/raid1/www/Hosts/bankrupt/TCRAP_Public/080424.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
Thursday, April 24, 2008, Vol. 11, No. 81
Headlines
A U S T R A L I A
COMPLETE TREE: Final Meeting Slated for April 30
FIT PLASTER: Final Meeting Slated for April 30
HEYWOOD CONTRACTING: Final Meeting Slated for April 30
J & B PAYNE: Final Meeting Slated for April 30
LIFT CAPITAL: Creditors Can Get at Least Half of Their Money
M & V BROWN: Final Meeting Slated for April 30
OPES PRIME: ASIC Won't Interfere Over Beconwood-ANZ Case
RUTLAND RIDGE: Final Meeting Slated for April 30
TECHNOVA PTY: Final Meeting Slated for April 30
C H I N A & H O N G K O N G & T A I W A N
AMKOR TECHNOLOGY: Moody's Holds Junk Rating on US$190 Mln Notes
ASIAN OPTOMETRIST: Liquidator Quits Post
BENQ CORP: First Quarter LCD Monitor Sales Up 41.6%
CAPITAL IDEA: Creditors' Proofs of Debt Due May 19
CHINA SOUTHERN: Expanding to Eight Overseas Routes This Year
COSMIC INT'L: Court to Hear Wind-Up Proceedings on May 21
CS MANAGEMENT: Creditors' Proofs of Debt Due May 9
DANA CORP: Inks Separation Pact with CEO & COO Michael Burns
DANA CORP: Ogre Wants Court to Overrule $1.3MM Claim Objection
E2E SUPPLY: Liquidator Quits Post
FIAT SPA: CEO Says Targets Meet Expectations Amid Poor Market
GREENTOWN CHINA: Records RMB923.4 Million Profit for 2007
GREENTOWN CHINA: Opens Two Apartment Complexes in Hangzhou
HEXCEL CORP: S&P Holds BB Corp. Credit Rating with Pos. Outlook
HIGHNESS RESTAURANT: Creditors' Proofs of Debt Due May 17
HOGENT INTERNATIONAL: Liquidators Quit Post
JOYFUL DESIGN: Appoints New Liquidators
LANGWOOD LIMITED: Creditors' Proofs of Debt Due May 9
MARKVIEW LIMITED: Creditors' Proofs of Debt Due May 19
ORIENTAL POWER: Appoints New Liquidators
PETROLEOS DE VENEZUELA: To Discuss Discrepancy in Output Figures
PETROLEOS DE VENEZUELA: Paying Interests to Investors on Time
PORTAL SOFTWARE: Commences Liquidation Proceedings
RICON INTERNATIONAL: Creditors' Proofs of Debt Due May 23
SILVER ELEGANT: Court to Hear Wind-Up Proceedings on May 14
TALENT LEADER: Commences Liquidation Proceedings
TIGG (HOLDINGS): Creditors' Proofs of Debt Due May 19
WAH KONG: Court to Hear Wind-Up Proceedings on May 7
WELLBERY COMPANY: Commences Liquidation Proceedings
XINHAO GAS: 2007 Profit Up 34% on Increasing Energy Demand
ZTE CORPORATION: Fitch Holds 'BB+' ID Rating With Stable Outlook
I N D I A
DECCAN AVIATION: Appoints Dr. Vijay Mallya as Chairman
ICICI BANK: To Cutback Hiring This Year
IFCI LTD: Unit Defers Plan to Sell Equity Stake to Cargill
CANARA BANK: Fitch Holds 'BB' Foreign Currency Bond Rating
I N D O N E S I A
BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29
BANK DANAMON: 1st Quarter 2008 Net Profit Reaches IDR563 Billion
INDOFOOD SUKSES: To Issue Five-Year Bonds to Repay Debt
PERUSAHAAN GAS: Will Supply Additional Natural Gas to PLN
J A P A N
ALITALIA SPA: OAO Aeroflot to Resume Talks Over Italy's Stake
BOWNE & CO: Improved Cash Flow Cues Moody's Ba2 Rating Upgrade
FUJI HEAVY: Sees Long-term Benefits With Toyota Tie-up
GAP INC: Fitch Affirms IDR at BB+ on Considerable Liquidity
GOODWILL GROUP: United Technology Plans No Hostile Bid
TAIHEIYO CEMENT: Warns 20% Profit Decline at U.S. Unit
K O R E A
TAEYANG METAL: Hwang Gyu Hond Resigns as Co-CEO
WOORI TECHNOLOGY: Makes Capital Injection Into Subsidiary
M A L A Y S I A
THERMADYNE HOLDINGS: Moody's Lifts CF Rating to B3 from Caa1
N E W Z E A L A N D
AIR NEW ZEALAND: Fiscal 2007 Profit to Fall Due to Oil Hike
ASSET BUILDERS: Proofs of Claim Must Be Filed by April 30
ATOMIX LTD: High Court to Hear Wind-Up Petition on April 28
BEDS-R-US WELLINGTON: Deadline to File Claims is Today
BENTON DENTED CARRIERS: Court to Hear Wind-Up Petition Today
BONSAI PRODUCTIONS: Creditors Must File Claims by April 25
CGNZ LTD: Shareholders Appoint Joint Liquidators
CORVARA INVESTMENTS: Faces Bidvest's Wind-Up Petition
EDGEWATER ADVENTURES: Creditors Must File Claims by April 28
FOXTON HOTEL: Liquidators Set May 27 Claims Bar Date
LORRAINE ADAMS DESIGN: Court Enters Liquidation Order
MENSWORKS GROOMING: Joint Liquidators Appointed
NO.1 AUTOMART: Faces Aztech Automotive's Wind-Up Petition
PEDLARS RECYCLERS: Joint Liquidators Appointed
RAYDA LTD: Court to Hear Wind-Up Petition on May 26
SJG CONSTRUCTION: Joint Liquidators Appointed
SKELLERUP HOLDINGS: Eyes U.S. Acquisition After Sale of 4 Units
STAR SCREENPRINT: Members Appoint Joint Liquidators
SUITE CENTRE: Joint Liquidators Appointed
WANAKA GAS: Court Enters Liquidation Order
P H I L I P P I N E S
CHIQUITA BRANDS: Gets Sued Over Colombia Deaths
SBARRO INC: Earns US$5.1 Million in Fourth Quarter Ended Dec. 30
MANILA ELECTRIC: Increases Pass-Through Charges for April
* Fitch Wary at Sustainability of Philippine Revenues
S I N G A P O R E
FLEXTRONICS INT'L: May Complete Phase 2 of Arima Deal This Month
GRANT PRIDECO: Completed Varco Deal Cues S&P to Withdraw Ratin
- - - - -
=================
A U S T R A L I A
=================
COMPLETE TREE: Final Meeting Slated for April 30
------------------------------------------------
The Complete Tree & Garden Company Pty Ltd will hold a
final meeting for its members and creditors on
April 30, 2008, at 3:15 p.m. During the meeting, the
company's liquidators, V. R. Dye and N. Giasoumi at
Dye & Co. Pty Ltd., will provide the attendees with
property disposal and winding-up reports.
The liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Complete Tree
Based at Camberwell East, in Victoria, Australia,
The Complete Tree & Garden Company Pty Ltd is in the
durable goods business.
FIT PLASTER: Final Meeting Slated for April 30
----------------------------------------------
Fit Plaster Pty. Ltd. will hold a final meeting for its
members and creditors on April 30, 2008, at 12:45 p.m.
During the meeting, the company's liquidators, V. R. Dye
and N. Giasoumi at Dye & Co. Pty Ltd., will provide the
attendees with property disposal and winding-up reports.
The liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
HEYWOOD CONTRACTING: Final Meeting Slated for April 30
------------------------------------------------------
Heywood Contracting Pty Ltd will hold a final meeting for its
members and creditors on April 30, 2008, at 1:00 p.m.
During the meeting, the company's liquidators, V. R. Dye
and N. Giasoumi at Dye & Co. Pty Ltd., will provide the
attendees with property disposal and winding-up reports.
The liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Heywood
Heywood Contracting Pty Ltd is an investment company
based at Upwey, in Victoria, Australia.
J & B PAYNE: Final Meeting Slated for April 30
----------------------------------------------
J & B Payne Pty Ltd will hold a final meeting for its
members and creditors on April 30, 2008, at 1:15 p.m.
During the meeting, the company's liquidators, V. R. Dye
and N. Giasoumi at Dye & Co. Pty Ltd., will provide the
attendees with property disposal and winding-up reports.
The liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About J & B Payne
J & B Payne Pty Ltd is a surety insurance company
based at South Melbourne, in Victoria, Australia.
LIFT CAPITAL: Creditors Can Get at Least Half of Their Money
------------------------------------------------------------
Lift Capital's administrator, McGrathNicol, told the company's
1,600 creditors that they can get back at least half of the
money they invested with the firm, reports the Australian
Associated Press.
McGrathNicol, at a creditors' meeting in Sydney, also said that
some Lift investors could have all of their funds returned,
while those that don't will receive a dividend payment from a
pool of funds, relates AAP.
AAP quotes administrator Tony McGrath as saying, "Although it is
early days, our expectation is that there will be quite a
significant dividend that will be paid out of a pool." Mr.
McGrath added that those in the pool could expect a payment of
at least 50 cents in the dollar.
Mr. McGrath also said in the report that an early estimate
has indicated that investors are owed around AU$270 million.
About Lift Capital
Lift Capital -- http://www.liftcapital.com.au/-- is an
Australian owned, independent (non-bank owned) financial
services provider, specializing in lending against structured
equity products principally against listed shares and interests
in managed funds. The company's products enable its clients to
borrow money to invest in a wide range of assets. Lift Capital
may take a mortgage over these assets to secure the loan.
The Troubled Company Reporter-Asia Pacific reported on April 14,
2008, that Lift Capital was placed under voluntary
administration after reports questioning its viability triggered
a run of investors wanting to liquidate their assets. The
administrators will focus on gathering information to convey to
creditors and investors.
M & V BROWN: Final Meeting Slated for April 30
----------------------------------------------
M & V Brown Pty Ltd will hold a final meeting for its
members and creditors on April 30, 2008, at 1:30 p.m.
During the meeting, the company's liquidators, V. R. Dye
and N. Giasoumi at Dye & Co. Pty Ltd., will provide the
attendees with property disposal and winding-up reports.
The liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About M & V Brown
Based at Carrum Downs, in Victoria, Australia,
M & V Brown Pty Ltd arranges transportation of
freight and cargo.
OPES PRIME: ASIC Won't Interfere Over Beconwood-ANZ Case
--------------------------------------------------------
Blair Speedy of The Australian writes that the Australian
Securities & Investments Commission has "changed their mind"
after planning to intervene in a Federal Court case against ANZ
Banking Group for its selling of shares as part of the collapse
of Opes Prime Group Ltd.
Beconwood Securities is seeking the return of shares it lodged
with Opes as security for a loan but which have since been
partially sold by ANZ as the bank seeks to recover
AU$650 million in loans made to Opes, relates The Australian.
According to The Australian, the case centers on whether the
loan arrangement between Beconwood and Opes dissolved any claim
to ownership of the shares by Beconwood.
Judge Ray Finkelstein told the court that ASIC notified him that
it is no longer considering intervening in the case over the
matter of ANZ's disclosure.
The Australian says that an ASIC spokesman declined to comment
on the reason for the regulator's decision.
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.
RUTLAND RIDGE: Final Meeting Slated for April 30
------------------------------------------------
Rutland Ridge Pty Ltd will hold a final meeting for its
members and creditors on April 30, 2008, at 2:30 p.m.
During the meeting, the company's liquidators, V. R. Dye
and N. Giasoumi at Dye & Co. Pty Ltd., will provide the
attendees with property disposal and winding-up reports.
The liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Rutland Ridge
Based at Werribee, in Victoria, Australia, Rutland
Ridge Pty Ltd is in durable goods business.
TECHNOVA PTY: Final Meeting Slated for April 30
-----------------------------------------------
Technova Pty Ltd will hold a final meeting for its
members and creditors on April 30, 2008, at 3:00 p.m.
During the meeting, the company's liquidators, V. R. Dye
and N. Giasoumi at Dye & Co. Pty Ltd., will provide the
attendees with property disposal and winding-up reports.
The liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Technova
Based at Clayton, in Victoria, Australia, Technova Pty Ltd
manufactures metal doors, sash, frames, moldings, and trims.
==================================================
C H I N A & H O N G K O N G & T A I W A N
==================================================
AMKOR TECHNOLOGY: Moody's Holds Junk Rating on US$190 Mln Notes
---------------------------------------------------------------
Moody's Investors Service affirmed Amkor Technology Inc.'s
corporate family (B2), long-term debt (B1 senior unsecured; Caa1
senior subordinated) and speculative-grade liquidity (SGL-2)
ratings and revised the outlook to positive.
The positive ratings outlook reflects Amkor's improved operating
and financial performance with continued free cash flow
generation against the backdrop of favorable industry
fundamentals. It also reflects Moody's expectations that Amkor
will continue to demonstrate a stable to improving credit
profile as a result of better operating and financial
discipline. Despite likely near-term consumer electronics end
market demand weakness, the positive outlook anticipates the
company will continue to benefit from a favorable business
environment for OSAT services, relatively stable pricing in
leading edge packaging solutions and continued demand for its
advanced products.
Ratings could experience upward pressure over the next 6-12
months if Amkor:
(1) continues to sustain its track record of maintaining
profitability and achieving anticipated financial and
operating performance resulting in operating margins of
12-15% over a semiconductor cycle;
(ii) continues to sustain a fixed cost structure such that it
is able to generate sufficient free cash flow allowing it
to build/maintain cash reserves to comfortably service
intermediate debt maturities through 2011;
(iii) repays debt prior to scheduled maturities; or
(iv) is able to source or convert a sufficient amount of
equity capital, such that debt to book capital is
consistent with mid/high single-B rated technology peers.
Over the past two years, the company's improved operating
performance has led to EBITDA growth, margin expansion, and
solid free cash flow generation applied to debt reduction (to
US$1.76 billion at year end 2007 down from US$2.14 billion in
2005), resulting in improved credit protection measures.
Financial leverage, as measured by debt to EBITDA, was 2.8x as
of December 2007, which is comparable to B1-rated industry
peers, thus lending additional support to the positive outlook.
In February 2008, Amkor retired US$88 million of senior notes,
further reducing leverage.
Liquidity remains good, with cash balances of US$410 million at
Dec. 31, 2007 plus access to an unused US$100 million secured
revolving credit facility maturing November 2009, for which
covenant compliance is expected over the next year. Combined
with our expectations of stable to improving annual free cash
flow (US$368 million on a Moody's adjusted basis for the twelve
months ended Dec. 31, 2007) and improved financial flexibility,
Amkor is well positioned to maintain leverage near current
levels. Given that Amkor is strongly positioned within the B2
rating category, the rating can tolerate temporary financial
leverage weakness as a result of possible fluctuations in EBITDA
over the next twelve months due to end market demand softness.
These ratings were affirmed and assessments revised:
-- Corporate Family Rating -- B2;
-- Probability of Default Rating -- B2;
-- US$1,061 Million Senior Unsecured Notes with various
maturities -- B1 (LGD-3, 44%);
-- US$190 Million 2.5% Convertible Senior Subordinated Notes
due 2011-Caa1 (LGD-6, 90%);
-- Speculative Grade Liquidity Rating -- SGL-2.
The ratings outlook is positive.
Headquartered in Chandler, Arizona, Amkor Technology, Inc.
(Nasdaq: AMKR) -- http://www.amkor.com/-- is a provider of
semiconductor assembly and test services. The company offers
semiconductor companies and electronics OEMs a complete set of
microelectronics design and manufacturing services.
Outside the United States, the company has wholly-owned
subsidiaries in Hong Kong, France, Japan, Singapore, the British
Cayman Islands and Netherlands.
ASIAN OPTOMETRIST: Liquidator Quits Post
----------------------------------------
On April 17, 2008, Lo Chi Yung stepped down as liquidator for
Asian Optometrist Association Limited, which is undergoing
liquidation.
BENQ CORP: First Quarter LCD Monitor Sales Up 41.6%
---------------------------------------------------
BenQ Corp. Inc. Asia Pacific reported first-quarter results for
its LCD monitor business. The results showed that unit
shipments of the company's LCD monitors increased by 41.6% in Q1
2008 compared to Q1 2007, significantly outperforming the
overall market, which grew by 15.6%. Just since the previous
quarter, Q4 2007, shipments increased by 24.8%, in contrast to
the broader market, which saw an increase of just 2.2% according
to the "Quarterly Desktop Monitor Shipment and Forecast Report"
released by the NPD Group's DisplaySearch.
BenQ's strong performance in Q1 was driven by booming demand for
the company's 19" widescreen and 20" widescreen LCD displays,
which BenQ has successfully targeted at mainstream market
segments in ASEAN countries. Meanwhile, BenQ's 15" widescreen
LCD display has also sold well, drawing on demand created as CRT
displays are phased out in emerging markets. Moreover, BenQ's
22" widescreen and 24" widescreen LCD displays are catering to
customer needs in more mature markets.
"By taking advantage of our core strengths in product
innovation, versatile marketing strategies and solid local
partnerships, BenQ has had a record quarter for LCD monitor
sales," said Danny Yao, director of BenQ Asia Pacific Corp.
The newly launched BenQ V2400W exemplifies BenQ's innovation
capabilities. It not only features HDMI support, 1080p full HD
support, a 2ms gray-to-gray response time, and 4000:1 dynamic
contrast ratio, but also BenQ's new Kinergy design language,
which evokes a sense of motion through static forms-also helping
the BenQ V2400W win design awards such as the 2008 if and red
dot. The off-center base stand and curved back plate are
unexpected yet appealing visual accents that help transform a
utilitarian high-tech device into an aesthetically pleasing
object.
"The commitment to advancing display technology and design is
what drives the collaboration between two BenQ Group companies-
BenQ and AU Optronics, which is one of the top three TFT-LCD
panel manufacturers worldwide. This close partnership is able
to provide the most demanding customers with high-performance
LCD monitors offering the fastest response time and distinctive
looks," Chang added. "As the proliferation of multimedia
content accelerates, customers are looking to BenQ for solutions
that enable a more enjoyable lifestyle experience. We are
confident that we are on track with fulfilling market needs and
reaffirm our fiscal year business targets."
About BenQ
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc.
-- http://www.benq.com/-- is principally engaged in
manufacturing developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, camera phones, and other products.
In June 2007 the company announced that it will change its name
to Qisda.
BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses. The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors. A
Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a
buyer for the company by the Dec. 31, 2006 deadline.
* * *
The Troubled Company Reporter-Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.
CAPITAL IDEA: Creditors' Proofs of Debt Due May 19
--------------------------------------------------
Creditors of Markview Limited are required to file their proofs
of debt by May 19, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 31, 2008.
The company's liquidator is:
Lit Kam Leung
Rooms 2004-6, 20TH Floor
Eastern Commercial Centre
397 Hennessy Road
Wanchai, Hong Kong
CHINA SOUTHERN: Expanding to Eight Overseas Routes This Year
------------------------------------------------------------
China Southern Airlines Co. will launched eight overseas routes
this year to boost its international network, Shanghai Daily
reports.
Chairman Liu Shaoyong, the report notes, said that 19% of the
airline's income comes from international routes, and it aim to
raise the figure to 25% or 30% in five years.
Mr. Shaoyong told the news agency that the airline is just
waiting for regulatory approval to open a route linking Beijing
and London in the year's fourth quarter.
According to the report, the airline recently accelerated
collaboration with other airlines to enhance its business by
signing a framework agreement with China Eastern Airlines in
January to cooperate in several areas, including ground handling
and operations as well as marketing and aircraft procurement.
The carrier also plans to open a cargo venture with Air France-
KLM Group this year, the Daily relates.
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.
COSMIC INT'L: Court to Hear Wind-Up Proceedings on May 21
---------------------------------------------------------
On March 13, 2008, Golden Take Limited, filed a petition to have
Cosmic International Digital Company Limited's operations wound
up.
The High Court of Hong Kong will convene at 9:30 a.m. on
May 21, 2008, to hear the petition.
The petitioners' solicitor are:
Messrs. Jimmie K.S. Wong & Partners
Double Building, 22nd Floor
22 Stanley Street
Central, Hong Kong
CS MANAGEMENT: Creditors' Proofs of Debt Due May 9
--------------------------------------------------
Creditors of CS Management Services Limited are required to file
their proofs of debt by May 9, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on April 8, 2008.
The company's liquidators are:
Yan Tat Wah
5/F., Dah Sing Life Building
99-105 Des Voeux
Road Central, Hong Kong
DANA CORP: Inks Separation Pact with CEO & COO Michael Burns
------------------------------------------------------------
Michael Burns, on Jan. 31, 2008, tendered his resignation as
Dana Holding Corporation's president, chief executive officer,
chief operating officer, and member of the company's board of
directors. In line with Mr. Burns' resignation, Dana disclosed
in a filing with the U.S. Securities and Exchange Commission
that it has entered into a separation agreement with Mr. Burns
on March 27, 2008, pursuant to which Mr. Burns' employment
terminated on March 31, 2008.
In accordance with the terms of the Separation Agreement,
Mr. Burns continued to receive his base salary through March 31.
The Agreement also provides that Mr. Burns is entitled to:
(a) participate in all medical, dental, prescription drug,
hospitalization, life insurance and other welfare
coverages and benefits in which he was participating
immediately prior to the Resignation Date through the
Termination Date;
(b) a previously paid and disclosed incentive award earned in
2007 under Dana's 2007 Annual Incentive Plan;
(c) a previously disclosed incentive award earned in 2007
under Dana's 2007 Executive Incentive Compensation Plan;
(d) an accrued benefit plus interest in full satisfaction of
the Supplemental Retirement Benefit of which he will
receive 60% in cash and 40% in the form of an allowed
general unsecured claim;
(e) a payment in the amount of $3,000,000 in consideration
for executing a Confidentiality, Non-Compete, Non-
Solicitation, Non-Disclosure and Non-Disparagement
Agreement with Dana Corporation;
(f) a payment in the amount of $150,000 as additional
consideration for his obligations and commitments under
the Agreement, the Non-Compete Agreement and a release of
claims against Dana; and
(g) benefits under the Consolidated Omnibus Budget
Reconciliation Act commencing as of the Termination Date;
(h) payment of attorneys' fees reasonably incurred since
Nov. 1, 2007, in connection with his employment
arrangements or the termination, provided that the fees
will not exceed $125,000; and
(i) all other or additional benefits to which Mr. Burns is
entitled in accordance with the applicable terms of any
applicable plan, program, agreement or arrangement of
Dana or any of its affiliates.
Under a Non-Compete Agreement, Mr. Burns has certain
confidentiality obligations and will be bound by certain
restrictive covenants, including one year non-competition and
non-solicitation restrictions that will prohibit him from
engaging in any business in competition with the businesses
conducted by Dana and from soliciting the customers and
employees of Dana. In addition, under the Release, Mr. Burns
will release any claims he might have against Dana.
A full-text copy of the Separation Agreement is available for
free at http://ResearchArchives.com/t/s?2ac9
About Dana Corp.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed $7,131,000,000 in total assets
and $7,665,000,000 in total debts resulting in a total
shareholders' deficit of $534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represented the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represented the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 74; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter on Feb. 12, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Dana Holding Corp. following the company's
emergence from Chapter 11 on Feb. 1, 2008. The outlook is
negative.
At the same time, Standard & Poor's assigned Dana's $650 million
asset-based loan revolving credit facility due 2013 a 'BB+'
rating (two notches higher than the corporate credit rating)
with a recovery rating of '1', indicating an expectation of very
high recovery in the event of a payment default.
In addition, S&P assigned a 'BB' bank loan rating to Dana's
$1.43 billion senior secured term loan with a recovery rating of
'2', indicating an expectation of average recovery.
DANA CORP: Ogre Wants Court to Overrule $1.3MM Claim Objection
--------------------------------------------------------------
Ogre Holdings, Inc., asks the U.S. Bankruptcy Court for the
Southern District of New York to overrule reorganized Dana
Corp.'s objection to Claim No. 14990 seeking damages as a result
of the rejection of a settlement agreement involving
environmental remediation at the Acraline Site in Tipton,
Indiana.
The Reorganized Debtors had objected to Claim No. 14990 and
asked the Court to estimate the Claim at $1,300,000.
"Dana's arguments against Claim No. 14990 are off the mark,"
Frank J. Deveau, Esq., at Sommer Barnard PC, in Indianapolis,
Indiana, says.
Mr. Deveau asserts refutes the Reorganized Debtors' assertions
that they are only liable for 77.5% of any remediation costs at
the Tipton Site. He says now that the Reorganized Debtors have
rejected the settlement agreement, they are completely
responsible for the contamination at the Property. Mr. Deveau
tells the Court that the only reason why Ogre Holdings consented
to the settlement agreement was because Dana Corporation, now
Dana Holding Corporation, agreed to manage the remediation, pay
the bulk of the costs on an ongoing basis, and seek
reimbursement of all expenses from their insurers.
However, Mr. Deveau contends, due to the rejection of the
settlement agreement, Dana will not manage the remediation, will
not pay any costs on an ongoing basis, and will not seek any
reimbursement from insurers.
Ogre Holdings asserts that the amount sought in Claim No. 14990
is well supported by the reports and evaluations prepared by
Cornerstone Environmental, Health and Safety, Inc., an
environmental consulting firm who has spent nine years dealing
with the environmental issues and challenges posed by the
Property. Mr. Deveau says the approach espoused by Cornerstone
will remediate the Property to residential level closure
standards and will enable Ogre Holdings to obtain a covenant not
to sue.
Ogre Holdings says it intends to engage in discovery with the
Reorganized Debtors to determine what insurance coverage was
available as of the Petition Date to reimburse remediation
expenses at the Property. Ogre Holdings adds that it will
depose the Reorganized Debtors' environmental consultant,
Environmental Resources Management, with regard to its
remediation plan for the Property. Ogre Holdings says it will
present evidence from Cornerstone, Dr. Vicky Keramida, an
environmental engineer, and a municipal well-field expert, at
trial to support Claim No. 14990.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed $7,131,000,000 in total assets
and $7,665,000,000 in total debts resulting in a total
shareholders' deficit of $534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represented the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represented the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 74; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter on Feb. 12, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Toledo, Ohio-based Dana Holding Corp. following
the company's emergence from Chapter 11 on Feb. 1, 2008. The
outlook is negative.
At the same time, Standard & Poor's assigned Dana's $650 million
asset-based loan revolving credit facility due 2013 a 'BB+'
rating (two notches higher than the corporate credit rating)
with a recovery rating of '1', indicating an expectation of very
high recovery in the event of a payment default.
In addition, S&P assigned a 'BB' bank loan rating to Dana's
$1.43 billion senior secured term loan with a recovery rating of
'2', indicating an expectation of average recovery.
E2E SUPPLY: Liquidator Quits Post
---------------------------------
On April 7, 2008, Men Yihu c/o Century Business Consultants
Limited stepped down as liquidator for E2E Supply (Hong Kong)
Limited, which is undergoing liquidation.
FIAT SPA: CEO Says Targets Meet Expectations Amid Poor Market
-------------------------------------------------------------
Sergio Marchionne, chief executive of Fiat SpA, said results for
the first quarter are completely in line with expectations
despite the poor state of the auto market, Reuters reports.
Mr. Marchionne, Reuters relates, confirmed the group's financial
targets for the year amid weaker sales. The Italian car marker
aims a higher trading profit of up to EUR3.6 billion (US$5.7
billion).
"Obviously, the market is taking it that conditions are worse
than they were before," an analyst was quoted by the paper as
saying.
The company will hold a conference call at 4:00 p.m. (CET)
today, April 24, 2008, to discuss the results for the first
quarter.
About Fiat
Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/--
(BIT:F) is principally engaged in the design, manufacture and
sale of automobiles, trucks, wheel loaders, excavators,
telehandlers, tractors and combine harvesters. Through its
subsidiaries, Fiat operates mainly in five business areas:
Automobiles, including sectors led by Maserati SpA, Ferrari SpA
and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and
Construction Equipment, which is led by Case New Holland Global
NV; Trucks and Commercial Vehicles, which is led by Iveco SpA;
Components and Production Systems, which includes the sectors
led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and
Fiat Powertrain Technologies SpA, and Other Businesses, which
includes the sectors led by Fiat Services SpA, a publishing
house Editrice La Stampa SpA and an advertising agency
Publikompass SpA.
Outside Europe, the company has subsidiaries in the United
States, Japan, India, China, Mexico, Brazil and Argentina, among
others.
* * *
As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries
Ba3 Corporate Family and Senior Unsecured ratings from Moody's
Investors Service, which said the outlook is positive.
The company carries Standard & Poor's Ratings Services' BB long-
term corporate credit rating. The company also carries B short-
term rating. S&P said the outlook is stable.
GREENTOWN CHINA: Records RMB923.4 Million Profit for 2007
---------------------------------------------------------
Greentown China Holdings Limited disclosed annual results for
the year ended December 31, 2007.
For the year ended December 31, 2007, the Group recorded revenue
of RMB5,738.8 million. Gross profit margin was 36%. Net profit
amounted to RMB923.4 million and earnings per share was
RMB63 cents.
The Board of Directors has resolved to recommend a final
dividend of HK32 cents per share for the year ended December 31,
2007.
Property Sales
For the year under review, revenue from property sales amounted
to RMB5,690 million. GFA recognized in the accounts from sales
reached 652,158 sqm. Average selling price increased by 8% from
RMB8,077 per sqm. in 2006 to RMB8,725 per sqm. in 2007. Sales
were mainly derived from Shanghai, Hangzhou and Beijing,
representing 33%, 21% and 21% of total sales respectively.
Development Strategy
The Group fully implemented the "Fine Product Strategy" and
embraced a "quality first" philosophy. The reputation the Group
has built for premium product line is well recognized in the
market:
- "Osmanthus City" represents large-scale residential
development
- "Chunjiang Huayue" represents high-rise apartment development
- "Deep Blue Plaza" represents elaborately fitted-out high-rise
apartment development
- "Rose Garden and Taohuayuan" represents villa development
The "Fine Product Strategy" serves to consolidate and further
improve the standards of its product and ensure that it
maintains the premium value of its brand name and continues to
achieve strong sales growth. Demonstrating the Group's
continuous efforts to explore and improve servicing quality, the
"Greentown Lifestyle Community Service System" was piloted at
Hangzhou Lanting Project. The System reflects an upgrade in the
main emphasis of Greentown's management towards a new focus on
providing services that satisfy the healthcare, cultural and
everyday needs of residents in its projects. As a result, the
System received "China City Administration Excellence Award"
with other government sponsored public initiatives during 2007.
After the launch to the market, it has stimulated sales of the
units in a direct way. During the year, there were a total of 70
projects under development, with an aggregate GFA of 5.38
million sqm.
Regarding the influence and growth of brand reputation, the
Group adhered firmly to its decision to further spread its
influence from the home base of Zhejiang Province to the dynamic
metropolitan region around the Yangtze River Delta. At the same
time, it continued to develop its presence in major cities
around the Bohai Rim, and endeavored to increase its market
share in Central China cities where it has undertaken projects
such as Changsha and Hefei, etc.
Forming strategic partnership is an appropriate decision to
maintain a balance between expansion in projects and control of
financial risks. In 2007, the Group established strategic
cooperation relationships with a number of outstanding
enterprises such as Haier Group, Zhejiang Energy Group, the
Wharf Group, Beijing Chengjian Corporation and Zhejiang Baoye
Construction Corporation. The Group acquired 21 projects
including Qianjiang New City project in Hangzhou, Xinjiangwan
City project in Shanghai, Yulan Garden and Yangming Road
projects in Shaoxing, National Games Village project in Jinan,
Changzhi Island project in Zhoushan, and Ningbo Crown Garden
through auction and tender by the government in open market, and
acquisition of equity interests from third parties; 78% of the
new land bank added to the Group in the year of 2007 was through
M&A or JV arrangement.
Commenting on the results, Mr. Shou Bainian, Executive Vice-
Chairman & Chief Executive Officer of Greentown said, "Decrease
in revenue was mainly attributable to relocation issues or
issues relating to the government approvals of 4 projects
(namely Shanghai East Sea Plaza, Hangzhou Taohuayuan, Shanghai
Rose Garden, Zhoushan Rose Garden) which were not delivered as
scheduled in the plan. Shanghai East Sea Plaza (pre-sale rate
100%) recorded sales of RMB1.95 billion at the end of 2007. The
Government has promised to solve the delay of relocation of
public road outside Shanghai East Sea Plaza by mid of the year.
Hangzhou Taohuayuan (pre-sale rate 78%) recorded sales of
RMB574 million at the end of 2007. The development plan was re-
submitted due to the new 90/70 Rule and has been approved. The
progress for Shanghai Rose Garden (pre-sale rate 53%; recorded
sales RMB468 million) and Zhoushan Rose Garden (not yet
launched) were delayed due to adjustment in design development
and both have been resolved."
Future Prospects
With ongoing rapid development of the country's economy, the
acceleration of urbanization trend, and the continuous growth of
market demand for homes that will offer improving lifestyle, the
Group trusts there is no fundamental change in the long-term
prospect of the real estate market in the PRC. It therefore
remains confident about the prospects for the future
development.
In 2007, the Group has covered 25 cities nationwide. The total
GFA from land bank accumulated amounted to 22.22 million sqm.,
which has laid solid groundwork for development for next 4 to 5
years. Mr. Shou added, "The Group will continue the "Homes for
generations to live in and A brand for centuries to remember"
philosophy. Leveraging on experienced management team, the Group
continues to build on its brand premium, deepen the "Fine
Product Strategy" and enhance the standard of its products and
services. At the same time, the Group will speed up development
process, thereby expediting turnover of assets and sure-footed
expansion in operation."
About Greentown China
Greentown China Holdings Limited is a residential property
developer in China. The company has operations in Shanghai,
Beijing and other selected cities across the country, including
Hefei in Anhui Province, Changsha in Hunan Province and Urumqi
in Xinjiang Uygur Autonomous Region. It develops residential
properties targeting middle- to higher-income residents in
China. The company has three main product series: villas, which
are typically independent houses with one or two storeys; low-
rise apartment buildings, which are typically 3 to 5 storeys,
and high-rise apartment buildings, which are typically higher
than six storeys. Many of its residential developments are
integrated residential complexes, which typically have a total
site area over 150,000 square meters, and offer a combination of
different product series with ancillary facilities, such as
clubhouses, kindergartens and grocery stores.
* * *
The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's
Ratings Services lowered its long-term corporate credit rating
on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The
outlook is stable. At the same time, Standard & Poor's lowered
the long-term debt ratings on the company's US$400 million
senior unsecured notes and its CNY2.31 billion convertible notes
to 'BB-' from 'BB'.
On September 18, 2007, Moody's Investors Service downgraded
Greentown China Holdings Ltd's corporate family and senior
unsecured bond ratings to Ba3 from Ba2. The outlook for both
ratings is stable. This concludes the ratings review initiated
on June 25, 2007.
GREENTOWN CHINA: Opens Two Apartment Complexes in Hangzhou
----------------------------------------------------------
Greentown China Holdings Limited has launched two new projects
this week namely Lijiang Apartment in east Hangzhou and Lanting
in Linping New City, north Hangzhou. Sales of the projects are
encouraging.
Located in east Hangzhou, Lijiang Apartment, was first launched
on March 24. 241 units out of 329 units were sold on the first
day launch, representing presales rate of 73% with sales revenue
amounted to over RMB400 million. Majority size is around 85-89
sqm while some are about 135-143 sqm, at an average price of
approximately RMB14,000/sqm, which is 20% higher than
neighbouring fully fitted apartments. Facing Qiantangjiang on
the south, the site is actually in Jiubao district, frontier of
the City's "East Expansion" plan. It is positioned as a new
urban residential center in combination of natural village and
city culture. It is also equipped with high-end clubhouse and
different facilities such as entertainment, leisure and
gymnasium that can thoroughly satisfy various needs of all
residents.
Meanwhile, the Group has launched Lanting in Linping New City,
north Hangzhou on 22 March. 52 units were sold in 2 days last
weekend. Saleable area totaled 6,038 sqm and revenue amounted
to RMB50 million.
Mr. Shou Bainian, Executive Vice-Chairman & Chief Executive
Officer of Greentown said, "In spite of volatile market
sentiment, encouraging sales from the two projects has once
again proved real market need for better housing standard as
well as customers' confidence in Greentown's brand and products.
Making masterpiece projects is always our commitment."
About Greentown China
Greentown China Holdings Limited is a residential property
developer in China. The company has operations in Shanghai,
Beijing and other selected cities across the country, including
Hefei in Anhui Province, Changsha in Hunan Province and Urumqi
in Xinjiang Uygur Autonomous Region. It develops residential
properties targeting middle- to higher-income residents in
China. The company has three main product series: villas, which
are typically independent houses with one or two storeys; low-
rise apartment buildings, which are typically 3 to 5 storeys,
and high-rise apartment buildings, which are typically higher
than six storeys. Many of its residential developments are
integrated residential complexes, which typically have a total
site area over 150,000 square meters, and offer a combination of
different product series with ancillary facilities, such as
clubhouses, kindergartens and grocery stores.
* * *
The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's
Ratings Services lowered its long-term corporate credit rating
on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The
outlook is stable. At the same time, Standard & Poor's lowered
the long-term debt ratings on the company's US$400 million
senior unsecured notes and its CNY2.31 billion convertible notes
to 'BB-' from 'BB'.
On September 18, 2007, Moody's Investors Service downgraded
Greentown China Holdings Ltd's corporate family and senior
unsecured bond ratings to Ba3 from Ba2. The outlook for both
ratings is stable. This concludes the ratings review initiated
on June 25, 2007.
HEXCEL CORP: S&P Holds BB Corp. Credit Rating with Pos. Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
aerospace supplier Hexcel Corp. to positive from stable. At the
same time, S&P affirmed ratings, including the 'BB' corporate
credit rating, on the company. About US$370 million of debt is
outstanding.
"The outlook revision is based on improving profitability and
credit protection measures, benefiting from growth in core
markets, operational leverage, and debt reduction, despite high
levels of capital spending," said Standard & Poor's credit
analyst Roman Szuper.
The ratings on Hexcel reflect participation in the cyclical and
competitive commercial aerospace industry, significant
investment in carbon fiber capacity needed to support increasing
jetliner production rates, and uncertainty arising from on
ongoing proxy contest over director nominations. Those factors
are partly offset by the company's position as the world's
largest manufacturer of advanced composite materials, generally
favorable market conditions, and financial profile that is
somewhat better than average for the rating.
The outcome of a proxy contest over director nominations remains
uncertain until the annual meeting of stockholders, which is
scheduled for May 8, 2008. OSS Capital, an activist hedge fund,
is proposing three nominees for the board of directors and is
opposing three members proposed by Hexcel. OSS, which owns 5.5%
of Hexcel's common stock, stated its main concern as Hexcel's
financial underperformance; as a consequence, OSS alleges that
shareholder value is not maximized. OSS offers no specific
actions to address its concerns, aside from its proposal for
board nominees.
The nominating and governance committee of Hexcel's board
offered to add one of the OSS candidates to the existing board,
but the offer was rejected. S&P will monitor the situation and
any potential adverse effect on credit quality.
Continued favorable conditions in core markets, ongoing gains in
operating efficiency, and further strengthening in credit
protection measures could lead to a ratings upgrade over the
next 12 months. S&P could revise the outlook to stable if the
slowing global economy has a greater-than-expected effect on the
company's sales and profits. Hexcel's financial policy or
strategic direction may change somewhat if OSS representatives
join the board of directors either through a proxy win or a
settlement with the company. S&P would assess the rating
outlook if Hexcel's financial policy becomes more aggressive.
Stamford, Conn.-based Hexcel is a leader in the composites
industry, producing lightweight, high-performance carbon fibers,
industrial fabrics, specialty reinforcements, carbon prepregs,
structural adhesives, honeycomb, and composite structures for
the commercial aerospace, defense and space, and industrial
sectors. The company concentrates on serving growing markets in
which it has competitive advantage.
HIGHNESS RESTAURANT: Creditors' Proofs of Debt Due May 17
---------------------------------------------------------
Creditors of Highness Restaurant, Limited are required to file
their proofs of debt by May 17, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on April 5, 2008.
The company's liquidator is:
Chow Kee Wai
Flat A, 9/F., Block 3, Garden Terrace
8A Old Peak Road, Hong Kong
HOGENT INTERNATIONAL: Liquidators Quit Post
-------------------------------------------
On April 10, 2008, Lai Kar Yan (Derek) and Darach E. Haughey
stepped down as liquidators for Hogent International Holding
Limited, which is undergoing liquidation.
JOYFUL DESIGN: Appoints New Liquidators
----------------------------------------
Members of Joyful Design Limited appointed Messrs. Lai Kar Yan
Derek and Darach E. Haughey as the company's liquidators.
The liquidators are:
Messrs. Lai Kar Yan Derek
Darach E. Haughey
One Pacific Place, 35th Floor
88 Queensway, Hong Kong
LANGWOOD LIMITED: Creditors' Proofs of Debt Due May 9
-----------------------------------------------------
Creditors of Langwood Limited are required to file their proofs
of debt by
May 9, 2008, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on April 10, 2008.
The company's liquidators are:
Cheng Chung Por Gordon
Ngan Lin Chun Esther
1902 MassMutual Tower, 38 Gloucester Rd.
Wanchai, Hong Kong
MARKVIEW LIMITED: Creditors' Proofs of Debt Due May 19
------------------------------------------------------
Creditors of Markview Limited are required to file their proofs
of debt by May 19, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on April 7, 2008.
The company's liquidator is:
Lam Ying Sui
Room 1005, Allied Kajima Building
138 Gloucester Road
Wanchai, Hong Kong
ORIENTAL POWER: Appoints New Liquidators
----------------------------------------
Members of Oriental Power Electronics Limited appointed Kwong
Chan Kin Hang, Danvil and Chan Man Yui as the company's
liquidators.
The liquidators are:
Chan Kin Hang, Danvil
Chan Man Yui
Ginza Square, 17th Floor,
565-567 Nathan Road
Kowloon, Hong Kong
PETROLEOS DE VENEZUELA: To Discuss Discrepancy in Output Figures
----------------------------------------------------------------
Dow Jones Newswires reports that the Venezuelan government will
discuss in May the discrepancy between Petroleos de Venezuela
SA's oil output figures and estimates from the Organization of
Petroleum Exporting Countries.
According to Dow Jones, Venezuelan Oil Minister Rafael Ramirez
said that Venezuela is proposing to OPEC that "other measures be
used to ascertain oil production."
The minister told reporters that "Venezuela has proposed that
another reference be sought."
Dow Jones notes that the Venezuelan government said that its
daily output is about 3.3 million barrels, but outside estimates
have placed Venezuela's actual production below official levels.
Venezuela was producing about 2.33 million barrels per day
"based on secondary sources," and the International Energy
Agency placed the nation's daily oil production at 2.44 million
barrels, published reports say, citing OPEC.
Minister Ramirez told Dow Jones that the Venezuelan government
is not in favor of using figures from "secondary sources" and
that such estimates came from sources connected to the
International Energy Agency, the energy watchdog of major
industrialized nations. Minister Ramirez described the
International Energy Agency as a "political agency biased toward
oil consuming countries," Dow Jones says.
Minister Ramirez also told Dow Jones that OPEC Secretary General
Abdalla Salem el-Badri was scheduled to visit Venezuela in May
and that the Venezuelan government will "take him to all our
terminals and present him with a summary of all the ships and
tankers that depart every day."
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: Paying Interests to Investors on Time
-------------------------------------------------------------
Petroleos de Venezuela S.A. has performed in a responsible,
efficient and transparent manner in the financial field by
paying interests on the planned dates for bonds with maturity
dates of 2017, 2027, and 2037, the company stated in a media
release.
PDVSA bonds are fixed income investment instruments that pay
interests every six months. PDVSA calculates interests in U.S.
dollars and gives them to the institutions having under custody
investors' bonds in Venezuela and overseas.
Banks in Venezuela can directly pay interests to their clients
overseas or issue checks in dollars made payable to the
beneficiaries.
Another way banks can apply to pay interests to investors is to
buy dollars at the official exchange rate and hand in their
value in bolivars. Venezuela's exchange agencies can also open
investment bank accounts for investors that can hold products in
dollars or bolivars. The latter is only possible in Venezuela.
PDVSA is now analyzing new payment possibilities to accumulate
or transfer bonds' interests or capital payments to the client's
preferred exchange agency or financial institution. To
accomplish this, PDVSA is working with the National Securities
Commission, the Venezuelan Securities Fund, the Venezuelan
Association of Exchange Agencies, and the Caracas Stock Market.
In this way, PDVSA can evaluate new mechanisms that will make it
easier to collect bonds' interests, which will expedite this
process and will benefit Venezuelans who invest and trust on the
financial soundness of the country's main industry.
In addition, PDVSA is motivating Venezuelans to save by
investing in non-traditional financial instruments, thereby
benefiting small investors and promoting productive investment.
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.
PORTAL SOFTWARE: Commences Liquidation Proceedings
--------------------------------------------------
Portal Software's (Asia Pacific Limited) members agreed on April
8, 2008, to voluntarily liquidate the company's business. The
company has appointed Rainier Hok Chung Lam and John James
Toohey to facilitate the sale of its assets.
The liquidators are:
Rainier Hok Chung Lam
John James Toohey
Prince's Building 22nd Floor
Central, Hong Kong
RICON INTERNATIONAL: Creditors' Proofs of Debt Due May 23
---------------------------------------------------------
Creditors of Ricon International Limited are required to file
their proofs of debt by May 23, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on April 11, 2008.
The company's liquidator is:
Kong Chi How, Johnson
25/F, Wing On Centre
111 Conbaught Road
Central, Hong Kong
SILVER ELEGANT: Court to Hear Wind-Up Proceedings on May 14
-----------------------------------------------------------
On March 12, 2008, Silver Elegant Limited, filed a petition to
have UPS Parcel Delivery Service Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
May 14, 2008, to hear the petition.
The petitioners' solicitor is:
Wilkinson & Grist
Prince's Building, 6th Floor
Charter Road, Central Hong Kong
TALENT LEADER: Commences Liquidation Proceedings
------------------------------------------------
Talent Leader Entertainment & Productions' members agreed on
April 8, 2008, to voluntarily liquidate the company's business.
The company has appointed Yiu Cho Yan to facilitate the sale of
its assets.
The liquidator is:
Yiu Cho Yan
Yiu Cho Yan CPA
Room 1702, 17/F.,
Asian House, 1 Hennessy Road
Wanchai, Hong Kong
TIGG (HOLDINGS): Creditors' Proofs of Debt Due May 19
-----------------------------------------------------
Creditors of TIGG (Holdings) Limited are required to file their
proofs of debt by May 19, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on April 14, 2008.
The company's liquidator is:
Au Yan Alfred
24/F., Hang Wai Commercial Building
231-233 Queen's Road East
Wanchai, Hong Kong
WAH KONG: Court to Hear Wind-Up Proceedings on May 7
----------------------------------------------------------
On March 12, 2008, Dah Sing Bank Limited, filed a petition to
have Wah Kong Paper Products Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
may 7, 2008, to hear the petition.
The petitioners' solicitor is:
K.B. Chau & Co.
Wing Lung Bank Building, 16th Floor
45 Des Vouex Road
Central, Hong Kong
WELLBERY COMPANY: Commences Liquidation Proceedings
---------------------------------------------------
Wellbery Company Limited's members agreed on April 12, 2008, to
voluntarily liquidate the company's business. The company has
appointed Wong Lai Yin to facilitate the sale of its assets.
The liquidator is:
Wong Lai Yin
Room 1206, Haleson Bldg.
1 Jubilee Street
Central, Hong Kong
XINHAO GAS: 2007 Profit Up 34% on Increasing Energy Demand
-----------------------------------------------------------
Xinao Gas Holdings Limited's 2007 profit rose 34% to after
expanding its operations to benefit from the increase of energy
demand in China, Bloomberg reports.
The report relates that company net income increased to
CNY507.5 million (US$73 million), or CNY0.503 a share, from a
revised CNY379.6 million, or CNY0.387, a year earlier.
Ying Lou of Bloomberg writes that Xinao Gas has expanded the
number of city gas projects to 67 as the government promotes
cleaner-burning fuels.
Meanwhile, the company's sales rose to CNY5.76 billion from
CNY3.4 billion, the same report relates. The company plans to
increase sales by as much as 50% to 2.2 billion cubic meters
this year as demand for the cleaner-burning fuel grows,
Financial Director Yu Jianchao told the news agency.
Xinao Gas will pay a final dividend of 13.42 Hong Kong cents per
share, compared with 7.75 Hong Kong cents a year earlier, the
report adds.
About Xinao Gas
Based in Hong Kong, Xinao Gas Holdings Limited -- is an
investment holding company. The company, along with its
subsidiaries, is principally engaged in the investment in, and
the operation and management of, gas pipeline infrastructure and
the sale and distribution of piped and bottled gas in the
People's Republic of China. Xinao Gas Holdings Limited operates
in four divisions: gas connection, sales of piped gas,
distributions of bottled liquefied petroleum gas and sales of
gas appliances. As of December 31, 2005, more than 90% of its
assets are located in the People's Republic of China, including
Hong Kong. The company has a total of 7,268 kilometers pipeline
network, serving 1.79 million residential households and 4,041
commercial/industrial users (with a total designed daily
capacity of 2,495,479 cubic meters).
* * *
The Troubled Company Reporter-Asia Pacific reported on Aug. 18,
2006, that Moody's Investors Service affirmed XinAo Gas' Ba1
senior unsecured debt rating with a negative outlook.
Standard & Poor's gave the company's long-term local and foreign
issuer credit a BB+ rating on July 22, 2005.
ZTE CORPORATION: Fitch Holds 'BB+' ID Rating With Stable Outlook
----------------------------------------------------------------
Fitch Ratings affirmed ZTE Corporation Long-term foreign
currency and local currency Issuer Default Ratings at 'BB+'.
The rating Outlook remains Stable.
The affirmation reflects the company's strong market position -
ZTE is the second-largest Chinese telecommunications equipment
vendor, with a comprehensive product and technology portfolio
which is becoming increasingly important given the ongoing
fixed-mobile convergence trend. Furthermore, its low cost base,
especially in manufacturing and R&D, facilitates a competitive
advantage enabling its products and services to be priced 20%-
30% below its global competitors.
Its ratings are also underpinned by its strong financial
profile, with net adjusted debt/EBITDAR of 1.1x at FYE07. ZTE's
capital structure still remains conservative, although its total
debt increased by 147% to CNY6.5 billion at FYE07 and, for the
first time, turned into a net debt position of CNY179 million at
FYE07, due to a 366% surge in short-term debts.
Fitch believes developments in FY07 provided positive support to
ZTE's ratings - a 50% increase in revenue, with very strong
performance in its wireless infrastructure and handset sectors,
and a breakthrough in international markets which contributed
58% of the company's revenue in FY07.
The ratings are constrained by the company's low operating
margin and the relatively high proportion of new network
contracts in its portfolio. The ratings are also constrained by
its relatively small revenue scale when compared to its global
peers in the telecommunications equipment sector. A related
concern is that ZTE's free cash flow remains negative, mainly in
consequence of a substantial working capital investment
requirement as revenue expands rapidly.
Positive rating drivers include a revenue scale more comparable
with its international competitors (US$6 billion is viewed as a
minimum, compared with ZTE's US4.8 billion in FYE07), double
digit EBITDAR margins (versus 8.7% in FY07), and generating
positive FCF on a sustainable basis.
Negative rating drivers include a substantial decline in
operating margins due to fierce competition, and further
leveraging above and beyond 2x net adjusted debt/EBITDAR on a
sustainable basis.
Listed on the stock exchanges of Shanghai and Hong Kong, ZTE is
a leading telecommunications equipment vendor with an annual
revenue base of CNY34.8 billion in FY07. ZTE provides a range
of telecommunications systems and equipment, including wireless,
wireline switch and access equipment, optical and data
communications equipment, handsets, and telecommunications
software systems and services.
Headquartered in Shenzhen, China, ZTE Corp's principal
activities are the production and sale of general system and
communication terminal equipments. The group operates both in
the domestic and international market.
=========
I N D I A
=========
DECCAN AVIATION: Appoints Dr. Vijay Mallya as Chairman
------------------------------------------------------
In a merger between Deccan Aviation and Kingfisher Airlines, it
was decided between the two companies to appoint Dr. Vijay
Mallya as Chairman of the Board of Directors taking over from
Lt. Gen. N S Narahari. Lt. Gen. Narahari will continue to
remain as Director on the Board of company.
Capt. Gopinath, said, "Lt. Gen Narahari has been the Chairman of
Deccan since the inception in 1997, providing the moral moorings
and leadership to the board and the company and steering Deccan
to commanding heights and revolutionizing the aviation landscape
of the country. We acknowledge his contribution and guidance."
He also added "to enable successful merger between Kingfisher
and Deccan and effective realization of both cost saving
synergies and revenue enhancement, Dr. Vijay Mallya was chosen
to lead the Board of Directors."
As reported by the Troubled Company Reporter - Asia Pacific on
April 23, 2008, the merger between the two companies will be
finalized on June 1, 2008.
Bangalore, India-based Deccan Aviation Limited --
http://www.deccanair.com/-- is a charter aviation company in
the private sector. Deccan Aviation provides company charters,
tourism, medical evacuation, off-shore logistics and a host of
other services.
In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the
INR3.41 billion loss incurred in FY 2006.
ICICI BANK: To Cutback Hiring This Year
---------------------------------------
ICICI Bank plans to reduce its recruitment this year to a
maximum of 9,000 from 16,000 new recruits last year, Latha
Venkatesh of CNBNC-TV18 writes for moneycontrol.com.
Earlier, the bank was recruiting for the future, but now it will
only recruit for the present. It is hiring 2,500 campus
recruits, plus 1,000 from Manipal. About 6,000 more candidates
are to fill up the 15% attrition rate, which totals to 9,000
recruits instead of the 16,000 recruits, the report added.
As to number of jobs, ICICI said it will only will cut casual
and outsourced labour like watchmen. There will be no
promotions and hikes will be restricted to a little over the
inflation rate. Bonus comes under discretionary pay and can't
be given when spreads are under pressure, the report says.
The bank also declared that it is not cost cutting, but
eliminating waste from stationery to travel to electricity, Ms.
Venkatesh relates.
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
placed on Feb. 5, 2003.
IFCI LTD: Unit Defers Plan to Sell Equity Stake to Cargill
----------------------------------------------------------
Asset Care Enterprises Ltd., which is a 36% owned by IFCI Ltd.,
deferred its plans to sell up to 49% equity stake to Cargill
Inc.'s unit, Trading Markets reports citing the company's chief
executive.
"IFCI Ltd. and other shareholders wanted a partner to give
strong direction to the company but the Reserve Bank of India
was not comfortable (with a private equity firm buying such a
large stake in the company)," the Trading Markets quoted Jayant
Dang as saying.
According to the report, Punjab National Bank owns a 26% stake
in Asset Care, which reconstructs bad debt. Other shareholders
are state-run Life Insurance Corp of India, Tourism Finance
Corp. of India, Bank of Baroda and United Bank of India.
IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector. The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services. Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.
Non-project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project. Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 3, 2007, India's Credit Analysis & Research Ltd. retained
a CARE D rating to IFCI's Long & Medium Term Debt aggregating
INR91.36 crore. The amount represents the outstanding non-
restructured amount under the Bonds series, which have been
rated by CARE.
CANARA BANK: Fitch Holds 'BB' Foreign Currency Bond Rating
----------------------------------------------------------
Fitch Ratings affirmed India-based Canara Bank's ratings at
Long-term foreign currency IDR 'BBB-' with Stable Outlook,
Individual 'C/D', Support '2', Support Rating Floor 'BBB-' and
National Long-term 'AAA(ind)' with Stable Outlook. Its upper
tier 2 and hybrid tier 1 bonds are affirmed at Long-term foreign
currency 'BB'. Meanwhile, a Short-term foreign currency Issuer
Default rating of 'F3' is assigned to Canara Bank.
The ratings reflect Canara Bank's fairly strong financial
profile among Indian banks, its size as the fourth-largest
domestic bank by assets with a national presence, as well as its
above-average capitalisation and solvency.
Fitch expects Canara Bank's net interest margin to remain under
pressure over the next 12 to 18 months as it undertakes measures
to rebalance its portfolio by a natural run down of its high-
cost bulk deposits and low-yielding corporate loans. Fee income
is low (FY ended March 2007: 9% of total operating income) and,
though the bank is trying to grow fee income from retail
banking, Fitch expects that it could take time to gain traction
in view of competition from new private banks. Profitability
could be impacted by Canara Bank's provision for pension costs
under AS 15 and also from its provision for the value
depreciation of AFS securities portfolio if interest rates were
to rise further.
Canara Bank's current equity should be able to support business
growth and absorb capital charge for operational risk under
Basel II; however, Fitch notes that revaluation reserves
represented 22% of equity in FY07. Nevertheless, Fitch takes
comfort that with the government holding 73% of (statutory
minimum: 51%) Canara Bank, the bank has ample headroom to
augment its Tier 1 capital besides having recourse to hybrid
capital in the interim.
Canara Bank's gross non-performing loan (FY07: 1.5%, 9M08: 1.5%)
ratio compares favourably with the system median (FY07: 2.6%)
and has improved due to strong recoveries from written-off
accounts. However, specific loan loss coverage ratio (FY07:
30%, 9M08: 38%) remains lower than the system's (FY07: 61%)
because a majority of its NPLs are in sub-standard category
where, unlike other large banks in India, Canara Bank only
provides coverage close to the regulatory minimum.
With a network of 2,644 branches, Canara Bank has a pan-India
branch network, although south and west India account for 38%
and 24% of deposits, respectively. Through joint ventures and
nine subsidiaries, Canara Bank also engages in asset management,
factoring, venture capital, primary dealerships, and life and
non-life insurance; these activities' contribution to profit
remains limited.
Headquartered in Bangalore, India, Canara Bank --
http://www.canbankindia.com-- provides services to a diverse
clientele group with a range of subsidiaries and sponsored
institutions. The bank services include networked automated
teller machines, anywhere banking, telebanking, remote access
terminals Internet, and mobile banking and debit card. The
bank's Merchant Banking Division handles assignments as
arrangers/lead manager/co-manager/manager to the
offer/advisor/share valuator. Bancassurance arm of the Bank has
tie up arrangements in both life and non-life insurance
segments. Corporate Cash Management Services network of the Bank
provides services related to local and upcountry cheque
collection, bulk cheques collection and zero balance account
facility. Executor, Trustee and Taxation Services of the bank
provides services, such as debenture trusteeship, will and
executorship, trusteeship, personal tax assistance and power of
attorney services. Its Agricultural Consultancy Services handled
60 projects during the fiscal year ended March 31, 2006.
=================
I N D O N E S I A
=================
BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29
-------------------------------------------------------------
PT Bank Rakyat Indonesia Tbk will hold its first quarter 2008
Earnings Presentation on Tuesday, April 29, 2008.
As reported by the Troubled Company Reporter-Asia Pacific on
April 1, 2008, the bank is targeting a 10-15% rise in its
2008 net profit.
For the quarter ended March 31, 2007, Bank Rakyat reported net
income of IDR1.2 trillion.
The TCR-AP also reported on March 31, 2008, that Bank Rakyat's
2007 net profit increased 13.6% to IDR4.84 trillion from IDR4.26
trillion in 2006, after net interest margins declined slightly.
Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- services comprise
Savings, Credits and Syariah. In addition, the bank divides its
financial and business services into three groups: Business
Services, consisting of bank guarantees, bank clearance,
automatic teller machines and safe deposit boxes; Financial
Services, consisting of bill payments, CEPEBRI, INKASO, deposit
acceptance, online transactions and transfers, and Other
Services, consisting of tax and fine payments, donations,
Western Union and zakat contributions. During the year ended
Dec. 31, 2005, the bank had one branch office in Cayman Islands
and two representative offices in New York and Hong Kong,
respectively.
The Troubled Company Reporter-Asia Pacific reported on Oct. 19,
2007, that Moody's Investors Service raised Bank Rakyat's
foreign currency long-term debt rating to Ba2 from Ba3 and its
foreign currency long-term deposit ratings to B1 from B2.
Fitch Ratings affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA+(idn)',
* Individual 'C/D', and
* Support '4'.
BANK DANAMON: 1st Quarter 2008 Net Profit Reaches IDR563 Billion
----------------------------------------------------------------
PT Bank Danamon Indonesia Tbk. (Danamon) reported a 30% year-on-
year loan growth for the first quarter 2008, supported by strong
loan expansions in the mass market and wholesale customer
segments. During the past one year period, Danamon's loans grew
by IDR12.8 trillion, reaching IDR55.9 trillion as of March 31,
2008, improving its Loan-to-Deposit Ratio (LDR) to 89.4%.
Danamon's net profit after tax reached IDR563 billion, up 17%
yearon- year from IDR482 billion for the first quarter of 2007.
"We are pleased to see a continuing momentum in our business
growth over the past several quarters," said Sebastian Paredes,
President Director of Danamon. "Despite the global and domestic
economic challenges, we are confident that we will be able to
achieve our growth targets for the year," continued Sebastian.
Taking into account its long-term funding, LDR at the end of the
first quarter of 2008 was 74.2%.
"Our mass market loans, which comprise of micro lending and
consumer auto financing loans grew by 32% in the span of one
year," stated Sebastian. "This growth was supported by continued
expansion in Danamon Simpan Pinjam loans which increased by 39%
to IDR9.1 trillion. This micro lending segment now accounts for
more than 16% of Danamon's total loans at the end of March
2008,"
Sebastian continued. Meanwhile, auto loans through Adira Finance
increased significantly by 21% year-on-year to IDR13.8 trillion
supported by the strong growth in motorcycle financing. "Another
engine of our business growth has been the Consumer Mass Market,
or CMM, which offers personal loans to salaried customers. Our
loans to this segment has almost tripled year-on-year with
outstanding loans growing progressively to IDR1.2 billion,"
Sebastian explained.
Danamon's Small and Medium Enterprise (SME) loans grew by 8% to
IDR9.1 trillion, representing 16% of total loans at the end of
the first quarter 2008. Retail loans increased by 39% to IDR4.9
trillion on the back of strong growth in mortgage and card
businesses.
"Our wholesale segment, which is mainly comprised of Commercial
and Corporate loans also contributed well to our loan growth
over the past several quarters. Our corporate loans grew by 56%
year-on-year to IDR8.6 trillion partly driven by trade
financing; commercial loans expanded by 35% to IDR7.5 trillion
contributed by strong growth in asset based financing,"
explained Sebastian. As per March 31, 2008 Danamon's wholesale
segment made up 31% of its total loan book.
"Danamon's Gross NPL declined to 2.3% as of March 31, 2008 from
3.2% a year ago, while Net NPL remained zero with a loss-
coverage ratio of 156.4%, after taking into account collateral
value," said Vera Eve Lim, Chief Financial Officer and Director
of Danamon. At 19.7%, Danamon's Capital Adequacy Ratio (CAR)
remained well above regulatory requirements.
For the first three months of the 2008 financial year, Danamon
reported a Net Profit After Tax (NPAT) of IDR563 billion, up 17%
for the same period last year. "This increase was largely driven
by strong growth in net interest income and lower cost of
credit. Our net interest income rose by 19% to IDR1.98 trillion
in the first quarter 2008 on the back of continued loan growth
and expanded margin. Interest income rose by 7% to IDR3,15
trillion in line with strong loan expansion," Vera continued. At
the end of the first quarter 2008, Danamon's ROAA and ROAE stood
at 2.5% and 20.6%, respectively.
"In line with our organic growth plan this year, we are making
strong progress in our branch network expansion, having opened 6
new conventional and retail banking branches as well as 115 new
DSP branches in the first three months of this year," said
Sebastian. In 2008, Danamon plans open 78 new conventional and
retail banking branches, 41 Adira branches and 236 Danamon
Simpan Pinjam (DSP) branch offices across Indonesia. "Up to the
end of March, we have hired over 2,000 new employees from our
plan of 5,000 for the year," Sebastian continued.
Danamon's total interest-bearing funding increased by 10% to
IDR73.8 trillion from IDR67.0 trillion a year earlier supported
by strong growth in low cost deposits and long-term funding.
Current and saving accounts grew by 35% and 18% to IDR6.8
trillion and IDR11.5 trillion, respectively, and both accounted
for 25% of total funding. Meanwhile, long-term funding, which
include senior bonds, subordinated debt, securities sold under
repurchase agreements and other borrowings, made up another 16%
of funding. Following the successful issuance of IDR1.5 trillion
senior bonds in May 2007, long-term funding rose by 24% to
IDR11.8 trillion as of March 31, 2008. This long-term funding
initiative is part of the bank's strategy to minimize the asset
liability maturity mismatch as well as to diversify the funding
sources.
According to Reuters, analysts expect Danamon to report a full-
year net profit of IDR2.71 trillion in 2008, or an increase of
about 28 percent from last year's net profit of IDR2.12
trillion.
About Bank Danamon
Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking. Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services. The bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers. DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income. Bank Danamon is
supported by 86 domestic branch offices, 325 domestic supporting
branch offices, 25 domestic cash office, 739 supporting branches
for DSP, six personal banking branch offices, 10 syariah branch
offices and one overseas branch.
The Troubled Company Reporter-Asia Pacific reported on Feb. 25,
2008, Fitch Ratings took rating actions on PT Bank Danamon.
Fitch revised the outlook to stable from positive. The detailed
ratings are:
-- LTFC IDR upgraded to 'BB' from 'BB-'/Outlook revised to
Stable from Positive;
-- Support rating upgraded to '3' from '4';
-- Support Rating Floor upgraded to 'BB-' from 'B';
-- Individual rating affirmed at C/D;
-- ST IDR affirmed at 'B';
-- National Long-term affirmed at 'AA(idn)'.
On Oct. 19, 2007, Moody's Investors Service raised the foreign
currency long-term debt and foreign currency long-term deposit
ratings of PT Bank Danamon Indonesia Tbk:
-- The foreign currency subordinated debt rating was raised
to Ba2 from Ba3.
-- Foreign currency long-term deposit rating to B1 from B2.
-- The Not Prime foreign currency short-term deposit rating,
Baa3 global local currency deposit rating and D BFSR were
unaffected.
INDOFOOD SUKSES: To Issue Five-Year Bonds to Repay Debt
-------------------------------------------------------
PT Indofood Sukses Makmur Tbk plans to raise IDR1.5 trillion by
selling five-year bonds by June, Harry Suhartono writes for
Reuters.
According to Mr. Suhartono, Indofood said that most of the
proceeds from the rupiah-dominated bonds would be used to repay
debt which matures in June.
Mr. Suhartono quotes Indofood as saying, "We will use around 82
percent, or about 1.23 trillion rupiah, to repay our bonds
issued in 2003 which will mature on June 10. The rest will be
used for working capital."
The report says Indofood has appointed DBS Vickers Securities,
Danareksa Sekuritas, ING Securities Indonesia, Kim Eng
Securities, and Mandiri Sekuritas as underwriters and managers
for the bond issue.
About Indofood Sukses
PT Indofood Sukses Makmur Tbk (Indofood) --
http://www.indofood.co.id/-- is Indonesia's premier processed
foods company. Its products, including instant noodles, wheat
flour, branded edible oils and fats, baby foods, snack foods,
food seasoning, lead domestic market shares. Indofood is
currently the largest instant noodles manufacturer and the
largest flour miller in the world, with installed capacities of
approximately 13 billion packs and 3.6 million tons per annum,
respectively. Indofood's products are distributed mainly
through its subsidiaries, including Indomarco, independent
distributors, as well as some cooperatives, which bring the
Company's products to more than 150,000 retail outlets in the
country. Total employees as of December 1999 were 42,172. A
combination of shrinking profits, escalating costs, losses,
competition and a declining rupiah prompted the Company to cut
around 2,000 or 4.4% of its workforce and slash 40 products from
its range in 2005.
In 2005, Indofood's total outstanding debt fell to
IDR6.8 trillion from IDR7.9 trillion in 2004. The United States
dollar-denominated debts also fell to US$190.6 million in the
same period from US$317.4 million in 2004.
Indofood has bought back US$166.3 million (IDR1.55 trillion) of
its US$280 million (IDR2.61 trillion) Eurobonds due in 2007.
The company also plans to redeem all the outstanding balance of
the Eurobonds this year.
The Troubled Company Reporter-Asia Pacific reported on
July 19, 2006, that Standard & Poor's Ratings Services withdrew
its 'B' corporate credit rating on Indofood at the company's
request.
PERUSAHAAN GAS: Will Supply Additional Natural Gas to PLN
---------------------------------------------------------
PT Perusahaan Gas Negara said it will supply 50 million cubic
feet per day of natural gas for two years from July to PT
Perusahaan Listrik Negara, Reuters reports.
"PGN will sign a contract with PLN to supply an additional 150
million cubic feet per day for five years, also from July this
year," PGN's president director Sutikno told Reuters, Muklis Ali
writes.
"PLN has agreed to pay $5.6 per million British thermal units,"
he said, the report adds.
According to Reuters, Sutikno said the gas supply from PGN will
save PLN around 2 million kilolitre or 12.5 million barrels of
diesel oil per year. Muklis Ali relates that PGN will supply
the gas from gas fields operated by U.S. oil major
ConocoPhillips and Pertamina in South Sumatra.
Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk--
http://www.pgn.co.id/-- is a gas and energy company that is
comprised of two core businesses: distribution and transmission.
For distribution, PGN signs long-term supply agreements with
upstream operators, which give the company scheduled and
reliable gas volumes and fixed gas prices. These volumes are
subsequently sold to commercial and industrial customers under
gas sales agreements. Under these agreements, sales volumes are
take-or-pay and the gas pricing is fixed and in US dollar. On
the transmission business, PGN ships gas on behalf of the
upstream suppliers under a fixed US dollar tariff with ship-or-
pay volumes agreements. The company is 59.4% owned by the
Government of Indonesia.
The Troubled Company Reporter-Asia Pacific reported on Dec. 26,
2007, that Standard & Poor's Ratings Services raised its
corporate credit ratings on PT Perusahaan Gas Negara (Persero)
Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable.
At the same time, Standard & Poor's has raised the rating on the
senior unsecured debt issued by PGN Euro Finance 2003 Ltd.
(guaranteed by PGN) to 'BB-' from 'B+'.
On Jan. 18, 2007, Moody's Investors Service affirmed the Ba2
corporate family rating of PT Perusahaan Gas Negara (Persero)
Tbk. At the same time, Moody's affirmed the Ba3 debt ratings of
PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The
ratings outlook is stable. This affirmation followed the recent
announcement of a delay in the South Sumatera West Java gas
commercialization.
On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency
assigned these ratings to PT Perusahaan Gas Negara Tbk:
-- Long-term foreign currency Issuer Default Rating 'BB-';
-- Long-term local currency IDR 'BB-'; and
-- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes
due 2014 and IDR1.35-trillion notes due 2013 guaranteed
=========
J A P A N
=========
ALITALIA SPA: OAO Aeroflot to Resume Talks Over Italy's Stake
-------------------------------------------------------------
OAO Aeroflot will resume negotiations with Alitalia S.p.A. over
the sale of the government's 49.9% stake in the Italian carrier,
Reuters reports, citing Russian President Vladimir Putin.
Mr. Putin, after speaking with Aeroflot chairman Alexander
Zurabov, said the Russian carrier is ready to resume contact
with Alitalia, Reuters says.
Mr. Putin noted that Alitalia's condition is complicated, citing
the airline's debt and profitability problems as well as the
need to convince the Italian government and the unions to accept
it possible offer, Reuters relates.
Aeroflot CEO Valery Okulov, however, told Russia Today that the
carrier is not planning to submit a second bid for Alitalia.
"I believe we gained useful experience by participating in an
Alitalia privatization tender, but the information we have does
not inspire sufficient optimism to participate in the project
for a second time."
Italy's Prime Minister-elect Silvio Berlusconi welcomed
Aeroflot's possible offer, adding that they are open to all
options to revive Alitalia as along as the it remains the
national carrier headquartered in the country.
As reported in the TCR-Europe on April 3, 2008, an Aeroflot
spokesman said it may submit a proposal to acquire Italy's stake
in Alitalia S.p.A. if talks between Air France-KLM SA and the
national carrier's unions fail. Aeroflot and financial backer
UniCredit S.p.A. had joined the preliminary rounds of bidding
for Alitalia, but withdrew.
Air France has withdrawn its bid for Alitalia, but said it may
resume talks with the carrier and its unions. Alitalia chairman
Aristide Police has recommended the resumption of negotiations
between the parties.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina and Japan.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Finance Minister Tommaso Padoa-Schioppa had said that if
the sale to Air France fails, Alitalia may seek protection from
creditors and the government would appoint a special
commissioner to initiate bankruptcy proceedings.
BOWNE & CO: Improved Cash Flow Cues Moody's Ba2 Rating Upgrade
--------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating
of Bowne & Co., Inc. to Ba2 from Ba3 and the rating on its
convertible subordinated notes to B1 from B2. In conjunction
with the upgrade, Moody's changed the ratings outlook to stable
from positive.
The action follows substantial improvement in free cash flow
generation (free cash flow-to-debt exceeded 20% for 2007), some
margin improvement, and a moderation of the share repurchase
program. Furthermore, the company has developed adequate
business diversification to withstand the downturn in capital
markets, in Moody's view. The stable outlook assumes that Bowne
will continue to generate free cash flow in excess of 5% of
debt, margins will remain above 12% (all metrics as per Moody's
standard adjustments), and the company will maintain strong
liquidity. The current ratings level could tolerate continued
cash financed acquisitions in line with the historic pattern
(less than
$50 million purchase price) provided leverage remains around 3
times debt-to-EBITDA (as per Moody's standard adjustments) and
margins do not contract.
Bowne & Co., Inc.
-- Corporate Family Rating, Upgraded to Ba2 from Ba3
-- Probability of Default Rating, Upgraded to Ba2 from Ba3
-- Subordinate Convertible Bonds, Upgraded to B1 from B2
-- Outlook, Changed To Stable From Positive
Bowne's strong liquidity, moderate leverage (2.9 times debt-to-
EBITDA for 2007, as per Moody's standard adjustments, including
treatment of pension obligations as debt), and considerable
stream of recurring revenue support its Ba2 corporate family
rating. The rating also reflects the seasonality and volatility
of its free cash flow, its exposure to the capital markets
cycle, some vulnerability to the reduction in demand for printed
products, and some execution and acquisition risk.
Bondholders could put the $75 million convertible notes to Bowne
for cash in October of 2008. Moody's believes Bowne has
adequate liquidity from its balance sheet cash (approximately
$100 million as of 2007 year end) and $150 million revolving
credit facility to satisfy this potential obligation, should
bondholders exercise this option.
Headquartered in New York, New York, Bowne & Co., Inc. provides
services to help companies produce and manage their investor
communications, including regulatory and compliance documents,
and also markets business communications,personalized
statements, enrollment books and sales and marketing collateral.
Its annual revenue is approximately $850 million.
Headquartered in New York City, Bowne & Co. Inc. (NYSE: BNE)
-- http://www.bowne.com/-- provides financial, marketing and
business communications services around the world. Bowne has
3,200 employees in 60 offices around the globe. The company's
Latin American offices are located in Argentina, Brazil, Mexico,
Japan and Portugal.
FUJI HEAVY: Sees Long-term Benefits With Toyota Tie-up
------------------------------------------------------
Fuji Heavy Industries Ltd. said deeper ties with Toyota Motor
Corp. may have long-term benefits that could help the company
as it faces a tough year for earnings, Edwina Gibbs of Reuters
reports.
According to the report, Fuji Heavy President Ikuo Mori
expressed concern on the appreciating yen which eats into
overseas earnings as well as the expected increase of prices of
materials.
Mr. Mori hopes, Reuters says, that with Toyota's help, the
company will be able to focus its resources on developing
"sporty" cars and to gain access to Toyota's advanced
technology.
Fuji Heavy, makers of the Subaru brand, expects to book an
operating profit of JPY40 billion for fiscal 2007, Reuters
notes.
Toyota doubled its stake in Fuji Heavy to 16.5%, giving the
company the funds to build a new domestic plant, Reuters
relates.
About Fuji Heavy
Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. --
http://www.fhi.co.jp-- is manufacturing company engaged in four
business segments. The Automobile segment is engaged in the
manufacturing, repair and sale of light vehicles, compact cars
and standard vehicles. The Industrial Machinery segment offers
motors, machinery for agricultural, forestry and constructional
use, as well as other machinery and equipment. The Aerospace
segment offers airplanes, aerospace-related equipment and parts.
The Others segment is engaged in the manufacturing, repair and
sale of dustcarts, bus-related parts and houses, as well as the
leasing of real estates. The Company distributes its products
in both domestic and overseas markets. As of March 31, 2007,
Fuji Heavy Industries has 109 subsidiaries and nine associated
companies. The Company has a global network.
Standard & Poor's Ratings Services lowered its long-term credit
rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based
on diminished prospects for a recovery in profitability and cash
flow over the near term along with intensifying competition in
the global auto industry.
GAP INC: Fitch Affirms IDR at BB+ on Considerable Liquidity
-----------------------------------------------------------
Fitch has affirmed its ratings on The Gap, Inc, (NYSE: GPS) as:
-- Issuer Default Rating at 'BB+';
-- Senior unsecured notes at 'BB+'.
The Rating Outlook is revised to Stable from Negative. The
rating action affects approximately US$188 million of debt.
Gap's rating reflects its considerable liquidity as reflected in
cash of US$1.9 billion against debt of US$188 million at the
fiscal year ending Feb. 2, 2008. The company is expected to be
debt free after Mar. 1, 2009. Gap has been a strong cash
generator. Free cash flow (operating cash flow less capital
expenditures and dividends) has been positive in the past seven
years ranging from a low of US$301 million in the poor retail
year of 2001 to as high as US$1.8 billion in 2003. Fitch
expects that the company will remain free cash flow positive in
the intermediate term.
The rating also encompasses the significant pressure placed on
the top line given poor same store sales trends which has been
negative in each of the past three fiscal years. The negative
trend continues into the current fiscal year with -6% in
February 2008 and -18% in March 2008. The slide in top line
performance is of concern as it has long term negative
implications for the business.
The company has significantly scaled back new store additions
domestically, which means that top line growth is reliant on
same store sales growth, international expansion and online
operations. Additionally, the macro-economic environment and
management turnover at the brand level - particularly at Old
Navy - is not favorable towards a reversal of these trends.
Nevertheless, there is additional focus on return on invested
capital at the store level, inventory discipline, and cost
containment.
Management is committed to maintaining significant cash balances
at a current minimum of US$1.2 billion. Fitch expects that Gap
will maintain on a clean balance sheet, keep liquidity high, and
will pull back on discretionary spending as needed. Gap's minor
debt burden and strong liquidity underpin the rating.
Despite a weak economy and expected sales decline, the Stable
Outlook is based on the company's ability to comfortably meet
its capital and investment requirements as well as the
expectation that liquidity will remain strong and remaining debt
will be repaid by Mar. 1, 2009. The risk to note-holders is
low.
For the fiscal year ended Feb. 2, 2008, the company continued to
experience sales declines of 1.1% to US$15.8 billion. The EBIT
margin improved 60 basis points to 8.3% due to tighter inventory
management and more regular price selling. Free cash flow was
up US$734 million to US$1.1 billion helped by the improvement in
margins and working capital. As a result, both FFO fixed charge
coverage of 2.2 times (x) and total adjusted debt/EBITDAR
improved of 3x was an improvement over the previous year.
GOODWILL GROUP: United Technology Plans No Hostile Bid
------------------------------------------------------
United Technology Holdings Co. Ltd. said it would not increase
its stake in Goodwill Group Inc. without the firm's consent,
Taiga Uranaka and Noriyuki Hirata write for Reuters.
United Technology CEO Yoichi Wakayama told Reuters in an
interview, "We have no intention of increasing our stake or
blocking its capital raising," referring to plans by Goodwill to
issue new shares to U.S. fund Cerberus Capital Management LP.
Mr. Wakayama said he wanted deeper ties with Goodwill, possibly
including a larger stake, but would like to do it "in a friendly
manner", once Goodwill's recovery was on a solid footing with
United Technology's support, relates Reuters.
Tie-up Proposal
Mr. Wakayama told Reuters his firm can turn around Goodwill by
revamping its business practices.
Mr. Wakayama is quoted by Reuters as saying, "It had bad
management. Various problems occurred due to the former
management, and there were no problems with its workers or
clients."
United Technology, according to Mr. Wakayama, is currently in
talks with Goodwill to work out a potential partnership and
wants to present a plan at Goodwill's shareholder's meeting,
relates Reuters.
Goodwill, states Reuters, has asked United Technology not to buy
additional stake without its consent and has asked for its
support for the deal with Cerberus and Morgan Stanley when
shareholders vote in May.
About Goodwill Group
Japan-based The Goodwill Group, Inc. --
http://www.goodwill.com/gwg/english/index.html
-- is a involved in five business segments. The Staffing
segment offers recruitment services for technicians, senior
workers and others. The Human Resources-related segment
provides employee-hiring support services to corporate clients,
counseling services to workers and outplacement services to
retired and retiring workers. The Nursing-care and Medical
Support segment is engaged in the provision of home-care
services, care services in facilities and dental examination
services at home, as well as the sale of nursing-care goods and
equipment, among others. The Senior Residence and Restaurant
segment operates nursing home under the name THE BARRINGTON
HOUSE, and also operates restaurant in both domestic and
overseas markets. The Others segment is engaged in the
planning, designing and management of pet care facilities, the
operation of pet care shops, the operation and management of
nurseries, the provision of baby-sitting services and others.
Troubled Company Reporter-Asia Pacific reported on June 14,
2007, that The Goodwill Group is thinking of selling its home
nursing-care services division after the Japanese government
banned it from renewing its licenses due to its involvement in a
fraud scandal. The article conveys that the firm allegedly
obtained some of the licenses for nursing-care service operators
certified under a public insurance program through fraudulent
applications, including those with an inflated number of
employees.
TAIHEIYO CEMENT: Warns 20% Profit Decline at U.S. Unit
------------------------------------------------------
Taiheiyo Cement Corp. expects profit at its U.S. unit
to fall as much as 20 percent this year due to the
severe housing market crisis there, Masumi Suga of
Bloomberg News reports.
Operating profit at the U.S. arm accounts for a third
of the Tokyo-based company's earnings, the report says.
Bloomberg relates that the company is looking to overseas
markets such as the U.S. and China as stricter building
rules, higher coal prices and less road construction
at home pose a threat on earnings.
Taiheiyo is scheduled to report fiscal annual earnings
on May 13.
About Taiheiyo Cement
Headquartered in Tokyo, Japan, Taiheiyo Cement Corporation --
http://www.taiheiyo-cement.co.jp/-- formed by the 1998 merger
of Chichibu Onoda Cement and Nihon Cement, is Japan's leading
cement manufacturer. Taiheiyo's other interests include
minerals and aggregates, construction materials (ready-mix
concrete and concrete products), and real estate. The company
also operates materials recycling businesses that include the
conversion of sewage sludge from power plants. Taiheiyo
provides real estate management services in the Tokyo area.
* * *
As of April 23, 2008, Taiheiyo Cement Corporation continues
to carry Standard & Poor's Rating Services' "BB+" long-term
foreign and local issuer credit ratings. The outlook is
stable.
=========
K O R E A
=========
TAEYANG METAL: Hwang Gyu Hond Resigns as Co-CEO
-----------------------------------------------
Taeyang Metal Industrial Co. Limited's Co-Chief Executive
Officer Hwang Gyu Hond resigned from the company, effective
March 31, 2008, Reuters reports.
According to the report, Co-CEO Han Wu Sam continues his duty as
Chief Executive Officer.
With headquarters and factory in Gyeonggi Province, Korea,
Taeyang Metal Industrial Co., Ltd. --
http://www.taeyangmetal.com/-- is engaged in the provision of
cold-forged automobile products. The company produces two main
products: cold forging products and fasteners, including
cylinder head bolts, con rod bolts, bearing cap bolts, crank
pulley bolts, tie rod pins, ball studs, plug bolts, fly wheel
bolts, hub bolts and nuts, hex-stud bolts, hexagon socket head
bolts, special bolts and nuts, hose bend screws, self-clinching
screws, pins, stator bolts and refrigerator compressor bolts,
and cold forging products for automobiles, cylinder head bolts,
bearing cap bolts, con rod bolts, pulley lock bolts, hub bolts,
tie bolts, washer assemblies hex bolts, flange bolts and stud
bolts.
Korea Ratings gave the company's commercial papers a B+ rating
on Sept. 22, 2006.
WOORI TECHNOLOGY: Makes Capital Injection Into Subsidiary
---------------------------------------------------------
Woori Technology Inc. has acquired 820,000 newly issued shares
of its wholly owned subsidiary, a Korea-based robot contents
developer, for KRW4,100 million, Reuters reports.
According to the report, this company move is aimed to improve
the financial structure of its unit.
Headquartered in Seoul, Korea, Woori Technology Inc. --
http://www.wooritg.com/-- manufactures electronic equipment.
The company operates its business through information
communication and system divisions. Its information
communication business division provides audio visual (AV)
receivers, set-top boxes (Stubs), board virtual machine
environment (VME), digital versatile disc (DVD) players and
other related products. Its system business division offers
distributed control systems (DCS), monitoring devices used in
nuclear power plants and power management systems. In addition,
the company provides robots used in home, cleaning and guiding.
Korea Ratings gave the company's KRW2.20 billion straight bond
private offering a B- rating with a stable outlook.
===============
M A L A Y S I A
===============
THERMADYNE HOLDINGS: Moody's Lifts CF Rating to B3 from Caa1
------------------------------------------------------------
Moody's Investors Service upgraded Thermadyne Holdings
Corporation's corporate family rating to B3 from Caa1 and the
rating on the $175 million 9.25% senior unsecured subordinated
notes due 2014 to Caa1 from Caa2. The outlook is stable. The
rating action is predicated on the significant improvement of
Thermadyne's operating performance and financial metrics in 2007
and Moody's expectation of an adequate financial profile for the
rating category in the near term.
Moody's recognized Thermadyne's successful turnaround in 2007,
illustrated by material margins improvement and working capital
efficiencies. The company also generated positive free cash
flow for the first time since 2003 and significantly improved
its financial metrics. Total debt/EBITDA, as adjusted by
Moody's, declined to 4.4 times as of Dec. 31, 2007 from 6.2
times as of Dec. 31, 2006, driven by both debt reduction and
EBITDA enhancement.
While the cash flow improvement is recent -- a large portion of
free cash flow was generated in the fourth quarter of 2007 - and
the end market demand could weaken in the short to intermediate
term, affecting the company's cyclical operations, Moody's
believes that Thermadyne's financial profile and liquidity will
remain commensurate with the rating category, hence the stable
outlook.
Ratings upgraded:
-- Corporate Family Rating to B3
-- Probability of Default Rating to B3
-- Rating of Senior Subordinated Notes due 2014 to Caa1
(LGD assessment revised to LGD5/70% from LGD5/72%)
Thermadyne is a global designer and manufacturer of cutting and
welding equipment. In 2007, its revenues totaled approximately
$494 million.
====================
N E W Z E A L A N D
====================
AIR NEW ZEALAND: Fiscal 2007 Profit to Fall Due to Oil Hike
-----------------------------------------------------------
Tracy Withers of Bloomberg reports that Air New Zealand Ltd.
said full-year profit will fall as much as 23% because of
soaring jet fuel prices.
In a statement with the New Zealand Exchange, Air New Zealand
says it expects earnings before taxation and unusual items is
between NZ$200 and NZ$220 million in the year ending June 30,
relates Ms. Withers.
Air New Zealand, according to Ms. Withers, has increased fares
which Chief Executive Officer Rob Fyfe has said may cut demand.
Bloomberg quotes Air New Zealand as saying that rising fuel
costs "will have a significant impact, requiring continued
review of our pricing, network and cost-base."
March 2008 Passenger Traffic
Meanwhile, in a filing with the NZX, the company said passengers
carried across the group were 4.5% higher in March 2008 than in
March 2007.
According to the filing, the North American routes continue to
show high seasonal demand with the load factor at 84.5% for
March. Air New Zealand is to increase its direct services
between Auckland and Vancouver from three to four a week from
early December to meet the strong customer demand.
The passenger load factor for Asia/Japan/UK remained at 80.2% in
March but for the financial year-to-date loads are up 4.9
percentage points for this route group.
In the Domestic market, Air New Zealand increased its capacity
by 10.5% compared to March last year and passenger numbers grew
at 3.5% on the same month last year. The load factor for the
year-to-date is 0.7 of a percentage point lower than that
achieved in same period in 2007 as market capacity growth is
greater than stimulated demand.
About Air New Zealand
Based in Auckland, New Zealand, Air New Zealand Ltd. is the
country's flag air carrier, with domestic and international
passenger and freight operations, and an aviation engineering
business. Air New Zealand flies to the United States, United
Kingdom, Canada, Europe and other Asian cities.
Moody's Investors Service, on Sept. 4, 2007, affirmed Air New
Zealand Limited's Ba1 senior unsecured issuer rating. At the
same time, it changed the outlook on the rating to positive
from stable.
ANZ carries Standard & Poor's Ratings Services' 'BB' corporate
credit rating, with stable outlook.
ASSET BUILDERS: Proofs of Claim Must Be Filed by April 30
---------------------------------------------------------
On March 31, 2008, the shareholder of Asset Builders
International Limited resolved to liquidate the company and
appoint Christopher Robert Ross Horton as liquidator.
Creditors are required to file their proofs of claim by
April 30, 2008, or to be excluded from the benefit of any
distribution.
The liquidator can be reached at:
Asset Builders International Limited (in liquidation)
c/o Horton Price Limited
PO Box 9125
Newmarket, Auckland
Telephone: (09) 366 3700
Facsimile: (09) 366 7276
ATOMIX LTD: High Court to Hear Wind-Up Petition on April 28
-----------------------------------------------------------
On March 10, 2008, ACP Media Limited filed an application in the
High Court at Christchurch to liquidate Atomix Limited.
The High Court at Christchurch will hear the application on
April 28, 2008, at 10:00 a.m.
The plaintiff's solicitor is:
Kevin Patrick McDonald
Kevin McDonald & Associates, Solicitors
Takapuna Towers, Level 11
19-21 Como Street
Takapuna, Auckland
Telephone: (09) 486 6827
Facsimile: (09) 486 5082
BEDS-R-US WELLINGTON: Deadline to File Claims is Today
------------------------------------------------------
Edward Jansen and Brian Walshe were appointed joint and several
liquidators of Beds-R-Us Wellington Limited (in liquidation).
The liquidation commenced on March 14, 2008.
The liquidators fixed April 24, 2008, as the last day for
creditors to make their claims and to establish any priority
their claims may have under section 312 of the Companies Act
1993.
The liquidators can be reached at:
PO Box 30568
Lower Hutt
Telephone: (04) 569 9069
BENTON DENTED CARRIERS: Court to Hear Wind-Up Petition Today
------------------------------------------------------------
On December 4, 2007, the Commissioner of Inland Revenue filed an
application in the High Court at Auckland to liquidate Benton
Dented Carriers Limited.
The High Court at Auckland will hear the petition today,
April 24, 2008, at 10:45 a.m.
The CIR's solicitor is:
Sandra Joy North
Inland Revenue Department, Legal and Technical Services
17 Putney Way
PO Box 76198
Manukau, Auckland 2241
Telephone: (09) 985 7274
Facsimile: (09) 985 9473
BONSAI PRODUCTIONS: Creditors Must File Claims by April 25
----------------------------------------------------------
On March 10, 2008, the High Court at Auckland appointed Stephen
Mark Lawrence and Anthony John McCullagh of Horwath Corporate
(Auckland) Limited, as joint and several liquidators of Bonsai
Productions Limited (in liquidation).
The liquidators have fixed April 25, 2008, as the last day for
creditors to make their claims and to establish any priority
their claims may have, or to be excluded from the benefit of any
distribution.
The liquidators can be reached at:
Horwath Corporate (Auckland) Limited
PO Box 3678
Auckland 1140
Telephone: (09) 306 7425
Facsimile: (09) 302 0536
Attention: Shelley Palman
CGNZ LTD: Shareholders Appoint Joint Liquidators
------------------------------------------------
Brian Mayo-Smith, chartered accountant, and Shaun Neil Adams,
insolvency practitioner, both of BDO Spicers, Auckland, were
appointed joint liquidators of CGNZ Limited by a special
resolution of the shareholders on April 1, 2008.
Creditors are required to file a proof of claim by May 12, 2008,
or to be excluded from the benefit of any distribution.
The liquidators can be reached at:
BDO Spicers
Rifleman Tower, Level 8
120 Albert Street
Auckland 1010
Telephone: (09) 373 9053
Facsimile: (09) 303 2830
CORVARA INVESTMENTS: Faces Bidvest's Wind-Up Petition
-----------------------------------------------------
On December 13, 2007, Bidvest New Zealand Limited formerly known
as Crean Foodservice Limited filed an application in the High
Court at Auckland to wind up the operations of Corvara
Investments Limited, which is trading as Amphora Howick.
The High Court at Auckland will hear the petition on Friday,
May 2, 2008, at 10:45 a.m.
The plaintiff's solicitor is:
L. A. Clement
PO Box 36636
Merivale, Christchurch
Telephone: (03) 354 2920
Facsimile: (03) 354 2930
EDGEWATER ADVENTURES: Creditors Must File Claims by April 28
------------------------------------------------------------
David Donald Crichton and Keiran Anne Horne, chartered
accountants of Crichton Horne & Associates Limited, were
appointed liquidators of Edgewater Adventures Lake Wanaka
Limited (in liquidation) by order of the High Court on March 27,
2008.
The liquidators fixed April 28, 2008, as the last day for
creditors to make their claims and to establish any priority
their claims may have, or to be excluded from the benefit of any
distribution.
The liquidators can be reached at:
Crichton Horne & Associates Limited
Old Library Chambers
109 Cambridge Terrace
PO Box 3978
Christchurch
Telephone: (03) 379 7929
FOXTON HOTEL: Liquidators Set May 27 Claims Bar Date
----------------------------------------------------
John Howard Ross Fisk, chartered accountant, and Craig Alexander
Sanson, insolvency practitioner, were appointed joint and
several liquidators of Foxton Hotel Limited by the High Court on
March 28, 2008.
The liquidators fixed May 27, 2008, as the last day for
creditors of the company to make their claims and to establish
any priority their claims may have, or to be excluded from the
benefit of any distribution.
Claims are to be forwarded to:
Foxton Hotel Limited (in liquidation)
c/o PricewaterhouseCoopers
113-119 The Terrace
PO Box 243
Wellington
Telephone: (04) 462 7044
Facsimile: (04) 462 7492
Attention: Carl P. Messerschmidt
LORRAINE ADAMS DESIGN: Court Enters Liquidation Order
-----------------------------------------------------
Lorraine Adams Design Limited was ordered by the High Court at
Christchurch on March 3, 2008, to be put into liquidation.
Paul William Gerrard Jenkins and Wayne John Deuchrass were
appointed liquidators jointly and severally.
The liquidators can be reached at:
Insolvency Management Limited
148 Victoria Street, Level 1
PO Box 13401
Christchurch
MENSWORKS GROOMING: Joint Liquidators Appointed
-----------------------------------------------
Mensworks Grooming Limited was placed into liquidation by
a special resolution of shareholders dated March 28, 2008.
Gareth Russel Hoole and Kevin David Pitfield were appointed
joint and several liquidators.
The deadline to file claims expired on April 17, 2008.
Inquiries may be directed to:
Staples Rodway Limited, Chartered Accountants
PO Box 3899
Auckland
Telephone: (09) 309 0463
NO.1 AUTOMART: Faces Aztech Automotive's Wind-Up Petition
---------------------------------------------------------
On March 12, 2008, Aztech Automotive Limited filed an
application in the High Court at Hamilton to liquidate NO.1
Automart Limited.
The application will be heard before the High Court at
Hamilton on May 5, 2008, at 10:45 a.m.
The plaintiff's solicitor is:
James Alexander MacGillivray
Tompkins Wake, Lawyers
Westpac House
430 Victoria Street
Hamilton
PEDLARS RECYCLERS: Joint Liquidators Appointed
----------------------------------------------
Edward Christian Jansen and Brian Joseph Walshe were appointed
joint and several liquidators of Pedlars Recyclers Limited (in
liquidation).
The liquidation commenced on March 18, 2008. The last day to
file claims was April 17, 2008.
The liquidator can be reached at:
PO Box 30568
Lower Hutt
Telephone: (04) 569 9069
RAYDA LTD: Court to Hear Wind-Up Petition on May 26
---------------------------------------------------
On March 26, 2008, Teresa Victoria Edmonds filed an application
in the High Court at Palmerston North to put Rayda Limited into
liquidation.
The application will be heard before the High Court at
Palmerston North on Wednesday, May 26, 2008, at 10:00 a.m.
The plaintiff's solicitor is:
Richard Williams
Petone Law, Solicitors
5 Britannia Street, Suite 6
Petone
SJG CONSTRUCTION: Joint Liquidators Appointed
---------------------------------------------
SJG Construction Limited was ordered by the High Court at
Dunedin on March 27, 2008, to be put into liquidation.
Iain Andrew Nellies and Paul William Gerrard Jenkins were
appointed liquidators jointly and severally.
The liquidators can be reached at:
Insolvency Management Limited
Burns House, Level 3
10 George Street
PO Box 1058
Dunedin
SKELLERUP HOLDINGS: Eyes U.S. Acquisition After Sale of 4 Units
---------------------------------------------------------------
Tamsyn Parkers of the New Zealand Herald reports that Skellerup
Holdings Ltd. plans to acquire or establish a third U.S.
business leg by the end of this year after selling four non-core
business units for NZ$12.1 million.
Skellerup managing director Donald Stewart, after the sale of
its roofing, conveyor, containment and Batavian Rubber
businesses to Tiri Group, is quoted by NZ Herald as saying, "We
have got ourselves to the stage where we want to do something in
the United States, an acquisition is a possibility, equally we
would consider forming our own business."
According to the report, Skellerup already has two businesses in
the U.S., the Masport Pumps business and a dairy rubber
distributions business.
Mr. Stewart told NZ Herald that the new business leg was likely
to involve rubber for the industrial sector.
NZ Herald relates that Mr. Stewart was not concerned about the
current state of the U.S. economy as it already had around
NZ$6 million worth of business which could be distributed
through the third potential U.S. company. Mr. Stewart added
that this move would not involve the closure or job losses in
other parts of the business.
NZ Herald notes that last year Skellerup announced 100 job
losses from its Christchurch plant after increased pressure on
exports from the high New Zealand dollar.
Mr. Stewart said the restructure, which cost the company
NZ$17.9 million, had mainly been completed now and although
there may be later moves to consolidate sites, it was happy with
the number of staff it now had, relates NZ Herald.
About Skellerup Holdings
Skellerup Holdings Ltd., formerly Skellmax Industries Limited,
is a New Zealand-based manufacturer, distributor, marketer and
exporter of rubber and foam products, footwear and vacuum pumps
for agricultural and industrial customers. The Company operates
in two industry segments. The Agri segment manufactures and
distributes dairy rubberware, related rural products and dairy
vacuum equipment for the global agriculture market. The
Industrial segment manufactures and distributes industrial
rubber and related polymer components together with industrial
vacuum equipment for a variety of industrial applications
worldwide. During the fiscal year ended June 30, 2006, the
Company acquired Thorndon Rubber Co. Limited, Rubber Services
Limited, Gulf Rubber Australia Pty. Limited, Gulf Rubber NZ
Limited, Jenco Products Pty. Limited and Ambic Equipment
Limited.
The Troubled Company Reporter-Asia Pacific reported on Aug. 20,
2007, that Skellerup Holdings Ltd. did not pay a dividend for
the 2007 year and is undergoing a strategic process that
involves significant restructuring costs, and as a consequence
is prudent to ensure that adequate resources are available to
support these initiatives.
STAR SCREENPRINT: Members Appoint Joint Liquidators
---------------------------------------------------
Star Screenprint Limited commenced liquidation proceedings on
April 1, 2008, when members appointed Grant Robert Graham and
Brendon James Gibson joint and several liquidators.
Creditors have until today, April 24, 2008, to file their proofs
of claim or be excluded from the benefit of any distribution.
The liquidators can be reached at:
KordaMentha
Tower Centre, Level 16
45 Queen Street (PO Box 982)
Auckland
Telephone: (09) 307 7865
Facsimile: (09) 377 7794
SUITE CENTRE: Joint Liquidators Appointed
-----------------------------------------
The High Court at Christchurch ordered the liquidation of Suite
Centre Limited, pursuant to section 241(2)(c) of the Companies
Act 1993, on March 3, 2008.
Paul William Gerrard Jenkins and Wayne John Deuchrass were
appointed liquidators jointly and severally.
The liquidators can be reached at:
Insolvency Management Limited
148 Victoria Street, Level 1
PO Box 13401
Christchurch
WANAKA GAS: Court Enters Liquidation Order
------------------------------------------
The High Court at Dunedin ordered the liquidation of Wanaka Gas
Limited on March 27, 2008.
Iain Andrew Nellies and Paul William Gerrard Jenkins were
appointed liquidators jointly and severally.
The liquidators can be reached at:
Insolvency Management Limited
Burns House, Level 3
10 George Street
PO Box 1058
Dunedin
=====================
P H I L I P P I N E S
=====================
CHIQUITA BRANDS: Gets Sued Over Colombia Deaths
-----------------------------------------------
Chiquita Brands International Inc. faces seven cases
seeking billions in potential damages for deaths caused by
Colombian terrorists, leaving the future of the company
uncertain, Dan Monk writes for the Business Courier of
Cincinatti.
Chiquita Brands admitted in March 2007 that it paid Colombian
terrorist organizations. The company explained that the
payments were made by a former unit due to threats to the safety
of its workers.
As previously reported in the Troubled Company Reporter-Asia
Pacific, Colombian terrorist victims have filed in the U.S.
District Court in Manhattan an almost US$8-billion lawsuit
against Chiquita Brands for paying the terrorist group The
United Self-Defense Forces of Colombia. The U.S. federal court
has ordered Chiquita Brands to pay US$25 million in fines for
paying millions of dollars to Colombian terrorist groups from
1997 to 2004. Colombian officials, however, are not happy with
the settlement asserting that the fine was small compared to
other cases.
The seventh lawsuit was that filed by families of five American
missionaries killed by Marxist rebels a decade ago, Bloomberg
News relates. Four of the cases were filed on behalf of about
600 Colombian FARC guerilla group victims, seeking at least
US$11.8 billion in damages, Bloomberg adds. Mr. Monk points out
that one of the seven cases is seeking US$10.6 billion worth in
damages.
The murders may lead to damages tailspin for Chiquita, according
to Erik Larson and Joshua Goodman of Bloomberg.
The company continues to deny responsibility for the deaths of
the terrorists' victims. In a recent court filing, Chiquita
Brands' lawyers claims that the company had no knowledge of the
alleged murders. The company's Spokesman, Ed Loyd assured
shareholders that the company will take actions against the
claims.
An article at the Los Angeles Times noted, "Maybe it's true that
Chiquita couldn't have done business in rebel territory without
negotiating with the rebels, but that was its choice. And if
dealing with terrorists is a legitimate business expense, then
so is compensation for terrorists' victims..."
About Chiquita Brands
Headquartered in Cincinnati, Ohio, Chiquita Brands International
Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer
and distributor of high-quality fresh and value-added food
products. The company markets its products under the Chiquita(R)
and Fresh Express(R) premium brands and other related
trademarks. Chiquita employs approximately 24,000 people
operating in more than 70 countries worldwide.
Chiquita, with revenues of approximately US$4.7 billion for the
fiscal year ended Dec. 31, 2007, employs approximately 25,000
people operating in more than 70 countries worldwide, including
Belgium, Columbia, Germany, Panama, Philippines, among others.
* * *
As reported in the Troubled Company Reporter on March 5, 2008,
Moody's Investors Service affirmed Chiquita Brands International
Inc.'s US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5), LGD % to 82% from 89%; and US$225 million 8.875%
senior unsecured notes due 2015 at Caa2 (LGD5), LGD % to 82%
from 89%.
SBARRO INC: Earns US$5.1 Million in Fourth Quarter Ended Dec. 30
----------------------------------------------------------------
Sbarro Inc. reported net income of $5.1 million for the quarter
ended Dec. 30, 2007, as compared to $11.5 million for the
quarter ended Dec. 31, 2006. The decrease in net income
resulted from a decline in company store sales in the quarter as
well as higher commodity cost.
Revenues were $104.7 million for the quarter ended Dec. 30,
2007, as compared to $97.3 million for the quarter ended Dec.
31, 2006. The fourth quarter of 2007 consisted of thirteen weeks
as compared to twelve weeks in the fourth quarter of 2006. The
one week difference in 2007 generated revenues of approximately
$6.5 million.
During the quarter the company had a same store sales decrease
of 1.8% as consumers reacted to economic headwinds. This
decline in same store sales was offset in part by revenue
generated from new company owned stores opened in 2007 as well
as an increase in revenues from the company's franchised
restaurants. The company's franchised restaurants experienced
same store sales growth of 2.1% for its domestic franchised
stores and 12.8% for its international franchised stores as well
as increased revenue generated from new franchised stores opened
in 2007.
EBITDA, as calculated in accordance with the terms of the
company's bank credit agreement, was $23.9 million for the
fourth quarter ended Dec. 30, 2007, as compared to $24.7 million
for the fourth quarter ended Dec. 31, 2006. The one week
difference in 2007 generated EBITDA of approximately $900,000.
EBITDA decreased in the quarter as a result of both the decline
in company store sales and the increased commodity cost offset
in part by a reversal of corporate bonuses which had been
accrued in prior quarters and was reversed as a result of not
meeting the EBITDA thresholds contained in the plan.
Year to Date Financial Results
On Jan. 31, 2007, MidOcean SBR Acquisition Corp., an indirect
subsidiary of MidOcean SBR Holdings LLC, an affiliate of
MidOcean Partners III L.P., and certain of its affiliates,
merged with and into the Sbarro Inc. in exchange for
consideration of $450 million in cash, subject to certain
adjustments. As a result of the merger, the company is now an
indirect wholly owned subsidiary of MidOcean SBR Holdings.
The company has reported operating results and its financial
position for all periods presented as of and prior to Jan. 30,
2007 (prior to completion of the merger) as those of the
predecessor company and for all periods from and after Jan. 31,
2007 (from completion of the merger) as those of the successor
company. The company's operating results for the year ended
Dec. 30, 2007, are presented as the combined results of the
predecessor and successor companies.
The presentations of combined results is not consistent with the
requirements of GAAP; however, the company's management believes
that it is a meaningful way to present the results of operations
for the year ended Dec. 30, 2007.
Combined revenues were $358.8 million for the year ended Dec.
30, 2007, as compared to $349.8 million for the year ended Dec.
31, 2006. The revenue increase was primarily driven by same-
store sales growth of 1.5% in company-owned stores, 4.3% in
domestic franchise stores and 6.7% in international franchise
stores as well as revenue from new stores opened in 2007 in both
company owned and franchised restaurants.
Revenues related to real estate operations, which were
transferred to certain of the company's former shareholders in
connection with the merger, were $300,000 for 2007 compared to
$2.1 million for 2006.
Combined net loss for the year ended Dec. 30, 2007, was
$30.0 million as compared to $9.9 million net income for the
year ended Dec. 31, 2006. Included in the combined net loss or
the year ended Dec. 30, 2007, was $31.4 attributable to special
event bonuses in connection with the merger, as well as higher
depreciation and interest cost resulting from the merger.
Combined EBITDA for the year ended Dec. 30, 2007, as calculated
in accordance with the terms of the company's bank credit
agreement, was $58.2 million as compared to $60.3 million for
the year ended Dec. 31, 2006. The decline in EBITDA was
attributable to higher commodity costs in 2007, in particular
cheese which rose $.51 per pound or $4.1 million. These higher
commodity costs were offset in part by a decline in corporate
bonuses as the EBITDA thresholds in the plan were not met.
Management's Comments
Peter Beaudrault, chairman of the Board, president and chief
executive officer of Sbarro, commented, "We faced unprecedented
headwinds in our fourth quarter as comp store sales declined by
1.8% and commodity costs rose at the same time. Our team
managed through these headwinds and delivered results for the
year that were lower than our expectations, but respectable. We
opened 33 company owned restaurants and 81 franchised
restaurants. Our international franchised store pipeline grew
to in excess of 1,100 at year end 2007.
"Our EBITDA, as calculated in accordance with our credit
agreement, while lower than last year by $2.1 million, was
respectable in light of increased cheese cost of $4.1 million."
Mr. Beaudrault further commented, "We have taken the necessary
steps to operate in this new paradigm of higher commodity costs.
We expect to continue our new store opening program in 2008 in
both our company owned restaurants and our franchised
restaurants while we manage our way through the current economic
and commodity headwinds."
Total Indebtedness
As of Dec. 30, 2007, the company had total indebtedness of
$332.1 million and up to $25.0 million of additional
availability under its Senior Credit Facilities, less $3.8
million of outstanding letters of credit. In addition, the
Senior Credit Facilities provide for an uncommitted incremental
facility of up to $50.0 million.
Balance Sheet
At Dec. 30, 2007, the company's consolidated balance sheet
showed $636.77 million in total assets, $501.14 million in total
liabilities, and $135.63 million in total stockholders' equity.
The company's consolidated balance sheet at Dec. 30, 2007, also
showed strained liquidity with $45.22 million in total current
assets available to pay $50.12 million in total current
liabilities.
Full-text copies of the company's consolidated financial
statements for the year ended Dec. 30, 2007, are available for
free at http://researcharchives.com/t/s?2ad8
About Sbarro Inc.
Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods. As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro," "Umberto's," and
"Carmela's Pizzeria". Total revenues for fiscal 2005 were
approximately US$348 million. The company announced on June 19,
2006, its international expansion by opening more than 25
restaurants in Guatemala, El Salvador, Honduras, The Bahamas,
the Philippines and Romania.
The company has approximately 1,030 restaurants in 41 countries.
Sbarro restaurants feature a menu of popular Italian food,
including pizza, a selection of pasta dishes and other hot and
cold Italian entrees, salads, sandwiches, drinks and desserts.
* * *
Sbarro Inc. still carries Moodys' Invetors Service's Caa1 senior
unsecured debt rating assigned on July 10, 2006.
MANILA ELECTRIC: Increases Pass-Through Charges for April
---------------------------------------------------------
Manila Electric Co. said in a filing with the Philippine
Stock Exchange that the generation charge for April 2008
will reflect a cost of PHP4.9073 per kwh. This is an
upward adjustment compared to Meralco's March 2008
generation charge.
According to the company, the generation charge increase
was mainly due to high wholesale electricity spot market
prices which was responsible for the upward adjustment
of 51.88 centavos in Meralco's cost of supply in March
2008.
Meralco's transmission charge rates beginning the April
2008 billing month for all customer classes were also
updated to reflect the National Transmission Corporation's
2008 Maximum Allowable Revenue-based rates.
For residential customers, the transmission charge
increase is 7.59 centavos or PHP0.9922 kwh. Due to
adjustments in both generation and transmission charges,
the system loss charge for residential users will also
increase by 7.70 centavos per kwh.
All the adjustments, Meralco explains, are revenue-
neutral for Meralco.
The utility company also notes that contrary to some reports,
Meralco charges (distribution, supply, and metering) have not
changed since Meralco's unbundling in June 2003.
According to audited company financial statements cited
by the Troubled Company Reporter-Asia Pacific in its
March 19, 2008 report, Meralco earned a net income of
PHP4.04 billion in 2007.
The bottom line dipped by PHP13.88 billion compared to that
booked in 2006 because of the reversal of losses in that year.
The company pointed out that 2006 net income would have been
just PHP3.66 billion if not for the reversal of probable losses
in that year of PHP15.73 million. The reversal in 2006 was a
result of the favorable ruling of the Supreme Court on Meralco's
Unbundled Rate Case that questioned the granting of a rate
increase to the company by the Energy Regulatory Commission in
2003.
Total revenues increased by 5.19% from PHP190.79 in 2006 to
PHP200.69 billion in 2007. Revenues from the sale of
PHP196.17 billion in 2007. This was brought about by the
increase in overall electricity sales of 4.6%, the company
states. Sales to commercial customers grew by 6.0%, followed by
industrial customers at 4.2% and residential customers by 3.3%.
Revenues from real estate through Rockwell Land Corp. grew by
18.75% from PHP179 billion in 2006 to PHP2.12 billion in 2007.
Total expenses increased by 5.43%. The company notes that the
increase was mitigated by a decrease in interest expense of
40.09% from PHP5.10 billion in 2006 to PHP3.06 billion in 2007,
and reversals of provisions for tax assessment and legal claims
amounting to PHP327 million and provisions for probable losses
on disallowed receivables amounting to PHP646 million.
Capital expenditure for the year totaled PHP6.79 billion.
As of November 30, 2007, Meralco has PHP116.46 billion
of debt outstanding.
About Manila Electric Co.
Headquartered in Ortigas, Pasig City, the Manila Electric
Company aka Meralco -- http://www.meralco.com.ph/-- is
engaged in the distribution and sale of electric energy through
its distribution network facilities in its franchise area. The
franchise area of Meralco covers specific areas in Luzon,
consisting of 25 cities and 86 municipalities, with a size
of approximately 9,337 square kilometers. This includes
Metro Manila, industrial estates and urban and suburban areas
of adjacent provinces. The principal sources of power of
Meralco include the National Power Corporation, First Gas Power,
Quezon Power and the Wholesale Electricity Spot Market.
Meralco's subsidiaries are Meralco Industrial Engineering
Services Corporation, Corporate Information Solutions Inc.,
Rockwell Land Corporation, Meralco Energy Inc., e-Meralco
Ventures Inc., and Meralco Financial Services Corporation.
These companies are engaged in various businesses such as
engineering and construction services, information technology
services, integrated business solutions and property
development.
* * *
The Troubled Company Reporter-Asia Pacific reported on
Dec. 14, 2007, that Standard & Poor's Ratings Services revised
the outlook on its ratings on Meralco to stable from negative.
The 'B-' long-term issuer credit rating on Meralco was affirmed.
* Fitch Wary at Sustainability of Philippine Revenues
-----------------------------------------------------
Despite posting a lower-than-expected deficit last year,
Fitch Ratings expressed concern about the sustainability
of the Philippine government's revenues, Gerard S. dela
Pe? writes for Business World.
"The issues we've been concerned about in the last couple
of years are still there, primarily the revenue side of
public finance," James McCormack, Fitch senior director
and head of Asian Sovereign ratings, was cited by
Business World as saying.
According to the report, the analyst also noted that
the government's debt ratios continued to decline and
it may not likely meet its goal of having a balanced
budget this year.
The Philippine government posted a P12.4-billion deficit
last year, lower than the expected P63 billion, Business
World relates.
Fitch's opinion does not go along with Standard & Poor's
recent action on the country's credit ratings.
On April 21, 2008, the Troubled Company Reporter-Asia Pacific
reported that S&P affirmed its 'BB-/B' foreign currency and
'BB+/B' local currency sovereign credit ratings on the
Republic of Philippines with a stable outlook.
The ratings, according to S&P, reflect the sharply improved
external liquidity position, which, combined with fiscal
consolidation efforts and attendant decrease in external
borrowing, is yielding a substantially lower net external
debt position. This is ameliorating one of the key
vulnerabilities of the sovereign, given that over 40% of
its debt is denominated in foreign currency, S&P said.
In addition, S&P noted that the ratings also take into
account continued efforts to increase tax revenues from a
low 14% of GDP and the country's track record of steady
economic growth.
"Despite these advances, a number of key debt ratios reveal a
still-high level of vulnerability to economic shocks or adverse
policy shifts than what is generally associated with this rating
category," said Standard & Poor's credit analyst Agost Benard.
=================
S I N G A P O R E
=================
FLEXTRONICS INT'L: May Complete Phase 2 of Arima Deal This Month
----------------------------------------------------------------
Flextronics International Limited said that it expects to close
the second phase of its two-phase acquisition of Arima Computer
Corporation notebook and server businesses in April of this
year.
Flextronics completed phase one on March 18, 2008. Phase one
include the acquisition of the design and services group of
Arima.
The second phase will include the acquisition of Arima's
notebook and server manufacturing facility in WuJiang China, and
is expected to close this month. Arima Computer's notebook and
server business will become part of the Flextronics Computing
segment. Upon completion of the two-phase transaction,
Flextronics will have acquired all of the Arima's design,
manufacturing and service resources related to notebook and
servers.
"Closing phase one of this acquisition significantly enhances
our ODM server offering and significantly strengthens our
position in the rapidly growing notebook market," said Sean
Burke, president of Flextronics Computing. "We are pleased to
welcome Arima's talented design and service employees to our
team, as we continue to strengthen our world-class solutions for
the computing marketplace."
About Flextronics
Headquartered in Singapore, Flextronics International Ltd.
(NasdaqGS: FLEX; Singapore Reg. No. 199002645H) --
http://www.flextronics.com/-- is an Electronics Manufacturing
Services provider focused on delivering design, engineering and
manufacturing services to automotive, computing, consumer
digital, industrial, infrastructure, medical and mobile OEMs.
Flextronics helps customers design, build, ship, and service
electronics productsthrough a network of facilities in over 30
countries on four continents.
As of the year ended March 31, 2007, the company's regulatory
filing with the U.S. SEC showed that it had subsidiaries in
Austria, Brazil, China, France, Hong Kong, Hungary, Malaysia,
Mexico and the United States, among others. The company has yet
to submit its annual report for the year ended March 31, 2008.
* * *
Flextronics International Ltd. continues to carry Moody's
"Ba1" probability of default and long-term corporate family
ratings with a negative outlook.
The company also carries Standard & Poor's "BB+" long-term
local and foreign issuer credit ratings with a negative
outlook.
GRANT PRIDECO: Completed Varco Deal Cues S&P to Withdraw Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew the 'BB+' corporate
credit rating on oilfield service company Grant Prideco Inc.
"The rating action follows the completion of the successful
acquisition of Grant Prideco by National Oilwell Varco Inc.,"
said Standard & Poor's credit analyst Aniki Saha-Yannopoulos.
The rating on National Oilwell Varco Inc. has been affirmed at
'A-'. The outlook is stable.
About Grant Prideco
Headquartered in Houston, Texas, Grant Prideco Inc. --
http://www.grantprideco.com/-- provides drill bits and related
equipment. The company also makes engineered tubular products
for oil field exploration and development, including drill pipe
and drill stem products, large-diameter casings, tubing and
connections, and risers. Grant Prideco offers sales, technical
support, repair, and field services to customers worldwide.
The company was spun off by drilling equipment maker Weatherford
International in 2000. The company has global locations in
Singapore, China, Indonesia, Brazil, Columbia, Ecuador, Peru,
Venezuela, Austria, France, Italy and Scotland, among others.
*********
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 E. Taladua, Rousel Elaine C. Tumanda,
Valerie Udtuhan, Marie Therese V. Profetana, Frauline S.
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 ***