/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061228.mbx T R O U B L E D C O M P A N Y R E P O R T E R =20 =20 A S I A P A C I F I C =20 =20 Wednesday, December 27, 2006, Vol. 9, No. 256=20 =20 Headlines =20 A U S T R A L I A =20 A.W. SPINNING: Bank Names Receivers and Managers AUSTASIA CLOTHING: Oxford Appoints Receivers and Managers BUDACN PTY: To Declare Dividend for Priority Creditors CAMPBELLFIELD TRUCK: Members Opt for Voluntary Liquidation CHALLENGE CHARTER: Receiver and Manager Ceases to Act =20 CRAVONE PTY: Commences Wind-Up Proceedings HIBNEAN PTY: To Declare First and Final Dividend on Feb. 8 JURCEVIC OFFICE: Members Opt to Close Business NEASHAM NOMINEES: Schedules Members' Final Meeting on Jan. 29 NIANTA PTY: Tim Le Roy Appoints Receiver and Manager =20 PARAGON HAIR: Final Meeting Slated for January 19 PAUL BOWDEN: Members Resolve to Wind Up Firm PEABODY ENERGY: Promotes Michael C. Crews to VP of Planning PEABODY ENERGY: Prices US$675-Mil. Jr. Subordinated Debentures PEABODY ENERGY: DBRS Rates US$675-Mil. Junior Notes at B (high) =20 PEATMORE FARMS: Undergoes Wind-Up Proceedings PENDULUM DAIRY: Members and Creditors to Hear Wind-Up Report ROTUNDAS OF AUSTRALIA: Enters Wind-Up Proceedings TRENNEL PTY: Placed Under Members' Voluntary Wind-Up WESTPOINT REAL: Members and Creditors to Receive Wind-Up Report =20 =20 C H I N A & H O N G K O N G =20 ALERIS INT'L: Stockholders Okay Merger Pact with Texas Pacific AUTOCAM CORP: Interest Non-Payment Cues S&P's Default Rating BOCON INTERNATIONAL: Creditors' Proofs of Claim Due on Jan. 26 BOMBARDIER INC: Closes EUR4.3 Billion Letter of Credit Facility BRILLIANT FAIR: Joint Liquidators Cease to Act =20 CASCADES INC: Closes Offering of Subscription Receipts CASCADES INC: Moody's Confirms Ba2 Corporate Family Rating CASCADES INC: Moody's Holds Ba2 Corporate Family Rating CHIAO TUNG: Members Pass Resolution to Wind Up Firm COUDERT BROTHERS: Taps McGrigors LLP as Special Counsel =20 DAVAL HK: Schedules Final Meeting on January 23 FERRO CORPORATION: Files 2006 Third Quarter Financial Report GLOBAL CROSSING: Unit Prices Offering of 11.75% Sr. Sec. Notes GLOBAL MARCH: Will Pay Dividend on December 29 GREEN STAR ASIA: Appoints Mak Man Cheung as Liquidator =20 HARVEST FOCUS: Members Agree to Shut Down Business Operations KA YAU: Members Opt for Voluntary Wind-Up METROPOLITAN FINANCE: Members Resolve to Wind Up Operations VASTHEME INTERNATIONAL: Annual Meetings Slated for January 9 =20 =20 I N D I A =20 CONEXANT SYSTEMS: Posts US$122.6 Million Net Loss in Fiscal 2006 CONEXANT SYS: Inks Pact Extending Credit Maturity to Nov. 2007 GENERAL MOTORS: Applauds ITC's Ruling Revoking Steel Duty Orders RELIANCE INDUSTRIES: Inks Cooperation Deal with Essar Oil RELIANCE INDUSTRIES: Sees Opportunities in Kurdistan =20 RPG LIFE: Discloses Auditors' Observations on Sept. 2006 Review STATE BANK OF INDIA: Govt. Introduces Bill Amending Company Act STATE BANK OF INDIA: Life Insurance Corp. Buys 200,000 Shares STATE BANK: Ready to Go Into Various Segments, Chairman Says TATA MOTORS: Forms JV with Thailand's Thonburi Automotive =20 TATA MOTORS: Inks Industrial Joint Venture Deal with Fiat Auto =20 =20 I N D O N E S I A =20 ANEKA TAMBANG: Repaired Facility Ups 2007 Production Targets BANK BUANA: Mulls Merger with Bank UOB BANK DANAMON: Unit Secures $30MM Loan from Deutsche Investitions BANK NEGARA: To Hasten Debt Restructuring in 2007 BERAU COAL: S&P Assigns 'B' Corporate Credit Rating =20 CORUS GROUP: Auction Looms If Buyer Remains Unnamed by Jan. 31 HANOVER COMPRESSOR: Redeeming US$20.8MM of Conv. Jr. Debentures METSO OYJ: Injects EUR15 Million to Raise Paper Unit's Capacity METSO OYJ: Inks Five-Year EUR500 Million Loan Facility NORTEL NETWORKS: Eastman Kodak Renews Three-Year Management Pact =20 ORBITAL SCIENCES: Closes Sale on US$125MM Sr. Subordinated Notes PERUSAHAAN LISTRIK: Government Retenders Four Power Projects * Central Bank Upbeat About Reduction in Number of Banks * Banks to Face NPL-Related Challenges in 2007 * Banker Urge Independent Management of State-Owned Banks =20 * Indonesia Starts to Get Top Marks From Foreign Investors =20 =20 J A P A N =20 BANCO BRADESCO: Handling Santa Catarina Payroll for Five Years CONVERIUM HOLDINGS: Moody's Lifts Debt Rating to Baa3 from B2 DELPHI CORP: Asks for SEC's View on Foreign Currency Issues DELPHI CORP: Secures US$4.4-Bil. DIP Loan Pledge from JP Morgan FORD MOTOR: Applauds ITC's Ruling Revoking Steel Duty Orders =20 FORD MOTOR: Expects to Become No. 3 as Toyota Gains No. 2 Spot MITSUBISHI MOTORS: Reveals November Production & Sales Results NIKKO CORDIAL: Pres. & Chairman Resign Over Accounting Scandal NORTHWEST AIRLINES: In Talks to Acquire Mesaba Aviation PACHINKO WORLD: Files Form 15 to Voluntarily Deregister Stock =20 SAMSONITE CORP: Tender Offer for 8-7/8% Notes Expired SAMSONITE CORP: Declares US$175MM Cash Distribution on Stocks SENSATA TECH: Completes Purchase of Honeywell's FTAS Business =20 =20 K O R E A =20 DURA AUTOMOTIVE: Wants Until January 31 to File Schedules DURA AUTOMOTIVE: Wants to File Lear Settlement Pact Under Seal SK CORP: To Invest US$28 Million for Australian Coal Mine SK CORP: November 2006 Sales Decrease 1.4% from Last Year =20 =20 M A L A Y S I A =20 SOLECTRON CORP: Posts US$3B in Sales for First Quarter FY 2007 =20 =20 N E W Z E A L A N D =20 ABOUT CEILINGS: Shareholders Agree to Liquidate Business AUCKLAND ABALONE: Creditors' Proofs of Claim Due on Jan. 15 DEBT RELIEF: Creditors Must Lodge Claims by March 5 E BLOCK LTD: Creditors Have Until March 7 to Prove Claims FIRST CITY: Appoints Official Assignee as Liquidator =20 HAIR JUNCTION: Court Appoints Joint Liquidators HARDING CONSTRUCTION: Creditors Must Prove Debts by Jan. 30 HOLMESLANGTON ENTERPRISES: Shareholders Opt to Close Business MASONRY RESIDENTIAL: Creditors to File Claims by March 7 SERAFON LTD: Names Hollis and Fisk as Joint Liquidators =20 TAUPIRI FARMS: Commences Liquidation Proceedings WEIGHT WATCHERS: Commences Tender Offer for 8.3 Mil. Shares WEIGHT WATCHERS: S&P Places Ratings on Negative CreditWatch =20 =20 P H I L I P P I N E S =20 PRC LLC: S&P Holds Rating on US$67-Mil. 2nd Lien Term Loan at B- =20 =20 S I N G A P O R E =20 ARMSTRONG INDUSTRIAL: Subsidiary Registers Company in Vietnam CHINA AVIATION: Closes Physical Fuel Jet Tender PETROLEO BRASILEIRO: Mulls Gascac Construction Without Sinopec PETROLEO BRASILEIRO: Share Buyback Boosting Reserves Management PETROLEO BRASILEIRO: Invests US$724MM to Boost Onshore Oil Prod. =20 =20 T H A I L A N D =20 DAIMLERCHRYSLER: Praises ITC's Ruling to Revoke Steel Duties FEDERAL-MOGUL: U.S. Judge Denies Approving Plan B Settlement FEDERAL-MOGUL: Trustee Names Trizec to Asbestos Claimants Panel PHELPS DODGE: Appoints David H. Elliott VP of Cobalt Marketing =20 =20 * Upcoming Meetings, Conferences and Seminars =20 - - - - - - - - =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=20 A U S T R A L I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =20 A.W. SPINNING: Bank Names Receivers and Managers ------------------------------------------------ National Australia Bank Ltd on Dec. 7, 2006, appointed George=20 Georges and John Ross Lindholm as joint and several receivers=20 and managers of A.W. Spinning Mills Pty Ltd. =20 The Receivers and Managers can be reached at: =20 George Georges=20 John Ross Lindholm=20 Level 29, 600 Bourke Street Melbourne, Victoria Australia =20 About AW Spinning =20 AW Spinning Mills Pty Ltd operates yarn-spinning mills. =20 The company is located in Victoria, Australia. =20 =20 AUSTASIA CLOTHING: Oxford Appoints Receivers and Managers --------------------------------------------------------- Oxford Funding Pty Ltd appointed on Dec. 8, 2006, Andrew Stewart=20 Reed Hewitt and Gregory John Keith as receivers and managers of=20 Austasia Clothing Int. Pty Ltd. =20 The Receivers and Managers can be reached at: =20 Andrew Stewart Reed Hewitt=20 Gregory John Keith=20 Grant Thornton Recovery (Vic) Pty Ltd=20 Level 35, 525 Collins Street Melbourne Victoria, 3000 Australia =20 About Austasia Clothing =20 Austasia Clothing Pty Ltd is a distributor of men's and boys'=20 clothing. =20 The company is located in Victoria, Australia. =20 =20 BUDACN PTY: To Declare Dividend for Priority Creditors ------------------------------------------------------ Budacn Pty Ltd -- formerly known as Bud-Pak Pty Ltd -- which is=20 in liquidation, will declare the first and final dividend for=20 its priority creditors on Jan. 19, 2007. =20 In this regard, the creditors are required to submit their=20 proofs of debt by Jan. 8, 2007, to be included in the dividend=20 distribution. =20 The joint and several liquidators can be reached at: =20 Peter Goodin Robyn Erskine Brooke Bird & Co. Insolvency Practitioners 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone:(03) 9882 6666 Facsimile:(03) 9882 8855 =20 About Budacn Pty =20 Budacn Pty Ltd is a distributor of packaging machinery. =20 The company is located in New South Wales, Australia. =20 =20 CAMPBELLFIELD TRUCK: Members Opt for Voluntary Liquidation ---------------------------------------------------------- The members of Campbellfield Truck Electrics Pty Ltd met on=20 Dec. 8, 2006, and resolved to voluntarily wind up the company's=20 operations. =20 At the creditors' meeting held that same day, Barry Keith Taylor=20 was appointed as liquidator. =20 The Liquidator can be reached at: =20 Barry Keith Taylor B. K. Taylor & Co 8/608 St Kilda Road Melbourne, Victoria 3004 Australia =20 About Campbellfield Truck =20 Campbellfield Truck Electrics Pty Ltd operates automotive repair=20 shops. =20 The company is located in Victoria, Australia. =20 =20 CHALLENGE CHARTER: Receiver and Manager Ceases to Act ----------------------------------------------------- On Nov. 29, 2006, John Ross Lindholm ceased to act as receiver=20 and manager of Challenge Charter Pty Ltd. =20 According to the Troubled Company Reporter - Asia Pacific, Mr.=20 Lindholm was appointed as receiver and manager of the company on=20 Jan. 23, 2006. =20 About Challenge Charter =20 Challenge Charter Pty Ltd provides business services. =20 The company is located in Victoria, Australia. =20 =20 =20 CRAVONE PTY: Commences Wind-Up Proceedings ------------------------------------------ At an extraordinary general meeting held on Dec. 1, 2006, the=20 members of Cravone Pty Ltd resolved to voluntarily wind up the=20 company's operations. =20 Accordingly, Peter Gountzos and David James Lofthouse were=20 appointed as joint and several liquidators at the creditors'=20 meeting held that same day. =20 The Joint and Several Liquidators can be reached at: =20 Peter Gountzos=20 David James Lofthouse CJL Partners Level 3, 180 Flinders Lane Melbourne, Victoria 3000 Australia Telephone:(03) 9639 4779 Facsimile:(03) 9639 4773 =20 About Cravone Pty =20 Cravone Pty Ltd is an investor relation company. =20 =20 The company is located in Victoria, Australia. =20 =20 HIBNEAN PTY: To Declare First and Final Dividend on Feb. 8 ---------------------------------------------------------- Hibnean Pty Ltd -- formerly trading as Edward Beale Salons --=20 that is in liquidation, will declare the first and final=20 dividend on Feb. 8, 2007. =20 In this regard, creditors are required to submit their proofs of=20 claim by Jan. 10, 2007, or they will be excluded from sharing in=20 the distribution. =20 The joint and several liquidators can be reached at: =20 Peter Goodin Robyn Erskine Brooke Bird & Co. Insolvency Practitioners 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone:(03) 9882 6666 Facsimile:(03) 9882 8855 =20 About Hibnean Pty =20 Hibnean Pty Ltd -- trading as Edward Beale Hairdressing --=20 operates barber shops. =20 The company is located in Victoria, Australia. =20 =20 JURCEVIC OFFICE: Members Opt to Close Business ---------------------------------------------- The members of Jurcevic Office Interiors Pty Ltd decided to=20 voluntarily wind up the company's operations during a meeting on=20 Dec. 1, 2006. =20 Gregory Stuart Andrews was consequently appointed as liquidator. =20 The Liquidator can be reached at: =20 Gregory Stuart Andrews G. S. Andrews & Assocs 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 =20 About Jurcevic Office =20 Jurcevic Office Interiors Pty Ltd -- trading as Jurcevic Office=20 Interiors -- is a distributor of wood office and store fixtures,=20 partitions, shelving, and lockers. =20 The company is located in Victoria, Australia. =20 =20 NEASHAM NOMINEES: Schedules Members' Final Meeting on Jan. 29 ------------------------------------------------------------- Neasham Nominees Pty Ltd, which is in liquidation, will hold a=20 final meeting for its members on Jan. 29, 2007, at 9:00 a.m., to=20 consider Liquidator P. A. Tierney's explanation of his final=20 account on the company's wind-up proceedings. =20 The Liquidator can be reached at: =20 Paul Anton Tierney Charman Partners Suite 4, 10-12 Chapel Street Blackburn 3130 Australia =20 About Neasham Nominees =20 Neasham Nominees Pty Ltd is an investor relation company. =20 The company is located in Victoria, Australia. =20 =20 NIANTA PTY: Tim Le Roy Appoints Receiver and Manager ---------------------------------------------------- Tim Le Roy of Benchmark Debtor Finance Pty Ltd appointed Robert=20 Molesworth Hobill Cole of Cole Downey & Co. as receiver and=20 manager of all the assets of Nianta Pty Ltd on Dec. 5, 2006. =20 The Receiver and Manager can be reached at: =20 Robert Molesworth Hobill Cole=20 Cole Downey & Co=20 Chartered Accountants Unit 2, 6 Moorabool Street Geelong Australia =20 About Nianta Pty =20 Nianta Pty Ltd -- trading as Enhance Homes -- is a distributor=20 of electrical appliances, television and radio sets. =20 The company is located in Victoria, Australia. =20 =20 PARAGON HAIR: Final Meeting Slated for January 19 ------------------------------------------------- The final meeting of the members and creditors of Paragon Hair &=20 Beauty Pty Ltd will be held on Jan. 19, 2007, at 11:00 a.m., to=20 consider the liquidator's account of the company's wind-up=20 proceedings. =20 The Liquidator can be reached at: =20 Anthony R. Cant Romanis Cant Chartered Accountants 106 Hardware Street Melbourne, Victoria 3000 Australia =20 About Paragon Hair =20 Paragon Hair & Beauty Pty Ltd operates beauty shops. =20 The company is located in Victoria, Australia. =20 =20 PAUL BOWDEN: Members Resolve to Wind Up Firm -------------------------------------------- At a general meeting held on Dec. 7, 2006, the members of Paul=20 Bowden Productions Pty Ltd resolved to voluntarily wind up the=20 company's operations and appointed Bruce Neil Mulvaney as=20 liquidator. =20 The Liquidator can be reached at: =20 Bruce Neil Mulvaney Bruce Mulvaney & Co Chartered Accountants 1st Floor, 613 Canterbury Road Surrey Hills, Victoria 3127 Australia =20 About Paul Bowden =20 Paul Bowden Productions Pty Ltd -- trading as Melbourne Kung Fu=20 & Tai Chi Academy -- provides amusement and recreation services. =20 The company is located in Victoria, Australia. =20 =20 PEABODY ENERGY: Promotes Michael C. Crews to VP of Planning ----------------------------------------------------------- Peabody Energy named Michael C. Crews as Vice President of=20 Planning, Analysis and Performance Assessment, reporting to=20 Chief Financial Officer and Executive Vice President of=20 Corporate Development Richard A. Navarre. In this new=20 assignment, Mr. Crews will be responsible for development and=20 execution of financial and capital strategy and analysis, and=20 will support the company's business plans in the areas of=20 planning and forecasting, capital management and performance=20 assessment. =20 Mr. Crews' diverse financial experience and history with Peabody=20 will allow him to provide leadership and advice in financial=20 planning, forecasting and capital management. He will also be=20 responsible for integrating a comprehensive corporate=20 performance assessment system throughout all levels of the=20 organization designed to further align performance with=20 corporate goals and strategies. =20 Reporting to Crews are Director of Financial Planning Bradley E. Phillips and Director of Performance Assessment Jeffrey D.=20 Timmerman, and the Director of Capital Management position which=20 is currently open. =20 Mr. Crews has 17 years of financial experience and a strong=20 background with Peabody. He joined Peabody in 1998 as Senior=20 Manager of Financial Reporting. He has served as Assistant=20 Controller - Corporate, Director of Planning and most recently=20 Assistant Treasurer. Prior to joining Peabody, Mr. Crews spent=20 six years at KPMG Peat Marwick in St. Louis. =20 Mr. Crews has a Bachelor of Arts degree in Accountancy from the=20 University of Missouri at Columbia and a Master of Business=20 Administration degree from Washington University in St. Louis. =20 Headquartered in St. Louis, Missouri, Peabody Energy Corp.,=20 (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's =20 largest private-sector coal company, with 2005 sales of 240=20 million tons of coal and U.S.US$4.6 billion in revenues. Its=20 coal products fuel 10% of all U.S. and 3% of worldwide=20 electricity. The company has coal operations in Australia. =20 * * * =20 On Dec. 14, 2006, Moody's Investors Service assigned Peabody Energy Corporation's proposed US$500-million convertible junior subordinated debentures a rating of Ba2. At the same time, Moody's affirmed Peabody's Ba1 corporate family rating and the Ba1 senior unsecured rating on its existing revolver, term loan and notes. The ratings reflect the overall probability of default of the company, to which Moody's affirms a PDR of Ba1. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Dec. 21, 2006, Standard & Poor's Ratings Services assigned its=20 'B' rating to the US$500-million convertible junior subordinated=20 debentures. =20 On Dec. 13, 2006, Fitch Ratings rated the US$500-million=20 debentures due 2066 at 'BB-'. =20 =20 PEABODY ENERGY: Prices US$675-Mil. Jr. Subordinated Debentures -------------------------------------------------------------- Peabody Energy has priced US$675 million principal amount of=20 convertible junior subordinated debentures due 2066. The=20 debentures will pay interest semiannually at a rate of 4.75% per=20 year and the initial conversion price is US$61.95.=20 =20 The company has granted the underwriters an option to purchase=20 up to an additional US$75 million of debentures to cover over- allotments. =20 The debentures are convertible under certain circumstances,=20 including when the price of the shares reaches US$86.73. Upon=20 conversion, holders will receive cash in the amount of, or=20 preferred stock with a liquidation preference equal to, the=20 principal amount, and only any value in excess of the principal=20 amount will be delivered in the company's common stock. =20 The company disclosed that it will use commercially reasonable=20 efforts to raise net proceeds by issuing securities to pay=20 holders the principal amount of the debentures, together with=20 accrued and unpaid interest, on Dec. 15, 2041, the scheduled=20 maturity date. =20 Net proceeds of the offering, are expected to be used primarily=20 to repay debt under the company's revolving credit facility and=20 term loan facility, which partly financed the recent acquisition=20 of Excel Coal Limited, and for other corporate purposes. =20 Lehman Brothers Inc., Morgan Stanley & Co. Incorporated and=20 Citigroup Global Markets Inc. are the joint book running=20 managers for the offering. =20 Copies of the prospectus supplement relating to the offering may=20 also be obtained from: =20 Lehman Brothers c/o ADP Financial Services Integrated Distribution Services 1155 Long Island Avenue, Edgewood, NY 11717 Tel. No: (888) 603-5847 Fax: (631) 254-7268 =20 Morgan Stanley Attention: Prospectus Department 180 Varick Street, 2/F New York, NY 10014 Tel. No: (866) 718-1649 =20 Citigroup Global Markets Inc. Brooklyn Army Terminal 140 58th Street, 8th Floor Brooklyn, NY 11220 Tel. No: (718) 765-6732 Fax: (718) 765-6734. =20 Headquartered in St. Louis, Missouri, Peabody Energy Corp.,=20 (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's =20 largest private-sector coal company, with 2005 sales of 240=20 million tons of coal and U.S.US$4.6 billion in revenues. Its=20 coal products fuel 10% of all U.S. and 3% of worldwide=20 electricity. The company has coal operations in Australia. =20 * * * =20 On Dec. 14, 2006, Moody's Investors Service assigned Peabody Energy Corporation's proposed US$500-million convertible junior subordinated debentures a rating of Ba2. At the same time, Moody's affirmed Peabody's Ba1 corporate family rating and the Ba1 senior unsecured rating on its existing revolver, term loan and notes. The ratings reflect the overall probability of default of the company, to which Moody's affirms a PDR of Ba1. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Dec. 21, 2006, Standard & Poor's Ratings Services assigned its=20 'B' rating to the US$500-million convertible junior subordinated=20 debentures. =20 On Dec. 13, 2006, Fitch Ratings rated the US$500-million=20 debentures due 2066 at 'BB-'. =20 =20 PEABODY ENERGY: DBRS Rates US$675-Mil. Junior Notes at B (high) ----------------------------------------------------------- Dominion Bond Rating Service assigned rating of B (high) to the=20 new US$675 Million Convertible Junior Subordinated Debentures of Peabody Energy Corporation. The trend is Stable. =20 The rating assigned to the Debentures reflects their deeply subordinated status, with the Debentures ranking junior to all of the Company's existing and future senior and subordinated=20 debt. =20 In accordance with DBRS's policy to reflect structural=20 subordination, a two-notch rating differential is applied to the Debentures vis-a-vis the senior unsecured debt of Peabody, which is presently rated by DBRS at BB. =20 Peabody reported its intention to issue US$675 million of=20 Debentures on Dec. 14, 2006. Additionally, the company has=20 granted the underwriters an option to purchase up to an=20 additional US$75 million of debentures in the event of over- allotments. =20 DBRS notes that Peabody intends to allocate the net proceeds of the Debentures toward the repayment of debt assumed to partly finance the acquisition of Excel Coal Limited of Australia. =20 DBRS notes therefore that the offering of the Debentures does=20 not adversely impact the overall credit metrics and financial=20 profile of the company. =20 * * * =20 Headquartered in St. Louis, Missouri, Peabody Energy Corp.,=20 (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's =20 largest private-sector coal company, with 2005 sales of 240=20 million tons of coal and U.S.US$4.6 billion in revenues. Its=20 coal products fuel 10% of all U.S. and 3% of worldwide=20 electricity. The company has coal operations in Australia. =20 =20 PEATMORE FARMS: Undergoes Wind-Up Proceedings --------------------------------------------- On Dec. 6, 2006, the members of Peatmore Farms Pty Ltd met and=20 resolved to voluntarily wind up the company's operations. =20 At the creditors' meeting held that same day, Barry Keith Taylor=20 was appointed as liquidator. =20 The Liquidator can be reached at: =20 Barry Keith Taylor B. K. Taylor & Co 8/608 St Kilda Road=20 Melbourne, Victoria 3004 Australia =20 About Peatmore Farms =20 Peatmore Farms Pty Ltd is an investor relation company. =20 The company is located in Victoria, Australia. =20 =20 PENDULUM DAIRY: Members and Creditors to Hear Wind-Up Report ------------------------------------------------------------ The members and creditors of Pendulum Dairy Gates Pty Ltd will=20 meet on Jan. 19, 2007, at 9:00 a.m., to hear the liquidator's=20 report regarding the company's wind-up proceedings. =20 The Troubled Company Reporter - Asia Pacific previously reported=20 that the company was placed under creditors' wind-up on June 21,=20 2005. =20 The liquidator can be reached at: =20 George Georges Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia =20 About Pendulum Dairy =20 Pendulum Dairy Gates Pty Ltd is a distributor of farm machinery=20 and equipment. =20 The company is located in Victoria, Australia. =20 =20 ROTUNDAS OF AUSTRALIA: Enters Wind-Up Proceedings ------------------------------------------------- The members of Rotundas of Australia Pty Ltd met on Dec. 7,=20 2006, and resolved to voluntarily wind up the company's=20 operations. =20 Subsequently, Stephen Robert Dixon and Laurence Andrew=20 Fitzgerald were appointed as joint and several liquidators at=20 the creditors' meeting held that same day. =20 The Joint and Several Liquidators can be reached at: =20 Stephen Robert Dixon=20 Laurence Andrew Fitzgerald Horwath BRI (Vic) Pty Ltd Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia =20 About Rotundas Of Australia =20 Rotundas of Australia Pty Ltd is an investor relation company. =20 The company is located in Victoria, Australia. =20 =20 TRENNEL PTY: Placed Under Members' Voluntary Wind-Up ---------------------------------------------------- On Dec. 7, 2006, the members of Trennell Pty Ltd met and=20 resolved to voluntarily wind up the company's operations. =20 In this regard, Samuel Richwol was appointed as liquidator. =20 The Liquidator can be reached at: =20 Samuel Richwol=20 O'Keeffe Walton Richwol Chartered Accountants Suite 3, 431 Burke Road Glen Iris 3146 Australia =20 About Trennell Pty =20 Trennell Pty Ltd is a distributor of durable goods. =20 The company is located in Victoria, Australia. =20 =20 WESTPOINT REAL: Members and Creditors to Receive Wind-Up Report --------------------------------------------------------------- The members and creditors of Westpoint Real Estate Pty Ltd will=20 meet on Jan. 15, 2007, at 10:30 a.m., to receive the report on=20 the company's wind-up proceedings from Liquidator D.P.=20 Juratowitch. =20 As reported by the TCR-AP, the company's creditors resolved to=20 voluntarily wind up the company's operations on Nov. 15, 2005. =20 The Liquidator can be reached at: =20 D. P. Juratowitch Cor Cordis Chartered Accountants 406 Collins Street=20 Melbourne, Victoria 3000 Australia =20 About Westpoint Real =20 Westpoint Real Estate Pty Ltd handles real estate agents and=20 managers. =20 The company is located in Victoria, Australia. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D C H I N A & H O N G K O N G =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D =20 ALERIS INT'L: Stockholders Okay Merger Pact with Texas Pacific -------------------------------------------------------------- Stockholders of Aleris International Inc. voted to adopt the=20 merger agreement providing for the acquisition of the company by=20 an entity currently indirectly owned by private equity funds=20 sponsored by Texas Pacific Group. =20 Approximately 98.7% of stockholders present and voting voted for adoption of the merger agreement. The number of shares voting to adopt the merger agreement represents approximately 75.7% of the total number of shares outstanding and entitled to vote. =20 The proposed merger was announced on Aug. 8, 2006, and was scheduled for completion on Dec. 19, 2006, subject to the=20 satisfaction or waiver of all the closing conditions set forth in the merger agreement. Under the terms of the merger agreement, company stockholders will receive US$52.50 per share in cash without interest. =20 About Texas Pacific =20 Texas Pacific Group, or TPG, is a global private investment firm=20 with more than US$30 billion of assets under management with=20 offices in San Francisco, New York, London and throughout Asia.=20 TPG invests in world-class franchises across a range of=20 industries and has extensive experience with public and private=20 investments executed through leveraged buyouts,=20 recapitalizations, take private transactions, spinouts, joint=20 ventures, and restructurings. =20 About Aleris =20 Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris=20 International, Inc. -- http://www.aleris.com/-- manufactures=20 aluminum rolled products and extrusions, aluminum recycling and=20 specification alloy production. The company is also a recycler=20 of zinc and a leading U.S. manufacturer of zinc metal and value- added zinc products that include zinc oxide and zinc dust. The=20 company operates 50 production facilities in North America,=20 Europe, South America and Asia, and employs approximately 8,600=20 employees. =20 The company has production facilities in China. =20 * * * =20 The Troubled Company Reporter - Asia Pacific reported on Dec. 22, 2006, that Standard & Poor's Ratings Services affirmed=20 its 'B+' loan and '2' recovery ratings on the senior secured=20 first-lien term loan of Aleris International Inc., after the=20 report that the company increased the term loan by US$125=20 million.=20 =20 S&P lowered its corporate credit rating on Aleris International=20 to 'B+' from 'BB-'and removed it from CreditWatch, where it was=20 placed with negative implications on Aug. 9, 2006. The=20 CreditWatch placement comes after the report that Texas Pacific=20 Group had agreed to acquire Aleris' outstanding stock for nearly=20 US$3.4 billion, consisting of US$1.7 billion in cash plus=20 assumed debt, representing a 6.8x trailing-12-months EBITDA=20 multiple.=20 =20 =20 AUTOCAM CORP: Interest Non-Payment Cues S&P's Default Rating ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its 'CC' corporate=20 credit and 'C' subordinated note ratings on Autocam Corp. to=20 'D'. =20 At the same time, the 'CC' rating and '2' recovery rating on the=20 senior secured credit facilities were withdrawn, because the=20 company reported that it expects to reinstate or refinance its=20 senior secured credit facilities. In addition, all ratings were=20 removed from CreditWatch with negative implications where they=20 were placed on Nov. 22, 2006.=20 =20 The ratings actions follow the company's failure to pay its=20 semi-annual US$7.6 million interest payment due on Dec. 15,=20 2006, on its US$140 million senior subordinated notes.=20 =20 Following the nonpayment of interest, Autocam received a=20 recapitalization proposal from the note holders under which they=20 offered to purchase newly issued PIK preferred equity securities=20 and convert their notes into 100% of the common equity of=20 Autocam. Indebtedness under the company's second-lien credit=20 facility would, under the proposal, be repaid in full with=20 proceeds of the PIK preferred equity. The senior secured credit=20 facilities would be reinstated or refinanced. =20 The company has operations in China, Brazil and France. =20 =20 BOCON INTERNATIONAL: Creditors' Proofs of Claim Due on Jan. 26 -------------------------------------------------------------- The creditors of Bocon International Ltd are required by=20 Liquidator Yuen Shu Tong to submit their proofs of claim by=20 Jan. 26, 2006. =20 Failure to meet the requirement will exclude a creditor from=20 sharing in any distribution the company will make. =20 The Liquidator can be reached at: =20 Yuen Shu Tong 3/F, Malaysia Building 50 Gloucester Road, Wanchai=20 Hong Kong =20 =20 BOMBARDIER INC: Closes EUR4.3 Billion Letter of Credit Facility --------------------------------------------------------------- Bombardier Inc. signed a EUR4.3 billion Syndicated Letter of=20 Credit Facility agreement on Dec. 18, 2006, with a group of=20 leading international financial institutions. The facility is=20 set up in Europe for the benefit of Bombardier Inc. and all of=20 its subsidiaries. It will replace existing syndicated North=20 American and European facilities. =20 Bombardier attained its objective of securing availability for=20 an extended term, while at the same time reducing considerably=20 its issuing costs. This is a clear indication of the banks'=20 support for Bombardier's business plan. =20 Calyon, BNP Paribas, Deutsche Bank and J.P. Morgan, who have=20 jointly arranged the facility, as mandated lead arrangers and=20 joint book runners, were joined by five banks as mandated lead=20 arrangers and sub-underwriters and 16 additional banks joined in=20 the general syndication. =20 This closing completes the refinancing plan undertaken during=20 the third quarter of fiscal year 2007, which included tender=20 offers of certain notes and a new issue of senior notes. =20 About Bombardier =20 Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) --=20 http://www.bombardier.com/-- manufactures innovative =20 transportation solutions, from regional aircraft and business=20 jets to rail transportation equipment. The company has=20 operations in North America, Europe and China. =20 * * * =20 As reported in the Troubled Company Reporter on Nov. 1, 2006, Dominion Bond Rating Service confirmed the ratings of Bombardier Inc. and Bombardier Capital Ltd. The Senior Unsecured=20 Debentures of both Bombardier Inc. and Bombardier Capital Ltd.=20 are confirmed at BB, and Preferred Shares of Bombardier Inc. at=20 Pfd-4. All trends are Negative. =20 In October 2006, Fitch Ratings downgraded the debt and Issuer Default Ratings for both Bombardier Inc. The Company's issuer default rating was downgraded from BB to BB-. Other rating actions include, Senior unsecured debt revised to 'BB-' from=20 'BB'; Credit facilities revised to 'BB-' from 'BB' and Preferred=20 stock revised to 'B' from 'B+'. The Rating Outlook is Stable. =20 Also in October 2006, Standard & Poor's Ratings Services=20 affirmed its 'BB' long-term corporate credit rating on=20 Bombardier. At the same time, Standard & Poor's assigned its=20 'BB' issue rating to Bombardier's proposed issuance of up to=20 EUR1.8 billion seven-to-ten-year multi-tranche senior unsecured=20 notes. =20 Bombardier Inc.'s proposed EUR1.8 billion in new senior=20 unsecured notes carry Moody's Investors Service Ba2 rating. =20 =20 BRILLIANT FAIR: Joint Liquidators Cease to Act ---------------------------------------------- Wu Shek Chun Wilfred and Yu Tak Yee Beryl ceased to act as joint=20 and several liquidators of Brilliant Fair (Hong Kong) Ltd on=20 Dec. 7, 2006. =20 As reported in the Troubled Company Reporter - Asia Pacific,=20 Messrs. Wilfred and Beryl presented the company's wind-up=20 account during the final meeting of the members and creditors on=20 Dec. 7. =20 The former Liquidators can be reached at: =20 Wu Shek Chun Wilfred=20 Yu Tak Yee Beryl YWC & Partners 17/F, Punfet Building 701 Nathan Road, Kowloon Hong Kong =20 =20 CASCADES INC: Closes Offering of Subscription Receipts ------------------------------------------------------ Cascades Inc. has closed its offering of 15,095,000 subscription=20 receipts at a price of CDN13.25 per Subscription Receipt for=20 gross proceeds of CDN200,008,750. =20 =20 The gross proceeds from the offering will be held in escrow=20 pending closing of the acquisition by Cascades of Domtar's 50%=20 interest in Norampac Inc. which is expected to close on Dec. 29=20 as a satisfactory response from the Competition Bureau was=20 received on Dec. 14. =20 Each subscription receipt entitles the holder thereof to=20 receive, upon closing of the acquisition and without payment of=20 additional consideration or further action, one common share of=20 Cascades. Upon closing of the acquisition, the net proceeds to=20 Cascades, after deducting the underwriters' fee and other=20 expenses of the Offering, will amount to approximately=20 CDN191 million and will be used to finance a portion of the=20 acquisition. =20 The subscription receipts will be listed for trading on the=20 Toronto Stock Exchange under the symbol "CAS.R". =20 The offering was underwritten by a syndicate jointly led by CIBC=20 World Markets Inc., National Bank Financial Inc., and Scotia=20 Capital Inc., and including BMO Nesbitt Burns Inc., Desjardins=20 Securities Inc., RBC Dominion Securities Inc. and TD Securities=20 Inc. =20 Private Placement =20 Cascades had also closed its concurrent CDN50 million private=20 placement of subscription receipts at a price of CDN13.25 per=20 subscription receipt. The gross proceeds from the private=20 placement will also be used to finance a portion of the=20 acquisition.=20 =20 As previously disclosed, Cascades has reached an agreement in=20 principle with Domtar Inc. on Dec. 5 to purchase Domtar's 50%=20 interest in Norampac Inc., for a cash consideration of=20 CDN$560 million. =20 The company further disclosed that it has obtained commitments=20 for the financing necessary to complete the transaction. This=20 financing will replace the existing credit facility and provide=20 for a new CDN1.05 billion credit facility consisting of a=20 CDN750 million five-year revolving facility, a CDN100 million=20 six-year term facility and an unsecured bridge facility of=20 CDN200 million. =20 About Norampac =20 Norampac owns eight containerboard mills and 26 corrugated=20 products plants in the United States, Canada and France. With=20 annual production capacity of more than 1.45 million short tons, Norampac is the largest containerboard producer in Canada and=20 the seventh largest in North America. Norampac, which is also a=20 majorCanadian manufacturer of corrugated products, is a joint=20 venture company owned by Domtar Inc. (TSX: DTC) and Cascades=20 Inc. (TSX:CAS). =20 About Domtar =20 Headquartered in Montreal, Quebec, Domtar Inc. (TSX/NYSE: DTC) -- http://www.domtar.com/-- produces uncoated freesheet paper=20 in North America. The company also a manufactures business=20 papers, commercial printing and publication papers, and=20 technical and specialty papers. Domtar manages according to=20 internationally recognized standards 18 million acres of=20 forestland in Canada and the United States, and produces lumber=20 and other wood products. Domtar has 10,000 employees across=20 North America. The company also has a 50% investment interest=20 in Norampac Inc., a Canadian producer of containerboard. =20 About Cascades =20 Founded in 1964, Cascades Inc. -- http://www.cascades.com/-- =20 produces, transforms, and markets packaging products, tissue=20 paper and fine papers, composed mainly of recycled fibres. =20 Cascades employs nearly 15,600 men and women who work in some=20 140 modern and flexible production units located in North=20 America, in Europe and in Asia. Cascades' management=20 philosophy, its more than 40 years of experience in recycling,=20 its continued efforts in research and development are strengths=20 which enable the company to create new products for its clients=20 and thus offer superior performance to its shareholders. The=20 Cascades shares trade on the Toronto stock exchange under the=20 ticker symbol CAS. The company has operations in Hong Kong,=20 Colombia, and in Europe. =20 * * * =20 Standard & Poor's Ratings Services rated the Cascades Inc.'s=20 7-1/4% Senior Notes due 2013 at BB+. =20 =20 CASCADES INC: Moody's Confirms Ba2 Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service confirmed Cascades Inc.'s Ba2=20 corporate family rating and its Ba3 senior unsecured rating.=20 =20 Moody's also assigned Baa3 ratings to Cascades' new=20 CDN650 million senior secured revolver and CDN100 million senior=20 secured term loan. Finally, Moody's announced that it will=20 upgrade Norampac's senior unsecured rating to Ba3 from B1 upon=20 completion of the acquisition by Cascades of the 50% of Norampac=20 it does not already own, and on the basis that the Norampac=20 notes will become a direct obligation of Cascades when the=20 liquidation of Norampac into Cascades is complete.=20 =20 The ratings reflect the overall probability of default of=20 Cascades, to which Moody's affirms the PDR of Ba2. The senior=20 unsecured ratings of Ba3 reflect a loss given default of LGD5=20 (72%) and the senior secured ratings of Baa3 reflect a loss=20 given default of LGD2 (18%). The existing revolver and term=20 loan ratings of Cascades and Norampac will be withdrawn when the=20 acquisition of Norampac is complete. This completes the review=20 of Cascades begun on Dec. 5 when the acquisition of Norampac was=20 announced. The rating outlook is stable. =20 Cascades' Ba2 corporate family rating reflects the diversity=20 derived from its boxboard, packaging and tissue businesses and,=20 with its full consolidation of Norampac, its significant=20 position in the Canadian containerboard segment. The ratings=20 also consider that Cascades and Norampac will have paid down=20 approximately CDN190 million of debt this year, prior to=20 Cascades increasing debt to fund a portion of the Norampac=20 acquisition. At the same time, the ratings consider the=20 CDN310 million of incremental debt taken on to fund the=20 acquisition and Cascades' debt protection measures, which are=20 slightly weak for the rating.=20 =20 However, Moody's notes that Cascades is issuing CDN250 million=20 of new equity and that, notwithstanding the incremental debt=20 taken on to fund the acquisition, its debt protection measures=20 improve somewhat given the full consolidation of Norampac's more=20 lowly levered operations, coupled with access to 100% of=20 Norampac's cash flow. The Ba2 rating also reflects Cascades'=20 exposure to the stronger Canadian dollar, to cyclical pricing,=20 particularly in the containerboard and boxboard segments, and to=20 volatile raw material costs, especially recycled fibers, as well=20 as energy and chemicals. The ratings also reflect the company's=20 penchant for conducting relatively small, but debt financed=20 acquisitions. The rating outlook is stable. =20 Ratings confirmed: =20 Cascades Inc. =20 * Corporate Family Rating: Ba2 =20 * PDR: Ba2 =20 * US$675 mm Sr. Unsecured Notes due 2013, Ba3 =20 Ratings to be upgraded upon completion of the acquisition=20 of Norampac: =20 Norampac Inc. =20 * US$250 mm 6.75% Sr. Unsecured Notes due 2013,=20 to Ba3 from B1 =20 Ratings to be withdrawn upon completion of the acquisition=20 of Norampac: =20 Cascades Inc. =20 * CDN450 mm Revolving Facility due 2010, Ba1 =20 * CDN100 mm Term Loan Facility due 2012, Ba1 =20 Norampac Inc. =20 * Corporate Family Rating, Ba3, RUR, Direction Uncertain =20 * PDR: Ba3, RUR, Direction Uncertain =20 * CDN325 mm Revolving Facility due 2011, Ba2, RUR,=20 Direction Uncertain =20 The most recent rating action for Cascades was to place its=20 ratings under review for possible downgrade on Dec. 5. The most=20 recent rating action for Norampac was to place its ratings under=20 review, with direction uncertain, also on Dec. 5. =20 Headquartered in Montreal, Quebec, Norampac is a containerboard=20 producer and had sales in 2005 of CDN1.3 billion. =20 Founded in 1964, Cascades Inc. -- http://www.cascades.com/-- =20 produces, transforms, and markets packaging products, tissue=20 paper and fine papers, composed mainly of recycled fibres. =20 Cascades employs nearly 15,600 men and women who work in some=20 140 modern and flexible production units located in North=20 America, in Europe and in Asia. Cascades' management=20 philosophy, its more than 40 years of experience in recycling,=20 its continued efforts in research and development are strengths=20 which enable the company to create new products for its clients=20 and thus offer superior performance to its shareholders. The=20 Cascades shares trade on the Toronto stock exchange under the=20 ticker symbol CAS. The company has operations in Hong Kong,=20 Colombia, and Europe. =20 =20 CASCADES INC: Moody's Holds Ba2 Corporate Family Rating=20 ------------------------------------------------------- Moody's Investors Service confirmed Cascades Inc.'s Ba2=20 corporate family rating and its Ba3 senior unsecured rating. =20 Moody's also assigned Baa3 ratings to Cascades' new=20 CDN$650 million senior secured revolver and CDN$100 million=20 senior secured term loan. =20 Finally, Moody's announced that it will upgrade Norampac's=20 senior unsecured rating to Ba3 from B1 upon completion of the=20 acquisition by Cascades of the 50% of Norampac it does not=20 already own, and on the basis that the Norampac notes will=20 become a direct obligation of Cascades when the liquidation of=20 Norampac into Cascades is complete. =20 The ratings reflect the overall probability of default of=20 Cascades, to which Moody's affirms the PDR of Ba2. The senior=20 unsecured ratings of Ba3 reflect a loss given default of LGD5=20 (72%) and the senior secured ratings of Baa3 reflect a loss=20 given default of LGD2 (18%). The existing revolver and term=20 loan ratings of Cascades and Norampac will be withdrawn when the=20 acquisition of Norampac is complete. This completes the review=20 of Cascades begun on Dec. 5, 2006, when the acquisition of=20 Norampac was announced. The rating outlook is stable. =20 Cascades' Ba2 corporate family rating reflects the diversity=20 derived from its boxboard, packaging and tissue businesses and,=20 with its full consolidation of Norampac, its significant=20 position in the Canadian containerboard segment. The ratings=20 also consider that Cascades and Norampac will have paid down=20 approximately CDN$190 million of debt this year, prior to=20 Cascades increasing debt to fund a portion of the Norampac=20 acquisition. =20 =20 At the same time, the ratings consider the CDN$310 million of=20 incremental debt taken on to fund the acquisition and Cascades'=20 debt protection measures, which are slightly weak for the=20 rating. However, Moody's notes that Cascades is issuing CDN$250=20 million of new equity and that, notwithstanding the incremental=20 debt taken on to fund the acquisition, its debt protection=20 measures improve somewhat given the full consolidation of=20 Norampac's more lowly levered operations, coupled with access to=20 100% of Norampac's cash flow. The Ba2 rating also reflects=20 Cascades' exposure to the stronger Canadian dollar, to cyclical=20 pricing, particularly in the containerboard and boxboard=20 segments, and to volatile raw material costs, especially=20 recycled fibers, as well as energy and chemicals. The ratings=20 also reflect the company's penchant for conducting relatively=20 small, but debt financed acquisitions. The rating outlook is=20 stable. =20 Ratings confirmed: =20 Cascades Inc.: =20 -- Corporate Family Rating: Ba2 =20 -- PDR: Ba2 =20 -- US$675 million Sr. Unsecured Notes due 2013, Ba3 =20 Ratings to be upgraded upon completion of the acquisition of=20 Norampac: =20 Norampac Inc. =20 -- US$250 million 6.75% Sr. Unsecured Notes due 2013, to Ba3 from B1 =20 Ratings to be withdrawn upon completion of the acquisition of=20 Norampac: =20 Cascades Inc. =20 -- CDN$450 million Revolving Facility due 2010, Ba1 =20 -- CDN$100 million Term Loan Facility due 2012, Ba1 =20 Norampac Inc. =20 -- Corporate Family Rating, Ba3, RUR, Direction Uncertain =20 -- PDR: Ba3, RUR, Direction Uncertain =20 -- CDN$325 million Revolving Facility due 2011, Ba2, RUR, Direction Uncertain =20 The most recent rating action for Cascades was to place its=20 ratings under review for possible downgrade on Dec. 5, 2006. =20 The most recent rating action for Norampac was to place its=20 ratings under review, with direction uncertain, also on Dec. 5,=20 2006. =20 Headquartered in Montreal, Quebec, Norampac is a containerboard=20 producer and had sales in 2005 of CDN$1.3 billion. =20 Headquartered in Kingsey Falls, Quebec, Cascades Inc. is a=20 packaging and paper company producing boxboard, containerboard,=20 specialty packaging products and tissue, and had sales in 2005=20 of CDN$3.5 billion. =20 The company has operations in Hong Kong, Colombia, and Europe. =20 =20 CHIAO TUNG: Members Pass Resolution to Wind Up Firm --------------------------------------------------- At an extraordinary general meeting held on Dec. 14, 2006, the=20 members of Chiao Tung University Alumni Association (Hong Kong)=20 Ltd passed a special resolution to voluntarily wind up the=20 company's operations. =20 In this regard, Sung Mi Yin was appointed as the company's=20 liquidator. =20 The Liquidator can be reached at: =20 Sung Mi Yin=20 Suite No. A, 11/F Ritz Plaza, 122 Austin Road Tsimshatsui, Kowloon Hong Kong =20 =20 COUDERT BROTHERS: Taps McGrigors LLP as Special Counsel ------------------------------------------------------- Coudert Brothers LLP asks the U.S. Bankruptcy Court for the=20 Southern District of New York for permission to employ McGrigors=20 LLP as its English special counsel, nunc pro tunc to Sept. 22,=20 2006. =20 McGrigors will represent the Debtor with respect to potential=20 malpractice claims in England and general issues related to the=20 wind-down of Debtor's London office. The firm's=20 responsibilities will include serving as counsel of record in=20 Norman's Bay Limited v. Coudert Brothers, in the High Court of=20 England and Wales -- an action arising out of allegations of=20 malpractice. =20 =20 The hourly rates of the McGrigors attorneys who are expected to=20 perform services for the Debtor are: =20 Level of Employment Hourly Rate ------------------- ----------- Partners US$680 Associates US$555 Assistant Solicitors US$270 to US$485=20 Trainee Solicitors US$195 =20 The Debtor owes McGrigors approximately US$46,731 for services=20 the firm rendered prepetition. =20 Allan David Reason, a Partner at McGrigors, assures the Court=20 that his firm does not hold any interest materially adverse to=20 the Debtor's estate. =20 Mr. Reason can be reached at: =20 McGrigors LLP 5 Old Bailey London EC4M 7BA, England=20 =20 Coudert Brothers LLP was an international law firm specializing=20 in complex cross border transactions and dispute resolution. =20 The firm had operations in Australia and China. The Debtor=20 filed for Chapter 11 protection on Sept. 22, 2006 (Bankr.=20 S.D.N.Y. Case No. 06-12226). John E. Jureller, Jr., Esq., and=20 Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents=20 the Debtor in its restructuring efforts. Brian F. Moore, Esq.,=20 and David J. Adler, Esq., at McCarter & English, LLP, represent=20 the Official Committee Of Unsecured Creditors. In its schedules=20 of assets and debts, Coudert listed total assets of=20 US$29,968,033 and total debts of US$18,261,380. The Debtor's=20 exclusive period to file a chapter 11 plan expires on Jan. 20,=20 2007. =20 =20 DAVAL HK: Schedules Final Meeting on January 23 ----------------------------------------------- Daval Hong Kong Ltd, which is in creditors' voluntary=20 liquidation, will hold a final general meeting for its members=20 and creditors at 3/F, Chinachem Tower, 34-37 Connaught Road Central, Hong Kong on Jan. 23, 2007, at 10:00 a.m. and 10:30=20 a.m., respectively. =20 At the meetings, the liquidators will present the account of the=20 company's wind-up proceedings and property disposal exercises. =20 =20 FERRO CORPORATION: Files 2006 Third Quarter Financial Report ------------------------------------------------------------ Ferro Corporation has filed its Quarterly Report on Form 10-Q=20 with the U.S. Securities and Exchange Commission for the three- month period ended Sept. 30, 2006. With the filing, the company=20 is now current in its financial reports to the SEC. =20 Net income from continuing operations was US$5.4 million,=20 compared with US$7.2 million in the third quarter of 2005. =20 Sales for the third quarter ended Sept. 30, 2006, were US$500.6=20 million, an increase of 7.4% from the third quarter of 2005. =20 =20 "The third quarter results show good sales growth along with=20 solid growth in total segment income," said President and CEO=20 James Kirsch. "Total company results were not up to our=20 original expectations, however, we expect to deliver a solid=20 fourth quarter that will provide further evidence of the=20 transformation we are accomplishing within Ferro." =20 Included in the third quarter net income from continuing=20 operations were net pre-tax charges of US$1.3 million, primarily=20 related to accelerated depreciation resulting from the company's=20 restructuring program in Europe.=20 =20 Third Quarter Results =20 Sales for the third quarter showed growth in the Performance=20 Coatings, Electronic Materials, Polymer Additives, and Color and=20 Glass Performance Materials segments, continuing the growth=20 trends seen through the first and second quarters of 2006. =20 Sales were down in the Specialty Plastics and Other segments=20 compared with the third quarter of 2005. =20 Most of the revenue increase for the quarter was due to=20 increases in average selling prices, including changes in=20 product mix and price increases. Sales benefited less than 2=20 percent from favorable changes in currency exchange rates. =20 Gross margins for the third quarter were 19.7% of sales. =20 Included in the cost of sales during the third quarter were=20 charges of US$1.6 million for accelerated depreciation related=20 to previously announced restructuring programs in Europe. =20 Higher precious metal prices, which are generally passed through=20 to customers without mark-up, also had a negative impact on=20 gross margin percentage for the quarter. =20 Selling, general and administrative expenses for the third=20 quarter were US$74.1 million, or 14.8% of sales. SG&A expense=20 was down by US$1.2 million compared with the prior-year period=20 and was lower as a percent of sales than the 16.1% recorded in=20 the third quarter of 2005. =20 Total segment income for the third quarter was US$33.9 million,=20 an increase of 9.7% from the third quarter of 2005. =20 As of the end of September, total debt, including off-balance- sheet arrangements, was US$684.3 million, an increase of=20 US$129.6 million from the end of 2005. This increase primarily=20 was the result of increased deposit requirements for precious=20 metal consignment arrangements and for working capital to=20 support increased sales. Deposits for precious metal=20 consignments were US$93 million at the end of the third quarter. =20 The company expects to reduce the amount of material under=20 consignment requiring cash deposits by year-end and anticipates=20 that a majority of the deposits will be returned by the end of=20 the first quarter of 2007. =20 Interest expense for the quarter increased by US$4.7 million=20 from the third quarter of 2005, reflecting increases in the=20 company's debt and higher interest rates. Miscellaneous=20 income/expense was lower by US$4.6 million in the 2006 third=20 quarter, compared to 2005. The change was driven by a reduction=20 of US$5.5 million in mark-to-market charges for natural gas=20 supply contracts compared to the prior-year period. =20 Fourth Quarter Guidance =20 Sales for the fourth quarter are expected to be approximately=20 $500 million to US$510 million, reflecting continued growth=20 across multiple business segments. Sales growth in the fourth=20 quarter, compared to the fourth quarter of 2005, is expected to=20 be led by the company's Electronic Materials, Performance=20 Coatings and Color and Glass Performance Materials segments. =20 As previously indicated, the company expects to recognize=20 charges related to its restructuring programs during the fourth=20 quarter. The current estimate of the pre-tax charges is US$23=20 million. These charges will reduce after-tax earnings by=20 approximately US$0.35 per share. Including these charges, the=20 net loss for the fourth quarter is expected to be in the range=20 of US$0.18 to US$0.22 per share. =20 About Ferro Corp =20 Headquartered in Cleveland, Ohio, Ferro Corporation --=20 http://www.ferro.com/-- is a global producer of an array of=20 performance materials sold to a range of manufacturers in=20 approximately 30 markets throughout the world. Ferro applies=20 certain core scientific expertise in organic chemistry,=20 inorganic chemistry, polymer science and material science to=20 develop coatings for ceramics and metal; materials for passive=20 electronic components; pigments; enamels, pastes and additives=20 for the glass market; glazes and decorating colors for the=20 dinnerware market; specialty plastic compounds and colors;=20 polymer additives; specialty chemicals for the pharmaceuticals=20 and electronics markets, and active ingredients and high-purity=20 carbohydrates for pharmaceutical formulations. The company's=20 products are classified as performance materials, rather than=20 commodities, because they are formulated to perform specific and=20 important functions both in the manufacturing processes and in=20 the finished products of its customers =20 Ferro Corp. has global locations in Argentina, Australia,=20 Belgium, Brazil and China, among others. =20 The Troubled Company Reporter - Asia Pacific reported on Oct. 5,=20 2006, that Standard & Poor's Ratings Services' 'B+' long-term=20 corporate credit and 'B' senior unsecured debt ratings on Ferro=20 Corp. remained on CreditWatch with negative implications, where=20 they were placed Nov. 18, 2005.=20 =20 Standard & Poor's will resolve the CreditWatch after Ferro files=20 its 2005 full year and 2006 quarterly financial statements,=20 which are expected by Sept. 30th and Dec. 31st, respectively. =20 =20 GLOBAL CROSSING: Unit Prices Offering of 11.75% Sr. Sec. Notes=20 -------------------------------------------------------------- Global Crossing (UK) Telecommunications Ltd. reported that=20 Global Crossing (UK) Finance Plc, a wholly owned finance=20 subsidiary of GCUK, priced an offering of 11.75% Senior Secured=20 Notes due 2014. =20 The GBP52 million aggregate principal amount of Notes was priced=20 at 109.25% of par value for gross proceeds of GBP56.8 million. =20 The Notes will be issued under the indenture, dated as of Dec. 23, 2004, pursuant to which Global Crossing (UK) Finance=20 Plc previously issued US$200 million aggregate principal amount=20 of its dollar-denominated 10.75% Senior Secured Notes due 2014=20 and 105 million pounds sterling aggregate principal amount of=20 its sterling-denominated 11.75% Senior Secured Notes due 2014. =20 The sale of the GBP52 million in aggregate principal amount of=20 Notes is expected to close on Dec. 28, 2006. =20 Proceeds from the offering will be used to acquire Fibernet=20 Group Ltd. and certain of its subsidiaries from Global Crossing=20 Acquisitions (UK) Ltd., an affiliated acquisition vehicle that=20 acquired Fibernet pursuant to an offer that was declared wholly=20 unconditional on Oct. 11, 2006, and to pay related fees and=20 expenses. Upon completion of the acquisition by GCUK, Fibernet=20 and its subsidiaries will guarantee the Notes and all other=20 obligations under the indenture. =20 The Notes were sold only to qualified institutional buyers in=20 the United States under Rule 144A and to qualified investors=20 outside the United States that are non-US. Persons under=20 Regulation S and have not been and will not be registered under=20 the U.S. Securities Act of 1933, as amended, or any other=20 applicable securities laws. The Notes may not be offered or=20 sold in the US absent registration or an applicable exemption=20 from registration requirements. =20 About GCUK =20 Global Crossing (UK) Telecommunications Ltd. provides a full range of managed telecommunications services in a secure environment ideally suited for IP-based business applications. =20 The company provides managed voice, data, Internet and e- commerce solutions to the strong and established commercial customer base, including more than 100 UK government departments, as well as systems integrators, rail sector customers and major corporate clients. In addition, GCUK provides carrier services to national and international communications service providers. =20 Global Crossing (UK) Telecommunications operates a high-capacity UK network comprising over 5,600 route miles of fiber optic cable connecting 150 towns and cities and reaching within just over one mile of 64% of UK businesses. The UK network is linked into the wider Global Crossing network that connects more than 300 major cities and 30 countries worldwide, and delivers services to more than 600 cities, 60 countries and 6 continents around the globe. =20 About Global Crossing =20 Headquartered in Florham Park, New Jersey, Global Crossing Ltd.=20 -- http://www.globalcrossing.com/-- provides telecommunication=20 services over the world's first integrated global IP-based=20 network, which reaches 27 countries and more than 200 major=20 cities around the globe, including Hong Kong. Global Crossing=20 serves many of the world's largest corporations, providing a=20 full range of managed data and voice products and services. The=20 company filed for chapter 11 protection on Jan. 28, 2002 (Bankr.=20 S.D.N.Y. Case No. 02-40188). When the Debtors filed for=20 protection from their creditors, they listed US$25,511,000,000=20 in total assets and US$15,467,000,000 in total debts. Global=20 Crossing emerged from chapter 11 on Dec. 9, 2003. =20 At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet=20 reflected a US$131 million stockholders' deficit. At June 30,=20 2006, Global th company reported US$1.87 billion in total assets=20 and US$1.95 billion in total liabilities, resulting to a=20 stockholders' deficit of US$86 million. It also reported a=20 US$173 million stockholders' deficit on Dec. 31, 2005. =20 =20 GLOBAL MARCH: Will Pay Dividend on December 29 ---------------------------------------------- Global March Ltd will pay the first and final dividend to=20 unsecured creditors on Dec. 29, 2006. =20 The payment will be administered at 20/F, Prince's Building=20 Central, Hong Kong. =20 The Troubled Company Reporter - Asia Pacific previously reported=20 that the company's creditors were required to submit their=20 proofs of claim before Sept. 25, 2006. =20 The company's liquidator can be reached at: =20 John J. Toohey 22/F, Prince's Building Central, Hong Kong =20 =20 GREEN STAR ASIA: Appoints Mak Man Cheung as Liquidator ------------------------------------------------------ On Dec. 12, 2006, Mak Man Cheung was appointed as liquidator of=20 Green Star Asia Ltd by virtue of a special resolution. =20 Mr. Cheung's appointment was confirmed at the creditors' meeting=20 held on Dec. 19, 2006. =20 The Liquidator can be reached at: =20 Mak Man Cheung Chartered Accountant Suites 1801 & 1802 Alliance Building 130-136 Connaught Road, Central Hong Kong =20 =20 HARVEST FOCUS: Members Agree to Shut Down Business Operations ------------------------------------------------------------- The members of Harvest Focus Development Ltd on Dec. 11, 2006,=20 passed a special resolution to voluntarily liquidate the=20 company's business. =20 Subsequently, Thomas Andrew Corkhill and Iain Ferguson Bruce=20 were appointed as joint and several liquidators. =20 The Joint and Several Liquidators can be reached at: =20 Thomas Andrew Corkhill=20 Iain Ferguson Bruce=20 8th Gloucester Tower, The Landmark 15 Queen's Road, Central Hong Kong =20 =20 KA YAU: Members Opt for Voluntary Wind-Up ----------------------------------------- On Dec. 15, 2006, the members of Ka Yau Tong Ltd met and passed=20 a special resolution to voluntarily wind up the company's=20 operations. =20 Accordingly, Chan Yim Wah was appointed as liquidator =20 The Liquidator can be reached at: =20 Chan Yim Wah=20 Flat B, 4/F Haven Commercial Building Nos. 6-8 Tsing Fung Street, North Point Hong Kong =20 =20 METROPOLITAN FINANCE: Members Resolve to Wind Up Operations ----------------------------------------------------------- At an extraordinary general meeting held on Dec. 8, 2006, the=20 members of Metropolitan Finance Corporation Ltd passed a special=20 resolution to voluntarily wind up the company's operations. =20 Chuvit Pornrattanayakorn was consequently appointed as=20 liquidator. =20 The Liquidator can be reached at: =20 Chuvit Pornrattanayakorn=20 Flat B, 14/F Block 2, Golden Dragon Industrial Centre 162-170 Tai Lin Pai Road Kwai Chung, New Territories Hong Kong =20 About Metropolitan Finance =20 Metropolitan Finance Corporation Ltd is engaged with short-term=20 business credit institutions, except agricultural credit=20 institutions. =20 The company is located in Central District, HK, Hong Kong. =20 =20 VASTHEME INTERNATIONAL: Annual Meetings Slated for January 9 ------------------------------------------------------------ The annual meetings of the members and creditors of Vastheme=20 International Company Ltd will be held at 27/F, Alexandra House,=20 18 Chater Road, Central, Hong Kong on Jan. 9, 2007, at 9:30 a.m.=20 and 10:00 a.m., respectively. =20 During the meeting, the liquidators will present an account of=20 their acts and dealings regarding the company's wind-up during=20 the preceding year. =20 The joint and several liquidators can be reached at: =20 Gabriel CK Tam Jacky CW Muk Bank of America Tower=20 12 Harcourt Road=20 Hong Kong=20 Telephone: 852 2584 6222=20 Fax: 852 2530 0484 =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D I N D I A =3D=3D=3D=3D=3D=3D=3D=3D=3D =20 CONEXANT SYSTEMS: Posts US$122.6 Million Net Loss in Fiscal 2006 ---------------------------------------------------------------- Conexant Systems Inc. reported a US$122.6 million net loss on=20 US$970.8 million of net revenues for the fiscal year ended Sept. 29, 2006, compared with a US$176 million net loss on=20 US$722.7 million of net revenues for the fiscal year ended Sept. 30, 2005. =20 The decrease in net loss is primarily due to the higher gross=20 margin of US$446 million in fiscal 2006, compared to a US$228.8 million gross margin in fiscal 2005. =20 Net revenues increased 34% to US$970.8 million in fiscal 2006=20 from US$722.7 million in fiscal 2005. This increase was driven=20 by a 39% increase in unit volume shipments, which was partially=20 offset by a 3% decrease in average selling prices. =20 =20 Gross margin percentage for fiscal 2006 was 46% compared with=20 32% for fiscal 2005. The higher gross margin percentage in=20 fiscal 2006 can be attributed to the benefits of the company's=20 product cost-reduction initiatives, as well as more stable=20 product pricing. In addition, the company also recorded a=20 US$17.5 million gain resulting from the cancellation of a wafer=20 supply and services agreement with Jazz Semiconductor, Inc.,=20 which was recorded as a reduction of cost of goods sold. =20 =20 At Sept. 29, 2006, the company's balance sheet showed US$1.6 billion in total assets, US$1.1 billion in total=20 liabilities, and US$510,098 in total stockholders' equity. =20 Cash, cash equivalents and marketable securities decreased=20 US$39.2 million between Sept. 30, 2005 and Sept. 29, 2006. The=20 decline in fair value of the company's investment in Skyworks=20 Solutions accounted for US$11.3 million of this decrease. The=20 remaining decline of US$27.9 million is attributable to net cash=20 outflow from operating and investing activities, including the=20 US$70 million payment to Texas Instruments as a result of a=20 patent litigation settlement, offset by net cash provided by=20 financing activities of US$88.6 million during the period. =20 Full-text copies of the company's financial statements for the=20 year ended Sept. 29, 2006, are available for free at: =20 http://researcharchives.com/t/s?176f =20 Headquartered in Newport Beach, CA, Conexant Systems, Inc. --=20 http://www.conexant.com/-- is a leading provider of integrated =20 circuits for the communications and broadband digital home=20 markets. The company has operations in India, Taiwan, China,=20 Japan, Korea, Bristol, and Germany. =20 The Troubled Company Reporter - Asia Pacific reported on Nov. 1,=20 2006, that Standard & Poor's Ratings Services raised its=20 corporate credit and other ratings on Conexant Systems Inc.,=20 reflecting improved liquidity and operating results. The=20 corporate credit rating was raised to 'B' from 'B-'. The=20 outlook was revised to stable from negative. =20 At the same time, Standard & Poor's assigned 'B+' senior secured=20 rating and '1' recovery rating to the company's proposed US$250=20 million senior secured floating rate notes due 2010, indicating=20 that investors can expect full (100%) recovery of principal in=20 the event of payment default. The rating is based on=20 preliminary offering statements and is subject to review upon=20 final documentation.=20 =20 Also on Nov. 1, the TCR-AP reported that Moody's Investors=20 Service assigned a B1 rating to the senior secured floating rate=20 notes and a Caa1 rating to the corporate family of Conexant=20 Systems, Inc. =20 =20 CONEXANT SYS: Inks Pact Extending Credit Maturity to Nov. 2007 -------------------------------------------------------------- Conexant Systems Inc., Conexant USA LLC's wholly owned=20 subsidiary, and Wachovia Bank National Association signed an=20 amendment to the credit and security agreement dated as of Nov.=20 29, 2005. =20 The amendment extends the termination date of the Credit=20 Agreement to Nov. 28, 2007, and the terms of the receivables=20 purchase agreement and the servicing agreement between the=20 Company and Conexant USA, which was subject to certain=20 conditions precedent, including Conexant USA's renewal of its=20 international credit insurance policy, which occurred on Nov.=20 29, 2006. =20 Headquartered in Newport Beach, CA, Conexant Systems, Inc. --=20 http://www.conexant.com/-- is a leading provider of integrated =20 circuits for the communications and broadband digital home=20 markets. The company has operations in India, Taiwan, China,=20 Japan, Korea, Bristol, and Germany. =20 The Troubled Company Reporter - Asia Pacific reported on Nov. 1,=20 2006, that Standard & Poor's Ratings Services raised its=20 corporate credit and other ratings on Conexant Systems Inc.,=20 reflecting improved liquidity and operating results. The=20 corporate credit rating was raised to 'B' from 'B-'. The=20 outlook was revised to stable from negative. =20 At the same time, Standard & Poor's assigned 'B+' senior secured=20 rating and '1' recovery rating to the company's proposed US$250=20 million senior secured floating rate notes due 2010, indicating=20 that investors can expect full (100%) recovery of principal in=20 the event of payment default. The rating is based on=20 preliminary offering statements and is subject to review upon=20 final documentation.=20 =20 Also on Nov. 1, the TCR-AP reported that Moody's Investors=20 Service assigned a B1 rating to the senior secured floating rate=20 notes and a Caa1 rating to the corporate family of Conexant=20 Systems, Inc. =20 =20 GENERAL MOTORS: Applauds ITC's Ruling Revoking Steel Duty Orders ---------------------------------------------------------------- The six largest automobile companies -- DaimlerChrysler AG, Ford Motor Corp., General Motors Corp., Honda, Nissan, and Toyota Motor North America -- with manufacturing facilities in the United States has applauded a decision by the U.S. International Trade Commission to revoke anti-dumping and countervailing duty orders on "corrosion resistant steel" from Australia, Canada, France, and Japan. The ITC left orders in place on imports from Germany and Korea. =20 "We are pleased that the ITC revoked most of the duties," said Stephen E. Biegun, Vice President, International Governmental Affairs, Ford Motor Company. =20 "All of these duties are outdated and hurt American manufacturing competitiveness and U.S. jobs while needlessly helping a steel industry that is now profitable and healthy." =20 "[The] decision is a major step forward in restoring needed competition to the U.S. steel market," Toyota Motor North America group vice president Josephine Cooper said. =20 "The ITC's decision supports both a strong steel industry and a strong auto industry, and we look forward to working with our colleagues in the steel industry to continue to strengthen manufacturing in the United States." =20 The duties on corrosion resistant steel have been in place since 1993 on imports from six countries. As a result of [the] vote, duties on imports from Australia, Canada, France, and Japan are revoked, while duties on imports from Germany and Korea will be retained until the next review in 2011. =20 The six auto manufacturers -- DaimlerChrysler, Ford, General Motors, Honda, Nissan and Toyota -- joined together for the first time as a group in a trade case to urge revocation of duties on corrosion-resistant steel because of their serious concern regarding access to, and availability of, competitively- priced steel. During the hearing, the companies demonstrated that the U.S. steel industry is now profitable, has healthy long-term prospects, and no longer needs government protection. =20 About General Motors =20 General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the =20 world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including India, and its vehicles are sold in 200 countries. =20 * * * =20 Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed=20 its 'B' corporate credit rating and other ratings on General=20 Motors Corp. and removed them from CreditWatch with negative=20 implications, where they were placed on March 29, 2006. =20 =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,=20 9% rating to the proposed US$1.5 Billion secured term loan. The=20 term loan is expected to be secured by a first priority=20 perfected security interest in all of the US machinery and=20 equipment, and special tools of GM and Saturn Corporation. =20 =20 RELIANCE INDUSTRIES: Inks Cooperation Deal with Essar Oil --------------------------------------------------------- Reliance Industries Ltd and Essar Oil, used to be seen as=20 biggest Rivals in India, are joining hands to cooperate in=20 distributing each other's products, moneycontrol.com reports. =20 "The two companies will join hands to take forward their fuel=20 businesses to the far off corners of India," the finance portal=20 states. "The co-operation makes sense." =20 Awadhesh N Sinha, Essar Oil managing director admitted the=20 competition with RIL in the market place. "But when it comes to=20 infrastructure sharing, cutting down your logistics cost, your=20 infrastructure cost, production cost, you cooperate," he told=20 moneycontrol.com. =20 =20 About Reliance Industries =20 Reliance Industries Ltd -- http://www.ril.com/-- is engaged =20 in the exploration and production sector. The company is=20 organized into three major business segments, which include=20 Exploration and Production of oil and gas; Refining and=20 Marketing of petroleum products, and Petrochemicals, including=20 the manufacturing and marketing of polymers, polyester,=20 polyester intermediates and chemicals. RIL's operations capture=20 value addition at every stage, from the production of crude oil=20 and gas to polyester, polymer and chemical products, and finally=20 to the production of textiles. RIL also has exploration and=20 production interests in India, Yemen and Oman. The company=20 operates mainly in India but has business activities and=20 customers in more than 100 countries around the world. =20 =20 Fitch Ratings gave Reliance Industries Ltd's foreign currency=20 long-term debt, long-term issuer default and local currency=20 long-term debt BB+ ratings effective on December 15, 2005. =20 Moody's Investors Service gave the company 'Ba2' long-term=20 corporate family, issuer, and senior unsecured debt ratings=20 effective March 17, 2005. =20 =20 RELIANCE INDUSTRIES: Sees Opportunities in Kurdistan ---------------------------------------------------- Reliance Industries Ltd is reportedly considering investing in=20 Kurdistan. =20 According to the Business Standard, Reliance Industries is=20 seeking oil fields in the region and is even in talks with the=20 Kurdistan Regional Government for possible tie-ups. =20 It is also thinking of buying fields in Kurdistan as its own,=20 the report states. =20 "Reliance is also in talks with an Indian company to jointly=20 explore potential oil fields in Kurdistan," BS cites a source=20 close to the development as saying. "A deal could be finalized=20 in six months," the source added. =20 Kurdistan is known for its rich underground resources including,=20 oil. According to http://en.wikipedia.orgKRG-controlled parts=20 of Iraqi Kurdistan only by itself is estimated to have around=20 45bn barrels of oil reserves making it 6th largest in the world. =20 About Reliance Industries =20 Reliance Industries Ltd -- http://www.ril.com/-- is engaged =20 in the exploration and production sector. The company is=20 organized into three major business segments, which include=20 Exploration and Production of oil and gas; Refining and=20 Marketing of petroleum products, and Petrochemicals, including=20 the manufacturing and marketing of polymers, polyester,=20 polyester intermediates and chemicals. RIL's operations capture=20 value addition at every stage, from the production of crude oil=20 and gas to polyester, polymer and chemical products, and finally=20 to the production of textiles. RIL also has exploration and=20 production interests in India, Yemen and Oman. The company=20 operates mainly in India but has business activities and=20 customers in more than 100 countries around the world. =20 =20 Fitch Ratings gave Reliance Industries Ltd's foreign currency=20 long-term debt, long-term issuer default and local currency=20 long-term debt BB+ ratings effective on December 15, 2005. =20 Moody's Investors Service gave the company 'Ba2' long-term=20 corporate family, issuer, and senior unsecured debt ratings=20 effective March 17, 2005. =20 =20 RPG LIFE: Discloses Auditors' Observations on Sept. 2006 Review --------------------------------------------------------------- In a filing with the Bombay Stock Exchange, RPG Life Sciences=20 Ltd discloses the observations made by the company's auditors=20 pursuant to their review for the quarter ended Sept. 30, 2006. =20 According to the auditors, they are unable to comment on the=20 extent of realizability of RPG Life's investments to its wholly=20 owned subsidiary Instant Trading and Investment Company Ltd. =20 The investment covers: =20 -- INR341,308 thousands in the shares and debentures of the subsidiary; and =20 -- INR767,907 thousands in loans and advances given to the=20 subsidiary. =20 Instant Trading's net worth has been substantially eroded,=20 against which a provision of INR50,000 thousands made in an=20 earlier year is being carried forward, the BSE filing reveals. =20 The auditors further notes that RPG Life has entered into a=20 settlement agreement on Oct. 26, 2006, with the lessor of its=20 manufacturing facility at Pune for mutual termination of the=20 lease and related agreements. Based on the settlement=20 agreement, the company is required to make a payment of=20 INR139,000 thousands immediately and the balance amount of=20 INR30,000 thousands within 24 months from the date of the=20 settlement agreement. RPG Life currently carries a provision of=20 INR152,800 thousands towards its dues to the lessor and has not=20 provided for the balance amount of INR16,200 thousands. =20 As reported in the Troubled Company Reporter - Asia Pacific, RPG=20 Life posted INR306 lakh in net profit for the three months ended=20 Sept. 30, 2006, a 49% decrease from the INR597 lakh in the=20 corresponding period last year. =20 About RPG Life Sciences =20 Headquartered in Mumbai, India, RPG Life Sciences Ltd -- http://www.rpglifesciences.com/-- is a full spectrum, world =20 class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. =20 On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of a default in debt=20 servicing obligations towards institutional investors. =20 =20 STATE BANK OF INDIA: Govt. Introduces Bill Amending Company Act --------------------------------------------------------------- As widely reported, the Indian Government proposes an amendment=20 to the State Bank of India Act allowing the bank to raise=20 additional funds. =20 Introduced by India's Finance Minister P. Chidambaram on=20 December 18, the SBI Amendment Bill 2006 also seeks to reduce=20 the Reserve Bank of India's minimum holding in SBI from 55% to=20 51%. =20 Currently, RBI holds 59.73% of SBI, Reuters notes in a report=20 dated Dec. 18. =20 According to Business Line, the Bill further proposes to: =20 -- allow SBI to issue preference and bonus shares; =20 -- increase the bank's authorized capital from INR20 crore to=20 INR5,000 crore; =20 -- enable the bank to increase issued capital by preferential=20 allotment or private placement of equity or preference=20 shares; =20 -- restrict the voting rights of preference shareholders to resolutions directly affecting their rights; =20 -- allow transfer of unpaid or unclaimed dividend of up to 30 days to an unpaid dividend account and after seven years to the Investor Education and Protection Fund established under Section 205C of the Companies Act; =20 -- abolish the post of vice-chairman; =20 -- allow the Central Government to appoint not more than four managing directors in consultation with RBI; and =20 -- entitle the shareholders present in an annual general meeting to adopt the balance sheet. =20 The amendments, according to The Financial Express, would also=20 relax the restrictions faced by the shareholders of SBI's=20 subsidiary banks in terms of free transferability, individual=20 holding of shares and their voting rights. The seven subsidiary=20 banks of SBI that are to be impacted by the Bill are:=20 =20 * State Bank of Saurashtra, * State Bank of Hyderabad, * State Bank of Patiala, * State Bank of Bikaner and Jaipur, * State Bank of Indore, * State Bank of Mysore, and * State Bank of Travancore. =20 State Bank of India is headquartered in Mumbai, and at the end of March 2006 had total assets of INR4,939 billion (US$111 billion). =20 * * * =20 As reported in the Troubled Company Reporter - Asia Pacific on December 7, 2006, that Standard & Poor's Ratings Services assigned its 'BB+' issue rating to the proposed issue of US$300 million senior unsecured, five-year, floating-rate foreign currency notes to be issued by State Bank of India through its London branch. =20 On April 21, 2006, TCR-AP reported that Fitch Ratings has affirmed State Bank of India's Long-term Issuer Default rating at BB+, Short-term rating at "B", Individual rating at "C" and Support rating at '3'. The outlook on the ratings is stable. =20 Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. =20 =20 STATE BANK OF INDIA: Life Insurance Corp. Buys 200,000 Shares ------------------------------------------------------------- Life Insurance Corporation of India acquired 200,000 shares of=20 the State Bank of India through open market on Dec. 19, 2006, a=20 filing with the Bombay Stock Exchange reveals. =20 The purchase increased Life Insurance Corp.' stake in SBI from=20 26,211,702 shares or 4.98% to 26,411,702 or 5.02%. =20 State Bank of India is headquartered in Mumbai, and at the end of March 2006 had total assets of INR4,939 billion (US$111 billion). =20 * * * =20 As reported in the Troubled Company Reporter - Asia Pacific on December 7, 2006, that Standard & Poor's Ratings Services assigned its 'BB+' issue rating to the proposed issue of US$300 million senior unsecured, five-year, floating-rate foreign currency notes to be issued by State Bank of India through its London branch. =20 On April 21, 2006, TCR-AP reported that Fitch Ratings has affirmed State Bank of India's Long-term Issuer Default rating at BB+, Short-term rating at "B", Individual rating at "C" and Support rating at '3'. The outlook on the ratings is stable. =20 Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. =20 =20 STATE BANK: Ready to Go Into Various Segments, Chairman Says ------------------------------------------------------------ The State Bank of India is ready to venture into various=20 businesses on a grand scale, The Financial Express reports,=20 citing a statement made by the bank's Chairman, Om Prakash=20 Bhatt. =20 Previously there were so many businesses the bank did not=20 venture into because there was no ownership of these ideas=20 within the bank and it was not structured to deal with them, Mr. Bhatt told FE in an exclusive interview. =20 Now, FE relates, SBI has started firming up 15 new business=20 initiatives with substantial profit potential and has even=20 formed a new department to draw up a blueprint for these=20 segments. =20 Among the areas SBI is eyeing are private equity, point of sale,=20 cards business, pension, general insurance, merchant=20 acquisitions and gold banking, the newspaper states. =20 State Bank of India is headquartered in Mumbai, and at the end of March 2006 had total assets of INR4,939 billion (US$111 billion). =20 * * * =20 As reported in the Troubled Company Reporter - Asia Pacific on December 7, 2006, that Standard & Poor's Ratings Services assigned its 'BB+' issue rating to the proposed issue of US$300 million senior unsecured, five-year, floating-rate foreign currency notes to be issued by State Bank of India through its London branch. =20 On April 21, 2006, TCR-AP reported that Fitch Ratings has affirmed State Bank of India's Long-term Issuer Default rating at BB+, Short-term rating at "B", Individual rating at "C" and Support rating at '3'. The outlook on the ratings is stable. =20 Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. =20 =20 TATA MOTORS: Forms JV with Thailand's Thonburi Automotive --------------------------------------------------------- Tata Motors Ltd and Thonburi Automotive Assembly Plant Co., the=20 Thailand-based independent assembler of automobiles, formed a=20 joint venture company in Thailand to manufacture, assemble and=20 market pickup trucks, a company press release states. =20 The joint venture, in which Tata Motors will hold 70% of the=20 equity and Thonburi 30%, will get vehicles manufactured in=20 Thonburi's manufacturing facility. It will go on stream in a=20 year's time.=20 =20 The joint venture will facilitate Tata Motors to address the=20 Thailand market, the second largest pickup market in the world=20 after the United States. Both partners will jointly manage the=20 operation. =20 Tata Motors makes it clear that the pickup trucks will conform=20 to international standards in quality and safety, and will be=20 marketed in Thailand and exported to other potential markets in=20 the region.=20 =20 "Introduction of Tata Motors pickup vehicles and a manufacturing=20 facility in Thailand provide a unique opportunity to the=20 company," Tata Motors Chairman, Ratan N. Tata, was quoted as=20 saying. "We believe the joint venture will make meaningful=20 impact in this most competitive market for pickup vehicles." =20 The Managing Director of Thonburi, Mr. Robru Viriyaphant, said,=20 "The cooperation with Tata Motors offers Thonburi the=20 opportunity to expand our business portfolio. Tata vehicles=20 have dominated the Indian commercial vehicle market for decades=20 and the company is now aiming for a stronger presence=20 internationally. We are proud to be a part of this expansion=20 strategy because of our great confidence in Tata products and=20 technology. The new pickup truck will be the right product for=20 both domestic and export markets." =20 About Thonburi Group =20 Thonburi established its first automotive operation in 1941 and=20 is said to be one of the largest independent assemblers in=20 Thailand. The group currently assembles passenger cars for=20 Mercedes Benz. In 2005, they produced 4,150 passenger cars and=20 250 buses with net revenues of US$208 million. The group has=20 over 2,000 employees. The Thonburi Group has served the Thai=20 automotive market as importer, distributor, retailer, assembler,=20 body builder, mass transportation service provider and supplier=20 and contractor for military vehicles. =20 About Tata Motors =20 Tata Motors Limited -- http://www.tatamotors.com/-- is mainly=20 engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. During the fiscal year ended March 31, 2006 (fiscal 2006), the Company sold 454,129 vehicles. Its commercial vehicle sales were 245,022 in the domestic and overseas market in fiscal 2006. The Company created a new segment in the domestic commercial vehicle market by launching a mini truck, TATA ACE in May 2005. It achieved a sale of 209,107 passenger vehicles in the domestic and overseas market (including the sale of 209 Fiat cars) in fiscal 2006. Tata Motorfinance (TMF), the vehicle-financing business of the Company financed 96,247 new vehicles during fiscal 2006. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Dec. 13, 2006, Standard & Poor's Ratings Services raised its=20 corporate credit ratings for Tata Motors to 'BB+' from 'BB'. The outlook is stable. At the same time, Standard & Poor's has raised its rating on Tata Motors' senior unsecured notes to 'BB+' from 'BB'. =20 Moody's Investors Service, on July 26, 2005, gave Tata Motors=20 'Ba1' long-term corporate family and senior unsecured debt=20 ratings. =20 =20 TATA MOTORS: Inks Industrial Joint Venture Deal with Fiat Auto=20 -------------------------------------------------------------- Fiat Auto and Tata Motors agreed to form a joint venture=20 pursuant to a Memorandum of Understanding in July 2006, a joint=20 and press release relates. =20 According to the release, the deal calls mainly for the creation=20 and establishment of an industrial joint venture in India,=20 located at the Fiat plant at Ranjangaon, in the State of=20 Maharashtra. =20 With capacities to produce in excess of 100,000 cars and 200,000=20 engines and transmissions yearly, at steady state, the=20 Ranjangaon plant will manufacture vehicles for the Indian and=20 overseas markets. Both Fiat and Tata vehicles will be=20 manufactured at the same facility, which will be managed equally=20 by the two Shareholder Partners. =20 Pursuant to an arrangement already in place since March 2006 Fiat-branded cars will be distributed by Tata through the Tata- Fiat dealer network. The network will progressively increase to=20 100 outlets for the launch of the new models to cover the entire=20 length and breadth of the country. Currently, 42 Tata-Fiat=20 dealerships are already operational. Manufacturing of Tata cars=20 in the joint venture will supplement the production capacities=20 of the Tata Motors Car Plant in Pune to meet growing demand and=20 to prepare for new Tata car models.=20 =20 The aggregate investments in this industrial joint venture will=20 be made in a phased manner and may exceed INR4000 crores. The=20 venture will start production of engines and new cars=20 progressively from the beginning of 2008.=20 =20 Fiat and Tata are also continuing discussions for industrial and=20 commercial cooperations in Latin America, as per a joint=20 analysis which began in July 2006, the release adds. According=20 to the partners, the discussions are progressing positively.=20 =20 "This strategic alliance with Fiat enables the two Companies=20 jointly to present a wider range of product offerings to the=20 Indian market, Ratan N. Tata, Chairman of Tata Motors says. "It=20 enables Tata Motors to access world-class powertrains from Fiat=20 for its next generation car offerings while enhancing the model=20 line at its dealerships." =20 About Fiat =20 One of the pioneer companies in the automobile industry, Fiat=20 has produced more than 87 million passenger cars and light=20 commercial vehicles, including no less than 400 models, since=20 1899, when the company was founded in Turin, Italy. Some of=20 them have represented milestones in the automotive industry. =20 =20 About Tata Motors =20 Tata Motors Limited -- http://www.tatamotors.com/-- is mainly=20 engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. During the fiscal year ended March 31, 2006 (fiscal 2006), the Company sold 454,129 vehicles. Its commercial vehicle sales were 245,022 in the domestic and overseas market in fiscal 2006. The Company created a new segment in the domestic commercial vehicle market by launching a mini truck, TATA ACE in May 2005. It achieved a sale of 209,107 passenger vehicles in the domestic and overseas market (including the sale of 209 Fiat cars) in fiscal 2006. Tata Motorfinance (TMF), the vehicle-financing business of the Company financed 96,247 new vehicles during fiscal 2006. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Dec. 13, 2006, Standard & Poor's Ratings Services raised its=20 corporate credit ratings for Tata Motors to 'BB+' from 'BB'. The outlook is stable. At the same time, Standard & Poor's has raised its rating on Tata Motors' senior unsecured notes to 'BB+' from 'BB'. =20 Moody's Investors Service, on July 26, 2005, gave Tata Motors=20 'Ba1' long-term corporate family and senior unsecured debt=20 ratings. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D I N D O N E S I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =20 ANEKA TAMBANG: Repaired Facility Ups 2007 Production Targets ------------------------------------------------------------ PT Aneka Tambang may produce up to a record 22,000 metric tons=20 of the metal used in stainless steel next year as it ramps up=20 output at a new, repaired smelter, Bloomberg News reports. =20 The figure is about 10% more than the earlier set targets on=20 November 22, 2006. =20 Bloomberg cites Antam Investors Relations Manager Cameron Tough=20 as saying that the facility is being brought back online=20 gradually after being shut down in July. The increased output=20 would place Antam in the position to take advantage of surging=20 demand. =20 Bloomberg News explains that nickel futures on the London Metal=20 Exchange soared to their highest in at least 19 years on Dec. 1,=20 touching US$34,300 a ton.=20 =20 Sulawesi Smelter=20 =20 According to the report, Mr. Tough also said in an interview=20 that the company had a new US$171 million smelter, in Pomalaa,=20 Southeast Sulawesi province. =20 The Japanese contractors, Mitsui & Co. Ltd. and Kawasaki Heavy=20 Industries Ltd., are handling the repairs at no extra cost to=20 the company. =20 Bloomberg adds that Antam is also preparing to overhaul its=20 oldest plant, a 31-year-old smelter, which can produce 5,000=20 tons of nickel a year. Its second smelter, refurbished last=20 year, can produce 6,000 tons of nickel a year. The new, third=20 smelter contributed 1,880 tons out of about 10,000 tons of=20 company production in the first nine months of this year. =20 Mr. Tough adds that the company, at full capacity, can now=20 produce as much as 24,000 tons a year. =20 PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,=20 processes, develops, and explores natural deposits. The company=20 operates six mines. They are located in Riau (bauxite), Sulawesi=20 and Maluku (nickel), Central Java (iron sand), and West Java=20 (gold). The company also operates a precious metal refinery and=20 a geology unit in Jakarta. =20 * * * =20 The Troubled Company Reporter - Asia Pacific reported on Dec. 4,=20 2006, that Standard & Poor's Ratings Services raised its long- term corporate credit rating on Indonesian state-owned mining=20 company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. =20 At the same time, Standard & Poor's also raised to 'B+', from=20 'B', the rating on the senior unsecured notes issued by Antam=20 Finance Ltd. and guaranteed by Antam. =20 Moody's Investors Service gave Aneka Tambang a local currency B1=20 corporate family rating, and a B2 foreign currency bond rating. =20 =20 BANK BUANA: Mulls Merger with Bank UOB --------------------------------------- Bank Buana Indonesia and Bank UOB Indonesia have announced that=20 they are considering a merger to comply with Bank Indonesia's=20 single presence policy, the Coordinating Ministry for Economic=20 Affaris of Indonesia said in a press release sent to the=20 Indonesian Embassy in Canberra, Australia. =20 The release explains that under the rule, which is to be=20 implemented next year, a banker may not have a controlling stake=20 in more than one bank. The Indonesian central bank has=20 suggested that bank owners holding a majority share of more than=20 one bank, can comply with the rule either by divesting their=20 stake, establishing a holding company or through a merger. =20 The report cited Bank Buana President Jimmy H Kurniawan as=20 saying that they "will study the options" and "will make our=20 decision before the deadline in December 2007."=20 =20 Bank Buana is 61% owned by the UOB Group, which also owns 99% of=20 Bank UOB Indonesia. =20 Headquartered in Jakarta, PT Bank Buana Indonesia Terbuka --=20 http://www.bankbuana.com-- provides public deposits, investment =20 portfolio, and other financial services, including: demand,=20 savings and time deposits, Bank Indonesia promissory notes,=20 bonds, consumer loans, retail commercial loans, and corporate=20 loans. Other financial services include exports, imports,=20 transfers, collection, issuing of bank guarantees and foreign=20 currency transactions. =20 * * * =20 As reported by the Troubled Company Reporter - Asia Pacific on=20 December 15, 2006, Fitch Ratings affirmed Bank Buana's: =20 -- Long-term foreign currency Issuer Default rating at 'BB-'; =20 -- Long-term local currency Issuer Default rating at 'BB-'; =20 -- Short-term foreign currency rating at 'B'; =20 -- Individual rating at 'C/D'; and =20 -- Support rating at '3'. =20 =20 BANK DANAMON: Unit Secures $30MM Loan from Deutsche Investitions ---------------------------------------------------------------- Automotive financing PT Adira Finance, a unit of PT Bank Danamon=20 Indonesia, said it has secured a US$30 million loan from=20 Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG), to=20 support its financing expansion next year, AFX News Limited=20 reports, citing Adira president Stanley Setia Atmadja. =20 The report adds that the loan has a tenor of four years and=20 carries an interest rate of LIBOR plus 2.4 percentage points. =20 Mr. Atmadja said that the loan will help Adira achieve 15 to 20%=20 growth in its new financing in 2007. =20 AFX News notes that Mr. Atmadja also said that the company is=20 expected to extend around IDR8.4 trillion in new financing for=20 2006. He adds that Adira is also planning to sell up to IDR1=20 trillion worth of bonds next year to back up the credit=20 expansion. =20 Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia=20 Tbk provides a range of products and services, including=20 Consumer Banking, Small to Medium-Sized Enterprise and=20 Commercial, Trade Finance, Treasury Product, Cash Management,=20 Other Services, Financial Planning and e-Banking. Danamon=20 Syariah is the Bank's business unit that provides its customers=20 with syariah banking products and services. The bank also=20 operates Danamon Simpan Pinjam, which caters to micro banking=20 customers. DSP is divided into two groups: DSP to serve and=20 help enterprises in micro and small-scale banking, and DSP for=20 individual customers with fixed income. Bank Danamon is=20 supported by 86 domestic branch offices, 325 domestic supporting=20 branch offices, 25 domestic cash office, 739 supporting branches=20 for DSP, six personal banking branch offices, 10 syariah branch=20 offices and one overseas branch. =20 * * * =20 The Troubled Company Reporter - Asia Pacific reported on July 5, 2006, that Moody's Investors Service has placed Bank=20 Danamon Indonesia's D- bank financial strength rating on review=20 for possible upgrade. =20 These ratings were unaffected: =20 -- Subordinated debt of Ba3. The outlook is stable; and =20 -- Long-term/short-term deposit of B2/Not Prime. The outlook is stable. =20 The TCR-AP reported on December 15, 2006 that Fitch Ratings has=20 affirmed all the ratings of Bank Danamon as follows: =20 -- Long-term foreign currency Issuer Default Rating at 'BB-'; =20 -- Short-term foreign currency rating at 'B'; =20 -- Individual rating at 'C/D'; and =20 -- Support rating at '4'. =20 =20 BANK NEGARA: To Hasten Debt Restructuring in 2007 ------------------------------------------------- Bank Negara Indonesia is planning to adjust the acceleration of=20 its debt restructuring plan in 2007, according to the Asian=20 Banker. =20 The report adds that the bank projects its non-performing loans=20 to decline to 11% or 12% and the credit will grow by 20% in=20 2007.=20 =20 Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia=20 (Persero) Tbk -- http://www.bni.co.id-- is a financial =20 institution with products and services that include: Individual,=20 Business, Syariah, Micro Banking, and Online Feature. The Bank=20 has approximately 700 correspondent banks, 914 local branches=20 and five oversea branches located in New York, London, Tokyo,=20 Hong Kong and Singapore. The bank has five subsidiaries: PT BNI=20 Multi Finance, a financial services company; PT BNI Securities,=20 a securities company; PT BNI Life Insurance, an insurance=20 provider; PT BNI Nomura Jafco Manajemen Ventura, a venture=20 capital company, and PT BNJI Ventura Satu, a venture capital=20 company. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 May 22, 2006, Moody's Investors Service has lifted Bank Negara=20 Indonesia's senior debt rating to B1 from B2, and long-term=20 deposit rating to B2 from B3. The revised ratings carry a=20 stable outlook. Bank Negara's short-term deposit rating of Not- Prime, and bank financial strength rating of E are unaffected. =20 A subsequent TCR-AP report on July 17, 2006, said that Standard=20 & Poor's Ratings Services revised the outlook on the local=20 currency counterparty credit rating on Bank Negara to stable=20 from positive. At the same time, Standard & Poor's affirmed its=20 foreign and local currency ratings on BNI (B+/Stable/B). =20 Another TCR-AP report on December 15, 2006 stated that Fitch=20 Ratings affirmed Bank Negara's: =20 -- Long-term foreign currency Issuer Default rating at 'BB-'; =20 -- Long-term local currency Issuer Default rating at 'BB-'; =20 -- Short-term foreign currency rating at 'B'; =20 -- National Long-term rating at 'A+(idn)'; =20 -- Individual rating at 'D'; =20 -- Support rating at '4'; and =20 -- subordinated notes rating at 'B+'. =20 =20 BERAU COAL: S&P Assigns 'B' Corporate Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services, on Dec. 21, 2006, has=20 assigned its 'B' corporate credit rating to PT Berau Coal=20 (Berau), a coal mining company in Indonesia. The outlook is=20 stable. At the same time, Standard & Poor's assigned its 'B'=20 rating to the US$325 million guaranteed senior secured notes=20 issued by Berau's wholly owned subsidiary, Empire Capital=20 Resources Pte. Ltd. The notes are unconditionally and=20 irrevocably guaranteed by Berau. =20 The issue proceeds will be used primarily to refinance=20 shareholders' debt (US$239.5 million) and existing bank debt=20 (US$39.5 million), and for general corporate purposes. =20 The rating reflects Berau's highly leveraged financial profile=20 after including the notes. The company's rating is subject to=20 the inherent industry risk and coal price volatility. In=20 addition, the rating reflects its coal production concentration=20 in Indonesia and its exposure to the country's relatively=20 uncertain mining laws. The rating on Berau benefits from its=20 low cost profile, consistent track record of increasing=20 production, adequate reserve life, secured supply contracts,=20 relatively high financial flexibility and low capital=20 expenditure requirements as most mining operations are=20 outsourced to contractors. =20 Berau is the fifth-largest coal mining company in Indonesia,=20 with 1%-2% market share of global coal trade in 2005. Berau=20 started operations in 1995 and has current coal production=20 capacity of 15 million-16 million tons per year. =20 Berau's cash flow protection measures will weaken in the near-=20 to medium-term with funds from operations (FFO) to debt likely=20 to be less than 10%. =20 Berau's near-term liquidity is adequate, with cash holdings of=20 US$29.7 million at Aug. 31, 2006. After the notes issue, there=20 will be no immediate liquidity pressure on Berau in servicing=20 the current portion of debt maturity.=20 =20 The stable outlook reflects Standard & Poor's expectation that=20 Berau's cash flow will be supported by the favorable short- to=20 medium-term outlook for coal prices and the company's ongoing=20 initiatives to maintain or improve its operating efficiency. =20 The rating could come under downward pressure if Berau pursues=20 growth initiatives at the expense of debt reduction; a sharp=20 increase in its cash production cost or softer coal prices could=20 lead to weaker cash flows. Conversely, a revision of the=20 outlook to positive or a rating upgrade would hinge on Berau's=20 ability to do the following: maintain its favorable cost=20 profile, a steady increase in production from existing or new=20 pits and offtake volume; sustain improvement of cash flow=20 measures; and keep its FFO-to-debt ratio consistently above 20%.=20 =20 Headquartered in East Kaliman, PT Berau Coal-- http://www.beraucoal.co.id-- is Indonesia's fifth largest=20 producer and exporter of thermal coal. It operates three active=20 mines at a single site in East Kalimantan. It has estimated=20 resources of 654.2 million tons with probable reserves estimated=20 at 61.6mt and proven mineable reserves of 127.6mt. =20 =20 CORUS GROUP: Auction Looms If Buyer Remains Unnamed by Jan. 31 -------------------------------------------------------------- The contest between Tata Steel U.K. Limited and CSN Acquisitions=20 Ltd. to acquire Corus Group Plc may turn into an auction if the=20 company fails to name its buyer by Jan. 30, 2007, Bloomberg News=20 reports. =20 The Panel on Takeovers and Mergers said that it requires an=20 auction procedure to determine Corus' buyer if the "competitive=20 situation" between Tata Steel and CSN remains unresolved by the=20 given date. =20 CSN Bid=20 =20 As reported in the TCR-AP on Dec. 18, CSN increased its purchase=20 offer for Corus to US$9.6 billion or 515 pence a share, topping=20 Tata Steel's 500 pence per share offer. =20 CSN's proposed purchase of Corus will be funded through a BP4.35=20 billion of debt underwritten by Barclays Plc, ING Groep NV and=20 Goldman Sachs Group Inc., Bloomberg says, citing Chief Financial=20 Officer Otavio Lazcano as saying. Meanwhile, CSN promised to=20 pay BP138 million to fund the deficit in the Corus Engineering=20 Steels Pension Scheme, Bloomberg says. Also, the steelmaker=20 will raise the contribution rate on the British Steel Pension=20 Scheme to 12% from 10% until March 31, 2009. The company's=20 success in acquiring Corus hinges on the unions' support,=20 according to published reports. =20 Tata Offer =20 As reported in the TCR-Europe on Dec. 11, the Boards of=20 Directors of Tata Steel Ltd. and Corus Group plc have agreed the=20 terms of an increased recommended revised acquisition at a price=20 of 500 pence in cash per Corus share. =20 Under the terms of the Revised Acquisition, Corus shareholders=20 will be entitled to receive 500 pence in cash for each Corus=20 Share. This represents a price of 1,000 pence in cash for each Corus ADS. =20 The terms of the Revised Acquisition value the entire existing=20 issued and to be issued share capital of Corus at approximately=20 GBP4.7 billion and the Revised Price represents: =20 -- an increase of approximately 10% compared with 455 pence, being the Price under the original terms of the Acquisition; =20 -- on an enterprise value basis, a multiple of approximately 7.5x EBITDA from continuing operations for the 12 months to Sept. 30, 2006 (excluding the non-recurring pension credit of GBP96 million) and a multiple of approximately 5.9x EBITDA from continuing operations for the year ended Dec. 31, 2005; =20 -- a premium of approximately 38.7% to the average closing mid-market price of 360.5 pence per Corus Share for the 12 months ended Oct. 4, 2006, being the last business day before the announcement by Tata Steel that it was evaluating various opportunities including Corus; and =20 -- a premium of approximately 22.7% to the closing mid-market price of 407.5 pence per Corus Share on Oct. 4, 2006,=20 being the last business day before the announcement by Tata Steel that it was evaluating various opportunities Including Corus. =20 The terms of the Revised Acquisition remain subject to the=20 conditions and do not affect Tata Steel's intentions regarding=20 the business of Corus, its management, employees and locations,=20 nor the proposals relating to Corus's pension schemes, the Corus=20 Share Schemes, Convertible Bonds or cancellation of the Deferred=20 Shares. =20 About Companhia Siderurgica Nacional =20 Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Portugal and the U.S. =20 About Tata Steel =20 Established in 1907, Tata Steel is Asia's first and India's=20 largest private sector steel company. Tata Steel is among the=20 lowest cost producers of steel in the world and one of the few=20 select steel companies in the world that is EVA+ (Economic Value=20 Added). =20 About Corus Group =20 Corus Group plc, fka British Steel, was formed when the UK privatized its major steelworks in 1988. It then changed its name to Corus Group after acquiring most of Dutch rival Koninklijke Hoogovens. Corus makes coated and uncoated strip products, sections and plates, wire rod, engineering steels, and semi-finished carbon steel products. It also manufactures primary aluminum products. Customers include companies in the automotive, construction, engineering, and household-product manufacturing industries. =20 Corus turns over GBP10 billion annually and employs 47,300 in=20 over 40 countries and sales offices and service centers=20 worldwide, including Indonesia and the Philippines. =20 * * * =20 As reported in the Troubled Company Reporter on Oct. 25, 2006, Moody's Investors Service placed Corus Group plc's Ba2 Corporate Family and other ratings under review. =20 In March 2006, Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating for Corus Group on CreditWatch. =20 At the same time, Fitch Ratings changed Corus Group's outlook to Positive from Stable and affirmed its Issuer Default Rating at BB-. =20 =20 FOSTER WHEELER: Secures Boiler Contract from Votorantim Metais -------------------------------------------------------------- Foster Wheeler Ltd.'s subsidiary Foster Wheeler Energia Oy,=20 which is part of its Global Power Group, has been awarded a=20 contract by Votorantim Metais Niquel SA to design and supply a=20 circulating fluidized-bed or CFB boiler island adjacent to=20 Votorantim Metais' plant located in Acampamento Macedo,=20 Niquelandia city near Brazilia, Brazil's capital. =20 Votorantim Metais is a company of Votorantim Group, one of the=20 largest private industrial conglomerates in Brazil with=20 consolidated net revenues of BRL19 billion in 2005, and the=20 leading producer of electrolyte nickel in Latin America. =20 The terms of the award, which were included in the company's=20 third-quarter bookings, were not disclosed. =20 Foster Wheeler's scope includes the design and supply of a=20 petroleum coke-fired 150-megawatt thermal CFB boiler, auxiliary=20 equipment, instrumentation and a burner management and boiler=20 protection system, boiler house steel construction, and advisory=20 services for erection and commissioning. The boiler island,=20 which will generate electricity and process steam to be used in=20 the production of nickel, is scheduled to commence commercial=20 operation in November 2008. =20 James E. Stone, chief executive officer of Foster Wheeler Power=20 Group Europe, commented, "We are delighted with this award,=20 which is our second CFB win in Brazil during the last twelve=20 months. This award confirms our client's confidence in our=20 leading CFB technology, which is ideally suited to burning=20 petroleum coke efficiently and with low emissions. The boiler=20 will also be capable of firing up to 10 percent biomass." =20 "This is an important project for Votorantim Metais as it is our=20 first CFB investment. We decided to select the best technology=20 available on the market with a reliable partner for project=20 execution," Jose Roberto Piagentini, general manager of=20 engineering at Votorantim Metais SA, stated. =20 With operational headquarters in Clinton, New Jersey, Foster=20 Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of =20 engineering, procurement, construction, manufacturing, project=20 development and management, research and plant operation=20 services. Foster Wheeler serves the refining, upstream oil and=20 gas, LNG and gas-to-liquids, petrochemical, chemicals, power,=20 pharmaceuticals, biotechnology and healthcare industries. =20 The company has offices in Indonesia, China, India, Malaysia,=20 Singapore, Thailand, and Vietnam. =20 * * * =20 On Dec. 17, 2006, Standard & Poor's Ratings Services revised its=20 outlook on Foster Wheeler Ltd. to positive from stable. =20 At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the Clinton, New Jersey-based engineering and construction company. The company had about US$217 million of total debt at Sept. 29, 2006. =20 =20 HANOVER COMPRESSOR: Redeeming US$20.8MM of Conv. Jr. Debentures --------------------------------------------------------------- Hanover Compressor Co. calls for redemption on Jan. 4, 2007, of=20 US$20,871,000 aggregate principal amount of the Convertible=20 Junior Subordinated Debentures Due 2029. All of the Debentures=20 are owned by Hanover Compressor Capital Trust and the Trust is=20 required to use the proceeds received from the redemption to=20 redeem US$20,245,000 aggregate liquidation amount of its 7-1/4%=20 Convertible Preferred Securities and US$626,000 aggregate=20 liquidation amount of its 71/4% Convertible Common Securities. =20 Hanover Compressor Company owns all of the Common Securities of=20 the Trust.=20 =20 The Preferred Securities to be redeemed will be selected in=20 accordance with the applicable procedures of The Depository Trust Company for partial redemptions.=20 =20 Prior to 5:00 p.m., Eastern Time, on Jan. 3, 2007, holders may=20 convert their Preferred Securities called for redemption on the=20 basis of one Preferred Security per US$50 principal amount of=20 Debentures which will then be immediately converted into shares=20 of Hanover Compressor Company common stock at a price of=20 approximately US$17.875 per share, or 2.7972 shares of Hanover=20 Compressor Company common stock per US$50 principal amount. =20 Cash will be paid in lieu of fractional shares. On Dec. 14,=20 2006 the closing price of Hanover Compressor Company common=20 stock on the New York Stock Exchange was US$20.42 per share.=20 =20 Alternatively, holders may have their Preferred Securities that=20 have been called for redemption, redeemed on Jan. 4, 2007. Upon=20 redemption, holders will receive US$50 for each of their=20 Preferred Securities, plus accrued and unpaid distributions=20 thereon from Dec. 15, 2006 up to but not including Jan. 4, 2007.=20 Any of the Preferred Securities called for redemption and not=20 converted on or before 5:00 p.m., Eastern Time, on Jan. 3, 2007,=20 will be automatically redeemed on Jan. 4, 2007 and no further=20 distributions will accrue.=20 =20 Holders of the Preferred Securities should complete the=20 appropriate instruction form for redemption or conversion, as=20 applicable, pursuant to The Depository Trust Company's book- entry system and follow such other directions as instructed by=20 The Depository Trust Company.=20 =20 Headquartered in Houston, Texas, Hanover Compressor Company --=20 http://www.hanover-co.com-- rents and repairs compressors and=20 performs natural gas compression services for oil and gas=20 companies. It has a fleet of more than 6,520 mobile compressors=20 ranging from 8 to 4,735 horsepower. The company's subsidiaries=20 also provide service, fabrication, and equipment for oil and=20 natural gas processing and transportation applications. Hanover=20 Compressor is disposing of its non-oilfield power generation=20 facilities and used equipment businesses to focus on core=20 operations. In 2006 the company sold the US amine treating=20 rental assets of Hanover Compression Limited Partnership to oil=20 and gas firm Crosstex Energy for about US$52 million. =20 The company has locations in Indonesia, China, Indonesia, Japan,=20 Korea, Taiwan, the United Kingdom, and Vietnam, among others. =20 As reported in the Troubled Company Reporter - Asia Pacific on Oct. 29, 2006, Moody's Investors Service, in connection with the implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the North American Forest Products sector, confirmed its B1 Corporate Family Rating for Hanover Compressor Company. =20 Four layers of bond debt issued by Hanover Compressor and maturing between 2008 and 2014 carry low-B ratings from Moody's Investors Service and Standard & Poor's Rating Services. =20 =20 METSO OYJ: Injects EUR15 Million to Raise Paper Unit's Capacity --------------------------------------------------------------- Metso Paper, a unit of Metso Oyj, is expanding the production=20 capacity of paper machine rolls, and will build a new production=20 line for big, wide castings in Jyvaskyla, Finland. The value of=20 the investment is around EUR15 million.=20 =20 The new production line will enable roll castings up to 12=20 meters in width. The investment will also shorten the lead=20 times and improve occupational safety at the foundry. The=20 demand for wide paper machines has developed favorably in recent=20 years.=20 =20 In addition to new paper machines, rolls are needed in the=20 modernizations and rebuilds of the installed machines. Large=20 paper machine rolls are one of the most demanding components in=20 a paper machine. Metso Paper has developed the manufacturing=20 know-how and machinery in the Jyvaskyla plant over a number of=20 years to meet the needs of roll manufacturing. =20 About Metso =20 Headquartered in Helsinki, Finland, Metso Corporation=20 --http://www.metso.com/-- is a global engineering and=20 technology corporation with 2005 net sales of around EUR4.2=20 billion. Its 22,000 employees in more than 50 countries serve=20 customers in the pulp and paper industry, rock and minerals=20 processing, the energy industry and selected other industries. =20 The company also has operations in Indonesia. =20 * * * =20 As reported in the TCR-Europe on April 11, Standard & Poor's Ratings Services revised its outlook on Finland-based machinery and engineering group Metso Corp. to positive from stable, reflecting improvements in the group's operating performance and capital structure that offer it the potential to return to a low investment-grade rating. The 'BB+' long-term and 'B' short-term corporate credit ratings, as well as the 'BB' senior unsecured debt rating on the group were affirmed. =20 =20 METSO OYJ: Inks Five-Year EUR500 Million Loan Facility ------------------------------------------------------ Metso Oyj signed a EUR500 million revolving five-year loan=20 facility with a syndicate of 14 banks.=20 =20 It replaces an original EUR450 million facility of June 2003,=20 which is currently not drawn. The new facility is primarily to=20 support Metso's short-term funding. =20 Mandated Lead Arrangers for the loan were Citibank, Commerzbank,=20 Nordea and SEB Merchant Banking. =20 About Metso =20 Headquartered in Helsinki, Finland, Metso Corporation=20 --http://www.metso.com/-- is a global engineering and=20 technology corporation with 2005 net sales of around EUR4.2=20 billion. Its 22,000 employees in more than 50 countries serve=20 customers in the pulp and paper industry, rock and minerals=20 processing, the energy industry and selected other industries. =20 The company also has operations in Indonesia. =20 * * * =20 As reported in the TCR-Europe on April 11, Standard & Poor's Ratings Services revised its outlook on Finland-based machinery and engineering group Metso Corp. to positive from stable, reflecting improvements in the group's operating performance and capital structure that offer it the potential to return to a low investment-grade rating. The 'BB+' long-term and 'B' short-term corporate credit ratings, as well as the 'BB' senior unsecured debt rating on the group were affirmed. =20 =20 NORTEL NETWORKS: Eastman Kodak Renews Three-Year Management Pact ---------------------------------------------------------------- Eastman Kodak Company has agreed to a three-year renewal of an=20 existing agreement with Nortel Networks Corporation for=20 management of its U.S. voice network. =20 The renewal, calls for Nortel to continue managing Kodak's U.S.=20 network of PBXs and telephone services through 2008 and also=20 includes upgrading an existing Meridian SL-100 switch to an IP-enabled Communication Server 2100. The upgrade will allow=20 the company to provide VoIP capability when cost-effective for=20 requirements like worker mobility. =20 The company disclosed that it has outsourced its voice network=20 to Nortel since 1995 and will continue to benefit from Business=20 Made Simple through lower capital and operating costs. Kodak=20 will also gain an infrastructure better prepared for future=20 technologies without sacrificing previous investments. =20 "We will continue to provide cost savings by operating and=20 managing Kodak's U.S. network," Nortel Global Services president=20 Dietmar Wendt said. =20 =20 "And we'll work with Kodak to address both current and future=20 needs - including migration to VoIP if and when it makes sense -=20 without requiring them to take on the costs associated with=20 buying, implementing and operating new equipment." =20 Nortel provides network management and maintenance for the=20 company's voice network, including remote fault monitoring with=20 proactive network surveillance, customer-defined service level=20 agreements for response and resolution, moves and changes,=20 comprehensive customer reporting, and dedicated service=20 management. =20 About Eastman Kodak =20 Headquartered in Rochester, New York, Eastman Kodak Co. -- http://www.kodak.com/-- develops, manufactures, and markets=20 digital and traditional imaging products, services, and=20 solutions to consumers, businesses, the graphic communications=20 market, the entertainment industry, professionals, healthcare=20 providers, and other customers. =20 About Nortel =20 Headquartered in Ontario, Canada, Nortel Networks Corporation=20 (NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized=20 leader in delivering communications capabilities that enhance=20 the human experience, ignite and power global commerce, and=20 secure and protect the world's most critical information. =20 Serving both service provider and enterprise customers, Nortel=20 delivers innovative technology solutions encompassing end-to-end=20 broadband, Voice over IP, multimedia services and applications,=20 and wireless broadband designed to help people solve the world's=20 greatest challenges. Nortel does business in more than 150=20 countries including Indonesia, Australia, China, Mexico,=20 Philippines, and Thailand. =20 * * * =20 Dominion Bond Rating Service confirmed the long-term ratings of=20 Nortel Networks Capital Corporation, Nortel Networks=20 Corporation, and Nortel Networks Limited at B (low) along with=20 the preferred share ratings of Nortel Networks Limited at Pfd-5=20 (low). All trends are Stable. =20 DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb=20 Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;=20 Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5=20 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. =20 Additionally, Moody's Investors Service affirmed the B3=20 corporate family rating of Nortel; assigned a B3 rating to the=20 proposed US$2billion senior note issue; downgraded the US$200=20 million 6.875% Senior Notes due 2023 and revised the outlook to=20 stable from negative. =20 Standard & Poor's also affirmed its 'B-' long-term and 'B-2'=20 short-term corporate credit ratings on the company, and assigned=20 its 'B-' senior unsecured debt rating to the company's proposed=20 US$2 billion notes. The outlook is stable. =20 =20 ORBITAL SCIENCES: Closes Sale on US$125MM Sr. Subordinated Notes ---------------------------------------------------------------- Orbital Sciences Corporation closed on the sale of US$125 million aggregate principal amount of 2.4375% convertible=20 senior subordinated notes due 2027. =20 The company entered, on Dec. 7, 2006, into a purchase agreement=20 with Wachovia Capital Markets LLC and Banc of America Securities=20 LLC as the "Initial Purchasers," relating to the offering by the=20 company of the 2.4375% Notes due 2027. The Purchase Agreement=20 also granted the Initial Purchasers an option to purchase up to=20 US$18.75 million aggregate principal amount of the Notes to=20 cover over-allotments. On Dec. 7, 2006, the Initial Purchasers=20 exercised the option in full. =20 The net proceeds from the offering, after deducting the Initial=20 Purchasers' discount and estimated offering expenses, were=20 approximately US$141 million, of which, approximately US$50 million will be used to repurchase shares of common stock=20 of the company in a separate transaction. The remaining net=20 proceeds, together with available cash, will be used to=20 repurchase its 9% senior notes due 2011. =20 The Notes were issued under an Indenture by and between the=20 company and The Bank of New York, as trustee, dated as of Dec. 13, 2006. The Notes and the shares of Common Stock=20 issuable in certain circumstances upon conversion of the Notes=20 have not been registered under the Securities Act of 1933, as=20 amended and the Notes were sold to the Initial Purchasers in=20 reliance on the exemption from registration provided by Section=20 4(2) of the Securities Act. The Initial Purchasers then sold=20 the Notes to qualified institutional buyers pursuant to the=20 exemption from registration provided by Rule 144A under the=20 Securities Act. =20 Registration Rights Agreement =20 In connection with the sale of the Notes, the Company entered=20 into a registration rights agreement with the Initial=20 Purchasers, under which, the company agreed to file a shelf=20 registration statement providing for the resale by the holders=20 of the Notes and the shares of common stock issuable upon=20 conversion of the Notes within 120 days after the Closing and to=20 cause the shelf registration statement to be declared effective=20 within 180 days after the Closing. =20 Amendment of Revolving Credit Facility =20 Also in connection with the sale of the Notes, the Company=20 entered into an amendment with Bank of America, N.A., to its=20 existing US$50 million revolving credit facility to permit the=20 sale of the Notes by the Company. The amendment also increases=20 the previously existing option of the company to increase the=20 aggregate revolving loan commitment from a maximum amount of=20 US$75 million to US$100 million, if one or more new or existing=20 lenders agrees to provide the amount of the increase. =20 A full text-copy of the Indenture may be viewed at no charge at=20 http://ResearchArchives.com/t/s?171d =20 A full text-copy of the Registration Rights Agreement may be=20 viewed at no charge at http://ResearchArchives.com/t/s?171e =20 A full text-copy of the Second Amendment to the Credit Agreement=20 may be viewed at no charge at=20 http://ResearchArchives.com/t/s?1720 =20 About Orbital Sciences =20 Orbital Sciences Corp. (NYSE: ORB) -- http://www.orbital.com/-- develops and manufactures small rockets and space systems for=20 commercial, military and civil government customers. he=20 company's primary products are satellites and launch vehicles,=20 including low-orbit, geosynchronous-orbit and planetary=20 spacecraft for communications, remote sensing, scientific and=20 defense missions; ground- and air-launched rockets that deliver=20 satellites into orbit; and missile defense systems that are used=20 as interceptor and target vehicles. Orbital also offers space- related technical services to government agencies and develops=20 and builds satellite-based transportation management systems for=20 public transit agencies and private vehicle fleet operators. =20 The company also has operations in Indonesia. =20 As reported in the Troubled Company Reporter on Dec. 12, 2006 Standard & Poor's Ratings Services assigned its 'B+' rating to=20 the US$143.8 million 2.4375% convertible subordinated notes due=20 2027 of Orbital Sciences Corp. =20 The TCR reported on Oct. 3, 2006, that Moody's Investors=20 Service, in connection with the implementation of its new=20 Probability-of-Default and Loss-Given-Default rating=20 methodology, confirmed its Ba2 Corporate Family Rating for=20 Orbital Sciences Corporation and its Ba3 rating on the company's=20 9% Senior Notes due 2011. Moody's assigned those debentures an=20 LGD4 rating suggesting noteholders will experience a 61% loss in=20 case of default. =20 =20 PERUSAHAAN LISTRIK: Government Retenders Four Power Projects ------------------------------------------------------------ The Indonesian Government is reopening the tender for the=20 construction of four power plants worth US$1.2 billion to be=20 built as part of the fast-track program to provide additional=20 electricity supplies of about 10,000 megawatts by 2009, The=20 Jakarta Post reports. =20 According to The Post, PT Perusahaan Listrik Negara President=20 Director Eddie Widiono said that the four projects were being=20 retendered because only one of the bidders had satisfied the=20 tender requirements. =20 The four coal-fired power plants consist of the Banten power=20 plant with a capacity of 300 MW in Teluk Naga, Banten; the 300- MW Pelabuhan Ratu power plant in West Java; the 300-MW Pacitan=20 power plant in East Java; and the 600-MW Tanjung Jati power=20 plant in Tanjung Jati, Central Java.=20 =20 The Post relates that the three 300-MW power plants had=20 attracted 24 bidders, while the 600 MW power plant had attracted=20 bids from 19 local and overseas companies. However, as only one=20 of them was qualified to enter the final round of bidding, the=20 tender, which was launched in July, had been canceled.=20 =20 The Post explains that a government regulation states that a=20 tender will only be valid if at least three bidders progress to=20 the final round of bidding. =20 The power plants are being put out to tender as part of the=20 Government's 10,000 MW "crash program" launched in March, which=20 is aimed at preventing power shortages and cutting the nation's=20 dependence on oil-based fuels for electricity generation.=20 =20 The report adds that in October, Perusahaan Listrik opened the=20 tenders for the construction of 30 power plants outside of Java=20 and Bali islands, including nine power plants in Sumatra and=20 surrounding islands with a total capacity of 1,428 MW, as well=20 as plants with a capacity of 220 MW in Sulawesi and 400 MW in=20 Kalimantan. The Government has estimated the cost of=20 infrastructure development in the power sector will reach=20 US$41.3 billion between 2006 and 2016, including US$8 billion=20 under the crash program.=20 =20 Indonesian state utility firm PT Perusahaan Listrik Negara --=20 http://www.pln.co.id/-- transmits and distributes electricity=20 to around 30 million customers, roughly 60% of Indonesia's=20 population. The Indonesian Government decided to end PLN's=20 power supply monopoly to attract independents to build more=20 capacity for sale directly to consumers, as many areas of the=20 country are experiencing power shortages. PLN posted a IDR4.92- trillion net loss in 2005, against a net loss of IDR2.02=20 trillion in 2004. =20 The Troubled Company Reporter - Asia Pacific reported on Oct. 5,=20 2006, that Moody's Investors Service has assigned a B1 senior=20 unsecured rating to PT Perusahaan Listrik Negara's proposed U.S.=20 dollar bond issuance. At the same time, Moody's has assigned=20 its B1 corporate family rating to PLN. The rating outlook is=20 stable. =20 Standard & Poor's Ratings Services also assigned its 'BB-'=20 foreign currency rating and 'BB' local currency rating to PLN.=20 The outlook on the ratings is stable. At the same time,=20 Standard & Poor's assigned its 'BB-' issue rating to the=20 proposed U.S. dollar senior unsecured notes issued by PLN's=20 wholly owned subsidiary, Majapahit Holding B.V. =20 =20 * Central Bank Upbeat About Reduction in Number of Banks -------------------------------------------------------- Bank Indonesia is still optimistic that the reduction of the=20 number of banks in Indonesia to 70 can be achieved in 2010,=20 Tempo Interactive reports. =20 According to the report, the central bank will keep pushing for=20 banking consolidation among the current 130 banks.=20 =20 Tempo Interactive cites Ryan Kirnanto, a senior economist at PT=20 Bank Negara Indonesia Tbk, as saying that he considered the firm=20 steps by Bank Indonesia in forcing bank consolidation as of next=20 year as really appropriate.=20 =20 "All this time, consolidation is like the poco-poco (a popular=20 dance): one moves one step forward but takes two steps=20 backward," he said.=20 =20 * * * =20 As reported in the TCR-AP on July 27, 2006, Standard & Poor's Ratings Service raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. =20 Fitch gave Indonesia a BB- long-term foreign currency rating. Indonesia carries Moody's 'B1' rating. =20 =20 * Banks to Face NPL-Related Challenges in 2007 ---------------------------------------------- The banking industry will still face heavy challenges next year,=20 especially state-owned banks, regarding non-performing loans,=20 Tempo Interactive reports. =20 The report, citing Ryan Kirnanto, senior economist at PT Bank=20 Negara Indonesia, says that one of the great challenges that the=20 banking industry will face is the decrease of the non-performing=20 loan rate in PT Bank Mandiri and Bank Negara. This is because=20 the national bank non-performing loans reach 8.5%. =20 Additionally, Tempo Interactive relates, the non-conducive=20 political situation and legal uncertainty in Indonesia,=20 according to Mr. Kirnanto, will also be a test for the banking=20 industry in improving credit disbursement next year. The=20 growth of the bank's credit until the third quarter of this year=20 is still low. During January and September 2006, credit=20 disbursement was only IDR50 trillion, far lower than the same=20 period last year of IDR150 trillion. =20 The report adds that as a result, Bank Indonesia decreased the=20 target of credit growth to 13% from the previous target of 18%=20 to 20%. While next year, the central bank estimates that credit=20 growth increases from 15-18%. According to Mr. Kirnanto, other=20 challenges that the banking industry must face next year are=20 related to the central bank's policy on Indonesia's Architecture=20 Banking program that has obliged banks to have a minimum capital=20 of Rp80 billion in 2007. "The conditions will be the great=20 challenge for banks," he said. =20 * * * =20 As reported in the TCR-AP on July 27, 2006, Standard & Poor's Ratings Service raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. =20 Fitch gave Indonesia a BB- long-term foreign currency rating. Indonesia carries Moody's 'B1' rating. =20 =20 * Banker Urge Independent Management of State-Owned Banks --------------------------------------------------------- A circle of bankers said that the management of a holding=20 company of state-owned banks must be separated from the=20 government bureaucracy, Tempo Interactive reports. =20 According to Tempo, National Banks Association Head Sigit=20 Pramono explained that the formation of a holding company=20 becomes the main option of the Government to comply with a=20 single presence policy. The reason is that the option does not=20 have an impact on the socio-economic situation. However, the=20 Government's intervention in managing a holding company of=20 state-owned banks will enlarge the political aspect compared=20 with a commercial one. As a result, the Government's=20 intervention will instead hamper the objective of setting up a=20 bank holding company to form an international-class bank.=20 =20 "The holding company must be managed professionally so that the=20 intention of establishing a bank that can control the regional=20 market can be fulfilled," Mr. Sigit said.=20 =20 The Tempo report adds that this year, Bank Indonesia will issue=20 a single presence policy, which will ban bank owners from=20 controlling more than one bank. The policy, to be imposed on=20 all private and state banks, will be realized in 2010. By the=20 end of 2007, all owners or bank controllers must have reported=20 each bank's policy in order to comply with a single presence=20 policy. =20 * * * =20 As reported in the TCR-AP on July 27, 2006, Standard & Poor's Ratings Service raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. =20 Fitch gave Indonesia a BB- long-term foreign currency rating. Indonesia carries Moody's 'B1' rating. =20 =20 * Indonesia Starts to Get Top Marks From Foreign Investors ---------------------------------------------------------- Indonesia's image amongst foreign investors in the past has been=20 anything but flattering, Manik Mehta, of Bernama News, relates. =20 Fallen into disrepute because of its high-handed bureaucracy,=20 widespread corruption at every level, political uncertainty,=20 religious fanaticism and weak growth compared to the other Asean=20 countries, Indonesia, however, is now being tipped as the=20 region's "future dark horse". =20 It is even touted to have the potential to outstrip other=20 countries, including Malaysia, in terms of economic growth.=20 Indeed, Indonesia is being described as the "next India". =20 While the stock markets of China and India showed a strong=20 financial upsurge and, as part of the success story of the so- called BRIC (Brazil, Russia, India and China) constellation,=20 Indonesia with its 240 population remained an undiscovered=20 destination which frightened away many foreign investors because=20 of its volatility. =20 However, some analysts now see the proverbial light at the end=20 of the tunnel in Indonesia. =20 Notwithstanding the staple of bad news coming from the=20 archipelago -- whether it is violence fermented and carried out=20 by extremists or natural catastrophes causing death and=20 destruction -- Indonesia has also made significant progress in=20 recent years, according to some investments banks who find the=20 reservations against Indonesia are no longer justifiable. =20 They point out that the value of the Jakarta Composite Index,=20 for example, has increased four fold in the last three years. =20 According to the Merill-Lynch analysts, Indonesia could repeat=20 the miracle of the South Asian giant. =20 They cite the similarities between India and Indonesia: like=20 India, Indonesia also has a large domestic market. This has the=20 advantage that Indonesia, unlike Malaysia and other countries in=20 the region, would be less vulnerable to an economic slowdown in=20 the United States. =20 "As in India, consumption is the main driver of the economic=20 upturn," says Merrill-Lynch analyst Timothy Bond. Private=20 consumption accounts for some 65.4 per cent of the total=20 economic performance. =20 Only 22% is accounted by investments. In China, private=20 consumption accounts for 40% while investments make up a third=20 of the economic performance. =20 Should there be a weakening of the economy, countries having a=20 high volume of investments invariably tend to suffer more than=20 those having higher consumption. =20 It is not uncommon that the purchase of machinery or the setting=20 up of infrastructure declines by a fifth or more in bad economic=20 times, with repercussions on the overall economy. =20 Consumers, on the other hand, reduce their spending in the worst=20 case scenario by two to three percent. =20 As in India, demographics in Indonesia also favour the creation=20 of opportunities for future growth. Only one eighth of=20 Indonesia's population is over 60 years. =20 Almost a third of Indonesians is younger than 15. Indeed, as far=20 as its foreign trade is concerned, Indonesia has one advantage=20 over India: whereas the latter imports more than it exports,=20 Indonesia has been recording a modest trade surplus. Industrial=20 goods and raw materials each account for half of its exports. =20 The pundits are really impressed, particularly, by the fact that=20 after years of a moderate growth, Indonesia could recently=20 attain a new phase of economic dynamism. =20 If its GDP growth until 2002 was around three percent, it has=20 risen to five to six percent since then. =20 The "Indonesia story", as analysts tend to describe the=20 improving economic situation, should not be lost sight of.=20 Indeed, the bullish mood at Jakarta's stock exchange is expected=20 to continue even after 2007. =20 Experts say that a drop in the lending rate could provide a=20 strong impetus for the continuing rally at the stock exchange. =20 With 8%, Indonesia has the highest rate in the entire Asean=20 region. In comparison, Thailand has only 4.25% while Malaysia=20 has 3.75%. =20 Experts say that Indonesia has acquired some political stability=20 after the election of Susilo Bambang Yudhoyono as the president=20 two years ago. =20 The next round of elections will be held in 2009; the country's=20 image has improved with the ex general declaring a frontal war=20 against corruption. =20 The economic upturn which has kept pace with the political=20 stabilisation, has resulted in record profits for many big=20 companies of the country. The Deutsche Bank has assessed that=20 although Indonesia with a 14.5 rate/profit ratio appears more=20 favourable than India, the country needs to produce extremely=20 good growth figures to maintain the boom. =20 Experts at Deutsche Bank have, consequently, been recommending=20 only selected blue chip companies such as noodle producer=20 Indofood, construction subcontracting company Indocement,=20 infrastructure group United Tractors, the country's biggest=20 financial service provider Bank Mandiri, gas supplier Perusahaan=20 Gas Negara and telecommunications provider Telkom. =20 * * * =20 As reported in the TCR-AP on July 27, 2006, Standard & Poor's Ratings Service raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. =20 Fitch gave Indonesia a BB- long-term foreign currency rating. Indonesia carries Moody's 'B1' rating. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D J A P A N =3D=3D=3D=3D=3D=3D=3D=3D=3D =20 BANCO BRADESCO: Handling Santa Catarina Payroll for Five Years -------------------------------------------------------------- Banco Bradesco said in a statement that it has won a state=20 auction to handle the payroll for Santa Catarina state with a=20 BRL210 million bid. =20 According to Business News Americas, Santa Catarina has 122,000=20 workers and retirees on its payroll, which moves BRL288 million=20 per month. =20 BNamericas relates that Banco Bradesco's bid came in almost 50%=20 above the state's minimum price of BRL141 million. =20 Published reports say that Banco Bradesco initially offered=20 BRL200 million. However, the bank raised it to BRL210 million=20 after the local unit of Spain's Santander increased its bid to=20 BRL210mn from BRL146 million. =20 According to the reports, Banco Itau presented a BRL142-million=20 bid, while the local unit of UK bank HSBC offered BRL141=20 million. =20 BNamericas underscores that new central bank rules allowing=20 state workers to choose the bank where they receive their=20 paychecks, regardless of any contract between the state and a=20 financial institution, will take effect soon. =20 Larger banks in Brazil consider handling public payrolls as an=20 important cross-selling opportunity, particularly for payroll=20 and retirement loans, BNamericas states. =20 About Banco Bradesco =20 Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco --=20 http://www.bradesco.com.br/-- prides itself on serving low-and=20 medium-income individuals in Brazil since the 1960s. Bradesco is=20 Brazil's largest private bank, with more than 3,000 banking=20 branches, and also a leader in insurance and private pension=20 management. Bradesco has branches throughout Brazil as well as=20 one in New York, and Japan. Bradesco offers Internet banking,=20 insurance, pension plans, annuities, credit card services=20 (including football-club affinity cards for the soccer-mad=20 population), and Internet access for customers. The bank also=20 provides personal and commercial loans, along with leasing=20 services. =20 * * * =20 As reported on Nov. 27, 2006, Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of Banco Bradesco SA's foreign and local currency counterparty credit rating, however it changed the ratings outlook to positive from stable on both ratings: =20 -- Foreign currency counterparty credit rating =20 * to BB+/Positive/B from BB+/Stable/B =20 -- Local currency counterparty credit rating =20 * to BB+/Positive/B from BB+/Stable/B =20 -- Brazil national scale rating =20 * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1 =20 This is in connection with Standard & Poor's revised outlook on its long-term foreign and local currency ratings on 16 Brazilian entities to positive from stable, following the revision of the foreign and local currency rating outlooks on the Federative Republic of Brazil. =20 =20 CONVERIUM HOLDINGS: Moody's Lifts Debt Rating to Baa3 from B2 ------------------------------------------------------------- Moody's Investors Service has raised the senior debt rating of=20 Converium Holdings (North America) Inc. to Baa3 from B2.=20 =20 In the same action, Moody's has upgraded the insurance financial=20 strength rating of CHNA's subsidiary, Converium Reinsurance=20 (North America) Inc., to Baa3 from B2. The ratings carry a=20 stable outlook. =20 =20 These rating actions conclude a review initiated on Oct. 17=20 following an announcement by the former parent company that it=20 would sell CHNA and its subsidiaries to National Indemnity=20 Company, a subsidiary of Berkshire Hathaway Inc. The sale=20 closed on Dec. 14. =20 According to Moody's, the rating on CHNA's senior notes largely=20 reflects implicit support from Berkshire Hathaway, given that=20 CHNA's run-off subsidiaries remain under receivership (through a=20 letter of understanding with the Connecticut Insurance=20 Department) and lack the ability to pay dividends to service=20 debt. However, the debt will not be guaranteed by Berkshire=20 Hathaway or any of its subsidiaries. =20 The upgrade of CRNA acknowledges implicit support from the new=20 parent as well as the progress the company has made in running=20 off its liabilities in the past two years. Moody's believes the=20 new parent is committed to maintaining the solvency of CRNA and=20 would likely provide explicit support (for the benefit of=20 policyholders) should the need arise. Berkshire Hathaway=20 remains one of the most active acquirers and largest managers of=20 long-tail, run-off (re)insurance liabilities. =20 The last rating action on CHNA and its subsidiaries occurred on=20 Oct. 17 when Moody's placed the ratings on review for possible=20 upgrade, following the announcement by their former parent=20 company that it would sell its North American operations to=20 NICO. =20 Ratings upgraded with a stable outlook: =20 Converium Holdings (North America) Inc.=20 =20 * US$200 million 7.125% unsecured senior notes=20 due October 2023 to Baa3 from B2 =20 Converium Reinsurance (North America) Inc.=20 =20 * insurance financial strength rating to Baa3 from B2 =20 Headquartered in Zug, Switzerland, Converium Holding AG -- http://www.converium.com/-- provides treaty and individual coverage for risks including accident and health, credit and surety, e-commerce, third party and professional liability, life, and special casualty. The company also operates in Japan,=20 Germany, United Kingdom, France, Malaysia, Singapore, Australia,=20 Bermuda, Argentina, U.S.A., Brazil and Canada. =20 =20 DELPHI CORP: Asks for SEC's View on Foreign Currency Issues=20 ----------------------------------------------------------- Thomas S. Timko, Delphi Corporation's chief accounting officer=20 and controller, discloses that Delphi made a written submission=20 to the Office of the Chief Accountant of the Securities and=20 Exchange Commission on Dec. 18, 2006, requesting the SEC's view=20 of the most appropriate accounting treatment to be accorded to=20 the Foreign Currency Forward Contacts. "Once the SEC has=20 responded, Delphi will be able to complete its analysis and=20 determine whether a restatement of its previously issued=20 financial statements is required," Mr. Timko relates. =20 As reported in the Troubled Company Reporter on Nov. 13, 2006,=20 Delphi's independent auditors, Ernst & Young LLP, identified and=20 informed Delphi of a potential issue with the designation of=20 hedges related to foreign currency in the middle of October. =20 Specifically, Delphi became aware that the hedge designation for=20 foreign currency forward contracts it had entered into to hedge=20 exposure to foreign currency fluctuations may not have satisfied=20 the technical accounting rules under Statement of Financial=20 Accounting Standards No. 133, Accounting for Derivative=20 Instruments and Hedging Activities, as amended to qualify for=20 exemption from the more strict effectiveness testing=20 requirements.=20 =20 Consequently, Delphi said that its Quarterly Report on Form 10-Q=20 for the third quarter ended Sept. 30, 2006, could not be filed=20 within the prescribed time period because it could not complete=20 the preparation of the required information without unreasonable=20 effort and expense.=20 =20 Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/ -- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the=20 road worldwide. Delphi has regional headquarters in Japan,=20 Brazil and France. =20 Fitch Ratings has assigned a rating of 'BB-' to Delphi=20 Corporation's US$2 billion of debtor-in-possession credit=20 facilities. The DIP facilities will consist of a revolving=20 credit portion and a term loan portion and are to be pari passu=20 with each other in terms of priority of repayment, collateral,=20 and guarantees. The term loan and revolving credit will,=20 therefore, share the same ratings. =20 Standard & Poor's Ratings Services lowered its ratings on Delphi=20 Corp. to 'D' after the company's U.S. operations filed for=20 Chapter 11 bankruptcy protection. The recovery rating on=20 Delphi's senior secured bank facility was withdrawn. Delphi,=20 the largest U.S. manufacturer of automotive components, has=20 total debt of about US$6 billion and total unfunded pension=20 obligations and other postretirement employee benefit=20 liabilities of about US$14.5 billion. =20 The company filed for chapter 11 protection on Oct. 8, 2005=20 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,=20 Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,=20 Arps, Slate, Meagher & Flom LLP, represent the Debtors in their=20 restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.=20 Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,=20 represents the Official Committee of Unsecured Creditors. As of=20 Aug. 31, 2005, the Debtors' balance sheet showed=20 US$17,098,734,530 in total assets and US$22,166,280,476 in total=20 debts. (Delphi Bankruptcy News, Issue No. 51; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or =20 215/945-7000). =20 =20 DELPHI CORP: Secures US$4.4-Bil. DIP Loan Pledge from JP Morgan ------------------------------------------------------------- Delphi Corporation and its debtor-affiliates ask the U.S.=20 Bankruptcy Court for the Southern District of New York for=20 permission to borrow up to US$4,495,820,240 of postpetition DIP=20 financing from JP Morgan Chase Bank, N.A., as administrative=20 agent, and a syndicate of lenders pursuant to Sections 105, 361,=20 362, 363, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1), and 364(e)=20 of the Bankruptcy Code and Rules 2002, 4001, and 6004(g) of the=20 Federal Rules of Bankruptcy Procedure. =20 The Debtors relate that after reviewing the current strong=20 conditions in the capital markets and assessing the positive=20 momentum of their reorganization cases, they have determined=20 that they can refinance their existing DIP facility on more=20 favorable terms. =20 Accordingly, the Debtors solicited replacement financing from=20 various lenders, including the current DIP agent, John Wm.=20 Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,=20 in Chicago, Illinois, tells the Court. Mr. Butler notes that=20 the Debtors limited their solicitations to lenders who have=20 already conducted due diligence before. The Debtors expect to=20 emerge from Chapter 11 protection in the first half of 2007 and=20 it would take time for an unfamiliar lender to complete its=20 diligence. =20 After receiving proposals from JPMorgan and the other bidding=20 investment banks, the Debtors determined, with the assistance of=20 their advisors and counsel, that the proposal submitted by=20 JPMorgan offered the most favorable terms. =20 "Our new US$4.5 billion DIP financing provides an appropriate=20 foundation from which to negotiate and secure emergence=20 financing," Delphi Chairman and CEO Robert S. Miller said in a=20 press statement. "While there is much that remains to be=20 accomplished in our reorganization, Delphi and its stakeholders=20 are together navigating a course that should lead to consensual=20 resolution with our U.S. labor unions and GM while providing an=20 acceptable financial recovery framework for stakeholders." =20 3-Tranche Facility & Related Fees =20 The JPMorgan replacement DIP facility comprises three separate tranches: =20 Tranche Commitment ------- ---------- A US$1,750,000,000 first priority revolving Commitment =20 B US$250,000,000 first priority term loan commitment =20 C US$2,495,820,240 second priority term loan commitment =20 Up to US$325,000,000 of the Revolving Facility will be available=20 for the issuance of letters of credit by JPMorgan, any of its=20 banking affiliates, or the other Lenders as may agreed with the=20 Company. =20 In return for access to the Facility, the Debtors will pay a=20 Tranche A Commitment Fee equal to 3/8 of 1% per annum on the=20 unused amount of the Tranche A Commitment, which will be payable=20 monthly in arrears. =20 The Debtors will also be obligated to pay Letter of Credit Fees=20 equal to 2.50% per annum on the outstanding face amount of each=20 Letter of Credit plus customary fees for fronting, issuance,=20 amendments and processing, payable quarterly in arrears to the=20 Issuing Lender for its own account. =20 The Commitment Fees are non-refundable under all circumstances=20 once paid, Mr. Butler notes. =20 Interest Rate =20 The interest rates are equal to the JPMorgan's Interest=20 Alternate Base Rate plus 1.5% with respect to Tranche A and=20 Tranche B borrowings, and 2.25% with respect to Tranche C=20 borrowings. =20 Alternatively, at the Debtors' option, the Interest Rates for=20 interest periods of one, three or six months will be equal to=20 LIBOR plus 2.5% with respect to Tranche A and Tranche B=20 borrowings, and 3.25% with respect to Tranche C borrowings. =20 Interest will be payable monthly in arrears, on the Termination=20 Date and thereafter on demand. =20 Upon the occurrence and during the continuance of any default in=20 the payment of principal, interest or other amounts due under=20 the Replacement DIP Facility Agreement, interest will be payable=20 on demand at 2% above the then applicable rate. =20 Priority of Liens =20 The replacement financing facility offered by JPMorgan has=20 essentially the same terms as the Existing DIP Facility save for=20 certain key exceptions, Mr. Butler notes. Most noticeably, the=20 Debtors' the Replacement Financing Facility increases the size=20 of the Debtors' secured postpetition financing by approximately=20 US$2,495,000,000. "This increase is a result of the refinancing=20 of a US$2,495,000,000 prepetition credit facility with the=20 proceeds of a second-priority DIP term loan," Mr. Butler says. =20 The super-priority claims and liens granted to the Second- Priority DIP Term Loan will be junior to those granted to the=20 refinanced DIP Revolver and first-priority DIP term loan under=20 the Replacement Financing Facility. =20 The relative priority of liens of third party creditors with=20 respect to the Replacement Financing Facility that they have=20 with respect to the Existing DIP Facility will be unchanged. =20 Carve Out =20 The Replacement DIP Facility contains a "Carve-Out"=20 memorializing those claims and expenses that could be superior=20 in right to the Replacement DIP Lenders. Mr. Butler notes that=20 the Carve-Out is essentially identical to the carve-out approved=20 in the Final Existing DIP Order but certain fees and expenses of=20 the parties involved in the Debtors' proposed Framework=20 Agreements are included within the scope of protection. =20 Maturity Date =20 The Replacement DIP Facility will terminate on the earliest of: =20 (i) December 31, 2007; =20 (ii) the substantial consummation of a plan of reorganization; and =20 (iii) the acceleration of the loans and the early termination of the Commitment in accordance with the Replacement DIP Facility Agreement. =20 Events of Default =20 The events that will lead to the Debtors' default on the=20 Replacement DIP Facility are similar to that of the Existing DIP=20 Facility, Mr. Butler states. Events of default include: =20 * failure to pay; =20 * breach of covenants; =20 * failure to deliver a Borrowing Base Certificate when due; =20 * any material misrepresentation or false warranty; =20 * conversion of the Debtors' cases to Chapter 7, dismissal, appointment of examiner or trustee; =20 * approval of any superpriority claim, which is pari passu with or senior to the claims of the Existing DIP Lenders against the Debtors; and =20 * termination of the use of cash collateral. =20 A full-text copy of the Replacement DIP Financing Term Sheet is=20 available for free at http://researcharchives.com/t/s?177c =20 According to Mr. Butler, the First Priority Facilities will be=20 used: =20 -- to pay in full all obligations under Existing DIP Facility; =20 -- for working capital and for other general corporate purposes, including, without limitation, to make pension contributions; and =20 -- to pay related transaction costs, fees and expenses and to pay restructuring costs. =20 Under the terms of the Replacement Financing Facility with=20 JPMorgan, the Debtors estimate that they would save=20 approximately US$8,000,000 per month in financing costs. The=20 savings, among other things, will preserve additional value of=20 the Debtors' estates and will enhance the Debtors' ability to=20 implement their transition plan and emerge from Chapter 11=20 protection, Mr. Butler avers. =20 Hearing on Jan. 5 =20 The Court will convene a hearing to consider approval of the=20 plan investment and the plan support agreements at 10:00 a.m.=20 EST on January 5, 2007. Objections, if any, to the agreements=20 must be filed with the Bankruptcy Court by 4:00 p.m. EST on=20 Jan. 2, 2007. =20 Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/ -- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the=20 road worldwide. Delphi has regional headquarters in Japan,=20 Brazil and France. =20 Fitch Ratings has assigned a rating of 'BB-' to Delphi=20 Corporation's US$2 billion of debtor-in-possession credit=20 facilities. The DIP facilities will consist of a revolving=20 credit portion and a term loan portion and are to be pari passu=20 with each other in terms of priority of repayment, collateral,=20 and guarantees. The term loan and revolving credit will,=20 therefore, share the same ratings. =20 Standard & Poor's Ratings Services lowered its ratings on Delphi=20 Corp. to 'D' after the company's U.S. operations filed for=20 Chapter 11 bankruptcy protection. The recovery rating on=20 Delphi's senior secured bank facility was withdrawn. Delphi,=20 the largest U.S. manufacturer of automotive components, has=20 total debt of about US$6 billion and total unfunded pension=20 obligations and other postretirement employee benefit=20 liabilities of about US$14.5 billion. =20 The company filed for chapter 11 protection on Oct. 8, 2005=20 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,=20 Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,=20 Arps, Slate, Meagher & Flom LLP, represent the Debtors in their=20 restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.=20 Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,=20 represents the Official Committee of Unsecured Creditors. As of=20 Aug. 31, 2005, the Debtors' balance sheet showed=20 US$17,098,734,530 in total assets and US$22,166,280,476 in total=20 debts. (Delphi Bankruptcy News, Issue No. 51; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or =20 215/945-7000). =20 =20 FORD MOTOR: Applauds ITC's Ruling Revoking Steel Duty Orders ------------------------------------------------------------ The six largest automobile companies -- DaimlerChrysler AG, Ford=20 Motor Corp., General Motors Corp., Honda, Nissan, and Toyota=20 Motor North America -- with manufacturing facilities in the=20 United States has applauded a decision by the U.S. International=20 Trade Commission to revoke anti-dumping and countervailing duty=20 orders on "corrosion resistant steel" from Australia, Canada,=20 France, and Japan. The ITC left orders in place on imports from=20 Germany and Korea.=20 =20 "We are pleased that the ITC revoked most of the duties," said=20 Stephen E. Biegun, Vice President, International Governmental=20 Affairs, Ford Motor Company.=20 =20 "All of these duties are outdated and hurt American=20 manufacturing competitiveness and U.S. jobs while needlessly=20 helping a steel industry that is now profitable and healthy." =20 "[The] decision is a major step forward in restoring needed=20 competition to the U.S. steel market," Toyota Motor North=20 America group vice president Josephine Cooper said.=20 =20 "The ITC's decision supports both a strong steel industry and a=20 strong auto industry, and we look forward to working with our=20 colleagues in the steel industry to continue to strengthen=20 manufacturing in the United States." =20 The duties on corrosion resistant steel have been in place since=20 1993 on imports from six countries. As a result of [the] vote,=20 duties on imports from Australia, Canada, France, and Japan are=20 revoked, while duties on imports from Germany and Korea will be=20 retained until the next review in 2011.=20 =20 The six auto manufacturers -- DaimlerChrysler, Ford, General=20 Motors, Honda, Nissan and Toyota -- joined together for the=20 first time as a group in a trade case to urge revocation of=20 duties on corrosion-resistant steel because of their serious=20 concern regarding access to, and availability of, competitively- priced steel. During the hearing, the companies demonstrated=20 that the U.S. steel industry is now profitable, has healthy=20 long-term prospects, and no longer needs government protection. =20 Headquartered in Dearborn, Michigan, Ford Motor Company=20 (NYSE: F) -- http://www.ford.com/-- manufactures and =20 distributes automobiles in 200 markets across six continents=20 including Brazil and Mexico in Latin America. With more than=20 324,000 employees worldwide, the company's core and affiliated=20 automotive brands include Aston Martin, Ford, Jaguar, Land=20 Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-=20 related services include Ford Motor Credit Company and The Hertz=20 Corp.=20 =20 The company also has operations in Japan. =20 * * *=20 =20 Standard & Poor's Ratings Services affirmed its 'B' bank loan=20 and '2' recovery ratings on Ford Motor Co. after the company=20 increased the size of its proposed senior secured credit=20 facilities to between US$17.5 billion and US$18.5 billion, up=20 from US$15 billion.=20 =20 Fitch Ratings downgraded Ford Motor Company's senior unsecured=20 ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of=20 both the secured facilities and the senior unsecured convertible=20 notes being offered.=20 =20 Moody's Investors Service assigned a Caa1, LGD4, 62% rating to=20 Ford Motor Company's US$3 billion of senior convertible notes=20 due 2036. =20 =20 FORD MOTOR: Expects to Become No. 3 as Toyota Gains No. 2 Spot -------------------------------------------------------------- Ford Motor Co. expects to become the No. 3 company in U.S. auto=20 sales as early as January 2007, according to its sales forecast. =20 Ford has held the No. 2 position in the American car market=20 since the 1920s. =20 Rival Toyota Motor Corp. will gain the No. 2 spot behind General=20 Motors as it introduces its new Tundra truck in showrooms in=20 February, published reports say. =20 According to its own projections, Edmunds.com, which provides=20 advice on American car market, says light vehicle sales in 2007=20 will be near the 2006 levels of 16.5 million. =20 According to ConsumerAffairs.Com, Toyota will be close to=20 unseating General Motors as the world's biggest auto=20 manufacturer because of high demand from Brazil, Russia, India,=20 and China. =20 About Ford Motor Co. =20 Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE:=20 F) -- http://www.ford.com/-- manufactures and distributes =20 automobiles in 200 markets across six continents. With more=20 than 324,000 employees worldwide, the company's core and=20 affiliated automotive brands include Aston Martin, Ford, Jaguar,=20 Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. =20 * * * =20 As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan=20 and '2' recovery ratings on Ford Motor Co. after the company=20 increased the size of its proposed senior secured credit=20 facilities to between US$17.5 billion and US$18.5 billion, up=20 from US$15 billion. =20 As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of both the secured facilities and the senior unsecured convertible notes being offered. =20 As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes=20 due 2036. =20 =20 MITSUBISHI MOTORS: Reveals November Production & Sales Results -------------------------------------------------------------- Mitsubishi Motors Corporation, on Dec. 25, 2006, announced=20 global production, as well as domestic sales and export results=20 for November 2006. =20 Total global production came in at 118,726 units, a small=20 decline of 3.3% from a year ago period. Japanese production=20 increased 13.2% year-on-year to 71,685 units. This is due to=20 increase in production volume of U.S. "Outlander", European=20 "Outlander" and European "Pajero". =20 Total vehicle sales in Japan reached 21,289 units, slight 0.8%=20 increase from last year's figure, marking the nineteenth=20 consecutive month of year-on-year sales gains due to=20 contribution of new models such as "i", "eK-Wagon" and "Pajero".=20 Registered vehicles charted sales of 5,939 units, 74.5% of the=20 year-ago figure. Mini-car sales continued year-on-year growth=20 of 15,350 units, 116.9% of the total for November 2005. Total=20 sales for passenger cars increased 11.3% year-on-year to 15,730=20 units, while commercial vehicle sales dropped to 5,559 units,=20 20.3% less than the same period last year. =20 Overseas production totaled 47,041 units, 79.1% of the year-ago=20 figure. European production increased 11.2% to 7,126 units of=20 last year's total due to continued favorable sales of "Colt CZC"=20 Cabriolet. North American production came in to 8,510 units,=20 year-on-year of 99.3%. Asian production totaled 27,652 units, a=20 29.8% decline from November 2005's levels, representing=20 continued weakness in Asian markets such as Malaysia and Taiwan,=20 where economic conditions are not favorable for the industry. =20 Total exports from Japan increased to 43,264 units, 145.6% of=20 the year-ago level. Exports to Europe increased to 14,612=20 units, 154.4% of the level seen last year due to launch of new=20 "Pajero" and "Outlander" models in the European market. Exports=20 to Asia came to 2,007 units, 57.5% of the last-year period.=20 Exports to North America rose to 5,964 units, 229.6% of the=20 November 2005 total due to continued healthy orders of the new=20 "Outlander" model in the U.S. market. =20 About Mitsubishi Motors =20 Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few =20 automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. =20 The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on Jan. 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." =20 The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. =20 * * * =20 As reported by the Troubled Company Reporter - Asia Pacific on Sept. 29, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. S&P said the outlook on the long-term rating is stable. =20 As reported by the Troubled Company Reporter - Asia Pacific on Aug. 4, 2006, Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. =20 As reported by the Troubled Company Reporter - Asia Pacific on July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. =20 =20 NIKKO CORDIAL: Pres. & Chairman Resign Over Accounting Scandal -------------------------------------------------------------- Two senior executives at Nikko Cordial Corp. -- President=20 Junichi Arimura and Chairman Masashi Kaneko -- quit their posts=20 effective Dec. 26, 2006, over charges that the company committed=20 accounting irregularities, the Associated Press relates. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Dec. 22, 2006, Japan's Securities and Exchange Surveillance=20 Commission began investigating Nikko Cordial for allegedly=20 falsifying its annual financial statements for the business year=20 ended March 30, 2005, declaring JPY14 billion in false profits,=20 and using them to procure money from the market. =20 The accounting irregularities stemmed from the issue of=20 exchangeable bonds to Nikko Principal Investment Japan Ltd., a=20 Nikko Cordial subsidiary, in 2004, and the August 2004 purchase=20 of telecommunications company Bellsystem24 Inc. by Nikko=20 Principal Investments Japan. =20 The AP recounts that last week, the SESC has recommended a=20 JPY500 million (US$4.21 million) fine against Nikko Cordial=20 after the company announced that it will correct earnings for=20 fiscal 2004 and 2005, as inappropriate booking of proceeds from=20 derivatives trading helped inflate its earnings. =20 The Tokyo Stock Exchange has placed shares of Nikko Cordial on=20 its supervisory list for review until the exchange finishes=20 examining a correction in the company's financial statement and=20 decides whether it violated listing rules. =20 "We have no choice but to accept the view that we systematically=20 reported fraudulent (figures)," Mr. Arimura told reporters. "I=20 would like to offer my heartfelt apologies." =20 AP relates that Nikko Cordial has tapped director Shoji=20 Kuwashima to be its new president. =20 About Nikko Cordial Corporation =20 Headquartered in Tokyo, Japan, Nikko Cordial Corporation --=20 http://www.nikko.jp/-- is mainly engaged in the provision of =20 financial services in the securities-related field. The Company operates in four business segments. The Retail segment provides consulting services for financial products management. The Asset Management segment provides asset management services for individual, corporate and foreign investors. The Investment Banking segment provides corporate finance and capital market services, mergers and acquisitions, advisory services, trading services for institutional investors and research services. The Merchant Banking segment is involved in the investment of corporate issued stocks, bonds, securities-related financial products and other financial products. Nikko Cordial has 62 consolidated subsidiaries. It has oversea operations in the United States, the United Kingdom, Luxemburg and Singapore. The Company has a global network. =20 On April 12, 2006, Fitch Ratings upgraded Nikko Cordial Corp.'s individual rating to C from C/D. =20 The Troubled Company Reporter - Asia Pacific reported on=20 December 22, 2006, that Fitch placed its ratings on Nikko=20 Cordial Corp. and Nikko Cordial Securities Inc. on Rating Watch=20 Negative following the decision announced on Dec. 18=20 by the Tokyo Stock Exchange to place the shares of NCC on its=20 official watchlist pending the full investigation into reported=20 accounting breaches by the company. =20 =20 NORTHWEST AIRLINES: In Talks to Acquire Mesaba Aviation ------------------------------------------------------- Northwest Airlines Corp. is planning to acquire Mesaba Aviation=20 Inc., a deal that would generate cost savings and protect Mesaba=20 workers' jobs, Kathy Grayson writes for the Minneapolis/St. Paul=20 Business Journal.=20 =20 Pursuant to the deal, Northwest would co-sponsor Mesaba's=20 reorganization plan for Court-approval and acquire Mesaba=20 through that process. =20 Northwest CEO Doug Steenland disclosed that the proposed deal is=20 another move in its restructuring process designed to reshape=20 and optimize the Northwest fleet, realize competitive labor and=20 non-labor costs, and recapitalize its balance sheet, the=20 Business Journal relates. =20 Citing Northwest spokesman Bill Mellon, the Associated Press=20 reports that the acquisition would not involve a cash=20 transaction. Northwest intends to operate Mesaba as a wholly=20 owned subsidiary, Mr. Mellon adds. =20 AP reports that Mesaba President John Spanjers said that the=20 Northwest ownership would secure its core business and place the=20 carrier for future growth. =20 About Mesaba Aviation =20 Headquartered in Eagan, Minnesota, Mesaba Aviation, Inc., dba Mesaba Airlines -- http://www.mesaba.com/-- operates as a=20 Northwest Airlink affiliate under code-sharing agreements with Northwest Airlines. The company filed for chapter 11 protection on Oct. 13, 2005 (Bankr. D. Minn. Case No. 05-39258). Michael=20 L. Meyer, Esq., at Ravich Meyer Kirkman McGrath & Nauman PA, represents the Debtor in its restructuring efforts. Craig D. Hansen, Esq., at Squire Sanders & Dempsey, L.L.P., represents=20 the Official Committee of Unsecured Creditors. When the Debtor=20 filed for protection from its creditors, it listed total assets=20 of $108,540,000 and total debts of US$87,000,000. =20 About Northwest Airlines =20 Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/=20 -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and=20 approximately 1,400 daily departures. Northwest is a member of=20 SkyTeam, an airline alliance that offers customers one of the=20 world's most extensive global networks. Northwest and its=20 travel partners serve more than 900 cities in excess of 160=20 countries on six continents. The company and 12 affiliates=20 filed for chapter 11 protection on Sept. 14, 2005 (Bankr.=20 S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and=20 Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP=20 in New York, and Mark C. Ellenberg, Esq., at Cadwalader,=20 Wickersham & Taft LLP in Washington represent the Debtors in=20 their restructuring efforts. =20 The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for=20 protection from their creditors, they listed US$14.4 billion in=20 total assets and US$17.9 billion in total debts. The Debtors'=20 exclusive period to file a chapter 11 plan expires on Jan. 16,=20 2007. =20 (Northwest Airlines Bankruptcy News, Issue No. 47; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)=20 =20 In July 2006, Northwest Airlines Corp. unit Northwest Airlines=20 Inc. reached a tentative concessionary contract agreement with=20 its flight attendants' union. Standard & Poor's Ratings=20 Services affirmed its 'D' corporate credit ratings on both=20 entities, which are determined by the companies' bankruptcy=20 status. =20 =20 PACHINKO WORLD: Files Form 15 to Voluntarily Deregister Stock ------------------------------------------------------------- Pachinko World, Inc., an owner and operator of stores in Japan=20 offering pachinko gaming entertainment, disclosed on Dec. 22,=20 2006, that, consistent with its press release dated November 22,=20 2006, it has filed a Form 15 with the United States Securities=20 and Exchange Commission to voluntarily deregister its common=20 stock and suspend its reporting obligations under the Securities=20 Exchange Act of 1934, as amended. =20 Pachinko World's obligation to file certain reports with the=20 SEC, including Forms 10-KSB, 10-QSB and 8-K, was immediately be=20 suspended upon the filing of the Form 15, and accordingly,=20 Pachinko World does not intend to file its Form 10-KSB for the=20 year ended May 31, 2007 with the SEC.=20 =20 Pachinko World expects that the deregistration of its common=20 stock will become effective 90 days after the date of filing the=20 Form 15 with the SEC. =20 About Pachinko World =20 Pachinko World (formerly Exam USA, Inc.), through its subsidiaries, primarily engages in the ownership and operation of stores in Japan offering pachinko gaming entertainment. As of May 31, 2006, the Company operated seven stores, comprising 3,392 pachinko and pachislo machines. Its stores are located in the Aichi prefecture and Tochigi prefecture in the north of Japan's greater Kanto area. Founded by Yoneji Hirabayashi in 1956, the Company is headquartered in Huntington Beach, California. =20 The Troubled Company Reporter - Asia Pacific reported on Sept. 22, 2006, that McKennon, Wilson & Morgan LLP expressed substantial doubt about Pachinko World's ability to continue as a going concern after auditing the Company's financial statements for the fiscal year ended May 31, 2006. The auditing firm pointed to the Company's working capital deficiency at May 31, 2006. =20 Pachinko World incurred a US$109,000 net loss for the fiscal=20 year ended May 31, 2006, versus a net loss of US$2.7 million in=20 2005. =20 =20 SAMSONITE CORP: Tender Offer for 8-7/8% Notes Expired ----------------------------------------------------- Samsonite Corp.'s offer to purchase any and all of the=20 US$164,970,000 outstanding 8-7/8% Senior Subordinated Notes due=20 2011 and EUR100,000,000 outstanding Floating Rate Senior Notes=20 due 2010 expired on Dec. 21, 2006. The Offers and the related=20 consent solicitations are described in Samsonite's Offers to=20 Purchase and Consent Solicitation Statement, dated=20 Nov. 20, 2006. =20 As of Dec. 20, 2006, US$164,710,000 in aggregate principal=20 amount, or approximately 99.84% of the outstanding Senior=20 Subordinated Notes, and EUR85,254,000 in aggregate principal=20 amount, or approximately 85.25% of the outstanding Floating Rate=20 Notes have been validly tendered. =20 Samsonite Corporation -- http://www.samsonite.com--=20 manufactures, markets and distributes luggage and travel-related=20 products. The company's owned and licensed brands, including=20 Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,=20 Lacoste and Timberland, are sold globally through external=20 retailers and 284 company-owned stores. Executive offices are=20 located in London. The company has global locations, including=20 in Japan, Australia, Indonesia, India, and the United States. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Dec. 15, 2006, Standard & Poor's Ratings Services assigned its=20 loan and recovery ratings to Samsonite Corp.'s US$530 million=20 senior secured credit facility. The facility consists of an US$80 million six-year revolving credit and a US$450 million=20 seven-year term loan B. The loan is rated 'BB-' with a recovery=20 rating of '3', indicating the expectation for meaningful=20 recovery of principal in the event of a payment default. =20 The TCR-AP then reported on Dec. 18, 2006, that Moody's=20 Investors Service confirmed the B1 corporate family rating for Samsonite Corporation. =20 Moody's also assigned Ba3 ratings to the proposed US$80 million senior secured revolving credit facility and US$450 million term loan B. Proceeds from the new facilities, along with a portion out outstanding cash balances, will be used to fund a special dividend and debt repurchase, and pay associated fees and premiums. =20 =20 SAMSONITE CORP: Declares US$175MM Cash Distribution on Stocks=20 ------------------------------------------------------------- Samsonite Corp.'s board of directors approved a special cash distribution in an aggregate amount of US$175 million consisting of dividends on the company's common stock and convertible preferred stock and certain dilution adjustment payments to holders of the company's outstanding stock options. The total dividend per share of common stock will be within a range of US$0.2273 and US$0.2347 and the dividend per share of convertible preferred stock is US$359.33. The minimum aggregate amount of dividends on the company's common stock is US$164,122,676 and the maximum aggregate amount of dividends on the company's convertible preferred stock is US$5,485,172. The aggregate amount of dilution adjustment payments is approximately US$5.4 million. =20 As of Dec. 21, 2006, holders of more than 90% of the convertible preferred stock have elected to convert their convertible preferred stock into common stock effective as of Jan. 4, 2007. To the extent more holders of convertible preferred stock convert their convertible preferred stock into common stock on or prior to Jan. 4, 2007, the total dividends payable on the common stock will increase and the total dividends payable on the convertible preferred stock will decrease. =20 The Board established Jan. 2, 2007, as the record date for the dividends on the common stock and Jan. 5, 2007, as the record date for the dividends on the convertible preferred stock. The Board established Jan. 5, 2007, as the payment date for the dividends on the common stock and the convertible preferred stock (with the possibility of a supplemental payment on Jan. 9, 2007, in respect of the common stock). =20 While the aggregate amount of the Distribution has been fixed by the Board at US$175 million, the exact amount of dividends paid on the common stock and the convertible preferred stock will not be known until Jan. 5, 2007. Any supplemental portion of the dividends payable on the common stock that are not paid on Jan. 5, 2007, will be paid on Jan. 9, 2007. =20 As previously disclosed in the Notice and Information Package distributed to holders of the convertible preferred stock, on Dec. 18, 2006, holders of more than 90% of the company's convertible preferred stock entered into written agreements with the company electing to convert their convertible preferred stock into common stock effective as of Jan. 4, 2007 (the day prior to the payment of dividends on the convertible preferred stock). =20 The company also announced that its offers to purchase any and all of its US$164,970,000 outstanding 8-7/8% Senior Subordinated Notes due 2011 and EUR100,000,000 outstanding Floating Rate Senior Notes due 2010 expired at 9:00 a.m., New York City time, on Dec. 21, 2006. As of 9:00 a.m., New York City time, on Dec. 21, 2006, US$164,710,000 million aggregate principal amount, or approximately 99.84% of the outstanding Senior Subordinated Notes, and EUR85,331,000 aggregate principal amount, or approximately 85.33% of the outstanding Floating Rate Notes, have been validly tendered and accepted for payment by the company. The company's acceptance of the validly tendered notes made operative the applicable supplemental indenture relating to each series of notes. =20 The company expects to redeem the remaining EUR14,669,000 aggregate principal amount of Floating Rate Notes in January 2007 pursuant to the terms of the indenture governing the Floating Rate Notes at a price of 102% of the principal amount of each Floating Rate Note, plus accrued and unpaid interest through the redemption date. =20 On Dec. 21, 2006, the company closed its new credit facility consisting of a US$450 million senior secured term loan facility and an US$80 million senior secured revolving credit facility, including a letter of credit sub-facility. The proceeds of the term loan facility, together with a portion of the proceeds of the revolving credit facility and cash on hand, are expected to be used to finance the payment of the distribution and the purchase of the validly tendered notes pursuant to the Offers. The new credit facility is secured by substantially all of the company's domestic assets and certain foreign assets. =20 Samsonite Corporation -- http://www.samsonite.com--=20 manufactures, markets and distributes luggage and travel-related=20 products. The company's owned and licensed brands, including=20 Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,=20 Lacoste and Timberland, are sold globally through external=20 retailers and 284 company-owned stores. Executive offices are=20 located in London. The company has global locations, including=20 in Japan, Australia, Indonesia, India, and the United States. =20 As reported in the Troubled Company Reporter - Asia Pacific on=20 Dec. 15, 2006, Standard & Poor's Ratings Services assigned its=20 loan and recovery ratings to Samsonite Corp.'s US$530 million=20 senior secured credit facility. The facility consists of an US$80 million six-year revolving credit and a US$450 million=20 seven-year term loan B. The loan is rated 'BB-' with a recovery=20 rating of '3', indicating the expectation for meaningful=20 recovery of principal in the event of a payment default. =20 The TCR-AP then reported on Dec. 18, 2006, that Moody's=20 Investors Service confirmed the B1 corporate family rating for Samsonite Corporation. =20 Moody's also assigned Ba3 ratings to the proposed US$80 million senior secured revolving credit facility and US$450 million term loan B. Proceeds from the new facilities, along with a portion out outstanding cash balances, will be used to fund a special dividend and debt repurchase, and pay associated fees and premiums. =20 =20 SENSATA TECH: Completes Purchase of Honeywell's FTAS Business ------------------------------------------------------------- Sensata Technologies B.V. has closed the acquisition of=20 Honeywell's First Technology Automotive and Special Products or=20 FTAS business. =20 Concurrently, Sensata completed a EUR73 million financing in=20 support of the transaction through an incremental facility under=20 its existing Credit Agreement. Terms were in line with the=20 original issuance. =20 FTAS designs, develops and manufactures high-value automotive=20 sensor and electromechanical control solutions. Its products=20 are sold to automotive OEMs, Tier I automotive suppliers, large=20 vehicle and off-road OEMs, and industrial manufacturers. For=20 the year ended Dec. 31, 2005, FTAS had sales of approximately=20 US$69 million. =20 "We are pleased to have completed the divestiture of both non- core First Technology businesses in 2006," said Dave Cote,=20 Honeywell Chairman and CEO. "With the sale of FTAS today and=20 First Technology Safety and Analysis earlier this year, we have=20 finalized acquisition of the First Technology Gas Sensing=20 business at an attractive valuation in an industry with great=20 growth prospects. We continue to execute on integrating the=20 business into Honeywell Analytics and establishing our position=20 as a world leader in gas detection technologies." =20 FTAS was acquired by Honeywell as part of its acquisition of=20 First Technology plc earlier this year. Honeywell completed its=20 acquisition of First Technology plc on March 24, and the sale of=20 First Technology Safety and Analysis on May 19. =20 Formerly the Sensors & Controls business of Texas Instruments,=20 Sensata Technologies was acquired by Bain Capital, LLC, a=20 leading global private investment firm, in April, 2006. Sensata=20 is a leading designer and manufacturer of sensors and controls=20 for global leaders in the automotive, appliance, aircraft,=20 industrial and HVAC markets. It has nine technology and=20 manufacturing centers in eight countries, and sales offices=20 throughout the world. Revenues for 2005 were approximately=20 US$1.1 billion. =20 About Honeywell =20 Honeywell International is a US$31 billion diversified=20 technology and manufacturing leader, serving customers worldwide=20 with aerospace products and services; control technologies for=20 buildings, homes and industry; automotive products;=20 turbochargers; and specialty materials. Based in Morris=20 Township, N.J., Honeywell's shares are traded on the New York,=20 London, Chicago and Pacific Stock Exchanges.=20 =20 About Sensata Technologies =20 Headquartered in Attleboro, Massachusetts, Sensata Technologies=20 -- http://www.sensata.com/-- is a supplier of sensors and=20 controls across a range of markets and applications. The=20 company has manufacturing locations in Japan, Brazil, Mexico,=20 China and the Netherlands. =20 The Troubled Company Reporter - Asia Pacific reported on Dec. 15, 2006, that Moody's Investors Service affirmed Sensata=20 Technologies B.V.'s B2 corporate family and probability of=20 default ratings. =20 Moody's rating affirmation pertains to Sensata's then-pending acquisition of First Technology Automotive and Special Products from Honeywell and its subsequent financing via a US$95 million add-on to Sensata's existing senior secured Term Loan B. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D K O R E A =3D=3D=3D=3D=3D=3D=3D=3D=3D =20 DURA AUTOMOTIVE: Wants Until January 31 to File Schedules --------------------------------------------------------- DURA Automotive Systems, Inc. and its debtor-affiliates,=20 pursuant to Rule 1007(c) of the Federal Rules of Bankruptcy=20 Procedure, and Rule 1007-1 of the Local Rules of Bankruptcy=20 Practice and Procedure of the United States Bankruptcy Court for=20 the District of Delaware, ask for the further extension to Jan. 31, 2007, the deadline to file their:=20 =20 -- schedules of assets and liabilities; =20 -- schedules of current income and expenditures; =20 -- schedules of executory contracts and unexpired leases; and =20 -- statements of financial affairs. =20 Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in=20 Wilmington, Delaware, tells Judge Carey that, because of the=20 decentralized nature of their businesses, the Debtors' progress=20 in collecting, reviewing, and assembling information for the=20 Schedules and Statements have been slow. =20 In addition, Mr. Collins relates, the Debtors have engaged a new=20 financial advisor, AlixPartners, LLP. AlixPartners has assessed=20 the information that has been gathered by the Debtors and=20 determined that they will require additional time to complete=20 the Schedules and Statements. =20 Headquartered in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent=20 designer and manufacturer of driver control systems, seating=20 control systems, glass systems, engineered assemblies,=20 structural door modules and exterior trim systems for the global=20 automotive and recreation & specialty vehicle industries. DURA,=20 which operates in 63 locations, sells its products to every=20 major North American, Asian and European automotive original=20 equipment manufacturer and many leading Tier 1 automotive=20 suppliers. It currently operates in 63 locations including=20 joint venture companies and customer service centers in 14=20 countries. The company has three locations in Asia, namely in China, Japan and Korea. =20 * * * =20 The Troubled Company Reporter - Asia Pacific reported on Nov. 6, 2006, that Fitch Ratings placed one tranche from one=20 public collateralized debt obligation and one tranche from=20 private CDO on Rating Watch Negative following Dura Automotive=20 Corp.'s filing for protection under Chapter 11. =20 Standard & Poor's Ratings Services lowered its corporate credit rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The rating outlook is negative. =20 * * * =20 The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). =20 =20 DURA AUTOMOTIVE: Wants to File Lear Settlement Pact Under Seal -------------------------------------------------------------- DURA Automotive Systems, Inc. and its debtor-affiliates seek=20 authority from the United States Bankruptcy Court for the=20 District of Delaware to file, under seal, the Settlement=20 Agreement and the terms thereof, and the Motion of Lear=20 Corporation. =20 Pursuant to various documents and purchase orders, Dura=20 Automotive Systems, Inc., supplied component parts that Lear=20 Corporation used to fulfill manufacturing agreements with=20 General Motors, Ford, and other original equipment=20 manufacturers, relates Albert Togut, Esq., at Togut, Segal &=20 Segal LLP, in New York. =20 Several years before the Debtors filed for chapter 11=20 protection, Lear brought an action in State Court against Dura=20 to recover damages for claims asserted against Lear by GM and=20 Ford. Lear sought (i) damages for alleged defects in goods that=20 Dura sold to Lear, which Lear in turn used in products that it=20 provided to GM and Ford, and (ii) injunctive relief to require=20 Dura to continue shipping to Lear despite Lear's recoupment from=20 amounts due to Dura. The State Court granted Lear's injunctive=20 relief and required Dura to ship goods without payment from=20 Lear. =20 In the months prior to the Petition Date, the Debtors and Lear=20 reached a comprehensive settlement of the Lear Claims and the=20 Lear Action and the modification of the Lear Contracts. =20 Pursuant to Sections 105 and 365 of the Bankruptcy Code and Rule=20 9019 of the Federal Rules of Bankruptcy Procedure, the Debtors=20 seek the Court's authority to assume the Settlement Agreement=20 and the Purchase Orders. =20 As a condition to assumption, Lear has required that Dura keep=20 the terms of the Settlement Agreement confidential, particularly=20 because certain terms therein are commercially sensitive,=20 Mr. Togut tells the Court. This confidentiality requirement is=20 memorialized in the Settlement Agreement. =20 Mr. Togut explains that the automotive industry is highly=20 competitive, and many of the parties-in-interest in the Debtors'=20 Chapter 11 cases are direct competitors or customers of the=20 Debtors and Lear. If the information contained in the=20 Settlement Agreement is disclosed pursuant to a public filing,=20 the Debtors' competitors and customers would gain access to=20 specific confidential and commercial information related to the=20 Debtors' business relationship with Lear that could be=20 detrimental to the Debtors' reorganization efforts, Mr. Togut=20 avers. =20 Notwithstanding their request, the Debtors have provided copies=20 of the Settlement Agreement and the Lear Motion to Lear, the=20 Official Committee of Unsecured Creditors, and the Office of the=20 United States Trustee. =20 In Dura's Form 10-Q filing with the Securities and Exchange=20 Commission, Keith R. Marchiando, Dura's vice president and chief=20 financial officer, said that subsequent to October 1, 2006, Dura=20 settled the warranty matter, along with a previously outstanding=20 warranty matter, to Lear for approximately $9,000,000. =20 "We had previously recorded reserves for our estimated exposure=20 of the known outstanding matter. However, we recorded an=20 additional charge of [US$5,400,000] related to the final=20 settlement of both matters . . ." Mr. Marchiando said. =20 Headquartered in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent=20 designer and manufacturer of driver control systems, seating=20 control systems, glass systems, engineered assemblies,=20 structural door modules and exterior trim systems for the global=20 automotive and recreation & specialty vehicle industries. DURA,=20 which operates in 63 locations, sells its products to every=20 major North American, Asian and European automotive original=20 equipment manufacturer and many leading Tier 1 automotive=20 suppliers. It currently operates in 63 locations including=20 joint venture companies and customer service centers in 14=20 countries. The company has three locations in Asia, namely in China, Japan and Korea. =20 * * * =20 The Troubled Company Reporter - Asia Pacific reported on Nov. 6, 2006, that Fitch Ratings placed one tranche from one=20 public collateralized debt obligation and one tranche from=20 private CDO on Rating Watch Negative following Dura Automotive=20 Corp.'s filing for protection under Chapter 11. =20 Standard & Poor's Ratings Services lowered its corporate credit rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The rating outlook is negative. =20 * * * =20 The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). =20 =20 SK CORP: To Invest US$28 Million for Australian Coal Mine --------------------------------------------------------- SK Corp. will invest about US$28 million (KRW26 billion) in 2007=20 to mine soft coal in Australia, The Korea Times reports. =20 The move, The Times notes, follows the Korean Government's=20 policy of increasing investment in overseas minerals. =20 Early this year, SK Corp., in coordination with Korea Resources=20 Corp. sought permits to take part in three additional coal=20 projects, one of which is in Australia, the newspaper relates. =20 About SK Corporation =20 Headquartered in Seoul, South Korea, SK Corporation -- http://eng.skcorp.com/-- is an energy and petrochemical company=20 with 4,916 employees and 22 offices around the world in 2005. The company is strategically positioned as Korea's largest and Asia's leading refiner next to Sinopec and PetroChina. SK Corp. currently explores, develops and produces oil in 13 nations that span Africa, Asia and the Americas. =20 Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency Long-Term Debt Rating effective February 17, 2006. =20 =20 SK CORP: November 2006 Sales Decrease 1.4% from Last Year --------------------------------------------------------- SK Corp.'s November 2006 sales declined 1.4% compared to the=20 same month last year, Yonhap News reports, citing the company's=20 regulatory filing as source. =20 The decrease was reportedly due to its exporting lesser fuel=20 oil. =20 SK Corp. posted KRW1.91 trillion (US$2.05 billion) in sales in=20 November 2006, compared with KRW1.94 trillion in November 2005,=20 the regulatory filing disclosed. =20 =20 About SK Corporation =20 Headquartered in Seoul, South Korea, SK Corporation -- http://eng.skcorp.com/-- is an energy and petrochemical company=20 with 4,916 employees and 22 offices around the world in 2005. The company is strategically positioned as Korea's largest and Asia's leading refiner next to Sinopec and PetroChina. SK Corp. currently explores, develops and produces oil in 13 nations that span Africa, Asia and the Americas. =20 Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency Long-Term Debt Rating effective February 17, 2006. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D M A L A Y S I A =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =20 SOLECTRON CORP: Posts US$3B in Sales for First Quarter FY 2007 -------------------------------------------------------------- Solectron Corp. reported sales of US$3.00 billion in the first=20 quarter of fiscal 2007, an increase of 3.3% over fourth quarter=20 fiscal 2006 revenues of US$2.90 billion, and an increase of 22%=20 over first quarter fiscal 2006 revenues of US$2.46 billion. =20 The company reported GAAP profit after tax from continuing=20 operations of US$6.6 million, or US$0.01 per share, in the first=20 quarter of fiscal 2007, compared with a GAAP profit after tax=20 from continuing operations of US$38.8 million, or US$0.04 per=20 share, in the fourth quarter of fiscal 2006. First quarter=20 fiscal 2007 results include US$34.6 million in charges related=20 to a restructuring program announced in October 2006. In the=20 first quarter of fiscal 2006, Solectron reported a GAAP profit=20 after tax from continuing operations of US$20.2 million, or=20 US$0.02 per share. =20 Non-GAAP profit after tax was US$47.6 million, or US$0.05 per=20 share, in the first quarter of fiscal 2007, compared with non- GAAP profit after tax of US$54.8 million, or US$0.06 per share,=20 for the fourth quarter of fiscal 2006. In the first quarter of=20 fiscal 2006, Solectron reported non-GAAP profit after tax of=20 US$28.1 million, or US$0.03 per share. Non-GAAP financial=20 results do not include restructuring costs, impairment charges,=20 amortization of intangibles, stock-based compensation expenses,=20 or other unusual or infrequent items.=20 =20 "I am pleased with the strength of our revenue in the first=20 quarter," said Mike Cannon, president and chief executive=20 officer of Solectron. "While first quarter gross margin did not=20 meet our expectations, we are committed to achieving the growth=20 and profitability targets we have set for Fiscal 2007, and=20 expect to show an improving trend in profitability in the second=20 half of the year." =20 Second Quarter 2007 Guidance =20 Fiscal second quarter guidance is for sales of US$2.80 billion=20 to US$3.00 billion, and for non-GAAP EPS from continuing=20 operations in a range of 4 cents to 6 cents, on a fully diluted=20 basis. =20 Non-GAAP Information =20 In addition to disclosing results determined in accordance with=20 GAAP, Solectron also discloses non-GAAP results of operations=20 that exclude certain items. By disclosing this non-GAAP=20 information, management intends to provide investors with=20 additional information to further analyze the company's=20 performance, core results and underlying trends. Management=20 utilizes a measure of net income and earnings per share on a=20 non-GAAP basis that excludes certain charges to better assess=20 operating performance. Earnings guidance is provided only on a=20 non-GAAP basis due to the inherent difficulty in forecasting=20 such charges. =20 Consistent with industry practice, management has historically=20 applied these non-GAAP measures when discussing earnings or=20 earnings guidance and intends to continue doing so. =20 Headquartered in Milpitas, California, Solectron Corporation=20 (NYSE: SLR) -- http://www.solectron.com/-- provides a full=20 range of worldwide manufacturing and integrated supply chain=20 services to the world's premier high-tech electronics companies. =20 Solectron's offerings include new-product design and=20 introduction services, materials management, product=20 manufacturing, and product warranty and end-of-life support. =20 The company operates in more than 20 countries on five=20 continents including France, Malaysia and Brazil, among others. =20 It had sales from continuing operations of US$10.6 billion in=20 fiscal 2006. =20 * * * =20 The Troubled Company Reporter - Asia Pacific reported on Dec. 19, 2006, that Standard & Poor's Ratings Services raised=20 its corporate credit and senior unsecured ratings on Milpitas,=20 Calif -based Solectron Corp. to 'BB-' from 'B+', and its=20 subordinated debt rating to 'B' from 'B-'. The outlook is=20 revised to stable. =20 As reported in the TCR-AP reported on Nov. 28, 2006, Moody's=20 Investors Service affirmed the B1 Corporate Family Rating of=20 Solectron Corp. and other ratings affirmed included the B3=20 ratings of its US$450 million Convertible Senior Notes due 2034=20 and the US$150 million Senior Subordinated Notes due 2016=20 guaranteed by it. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D N E W Z E A L A N D =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =20 ABOUT CEILINGS: Shareholders Agree to Liquidate Business -------------------------------------------------------- On Nov. 28, 2006, the shareholders of About Ceilings Ltd=20 resolved by a special resolution to liquidate the company's=20 business and appointed Grant Bruce Reynolds as liquidator. =20 The Liquidator can be reached at: =20 Grant Bruce Reynolds Reynolds & Associates Limited=20 Insolvency Practitioners P.O. Box 259-059, Burswood East Tamaki, Auckland New Zealand Telephone:(09) 577 0162 Facsimile:(09) 576 5503 =20 =20 AUCKLAND ABALONE: Creditors' Proofs of Claim Due on Jan. 15 ----------------------------------------------------------- Auckland Abalone Ltd's liquidators Jeffrey Philip Meltzer and=20 Michael Lamacraft require the company's creditors to submit=20 proofs of claim by Jan. 15, 2007, or they will be excluded from=20 any distribution the company will make. =20 Messrs. Meltzer and Lamacraft were appointed as joint and=20 several liquidators of Auckland Abalone on Dec. 6, 2006, =20 The Joint and Several Liquidators can be reached at: =20 Jeffrey Philip Meltzer=20 Michael Lamacraft Meltzer Mason Heath Chartered Accountants P.O. Box 6302 Wellesley Street, Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 =20 =20 DEBT RELIEF: Creditors Must Lodge Claims by March 5 --------------------------------------------------- John Howard Ross Fisk and Craig Alexander Sanson were appointed=20 as joint and several liquidators of Debt Relief (New Zealand)=20 Ltd by the High Court on Dec. 4, 2006. =20 Accordingly, Liquidators Fisk and Sanson fixed March 5, 2007, as=20 the last day for, which the company's creditors are to file=20 their claims and to establish any priority claims they may have. =20 The Joint and Several Liquidators can be reached at: =20 John Howard Ross Fisk=20 Craig Alexander Sanson PricewaterhouseCoopers 113-119 The Terrace (P.O. Box 243) Wellington New Zealand Telephone:(04) 462 7000 Facsimile:(04) 462 7492 =20 =20 E BLOCK LTD: Creditors Have Until March 7 to Prove Claims --------------------------------------------------------- E Block Ltd's liquidators require the company's creditors to=20 prove their claims by March 7, 2007, or they will be excluded=20 from the company's distribution. =20 As reported by the Troubled Company Reporter - Asia Pacific, the=20 High Court of Auckland heard a liquidation petition against E=20 Block Ltd on Dec. 7, 2006. The petition was filed by The Mill=20 Liquorsave Ltd. =20 The Joint and Several Liquidators can be reached at: =20 Vivian Judith Fatupaito Richard Dale Agnew PricewaterhouseCoopers Level Eight, PricewaterhouseCoopers Tower 188 Quay Street, (Private Bag 92-162) Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 =20 =20 FIRST CITY: Appoints Official Assignee as Liquidator ---------------------------------------------------- On Nov. 30, 2006, the Official Assignee for First City Trust No.=20 2 Ltd was appointed as the company's liquidator. =20 The Liquidator can be reached at: =20 Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: http://www.insolvency.govt.nz =20 =20 HAIR JUNCTION: Court Appoints Joint Liquidators ----------------------------------------------- The High Court of Auckland appointed Henry David Levin and Barry=20 Phillip Jordan as joint and several liquidators of Hair Junction=20 Ltd on Dec. 7, 2006. =20 Accordingly, the liquidators fixed Jan. 15, 2007, as the last=20 day for which the creditors must prove their claims and to=20 establish any priority claims they may have. =20 The Joint and Several Liquidators can be reached at: =20 Henry David Levin=20 Barry Phillip Jordan PPB McCallum Petterson Level Eleven, Forsyth Barr Tower 55-65 Shortland Street, Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 =20 =20 HARDING CONSTRUCTION: Creditors Must Prove Debts by Jan. 30 ----------------------------------------------------------- The creditors of Harding Construction Ltd are required by=20 Liquidators Grant Bruce Reynolds and Gilbert Dale Chapman to=20 prove their debts by Jan. 30, 2007. =20 As reported in the Troubled Company Reporter - Asia Pacific, the=20 High Court of Auckland heard the liquidation petition against=20 the company on Nov. 9, 2006, filed by Residential Plastering=20 Ltd. =20 The Joint and Several Liquidators can be reached at: =20 Grant Bruce Reynolds=20 Gilbert Dale Chapman Reynolds & Associates Limited Insolvency Practitioners P.O. Box 259-059, Greenmount East Tamaki, Auckland New Zealand Telephone:(09) 577 0162 Facsimile:(09) 577 0243 =20 =20 HOLMESLANGTON ENTERPRISES: Shareholders Opt to Close Business ------------------------------------------------------------- The shareholders of Holmeslangton Enterprises Ltd decided by a=20 special resolution to liquidate the company's business and=20 appointed Michael Crawford as liquidator on Oct. 1, 2006. =20 The Liquidator can be reached at: =20 Michael Crawford P.O. Box 17, Hamilton New Zealand Telephone:(07) 838 4800 Facsimile:(07) 838 4810 =20 =20 MASONRY RESIDENTIAL: Creditors to File Claims by March 7 -------------------------------------------------------- The liquidators of Masonry Residential Building Ltd require the=20 company's creditors to file their claims by March 7, 2007, or=20 they will be excluded from the company's distribution. =20 According to the Troubled Company Reporter - Asia Pacific, the=20 High Court of Auckland heard the liquidation petition against=20 the company on Dec. 7, 2006, filed by the Commissioner of Inland=20 Revenue. =20 The Joint and Several Liquidators can be reached at: =20 Colin Thomas McCloy Richard Dale Agnew PricewaterhouseCoopers Level Eight, PricewaterhouseCoopers Tower 188 Quay Street, (Private Bag 92-162) Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 =20 =20 SERAFON LTD: Names Hollis and Fisk as Joint Liquidators ------------------------------------------------------- Malcolm Hollis and John Fisk were appointed as joint and several=20 liquidators of Serafon Ltd -- formerly trading as Elite Motor=20 Company Ltd -- by a voluntary resolution on Dec. 6, 2006. =20 The liquidators require the company's creditors to submit their=20 claims by Jan. 15, 2007, and to establish any priority claims=20 they may have. =20 The Joint and Several Liquidators can be reached at: =20 Malcolm Hollis=20 John Fisk PricewaterhouseCoopers 119 Armagh Street (P.O. Box 13-244) Christchurch New Zealand Telephone:(03) 374 3035=20 Facsimile:(03) 374 3001 =20 =20 TAUPIRI FARMS: Commences Liquidation Proceedings ------------------------------------------------ The shareholders of Taupiri Farms Ltd resolved by a special=20 resolution to liquidate the company's business and appointed=20 Michael Crawford as liquidator. =20 The Liquidator can be reached at: =20 Michael Crawford P.O. Box 17, Hamilton New Zealand Telephone:(07) 838 4800 Facsimile:(07) 838 4810 =20 =20 WEIGHT WATCHERS: Commences Tender Offer for 8.3 Mil. Shares ----------------------------------------------------------- Weight Watchers International, Inc., commenced a "modified Dutch=20 auction" self-tender offer for up to 8.3 million shares of its=20 common stock at a price per share not less than US$47 and not=20 greater than US$54, and which is expected to expire at 12:00=20 midnight, New York City time, on Jan. 18, 2007. =20 The company's directors and executive officers and Artal=20 Holdings Sp. z o.o., its majority shareholder, have advised that=20 they do not intend to tender any shares in the tender offer. =20 The company anticipates paying for the shares purchased through=20 the tender offer and from Artal and related fees and expenses=20 with up to approximately US$1.2 billion in new borrowings it is=20 negotiating. A portion of the borrowings is also expected to be=20 used to refinance the debt of its subsidiary,=20 WeightWatchers.com. =20 A commitment from Credit Suisse to provide additional capacity=20 under its senior credit facility to finance the purchases and=20 the refinancing was obtained by the company. =20 Credit Suisse Securities (USA) LLC will serve as dealer manager,=20 Georgeson Inc. will serve as information agent and Computershare=20 Trust Company, N.A. will serve as the depositary for the tender=20 offer. =20 Artal Purchase Agreement =20 Prior to commencing the tender offer, the company also entered=20 into an agreement to purchase shares from Artal, which owns=20 approximately 55.2% of the company's outstanding shares of=20 common stock. Under the terms of the agreement, Artal agreed to=20 sell to the company a number of shares of common stock so that=20 Artal's percentage ownership interest in the company's=20 outstanding shares of common stock after the tender offer and=20 the purchase from Artal will be substantially equal to its=20 current level. The purchase will be at the same price per share=20 as paid in the tender offer and is scheduled to occur 11=20 business days following the expiration date of the tender offer. =20 =20 Headquartered in New York, U.S.A., Weight Watchers International=20 Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/=20 -- provides of weight management services, with a presence in 30=20 countries provides of weight management services, with a=20 presence in 30 countries around the world, including New=20 Zealand. The company serves its customers through Weight=20 Watchers branded products and services, including meetings conducted by Weight Watchers International and its franchisees. =20 * * * =20 In connection with Moody's Investors Service's implementation of=20 its new Probability-of-Default and Loss-Given-Default rating=20 methodology for the U.S. consumer services sector, the rating=20 agency confirmed in Dec. 2006, its Ba1 Corporate Family Rating=20 for Weight Watchers International, Inc. =20 =20 WEIGHT WATCHERS: S&P Places Ratings on Negative CreditWatch ----------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings for=20 commercial weight-loss service provider Weight Watchers=20 International Inc., including the 'BB' corporate credit rating,=20 on CreditWatch with negative implications, indicating that the=20 ratings could be lowered or affirmed after the completion of=20 Standard & Poor's review.=20 =20 New York-based WWI had about US$817.0 million of total=20 consolidated debt outstanding as of Sept. 30, 2006. =20 At the same time, the ratings on online weight-loss service=20 provider WeightWatchers.com, including the 'B+' corporate credit=20 rating, were affirmed.=20 =20 Standard & Poor's expects the ratings on WW.com would be=20 withdrawn upon the completion of the planned refinancing of its=20 existing senior secured debt. =20 The CreditWatch listing reflects WWI's increasingly aggressive=20 financial policy comes after the company's report that it plans=20 to launch a "modified Dutch auction" self-tender offer for up to=20 8.3 million shares of its common stock at a price range between=20 US$47.00 and US$54.00 per share. Artal Luxembourg S.A., WWI's=20 majority shareholder, plans to retain its pro rata share of=20 common stock outstanding after the completion of the Dutch=20 auction repurchase. =20 WWI also reported its intention to repay the outstanding balance=20 of WW.com's senior secured credit facilities, which consist of a=20 US$170 million first-lien term loan and a US$45 million second- lien term loan. WWI intends to fund the share purchases and the=20 planned refinancing of its WW.com facilities through an=20 additional US$1.2 billion in new senior secured bank debt, and=20 has obtained a commitment from Credit Suisse to provide the=20 additional borrowing capacity under its credit facility that is=20 required to complete the proposed transactions. =20 =20 Although WWI does not provide a guarantee for the WW.com credit=20 facilities, Standard & Poor's factors some implicit support for=20 WW.com in its ratings, given the strategic importance and=20 affiliation of WW.com as an additional marketing venue for=20 Weight Watchers. =20 "We expect credit protection measures to weaken as a result of=20 Weight Watchers' more aggressive financial policy," said=20 Standard & Poor's credit analyst Mark Salierno.=20 =20 "Specifically, we expect lease-adjusted consolidated total debt=20 to EBITDA to be in the 4.5x area, compared with adjusted debt=20 leverage of about 2.0x for the 12 months ended Sept. 30, 2006. =20 We will meet with management and review the company's financial=20 policy, pro forma capital structure, planned refinancing of=20 WeightWatchers.com bank debt, and outlook for fiscal 2007 before=20 resolving the CreditWatch listing." =20 Headquartered in New York, U.S.A., Weight Watchers International=20 Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/=20 -- provides of weight management services, with a presence in 30=20 countries provides of weight management services, with a=20 presence in 30 countries around the world, including New=20 Zealand. The company serves its customers through Weight=20 Watchers branded products and services, including meetings=20 conducted by Weight Watchers International and its franchisees. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D P H I L I P P I N E S =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =20 PRC LLC: S&P Holds Rating on US$67-Mil. 2nd Lien Term Loan at B- ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating=20 on the proposed second-lien term loan due 2014 of PRC LLC, after=20 the report that the company will increase the amount of the this=20 loan by US$12 million, and increase the amount of first-lien=20 debt by US$10 million. =20 "We revised the recovery rating because of the larger amount of=20 first-lien debt in the capital structure," said Standard &=20 Poor's credit analyst Andy Liu. =20 Standard & Poor's revised the recovery rating on the second-lien=20 loan to '5', which, along with the 'B-' bank loan rating, two=20 notches below the 'B+' corporate credit rating, indicates the=20 expectation of negligible recovery of principal in the event of=20 a payment default. The recovery rating was revised from a '4',=20 which, along with the bank loan rating, had indicated the=20 expectation of marginal recovery of principal in the event of a=20 payment default. =20 The first-lien credit facilities are rated 'BB-', one notch=20 higher than the 'B+' corporate credit rating on the company,=20 with a recovery rating of '1', indicating high expectation of=20 full recovery of principal in the event of a payment default. =20 =20 Pro forma for the increase, the first-lien credit facilities=20 will consist of a US$20 million revolving credit facility due=20 2012, a US$25 million delayed-draw term loan credit facility due=20 2013, and a US$115 million term loan due 2013. =20 Ratings List: =20 * Recovery Rating Revised, Bank Loan Rating Affirmed =20 * PRC LLC =20 -- US$67 Million Second-Lien Term Loan revised to B-, Recovery Rating: 5, from B-, Recovery Rating: 4 =20 Ratings Affirmed: =20 * PRC LLC =20 -- Senior Secured US$160 Million First-Lien Bank Loans Local Currency at BB- =20 =20 -- Recovery Rating: 1 =20 Plantation, Fla.-based PRC is a business process outsourcing or=20 BPO provider with operations in the U.S., the Philippines,=20 India, the Dominican Republic, and Ireland. The company=20 provides dedicated-agent communication services focusing on=20 business-to-consumer and business-to-business transactions. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D S I N G A P O R E =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =20 ARMSTRONG INDUSTRIAL: Subsidiary Registers Company in Vietnam ------------------------------------------------------------- Armstrong Industrial Corporation Ltd disclosed on Dec. 21, 2006,=20 that its subsidiary, Armstrong Weston Holdings Pte. Ltd, has=20 registered a wholly owned subsidiary -- Armstrong Weston Vietnam=20 Co., Ltd. -- in Vietnam. =20 Armstrong Weston Vietnam was established with the registered=20 capital of US$2 million and a charter capital of US$1 million.=20 The principal activity of Armstrong Weston Vietnam is the=20 production of noise and vibration reduction components,=20 silkscreen nameplates, labels and stickers for export sales and=20 domestic sales in Vietnam. =20 The transaction was funded through internal resources and is not=20 expected to have any material impact on the consolidated net=20 tangible assets and earnings per share of the Armstrong Group=20 for the current financial year ending Dec. 31, 2006.=20 =20 About Armstrong Industrial =20 Armstrong Industrial Corp. Ltd -- http://www.armstrong.com.sg-- =20 manufactures and sells precision die-cut foam and rubber moulded components for a range of applications, including insulating, dampening, cushioning, and sealing. The company also provides architectural and engineering activities and related technical consultancy. The company has manufacturing presence in Singapore, Malaysia, Thailand, China, Indonesia and Vietnam. =20 * * *=20 =20 Moody's Investors Service gave Armstrong Industrial's senior=20 unsecured debt a Ba2 rating effective on December 16, 1991, and=20 its subordinated debt a B1 rating effective on October 23, 1986. =20 =20 CHINA AVIATION: Closes Physical Fuel Jet Tender -----------------------------------------------=20 China Aviation Oil (Singapore) Corporation Ltd has closed its=20 latest physical Jet Fuel tender for delivery in February 2007. =20 In the latest tender, China Aviation received responses from 17=20 physical Jet-Fuel suppliers. For the tender, a total volume of=20 285,000 metric tonnes of A-1 Grade Jet Fuel was awarded. The=20 cover ratio for the awarded cargos was approximately 5.3 times. =20 The tender was awarded to the most competitive suppliers. =20 Moreover, the China Aviation expresses its appreciation to all=20 suppliers for their continued support of its Jet Fuel=20 procurement business. =20 About China Aviation Oil (Singapore) =20 Incorporated in 1983, China Aviation Oil (Singapore) Corp. Limited -- http://www.caosco.com/-- deals primarily in jet fuel procurement, although it is also active in international oil trading and oil-related investment. The firm commands a near- 100% market share of the procurement of imported jet fuel for China's civil aviation industry, and has expanded its market to include ASEAN countries, the Far East and the United States. =20 The company is undergoing restructuring. Its Restructuring Plan was approved by shareholders on March 3, 2006, and sanctioned by the High Court of Singapore on March 21, 2006. It became effective on March 28, 2006. =20 The company, according to a TCR-AP report on Nov. 10, 2006, is=20 currently working with an insolvent balance sheet, with a=20 US$390.07 million shareholder's deficit on total assets of=20 US$211.96 million. =20 =20 PETROLEO BRASILEIRO: Mulls Gascac Construction Without Sinopec -------------------------------------------------------------- Almir Barbassa, Brazil's Petroleo Brasileiro SA's chief=20 financial officer of, told Business News Americas that the firm=20 could manage construction of the 940-kilometer Cacimbas-Catu=20 Gascac stretch of the Gasene pipeline alone. =20 As reported in the Troubled Company Reporter-Latin America on=20 April 28, 2006, Petroleo Brasileiro and the Sinopec Group signed=20 a US$239-million deal to build a pipeline in the northeast part=20 of Brazil. The gas line reportedly would be able to carry more=20 than 700 million cubic feet of gas per day to Brazil's most=20 impoverished region, reducing the country's dependence on=20 Bolivia. The project is expected to be completed in 15 months. =20 The project was Brazil's response to Bolivia's plan to hike=20 price to its biggest natural gas importer of 30 million cubic=20 meters per day. According to Petroleo Brasileiro, the agreement=20 formed part of the first phase of the Southeast-Northeast Gas=20 Pipeline Interconnection, or Gasene, project. The construction=20 would be done in three phases: =20 -- the first 300-kilometer (186-mile) stretch will connect the town of Cabiunas in the north of Rio de Janeiro state with Vitoria, capital of the neighboring state of Espiritu Santo; =20 -- second will be a 125-kilometer (78-mile) pipeline, already under construction, between Vitoria and Cacimbas, and =20 -- third will be 765 kilometers (475 miles) between Cacimbas and Catu in the heavily populated state of Bahia. =20 BNamericas relates that Petroleo Brasileiro had expected Sinopec=20 to manage project construction through an engineering,=20 procurement and construction contract. Negotiations, however,=20 have not advanced. =20 Mr. Barbassa told BNamericas, "A decision on whether our own=20 engineering department will manage Gascac construction will be=20 taken shortly."=20 =20 BNamericas underscores that negotiations with Sinopec have been=20 ongoing for over six months. If Sinopec is not hired through an=20 EPC contract, Petroleo Brasileiro would supervise three firms=20 already picked to construct Gascac's three parts. =20 Mr. Barbassa told BNamericas, "The project has been licensed,=20 the engineering companies to build the line have been picked,=20 the tubes have been ordered." =20 Petroleo Brasileiro plans to begin project construction early in=20 2007, BNamericas says, citing Mr. Barbassa. =20 Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in the country. =20 Petrobras has operations in China, India, Japan and Singapore. =20 * * * =20 Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's and its foreign currency long-term debt is rated BB- by Fitch. =20 * * * =20 Fitch assigned these ratings on Petroleo Brasileiro's senior unsecured notes: =20 Maturity Date Amount Rate Ratings ------------- ------ ---- ------- =20 April 1, 2008 US$400,000,000 9% BB- July 2, 2013 US$750,000,000 9.125% BB- Sept. 15, 2014 US$650,000,000 7.75% BB- Dec. 10, 2018 US$750,000,000 8.375% BB- =20 =20 PETROLEO BRASILEIRO: Share Buyback Boosting Reserves Management --------------------------------------------------------------- Almir Barbassa -- the chief financial officer of Petroleo=20 Brasileiro SA, the state-run oil firm of Brazil, told Business=20 News Americas that the company's decision to buy back shares=20 will help improve the management of US$10 billion in cash=20 reserves. =20 As reported in the Troubled Company Reporter-Latin America on=20 Dec. 20, 2006, Petroleo Brasileiro would buy back 91.5 million=20 non-voting shares over the coming year to adjust its cash flow=20 and capital structure. Petroleo Brasileiro has 1.85 billion=20 non-voting shares. Small investors in Brazil and abroad are=20 holding as depositary receipts about 14.2% of those shares.=20 About 36.2% of those shares are traded on the New York Stock=20 Exchange as ADRS. The federal government owns 15.5% of=20 preferred shares but exercises its control through a 67% voting- right stake. Preferred shares traded in Brazil are valued at=20 BRL47, while ADRs are valued at US$88. =20 The shares will likely be written off once bought, BNamericas=20 says, citing Mr. Barbassa. The transaction is designed to=20 improve the capital structure of Petroleo Brasileiro. =20 Mr. Barbassa told BNamericas, "The idea is to seek ways to=20 improve the return of the reserves. It's a good investment=20 since the non-voting right shares are valued under what we=20 consider their fair value." =20 According to BNamericas, Petroleo Brasileiro has hired 10 banks=20 to intermediate the transaction. =20 BNamericas notes that Petroleo Brasileiro generated BRL136=20 billion in net revenues in 2005 and total indebtedness stood at=20 BRL44 billion in September 2006. Of that amount, BRL32.3=20 billion is maturing in 12 months and the rest is short term. In=20 September 2005, the company's total debt was BRL47.4 billion. =20 The company in July concluded a US$1-billion debt buyback=20 operation. Cash reserves were BRL24.5 billion in September=20 2006. =20 However, Petroleo Brasileiro has been parsimonious about tapping=20 financial markets despite its access to bank financing in Brazil=20 and abroad, BNamericas notes. =20 Mr. Barbassa told BNamericas that main operations of Petroleo=20 Brasileiro this year were aimed at sustaining a presence in=20 capital markets rather than raising cash. The company plans to=20 raise BRLUS$400 million to fund its US$87-billion, 2007-11=20 investment program. This puts the firm in quite a comfortable=20 situation since its indebtedness level is equivalent to 17% of=20 its net worth. =20 Petroleo Brasileiro, however, now plans to forcus more on=20 capital markets, the report says. =20 Mr. Barbassa commented to BNamericas, "The 17% is low and our=20 ceiling is 25-35%."=20 =20 Though Petroleo Brasileiro doesn't have to raise cash on=20 financial markets for its normal operations, it will do so for=20 specific projects where funding can be performed at a lower=20 cost, BNamericas says, citing Mr. Barbassa. =20 BNamericas underscores that at least one specific operation is=20 being studied for next year, which will be used to fund=20 investments in real estate. =20 Mr. Barbassa told BNamericas, "We are building our [regional]=20 headquarters in Macae [Rio de Janeiro] and Vitoria [in Espirito=20 Santo] and are building a dry dock in southern Brazil."=20 =20 BNamericas states that the idea is for firms conducting the=20 projects to sell receivables from the 10 to 12-year lease that=20 Petroleo Brasileiro will pay for the use of the buildings. =20 "At the end of the lease period, Petrobras (Petroleo Brasileiro)=20 will have the option to buy the buildings," Mr. Barbassa told=20 BNamericas. =20 * * * =20 Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp=20 -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. =20 Petrobras has operations in China, India, Japan, and Singapore. =20 Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. =20 Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: =20 Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ =20 Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. =20 =20 PETROLEO BRASILEIRO: Invests US$724MM to Boost Onshore Oil Prod. ---------------------------------------------------------------- Petroleo Brasileiro aks Petrobras' Executive Board approved, on=20 Dec. 21, 2006, US$724 million in total investments for the Canto=20 do Amaro field, of which: =20 =20 -- US$410 million goes to Rio Grande do Norte, and =20 -- US$314 million for the Carmopolis field in Sergipe. =20 The investments aim to increase daily production from the=20 current 48,000 barrels per day to 70,000 bpd. These investments=20 are part of the Program for the Revitalization of Fields with=20 High Degrees of Explotation, developed to achieve production=20 sustainability at mature fields where high degrees of return are=20 obtained at minimum risks. =20 The Carmopolis field was discovered in 1963, and represents=20 Petrobras' biggest onshore accumulation, while the Canto do=20 Amaro field was found in 1985. Production peaked at both sites=20 in 1989, when Canto do Amaro produced 40,000 bpd and Carmopolis=20 27,000 bpd. The gravity of the oil produced at Carmopolis is 21=20 to 23 degrees API, while at Canto do Amaro it is 28 to 40=20 degrees API. =20 The investments involve increasing the water injection levels=20 and boosting, centralizing, and rationalizing the injection,=20 production and treatment facilities, with significant scale=20 gains, resulting in higher production and reserves, since higher=20 volumes of the oil contained in the reservoir will be lifted. A=20 total of 367 production and injection, and another 1,387=20 complementary operation (conversion or recompletion) wells will=20 be drilled. The water injection systems will be enhanced by=20 500,000 barrels per day. The national content of the=20 investments reaches 90%. =20 * * * =20 Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/-- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. =20 Petrobras has operations in China, India, Japan, and Singapore. =20 Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. =20 Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: =20 Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ =20 Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. =20 =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D T H A I L A N D =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =20 DAIMLERCHRYSLER: Praises ITC's Ruling to Revoke Steel Duties ------------------------------------------------------------ The six largest automobile companies -- DaimlerChrysler AG, Ford=20 Motor Corp., General Motors Corp., Honda, Nissan, and Toyota=20 Motor North America -- with manufacturing facilities in the=20 United States has applauded a decision by the U.S. International=20 Trade Commission to revoke anti-dumping and countervailing duty=20 orders on "corrosion resistant steel" from Australia, Canada,=20 France, and Japan. The ITC left orders in place on imports from=20 Germany and Korea.=20 =20 "We are pleased that the ITC revoked most of the duties," said=20 Stephen E. Biegun, Vice President, International Governmental=20 Affairs, Ford Motor Company.=20 =20 "All of these duties are outdated and hurt American=20 manufacturing competitiveness and U.S. jobs while needlessly=20 helping a steel industry that is now profitable and healthy." =20 "[The] decision is a major step forward in restoring needed=20 competition to the U.S. steel market," Toyota Motor North=20 America group vice president Josephine Cooper said.=20 =20 "The ITC's decision supports both a strong steel industry and a=20 strong auto industry, and we look forward to working with our=20 colleagues in the steel industry to continue to strengthen=20 manufacturing in the United States." =20 The duties on corrosion resistant steel have been in place since=20 1993 on imports from six countries. As a result of [the] vote,=20 duties on imports from Australia, Canada, France, and Japan are=20 revoked, while duties on imports from Germany and Korea will be=20 retained until the next review in 2011.=20 =20 The six auto manufacturers -- DaimlerChrysler, Ford, General=20 Motors, Honda, Nissan and Toyota -- joined together for the=20 first time as a group in a trade case to urge revocation of=20 duties on corrosion-resistant steel because of their serious=20 concern regarding access to, and availability of, competitively- priced steel. During the hearing, the companies demonstrated=20 that the U.S. steel industry is now profitable, has healthy=20 long-term prospects, and no longer needs government protection. =20 About DaimlerChrysler =20 Headquartered in Stuttgart, Germany, DaimlerChrysler AG --=20 http://www.daimlerchrysler.com/-- engages in the development,=20 manufacture, distribution, and sale of various automotive=20 products, primarily passenger cars, light trucks, and commercial=20 vehicles worldwide. It primarily operates in four segments:=20 Mercedes Car Group, Chrysler Group, Commercial Vehicles, and=20 Financial Services. =20 The Chrysler Group segment offers cars and minivans, pick-up=20 trucks, sport utility vehicles, and vans under the Chrysler,=20 Jeep, and Dodge brand names. It also sells parts and=20 accessories under the MOPAR brand. =20 DaimlerChrysler has operations in Australia, China, Indonesia,=20 Japan, Korea, Malaysia and Thailand. =20 DaimlerChrysler lowered its operating profit forecast for full- year 2006 to be in the magnitude of EUR5 billion (US$6.4=20 billion) based on an expected full-year operating loss of=20 approximately EUR1 billion (US$1.2 billion) for its Chrysler=20 Group. =20 The Chrysler Group is facing a difficult market environment in=20 the United States with excess inventory, non-competitive legacy=20 costs for employees and retirees, continuing high fuel prices=20 and a stronger shift in demand toward smaller vehicles. At the=20 same time, key competitors have further increased margin and=20 volume pressures - particularly on light trucks - by making=20 significant price concessions. In addition, increased interest=20 rates caused higher sales & marketing expenses. Chrysler Group=20 will take additional production cuts in the third and fourth=20 quarters to reduce dealer inventories and make way for its=20 current product offensive. =20 =20 FEDERAL-MOGUL: U.S. Judge Denies Approving Plan B Settlement ------------------------------------------------------------ The Honorable Judith K. Fitzgerald of the United States=20 Bankruptcy Court for the District of Delaware clarified that she=20 did not approve the Plan B Settlement between Federal-Mogul=20 Corporation, its debtor affiliates, the Asbestos Claimants=20 Committee and the Future Claimants Representative, and that she=20 has no idea that an order approving the Settlement has been=20 issued and docketed. Judge Fitzgerald said it was a mistake. =20 James E. O'Neill, Esq., at Pachulski, Stang, Ziehl, Young, Jones =20 & Weintraub LLP, in Wilmington, Delaware, advised Judge=20 Fitzgerald that the Clerk of Court has taken out the Order from=20 the Court's docket. =20 Judge Fitzgerald said the Clerk of Court "should not have=20 destroyed the old order that wasn't proper. She should have=20 just entered an order that vacates it as having been incorrectly=20 entered and then re-docketed the new one so that we all have=20 some recollection of what took place." =20 "But I don't know how I can undo this now because I wasn't made=20 aware of it," Judge Fitzgerald added. =20 The Court will consider approval of the Plan B Settlement at the=20 hearing to consider confirmation of an amended Plan of=20 Reorganization to be filed by the Debtors. James F. Conlan,=20 Esq., at Sidley Austin, LLP, in Chicago, Illinois, the Debtors'=20 lead bankruptcy counsel, has advised the Court that a revised=20 Plan will be delivered. =20 Headquartered in Southfield, Michigan, Federal-Mogul Corporation=20 -- http://www.federal-mogul.com/-- is one of the world's=20 largest automotive parts companies with worldwide revenue of=20 some US$6 billion. In the Asian Pacific region, the company has=20 operations in Malaysia, Australia, China, India, Japan, Korea=20 and Thailand. =20 =20 The company filed for chapter 11 protection on Oct. 1, 2001=20 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James=20 F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown=20 & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,=20 Young, Jones & Weintraub, P.C., represent the Debtors in their=20 restructuring efforts. When the Debtors filed for protection=20 from their creditors, they listed US$10.15 billion in assets and=20 US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.=20 affiliate, Turner & Newall, is based at Dudley Hill, Bradford.=20 Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and=20 Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.=20 Sutty, Esq., at The Bayard Firm represent the Official Committee=20 of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue=20 No. 118; Bankruptcy Creditors' Service, Inc.,=20 http://bankrupt.com/newsstand/or 215/945-7000) =20 =20 FEDERAL-MOGUL: Trustee Names Trizec to Asbestos Claimants Panel --------------------------------------------------------------- Kelly Beaudin Stapleton, United States Trustee for Region 3,=20 appoints Trizec Properties, Inc., to serve on the Official=20 Committee of Asbestos Property Damage Claimants in Federal-Mogul=20 Corporation, its debtor affiliates' Chapter 11 cases. =20 According to Andrew R. Vara, Assistant United States Trustee,=20 two members voluntarily resigned from the Asbestos PD Committee: =20 (a) The Hill School, effective October 30, 2006; and =20 (b) Richard Blythe, effective December 6, 2006. =20 Moxie Real Estate is also out of the Asbestos PD Committee=20 because it is no longer eligible to serve on the committee. =20 Moxie's asbestos property damage claim was expunged, and it is=20 no longer a creditor by virtue of a Court order dated June 13,=20 2006, which sustained the Debtors' objection to asbestos=20 property damage claims that failed to comply with the Court's=20 Bar Date Order. =20 The Asbestos PD Committee is now composed of: =20 (1) Anderson Memorial Hospital c/o Speights & Runyan Attn: Daniel A. Speights P. O. Box 685 200 Jackson Avenue, East Hampton, South Carolina 29924 Tel: 803-943-4444 Fax: 803-943-4599 =20 (2) Jacksonville College c/o Dies & Hile, LLP Attn: Martin W. Dies 1009 West Green Avenue Orange, Texas 77630 Tel: 409-883-4394 Fax: 409-883-4814 =20 (3) Trizec Properties, Inc. c/o Philip J. Goodman 280 N. Old Woodward, Ste 407=20 Birmingham, Michigan 48009 Tel: 248-647-9300 Fax: 248-647-8481 =20 Headquartered in Southfield, Michigan, Federal-Mogul Corporation=20 -- http://www.federal-mogul.com/-- is one of the world's=20 largest automotive parts companies with worldwide revenue of=20 some US$6 billion. In the Asian Pacific region, the company has=20 operations in Malaysia, Australia, China, India, Japan, Korea=20 and Thailand. =20 =20 The company filed for chapter 11 protection on Oct. 1, 2001=20 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James=20 F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown=20 & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,=20 Young, Jones & Weintraub, P.C., represent the Debtors in their=20 restructuring efforts. When the Debtors filed for protection=20 from their creditors, they listed US$10.15 billion in assets and=20 US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.=20 affiliate, Turner & Newall, is based at Dudley Hill, Bradford.=20 Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and=20 Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.=20 Sutty, Esq., at The Bayard Firm represent the Official Committee=20 of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue=20 No. 118; Bankruptcy Creditors' Service, Inc.,=20 http://bankrupt.com/newsstand/or 215/945-7000) =20 =20 PHELPS DODGE: Appoints David H. Elliott VP of Cobalt Marketing -------------------------------------------------------------- David H. Elliott has been appointed vice president-cobalt=20 marketing for Phelps Dodge Sales Co., a division of Phelps Dodge=20 Corp.=20 =20 In this newly created position, Mr. Elliott will finalize and=20 implement cobalt-marketing plans for Phelps Dodge. The company=20 is expected to become a large producer of the metal in late 2008=20 when the Tenke Fungurume copper/cobalt project in the Democratic=20 Republic of the Congo begins operation. =20 For the past two years, Elliott was director-business=20 development for nickel at Falconbridge Ltd. in Canada. Before=20 that, he served Falconbridge in Brussels as director-cobalt=20 marketing and market development. =20 Mr. Elliott has worked in a number of marketing positions as=20 well as in process and product engineering roles for=20 Falconbridge and for Canadian steel producer Dofasco. He holds=20 a bachelor of science degree in metallurgy from McMasters=20 University in Hamilton, Ontario. =20 Phelps Dodge -- http://www.phelpsdodge.com/-- is among the =20 world's largest producers of molybdenum, molybdenum-based=20 chemicals, and manufacturer of wire and cable products. =20 Phelps Dodge has operations in Thailand, China, the Philippines=20 and Japan, among others. =20 * * * =20 On June 26, 2006, Moody's Investors Services has placed Phelps=20 Dodge's Ba1 junior preferred shelf rating in CreditWatch for a=20 possible downgrade. =20 =20 * Upcoming Meetings, Conferences and Seminars --------------------------------------------- January 11, 2007 Beard Audio Conferences Diagnosing Problems in Troubled Companies: Evaluating Turnaround Potential and Establishing the Basis for Actionable, Achievable Solutions Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 January 11, 2007 Turnaround Management Association Lender's Panel University Club, Jacksonville, FL Contact: http://www.turnaround.org/ =20 January 12, 2007 Turnaround Management Association Annual Lender's Panel Breakfast Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ =20 January 17, 2007 Turnaround Management Association South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ =20 January 17-19, 2007 Turnaround Management Association Distressed Investing Conference Wynn, Las Vegas, NV Contact: http://www.turnaround.org/ =20 January 30-31, 2007 Euromoney Institutional Investor Korea Securitisation and Structured Credit Summit JW Marriott Hotel, Seoul, South Korea Web site: http://www.euromoneyplc.com/ =20 January 31-February 1, 2007 Euromoney Institutional Investor Asia M&A Forum Island Shangri-La, Hong Kong Web site: http://www.euromoneyplc.com/=20 =20 February 2007 American Bankruptcy Institute International Insolvency Symposium San Juan, Puerto Rico Telephone: 1-703-739-0800 Web site: http://www.abiworld.org =20 February 8-9, 2007 Euromoney Leveraged Finance Asia JW Marriott Hong Kong Web site: http://www.euromoneyplc.com/ =20 February 8-9, 2007 Euromoney Conferences 2nd Philippines Investment Conference Cebu Convention Center, Cebu, Philippines Web site: http://www.euromoneyplc.com/ =20 February 8-11, 2007 Turnaround Management Association Certified Turnaround Professional (CTP) Training NY/NJ Contact: http://www.turnaround.org/ =20 February 22, 2007 Turnaround Management Association TMA PowerPlay - Atlanta Thrashers Philips Arena, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ =20 February 21-22, 2007 Euromoney Euromoney Pakistan Conference Perceptions & Realities Marriott Hotel, Islamabad, Pakistan Web site: http://www.euromoneyplc.com/ =20 February 22, 2007 Euromoney 2nd Annual Euromoney Japan Forex Forum Mandarin Oriental, Tokyo, Japan Web site: http://www.euromoneyplc.com/ =20 February 25-26, 2007 Norton Institutes Norton Bankruptcy Litigation Institute Marriott Park City, UT Contact: http://www2.nortoninstitutes.org/ =20 March 21-22, 2007 Euromoney 2nd Annual Vietnam Investment Forum Melia, Hanoi, Vietnam Web site: http://www.euromoneyplc.com/ =20 March 21-22, 2007 Euromoney Euromoney Indian Financial Market Congress Grand Hyatt, Mumbai, India Web site: http://www.euromoneyplc.com/ =20 March 22-23, 2007 Euromoney Institutional Investor Euromoney Indonesian Financial Markets Congress Bali, Indonesia Web site: http://www.euromoneyplc.com/ =20 March 27-31, 2007 Turnaround Management Association - Australia 2007 TMA Spring Conference Four Seasons Las Colinas, Dallas, TX, USA e-mail: livaldi@turnaround.org =20 April 11-15, 2007 American Bankruptcy Institute ABI Annual Spring Meeting J.W. Marriott, Washington, DC, USA Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ =20 October 16-19, 2007 Turnaround Management Association - Australia TMA 2007 Annual Convention Boston Marriott Copley Place, Boston, MA, USA e-mail: livaldi@turnaround.org =20 March 25-29, 2008 Turnaround Management Association - Australia TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org =20 October 28-31, 2008 Turnaround Management Association - Australia TMA 2008 Annual Convention New Orleans Marriott, New Orleans, LA, USA e-mail: livaldi@turnaround.org =20 TBA 2008 INSOL Annual Pan Pacific Rim Conference Shanghai, China Web site: http://www.insol.org/ =20 June 21-24, 2009 INSOL 8th International World Congress TBA Web site: http://www.insol.org/ =20 October 5-9, 2009 Turnaround Management Association - Australia TMA 2009 Annual Convention JW Marriott Desert Ridge, Phoenix, AZ, USA e-mail: livaldi@turnaround.org =20 October 4-8, 2010 Turnaround Management Association - Australia TMA 2010 Annual Convention JW Marriot Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org =20 Beard Audio Conferences Coming Changes in Small Business Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Audio Conferences CD Beard Audio Conferences Distressed Real Estate under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Changes to Cross-Border Insolvencies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Healthcare Bankruptcy Reforms Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Calpine's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Dana's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Reverse Mergers-the New IPO? Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences High-Yield Opportunities in Distressed Investing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 Beard Audio Conferences Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ =20 =20 =20 =20 *********=20 =20 Tuesday's edition of the TCR-AP delivers a list of indicative=20 prices for bond issues that reportedly trade well below par. =20 Prices are obtained by TCR-AP editors from a variety of outside=20 sources during the prior week we think are reliable. Those=20 sources may not, however, be complete or accurate. The Tuesday=20 Bond Pricing table is compiled on the Friday prior to=20 publication. Prices reported are not intended to reflect actual=20 trades. Prices for actual trades are probably different. Our=20 objective is to share information, not make markets in publicly=20 traded securities. Nothing in the TCR-AP constitutes an offer=20 or solicitation to buy or sell any security of any kind. It is=20 likely that some entity affiliated with a TCR-AP editor holds=20 some position in the issuers' public debt and equity securities=20 about which we report. =20 A list of Meetings, Conferences and Seminars appears in each=20 Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to=20 conferences@bankrupt.com =20 Friday's edition of the TCR-AP features a list of companies with=20 insolvent balance sheets obtained by our editors based on the=20 latest balance sheets publicly available a day prior to=20 publication. At first glance, this list may look like the=20 definitive compilation of stocks that are ideal to sell short. =20 Don't be fooled. Assets, for example, reported at historical=20 cost net of depreciation may understate the true value of a=20 firm's assets. A company may establish reserves on its balance=20 sheet for liabilities that may never materialize. The prices at=20 which equity securities trade in public market are determined by=20 more than a balance sheet solvency test. =20 =20 *********=20 =20 =20 S U B S C R I P T I O N I N F O R M A T I O N=20 =20 Troubled Company Reporter - Asia Pacific is a daily newsletter=20 co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Nolie Christy Alaba, Rousel Elaine Tumanda,=20 Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara=20 Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman,=20 Editors. =20 Copyright 2006. All rights reserved. ISSN: 1520-9482. =20 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. =20 TCR-AP subscription rate is $575 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 $25 each. For subscription information, contact Christopher Beard at 240/629-3300. =20 *** End of Transmission ***