/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070706.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, July 6, 2007, Vol. 10, No. 133 Headlines A U S T R A L I A BACKHOUSIA PTY: Liquidator to Give Wind-Up Report on July 27 CALSONIC AUSTRALIA: Enters Wind-Up Proceedings CARIB PTY: Sets Members' Final Meeting for July 26 CONSTELLATION BRANDS: Hires Rob Sands as Chief Executive Officer ENCYSIVE PHARMACEUTICALS: Cuts 70% of US Work Force ENCYSIVE PHARMACEUTICALS: George Cole Named as President and CEO FESTON PTY: Members to Receive Wind-Up Report on July 20 JD & S FINANCIAL: Placed Under Voluntary Wind-Up KAGARA ZINC: Revises Profit Forecast to AU$130 Million MAHONIA PTY: Members to Meet on July 27 PETERS HOLDINGS: Members' Final Meeting Set for July 27 REALOGY CORP: Change of Control Offer for Notes Ends on July 3 REGENCY HOTEL: Liquidator to Present Wind-Up Report on Aug. 3 SUN CA: Members and Creditors to Meet on July 31 TULSA PTY: To Declare Dividend for Priority Creditors on July 20 C H I N A & H O N G K O N G CHINA MINSHENG: Expects First Half Earnings to Rise Up To 60% CHINA NONFERROUS MFCL: Creditors' Proofs of Debt Due by July 28 CHINA NONFERROUS MSCL: Proofs of Debt Due by July 28 CITIC BANK: To Provide CNY10BB Credit Line to China Huadian CONFREIGHT INTERNATIONAL: Placed Under Voluntary Liquidation EAGLE SMART: Taps Andrew C.C. Ma & Felix K.L. Lee as Liquidators INTELLIGENT SHOE: Members and Creditors to Meet on August 3 MICHELE PASCUCCI: Appoints Ma & Lee as Liquidators OASIS CONSULTANTS: Members to Receive Wind-Up Report on July 30 UNION LASER SURGERY: Names Lee King Yue as Liquidator WAKOMICRO TECHNOLOGIES: Sets Final Meeting for July 30 WELL-MADE TOY: Names Andrew Ma & Felix Lee as Liquidators WISE POOL: Shareholders Resolve to Shut Down Business * PwC Adds 55 New Partners in China * China's Credit Quality Favorable But Risks Intensify, Says S&P I N D I A AES CORP: Names Catherine Freeman as Deputy Chief Fin'l Officer BALLARPUR INDUSTRIES: To Explore Ways to Boost Growth Prospects BANK OF BARODA: Completes Sale of 0.90% NSEIL Stake BHARTI AIRTEL: Temasek to Buy 4.99% Stake, Report Says BHARTI AIRTEL: Inks US$900MM Expansion Deal With Nokia Siemens CANARA BANK: US$250-Million Notes Due 2021 Gets S&P's BB Rating GENERAL MOTORS: June 2007 Sales Drop 24% IMAX CORP: Obtains Nasdaq Nod for Continued Common Stock Listing I N D O N E S I A ALCATEL-LUCENT: Deutsche Bank Maintains Hold Rating on Firm BANK INTERNATIONAL: Increases Credits for Small Businesses CANWEST MEDIAWORKS: Debt Reduction Cues Moody's to Hold Ratings HILTON HOTELS: Inks US$26-Bil. Merger Deal with Blackstone Group HILTON HOTELS: Inks 1st Conrad Management Pact in South America INDOFOOD: Sales Up 12% in First Half Noodle Sales MCDERMOTT INT'L: Moody's Lifts Corporate Family Rating to Ba3 PERTAMINA: Imports 11.6-Million Barrels of Fuel Products in July PERUSAHAAN LISTRIK: Launches Tender for Muara Bekasi-Muara J A P A N CHUO MITSUI: Mitsui Trust to Sell Entire Stake to Affiliate TEKKEN CORP: R&I Affirms BB+ Rating with a Stable Outlook SENSATA TECHNOLOGIES: Buying Airpax Holdings for US$276 Million SENSATA TECHNOLOGIES: S&P Revises Outlook After Airpax Purchase SANYO ELECTRIC: To Increase Lithium-Ion Cells Production by 17% K O R E A ACTUANT CORP: Acquires BH Electronics for US$30 Million ACTUANT CORP: Reports US$29.6 Mil. Net Income in Third Quarter ACTUANT CORP: Promotes Mark Goldstein as Chief Operating Officer M A L A Y S I A SELOGA HOLDINGS: Securities Commission Rejects Reform Proposals SUREMAX GROUP: Lat Infrabina Claims MYR44 Mil. Judgment Payment SUREMAX GROUP: RHB Bank Quits Reform Adviser Post TAP RESOURCES: Securities Commission Junks Restructuring Plan SOLUTIA INC: Wants Monsanto and Retiree Settlement Pacts Okayed SOLUTIA INC: Bank of New York Balks at Amended Plan VANGUARD CAR: S&P Retains Positive Watch on B+ Credit Rating N E W Z E A L A N D AIHP LTD: Fixes Sept. 11 as Last Day to File Claims BRIDGECORP LIMITED: Placed in Receivership CENTRAL DISTRICTS: Appoints Brown and Rodewald as Liquidators FLETCHER BUILDING: Completes Acquisition of Formica Corp. HIVE NET: Shareholders Agree on Liquidation K & D CAMPBELL: Shareholders Resolve to Close Business KATO LOGGING: Court to Hear Wind-Up Petition on July 9 NOAH'S ARK: Taps Brown and Rodewald as Liquidators PIBON HOLDINGS: Commences Liquidation Proceedings PRIESTLEY HEATING: Court to Hear Wind-Up Petition on July 9 PROPERTY WORKS: Subject to CIR' Wind-Up Petition SEFTON GROVE: Filing Proofs of Debt Due Today P H I L I P P I N E S ACCESS WORLDWIDE: Converts Promissory Notes to Common Stock BANGKO SENTRAL: Buys US$2 Bil. Spot Currency to Slow Down Peso BANGKO SENTRAL: Urges Banks to Use Special Purpose Vehicles Act CHIQUITA BRANDS: US Siding with Firm in Banana Dispute with EU DEL MONTE: Settles Antitrust Suits by Banana Buyers for US$2.5M PHIL NAT'L BANK: Expects PHP1 Billion Annual Net Income for 2007 PRIME ORION: Unit Acquires Interest in PNB Loans for PHP400 Mil. * Revenue Collection for 2007 May Fall PHP25 Billion Off Target S I N G A P O R E CKE RESTAURANTS: Court Rejects Preliminary Injunction Motion MULTILINE SHIPPING: Taps Lau Chin Huat as Liquidator PETROLEO BRASILEIRO: Operating 3 Biodiesel Plants by Year-End PETROLEO BRASILEIRO: To Present New Wage Proposal to Stop Strike QUANTUM ENERGY: Wind-Up Petition Hearing Set for July 13 SINTRADE SHIPPING: Creditors Resolve to Close Business SPECTRUM BRANDS: Carries Out Management Streamlining VALEANT PHARMA: Settles Patent Infringement Suit with Kali Labs T H A I L A N D ADVANCE AGRO: Sees Increased Production With New Cut-Size Lines HANTEX PCL: SET Cancels Call-Market Trading of Securities STANDARD CHARTERED: SET Cancels Call-Market Trading of Stocks THAI-DENMARK: Reports to SET on Progress of Rehabilitation Plan THAI WAH: Supranee and Pattrarat Leave Posts as Directors THANACHART BANK: SET Cancels Call-Market Trading of Securities * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= BACKHOUSIA PTY: Liquidator to Give Wind-Up Report on July 27 ------------------------------------------------------------ Backhousia Pty Ltd will hold the final meeting for its members on July 27, 2007, at 10:30 a.m. At the meeting, Barry J. Tognola, the company's liquidator, will give a report about the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Barry J. Tognola c/o WHK - TCM Smith 22 Walker Street Townsville, Queensland 4810 Australia About Backhousia Pty Located in Queenslan, Australia, Backhousia Pty Ltd is an investor relation company. CALSONIC AUSTRALIA: Enters Wind-Up Proceedings ---------------------------------------------- On June 12, 2007, the members of Calsonic Australia Pty Ltd had a meeting and resolved to voluntarily wind up the company's operations. Salvatore Algeri and Timothy B. Norman were appointed as liquidators. The Liquidators can be reached at: Salvatore Algeri Timothy B. Norman Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About Calsonic Australia Calsonic Australia Pty Ltd -- http://www.calsonickansei.co.jp/english-- is a distributor of industrial and commercial machinery and equipment. The company is located in Victoria, Australia. CARIB PTY: Sets Members' Final Meeting for July 26 -------------------------------------------------- The members of Carib Pty Ltd will have their final meeting on July 26, 2007, at 9:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: Gary F. Westbrook c/o T. H. White & Co 1st Floor, 184 Barkly Street St Kilda, Victoria 3182 Australia About Carib Pty Carib Pty Ltd provides business services. The company is located in Victoria, Australia. CONSTELLATION BRANDS: Hires Rob Sands as Chief Executive Officer ---------------------------------------------------------------- Constellation Brands Inc.'s board of directors has named Robert S. (Rob) Sands, chief executive officer effective July 26, 2007. Richard Sands will remain active in the company as chairman of the board. "The board of directors of Constellation Brands has unanimously concurred that it is in the best interests of the company and its stockholders that Rob Sands succeed Richard Sands as the next chief executive officer," stated James A. Locke III, head of the board's governance committee. "Rob's 21 years with the company; his proven knowledge, experience and leadership abilities; established track record in having already served as Constellation's general counsel, chief operating officer and president; collectively give the board full confidence in his capabilities to lead the company." Rob Sands joined Constellation Brands in June 1986 as general counsel overseeing the company's legal affairs, with an emphasis on its acquisitions. In 1993 he was appointed executive vice president and general counsel and promoted to chief executive officer of Constellation International after the company's acquisition of the United Kingdom's Matthew Clark plc in 1998. From 2000 through most of 2002, he served as group president over both the U.K. operations and Canandaigua Wine company. He was named president and chief operating officer for Constellation Brands in December 2002. He is a member of the company's board of directors and has a bachelor's degree from Skidmore College and a law degree from Pace University. Prior to joining Constellation he was an attorney at a Rochester, N.Y., law firm. "After 28 years with the company, and the last 14 as chief executive officer, it is time for me to pass the CEO baton, and Rob is the right choice to maintain continuity in Constellation's ongoing pursuit of True Growth and harvesting opportunities to improve return on invested capital, earnings and free cash flow," said Richard Sands, Constellation Brands chairman and chief executive officer. "Rob's focus will be to lead Constellation Brands to the next level of growth and value creation by maintaining the company's entrepreneurial spirit, decentralized structure, core values and long-term strategic vision. I will be available to provide guidance, although Rob will be running the company, something I firmly believe is the right structure to maximize the company's future growth potential." Richard Sands joined Constellation Brands in August 1979, and subsequently served in various wine production, finance, sales and marketing roles before being named executive vice president in 1982. In May 1986, he was named president and chief operating officer, and was named chief executive officer in 1993. In September 1999 he was named chairman. He has a bachelor's degree from the University of Vermont, in addition to master's and doctorate degrees in social psychology from the University of North Carolina. Resulting from these changes, Keith Wilson has been promoted to the newly created position of chief administrative officer and he will report to Rob Sands, also effective July 26, 2007. Mr. Wilson, who is currently Constellation's executive vice president and chief human resources officer, will be overseeing the company's global information technology, human resources and supply chain activities, in addition to having responsibility for the corporate communications and community relations group. Also effective on July 26, 2007, Jose Fernandez will be promoted to the new position of chief executive officer for Constellation Wines North America, which encompasses the company's Constellation Wines U.S. and Vincor Canada operations. He is currently chief executive officer for Constellation Wines U.S. Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and markets beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. The company also operates in the United Kingdom, Canada, Australia, Japan, and New Zealand. One of Constellation Brands wine and grape processing facilities is located in Casablanca, Chile. * * * As reported in the Troubled Company Reporter-Latin America on May 15, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured debt rating to Constellation Brands Inc.'s proposed US$700 million note offering due 2017, issued under Rule 144A with registration rights. As reported in the Troubled Company Reporter-Latin America on May 11, 2007, Fitch Ratings has assigned a 'BB-' rating to Constellation Brands Inc.'s proposed US$700 million 10-year senior note offering. As reported in the Troubled Company Reporter-Latin America on May 10, 2007, Moody's assigned a Ba3 rating to Constellation Brands Inc.'s US$700 million senior unsecured note issuance which will be used to reduce outstanding borrowings under the US$900 million revolving portion of the company's senior credit facility. Moody's affirmed all other ratings of the company with stable outlook. ENCYSIVE PHARMACEUTICALS: Cuts 70% of US Work Force --------------------------------------------------- Encysive Pharmaceuticals Inc. will reduce its U.S. work force by about 70%, to about 65 people in an effort to focus its resources on most promising assets. The company disclosed that its board of directors had authorized a strategic restructuring following the company's receipt of a third "approvable letter" from the U.S. Food and Drug Administration for Thelin(TM), which is under review for the treatment of pulmonary arterial hypertension. As a result, about 150 company employees, including the U.S. sales force, will be terminated immediately, with a smaller group leaving in the coming months. The company also eliminated the position of chief operating officer. The company is providing cash severance payments to employees directly affected by the workforce reduction. The company estimates that it will record about US$15 million in restructuring and severance costs in 2007. Headquartered in Houston, Texas, Encysive Pharmaceuticals Inc. (Nasdaq: ENCY) -- http://www.encysive.com/-- is a biopharmaceutical company engaged in the discovery, development and commercialization of novel, synthetic, small molecule compounds to address unmet medical needs. The company has successfully developed one FDA approved drug, Argatroban, for the treatment of heparin-induced thrombocytopenia, which is licensed to and marketed by GSK. The company's lead drug candidate, Thelin(TM) is an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension. Thelin(TM) is commercially available in the United Kingdom and has been approved in Australia. Going Concern Doubt As reported in the Troubled Company Reporter on April 30, 2007, KPMG LLP, in Houston, expressed substantial doubt about Encysive Pharmaceuticals Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. ENCYSIVE PHARMACEUTICALS: George Cole Named as President and CEO ---------------------------------------------------------------- Encysive Pharmaceuticals Inc. appointed George W. Cole, the company's chief operating officer, as its president and chief executive officer. Mr. Cole was also elected to the company's board of directors. Mr. Cole had served the company as COO since November 2005. From 1992 to 2005, he served as president of Altana Pharma U.S. Mr. Cole received his B.S. in Pharmacy from the University of Louisiana and his M.B.A. from the University of Evansville. In connection with the appointment and election, the termination agreement dated Oct. 25, 2005, between the company and Mr. Cole was amended to reflect the changes in Mr. Cole's duties, responsibilities and position and to increase Mr. Cole's annual base salary to US$490,000. In addition, the amendment to the Cole Agreement provides for the grant by the company to Mr. Cole of options to purchase 500,000 shares of the company's common stock with an exercise price of US$1.89 per share. The options, which will be granted pursuant to and governed by the terms of the company's incentive plans, will vest as to one-half of the shares covered thereby on each of May 31, 2009 and May 31, 2010. The amendment to the Cole Agreement is qualified by reference to the letter agreement dated June 24, 2007, between the company and Mr. Cole. Effective June 24, 2007, the company's employment of Bruce D. Given, M.D., the company's former president and CEO, was terminated. Subject to certain conditions including the execution of release in favor of the company and its affiliates, the company will provide Dr. Given with the benefits contained in a termination agreement dated March 21, 2003, as amended, between the company and Dr. Given. Headquartered in Houston, Texas, Encysive Pharmaceuticals Inc. (Nasdaq: ENCY) -- http://www.encysive.com/-- is a biopharmaceutical company engaged in the discovery, development and commercialization of novel, synthetic, small molecule compounds to address unmet medical needs. The company has successfully developed one FDA approved drug, Argatroban, for the treatment of heparin-induced thrombocytopenia, which is licensed to and marketed by GSK. The company's lead drug candidate, Thelin(TM) is an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension. Thelin(TM) is commercially available in the United Kingdom and has been approved in Australia. Going Concern Doubt As reported in the Troubled Company Reporter on April 30, 2007, KPMG LLP, in Houston, expressed substantial doubt about Encysive Pharmaceuticals Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. FESTON PTY: Members to Receive Wind-Up Report on July 20 -------------------------------------------------------- Feston Pty Ltd will hold a final meeting for its members on July 20, 2007, at 10:30 a.m. The members will receive at the meeting a report about the company's wind-up proceedings and property disposal. The company's liquidator is: Barry J. Tognola c/o WHK - TCM Smith 22 Walker Street Townsville, Queensland 4810 Australia About Feston Pty Feston Pty Ltd is a distributor of furniture and fixtures. The company is located in Victoria, Australia. JD & S FINANCIAL: Placed Under Voluntary Wind-Up ------------------------------------------------ During a general meeting held on June 5, 2007, the members of JD & S Financial Services Pty Ltd agreed to voluntarily wind up the company's operations. The company's liquidators are: David Michael Stimpson Terry Grant van der Velde SV Partners, Insolvency Accountants and Risk Managers SV House, Suite 2b Plaza Links, 1-9 Plaza Parade Maroochydore, Queensland 4558 Australia About Jd & S Located in Queensland, Australia, Jd & S Financial Services Pty Ltd, is an investor relation company. KAGARA ZINC: Revises Profit Forecast to AU$130 Million ------------------------------------------------------ Kagara Zinc Limited has downgraded its profit forecast from AU$175 million, as of its January 2007 revision, to AU$130 million for the fiscal year ending June 30, 2007, following disruptions at its Queensland operations, reports the Australian Associated Press. According to the report, Kagara said that this prediction is based on the 25% drop in output during the three months to June 30, which they think will have an impact on its profit. The 25% downslide, writes the AAP, was a result of a timing delay in accessing high grade ore from the Balcooma polymetallic and copper open pits, due to poor weather and interruption to ore haulage. AAP, quoting the company, said that Kagara "has assumed responsibility for open pit mining at Balcooma and Mt Garnet." Revising its profit forecast twice, the base metal miner originally estimated its profit for the 2006-07 financial year was AU$200 million, relates the report. About Kagara Zinc Headquartered in West Perth, Australia, Kagara Zinc Limited -- http://www.kagara.com.au/-- is primarily engaged in mineral exploration, development and mineral production. During the fiscal year ended June 30, 2006 (fiscal 2006), the company carried out mining activities from the Mt Garnet Zinc plant. On January 20, 2006, the Company acquired Kagara Copper Pty Ltd. The Troubled Company Reporter - Asia Pacific, on Jan 30, 2007, listed Kagara Zinc's bond with a 9.750% coupon and a May 6, 2007 maturity date as distressed. MAHONIA PTY: Members to Meet on July 27 --------------------------------------- The members of Mahonia Pty Ltd will meet on July 27, 2007, at 10:30 a.m., to hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: Barry J. Tognola c/o WHK - TCM Smith 22 Walker Street Townsville, Queensland 4810 Australia About Mahonia Pty Located in Queensland, Australia, Mahonia Pty Ltd is an investor relation company. PETERS HOLDINGS: Members' Final Meeting Set for July 27 ------------------------------------------------------- A final meeting will be held for the members of Peters Holdings Pty Ltd on July 27, 2007, at 11:00 a.m. Campbell Walker Peters, the company's liquidator, will give, at the meeting, a report about the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Campbell Walker Peters PO Box 173 Charters Towers, Queensland 4820 Australia About Peters Holdings Located in Queensland, Australia, Peters Holdings Pty Ltd is an investor relation company. REALOGY CORP: Change of Control Offer for Notes Ends on July 3 -------------------------------------------------------------- Realogy Corporation announced that its change of control offer for any and all of its outstanding US$250,000,000 principal amount of Floating Rate Senior Notes due 2009, US$450,000,000 principal amount of 6.15% Senior Notes due 2011 and US$500,000,000 principal amount of 6.50% Senior Notes due 2016 will expire at 10:00 a.m., New York City time, on Tuesday, July 3, 2007. Realogy will not extend the expiration date for the change of control offer. As required by the indenture and the Notes, the purchase price with respect to each series of Notes is equal to 100% of the principal amount of such series of Notes, plus accrued interest payable with respect to such series of Notes to July 9, 2007, which will be the payment date. Realogy has retained Wells Fargo Bank, National Association to act as Depositary in connection with the offer. Questions regarding how to tender the Notes subject to the change of control offer and requests for the Change of Control Notice and Offer to Purchase and other documents may be made to Wells Fargo Bank, National Association by telephone at (213) 614-2588. About Realogy Corp. Headquartered in Parsippany, N.J., Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. REGENCY HOTEL: Liquidator to Present Wind-Up Report on Aug. 3 ------------------------------------------------------------- A final meeting will be held for the members and creditors of Regency Hotel Group Pty Ltd on August 3, 2007, at 10:30 a.m. Mark Pearce, the company's liquidator, will give, at the meeting, a report about the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Mark Pearce Pearce & Heers Insolvency Accountants Australia Telephone:(07) 3221 0055 Facsimile:(07) 3221 8885 About Regency Hotel Regency Hotel Group Pty Ltd operates hotels. The company is located in Queensland, Australia. SUN CA: Members and Creditors to Meet on July 31 ------------------------------------------------ The members and creditors of Sun Ca Pty Ltd will meet on July 31, 2007, at 9:00 a.m., to hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: M. G. Mccann Grant Thornton Chartered Accountants Level 4, 102 Adelaide Street Brisbane, Queensland 4000 Australia About Sun Ca Sun Ca Pty Ltd provides building cleaning and maintenance services. The company is located in Queensland, Australia. TULSA PTY: To Declare Dividend for Priority Creditors on July 20 ---------------------------------------------------------------- Tulsa Pty Ltd, which is in liquidation, and formerly trading as Pandora Panetteria, will declare dividend for its preferred creditors on July 20, 2007. Preferred creditors are required to file their proofs of debt by July 6, 2007, to be included in the company's dividend distribution. The company's liquidators are: Terry Grant Van Der Velde David Michael Stimpson SV Partners SV House, 138 Mary Street Brisbane, Queensland 4000 Australia About Tulsa Pty Tulsa Pty Ltd is a distributor of bread and other bakery products, except for cookies and crackers. The company is located in Queensland, Australia. ================================ C H I N A & H O N G K O N G ================================ CHINA MINSHENG: Expects First Half Earnings to Rise Up To 60% ------------------------------------------------------------- China Minsheng Banking Corp is expecting to report a more than 60% growth in earnings for the first half of this year due to increased lending and rapid expansion in investment and wealth management business, Infocast News relates. According to the report, Minsheng reported a net profit of CNY1.733 billion, or CNY0.17 per share, for the first six months of 2006. The bank is due to release its audited first half profit on August 31. China Minsheng Banking Corporation Ltd's principal activity is the provision of commercial banking services that include absorbing public deposits, providing short term, medium term, and long term loans, making domestic and international settlement, discounting bills and issuing financial bonds. On September 4, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed China Minsheng Banking Corp.'s Individual D/E and Support 4 ratings. CHINA NONFERROUS MFCL: Creditors' Proofs of Debt Due by July 28 --------------------------------------------------------------- The creditors of China Nonferrous Metals Futures Company Limited are required to file their proofs of debt by July 28, 2007. Failure to prove debts by the due date will exclude a creditor from sharing in the company's dividend distribution. The company's liquidator is: Desmond Chung Seng Chiong Ferrier Hodgson Limited Hong Kong Club Building, 14th Floor 3A Chater Road, Central Hong Kong CHINA NONFERROUS MSCL: Proofs of Debt Due by July 28 ---------------------------------------------------- China Nonferrous Metals Securities Company Limited requires its creditors to file their proofs of debt by July 28, 2007. Creditors who cannot file their debts by the due date will be excluded from sharing in the company's dividend distribution. The company's liquidator is: Desmond Chung Seng Chiong Ferrier Hodgson Limited Hong Kong Club Building, 14th Floor 3A Chater Road, Central Hong Kong CITIC BANK: To Provide CNY10BB Credit Line to China Huadian ----------------------------------------------------------- CITIC Bank has inked a CNY10-billion credit line agreement with China Huadian Corp, one of China's five biggest power producers, Xinhua Finance relates, citing a report from the Shanghai Securities News. The agreement, according to the report, covers China Huadian and its affiliates. China Huadian is a wholly state-owned enterprise approved by the State Council, comprising enterprises and institutions formerly owned by State Power Corporation of China. CITIC Bank Co Ltd, formerly China CITIC Bank, is a wholly owned subsidiary of the state conglomerate Citic Group. With 416 branches, CITIC Bank had total assets of CNY689.5 billion at the end of September 2006. The bank carries Fitch Ratings' Individual strength of D and support rating of 2 following its IPO which, improved the bank's capitalization, strengthened ability of the government to support and CNCB's historically close relationship with the central government. The Troubled Company Reporter - Asia Pacific on May 10, 2007, reported that Moody's Investors Service handed a Bank's Bank Financial Strength Rating of D- to CITIC Bank. CONFREIGHT INTERNATIONAL: Placed Under Voluntary Liquidation ------------------------------------------------------------ At an extraordinary general meeting held on June 22, 2007, the members of Confreight International Limited passed a resolution to wind up the company's operations. Tong Lap Hong was appointed as liquidator. The Liquidator can be reached at: Tong Lap Hong Kowloon Building, Room 704 555 Nathan Road, Kowloon Hong Kong EAGLE SMART: Taps Andrew C.C. Ma & Felix K.L. Lee as Liquidators ---------------------------------------------------------------- On June 22, 2007, the members of Eagle Smart Limited passed a resolution appointing Andrew C.C. Ma & Felix K.L. Lee as the company's liquidators. The liquidators can be reached at: Andrew C.C. Ma Felix K.L. Lee Seaview Commercial Building, 19th Floor 21-24 Connaught Road, West Hong Kong INTELLIGENT SHOE: Members and Creditors to Meet on August 3 ----------------------------------------------------------- The members and creditors of Intelligent Shoe Manufacturing Company Limited will meet on August 3, 2007, at 10:00 a.m. and 11:00 a.m., respectively, to receive the liquidator's report about the company's wind-up proceedings and property disposal. The meeting will be held on the 8th Floor of Richmond Commercial Building at 109 Argyle Street, Mongkok in Kowloon, Hong Kong. MICHELE PASCUCCI: Appoints Ma & Lee as Liquidators -------------------------------------------------- Andrew C.C. Ma & Felix K.L. Lee were appointed as liquidators of Michele Pascucci Foundation Limited on June 22, 2007. The Liquidators can be reached at: Andrew C.C. Ma Felix K.L. Lee Seaview Commercial Building, 19th Floor 21-24 Connaught Road, West Hong Kong OASIS CONSULTANTS: Members to Receive Wind-Up Report on July 30 --------------------------------------------------------------- The members of Oasis Consultants Limited will meet on July 30, 2007, at 10:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The meeting will be held on Unit 1202, 12th Floor of Malaysia Building, at No. 50 Gloucester Road in Wanchai, Hong Kong. UNION LASER SURGERY: Names Lee King Yue as Liquidator ----------------------------------------------------- Lee King Yue was named as the liquidator of Union Laser Surgery Clinic Limited, through a special resolution passed on June 22, 2007. The Liquidator can be reached at: Lee King Yue Two International Finance Centre, 72-76th Floor 8 Finance Street, Central Hong Kong WAKOMICRO TECHNOLOGIES: Sets Final Meeting for July 30 ------------------------------------------------------ A final meeting will be held for the members and creditors of Wakomicro Technologies Limited on July 30, 2007, at 2:30 p.m. and 3:00 p.m., respectively, on Unit B, 16th Floor of Empire Land Commercial Centre at 81-85 Lockhart Road, Hong Kong. Ng Kwok Cheung, Bernard, the company's liquidator, will give at the meeting a report about the company's wind-up proceedings and property disposal. WELL-MADE TOY: Names Andrew Ma & Felix Lee as Liquidators --------------------------------------------------------- The members of Well-Made Toy Far East Limited passed on June 22, 2007, a resolution to appoint Andrew C.C. Ma & Felix K.L. Lee as the company's liquidators. The Liquidators can be reached at: Andrew C.C. Ma Felix K.L. Lee Seaview Commercial Building, 19th Floor 21-24 Connaught Road, West Hong Kong WISE POOL: Shareholders Resolve to Shut Down Business ----------------------------------------------------- The shareholders of Wise Pool Limited met on June 22, 2007, and decided to shut down the company's business. Pang Siu Chik, Alick was appointed as liquidator. The Liquidator can be reached at: Pang Siu Chik, Alick China Merchants Building, Room 804 152-155 Connaught Road, Central Hong Kong * PwC Adds 55 New Partners in China ----------------------------------- PricewaterhouseCoopers will admit 55 new partners in China to support its growth that has surged more than 30% annually over the past five years, China Daily reports. The accounting firm's current 40 new partners from the mainland and 15 from Hong Kong account for 10% of the company's new partners around the globe and will bring the total number in China to nearly 330, the paper notes. In addition, the firm also plans to raise its total headcount in China to 13,000 professionals from 8,000 currently to meet demand in what is now its third-largest market globally. "China is critical for PwC, not only because it's the fastest- growing market around the world but, more importantly, because of the role China is playing in capital markets," the company's Global CEO Samuel A. DiPiazza was quoted by the Daily during a press conference in Shanghai. "Whether it's in London, New York, Dubai or Frankfurt, the capital markets are heavily influenced by what happens here in China," he said. "Chinese companies, both State-owned enterprises and public or private companies listed here, will be looking for advisory assistance as they become more competitive in global markets, whether it's in process improvement, risk control, acquisition or tax," Mr. DiPiazza added. Foreseeing increasing demand from Chinese companies growing globally -- along with active mergers and acquisitions in Chinese enterprises in the coming five years -- the professional services firm has decided to invest US$50 million to US$100 million in China by 2011, the Daily adds. To date it has poured US$200 million into the country, has 12 offices across the nation and audits 40% of the China's major clients that have H- share listings. Frank Lyn, PwC's China markets leader, was quoted by the paper as saying that revenue growth has come mostly from auditing Chinese SOEs and initial public offerings. Last year, the accounting firm helped more than 20 companies with a total IPO value of US$23 billion list in Shanghai or Hong Kong, the paper relates. PwC has a high turnover rate of 15% to 18% in personnel across the world, yet the rate could exceed 20% in China. * China's Credit Quality Favorable But Risks Intensify, Says S&P ---------------------------------------------------------------- Investors' strong appetite for high-yield bonds in Greater China is reflected in the industry report card released on July 5, 2007, by Standard & Poor's Ratings Services, titled "Overall Credit Quality Remains Sound As Greater China Corporates Pound The Growth Trail." Standard & Poor's has rated 28 new issue ratings and 19 corporate credit issuer ratings in China, Hong Kong, and Taiwan over the past 18 months. Some 32 of the 76 total issuers are now categorized below BBB-, highlighting the influx of high- yield issuers in this region. Chinese real-estate developers led the drive to the capital markets, particularly in Hong Kong, in a bid to shore up their land banks and re-finance. More ratings were lowered than raised from Jan. 1, 2006, to June 29, 2007. Standard & Poor's downgraded 15 issuers, largely reflecting heightened credit risks as companies pursued debt- funded acquisitions. The default rate remained low, however. "Over the near term, corporate credit quality in the region should be stable, underpinned by sound economic fundamentals," said Standard & Poor's credit analyst Lawrence Lu. ========= I N D I A ========= AES CORP: Names Catherine Freeman as Deputy Chief Fin'l Officer --------------------------------------------------------------- The AES Corporation's Board of Directors appointed Catherine Freeman to the position of Deputy Chief Financial Officer. Ms. Freeman previously held the title of Vice President and Controller. In her new role, Ms. Freeman's principal responsibility will be to review and ensure adequate and consistent application of AES financial policies and controls across the Company's subsidiaries. In this role, Ms. Freeman will act as a member of the board of directors of certain publicly traded subsidiaries of AES and shall provide technical and corporate governance support for those boards, including their respective financial audit committees. She will also be responsible for assisting with the review of the financial controls and audits at the Company's subsidiaries, including their technical performance, staffing and quality assurance programs. Ms. Freeman joined the Company in 2004 as Vice President and Controller, and in that position maintained the Company's accounting functions and managed our global financial controls. AES also reported that the Board appointed Mary Wood to the position of Vice-President and Controller where she will assume responsibility for the Company's accounting functions. Ms. Wood is a partner at Tatum, LLC, an executive services and consulting firm in the U.S., where she is a Partner in the South Florida office. Ms. Wood brings more than twenty-five years of accounting experience to AES. Ms. Wood, 52, has a Bachelor's of Business Administration in accounting from Florida Atlantic University. Prior to joining Tatum in 2005, she worked as Executive Vice President and Chief Financial Officer for DHL Express of the Americas from 2002-2004 and as Senior Vice President of Shared Services for ANC Corporation. She was formerly Vice-President, Controller and Chief Accounting Officer for AutoNation Inc. and Chief Financial Officer for Alamo Rent-A-Car. Ms. Wood was a partner at KPMG Peat Marwick from 1987 until 1995. The Company has reached agreement on the terms of Ms. Wood's employment with AES. The agreement expires on December 31, 2008. Ms. Wood will receive a salary of US$25,000 per month, she will be eligible for a 50% annual cash incentive bonus based on individual and business performance, she will be eligible for a "success bonus" for achieving certain to be agreed-upon milestones in the amount of up to US$240,000, she will be reimbursed for healthcare costs up to US$8,000 per year, and she will be eligible to participate in The AES Corporation Retirement Savings Plan, which is the company's 401(k) plan, and any profit sharing award to employees. The Company will also reimburse Ms. Wood for her accommodations in Virginia and her travel expenses from Florida to Virginia. The Company has no obligation to provide Ms. Wood any stock-based compensation and she will not be eligible to participate in the Company's severance plan. However, if the Company terminates Ms. Wood within the first 90 days of her employment, she shall be entitled to a US$20,000 severance payment, which increases to US$40,000 if the termination occurs more than 90 days after her employment commences until the expiration of the agreement. In connection with Ms. Wood's employment with AES, the Company has entered into an Interim Engagement Resources Agreement with Tatum. Pursuant to the agreement, the Company will pay Tatum a fee of US$11,250 per month for each month Ms. Wood is employed with the Company. Tatum will also be paid amounts equal to 25% of any success bonus and/or severance paid to Ms. Wood. In addition, if the Company terminates the Tatum Agreement and retains Ms. Wood as an employee or as an independent contractor (i) during the first 18 months of the term of the Tatum Agreement, the company will pay Tatum a break up fee of 45% of Ms. Wood's total base salary and target bonus amount; and (ii) after the first 18 months of the term of the Tatum Agreement but prior to the day following the one year anniversary of Ms. Wood's termination by the company, the company will pay Tatum a break up fee of 35% of Ms. Wood's total base salary and target bonus amount. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES has operations in India. * * * In Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. BALLARPUR INDUSTRIES: To Explore Ways to Boost Growth Prospects --------------------------------------------------------------- Ballarpur Industries Ltd's board of directors at its meeting on July 4, 2007, inter alia, deliberated on the business or growth plans of the company, a filing with the Bombay Stock Exchange reveals. Upon deliberations and discussions, the board formulated a committee of directors to examine ways and means of enhancing the growth prospects of the company and to revert with a proposal for the same. The company is authorized to appoint any consultants, including lawyers and financial advisors for the purpose. Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. As of May 15, 2007, the company still carry those ratings. BANK OF BARODA: Completes Sale of 0.90% NSEIL Stake --------------------------------------------------- Bank of Baroda informed the Bombay Stock Exchange that the bank has completed the sale of 4,00,500 shares of National Stock exchange of India Ltd (representing 0.90% of NSEIL equity) to Citigroup Strategic Holdings Mauritius Ltd. The shares were sold at a price of INR2281.01 each, which resulted in the bank booking a profit of INR90.65 crore. The deal was contracted on Feb. 14, 2007 together with other banks and concluded on June 28, 2007 on the receipt of the regulatory approvals. Headquartered in Vadodara, India, Bank of Baroda -- http://www.bankofbaroda.com -- is a provider of banking services in India. The company's solutions includes personal banking, which includes deposits, retail loans, credit cards, debit card, lockers and other services; business banking, which comprises working capital, term finance and traders loans; corporate banking, which includes cash management and remittances, multi-city cheques, appraisals and merchant banking; international business, which includes import finance, international treasury, export finance, correspondent banking and other solutions; treasury banking, which comprises domestic operations and forex operations, and rural banking, which includes retail loan, small businesses and small scale industries. Bank of Baroda has branches in the Bahamas, Belgium, the Fiji Islands, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, the United Kingdom, and the United States of America. * * * Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of Baroda's proposed unsecured subordinated Upper Tier 2 notes (expected size: USD250 million plus greenshoe option), as well as the hybrid Tier 1 debt to be issued under its USD1.5 billion medium-term notes programme. The agency also affirmed the bank's Individual Rating of 'C/D'. The outlook on all ratings is stable. BHARTI AIRTEL: Temasek to Buy 4.99% Stake, Report Says ------------------------------------------------------ Temasek Holdings (Private) Ltd, the Singaporean government's investment arm, will buy a 4.99% stake in Bharti Airtel Limited, Moneycontol.com reported on Wednesday. The stake value is estimated at about INR8,000 crore. Forbes.com says the deal was still likely. Temasek was offered the stake by one of Bharti's group companies by granting Temasek's wholly owned subsidiary an option to acquire an indirect stake in Bharti Airtel, Ruth Davis of Forbes.com relates. The option arrangement envisages acquisition of such number of shares which, on exercise, will result in a beneficial stake in the Company to the extent of 4.99%. Reports, however, failed to disclose the price of the deal. Moneycontrol pointed out an "interesting" effect of the deal to the share holding of Bharti Airtel. If Temasek will proceed with the purchase of the stake, the Singapore government will now control close to 35% stake in Bharti Airtel because SingTel, which Temasek owns about 56% stake, has a 30% interest in Bharti Airtel. Bharti Enterprises continues to maintain a controlling interest of over 45% in the company through its subsidiary Bharti Telecom Ltd. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS), and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long-distance services) and Corporates. Through Enterprise Services-Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services- Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Services put the company's long-term local and foreign issuer credit ratings on BB+ on Sept. 21, 2005. As of May 16, 2007, the company still carries the rating. BHARTI AIRTEL: Inks US$900MM Expansion Deal With Nokia Siemens -------------------------------------------------------------- Bharti Airtel Ltd, on July 3, 2007, signed a Memorandum of Understanding with Nokia Siemens Networks for an expansion contract valued at about US$900 million. Under the deal, Nokia Siemens Networks will expand Airtel's GSM network in eight circles; its National Long Distance and International Long Distance network with 1.8 million Next Generation Network ports, and its International Calling Card prepaid service capacity by 4.5 million news users. The GSM and NGN expansions are planned over two years and the International calling cards expansion over three years. The Memorandum of Understanding was signed between Manoj Kohli, President and CEO of the company and Simon Beresford Wylie, CEO of Nokia Siemens Networks. Commenting on the partnership, Mr. Kohli said, "Bharti Airtel is undertaking a massive expansion and integration exercise across its mobile and fixed networks to significantly augment its service delivery capacity. Today's comprehensive network expansion contract is a reflection of this vision. Nokia Siemens Networks with its industry leading product portfolio and strong services capabilities is the strategic partner for Bharti Airtel to deliver on its vision of world class telecom services to its customers." The two year GSM expansion will cover the eight existing circles of Mumbai, Maharashtra & Goa, Gujarat, Madhya Pradesh & Chattisgarh, Bihar & Jharkhand, Orissa, Kolkata and West Bengal where Nokia Siemens Networks already provides equipment and Managed Services. The expansion will enable Airtel to rapidly expand its geographical footprint to rural India and increase its overall network capacity. The contract includes network planning, implementation and project management, handling of local logistics and materials as well as system integration for the base station sites. Nokia Siemens Networks has one of the world's largest services networks with more than 20,000 dedicated professionals and outstanding execution capability. The network will be continued to be supported by the multitechnology, multivendor NetAct(TM) network and service management system. Nokia Siemens Networks will deploy the latest state of art GSM equipment such as Flexi Edge and Ultrasite BTS, BSC3i, 3GPP-based mobile softswitching solution including 3G capable MSC Servers and Media Gateways, and transmission network including PDH & SDH. For the two year Fixed Network expansion, Nokia Siemens Networks will deploy 1.8 million Next Generation Networks ports across Airtel's National Long Distance and International Long Distance. The NGN expansion exercise in the country will allow Airtel to consolidate its position as a leading fixed line operator covering Class 4 - Long Distance National and International Switches. Nokia Siemens Networks will deploy its complete IP trunking solution with SURPASS hiE 9200 softswitches, SURPASS hiG 1200 media gateways and SURPASS hiR 200 media servers. For optimized support of international traffic, some of the components will be deployed in other countries. The three-year International Calling Cards services expansion will see Airtel more than quadruple its capacity and adequately address its calling card business expansion to tap more international markets. The calling card prepaid service will be supported by Nokia Siemens Networks' flexible IN@vantage platform for intelligent services. It also allows Bharti to increase network traffic and related revenues by addressing specific market segments and user expectations with dedicated communication solutions. Both Nokia and Siemens have been associated with building Airtel's mobile and fixed networks. The previous major deal for GSM expansion that was signed last year between Nokia and Bharti was valued at US$400 million. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS), and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long-distance services) and Corporates. Through Enterprise Services-Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services- Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Services put the company's long-term local and foreign issuer credit ratings on BB+ on Sept. 21, 2005. As of May 16, 2007, the company still carries the rating. CANARA BANK: US$250-Million Notes Due 2021 Gets S&P's BB Rating --------------------------------------------------------------- Standard & Poor's Ratings Services, on July 4, 2007, assigned its 'BBB-' long-term and 'A-3' short-term counterparty credit ratings to India-based Canara Bank. The outlook on the long-term rating is stable. Standard & Poor's also assigned its 'C' bank fundamental strength rating to the bank. At the same time, Standard & Poor's assigned its 'BB' issue rating to Canara Bank's US$250 million Upper Tier II subordinated notes due in 2021. The differential between the 'BBB-' counterparty credit rating on Canara Bank and the 'BB' rating on its Upper Tier II subordinated notes reflects the subordination and interest deferral features. This interest deferral feature is linked to the compliance of the regulatory capital adequacy ratio (RCAR) and a profit test, which in turn is linked to the "balance in P&L account," a component of the reserves and surplus on the bank's balance sheet. A "net loss" is defined as a negative balance in this account. If the bank's RCAR is below the minimum regulatory requirement stipulated by the Reserve Bank of India, it would be mandatory to skip interest payments. As of March 31, 2007, Canara Bank's RCAR stood at 13.50%, compared with the minimum regulatory requirement of 9%. If the bank is in compliance with the RCAR but reports a "net loss," the bank will require the regulator's (RBI) permission before the bank can make interest payments on the notes. The Upper Tier II subordinated notes will not be included in Standard & Poor's measure of core capital, which is adjusted common equity. This is in line with Standard & Poor's treatment of other forms of hybrid capital, including preference shares, in its analysis of capital. "The counterparty credit ratings on Canara Bank take into account its strong market position in the domestic market, healthy funding and liquidity profile, and its adequate financial profile," said Standard & Poor's credit analyst Ivy Tan. "Profitability of the bank remained adequate and its asset quality is above average. However, its capitalization position is weak compared with its domestic peers. Further growth in its loan book will likely put increased pressure on the bank's capitalization." A BFSR of 'C' indicates that Canara Bank has adequate fundamental strength. However, the bank is more sensitive to uncertainties and adverse circumstances than the higher-rated entities. The stable outlook on the ratings for Canara Bank reflects our expectations that the bank's current financial profile will be maintained, aided by its strong domestic market position and the robust economic growth. A significant improvement in its financial profile, coupled with improved risk management practices, could have positive effects on the ratings. Conversely, a significant deterioration in its profitability, capitalization or asset quality will put downward pressure on the ratings. GENERAL MOTORS: June 2007 Sales Drop 24% ---------------------------------------- General Motors Corp. dealers in the United States delivered 326,300 vehicles in June, down 24%, compared with year-ago monthly sales. The decline was partly attributed to a planned reduction of an additional 13,487 daily rental sale vehicles in the month. GM now has taken more than 92,000 daily rental vehicles out of the sales totals in 2007. "Given the planned reduction in daily rental sales, we expected June would be a tough comparison to a year ago," Mark LaNeve, vice president, GM North American Sales, Service and Marketing, said. "Our retail performance for the month was also below the solid running rate we've experienced for the first half of the year which we attribute to a soft industry and lower incentive spending than our competitors. However, we continue to believe that maintaining a disciplined approach to both incentives and daily rental car sales is key to making our marketing strategy work in the long run." "We continue our focus on the retail side of the equation and first-half results were solid," Mr. LaNeve added. "We are delighted with the continuing success of new products, especially the GMC Acadia, Saturn OUTLOOK and Buick Enclave. As with many of our vehicles, these all-new crossovers offer great fuel economy, terrific performance and outstanding value. For example, a year ago we were selling only about 3,000 mid-utility crossover vehicles. This June we blew the doors off the segment with deliveries in excess of 15,000." Increased sales of the Saturn AURA, as well as the new mid-size crossovers GMC Acadia, Saturn OUTLOOK and Buick Enclave, demonstrate GM's strong positioning in the marketplace for fuel- efficient vehicles. The GMC Acadia, Saturn OUTLOOK and Buick Enclave had retail sales of more than 12,000 vehicles, pushing a significant retail increase in GM's mid-crossover segment. GM's total sales of more than 15,000 vehicles in this segment pushed monthly performance up more than 377%, compared with the same month last year. The all-new Chevrolet Silverado and GMC Sierra full-size pickup trucks -- fuel efficiency leaders in their class -- helped the GM full-size pickup segment post a first half 2007 sales increase, compared with the same period a year ago, in a challenging industry environment. The Silverado and Sierra also offer the best warranty coverage and residual values in segment, a winning combination for these products. "We're seeing increased residual values for our products as a result of staying aligned and disciplined to our North American turnaround and market growth plans," Mr. LaNeve said. "For customers, this means providing industry-leading products in terms of design, segment fuel economy, warranty coverage and performance. This translates to a beneficial cost of ownership experience. With new products such as the Cadillac CTS and Chevrolet Malibu coming to dealer showrooms later this year, we expect to build on this customer enthusiasm." Certified Used Vehicles June 2007 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 45,876 units, up 6% from last June. Total year-to-date certified GM sales are 273,241 units, up 4% from the same period last year. GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted 40,423 sales, up 9% from last June. Year-to-date sales for GM Certified Used Vehicles are 240,138 units, up 5% from the same period in 2006. Cadillac Certified Pre-Owned Vehicles posted June sales of 3,108 units, down 14% from last June. Saturn Certified Pre-Owned Vehicles sold 1,484 units in June, down 9%. Saab Certified Pre- Owned Vehicles sold 764 units, down 11% from last June, and HUMMER Certified Pre-Owned Vehicles sold 97 units, up nearly 7%. "GM Certified Used Vehicles, the industry's top-selling manufacturer-certified brand, posted a strong performance in June, leading the segment with sales of 40,423 units, up 9% from last June," Mr. LaNeve said. "GM Certified is on track to build on this momentum toward another record performance for the category for 2007." June & Second Quarter 2007 Production In June, GM North America produced 404,000 vehicles (142,000 cars and 262,000 trucks). This is down 56,000 units or 12% compared to June 2006 when the region produced 460,000 vehicles (173,000 cars and 287,000 trucks). (Production totals include joint venture production of 21,000 vehicles in June 2007 and 27,000 vehicles in June 2006.) GM North America built 1.141 million vehicles (401,000 cars and 740,000 trucks) in the second-quarter of 2007. This is down 96,000 vehicles or 8 percent compared to second-quarter of 2006 when the region produced 1.237 million vehicles (462,000 cars and 775,000 trucks). The region's 2007 third-quarter production forecast is unchanged at 1.075 million vehicles (377,000 cars and 698,000 trucks). GM also announced revised 2007 second-quarter and third-quarter production forecasts for its international regions. * GM Europe The region's 2007 second-quarter production forecast is revised at 463,000 vehicles, down 5,000 units from last month's guidance. In the second-quarter of 2006 the region built 495,000 vehicles. The region's 2007 third-quarter production forecast remains unchanged at 389,000 vehicles. In the third-quarter of 2006 the region built 374,000 vehicles. * GM Asia Pacific GM Asia Pacific's 2007 second-quarter production forecast is revised at 569,000 vehicles, up 1,000 units from last month's guidance. In the second-quarter of 2006 the region built 482,000 vehicles. The region's 2007 third-quarter production forecast is revised at 518,000 vehicles, down 6,000 units from last month's guidance. In the third- quarter of 2006 the region built 433,000 vehicles. * GM Latin America, Africa and the Middle East The region's 2007 second-quarter production forecast is revised at 234,000 vehicles, up 1,000 units from last month's guidance. In the second-quarter of 2006 the region built 206,000 vehicles. The region's 2007 third-quarter production forecast is unchanged at 258,000 vehicles. In the third-quarter of 2006 the region built 215,000 vehicles. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. IMAX CORP: Obtains Nasdaq Nod for Continued Common Stock Listing ---------------------------------------------------------------- The Nasdaq Listing Qualifications Panel has granted IMAX Corporation's request for continued listing of its shares on The Nasdaq Stock Market. The decision is subject to the condition that the company files its Form 10-K for the fiscal year ended Dec. 31, 2006, its Form 10-Q for the fiscal quarter ended March 31, 2007, and all required restatements, on or before Oct. 1, 2007, and that it continue to meet all other Nasdaq listing requirements. The company expects to make these filings shortly. In March 2007, the company disclosed that it would delay filing its financial statements due to the discovery of certain accounting errors and subsequently broadened its accounting review to include certain other accounting matters based on comments received by the company from the staff of the Securities and Exchange Commission and the Ontario Securities Commission. On April 12, 2007 and May 14, 2007, Nasdaq sent the company letters indicating that it was not in compliance with Marketplace Rule/4310(c)(14), which requires timely filing of periodic reports with the SEC for continued listing of the company's common shares, and that company's common shares were subject to delisting from The NASDAQ Stock Market. On June 29, 2007, the company has substantially addressed the above-referenced comments from the SEC and OSC by revising its accounting policy with regard to revenue recognition for theatre systems, and that it expects to file its financial statements. The Panel noted in its decision that the company's filing delay does not appear to have been the result of misconduct or malfeasance, and that the company was working diligently to complete its reporting. About IMAX Corp. Headquartered jointly in New York City and Toronto, Canada, IMAX Corporation -- http://www.imax.com/-- (NASDAQ:IMAX; TSX: IMX) is an entertainment technology company, with particular emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully- integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post-production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. * * * As reported in the Troubled Company Reporter on July 4, 2007, Moody's Investors Service downgraded the corporate family rating of IMAX Corporation to Caa1 from B3 and downgraded the rating on its senior unsecured bonds to Caa2 from Caa1. Moody's also downgraded the probability of default rating to Caa1 from B3. Ratings remain under review for further downgrade. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Deutsche Bank Maintains Hold Rating on Firm ----------------------------------------------------------- Deutsche Bank analyst Gareth Jenkins has kept her "hold" rating on Alcatel-Lucent's shares, Newratings.com reports. Newratings.com relates that the target price for Alcatel- Lucent's shares was set at EUR11.50. Ms. Jenkins said in a research note that Alcatel-Lucent would register second quarter earnings per share at EUR0.08. Ms. Jenkins told Newratings.com that "Alcatel-Lucent's EBIT and net income figures may vary significantly from expectations, resulting in short-term volatility in the company's share price." Alcatel-Lucent is "likely to benefit from a transition towards wireline capex in developed markets" and strong "order intake in submarine is expected to lend support" to its margins in the second half of this year, Newratings.com says, citing Deutsche Bank. Alcatel-Lucent's "ongoing headcount reduction" would improve profitability into 2008, Ms. Jenkins told Newratings.com. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BANK INTERNATIONAL: Increases Credits for Small Businesses ---------------------------------------------------------- PT Bank International Indonesia is increasing the amount of its credits for micro and small businesses (UKM) in cooperation with smallholder credit banks (BPR) under a linkage program, Antara News reports. According to the report, the bank's move is part of a strategy to reach the UKM sector and to support efforts being made to strengthen the competitive edge of BPRs based on Indonesian Banks. Through this program, BPRs would gain capital strength in developing their activities in financing the UKMs. BII Commercial and UKM Affairs Director Dira K Mochtar signed Credit Provision Agreement Letters with directors of BPRs, with Bank Indonesia Governor Burhanuddin Abdullah as witness, the report notes. Antara points out that the amount of the credits based on the signed agreement was IDR46.4 billion. The ceiling of the credits that would be provided further to UKMs through the BPR is between IDR500 million and IDR25 billion and they would mature in three to five years. The report says that BII had provided credits for five BPRs in Bekasi, Magelang, Yogyakarta, Solo and Makassar to be channeled to UKMs. Up till May 2007, the number of BPRs under the BII's linkage program had reached 75 with a total initial ceiling of credits worth IDR569.8 billion and outstanding loans totaling IDR342.9 billion, the report adds. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter - Asia Pacific reported on Feb. 6, 2007, that Moody's Investors Service changed the outlook for Bank Internasional Indonesia Tbk's long-term credit ratings to positive from stable. The bank's short-term deposit rating continues to carry a stable outlook while the BFSR remains on review for possible upgrade. The bank's detailed ratings are: issuer/subordinated debt of Ba3/Ba3; foreign currency long-term/short-term deposit of B2/Not Prime; and bank financial strength of E+. Another TCR-AP report on Feb. 1, 2007, said that Fitch Ratings affirmed all the ratings of Bank Internasional as: Long-term foreign Issuer Default rating 'BB-', Short-term rating 'B', National Long-term rating 'AA-(idn)'; Individual 'C/D', and Support '4'. The Outlook for the ratings was revised to Positive from Stable. CANWEST MEDIAWORKS: Debt Reduction Cues Moody's to Hold Ratings --------------------------------------------------------------- Moody's Investors Service affirmed all ratings of CanWest MediaWorks Inc. and CanWest MediaWorks LP following the announcement by CanWest that LP would reduce the amount of its planned debt offerings by about US$130 million related to the privatization of CanWest MediaWorks Income Fund by CanWest. Specifically, the rating action considers that LP's senior subordinated note offering would be reduced by US$250 million to US$400 million, partially offset by an increase in senior secured term loans of US$65 million and a new planned senior subordinated term loan of US$75 million. The outlook remains stable. Ratings Affirmed: CanWest MediaWorks Inc: -- corporate family rating at B1 -- probability of default rating at B1 -- US$760 million senior subordinated notes, due 2012 at B3, LGD 5, 89% -- Speculative grade liquidity rating at SGL-2 CanWest MediaWorks Limited Partnership: -- senior secured rating at Ba1 (LGD 2, 13% from LGD 1, 7%): -- US$250 million senior secured revolver, due 2012 -- US$265 million senior secured term loan A, due 2012 (increased from US$250 million) -- CND$500 million senior secured term loan B, due 2014 (increased from CUS$450 million equivalent) -- US$400 million senior subordinated rating at B2 (LGD 5, 75% from LGD 5, 73% and reduced from US$650 million) About CanWest MediaWorks CanWest MediaWorks Inc. -- http://www.canwestmediaworks.com/-- is a wholly owned subsidiary of CanWest Global Communications Corp, Canada's largest media company. In addition to owning the Global Television Network, CanWest is Canada's largest publisher of daily newspapers, and also owns, operates and/or holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, Web sites and radio networks in Indonesia, Canada, New Zealand, Australia, Singapore, Malaysia, Turkey, the United States and the United Kingdom. HILTON HOTELS: Inks US$26-Bil. Merger Deal with Blackstone Group ---------------------------------------------------------------- Hilton Hotels Corporation entered into a definitive merger agreement with The Blackstone Group's real estate and corporate private equity funds in an all-cash transaction valued at approximately US$26 billion. Under the terms of the agreement, Blackstone will acquire all the outstanding common stock of Hilton for US$47.50 per share. The price represents a premium of 40% over yesterday's closing stock price. Hilton's Board of Directors approved the transaction on July 3, 2007. It is anticipated that the transaction will close during the fourth quarter of 2007; completion is subject to the approval of Hilton's shareholders, as well as other customary closing conditions. A special shareholders meeting will be scheduled at a later date. The acquisition brings together a leading global hospitality company with Blackstone's extensive portfolio of hotels and resorts. Blackstone currently owns more than 100,000 hotel rooms in the U.S. and Europe, ranging from limited service properties such as La Quinta Inns and Suites to LXR Luxury Resorts and Hotels. The LXR collection includes such upscale properties as The Boulders Resort and Spa (Arizona), The El Conquistador Resort (Puerto Rico), The Boca Raton Resort and Club (Florida), The Golden Door Spa (San Diego), and The London NYC (New York). Blackstone's holdings complement Hilton's unparalleled family of brands, which include Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The Waldorf=Astoria Collection. Blackstone intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees and customers. Over the last fifteen years, Blackstone has been the largest private investor in hospitality worldwide and it has a strong track record of reinvesting in its hotel properties. Blackstone has invested approximately US$1 billion in redevelopment capital in its LXR properties over the last three years; it has also grown the La Quinta brand by approximately 45% since its acquisition in January 2006. "Our priority has always been to maximize shareholder value," Stephen F. Bollenbach, Hilton's co-chairman and chief executive officer, said. "Our Board of Directors concluded that this transaction provides compelling value for our shareholders with a significant premium. We are delighted that a company with the resources and reputation of Blackstone fully appreciates the value inherent in our global presence, strong brands, industry leading marketing and technology programs, and unique portfolio of hotel properties." "It is hard to imagine a better strategic fit for us than Hilton with its world-class people, brands and network of hotels," Jonathan Gray, Senior Managing Director, Blackstone, commented. "This transaction is about building the premier global hospitality business. We are committed to investing in the company and working with Hilton's outstanding owners and franchisees to continue to grow and enhance the business." "Blackstone's real estate and corporate private equity funds collaborated on the acquisition of Hilton, demonstrating Blackstone's unique ability to undertake such a transaction," Michael Chae, Senior Managing Director, Blackstone, added. "We look forward to working with Hilton's management team and employees to enhance the value of the company." Blackstone views Hilton as an important strategic investment; no significant divestitures are envisaged as a result of this transaction. The transaction is not contingent on the receipt of financing. Financing commitments have been provided by Bear Stearns, Bank of America, Deutsche Bank, Morgan Stanley and Goldman Sachs. These institutions also served as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone. UBS Investment Bank and Moelis Advisors acted as financial advisors to Hilton, and Sullivan & Cromwell LLP acted as legal advisor to Hilton. About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. HILTON HOTELS: Inks 1st Conrad Management Pact in South America --------------------------------------------------------------- Hilton Hotels Corporation, G&D Developers and Grupo Farall�n disclosed the signing of the Conrad Buenos Aires, the luxury brand's first management agreement in South America. Located in Puerto Madero, this will be the Hilton Family's second property in the expanding district and its fourth development in Argentina, and will include both a hotel and residences. Construction is planned to begin at the end of 2008 and completion is scheduled for late 2010. The 196-guestroom Conrad Buenos Aires and 350-unit +5411 Residences at the Conrad Buenos Aires will be developed by G&D Developers and Grupo Farall�n as part of a mixed-use complex called +5411 Juana Manso Blvd. Hilton Hotels Corporation will operate the hotel under the terms of a multi-year management agreement. "We are thrilled to introduce Conrad Hotels & Resorts in Argentina, and to combine the brand's unique and luxurious elements with the emerging elegance of the Puerto Madero area," Tom Keltner, chief executive officer, Americas and global brands, for Hilton Hotels Corporation, commented. "Argentina's tourism growth continues to deliver opportunities, and we look forward to bringing our fourth hotel development to the country." "We are delighted to have the opportunity to offer a Conrad Hotel as part of the +5411 Development," Daniel Mintzer, who co- founded G&D Developers with Gabriel Mayo, added. "It brings us great pride to partner with Conrad Hotels & Resorts and we are sure the brand's prestige and excellence will strengthen our project." Located in Puerto Madero, the contemporary Conrad Buenos Aires will feature 430-square-foot guestrooms, a signature restaurant, a stylish lobby bar, fitness facilities including a swimming pool, and close to 7,000 square feet of meeting space. Both the hotel and residences will form part of a diverse development project offering over 160,000 square feet of office space, and 54,000 square feet of retail space, as well as underground parking for 1,100 cars. The hotel and residences are a short distance away from the established Hilton Buenos Aires, and 25 minutes from Ministro Pistarini International Airport. "Buenos Aires is a thriving commercial center within South America and we are truly delighted that Conrad will be showcasing the brand in this flourishing destination," Tom Potter, area vice president, South America, for Hilton Hotels Corporation, said. "Both business and leisure travelers to Buenos Aires will be able to experience the luxury of Conrad Hotels & Resorts with its individual style and sophisticated service. Conrad Buenos Aires will appeal to the discerning traveler looking for an exclusive luxury environment where they can truly be themselves." "We are honored that the first Conrad management agreement in South America will be part of our +5411 project," Eduardo Gutierrez, engineer and president of Grupo Farall�n, commented. "Hilton Hotels Corporation will manage the hotel, delivering the Conrad brand's exceptional standards. This addition to +5411 helps us offer excellence in hospitality and satisfy the sophisticated and growing demand in Argentina." Buenos Aires, capital of Argentina and the country's largest city, is the nation's financial, industrial, commercial, and cultural center. Puerto Madero is the most recently renovated neighborhood in Buenos Aires. Previously a forgotten port, the area is now bustling with restaurants, renovated lofts, offices, high-rise residences, and luxury hotels. Tourists can enjoy Puerto Madero's ecological reserve, walks along the Rio de la Plata riverbank, and a floating casino. The city also offers an array of museums, historical buildings, theaters, shopping centers, delectable dining options, and a tantalizing nightlife. Conrad Hotels & Resorts is continuously growing and strengthening its global portfolio and currently has 17 luxury hotels and resorts in leading urban and resort destinations globally. New Conrad Hotels & Resorts are in conversion in the Maldives and under development in Shanghai, Abu Dhabi, Dubai, the Bahamas and Koh Samui. Hilton Hotels Corporation currently manages the Hilton Buenos Aires in Puerto Madero. The company will manage the Hilton Iguazu Resort scheduled to open in Iguazu Falls in late 2008, and the Hilton Ushuaia in the southernmost city of the world, scheduled to open in 2009. About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. INDOFOOD: Sales Up 12% in First Half Noodle Sales ------------------------------------------------- PT Indofood Sukses Makmur Tbk posted over 12% increase in its first-half noodle sales, Reuters reports. According to the report, in the first six months a year ago, flour sales rose 2% due to stronger demand. The company also produced an average of 200 million packs of noodles per week during the first half of 2006. Franciscus Welirang, senior vice president director of the company, said that flour sales volumes, in the first half of 2007 had a 2% increase. For the full year, the company's target is 5-7%, the report says. Reuters adds that Indofood is aiming to boost its annual capacity to 14.5 billion packs from 13.5 billion currently. About Indofood Sukses PT Indofood Sukses Makmur Tbk (Indofood) -- http://www.indofood.co.id/-- is Indonesia's premier processed foods company. Its products, including instant noodles, wheat flour, branded edible oils and fats, baby foods, snack foods, food seasoning, lead domestic market shares. Indofood is currently the largest instant noodles manufacturer and the largest flour miller in the world, with installed capacities of approximately 13 billion packs and 3.6 million tons per annum, respectively. Indofood's products are distributed mainly through its subsidiaries, including Indomarco, independent distributors, as well as some cooperatives, which bring the Company's products to more than 150,000 retail outlets in the country. Total employees as of December 1999 were 42,172. A combination of shrinking profits, escalating costs, losses, competition and a declining rupiah prompted the Company to cut around 2,000 or 4.4% of its workforce and slash 40 products from its range in 2005. In 2005, Indofood's total outstanding debt fell to IDR6.8 trillion from IDR7.9 trillion in 2004. The United States dollar-denominated debts also fell to US$190.6 million in the same period from US$317.4 million in 2004. Indofood has bought back US$166.3 million (IDR1.55 trillion) of its US$280 million (IDR2.61 trillion) Eurobonds due in 2007. The Company also plans to redeem all the outstanding balance of the Eurobonds this year. The Troubled Company Reporter - Asia Pacific reported on July 19, 2006, that Standard & Poor's Ratings Services withdrew its 'B' corporate credit rating on Indofood at the company's request. MCDERMOTT INT'L: Moody's Lifts Corporate Family Rating to Ba3 ------------------------------------------------------------- Moody's Investors Service upgraded the ratings of McDermott International Inc. and its subsidiaries. Moody's raised MII's Corporate Family Rating to Ba3 from B1. Moody's upgraded J. Ray McDermott, S.A.'s CFR to Ba3 from B1, its Probability of Default Rating to B1 from B2 and its senior secured bank facility to Ba2 (LGD-2, 22%) from Ba3 (LGD-2, 24%). The Babcock & Wilcox Company's senior secured bank facility rating was raised to Baa3 (LGD-1, 6%) from Ba2 (LGD-2, 19%). The rating outlook for J. Ray is positive, while the rating outlooks for MII and B&W are both stable. The Corporate Family Ratings upgrades reflect continuing operating and financial performance improvement, greater visibility of near term performance based on growing backlogs, lower leverage with no funded debt at either J. Ray or B&W, and strong liquidity. The ratings are tempered by the inherent cyclicality in both J. Ray's and B&W's businesses, exposure to fixed price contracts and potential event risk arising from MII's growth strategy. J. Ray McDermott J. Ray's improved performance is primarily reflected in the company's higher backlog, which increased US$1 billion to US$4.2 billion at March 31, 2007, from US$3.2 billion at June 30, 2006. Moody's expects J. Ray will continue to benefit from strong fundamentals in the offshore construction market over the near to medium term. J. Ray has added to its backlog while maintaining its disciplined bidding process as shown in its consistent operating margins. The rating upgrade further reflects J. Ray's consistent free cash flow generation -- greater than US$300 million for the twelve months ended March 31, 2007 -- leading to increased cash on its balance sheet while maintaining no funded debt. However, Moody's notes that a substantial amount of its cash will be used to fund the recently announced $260 million Secunda acquisition. The rating upgrade of J. Ray's senior secured credit facility reflects the higher CFR as well as the application of Moody's loss given default methodology. J. Ray's Ba2 secured facility rating benefits from its senior position in the company's capital structure, which is supported by a significant amount of unsecured obligations including trade payables and an underfunded pension. J. Ray's positive outlook reflects the company's substantial backlog and Moody's expectation that it will benefit from continued investment in energy infrastructure, while maintaining the company's disciplined bidding process and low financial leverage. J. Ray could be upgraded through a combination of continued strong operating and financial performance, as reflected in a growing backlog and sustained higher operating margins, increased diversification, and maintaining low leverage while pursuing its growth strategy. Babcock & Wilcox MII's CFR rating upgrade reflects B&W's consistent performance since emerging from bankruptcy in February 2006 and the recent repayment of B&W's US$250 million term loan, resulting in no funded debt. B&W's backlog grew modestly to US$2.3 billion at March 31, 2007, compared to US$1.9 billion at March 31, 2006. About 43% of this backlog is expected to roll-off in the remainder of 2007, providing near term visibility for the company's revenue. B&W should continue to benefit from the favorable business outlook based on expected growth in electrical generation demand and the increased environmental spending requirements of its customers. In April, B&W repaid its US$250 million term loan that had funded a payment obligation to the asbestos settlement trust. All of B&W's financial obligations under the plan of reorganization from its bankruptcy were settled by the end of 2006. Looking forward, leverage and coverage should improve through a combination of MII's plans to fully fund its pensions, which will lower adjusted debt, and modestly growing cash flow. On a standalone basis, Moody's considers B&W's credit quality to be consistent with MII's Ba3 CFR. B&W's Baa3 senior secured rating of its credit facility reflects the application of Moody's loss given default methodology. The secured facility rating benefits from substantial underfunded pension obligations at B&W as well as other companies within the MII family. Moody's expects that this rating uplift will decline over time as MII funds these pensions. About McDermott International Headquartered in Houston Texas, McDermott International, Inc. (NYSE:MDR) -- http://www.mcdermott.com/-- through its subsidiaries, an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott's customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries -- including Indonesia and the United Kingdom -- with more than 20,000 employees. PERTAMINA: Imports 11.6-Million Barrels of Fuel Products in July ---------------------------------------------------------------- PT Pertamina (Persero) will import 11.6 million barrels of fuel products this month, up from an average of 10 million barrels in recent months, Thomson Financial reports. The report relates that Hanung Budya, Pertamina deputy director for marketing, said that they will import more fuel in July to anticipate rising demand as the school holiday season comes to end. Mr. Budya said that Pertamina is expected to import 10.4 million barrels of fuel consisting of 3.4 million barrels of premium gasoline, 5.4-6.0 million barrels of diesel fuel, and 600,000 barrels of kerosene, the report notes. The report adds that the remainder will be fuel oil. About PT Pertamina PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No.31/2003 has changed its legal status from a special state owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, the rest is supplied by imports. In 2003, PT Pertamina finance director Alfred Rohimone disclosed that the Company's financial condition was in critical condition because its expenses had surpassed its income due to its obligation to meet domestic demand with fuel oil bought at higher prices on the international market. Mr. Rohimone stated that with a liquidity position below IDR2 trillion, the Company was already bleeding. Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year. In August 2005, Pertamina's debt to United States firm Karaha Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately. PERUSAHAAN LISTRIK: Launches Tender for Muara Bekasi-Muara ---------------------------------------------------------- PT Perusahaan Listrik Negara has launched a tender offer for the construction of a 7.2-kilometer gas pipeline from Muara Bekasi to its Muara Tawar power plant in West Java, Thomson Financial reports. Tony Agus Mulyantono, PLN's deputy director for primary energy and power plants, said 10 companies have expressed interest to participate in the bidding process. The construction of the gas pipeline is expected to start in September, the report adds. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. PLN posted a IDR4.92-trillion net loss in 2005, against a net loss of IDR2.02 trillion in 2004. The Troubled Company Reporter - Asia Pacific reported on June 19, 2007, that Moody's Investors Service assigned a B1 senior unsecured rating to PT Perusahaan Listrik Negara's proposed U.S. dollar bond issuance. At the same time, Moody's has affirmed PLN's B1 corporate family rating and A1.id national scale rating. The outlook for all the ratings is positive, which is in line with the sovereign's positive outlook. Standard & Poor's Ratings Services also assigned its 'BB-' foreign currency rating and 'BB' local currency rating to PLN. The outlook on the ratings is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed U.S. ollar enior unsecured notes issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. ========= J A P A N ========= CHUO MITSUI: Mitsui Trust to Sell Entire Stake to Affiliate ----------------------------------------------------------- The parent company of Chuo Mitsui Trust and Banking Co. Ltd., Mitsui Trust Holdings Inc., plans to Chuo Mitsui to a Mitsui & Co. affiliate, Kazuhiro Shimamura, of MarketWatch, reports. According to Mr. Shimamura, Mitsui Trust's entire stake in Chuo Mitsui will be sold to its affiliate Mitsui Leasing & Development Ltd., but Mitsui Trust declined to disclose the value of the transaction, which will be completed by the end of July. Chuo Mitsui, writes Mr. Shimamura, will be joining the merger in October between Mitsui Leasing and the leasing unit of Norinchukin Bank, which serves as the main bank for Japan's agricultural, forestry and fishery cooperatives. The Chuo Mitsui Trust and Banking Co. Ltd. -- http://www.chuomitsui.co.jp/-- offers trust banking and commercial banking services such as money, pension, loan, and securities investment trusts. The company also provides financial services such as securities brokerage, leasing, credit cards, asset management, and investment advisory in Japan, the United Kingdom, the United States and Panama. The Troubled Company Reporter - Asia Pacific reported on May 11, 2007, that Moody's Investors Service gave the bank a C- bank financial strength rating. On January 24, 2007, TCR-AP reported that Fitch Ratings gave the bank a C/D individual rating. TEKKEN CORP: R&I Affirms BB+ Rating with a Stable Outlook --------------------------------------------------------- Ratings and Investment Information, Inc., has conducted reviews and affirmed the ratings for Tekken Corp. with a stable outlook. Issuer Rating: BB+; Long-term Issue Rating: BB+ Outlook: Stable Tokyo-based Tekken Corp., -- http://www.tekken.co.jp/-- is primarily engaged in the construction business. The company has four subsidiaries and four associated companies, the Company has three business segments. The Construction segment is engaged in the general construction, special construction, as well as the procurement of construction materials and equipment. The Real Estate segment is involved in the development of housing and land estates. The Others segment is engaged in the management of construction equipment and materials, as well as the operation of sports facilities and golf courses. Headquartered in Tokyo, the Company has four subsidiaries and four associated companies. SENSATA TECHNOLOGIES: Buying Airpax Holdings for US$276 Million --------------------------------------------------------------- Sensata Technologies, Inc. reached a definitive agreement with Chicago Growth Partners and Airpax senior management to acquire Airpax Holdings, Inc., for US$276 million, which is expected to be completed in July. The acquisition includes about 2,800 employees and sales, engineering and production facilities in Cambridge and Frederick, Maryland; White Bear Lake, Minnesota; Oviedo, Florida; and Brownsville, Texas, in the United States; Matamoros, Mexico; Sakado, Japan; and Shanghai, China. Sensata Technologies Chief Executive Officer Tom Wroe said, "This transaction gives us leading customer positions in electrical protection for high-growth network power and critical, high-reliability mobile power applications and further secures Sensata's position as a leading designer and manufacturer of sensing and electrical protection solutions for the residential, industrial, heating, ventilation, air- conditioning, military and mobile markets. The purchase also further expands Sensata's global footprint and offers opportunities for operational synergies across both organizations." Airpax Chief Executive Officer Dennis Karr said, "We are very excited about this opportunity to bring our expertise, experience and resources to another worldwide leader in the controls and sensors arena. Both Airpax and Sensata will benefit from access to an expanded customer base, wider portfolio and the know-how and technical expertise of the combined organization." Airpax Corporation was founded in 1947 in Baltimore, Maryland, and was purchased by North American Phillips Corporation in the 1970s. It was purchased by management and Industrial Growth Partners, a private equity firm, in 1999 and by management, Chicago Growth Partners, and Norwest Equity Partners in 2004. About Airpax Headquartered in Cambridge, Maryland, with facilities around the world, Airpax manufactures customized hydraulic magnetic circuit breakers and certain thermostats and temperature sensors, and is a leading manufacturer of DC to AC inverters, electronic monitoring and control systems, and other sensors. Airpax serves original equipment manufacturers (OEMs) in the telecommunications, industrial, recreational vehicle, heating, ventilation and air-conditioning, refrigeration, marine, military, medical, information processing electronic power supply, power generation, over-the-road trucking, construction, agricultural and alternative energy markets. About Sensata Technologies Headquartered in Attleboro, Massachusetts, Sensata Technologies -- http://www.sensata.com/-- is a supplier of sensors and controls across a range of markets and applications. The company has manufacturing locations in Brazil, Mexico, China, Japan and the Netherlands. Sensata Technologies employs approximately 5,400 people world-wide. * * * As reported in the Troubled Company Reporter on June 20, 2007, Moody's Investors Service affirmed the ratings of Sensata Technologies B.V., but changed the outlook to negative from stable following the company's recent announcement that it intends to acquire Airpax Holdings, Inc. for US$276 million. The company's Speculative Grade Liquidity rating of SGL-2 is unchanged. SENSATA TECHNOLOGIES: S&P Revises Outlook After Airpax Purchase --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Sensata Technologies B.V. to negative from stable. The outlook revision follows the company's announcement that it will acquire Airpax Holdings Inc. for US$276 million plus fees and expenses using a combination of cash and debt. All of S&P's ratings on Sensata, including 'B+' corporate credit rating, have been affirmed. "The acquisition delays the financial deleveraging that Standard & Poor's expects for the ratings," said Standard & Poor's analyst Clarence Smith. The ratings on Attleboro, Mass.-based Sensata continue to reflect its highly leveraged financial profile, which more than offsets its satisfactory business profile. SANYO ELECTRIC: To Increase Lithium-Ion Cells Production by 17% --------------------------------------------------------------- Sanyo Electric Co., Ltd., will increase production capacity of lithium-ion batteries by 17% because of high demand from laptop computers, Yoshinori Eki writes for Bloomberg News. Mr. Eki interviewed Sanyo spokesman Hiroyuki Okamoto who confirmed a report from the Nikkei Business Daily that they will raise production to 70 million units in a month for this fiscal year ending March 31, 2008 and will be spending JPY37 billion on its battery businesses for the current year. Mr. Okamoto revealed to Mr. Eki that a "large" part of the investment will be used for lithium-ion battery production but declined to provide the actual figure. Reportedly, Sanyo is counting on its solar and rechargeable battery units to bolster earnings. The Troubled Company Reporter - Asia Pacific reported on May 30, 2007, that Sanyo posted net sales of JPY2.22 trillion for the fiscal year ended March 31, 2007 as compared from the previous year's JPY2.40 trillion, which is the third year that they reported a net loss. Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. On May 23, 2006, Standard & Poor's Ratings Services affirmed its negative BB long-term corporate credit and BB+ senior unsecured debt ratings on SANYO Electric Co. Ltd. At the same time, the ratings were removed from CreditWatch where they were first placed with negative implications on Sept. 28, 2005. ========= K O R E A ========= ACTUANT CORP: Acquires BH Electronics for US$30 Million ------------------------------------------------------- Actuant Corporation has acquired BH Electronics for US$30 million in cash. Funding for the transaction came from the Company's revolving credit facility. BHE will operate within Actuant's Electrical Segment. Mark Goldstein, Chief Operating Officer of Actuant, stated: "BHE is a great addition to our global marine platform. BHE's strong relationships with major recreational boat builders in the U.S., coupled with the products provided through our existing brands such as Marinco, BEP, Ancor, and Guest, will enable us to further develop our strategy of providing systems solutions to the OEM market. We are also excited about the prospects for introducing BHE's products and solutions to OEMs in other markets where Actuant has a significant presence, such as RV and off-highway vehicles." About BHE Headquartered in Munford, Tennessee, BH Electronics produces dashboard control panels and electronic assembly systems, primarily for the marine market. BHE generated US$35 million in sales in 2006, and has approximately 450 employees. About Actuant Corp. Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU) - - http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries, including Australia, Brazil, China, Hong Kong, Italy, Japan, Taiwan, United Kingdom and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from US$482 million to over US$1 billion and its market capitalization from US$113 million to over US$1.5 billion. The company employs a workforce of approximately 6,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed US$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. ACTUANT CORP: Reports US$29.6 Mil. Net Income in Third Quarter -------------------------------------------------------------- Actuant Corporation reported results for its third quarter ended May 31, 2007. Including restructuring charges, third quarter fiscal 2007 net earnings and diluted earnings per share were US$29.6 million and US$0.95, respectively, compared to prior year net earnings and EPS of US$26.8 million and US$0.86, respectively. Fiscal 2007 third quarter results include a US$0.4 million (US$0.01 per diluted share) charge covering a portion of the Company's previously announced restructuring of its European Electrical business. Fiscal 2006 third quarter results include a US$2.6 million (US$0.08 per diluted share) one-time tax benefit. Excluding the restructuring charge and prior year tax benefit, third quarter EPS increased 23% year- over-year from US$0.78 to US$0.96. Third Quarter 2007 Highlights: * 23% improvement in EPS, excluding restructuring and prior year tax benefit, representing largest quarterly EPS growth of the year. * Record sales of US$385 million, a 22% increase over the prior year. * Strong cash flow resulting in third quarter net debt reduction of US$88 million. Year-to-date free cash flow of US$98 million, a 138% conversion of net income. * Sequential and year-over-year operating profit and EBITDA margin improvement. * Completed acquisition of T.T. Fijnmechanica B.V., broadening the Industrial Segment product offering. * Announced US$250 million Senior Notes offering (completed June 12). Robert Arzbaecher, President and CEO of Actuant commented, "We are pleased with our performance in the third quarter which added to our track record of consistent, profitable growth. With the exception of the expected year-over-year sales decline in the Actuation Systems segment, we saw continued core sales growth in our other three segments. These results reinforce the benefits of Actuant's customer, market and geographic diversification. In addition, acquisitions contributed US$42 million or 13% of the sales improvement in the third quarter and highlight the success of adding to growth opportunities in our existing businesses via acquisitions." Consolidated Results Third quarter sales increased 22% to US$385 million from US$317 million in the prior year, reflecting the combination of core growth, business acquisitions and the weaker US dollar. Excluding the impact of foreign currency rate changes (5%) and acquisitions (13%), core sales growth was 4%. The Industrial Segment once again generated double-digit core sales growth while the Actuation Systems Segment reported a year-over-year sales decline due to prior year convertible top launches and the North American heavy-duty truck pre-buy. The third quarter operating margin was 13.7%, excluding restructuring charges, an increase of 20 basis points versus the prior year resulting from improvements in both gross profit margin and selling, administrative and engineering spending, partially offset by higher acquisition related amortization expense. These improvements reflect the Company's strategic sourcing and Lean Enterprise Across Discipline (LEAD) activities. Sales for the nine months ended May 31, 2007 were US$1.069 billion, or 22% higher than the US$877 million in the comparable prior year period. Excluding the impact of foreign currency rate changes and sales from acquired businesses, core sales increased 7%. Earnings for the nine months ended May 31, 2007, excluding the restructuring charge, rose 19% to US$77.1 million, or US$2.48 per diluted share, compared to US$64.8 million, or US$2.11 for the comparable prior year period (excluding the tax benefit). Year-to-date fiscal 2007 results include US$0.10 per diluted share of European Electrical restructuring charges while fiscal 2006 included an US$0.08 favorable tax adjustment (see attached reconciliation of earnings). Third quarter fiscal 2007 Industrial Segment sales increased 36% to US$113 million, resulting from increased demand, the weaker US dollar and sales from acquired businesses. Excluding currency translation and sales from acquired businesses, Industrial Segment sales increased approximately 15% from the comparable prior year period, driven by continued strong demand in both the high-force hydraulic tool and joint integrity product lines. Third quarter operating profit margins expanded 370 basis points to 29.3% due primarily to the benefit of higher volume and operating efficiencies. Fiscal 2007 third quarter Electrical Segment sales increased 17% to US$128 million, reflecting 3% core sales growth, favorable foreign currency exchange rate changes and the August 2006 acquisition of Actown. The Electrical Segment operating profit margin declined from 10.2% in the third quarter of fiscal 2006 to 8.1% in fiscal 2007, excluding restructuring charges, primarily due to restructuring related inefficiencies in the European Electrical operations, product buyback and reset costs and unfavorable sales and acquisition mix. The company expects to substantially complete the previously announced restructuring of its European Electrical operations by the end of calendar 2007. Fiscal 2007 third quarter Engineered Products Segment sales more than doubled to US$32.9 million reflecting both 5% core sales growth and the acquisition of Maxima in December 2006. Operating profit increased to US$4.3 million from US$2.1 million while margins declined 120 basis points. Financial Position Quarter-end net debt (total debt of US$555 million less US$74 million of cash) was US$481 million, a decrease of US$88 million from the beginning of the quarter. Actuant's free cash flow in the quarter was approximately US$92 million driven by strong earnings conversion, improved working capital management and the timing of certain cash payments. Approximately US$23 million of cash was used in business acquisitions which nearly offset the US$20 million increase in accounts receivable securitization proceeds in the quarter. Outlook The Company updated its fiscal year 2007 guidance to reflect both the TTF acquisition and third quarter results. Full year fiscal 2007 EPS is expected to be in the range of US$3.38-3.43 (excluding European Electrical restructuring charges) on sales of US$1.430-1.440 billion. Fourth quarter EPS (excluding restructuring charges) is projected to be in the US$0.90-0.95 range. Actuant also provided its preliminary outlook for fiscal 2008, which reflects the continued execution of its dual strategy of organic growth and tuck-in business acquisitions. The company is targeting approximately 10-15% EPS growth (excluding future acquisitions), above the mid-point of its fiscal 2007 EPS guidance. Diluted EPS is projected to be in the US$3.70-3.90 range, excluding European Electrical restructuring charges. The company currently anticipates that next year's sales will be in the US$1.530-1.550 billion range, an increase of 6-8% over fiscal 2007. Mr. Arzbaecher commented, "We are very pleased with the way fiscal 2007 has developed and expect 2008 to follow a similar pattern. Our 2007 EPS guidance from last June anticipated 9-14% growth because, similar to our preliminary 2008 guidance, it didn't include the benefit of future acquisitions. As a result of acquisitions and base business performance, fiscal 2007 EPS is currently forecasted to grow 17-18% above the prior year. We are excited about the prospects for the upcoming year. There are growth opportunities in all our segments and the pipeline for additional acquisitions remains very active. Our focus on LEAD, including Asian sourcing, will continue to drive margin enhancement opportunities. We expect continued strong performance in 2008." About Actuant Corp. Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU) - - http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries, including Australia, Brazil, China, Hong Kong, Italy, Japan, Taiwan, United Kingdom and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from US$482 million to over US$1 billion and its market capitalization from US$113 million to over US$1.5 billion. The company employs a workforce of approximately 6,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed US$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. ACTUANT CORP: Promotes Mark Goldstein as Chief Operating Officer ---------------------------------------------------------------- Actuant Corporation has promoted Mark Goldstein to the newly created position of Chief Operating Officer. Prior to this appointment, Mr. Goldstein was serving as Executive Vice President, Tools & Supplies. He will continue to report to Robert Arzbaecher, Actuant's Chief Executive Officer. Mr. Goldstein will be responsible for managing the company's four business segments, taking advantage of the existing synergies among them, maximizing their contribution to the company's results and identifying and developing profitable organic and acquisition growth opportunities. Mr. Arzbaecher stated, "We are immensely proud of Actuant's success since it's spin-off in August 2000. We've grown our sales from under US$500 million to US$1.4 billion for fiscal 2007. In our quest to continue our track record of profitable growth long into the future, I recognized the need to create the Chief Operating Officer role to support me in managing the complexity that results from our diversified business model. Mark has played an instrumental role in providing strategic insights, operational focus and team-building skills to the Tools & Supplies businesses over the past six years and I look forward to working with him to extend those proven leadership capabilities across the entire organization." Mr. Goldstein joined Actuant in 2001 as President of Gardner Bender and was promoted to Executive Vice President of Tools & Supplies in January 2003. He joined Actuant from The Stanley Works where he spent 22 years, both in Stanley Tools as well as Stanley Door Systems. He holds a Bachelors Degree in Economics from the University of Rochester (New York). About Actuant Corp. Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU) - - http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries, including Australia, Brazil, China, Hong Kong, Italy, Japan, Taiwan, United Kingdom and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from US$482 million to over US$1 billion and its market capitalization from US$113 million to over US$1.5 billion. The company employs a workforce of approximately 6,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed US$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. =============== M A L A Y S I A =============== SELOGA HOLDINGS: Securities Commission Rejects Reform Proposals --------------------------------------------------------------- Seloga Holdings Bhd informed the Bursa Malaysia Securities Bhd that the Securities Commission had rejected its reform plan proposals. In a letter addressed to the company, the commission cited these reasons, which leads to its decision to reject the proposals: (i) Uncertainty over the viability of the new business of manufacturing of bitumen/asphalt due to: (a) the continuous delay in the commencement of commercial production, which may potentially impact the overall future financial position of SHB. The new business is expected to play a crucial role in regularizing SHB's financial position; (b) the possibility that the delay in commencement of commercial production may result in the termination of the existing supply agreement. Moreover, nothing concrete has surfaced on the alternative plans by Kemaman Bitumen Company Sdn Bhd to use other substitute crude oil/supplier; (c) uncertainty as to whether KBC, a newly start-up company, would be able to make in-roads into the market; and (d) the dependency on a single customer. (ii) Concern over the viability of the property development business due to: (a) the Taman Nusantara project being undertaken by its wholly owned subsidiary, Infra Expert Development Sdn Bhd, which is loss making based on its past financial statements; (b) the project being only 10% completed as at Dec. 28, 2006; and (c) the substantial decrease in the consideration for the acquisition of IED raising concern on the viability of the project. (iii) Substantial accumulated losses remaining post restructuring. After the Proposals, SHB would still have remaining accumulated losses which will take a number of years for SHB to eliminate, assuming the same level of profits are maintained. Headquartered in Selangor Darul Ehsan, Malaysia, Seloga Holdings Berhad's -- http://www.seloga.com.my/-- principal activities are the provision of civil engineering contracting services, property development, provision of insurance agency services and investment holding. Other activities include mechanical and electrical engineering contracting services and manufacture of timber moldings. The Group operates predominantly in Malaysia. The company is currently classified under the PN-17 list of Companies under the Bursa Malaysia Securities Bhd. SUREMAX GROUP: Lat Infrabina Claims MYR44 Mil. Judgment Payment --------------------------------------------------------------- Suremax Group Bhd diclsoed with the Bursa Malaysia Securities Bhd that its subsidiary, Suremax Land Sdn Bhd, received on July 4, 2007, a summon and a statement of claim from Lat Infrabina Enterprise for the amount of MYR44.76 million. The summon and the statement of claim were both dated June 15, 2007. With the amount, Lat Infabina also claims: -- interest on the amount owing/accrued at the rate of 1.5% per month from September 13, 2004, until full settlement; -- interest on the judgment amount at the rate of 1.5% per annum from the date of judgment until full settlement; -- cost of the action; and -- other relief or further relief as the Honorable Court deems reasonable and just. The summons has been fixed for mention on September 20, 2007. Suremax maintains that there is no material financial impact on the group arising from the summons, however, the company said it will seek legal advice from its Solicitors on the next course of action. Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad engaged in property development, construction, trading in construction materials,and sub-contracting works. The firm's other activities include the provision of property management services and building construction. The Group is also involved in the manufacture and sale of ready mixed concrete. Going Concern On May 16, 2006, the Troubled Company Reporter - Asia Pacific reported that Suremax's audited financial statements for the year ended August 31, 2005, contained the company's auditors' modified opinion with emphasis on its ability to continue as a going concern. Furthermore, the TCR-AP added that based on the company's six-month period accounts to February 28, 2006, Suremax's shareholders' equity on a consolidated basis is less than 50% of its issued and paid-up capital. Accordingly, Suremax become an affected listed issuer of the Bursa Securities' Amended Practice Note 17 category, and is therefore required to implement a plan to regularize its financial condition. SUREMAX GROUP: RHB Bank Quits Reform Adviser Post ------------------------------------------------- RHB Investment Bank Bhd terminated its services on June 28, 2007, acting as Suremax Group Bhd's adviser for the proposed restructuring scheme. In a disclosure with the Bursa Malaysia Securities Bhd, Suremax said that the termination was mutually agreed and it will be served with immediate effect. Suremax added that it is now in the process of finalizing the procurement of services of another adviser to advise on the Proposed Restructuring Scheme. As reported by the Troubled Company Reporter - Asia Pacific, on June 7, 2007, the Bursa Securities said it will delist and remove the securities of Suremax after it failed to submit its regularization plan to approving authorities on May 31, 2007. Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad engaged in property development, construction, trading in construction materials,and sub-contracting works. The firm's other activities include the provision of property management services and building construction. The Group is also involved in the manufacture and sale of ready mixed concrete. Going Concern On May 16, 2006, the Troubled Company Reporter - Asia Pacific reported that Suremax's audited financial statements for the year ended August 31, 2005, contained the company's auditors' modified opinion with emphasis on its ability to continue as a going concern. Furthermore, the TCR-AP added that based on the company's six-month period accounts to February 28, 2006, Suremax's shareholders' equity on a consolidated basis is less than 50% of its issued and paid-up capital. Accordingly, Suremax become an affected listed issuer of the Bursa Securities' Amended Practice Note 17 category, and is therefore required to implement a plan to regularize its financial condition. TAP RESOURCES: Securities Commission Junks Restructuring Plan ------------------------------------------------------------- The Securities Commission rejected Tap Resources Bhd's application for implementation of the reform plan proposals, which application was on July 3, 2007. According to the company's disclosure with the Bursa Malaysia Securities Bhd, the bases of rejection given by the Securities Commission are: 1) Uncertainty over the future viability of TAP's core business; 2) Uncertainty over the ability of the current management to turn around TAP; 3) Uncertainty over the future direction of TAP arising from the possible emergence of new substantial shareholders; and 4) Significant on-going litigations against TAP. The Troubled Company Reporter - Asia Pacific reported on Feb. 12, 2007, the various proposals Tap Resources wants to undertake in its restructuring plan. The company's regularization plan involves: * liquidation or disposal of certain subsidiaries; * debt settlement with various creditors of Tap Construction; * TCSB's capital reduction of the issued and paid-up share capital; * capital reduction involving reduction of the existing issued and paid-up share capital; * renounceable rights issue; * private placement of new TAP shares; * restructuring of debts of RCLS holders; and * amendment to the Memorandum and Articles of Association. Based on Tap Resources' proposals, certain subsidiaries are facing liquidation as these subsidiaries have either ceased or wound down their respective businesses. The subsidiaries to face liquidations are: -- Tap Builders Sdn Bhd; -- Tanco Properties (North) Sdn Bhd; -- Mech-E Engineering & Trading Sdn Bhd; and -- Sumbangan Tiara Sdn Bhd These subsidiaries have a negative or minimal shareholders' funds position and therefore will not have any material surplus arising from such liquidation, the company said. Meanwhile, Tap Resources also proposed to settle the debts of Tap Construction Sdn Bhd, a wholly owned subsidiary, through TCSB S176 Scheme. According to the company, Tap Construction's total known debts as of Oct. 31, 2006, stood at MYR126,567,556. Of the total debt, MYR117,978,197 is owed by Tap Construction to Tap Resources while another MYR3,106,976 is owed by Tap Construction to the Inland Revenue Board. Under the proposed TCSB S176 Scheme, the amount owed to the IRB is proposed to be paid in full in cash -- subject to the outcome of an appeal being made by TCSB against IRB -- while all other debts will be converted into equity where every MYR1 of debt will be settled in full by the issuance of new ordinary shares of M1.00 each. In addition, TCSB will reduce its issued and paid up share capital and the credit arising from the reduction will be used to offset its accumulated losses as at October 31, 2006. Accordingly, the board of Tap Resources will undertake a write- off of certain fixed assets of its unit by 60% of its existing net book value. The write-offs, based on the estimated valuation of assets, will result in an impairment from MYR51,414,140 to MYR20,565,656. Moreover, Tap Resources also proposes to implement a capital reduction exercise involving a reduction of the existing issued and paid-up share capital from MYR109,155,805 comprising 109,155,805 ordinary shares to MYR10,915,580 comprising 109,155,805 ordinary shares, by way of reducing the par value of each share to RM0.10. The credit of MYR98,240,225 arising from the capital reduction will be utilized to reduce part of the accumulated losses of the company, which stood at MYR161,385,037 as of April 31, 2006. Tap Resources also proposes to reduce the entire amount of MYR21,142,802 standing in its share premium account based on the latest audited financial statements as at April 30, 2006, to set off the its accumulated losses. Meanwhile, Tap Resources' proposed rights issue involves the renounceable rights issue of 54,577,902 Right Share on the basis of one Rights Share for every two TAP Shares held after the Proposed Capital Reduction, together with one free warrant for every Rights Share subscribed. Tap Resources will also undertake private placement involving the issuance of up to 50,000,000 new TAP Shares at an issue price to be determined later. Lastly, Tap Resources proposes to restructure its MYR33,088,053 debts owing on the redemption of its outstanding RCSLS together with outstanding interests through: a. Conversion of MYR6,000,000 outstanding on the nominal value of RCSLS held by ABB into a three-year term loan and on terms to be agreed between the Company and the lender; b. Settlement of MYR27,088,053 outstanding on the nominal value of RCSLS via the issuance of 270,880,530 new TAP Shares of MYR0.10 at par; and c. The balance of the debt, together with all interest, penalties and other charges accruing after the Cut-off Date will be completely waived. The company added that in the event that the Proposed Debt Restructuring results in any of the Lenders obtaining more than 33% of the voting shares in TAP, a waiver will be sought for such Lender from the requirement to undertake a mandatory general offer in accordance with the provisions of the Malaysian Code on Take-overs and Mergers, 1998. About the Company TAP Resources Berhad is principally engaged in property development. Its other activities include general contracting; manufacturing and general trading of building materials, construction chemicals, ready mixed concrete and non-baked bricks; installing air-conditioners, process control and switch gear automation; selling of electrical goods; and investment holding. The Group operates wholly in Malaysia. The company is classified under the PN17 category because, for the nine months ended January 31, 2006, its shareholders' equity on a consolidated basis is equal to or less than 25% of the issued and paid up capital of the Company and such shareholders equity is less than the minimum issued and paid up capital as required under paragraph 8.16A (1) of the Listing Requirements of Bursa Malaysia Securities Berhad, plus it has a default in payments and is unable to provide a solvency declaration. SOLUTIA INC: Wants Monsanto and Retiree Settlement Pacts Okayed --------------------------------------------------------------- Solutia Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to approve: (i) a settlement among Solutia, Monsanto Company, Pharmacia Corporation, the Official Committee of Unsecured Creditors, the Official Committee of Retirees, and the Ad Hoc Trade Committee; and (ii) a settlement among Solutia, Monsanto, the Retirees' Committee, and the Creditors Committee. Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York, relates that the Monsanto Settlement achieves the overriding goal of Solutia's reorganization -- the permanent reallocation of significant legacy liabilities arising from the 1997 spin off. Monsanto assumes all of Solutia's legacy tort liabilities and a substantial portion of its environmental liabilities. By removing the cloud of the legacy liabilities, the Monsanto Settlement will enhance creditor recoveries, materially improve Solutia's future prospects, preserves crucial commercial relationships with Monsanto and pave the way to a successful reorganization, Mr. Henes says. The proposed Monsanto Settlement achieves as much or more than Solutia could achieve by litigating to an improbable victory without the huge risks, uncertainties, delays and expense that the litigation would visit on Solutia's estates and creditors, Mr. Henes points out. Solutia's relationship with Monsanto has always been a critical part of its business, Mr. Henes tells Judge Beatty. Under the Monsanto Settlement, Monsanto has agreed to extend a master operating agreement for an additional three years through 2020. The Master Operating Agreement provides for Solutia to be "guest" at certain Monsanto-owned facilities that are critical to Solutia's businesses. It also enables Solutia to obtain discounted raw materials and other efficiencies that help improve Solutia's profitability, Mr. Henes informs the Court. The Master Operating Agreement and other important commercial agreements are preserved under the Monsanto Settlement. Conversely, without the Monsanto Settlement, protracted and acrimonious litigation would materially and perhaps permanently impair these agreements and relationships, Mr. Henes maintains. The Monsanto Settlement provides that: (1) Monsanto will be responsible for all alleged legacy tort liabilities. Monsanto has agreed to be responsible for all past and future tort claims related to conduct that occurred before the spin-off. Solutia currently estimates that the ultimate liability for these asserted claims will range between US$15,000,000 and 40,000,000, not accounting for future claims that could be asserted for pre-spin conduct, hundreds of additional lawsuits asserting thousands of claims that have been commenced against Monsanto. (2) Monsanto will assume significant environmental legacy liabilities that arise from sites owned by Old Monsanto but never owned by Solutia, which Solutia estimates will remove approximately US$150,000,000 worth of complex environmental claims from its estates. Monsanto will also be responsible for the remediation of dioxin contamination in the Kanawha River and surrounding areas. (3) Solutia will be responsible for environmental legacy liabilities that arise from sites it has owned and operated following the spin-off, with the remediation costs Solutia expects to reach US$82,000,000 over the next five years. (4) Solutia and Monsanto will share environmental liabilities that arise from sites that were never owned or operated by Solutia but which have been affected by historical contamination from Solutia-owned plants located in Anniston, Alabama and Sauget, Illinois. Costs for the Shared Sites will be allocated in this manner: -- The first US$50,000,000 will be paid through Funding Co., a special purpose limited liability company under the Plan that will be funded with proceeds from the rights offering; -- The next US$50,000,000 will be paid by Monsanto, less costs it has incurred for remediation of the Shared Sites during Solutia's Chapter 11 cases; -- Solutia will be responsible for the next US$325,000,000 in costs for Shared Sites. Solutia, however, has the option to cap its annual costs at US$30,000,000 per year and have Monsanto bear excess remediation costs to improve reorganized Solutia's liquidity and cash flow; and -- After US$425,000,000, Solutia and Monsanto will split evenly all costs for Shared Sites. The Retiree Settlement preserves post-employment medical and other benefits for Solutia's 20,000 retirees, establishes a trust funded with US$175,000,000 in cash to assure the payment of the benefits, and will save Solutia approximately US$110,000,000 in consensual benefit modifications. The Retiree Settlement is conditioned upon, and made possible only as a result of, Monsanto's assumption of legacy liabilities as part of the Monsanto Settlement. The Retiree Settlement provides: (A) Creation of the Retiree Trust. On the effective date, Solutia will contribute US$175,000,000 in cash proceeds from the rights offering to a retiree trust. The trust will satisfy reorganized Solutia's continued payment of modified and life insurance benefits for pre-spin retirees. (B) Modifications to Medical Benefits. Reorganized Solutia can limit the amount it pays each year for retiree medical expenses, change deductibles and prescription drug co- payments and cap the benefits paid to individual retirees after the age of 65. (C) Modifications to Life Insurance Benefits. Life insurance benefits have been capped for employees who retired before December 31, 2001, and eliminated for those who retired after that date. (D) Retiree Claim. The retirees will receive an allowed, non- priority unsecured claim in the aggregate amount of US$35,000,000. The recovery on account of the Retiree Claim will be contributed to the retiree trust and used solely to reimburse Solutia for its payment of benefits for pre-spin and post-spin retirees. (E) Retiree Release. The retirees have agreed to release Solutia, Monsanto and Pharmacia, any employee benefit plans of Monsanto or Pharmacia and their respective representatives, affiliates and successors from all claims related to "retiree benefits." The Settlements' release and injunction provisions are narrowly tailored to preserve the rights of parties with claims being assumed by Monsanto and are only designed to provide finality for Monsanto on the liabilities Solutia is retaining. The Settlements do not afford "blanket immunity" to Monsanto or Pharmacia. The retirees have consented to the releases even though they restrict the Retirees' rights, Mr. Henes avers. In addition, Pharmacia has agreed to release Solutia from any prepetition obligations, to waive its claim in the Chapter 11 cases, and to receive no distributions under the Plan. As consideration, Pharmacia will receive limited releases from and injunctions against any and all claims relating to Solutia or the legacy liabilities retained by Solutia. Monsanto, according to Mr. Henes, has agreed to reasonable consideration in exchange for its contributions and in satisfaction of its claim. Monsanto asserts at least US$825,000,000 in claims against the Debtors' estates, including (1) US$215,900,000 that Monsanto has spent for legacy liabilities from the Petition Date through May 31, 2007; (2) US$179,000,000 that Monsanto estimates it will spend in the future on environmental and tort liabilities under the Monsanto Settlement; and (3) US$428,700,000 that Monsanto spent to settle the Anniston litigation. In satisfaction of its claim and based on its contributions, Monsanto will receive 20% of Reorganized Solutia's stock, which Solutia estimates will be worth approximately US$240,000,000 at the mid-point of total enterprise value. Additionally, consistent with the proposed allocation of legacy liabilities, Monsanto will have an administrative claim for all amounts it has spent on (a) Retained Sites and (b) environmental liabilities in excess of US$50,000,000 at the Shared sites. Solutia has also agreed to pay reasonable fees and expenses incurred by Monsanto's professionals for work related to the Chapter 11 cases, capped at the aggregate fees of the Creditors Committee's professionals. Finally, subject to its assumption of liability relating to certain of the legacy tort and environmental claims, Monsanto will receive releases from and injunctions against claims relating to Solutia or the legacy liabilities retained by Solutia. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Court is set to consider approval of the Disclosure Statement describing Solutia's First Amended Reorganization Plan on July 10, 2007. The Debtors' exclusive period to file a plan expires on July 30, 2007. (Solutia Bankruptcy News, Issue No. 91; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Bank of New York Balks at Amended Plan --------------------------------------------------- The Bank of New York, as indenture trustee for the 11.25% senior secured notes due 2009 issued by Solutia Inc. or its predecessor, filed a statement with the U.S. Bankruptcy Court for the Southern District of New York regarding the treatment of Senior Secured Noteholders' claims under Solutia Inc. and its debtor-affiliates' Amended Joint Plan of Reorganization. The Bank relates that for the past three and a half years, the Debtors and the holders of the Senior Secured Notes have co- existed in relative peace. "Now, however, with the prospect of emergence from Chapter 11 on the horizon, the Debtors, obviously at the behest of certain constituents, have elected to breach the peace and declare war on the Senior Secured Noteholders," John K. Cunningham, Esq., at White & Case LLP, in Miami, Florida, contends. The Official Committee of Unsecured Creditors has attempted to suddenly block any payment of the Senior Secured Notes Trustee's legal fees in contravention of a certain cash collateral order. The Debtors have filed an objection to the Senior Secured Notes Trustee's claim contending that the allowable amount of the claim does not include the stated principal amount of US$223,000,000 set forth in the Senior Secured Notes, but rather is allegedly limited to a lesser amount based upon a novel argument of "amortized original issue discount" in the Senior Secured Notes, Mr. Cunningham states. "The Debtors' new theory of allowance, which is totally unsupported by any existing case law or the Bankruptcy Code, is that an oversecured creditor who takes an interest bearing note at par is to be treated differently in bankruptcy than one who takes a note at a discounted to par, but with a lower interest rate," Mr. Cunningham tells the Court. Mr. Cunningham insists that without a resolution of the instant dispute and a consensual allowance of a claim amount on the Senior Secured Notes, the First Amended Joint Plan of Reorganization contains a fundamental incurable defect that solicitation of the Plan needs to be denied outright. The Debtors have chosen to treat the claims of the Senior Secured Noteholders as unimpaired and therefore, not entitled to vote at any of the estates where their secured claims lie. Mr. Cunningham points out that the Debtors' positions with respect to non-impairment under the Plan are inherently inconsistent and unsupportable by the facts and law. Section 1124 of the Bankruptcy Code expressly provides that the Debtors' failure to reinstate the Senior Secured Notes under the Plan renders the notes impaired and, thus, entitles the Senior Secured Noteholders to vote on, and object to, the Plan. The Disclosure Statement also fails to satisfy Section 1125 in several material respects with respect to its description of the Senior Secured Notes Trustee's claim, Mr. Cunningham notes. Mr. Cunningham asserts that because the Plan will have to be re- solicited if the Court later agrees that the claims of the Senior Secured Noteholders are impaired, solicitation of the Plan should be denied at this time. In the alternative, to avoid utter and complete waste, in the event that the Court were otherwise inclined to approve the disclosure statement, before permitting solicitation, the Court should determine whether the treatment of the Senior Secured Noteholders' claims proposed by the Debtors satisfies the requirements of Section 1124, he adds. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Court is set to consider approval of the Disclosure Statement describing Solutia's First Amended Reorganization Plan on July 10, 2007. The Debtors' exclusive period to file a plan expires on July 30, 2007. (Solutia Bankruptcy News, Issue No. 91; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). VANGUARD CAR: S&P Retains Positive Watch on B+ Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said that its ratings on Vanguard Car Rental USA Holdings Inc., including the 'B+' corporate credit rating, remain on CreditWatch with positive implications, where they were placed on April 2, 2007. "We expect Vanguard to be acquired in the near future by Enterprise Rent-A-Car Co. [BBB/Stable/A-2]," said Standard & Poor's credit analyst Betsy Snyder. "When the acquisition is completed, we expect to equalize the corporate credit rating on Vanguard with the Enterprise rating." Enterprise has already received approval for the acquisition by the U.S. regulatory authority, and is still awaiting approval by the Canadian regulatory authority. Ratings on the $975 million secured credit facility, Vanguard's only rated corporate debt, are expected to be withdrawn when that facility is paid off at the time of the acquisition. Headquartered in Tulsa, Oklahoma, Vanguard Car Rental Holdings LLC -- http://www.vanguardcar.com/-- is a car rental company operator of the National Car Rental and Alamo Rent A Car brands. It has more than 3,200 locations in 83 countries, including the United States, Canada, Mexico, Europe, the Caribbean, Latin America, Hong Kong, Malaysia, the Pacific Rim, Africa, the Middle East and Australia. ==================== N E W Z E A L A N D ==================== AIHP LTD: Fixes Sept. 11 as Last Day to File Claims --------------------------------------------------- On May 31, 2007, David Murray Blanchett and Vivian Judith Fatupaito were appointed as liquidators of AIHP Ltd. The Liquidators fixed Sept. 11, 2007, as the last day for creditors to file their proofs of debt. The Liquidators can be reached at: David Murray Blanchett Vivian Judith Fatupaito C/o PricewaterhouseCoopers Corner of Bryce and Anglesea Streets PO Box 191, Hamilton New Zealand Telephone:(07) 838 3838 Facsimile:(07) 839 4178 BRIDGECORP LIMITED: Placed in Receivership ------------------------------------------ Bridgecorp Ltd has been placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. In that regard, John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. According to couriermail.com.au, Bridgecorp owes around 1,800 New Zealand investors about NZ$500 million. Subsequently, Bridgecorp's Australian arm was placed into voluntary administration, the news agency added. The receivers have set up a Web site -- http://www.pwc.com/nz/Bridgecorp-- to provide information for investors on frequently asked questions. CENTRAL DISTRICTS: Appoints Brown and Rodewald as Liquidators ------------------------------------------------------------- Kenneth Peter Brown and Thomas Lee Rodewald were appointed as liquidators of Central Districts Motorcycles (2003) Ltd. on May 30, 2007. The Liquidators can be reached at: Kenneth Peter Brown Thomas Lee Rodewald c/o Rodewald Hart Brown Limited 127 Durham Street PO Box 13380, Tauranga New Zealand Telephone:(07) 571 6280 Website: http://www.rhb.co.nz FLETCHER BUILDING: Completes Acquisition of Formica Corp. --------------------------------------------------------- Fletcher Building Limited completed the acquisition of United- States based Formica Corporation on July 2, 2007, a regulatory filing with the New Zealand Stock Exchange says. As reported by the Troubled Company Reporter - Asia Pacific on May 23, 2007, Fletcher Building acquired Formica for US$700 million plus deferred payments of up to US$50 million from private equity investors Cerberus Capital Management, L.P. and Oaktree Capital Management, LLC. The acquisition price reportedly was 7.2 times the enterprise value to Earnings Before Interest, Tax, Depreciation and Amortization in 2008. On a normalized basis before synergies, Fletcher estimates Formica's EBITDA for the year to June 2008 to be around US$94 million. Fletcher Building and Formica believes the acquisition represents growth opportunities for both firms. "Our goal has been to establish an ownership structure that will allow us to build upon our success and continue to invest in and grow the business, and our people," said Frank Riddick, President and Chief Executive Officer of Formica. Mr. Riddick b believes the combination of the two companies' Laminex businesses will create the largest global manufacturer of decorative surfaces and high-pressure laminates in the world. Formica does not expect the new ownership to have a significant impact on day-to-day operations, the acquired company said in a media release. In the near term, Formica will be structured as a business unit within the Fletcher Building Laminates & Panels division. Frank Riddick will remain as President and Chief Executive Officer of Formica and the management team will remain with the company. The sellers will retain Formica's South America operations and certain real estate in California. About Formica Cincinnati, Ohio-based Formica Corp. -- http://www.formica.com/ -- designs, manufactures and distributes a full range of surfacing products for commercial and residential applications, including Formica(R) Brand Laminate, Formica(R) Solid Surfacing, Formica Granite(R), Formica(R) Stone Natural Quartz Surfacing, Formica(R) Veneer Premium Wood Surfacing and Formica(R) DecoMetal. The company has offices in Mexico, Spain, Sweden, United Kingdom, Finland, France, Italy, Russia, China, Hong Kong, Singapore, Taiwan, and Thailand. * * * As reported in the Troubled Company Reporter-Europe on Oct. 13, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the Building Products sector, the rating agency confirmed its B2 Corporate Family Rating for Formica Corp. Additionally, Moody's revised its probability-of- default ratings and assigned loss-given-default ratings on these loans: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$60m Gtd. Sr. Sec. Revolving Credit Facility B2 B1 LGD3 42% US$210m Gtd. Sr. Sec. Term Loan B2 B1 LGD3 42% About Fletcher Building Headquartered in Penrose, New Zealand, Fletcher Building Limited -- http://www.fletcherbuilding.com/-- is the holding company of the Fletcher Building group. The operating segments of the Company include the Building Products division; the Infrastructure division, and the Laminates & Panels division. The Building Products division comprises six business streams, including insulation, metal roof tiles, roll-forming and coatings, long steel, plasterboard and a single businesses stream comprising four business units. The Infrastructure division is an integrated manufacturer of cement, aggregates, ready mix concrete and concrete products. It is also a general contractor and residential house builder in New Zealand and the South Pacific. The Laminates & Panels division manufactures and sells high pressure and low-pressure decorative surface laminates, raw medium density fiberboard, particle board and kitchen components. It distributes other products, such as hardware and timber in some regions. The company acquired the Dunedin-based O'Brien's Group on May 1, 2006. The Troubled Company Reporter - Asia Pacific, on July 3, 2007, listed Fletcher Building's bonds as distressed. The bonds have the following coupon and maturity dates: Coupon Maturity ------ -------- 8.600% 03/15/08 7.800% 03/15/09 7.550% 03/15/11 HIVE NET: Shareholders Agree on Liquidation ------------------------------------------- The shareholders of Hive Net Ltd. met on May 31, 2007, and agreed to liquidate the company's business. Peter Reginald Jollands and Rory Iain Grieve the appointed liquidators, fix July 13, 2007, as the last day for creditors to file their claims. The Liquidators can be reached at: Peter Reginald Jollands Rory Iain Grieve Jollands Callander, Accountants and Insolvency Practitioners Administrator House, Level 8 44 Anzac Avenue, Auckland New Zealand Website: http://www.jollandscallander.co.nz K & D CAMPBELL: Shareholders Resolve to Close Business ------------------------------------------------------ The shareholders of K & D Campbell Ltd. met on May 30, 2007, and resolved to close the company's business. Kiran Dutt was appointed as liquidator. The Liquidator can be reached at: Kiran Dutt PO Box 9687, Newmarket Auckland New Zealand Telephone:(09) 630 3808 Facsimile:(09) 630 3970 KATO LOGGING: Court to Hear Wind-Up Petition on July 9 ------------------------------------------------------ The High Court of Rotorua will hear a petition to wind up the operations of Kato Logging Ltd. on July 9, 2007, at 10:45 a.m. The petition was filed by the Commissioner of Inland Revenue on May 25, 2007. The CIR's solicitor is: Kay S. Morgan c/o 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0373 NOAH'S ARK: Taps Brown and Rodewald as Liquidators -------------------------------------------------- On May 31, 2007, Kenneth Peter Brown and Thomas Lee Rodewald were appointed as liquidators of Noah's Ark Pets Limited. The Liquidators can be reached at: Kenneth Peter Brown Thomas Lee Rodewald c/o Rodewald Hart Brown Limited 127 Durham Street PO Box 13380, Tauranga New Zealand Telephone:(07) 571 6280 Website: http://www.rhb.co.nz PIBON HOLDINGS: Commences Liquidation Proceedings ------------------------------------------------- Pibon Holdings Ltd. went into liquidation on May 21, 2007, and R. G. Pardington was appointed as liquidator. The liquidator can be reached at: R. G. Pardington c/o Deloitte, Chartered Accountants 8 Nelson Street PO Box 33, Auckland New Zealand Telephone:(09) 309 4944 Facsimile:(09) 309 4947 PRIESTLEY HEATING: Court to Hear Wind-Up Petition on July 9 ----------------------------------------------------------- On May 7, 2007, The Galbraith Brewing Company Limited filed a petition to wind up the operations of Priestley Heating Services Ltd. The petition will be heard before the High Court of Tauranga on July 9, 2007, at 10:45 a.m. The Galbraith's solicitor is: Malcolm David Whitlock Whitlock & Co. c/o Baycorp House, Level 2 15 Hopetoun Street Auckland New Zealand PROPERTY WORKS: Subject to CIR' Wind-Up Petition ------------------------------------------------ The Commissioner of Inland Revenue filed on May 14, 2007, a petition to wind up the operations of Property Works (BOP) Ltd. The petition will be heard before the High Court of Rotorua on July 9, 2007, at 10:45 a.m. The CIR's solicitor is: Kay S. Morgan New Zealand Telephone:(07) 959 0373 SEFTON GROVE: Filing Proofs of Debt Due Today --------------------------------------------- Arron Leslie Heath and Michael Lamacraft were appointed as the liquidators of Sefton Grove Ltd. on June 8, 2007. The Liquidators are receiving the creditors' proofs of debt until today, July 6, 2007. The Liquidators can be reached at: Arron Leslie Heath Michael Lamacraft Meltzer Mason Heath Chartered Accountants PO Box 6302, Wellesley Street Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 ===================== P H I L I P P I N E S ===================== ACCESS WORLDWIDE: Converts Promissory Notes to Common Stock ----------------------------------------------------------- Access Worldwide Communications Inc. has converted all of the company's outstanding convertible promissory notes to common stock. "We are very pleased to report that all of Access' convertible debt has been converted to common shares," Shawkat Raslan, chairman, president and chief executive officer of Access Worldwide, said. "The conversion of the convertible notes strengthens our balance sheet, and provides Access with positive shareholder equity." Based in Arlington, Virginia, Access Worldwide Communications Inc. (OTCBB: AWWC) -- http://www.accessww.com/-- is a business process outsourcing services company that offers customer management and other BPO services from its offices in the United States and the Philippines. The company has approximately 1,000 employees worldwide, Access supports clients in a variety of industries, including financial services, technology, telecommunications, consumer products, healthcare and media. At March 31, 2007, the company's balance sheet showed stockholders' deficit of US$1,100,799, compared to a deficit of US$1,180,464, at Dec. 31, 2006. BANGKO SENTRAL: Buys US$2 Bil. Spot Currency to Slow Down Peso -------------------------------------------------------------- In an effort to maintain export competitiveness, the Bangko Sentral ng Pilipinas purchased in May at least US$2 billion from the spot currency market to slow down the rise of the Philippine peso before it reached the PHP45 per US$1 level, the Manila Standard reports. The purchase added almost US$800 million to the Philippines' international reserves from April to May, the report relates. The Manila Standard notes that the BSP's forex swaps in May reached US$10.06 billion, as compared to US$7.82 billion as of April 30, because the spot currency purchases were immediately exchanged for pesos to stop the Philippines' domestic liquidity from burgeoning and threatening the inflation target. However, the peso may still keep on appreciating because remittances and foreign investments still flood the currency market, as foreign investors converge on emerging markets in Asian countries, the report relates. The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is the central bank of the Republic of the Philippines. It was established on July 3, 1993, pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993. BSP took over from the Central Bank of Philippines as the country's central monetary authority. Bangko Sentral enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities. The powers and functions of the Bangko Sentral are exercised by the Bangko Sentral Monetary Board, the highest policy-making body in the BSP. Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B' Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit Rating. Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior Unsecured Debt Rating. BANGKO SENTRAL: Urges Banks to Use Special Purpose Vehicles Act --------------------------------------------------------------- All banks should take advantage of the extended Special Purpose Vehicles Act if they want to unload non-performing assets faster, Bangko Sentral ng Pilipinas Deputy Governor Nestor Espenilla Jr. told the SunStar Daily. Mr. Espenilla said that the Philippine banking industry can be globally competitive in line with other Asian countries if the plan materializes faster. About 19% or PHP96.7 billion in bad assets had been disposed by banks under the first phase of the SPVA transactions, Mr. Espenilla said as he spoke to stakeholders during Euromoney's 2nd Annual Philippines Investment Conference last June 21 and 22 at the Shangri-la's Mactan Island Resort and Spa. The SPVA provides a target for the disposal of some P82 billion worth of non-performing assets, the report said. In an earlier report, BSP Gov. Amando Tetangco Jr. said that 27 banks may possibly dispose of about PHP82.1 billion worth of NPAs under SPVA. The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is the central bank of the Republic of the Philippines. It was established on July 3, 1993, pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993. BSP took over from the Central Bank of Philippines as the country's central monetary authority. Bangko Sentral enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities. The powers and functions of the Bangko Sentral are exercised by the Bangko Sentral Monetary Board, the highest policy-making body in the BSP. Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B' Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit Rating. Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior Unsecured Debt Rating. CHIQUITA BRANDS: US Siding with Firm in Banana Dispute with EU -------------------------------------------------------------- Enquirer reports that the U.S. government is siding with Chiquita Brands International Inc. in its 15-year battle against the European Union over access to its banana market. US Trade Representative Susan Schwab told Enquirer that she would ask a World Trade Organization panel to conduct a probe on the current system, "which favors bananas imported from former colonies in the Caribbean over those from Latin American countries." The investigation would determine whether the system breaches WTO rules. Enquirer relates that the original system imposed quotas limiting imports from Latin America. The US intervened on Chiquita Brands' behalf and imposed almost US$200 million in yearly sanctions against European products after Chiquita Brands complained that it lost US$1.5 billion because of the quotas. Ms. Schwab said in a statement, "We share the concern of Ecuador and several other Latin American banana exporters regarding the continued existence of a discriminatory tariff rate quota in the EU's current banana regime." According to Enquirer, Chiquita Brands spokesperson Mike Mitchell said the firm considered the intervention as a positive step. He said, "We certainly hope the USTR's action ... will continue to press the European Commission to resolve the situation very quickly." The report says that Chiquita Brands has been fighting EU over its banana licensing system since the early 1990s. EU is the company's most profitable banana market. However, other firms are able to charge higher prices there. Enquirer notes that in 2001, the EU committed to converting quotas to a tariff-only system by 2006. However, the Europeans imposed heavy tariffs of EUR176 per ton on bananas from Latin America, Ms. Schwab's office told Enquirer. The fees added US$75 million in net costs in 2006, a major factor in the firm's US$96 million loss, Enquirer states, citing Chiquita Brands. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Panama and the Philippines. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. DEL MONTE: Settles Antitrust Suits by Banana Buyers for US$2.5M --------------------------------------------------------------- Fresh Del Monte Produce Inc., and its subsidiary, Del Monte Fresh Produce Co., entered into settlement agreements to dismiss the two putative class actions brought on behalf of all direct and indirect U.S. purchasers of bananas from Fresh Del Monte and other banana producers. Under the settlement agreement with the direct purchasers of bananas, Fresh Del Monte has agreed to pay a total of no more than US$2.5 million to the class and the attorneys for the class. Between July 25, 2005, and Aug. 22, 2005, several plaintiffs served putative class action complaints against the company, certain subsidiaries and several other corporations all in the U.S. District Court for the Southern District of Florida on behalf of all direct purchasers of bananas for the period from May 2003 to the present. The complaints alleged that the defendants engaged in a continuing agreement, understanding and conspiracy to restrain trade by artificially raising, fixing and maintaining the prices of, and otherwise restricting the sale of, bananas in the U.S. in violation of Section 1 of the Sherman Act. A similar action was brought by a New York corporation for the period from July 2001 to the present. Additionally, between Oct. 21, 2005, and Nov. 10, 2005, Arizona, California, Minnesota, New York, Tennessee and Kansas residents filed a putative class action complaint against the company, one of its subsidiaries and several other corporations in the U.S. District Court for the Southern District of Florida on behalf of all indirect purchasers of bananas in their respective states for the period from May 2003 to the present. That complaint alleges violations of numerous state antitrust, competition, and unjust enrichment statutes. A similar action was brought by a California resident for the period from July 2001 to the present. The cases on behalf of the direct purchasers have been consolidated in the U.S. District Court for the Southern District of Florida. The cases on behalf of the indirect purchasers have been assigned to the same judge in the U.S. District Court for the Southern District of Florida. The recent settlement with the indirect banana purchasers is for donations of fruit or other food products to a charity over the next twelve months and a payment of money towards attorneys' fees and the cost of notice to the class. The total retail value of the donations to be made is US$833,334; the payment toward attorneys' fees and notice costs will not exceed US$108,334. "Fresh Del Monte has always maintained that these lawsuits are without merit and that the Company has done absolutely no wrong with respect to its sales of bananas," said Mohammad Abu- Ghazaleh, Fresh Del Monte's Chairman and Chief Executive Officer. "However, Fresh Del Monte believes the settlement of these lawsuits, once finally approved by the Court, is in the best interest of the Company because it will dispose of these class action litigations and eliminate the continued burden, disruption, and expense of responding to and defending against the claims." Based in the Cayman Islands, Fresh Del Monte Produce Inc. -- http://www.freshdelmonte.com/-- is one of the world's leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared fruit and vegetables, juices, beverages, snacks and desserts in Europe, the Middle East and Africa. Fresh Del Monte markets its products worldwide under the Del Monte(R) brand, a symbol of product quality, freshness and reliability since 1892. Del Monte Fresh Produce Company has operations in Chile, Brazil, France, Philippines, and Korea. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 19, 2007, Standard & Poor's Ratings Services lowered its ratings on Cayman Islands-based Fresh Del Monte Produce Inc. The corporate credit rating was lowered to 'BB-' from 'BB'. The ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 1, 2006, after the company's third-quarter earnings release and continued weak operating performance. S&P said the rating outlook was negative. About US$399 million of total debt was outstanding at Sept. 29, 2006. PHIL NAT'L BANK: Expects PHP1 Billion Annual Net Income for 2007 ---------------------------------------------------------------- The Philippine National Bank expects to earn PHP1 billion for 2007 as compared with the PHP810 million reported for 2006, Reuters reports. According to Reuters, the bank reported a 60% growth in its net income for the January-March period this year, attaining PHP308 million from the PHP193 million disclosed for the same period in 2006. Reuters Estimates forecasted a PHP1.14 billion net profit for 2007, the report relates. PNB President Omar Mier told Reuters that the bank is currently in talks to merge with Allied Banking Corp. The bank executive also said that the bank's current 10.8% non-performing loan ratio will be lowered in the second half, due to a planned sale of PHP4 billion-PHP5 billion worth of bad assets, and promised a single digit ratio by the end of this year. Philippine National Bank -- http://www.pnb.com.ph/-- is the Philippine's first universal bank established on July 22, 1916. The bank's core business consists of lending and deposit-taking activities from corporate, middle market and retail customers, as well as various government units. Its other principal activities include bill discounting, fund transfers, remittance servicing, foreign exchange dealings, retail banking, trust services, treasury operations and trade finance. Through its subsidiaries, PNB engages in a number of diversified financial and related businesses such as international merchant banking, investment banking, life/non-life insurance, leasing, financing of small-and-medium-sized industries, and financial advisory services. It introduced innovations such as the bank on wheels, computerized banking, ATM banking, mobile money changing and domestic travelers' checks. * * * The Troubled Company Reporter - Asia Pacific reported on November 6, 2006 that Moody's Investors Service has revised the outlook of Philippine National Bank's foreign currency long-term deposit rating of B1, local currency senior debt rating of Ba2, and local currency subordinated debt rating of Ba3 to stable from negative. The outlook for PNB's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E remains stable. The Troubled Company Reporter - Asia Pacific reported on Nov. 1, 2006 that Fitch Ratings affirmed Philippine National Bank's Individual rating at 'E' and Support rating '3' after a review of the bank. The Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Ratings Services has given PNB 'B' Short- Term Foreign Issuer Credit and Short-Term Local Issuer Credit Ratings, as well as 'B-' Long-Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings effective as of April 26, 2006. PRIME ORION: Unit Acquires Interest in PNB Loans for PHP400 Mil. ---------------------------------------------------------------- Prime Orion Philippines Inc.'s indirect subsidiary, HLG Philippines Inc., acquired all rights, title and interest of the Philippine National Bank in the loans that it extended to POPI and its subsidiaries. The loans were acquired for a cash consideration of PHP400 million. The transaction has reduced the group's consolidated loans, accrued interest and expenses by PHP3.88 billion as of June 28, 2007. Headquartered in Makati City, Philippines, Prime Orion Philippines, Inc. acquires by purchase, exchange, assign, donate or otherwise, and to hold, own and use, for investment or otherwise and to sell, assign, transfer, exchange, lease, let, develop, mortgage, pledge, traffic, deal in and with, and otherwise operate, enjoy and dispose of any and all properties of every kind and description and wherever situated, as and to the extent permitted by law, including but not limited to, buildings, tenements, warehouses, factories, edifices and structures and other improvements, and bonds, debentures, promissory notes, shares of capital stock, or other securities and obligations, created, negotiated or issued by any corporation, association, or other entity, domestic or foreign. Prime Orion Philippines, Inc. and subsidiaries have principal business interests in real estate, financial services and manufacturing. As of the quarter ended Dec. 31, 2006, the company had a capital deficiency of PHP5.21 billion. The company and subsidiaries also posted a consolidated net loss of PHP40.5 million for the three months ended Dec. 31, 2006. * Revenue Collection for 2007 May Fall PHP25 Billion Off Target --------------------------------------------------------------- Collection deficits during the first half by the Bureau of Internal Revenue and the Bureau of Customs will cause revenue collection for 2007 to be only PHP1.094 trillion, the Development Budget Coordination Committee told the Philippine Daily Inquirer. The report says that the figure is PHP25 billion lower than the official PHP1.119 trillion-revenue target. This will account for only 14.8% of the predicted gross domestic product for 2007, as compared to the 15.1% target. According to preliminary reports, the BIR amassed only PHP307.44 billion in taxes for the first half of 2007, which is about PHP45 billion below its PHP352.69 billion target for the period. BOC also managed to get only PHP75 billion as of May. According to the report, the lower revenue collection is attributed to the BIR's inefficient processes. Under the most optimistic forecasts made by the DBCC, the BIR will be able to speed up its collection for July until December in order to end up with only a PHP19 billion shortfall from its projeted target of PHP765 billion. The BOC would be able to collect only PHP223.25 billion under the expected total revenues for this year, lower than its PHP228 bilion target. BIR Deputy Commissioner Lilian Hefti pledged to implement revenue-enhancement programs in order to make up for the collection deficit, the report relates. These programs would include reviewing the current tax amnesties and investigation of the taxes remitted by the country's top 10,000 corporations. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency sovereign credit ratings on the Philippines, with a stable outlook. Also in May 2007, S&P assigned its 'BB+' senior unsecured rating to the Philippines' new three- and five-year benchmark bond issues. The new bonds mature in 2010 and 2012 and carry interest rates of 5.5% and 5.75%, respectively. The exchange offers yielded approximately Philippine peso 55 billion and PHP58 billion for the three- and five-year bonds, respectively, from the exchange of eligible issues. Fitch Ratings, on March 5, 2007, affirmed the Republic of the Philippines' Long-term foreign and local currency Issuer Default ratings at 'BB' and 'BB+', respectively. The agency also affirmed the Short-term IDR at 'B' and the Country Ceiling at 'BB+'. On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign- currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= CKE RESTAURANTS: Court Rejects Preliminary Injunction Motion ------------------------------------------------------------ The U.S. District Court in Santa Ana, Calif., has denied a motion for a preliminary injunction that CKE Restaurants, Inc. filed against Jack in the Box Inc. seeking to have television ads supporting its new 100% Sirloin Burger taken off the air. CKE Restaurants, Inc., parent company of Carl's Jr. and Hardee's restaurants, claims that the Jack in the Box(R) ads mislead the public about the origins of Angus beef. The court found that CKE Restaurants, Inc. did not meet its burden of demonstrating this. "We're glad that common sense prevailed and that this motion was denied," said Terri Graham, vice president and chief marketing officer for Jack in the Box Inc. "Jack in the Box is the only major quick-serve chain offering a 100% Sirloin Burger, so we wanted our advertising to highlight the high quality of our new burger and differentiate it from our competitors' products in a humorous way." About Jack in the Box Based in San Diego, California, Jack in the Box Inc. -- http://www.jackinthebox.com/-- is a restaurant company that operates and franchises Jack in the Box restaurants, one of the nation's largest hamburger chains, with nearly 2,100 restaurants in 17 states. The company also operates a proprietary chain of convenience stores called Quick Stuff(R), with more than 50 locations, each built adjacent to a full-size Jack in the Box restaurant and including a major-brand fuel station. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill(R), an emerging leader in fast-casual dining, with more than 350 restaurants in 39 states. About CKE Restaurants Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR) -- http://www.ckr.com-- through its subsidiaries, franchisees and licensees, operates some of the most popular U.S. regional brands in quick-service and fast-casual dining, including the Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and Green Burrito(R) restaurant brands. The company operates 3,131 franchised, licensed or company-operated restaurants in 43 states and in 13 countries -- including Mexico and Singapore. * * * As reported in the Troubled Company Reporter on March 29, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on CKE Restaurants. S&P said the outlook is stable. MULTILINE SHIPPING: Taps Lau Chin Huat as Liquidator ---------------------------------------------------- During a meeting held on June 22, 2007, the creditors of Multiline Shipping Pte Ltd agreed to liquidate the company's business and appointed Lau Chin Huat of Lau Chin Huat & Co as liquidator. The Liquidator can be reached at: Lau Chin Huat Lau Chin Huat & Co. Blk 150A, Mei Chin Road #02-00 Singapore 140150 PETROLEO BRASILEIRO: Operating 3 Biodiesel Plants by Year-End ------------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA's executive manager Mozart Schmitt told Dow Jones Newswires that the firm should start operating its first three biodiesel plants by year- end. Dow Jones relates that the three plants are being constructed in the semi-arid region of Minas Gerais, Ceara and Bahia. They will each have the capacity of producing some 57 million liters of biodiesel per year. The report says that principal feed stocks to be used for the plants are oils from: -- castor bean, -- sunflower, and -- soy. Petroleo Brasileiro told Dow Jones that other than its biodiesel production plans, it is testing the use of a 5% mix of biodiesel in partnership with automaker Ford Motor Co. in Bahia. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- 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. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: 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+ 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. PETROLEO BRASILEIRO: To Present New Wage Proposal to Stop Strike ---------------------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA will present a new promotion and wage proposal to its employees to try to stop a strike, which could potentially cripple its operations, the Associated Press reports, citing a union official. According to the AP, the protest is scheduled for Thursday. Brazil's main Oil Workers' Federation director Jose Maria Rangel commented to the press, "Petrobras [Petroleo Brasileiro] this morning said it will present a new proposal to us on Tuesday." Petroleo Brasileiro's press office told the AP that it may issue a statement on the proposal later. Federation directors had told Petroleo Brasileiro that 80% of Brazil's oil employees voted to go on a five-day strike that could threaten the production of 1.85 million barrels of oil per day, the AP says. The report says that the oil workers federation wants a new plan to better distribute salaries and positions, claiming that employees have been barred from promotions without proper reasons. The federation is also demanding that promotions be based solely on merit. The federation claimed that Petroleo Brasileiro's current system is creating unjust salary discrepancies, the AP states. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- 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. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: 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+ 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. QUANTUM ENERGY: Wind-Up Petition Hearing Set for July 13 -------------------------------------------------------- A petition to wind up the operations of Quantum Energy Systems Pte Ltd will be heard before the High Court of Singapore on July 13, 2007, at 10:00 a.m. Winbuild Machinery Pte Ltd filed the petition on June 18, 2007. Winbuild Machinery's solicitor is: Archilex Law Corporation 180 Cecil Street #11-01 Bangkok Bank Building Singapore 069546 SINTRADE SHIPPING: Creditors Resolve to Close Business ------------------------------------------------------ The creditors of Sintrade Shipping Co. Pte Ltd met on June 22, 2007, and resolved to close the company's business. Lau Chin Huat of Lau Chin Huat & Co. was appointed as liquidator. The Liquidator can be reached at: Lau Chin Huat Lau Chin Huat & Co. Blk 150A, Mei Chin Road #02-00 Singapore 140150 SPECTRUM BRANDS: Carries Out Management Streamlining ---------------------------------------------------- Spectrum Brands, Inc. reported a number of senior management changes in the Global Batteries & Personal Care business and at the corporate level as part of an operational realignment. "The changes we announced are designed to streamline, simplify and de-layer the corporate structure and focus management on the operation of our business units," Spectrum Brands' Chief Executive Officer Kent Hussey, said. "The changes will help us accomplish the goals of the organizational realignment we announced in January of this year, which are to make Spectrum Brands significantly leaner, more focused and more cost- effective as we transform our business model into three autonomous, product-focused business units." Andreas Rouve has been appointed Managing Director, Europe, and will assume responsibility for sales, marketing and supply chain for batteries and personal care in that region in addition to his current role as the division's Senior Vice President and Chief Financial Officer. "Andreas has made tremendous contributions to our organization since he joined VARTA AG in 1989," Mr. Hussey said. "I have the utmost confidence in his leadership abilities and business acumen. Andreas will be a valuable asset to the organization as we work to accelerate our operational improvements and continue to increase profitability." Mr. Rouve will succeed Remy Burel, who is stepping down from his position as President, Europe/Rest of World, after seventeen years with the Spectrum Brands and VARTA AG organizations. Mr. Hussey said, "We value Remy's leadership in our international operations, particularly in the successful integration of our VARTA acquisition in Europe and Latin America and the integration of Remington into the company's European business. We thank him for his many contributions and wish him every success in his future endeavors." Elimination of Other Senior Management Positions In addition to the changes, Spectrum Brands has eliminated a number of senior management positions as part of its operational realignment, including its senior vice president and general counsel, corporate chief information officer, senior vice president of purchasing, vice president of information technology in Europe, vice president of operations finance, and a number of vice president and division vice president positions throughout the organization. In all cases, responsibilities have been absorbed by existing personnel. In combination with other cost-saving measures being implemented as part of the realignment, Spectrum Brands expects these changes will accelerate the company toward its goal of reducing annual operating costs by an amount in excess of $50 million. About Spectrum Brands Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. The company operates in 13 Latin American nations including El Salvador, Guatemala, Costa Rica, Colombia and Nicaragua. * * * As reported in the Troubled Company Reporter on April 30, 2007, Fitch Ratings affirmed the ratings of Spectrum Brands, Inc., including its CCC issuer default rating, its CCC- rating of the company's US$700 million 7-3/8% senior subordinated note due 2015 and its CCC- rating of the company's US$350 million 11.25% Variable Rate Toggle Interest pay-in-kind Senior Subordinated Note due 2013. Fitch keeps the outlook at negative. VALEANT PHARMA: Settles Patent Infringement Suit with Kali Labs --------------------------------------------------------------- Valeant Pharmaceuticals International settled its lawsuit with Kali Laboratories Inc. for patent infringement on Diastat(R), the only FDA-approved at-home acute treatment for break-through epileptic seizures. Under the terms of the settlement, the companies reached an agreement in principle that would allow Kali to introduce a generic version of Diastat and Diastat(R) AcuDial(TM) no earlier than September 2010. Other terms of the settlement were not disclosed. In March 2004, Kali submitted an abbreviated new drug application with the Food and Drug Administration seeking approval for a generic version of Diastat, a diazepam rectal gel. In July 2004, Xcel Pharmaceuticals Inc., which was acquired by Valeant in March 2005, filed a complaint against Kali for patent infringement. The settlement, which was reached at a conference held last week in the U.S. District Court of New Jersey, requires the companies to finalize the agreement within 60 days. About Valeant Pharmaceuticals Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International -- http://www.valeant.com-- is a global specialty pharmaceutical company with US$823 million of 2005 revenues. It has offices in Singapore and Taiwan. * * * The Troubled Company Reporter - Asia Pacific reported on Jan. 26, 2007, that Moody's Investors Service confirmed the ratings of Valeant, including the B2 Corporate Family Rating, and concluded the rating review for possible downgrade, which was first initiated on October 23, 2006. Valeant's rating outlook is now stable. =============== T H A I L A N D =============== ADVANCE AGRO: Sees Increased Production With New Cut-Size Lines --------------------------------------------------------------- Advance Agro PCL expects its annual production capacity to increase by 390,000 tons following a purchase of three 12-pocket cut-size lines from ECH Will GmbH and Pemco Inc., according to a press release by ECH Will. Under their sales contract, ECH Will will deliver the first of the cut-size line at the end of 2007, with the second and third to be sent after an interval six months. The sheeters will have five unwinds made for reel diameters of 1800 mm, and equipped with a semi-automatic splice system. Advance Agro Public Company Limited -- http://www.advanceagro.com/-- is a pulp and paper manufacturer and distributor. It markets its products under the brand name Double A. The company also distributes its products through Double A Copy Center with over 1,500 branches in Thailand and overseas and Double A Stationery with approximately 100 shops nationwide. In addition, Advance Agro operates three power plants. Headquartered in Prachinburi Province, the company has a branch office in Bangkok. Advance Agro is comprised of a number of subsidiaries. The Troubled Company Reporter - Asia Pacific reported on Jan. 5, 2006, that Advance Agro Public Co. Ltd. received from Standard & Poor's Rating Services a B- rating, an upgrade from the previous CCC rating to its US$250 million 11 percent bonds due 2012. At the same time, the issue rating on Advance Agro Capital B.V.'s US$48.7 million 13 percent notes due 2007 was also raised to 'B-' from 'CCC'. The ratings were removed from CreditWatch, where they were placed with positive implications on November 29, 2005. The Troubled Company Reporter - Asia Pacific reported on Mar. 13, 2007 that Moody's Investor Services has changed to positive from stable the outlook for both Advance Agro Public Company Limited's B3 corporate family rating and the senior unsecured bond ratings on its notes due in 2007 and 2012. HANTEX PCL: SET Cancels Call-Market Trading of Securities --------------------------------------------------------- The Stock Exchange of Thailand has canceled call-market trading of Hantex PCL effective July 4. The company's securities are currently suspended from trading. The cancellation of the call-market system was done to encourage firms which have been in violation of the free float requirement to meet the criteria. The company has been in breach of the requirement for two years. Under the amended procedures for free float requirement violations, the company must: * explain its deficit within one year of its submission of shareholding reports; and * submit reports to investors every six months on the progress of efforts to address the deficit. For companies whose fiscal years end December 31, the first report is due on November 14, 2007. If the company fails to remedy the situation in one year, the SET will charge additional fees proportionate to the deficit in minority shareholding for the next period. Headquartered in Bangkok, Thailand, Hantex Public Company Ltd, reported liabilities aggregating THB552 million in 2004, versus lesser assets totaling THB480.64 million. The company drifted further to being insolvent in 2005, with THB608 million in liabilities -- almost double the THB319.86 million in assets reported. The company's stocks are currently under Stock Exchange of Thailand's SP (suspension), NP (notice pending), NC (non compliance) signs. * Notice Pending - The issuer failed to submit a quarterly or annual financial statement to the SET by the specified time. * Suspension - Trading in the security is being suspended for more than one trading session. * Non-Compliance - The securities of a listed company that may be delisted. Going Concern Doubt On June 16, 2006, Miss Chantra Wongsri-Udomporn of Dharmniti Auditing Company Limited, the company's independent auditor, raised significant doubt on the company's ability to continue as a going concern, citing the following reasons: * The company has encountered gross losses since 1998 to 2005. * As of December 31, 2005 and 2004 the company's current liabilities exceeded its current assets in the amount THB628.70 million and THB490.62 million, respectively. * The company's total liabilities exceeded its total assets THB323.35 million and THB72.50 million, respectively. * The company has been suffering on retained loss THB1.21 billion and THB1.03 billion, net loss for the years ended December 31, 2005, and 2004 in the amount THB183.51 million and THB195.85 million, respectively. * Other circumstances, such as: - The company defaulted repayment in accordance with the certain debt restructuring contract amounting to THB420.22 million with 3 financial institutions, including unable to achieve in negotiate of the debt restructuring agreement with the financial institutions. - The company also defaulted with another minor certain creditors such as the Provincial Electricity Authority, Natural and Resource Development, spare part, raw material, labor, security, etc. However, the company has a scheme to raise the money from the capital increase amounting to THB125 million to solve its significant liquidity problem. The auditor also adds that the company has been facing a significant liquidity problem for several years. STANDARD CHARTERED: SET Cancels Call-Market Trading of Stocks ------------------------------------------------------------- The Stock Exchange of Thailand has canceled call-market trading of Standard Chartered Bank (Thai) PCL effective July 4. The bank's securities are currently suspended from trading. The canceling of the call-market system was made to encourage firms which have been in violation of the free float requirement to meet the criteria. The company has been in breach of the requirement for two years. Under the amended procedures for free float requirement violations, the company must: * explain its deficit within one year of its submission of shareholding reports; and * submit reports to investors every six months on the progress of efforts to address the deficit. For companies whose fiscal years end December 31, the first report is due on November 14, 2007. If the bank fails to remedy the situation in one year, the SET will charge additional fees proportionate to the deficit in minority shareholding for the next period. Based in Bangkok, Thailand, Standard Chartered Bank (Thai) PCL (the Bank) is a Thailand-based commercial bank that provides a wide range of banking services to individual and corporate customers. Its consumer banking offers personal loan services such as credit card services, installment loan, personal line of credit, wealth management, as well as commercial loan for small and medium sized enterprises (SMEs). Its wholesale banking provides financial services such as lending, cash management, trade finance, custodian and other related services for local, global and commodity corporate, as well as financial institutions. On May 4, 2007, Moody's Investor Services affirmed the D+ bank financial strength rating of the bank. THAI-DENMARK: Reports to SET on Progress of Rehabilitation Plan -------------------------------------------------------------- Thai-Denmark Swine Breeder PCL reported on the progress of its business rehabilitation plan through a disclosure with the Stock Exchange of Thailand. According to the disclosure, the company has increased its capital from THB150 million to THB166.5 million through the issuance of 1.65 million shares at a value of THB10 each. The increase will be converted to repay the company's trade payable to Srithai Feedmill Co. Ltd. of THB102.69 million. The disclosure also reported that the company has been unable to comply with the repayment terms under the reorganization plan, and has reported the matter in order to allow the business reorganization officer to amend the plan for debtors' consideration. Headquartered in Bangkok, Thai-Denmark Swine Breeder Public Company Limited is a producer and breeder of swine and piglets. The company imports all of its parent stocks from Denmark. Going Concern Doubt The Troubled Company Reporter - Asia Pacific reported that Vilairat Rojnuckarin at the Office of DIA International Auditing, the company's independent auditors, raised significant doubt on the company's ability to continue as a going concern, citing that as of December 31, 2006 and 2005, the company had total liabilities exceeding over total assets by THB115.45 million and THB144.86 million, respectively. Mrs. Vilairat added that on July 26, 2005, the Court ordered the company to rehabilitate its business. On June 27, 2006, the Central Bankruptcy Court approved the rehabilitation plan of the Company and appointed it as the Plan Administrator. Therefore, the company's going concern depends on the ability of the company to accomplish the plan. THAI WAH: Supranee and Pattrarat Leave Posts as Directors --------------------------------------------------------- Supranee Kanosrikarin and Pattrarat Poonpattrarachiwin have both resigned as directors of Thai Wah PCL, according to a company disclosure with the Stock Exchange of Thailand. The company received these two directors' letter of resignation on July 3, 2007. Thai Wah Public Company Ltd's principal activity is the manufacturing and marketing of various food products using mung beans. Products includes mung bean vermicelli, bean sheet (Shanghai noodle) and salim starch. Brands and trademarks of the group include Double Dragon, Phoenix, Double Kilin and Double Eagle brands for vermicelli; Double Dragon brand for salim starch and bean sheet; and New Grade brand for tapioca starch, tapioca pearls and rice flours. It operates a factory in Thailand located in Banglane District, Nakorn Pathom Province. Thai Wah is currently implementing a Reorganization Plan, whose amendments were approved by the Central Bankruptcy Court in November 2005. THANACHART BANK: SET Cancels Call-Market Trading of Securities -------------------------------------------------------------- The Stock Exchange of Thailand has canceled call-market trading effective July 4, and has permitted the trading of Thanachart Bank PCL. The canceling of the call-market system was made to encourage firms which have been in violation of the free float requirement to meet the criteria. The company has been in breach of the requirement for two years. Under the amended procedures for free float requirement violations, the company must: * explain its deficit within one year of its submission of shareholding reports; and * submit reports to investors every six months on the progress of efforts to address the deficit. For companies whose fiscal years end December 31, the first report is due on November 14, 2007. If the company fails to remedy the situation in one year, the SET will charge additional fees proportionate to the deficit in minority shareholding for the next period. Headquartered in Bangkok, Thailand, Thanachart Bank PCL provides both personal and corporate banking services. The personal banking includes fixed, current, foreign currency and savings deposits, residential new home loans and residential refinancing home loans. The corporate banking offers commercial loans and other financial services to its business clients. The Bank also offers services to its customers to make money transfers via automated teller machines (ATMs) and via phones. As of December 31, 2006, TBANK operated 133 branches and 242 ATMs, as well as 46 foreign exchange centers throughout the country. On April 2, 2007, Fitch Ratings (Thailand) gave TBANK a D Individual rating and 5 Support rating * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------- ------ ------ ------------ AUSTRALIA Austar United Communications Limited AUN 411.16 -43.72 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1637.04 -1443.69 Intellect Holdings Limited IHG 15.01 -0.83 KH Foods Ltd KHF 62.30 -1.71 Lafayette Mining Limited LAF 78.17 -127.82 Life Therapeutics Limited LFE 59.00 -0.38 Orbital Corp. Ltd. OEC 14.01 -4.86 RMG Ltd. RMG 22.33 -2.16 Tooth & Co. Ltd. TTH 99.25 -74.39 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Beiya Industrial (Group) Co., Ltd 600705 462.13 -20.57 Chang Ling Group 561 85.06 -80.88 Chengdu Book Digital Co. Ltd. 600083 21.50 -3.07 China Kejian Co. Ltd. 35 54.71 -179.23 China Liaoning International Cooperation (Group) Ltd 638 20.12 -42.96 Datasys Technology Holdings Ltd 8057 14.1 -2.07 Dynamic Global Holdings Ltd. 231 39.43 -2.21 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Fujian Sannong Group Co. Ltd 732 44.23 -92.62 Guangdong Hualong Groups Co., Ltd 600242 15.23 -46.94 Guangdong Kelon Electrical Holdings Co Ltd 921 596.71 -94.69 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangxia (Yinchuan) Industry Co. Ltd. 557 48.71 -59.63 Hainan Dadonghai Tourism Centre Co., Ltd 613 19.74 -5.81 Hainan Overseas Chinese Investment Co., Ltd 600759 28.97 -9.90 Hans Energy Company Limited 554 85.00 -0.49 Heilongjiang Black Dragon Co., Ltd 600187 121.30 -74.45 Heilongjiang SunField Science & Tech Co 000620 29.96 -49.18 Hualing Holdings Limited 382 262.90 -32.17 Huda Technology & Education Development Co. Ltd. 600892 17.12 -0.39 Hunan Hengyang 600762 68.45 -7.20 Innovo Leisure Recreation Holdings Ltd. 703 13.37 -3.89 Junefield Department Store Group Limited 758 16.80 -6.34 Loulan Holdings Limited 8039 13.01 -1.04 New World Mobile Holdings Ltd 862 295.66 -12.53 New City China 456 242.25 -21.46 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd. 1013 18.52 -3.34 Regal Real Estate Investment Trust 1881 945.38 -234.38 Shenyang Hejin Holding Company Ltd. 633 103.86 -3.16 Shenzhen China Bicycle Co., Hlds. Ltd. 17 39.13 -224.64 Shenzhen Dawncom Business Tech. and Service Co., Ltd. 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co., Ltd. 34 69.92 -44.65 Shijiazhuang Refining-Chemical Co., Ltd 783 357.75 -84.57 Sichuan Langsha Holding Ltd. 600137 13.82 -62.11 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Success Information Industry Group Co. 517 99.92 -14.29 Suntek Technology Co., Ltd 600728 48.81 -16.09 Suntime International Economic Trading 600084 359.49 -47.93 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Tianjin Marine Shipping Co. Ltd 600751 111.03 -3.59 Tianyi Science & Technology Co., Ltd 600703 53.41 -28.73 Tibet Summit Industry Co., Ltd 600338 90.92 -4.05 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xiamen Eagle Group Co., Ltd 600711 18.82 -2.74 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 Zhejiang Haina Science & Tech Co., Ltd. 925 21.43 -33.33 INDIA Andhra Cement Ltd. ANDC 58.94 -13.48 Andrew Yule & Co. Ltd ANY 86.39 -12.47 Ashima Ltd. NASHM 101.78 -35.04 ATV Projects India Ltd. ATV 68.25 -30.17 Bagalkot Udyog Ltd. BUL 20.55 -0.63 Baroda Rayon Corp. Ltd. BR 41.16 -26.62 CFL Capital Financial Services Ltd CEATF 25.42 -47.32 Core Healthcare Ltd. CPAR 214.36 -199.02 Deccan Aviation Pte. Ltd. DECA 86.94 -2.83 Dunlop India Limited DNLP 52.75 -65.30 Fairfield Atlas Ltd. ATG 23.38 -1.76 GKW Ltd. GKW 35.75 -13.52 Global Broadcast News Ltd GBN 18.13 -1.27 Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.01 Himachal Futuris HMFC 574.62 -38.68 HMT Limited HMT 238.05 -288.85 Hindustan Organic Chemicals Limited HOC 109.22 -15.18 IFCI Limited IFCI 2566.01 -727.71 JCT Electronics Ltd. JCTE 118.28 -165.74 JK Synthetics Ltd JKS 24.04 -1.42 Kothari Sugars and Chemicals Ltd. NKTSG 43.24 -29.24 LML Ltd. LML 81.21 -11.89 Mafatlal Ind. MFI 95.67 -85.81 Malanpur Steel Ltd. HDC 82.08 -52.01 Modern Threads MRT 78.18 -20.71 Mysore Kirloskar Ltd. MK 23.71 -3.04 Panchmahal Steel Ltd. PMS 51.02 -0.33 Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38 Shree Rama Multi Tech Ltd. NSRMT 86.31 -3.90 Shyam Telecom NSHY 147.34 -22.80 SIV Ind. Ltd. NSIV 101.16 -66.27 SpiceJet Ltd. SJET 121.34 -2.75 Shyam Telecom Limited SHY 147.34 -22.80 Tata Teleservices (Maharashtra) Limited NTTLS 653.56 -9.99 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Dharmala Intiland Tbk DILD 197.91 -6.62 Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Steel Works Tbk JKSW 44.72 -38.57 Mulialand Tbk MLND 141.33 -45.99 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Toba Pulp Lestrari Tbk INRU 403.58 -198.86 Unitex Tbk UNTX 29.08 -5.87 Wicaksana Overseas International Tbk WICO 43.09 -46.36 JAPAN Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Orient Corporation 8585 37956.19 -1109.02 Sumiya Co., Ltd. 9939 89.32 -11.57 Tasco System Co., Ltd 2709 48.45 -14.07 Yakinikuya Sakai Co., Ltd. 7622 79.34 -11.20 KOREA Belco International Co., Ltd 53470 19.89 -5.49 BHK Inc 3990 24.36 -17.38 C&C Enterprise Co. Ltd. 38420 28.05 -14.50 DaeyuVesper Co. Ltd. 41140 19.06 -1.60 DongYang GangChul Co., Ltd. 001780 108.79 -9.80 EG Semicon Co. Ltd. 38720 166.70 -12.34 Everex Inc 47600 23.15 -5.10 Seji Co., Ltd 53330 37.25 -0.31 Tong Yang Major Corp. 1520 2332.81 -86.95 MALAYSIA Ark Resources Bhd ARK 25.91 -28.35 Cygal Bhd CYG 58.47 -69.79 Gefung Holdings Bhd GFHB 21.68 -1.74 Lityan Holdings Berhad LIT 22.22 -19.11 Mentiga Corporation Berhad MENT 22.13 -18.25 Mycom Bhd MYC 222.58 -136.17 Olympia Industries Bhd OLYM 272.49 -281.44 Pan Malay Industries PMRI 199.08 -6.30 PanGlobal Berhad PGL 189.92 -50.36 PSC Industries Bhd PSC 62.80 -116.18 Sateras Resources Bhd. SRM/4278 44.73 -38.82 Setegap Berhad STG 19.92 -26.88 Sino Hua-An International Bhd HUAAN 184.60 -98.30 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Filsyn Corporation FYN 19.20 -8.83 Gotesco Land, Inc. GO 17.34 -9.59 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 SINGAPORE Compact Metal Industries Ltd. CMI 47.42 -36.47 Falmac Limited FAL 10.51 -2.30 Gul Technologies GUL 155.76 -15.21 HLG Enterprise HLGE 116.77 -8.71 Informatics Holdings Ltd INFO 22.30 -9.14 L & M Group Investments Ltd LNM 56.91 -10.59 Lindeteves-Jacoberg Limited LJ 185.49 -46.43 Pacific Century Regional PAC 1569.35 -88.20 Semitech Electronics Ltd. SEMI 11.01 -0.23 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Daidomon Group PLC DAIDO 12.92 -8.51 Datamat Public Co., Ltd DTM 17.55 -1.72 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Mark Andre Yapching, Azela Jane Taladua, Rousel Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Tara Eliza Tecarro, Freya Natasha Fernandez-Dy, Frauline Abangan, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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