 2008, the shareholders of Pursuit Property No1 Ltd.
appointed Robert James Taylor as the company's liquidator.
Creditors are required to file their proofs of debt by May 1,
2008, to be included in the company's dividend distributon.
The liquidator can be reached at:
Robert James Taylor
Christmas Gouwland Limited
PO Box 106090, Auckland
New Zealand
Telephone:(09) 309 1799
Facsimile:(09) 307 3113
SAWGRASS DEVELOPMENTS: Wind-Up Petition Hearing Set for April 24
----------------------------------------------------------------
A petition to have Sawgrass Developments Ltd.'s operations wound
up will be heard before the High Court of Auckland on April 24,
2008, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition on
November 27, 2007.
The CIR's solicitor is:
Michael Kinlim Yan
Inland Revenue Department
Legal and Technical Services
5-7 Byron Avenue
PO Box 33150, Takapuna
Auckland
New Zealand
Telephone:(09) 984 1514
Facsimile:(09) 984 3116
SHIRE DEVELOPMENTS: Court to Hear Wind-Up Petition on April 24
--------------------------------------------------------------
A petition to have Shire Developments No 4 Ltd.'s operations
wound up will be heard before the High Court of Auckland on
April 24, 2008, at 10:00 a.m.
Ross Bush and Suzanne Bush filed the petition on Nov. 29, 2007,
at 10:00 a.m.
The Petitioners' solicitor is:
R. A. Fraser & Associates
151 Worcester Street, Level 2
PO Box 163, Christchurch
New Zealand
W.SCOTT/MORRIS AUTO: Fixes May 9 as Last Day to File Claims
-----------------------------------------------------------
The creditors of W.Scott/Morris Auto Electrical Ltd. are
required to file their proofs of debt by May 9, 2008, to be
included in the company's dividend distribution.
The company's liquidators are:
John Trevor Whittfield
Boris van Delden
McDonald Vague
PO Box 6092, Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
Telephone:(09) 306 3357
=====================
P H I L I P P I N E S
=====================
PRC LLC: Files Supplement Site Consolidation Incentive Plan
-----------------------------------------------------------
Subsequent to their request for a site consolidation incentive
plan, PRC LLC and its debtor-affiliates inform the U.S.
Bankruptcy Court for the Southern District of New York that they
have continued to consult their local managers and supervisors
regarding site adjustments involving call centers that are
experiencing higher employee turnover, and whose client services
are being relocated to an impractical location.
The Debtors relate that the turnover has the potential for
disrupting their efforts for a seamless transition of client
programs from one call center to another. The Debtors therefore
propose to enhance, in certain cases, the incentive payments
under the Incentive Plan by up toUS$300 per employee to no more
than 500 employees not exceeding an aggregate cost ofUS$150,000.
Accordingly, the Debtors increased certain incentive payments to
employees who are not offered relocation under the Incentive
Plan:
--------------------------------------------------------------
Time between EMPLOYEES NOT OFFERED RELOCATION
announcement and --------------------------------------
date of elimination Non-Exempt Exempt
of position at
"old" center
--------------------- --------------------------------------
Up to 30 days -- --
--------------------- --------------------------------------
More than 30 days but US$200 paid at US$750 paid at
less than 100 days termination termination
(up toUS$500 for (up toUS$1,050
for
up to 20% of up to 20% of
employees) employees)
--------------------- --------------------------------------
More than 100 days US$200 paid after US$1,500 paid at
60 days, and termination
anotherUS$200
paid at termination
(up toUS$350 and (up toUS$1,800
for
US$350, respectively, up to 20% of
for up to 20% of employees)
employees)
--------------------------------------------------------------
The Debtors are confident that an Incentive Plan with the
revised terms will facilitate their ability to continue
operations during the contemplated Site Adjustments in an
economic and efficient manner, Alfredo R. Perez, Esq., at Weil,
Gotshal, Manges LLP, in Houston, Texas, says.
About PRC LLC
Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC
-- http://www.prcnet.com/-- is a leading provider of customer
management solutions. PRC markets its services to brand-
focused, Fortune 500 U.S. corporations and delivers these
services through a global network of call centers in the U.S.,
Philippines, India, and the Dominican Republic.
PRC is the sole member of each of PRC B2B, LLC, and Precision
Response of Pennsylvania, LLC, and the sole shareholder of
Access Direct Telemarketing, Inc., each of which is a debtor and
debtor- in-possession in PRC's joint Chapter 11 cases.
Panther/DCP Intermediate Holdings, LLC, is the sole member of
PRC.
PRC, together with its operating subsidiaries PRC B2B, Access
Direct, and PRC PA, is a leading provider of complex,
consultative, outsourced services in the Customer Care and Sales
& Marketing segments of the business process outsourcing
industry. Since 1982, the company has acquired and grown
customer relationships for some of the world's largest and most
brand-focused corporations in the financial services, media,
telecommunications, transportation, and retail industries.
The company and four of its affiliates filed for Chapter 11
protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-
10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP,
represents the Debtors in their restructuring efforts. The
Debtors chose Stephen Dube, at CXO LLC, as their restructuring
and turnaround advisor. Additionally, Evercore Group LLC
provides investment and financial counsel to the Debtors.
The Debtors' consolidated financial condition as of Dec. 31,
2007 showed total assets ofUS$354,000,000 and total debts of
$261,000,000.
The Debtors submitted to the Court a Chapter 11 Plan of
Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News,
Issue No. 10; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
PRC LLC: Committee Wants to Employ Halperin as Conflicts Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in PRC LLC and its
debtor-affiliates Chapter 11 cases seeks authority from the U.S.
Bankruptcy Court for the Southern District of New York to retain
Halperin Battaglia Raicht, LLP, as its special conflicts counsel
nunc pro tunc to March 26, 2008.
According to Andrew B. Eckstein, Esq., at Blank Rome LLP, in New
York, the Committee has selected HBR because of its experience
and expertise in the field of creditors' and debtors' rights and
business reorganizations under the Bankruptcy Code. HBR has
been involved in numerous Chapter 11 cases throughout the United
States, and has acted as conflicts counsel to committees in
other significant Chapter 11 cases.
The Committee seeks to retain HBR to address matters as to which
its primary counsel, Blank Rome, may have conflicts. As of
April 9, 2008, Blank Rome has identified potential conflicts
related to Royal Bank of Scotland, the Debtors' prepetition
lenders, and the Verizon companies. HBR has agreed to represent
the interest of the Committee, except with respect to The CIT
Group, which it has in the past and may in the future represent
in matters not related to the Debtors and the Committee.
The services of HBR's professionals will be paid according to
the firm's standard hourly rates:
Professional Hourly Rate
------------ -----------
Attorneys US$175 -US$435
Clerks US$125
Paraprofessionals US$75 -US$100
HBR's actual and necessary expenses related to the contemplated
services will also be reimbursed.
Alan D. Halperin, a member of Halperin Battaglia Raicht, in New
York, assures the Court that his firm does not represent nor
hold interest adverse to the Committee, the Debtors, their
creditors or any party-in-interest in matters for which the firm
will be retained. He maintains that HBR is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.
About PRC LLC
Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC
-- http://www.prcnet.com/-- is a leading provider of customer
management solutions. PRC markets its services to brand-
focused, Fortune 500 U.S. corporations and delivers these
services through a global network of call centers in the U.S.,
Philippines, India, and the Dominican Republic.
PRC is the sole member of each of PRC B2B, LLC, and Precision
Response of Pennsylvania, LLC, and the sole shareholder of
Access Direct Telemarketing, Inc., each of which is a debtor and
debtor- in-possession in PRC's joint Chapter 11 cases.
Panther/DCP Intermediate Holdings, LLC, is the sole member of
PRC.
PRC, together with its operating subsidiaries PRC B2B, Access
Direct, and PRC PA, is a leading provider of complex,
consultative, outsourced services in the Customer Care and Sales
& Marketing segments of the business process outsourcing
industry. Since 1982, the company has acquired and grown
customer relationships for some of the world's largest and most
brand-focused corporations in the financial services, media,
telecommunications, transportation, and retail industries.
The company and four of its affiliates filed for Chapter 11
protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-
10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP,
represents the Debtors in their restructuring efforts. The
Debtors chose Stephen Dube, at CXO LLC, as their restructuring
and turnaround advisor. Additionally, Evercore Group LLC
provides investment and financial counsel to the Debtors.
The Debtors' consolidated financial condition as of Dec. 31,
2007 showed total assets of US$354,000,000 and total debts of
US$261,000,000.
The Debtors submitted to the Court a Chapter 11 Plan of
Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News,
Issue No. 10; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
PRC LLC: Inks Stipulation Resolving Pact With Spirit Airlines
-------------------------------------------------------------
PRC LLC and its debtor-affiliates entered into a stipulation
with Spirit Airlines Inc. resolving a dispute related to
services the Debtors provide to Spirit Air Lines.
As reported in the Troubled Company Reporter on March 19, 2008,
the Debtors and Spirit Air Lines previously executed the Letter
of Authorization on June 8, 2007, to formalize a master services
agreement, statements of work, and other documents relating to
services to be rendered by the Debtors.
"The Debtors and Spirit Air Lines could not formalize the letter
of authorization because they could not agree on profitable
terms for the Debtors to provide the services Spirit Air Lines
requires," said Alfredo R. Perez, Esq., at Weil, Gotshal &
Manges LLP, in Houston, Texas. He maintained that there is
little value in the Spirit Air Lines Agreement for the Debtors'
reorganization.
120-day Transition
Spirit Air asked the U.S. Bankruptcy Court for the Southern
District of New York to grant it 120 days from the entry of a
rejection order with respect to the Spirit Air Letter of
Authorization in order to allow a smooth transition to a new
call center service provider.
Arthur J. Spector, Esq., at Berger Singerman, P.A., in Fort
Lauderdale, Florida, said that Spirit Airlines does not contest
the Debtors' assertions. He said Spirit Airlines only wants
emphasize the serious implications if the Debtors are allowed to
cease servicing Spirit Airlines before it could find a suitable
replacement. The Debtors sought to reject the LOA as of
March 13, 2008.
Mr. Spector related that Spirit Airlines does not maintain an
internal telephone staff and depends completely on the Debtors'
operation for all incoming telephone reservations and ticket
rebookings. He maintained that Spirit Airlines currently
receives
betweenUS$200,000 andUS$300,000 in revenue per day from the
Debtors' call center, all of which could be lost, if the Debtors
were permitted to cease service before it could find a suitable
another call center provider.
Spirit Airlines disclosed that it has been diligently pursuing
discussions with other call center providers to replace the
Debtors' services, but cannot reasonably expect to have a fully
operational new call center ready to substitute the Debtors for
approximately 120 days. While Spirit Airlines is aggressively
seeking to contract a new call center provider, it will require
more time than the abrupt shutdown schedule proposed by the
Debtors, Mr. Spector said.
Debtors Talk Back
Alfredo R. Perez, Esq., at Weil, Gotshal & Manges LLP, in
Houston, Texas, argued that the Debtors have made a fair and
considerate offer to accommodate Spirit Airlines' service needs
until May 10, 2008. He asserted there is no legal or equitable
reason to compel the Debtors' estates to incur at least
US$500,000 in losses over a 150-day period, besides that the LOA
is burdensome, Spirit Airlines' account is past due, and the
Debtors have been unable to reach agreement on mutually
beneficial terms as was originally contemplated by the parties.
Parties Stipulate
The salient terms of the parties' Stipulation, which was
approved
by the Court, are:
(a) The Stipulation will take effect as of April 1, 2008.
(b) The LOA will be deemed terminated as of March 31, 2008.
For the period from April 1, 2008, through June 30, 2008,
the Debtors will perform certain transition services for
Spirit Air.
(c) The transition services the Debtors will perform are:
* The Debtors' customer service representatives will
be available to service inbound customer calls that are
directed to Spirit Airlines' toll-free numbers. The
Transition Services include phone services concerning:
-- inbound general sales,
-- new booking calls,
-- changes to bookings,
-- questions about bookings,
-- inbound schedule change calls, and
-- other inbound and/or outbound call processing
related to Spirit Air's reservations program and
post-sale customer support;
* The Debtors will provide a small team to perform
certain back office functions, including handling queue
work related to flight reservations, outbound calling,
and email and faxes;
* The Debtors will perform the Phone Services and the
Back Office Functions in the Philippines in conjunction
with its subcontractor, Advanced Contact Solutions,
Inc.;
* Subject to the Spanish Language Services, the Debtors
will either:
-- use reasonable efforts to perform the Phone Services
for Spanish-speaking customers and any services will
be provided in the Dominican Republic in conjunction
with the Debtors' subcontractor, Amov International
Teleservices, S.A., formerly known as, Verizon
International Teleservices C. Por A.; or
-- will provide reasonable assistance to, and will
reasonably coordinate efforts with, Spirit Airlines
if it elects to establish a direct contractual
relationship with Amov;
* The Debtors agree to begin the process of resporging
all Spirit Air-program 1-800 numbers to Spirit Airlines
immediately following the execution of the Stipulation.
All paperwork will be authorized, signed and returned
within two business days after receipt. As a result of
the resporging, Spirit Airlines will be responsible for
allocating call volumes to the Debtors until the end of
the Transition Period.
(d) The Debtors will provide a wind-down plan on the number
of CSRs that will be available to provide services during
the transition period, a full-text copy of which is
available for free at:
http://researcharchives.com/t/s?2ad3
(e) The Debtors will charge Spirit Airlines for transition
services according to these terms:
* Subject to the Minimum Monthly Guarantee, the Debtors
will bill Spirit Airlines at a fixed hourly rate of
US$13.44 multiplied by the amount of time that CSRs are
logged into the switch and available to take calls, or
in the case of the back office functions, otherwise
performing the services on behalf of Spirit Air.
* The minimum monthly amount owed by Spirit Airlines and
paid to the Debtors will be the Hourly Rate multiplied
by the number of productive hours resulting from the
staffing levels provided in the Wind-down Plan;
provided that, if the Debtors are unable to staff to
any applicable Minimum Monthly Guarantee, as a result
of natural attrition, then Spirit Air will pay the
Debtors for the actual number of Productive Hours
worked by the Debtors' CSRs in the Philippines
multiplied by the Hourly Rate, and provided further
that the Debtors will not directly, or indirectly
through any agent, subcontractor or other intermediary,
take any action to transfer or to incentivize the
transfer of CSRs and other personnel dedicated to
Spirit Air-related services to any other customer of
the Debtor or to any of the Debtors' affiliate or
subcontractor without Spirit Airlines' prior written
consent.
* Spirit Airlines will be entitled to request and receive
overtime coverage for its CSRs in the Philippines of up
to 5% of CSR agreed hours. The use of Overtime in
excess of that amount will be subject to the mutual
agreement of parties. The Debtors will bill Spirit
Airlines for the time that its CSRs work overtime at a
premium of 30% ofUS$13.44 per hour for the month at
issue. "Overtime" is defined as the number of hours
that CSRs are required to work in excess of their
regularly scheduled 40-hour work week.
* Spirit Airlines will pay the Debtors for all
information technology hours incurred by the Debtors to
effectuate the transition of technological
infrastructure to Spirit Airlines at the rate of US$100
per hour.
* Spirit Airlines will reimburse the Debtors for all
telecom costs incurred in connection with providing
services to Spirit Airlines, including costs incurred
for domestic and international inbound and outbound
telecom.
* Spirit Airlines agrees to pay the Debtors 115% of all
amounts invoiced by Amov to the Debtors for transition
services performed in the Dominican Republic.
(f) The Debtors will perform based on mutually agreed-upon
service levels, or the Service Level Agreements, to staff
and to achieve performance objectives included in the
Wind-Down Plan, with respect to average handle time
goals, service levels and abandonment rates for English-
language services which service levels will be agreed
based on average service levels achieved during the two
calendar months prior to the Petition Date, provided
that, (i) in no event will the Debtors be liable for the
failure to achieve SLAs during the transition period, and
(ii) the undertaking does not apply to Spanish-language
services provided by Amov.
(g) Upon execution of the Stipulation, Spirit Airlines will
pay the DebtorsUS$400,964, by wire transfer, for invoices
23010 and 23063, less disputed charges.
On or before May 8, 2008, Spirit Airlines will pay to the
Debtors, by wire transfer, the sum of US$497,005 for
invoices 23118 and 23119, less disputed charges.
For amounts due and owing for services rendered during
April and May 2008, the Debtors will submit a monthly
invoice to Spirit Airlines at the end of each month set
forth, in reasonable detail, including (i) a calculation
of the number of non-overtime CSR hours worked in the
Philippines multiplied by the Hourly Rate, (ii) a
calculation of Overtime and Overtime Premium, if any,
(iii) a calculation of charges owed to the Debtors based
on amounts invoiced by Amov to the Debtors for the month,
(iv) telecom charges, (v) miscellaneous IT charges, if
any, and (vi) actual SLA performance figures in
accordance with the Wind-Down Plan. Spirit Airlines will
pay within 30 days after receipt of the Debtors' invoice
an amount equal to:
* the charges as set forth from (i) through (v), plus;
* 50% of the amount of disputed charges through
March 31, 2008, totaling US$493,970, divided into
three equal installments of US$82,328 each for each
of April, May, and June, during the Transition
Period, subject to the achievement of the occupancy
goal provided in the the Wind-Down Plan.
For services to be rendered during June 2008, on or
before June 1, 2008, the Parties will mutually agree upon
a reasonable estimate of charges for the month, based
upon the staffing levels agreed to for the applicable
month, and Spirit Airlines will deposit the sum with
the Clerk of the Court by check or wire transfer, so that
the funds may be placed in the Court Registry Investment
System interest bearing account. The funds will be
released from the Court Registry Investment System only
upon further Court order.
The Clerk will distribute the principal and income earned
on the monies deposited in accordance with a Court order,
but will deduct from the income earned on the investment
a fee not exceeding that authorized by the Judicial
Conference of the United States and set by the director
of the administrative office whenever the income becomes
available for deduction from the investment held without
further order of the Court.
The Parties will reconcile actual charges for June 2008
based on the invoice issued by the Debtors for that month
for services actually rendered, consistent with the
manner in which the Debtors have agreed to invoice Spirit
Air for services rendered for the months of April and
May. If, as a result of the reconciliation, one Party
owes the other Party any amount, the amount will be paid
by the owing Party to the owed Party no later than 10
days after the issuance of the April and May
Reconciliation Invoice. All payments due will be made by
Spirit Airlines without offset or recoupment.
Spirit Airlines will be entitled to reasonable access to
the area in the Philippines call center in which the
transition services are rendered; provided that, Spirit
Airlines agrees not to directly or indirectly solicit any
employees to leave the employment of ACS or the Debtors,
as the case may be.
(h) All Transition Services will terminate on June 30, 2008.
In the event Spirit Airlines fails to pay any amounts
when due, except for amounts invoiced that are disputed
in good faith, or fails to make the stipulated deposit,
in addition to all of the Debtors' other rights and
remedies, at law or in equity, the Transition Services
provided under the Stipulation will automatically
terminate on the third business day after the day those
amounts are due without any further notice or action on
the part of the Debtors, and without further Court order.
(i) The Debtors intend to file a request with the Court to
reject their contract with Amov on or before April 15,
2008. The Debtors have advised Spirit Airlines to
immediately ramp down the services in the Dominican
Republic. As a result, although the Debtors will work
with Amov in good faith to maintain the numbers of CSRs
in the Dominican Republic, the Parties agree that the
Debtors will have no liability whatsoever for the failure
to provide Spanish-language services during the
Transition Period or for the failure of Amov to provide
the said staffing or for any other acts and omissions of
Amov with regard to the Transition Services. Subject to
these terms, the Debtors agree to:
* provide Spirit Airlines with notice their filing of
the Amov rejection motion, if filed prior to
April 15,2008, and;
* reasonably cooperate with and assist Spirit Airlines
in its efforts to maintain continuity of Spanish-
language services during the Transition Period
including, if Spirit Airlines elects, by obtaining a
direct contractual relationship between Spirit
Airlines and Amov.
(j) Spirit Airlines agrees to waive and release all claims
and payment requests it may have against the Debtors.
About PRC LLC
Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC
-- http://www.prcnet.com/-- is a leading provider of customer
management solutions. PRC markets its services to brand-
focused, Fortune 500 U.S. corporations and delivers these
services through a global network of call centers in the U.S.,
Philippines, India, and the Dominican Republic.
PRC is the sole member of each of PRC B2B, LLC, and Precision
Response of Pennsylvania, LLC, and the sole shareholder of
Access Direct Telemarketing, Inc., each of which is a debtor and
debtor- in-possession in PRC's joint Chapter 11 cases.
Panther/DCP Intermediate Holdings, LLC, is the sole member of
PRC.
PRC, together with its operating subsidiaries PRC B2B, Access
Direct, and PRC PA, is a leading provider of complex,
consultative, outsourced services in the Customer Care and Sales
& Marketing segments of the business process outsourcing
industry. Since 1982, the company has acquired and grown
customer relationships for some of the world's largest and most
brand-focused corporations in the financial services, media,
telecommunications, transportation, and retail industries.
The company and four of its affiliates filed for Chapter 11
protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-
10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP,
represents the Debtors in their restructuring efforts. The
Debtors chose Stephen Dube, at CXO LLC, as their restructuring
and turnaround advisor. Additionally, Evercore Group LLC
provides investment and financial counsel to the Debtors.
The Debtors' consolidated financial condition as of Dec. 31,
2007 showed total assets of US$354,000,000 and total debts of
US$261,000,000.
The Debtors submitted to the Court a Chapter 11 Plan of
Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News,
Issue No. 10; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
=================
S I N G A P O R E
=================
ADVANCED MICRO: Posts US$358MM Net Loss in First Quarter of 2008
----------------------------------------------------------------
Advanced Micro Devices Inc. reported first quarter 2008 revenue
of US$1.5 billion; a net loss of US$358.0 million, which is the
company's sixth consecutive quarterly net loss; and an operating
loss of US$264.0 million. First quarter revenue decreased 15%
compared to the fourth quarter of 2007 and increased 22%
compared to the first quarter of 2007.
In the fourth quarter 2007, AMD reported revenue of US$1.7
billion, a net loss of US$1.7 billion, and an operating loss of
US$1.6 billion. In the first quarter 2007, AMD reported revenue
ofUS$1.2 billion, a net loss US$611.0 million, and an operating
loss of US$504.0 million.
"A seasonally weak first quarter was amplified by a challenging
economic environment for consumers and lower than expected
revenues of previous generation products, resulting in lower
than expected revenues in all business segments," Robert J.
Rivet, AMD's Chief Financial officer, said. "However, we are
encouraged by the market acceptance of our Quad-Core AMD
Opteron(TM) server processors as well as our new chipset and
graphics offerings. We remain committed to achieve operating
profitability in the second half of the year, driven by our
portfolio of new products and platforms and aggressive
restructuring programs."
First quarter 2008 gross margin was 42% compared to 44% in the
fourth quarter of 2007 and 28% in the first quarter of 2007.
The decrease from the prior quarter was primarily due to
decreased microprocessor unit shipments.
At March 29, 2008, the company's balance sheet showed total
assets of US$11.2 billion and total liabilities of US$8.5
billion, resulting in a US$2.6 billion stockholders' equity.
Equity, as of Dec. 29, 2007, was US$2.9 billion.
Damon Poeter of ChannelWeb relates that an AMD spokesperson
confirmed that as part of streamlining the company's 16,420
workforce, it displaced 420 employees, including 215 in a non-
manufacturing site in Austin, Texas. Don Clark of The Wall
Street Journal reported that AMD is mulling over a sale of some
non-core assets.
About Advanced Micro
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative
processing solutions in the computing, graphics and consumer
electronics markets.
The company has a facility in Singapore. It has sales offices in
Belgium, France, Germany, the United Kingdom, Mexico and Brazil.
At Dec. 29, 2007, the company's consolidated balance sheet
showed US$11.550 billion in total assets,US$8.295 billion in
total liabilities, US$265.0 million in minority interest in
consolidated subsidiaries, and US$2.990 billion in total
stockholders' equity.
* * *
As reported in the Troubled Company Reporter on Jan. 28, 2008,
Fitch downgraded these ratings on Advanced Micro Devices Inc.,
including its Issuer Default Rating to 'B-' from 'B'; and its
Senior unsecured debt to 'CCC'/RR6 from 'CCC+/RR6'. The Rating
Outlook remains Negative.
FABLESS INVESTMENTS: Creditors' Proofs of Debt Due on May 5
-----------------------------------------------------------
The creditors of Fabless Investments Pte. Ltd. are required to
file their proofs of debt by May 5, 2008, to be included in the
company's dividend distribution.
The company's liquidators are:
Chee Yoh Chuang
Lim Lee Meng
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423
J MORITA: Court Enters Wind-Up Order
------------------------------------
On March 28, 2008, the High Court of Singapore entered an order
to have J Morita (S) Pte. Ltd.'s operations wound up.
Mallal & Namazie filed the petition against the company.
J Morita's liquidator is:
The Official Receiver
Insolvency & Public Trustee’s Office
The URA Centre (East Wing)
45 Maxwell Road #05-11/#06-11
Singapore 069118
NOVO NORDISK: Requires Creditors to File Claims by May 5
--------------------------------------------------------
Novo Nordisk Asia Pacific Pte Ltd, which is in liquidation,
requires its creditors to file their proofs of debt by May 5,
2008, to be included in the company's dividend distribution.
The company's liquidators are:
Yeap Lam Kheng
Bob Yap Cheng Ghee
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
TEO BROS.: Court Enters Wind-Up Order
-------------------------------------
On March 28, 2008, the High Court of Singapore entered an order
to have Teo Bros. (Pte.) Ltd.'s operations wound up.
Teo Tee Teow Pte. Ltd. and Teo Tee Kee Pte Ltd filed the
petition against the company.
Teo Bros.' liquidators are:
Chee Yoh Chuang
Lim Lee Meng
c/o Stone Forest Corporate Advisory Pte Ltd
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423
===============
T H A I L A N D
===============
BLOCKBUSTER: CEO Keyes' US$5.6MM Pay Lower than Predecessor's
-------------------------------------------------------------
Blockbuster Inc. disclosed in a Securities and Exchange
Commission filing that James W. Keyes, the company's chairman of
the board and chief executive officer, received less than former
Chairman and CEO John F. Antioco in 2007. Mr. Keyes' total
compensation package in 2007 was US$5.6 million, while Mr.
Antioco was paid a total ofUS$11.5 million in 2007.
As reported in the Troubled Company Reporter on March 22, 2007,
Blockbuster and Mr. Antioco entered into an amended and restated
employment agreement that sets forth terms of Mr. Antioco's
departure from the company in 2007. Mr. Antioco would receive a
2006 bonus ofUS$3.0525 million, which reflects a compromise
between theUS$2.28 million bonus previously conditionally
offered by the board andUS$7.65 million, which is the amount
Antioco was entitled to receive under his previous employment
agreement and Blockbuster's 2006 Senior Bonus Plan if negative
discretion was not invoked.
Additionally, at the conclusion of his employment, Mr. Antioco
will receive a lump sum payment ofUS$4.9875 million as compared
to a lump sum payment ofUS$13.5 million that he would have been
entitled to receive if he had been terminated without cause or
had resigned for good reason on Dec. 31, 2007, under his
previous employment agreement.
Based in Dallas, Texas, Blockbuster Inc. (NYSE: BBI,
BBI.B) -- http://www.blockbuster.com/-- is a leading global
provider of in-home movie and game entertainment, with over
7,800 stores throughout the Americas, Europe, Asia and
Australia. The company also operates in Taiwan, Thailand, and
New Zealand. (Movie Gallery Bankruptcy News Issue No. 15;
Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
At Jan. 6, 2008, the company's total debt, including capital
lease obligations wasUS$757.8 million compared withUS$984.2
million in Dec. 31, 2006.
DOLE: S&P Lifts Debt Rating to B- and Puts '4' Recovery Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned recovery ratings to
Dole Food Co. Inc.'s unsecured debt issues and raised the issue-
level ratings on this debt. The issue-level ratings on the
unsecured debt were raised to 'B-' from 'CCC+'. Recovery
ratings of '4' were assigned to this debt, indicating the
expectation of average (30%-50%) recovery in the event of a
payment default.
The issue-level rating on Dole's secured loans is affirmed at
'B+'. The recovery rating on this secured debt remains
unchanged at '1', indicating the expectation for very high (90%-
100%) recovery in the event of a payment default.
Both the senior unsecured and secured debt issue ratings are
removed from CreditWatch, where they were initially placed with
negative implications on Nov. 27, 2007.
Ratings List
Dole Food Co. Inc.
Corporate Credit Rating B-/Negative/--
Ratings Removed From CreditWatch
To From
-- ----
Dole Food Co. Inc.
Senior Secured
Local Currency B+ B+/Watch Neg
Recovery Rating 1 1
Ratings Raised; Removed From CreditWatch
Dole Food Co. Inc.
Senior Unsecured
Local Currency B- CCC+/Watch Neg
Rating Assigned
Dole Food Co. Inc.
Senior Unsecured
Recovery Rating 4
Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- a producer of fresh
fruit and fresh vegetables, and markets a line of value-added
products. The company operates in four business segments: fresh
fruit, fresh vegetables, packaged foods and fresh-cut flowers.
The fresh fruit segment contains operating divisions that
produce and market fresh fruit to wholesale, retail and
institutional customers worldwide. The fresh vegetables segment
contains two operating divisions that produce and market
commodity and fresh-cut vegetables to wholesale, retail and
institutional customers, primarily in North America, Europe and
Asia. The packaged foods segment contains operating divisions
that produce and market packaged foods, including fruit, juices
and snack foods. The fresh-cut flowers segment sources, imports
and markets fresh-cut flowers, grown mainly in Columbia,
primarily to wholesale florists and retail grocers in the United
States.
In Asia, the company has subsidiaries in Japan, Korea, Thailand,
Philippines and China. Its European subsidiaries are located in
Spain, Czech Republic, Germany, France, Italy, England and
Sweden.
* BOND PRICING: For the Week 21 April to 25 April 2008
------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA &
NEW ZEALAND
-----------
Ainsworth Game Technology Ltd 8.000% 12/31/09 AUD 0.70
A&R Whitcoulls Group 9.500% 12/15/10 NZD 14.00
ALE Property Group 7.265% 09/30/11 AUD 75.00
Allco Hit Ltd 9.000% 08/17/09 AUD 18.00
Antares Energy Limited 10.000% 10/31/13 AUD 0.55
Babcock & Brown Pty Ltd 9.010% 09/15/16 NZD 18.50
Becton Property Group 9.500% 06/30/10 AUD 0.59
Bounty Industries Limited 10.000% 06/30/10 AUD 0.09
Capital Properties NZ Ltd 8.500% 04/15/09 NZD 11.00
Capital Properties NZ Ltd 8.000% 04/15/10 NZD 11.90
China Century 12.000% 09/30/10 AUD 0.81
CIT Group 6.000% 03/03/11 AUD 74.50
Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.13
Fletcher Building Ltd 7.800% 03/15/09 NZD 11.00
Fletcher Building Ltd 7.550% 03/15/11 NZD 10.35
Griffin Coal Mining Co. 9.500% 12/01/16 USD 73.55
Heemskirk Consolidated
Limited 8.000% 04/29/11 AUD 2.96
Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 13.00
Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 15.00
Infrastructure & Utilities 8.500% 09/15/13 NZD 10.70
Jem Warehouse 3.000% 08/01/14 AUD 70.54
LongReach Group Limited 10.000% 10/31/08 AUD 0.32
Macquarie Comm 2.500% 08/23/13 USD 73.75
Metal Storm Ltd 10.000% 09/01/09 AUD 0.10
Minerals Corp 10.500% 09/30/08 AUD 0.70
PPCS Limited 11.500% 12/15/10 NZD 74.41
Record Funds Man 11.000% 09/01/10 AUD 45.50
Salomon SB Aust 4.250% 02/01/19 USD 7.13
South Canterbury 10.430% 12/15/12 NZD 1.00
Speirs Group Ltd. 13.160% 06/30/49 NZD 65.00
TrustPower Ltd 8.300% 12/15/08 NZD 11.00
TrustPower Ltd 8.500% 09/15/12 NZD 9.45
TrustPower Ltd 8.500% 03/15/14 NZD 9.90
CHINA
-----
China Govt Bond 4.860% 08/10/14 CNY 0.00
Cosco Shipping 0.800% 01/28/14 CNY 74.83
Tsingtao Brewery 0.800% 04/02/14 CNY 73.38
JAPAN
-----
Nis Group 2.730% 02/25/10 JPY 71.55
Suruga Corp 2.890% 10/20/09 JPY 47.14
KOREA
-----
Korea Dev. Bank 7.350% 10/27/21 KRW 50.85
Korea Dev. Bank 7.450% 10/31/21 KRW 50.82
Korea Dev. Bank 7.400% 11/02/21 KRW 50.80
Korea Dev. Bank 7.310% 11/08/21 KRW 50.75
Korea Dev. Bank 8.450% 12/15/26 KRW 73.15
Korea Elec Pwr 7.950% 04/01/96 USD 67.84
MALAYSIA
--------
Advance Synergy Berhad 2.000% 01/26/18 MYR 0.06
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.96
Bank Muamalat 6.250% 09/05/16 MYR 70.81
Berjaya Land Bhd 5.000% 12/30/09 MYR 5.60
Bumiputra-Commerce
Holdings Bhd 2.500% 07/16/08 MYR 1.20
Cagamas Berhad 3.650% 05/28/08 MYR 14.00
Cagamas Berhad 3.610% 10/10/08 MYR 7.00
Eastern & Orient 8.000% 07/25/11 MYR 2.45
EG Industries Berhad 5.000% 06/16/10 MYR 0.31
Equine Capital 3.000% 08/26/08 MYR 1.63
Greatpac Holdings 2.000% 12/11/08 MYR 0.20
Gula Perak Bhd 6.000% 04/23/08 MYR 0.27
Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.36
Insas Berhad 8.000% 04/19/09 MYR 0.56
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.31
Kretam Holdings Bhd 1.000% 08/10/10 MYR 1.35
Kumpulan Jetson Berhad 5.000% 11/27/12 MYR 0.43
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.38
LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.60
Malaysian Gov't 6.450% 07/01/08 MYR 61.00
Malaysian Gov't 6.450% 11/30/08 MYR 61.00
Malaysian Gov't 4.053% 12/04/12 MYR 62.00
Malaysian Gov't 8.000% 10/30/13 MYR 61.00
Malaysian Gov't 7.300% 10/01/14 MYR 62.00
Malaysian Gov't 4.410% 01/29/18 MYR 46.00
Media Prima Bhd 2.000% 07/18/08 MYR 1.48
Mithril Bhd 8.000% 04/05/09 MYR 0.13
Mithril Bhd 3.000% 04/05/12 MYR 0.57
Nam Fatt Corp 2.000% 06/24/11 MYR 0.31
Pelikan International 3.000% 04/08/10 MYR 1.90
Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.09
Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.78
RCE Advance 8.000% 11/15/12 MYR 31.00
Rhythm Consolidated Berhad 5.000% 12/17/08 MYR 0.12
Rubberex Corporation Berhad 4.000% 08/14/12 MYR 0.64
Silver Bird Group 1.000% 02/15/09 MYR 31.00
Southern Steel 5.500% 07/31/08 MYR 2.14
Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.22
Tradewinds Corp. 2.000% 02/08/12 MYR 0.73
Tradewinds Plantation Berhad 3.000% 02/28/16 MYR 1.63
TRC Synergy Berhad 5.000% 01/20/12 MYR 1.36
Wah Seong Corp. 3.000% 05/21/12 MYR 4.22
Wijaya Baru Global Berhad 7.000% 09/17/12 MYR 0.60
YTL Cement Bhd 4.000% 11/10/15 MYR 1.70
SINGAPORE
---------
Sengkang Mall 8.000% 11/20/12 SGD 1.15
SRI LANKA
---------
Sri Lanka Govt 6.850% 04/15/12 LKR 72.61
Sri Lanka Govt 6.850% 10/15/12 LKR 70.84
Sri Lanka Govt 8.500% 01/15/13 LKR 74.41
Sri Lanka Govt 7.500% 08/01/13 LKR 70.53
Sri Lanka Govt 7.500% 11/01/13 LKR 69.69
Sri Lanka Govt 8.500% 02/01/18 LKR 69.06
Sri Lanka Govt 8.500% 07/15/18 LKR 70.71
Sri Lanka Govt 7.500% 07/15/18 LKR 65.44
Sri Lanka Govt 7.000% 10/01/23 LKR 58.50
*********
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, Patrick Abing, Tara Eliza Tecarro, Marie
Therese Profetana, 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 ***