/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070724.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, July 24, 2007, Vol. 10, No. 144 Headlines A U S T R A L I A AIR CONDITIONING: Members to Hear Liquidator's Report on Aug. 10 ALL SYSTEMS: Creditors Resolve to Close Business ARMOR HOLDINGS: Prices Offering of 8.25% Senior Sub. Notes ARMOR HOLDINGS: Stifel Nicolaus Maintains Hold Rating on Shares AVNET INC: Promotes Teri Radosevich as VP-Community Relations BIG DOG TELECOM: Members Agree on Voluntary Liquidation BROOKVALE CAR: Members and Creditors to Meet on August 10 CHACO CONSOLIDATED: Members Opt to Shut Down Business HAGEMEYER ASIA: Sets Members' Meeting on August 10 HEILMOORE INTERNATIONAL: Members to Meet on Aug. 13 HOCKING WATER: Placed Under Members' Voluntary Liquidation HUTCHISON TELECOMMUNICATIONS: No Reason for 25% Share Price Rise PEREGRINE SECURITIES: Sets Members' Meeting for August 13 POLYPORE INTERNATIONAL: S&P Revises Outlook to Positive REALOGY CORP: Closes Change of Control Offer for US$1.2BB Notes UNITED FIRESERVICES: Members Resolve to Liquidate Business C H I N A & H O N G K O N G AMERICAN HARDWOOD: Names Au Yuen Fan, Candy, as Liquidator ANDREW CORPORATION: Submits Pre-merger Notification Filings ANDREW CORPORATION: Inks Second Amendment to Credit Agreement BALLY TOTAL: Inks Restructuring Support Pact w/ Sr. Noteholders BREAN DISTRIBUTORS: Wind-Up Petition Hearing Set for Aug. 1 CELLON HONG KONG: Sets Creditors' Meeting for July 27 CHINA EASTERN: Will Post Profit for 2007 First Half CHINA EASTERN: Plans to Buy 10 Airbuses for CNY4.64 Billion COMEPHONE INDUSTRIAL: Court to Hear Wind-Up Petition on Sept. 12 FERRO CORP: Names Roland Simon as Chief Purchasing Officer IMPACT DESIGNS: Creditors' Proofs of Debt Due on August 10 MAXBUSY GROUP: Taps Wing Muk and Middleton as Liquidators ON BRIGHT DEVELOPMENT: Accepting Proofs of Debt Until Aug. 20 PACIFIC PRECISION: Liquidators Quit Posts PETROLEOS DE VENEZUELA: Taiwan's CPC To Defend Oil Rights RED BEAN: Sets Wind-Up Petition Hearing for July 25 SHIMAO PROPERTY: Fitch Assigns 'BB+' LT Issuer Default Rating TEKSID ALUMINUM: Gets Necessary Consents to Amend Indenture WORLD SHINE: Ng Hon Wai Derek Quits Liquidator Post * Pressure for Less Surplus Will Increase Policy Risks, S&P Says I N D I A BHARTI AIRTEL: Members Appoint S.R. Batliboy as New Auditors CABLE & WIRELESS: Digicel Files Claims for Unlawful Behavior ESSAR OIL: Strikes Oil at Mehsana Onshore Basin in Gujarat GENERAL MOTORS: Reports Global 2nd Qtr. Sales of 2.4MM Vehicles GENERAL MOTORS: Labor Talks to Aid Turnaround of U.S. Business ICICI BANK: Books INR775 Cr. Profit in 1st Quarter Ended June 30 IFCI LTD: Turns Around With INR2.47BB Profit in 1st Qtr. FY2008 NCO GROUP: Launches Exchange Offers for US$365 Million Sr. Notes I N D O N E S I A ALCATEL-LUCENT: Enters Into Services Agreement With NCR Corp. BANK DANAMON: Launches Dirham Credit Card With MasterCard BANK NIAGA: 1st Semester Net Profit Up 15% to IDR406 Billion CIKARANG LISTRINDO: S&P Assigns 'BB-' Ratings; Outlook Stable INDOSAT: Books 20 Million Customers in First Semester of 2007 MEDCO ENERGI: To Sell 49% in Nunukan Block to Anadarko Indonesia MOBILE-8 TELECOM: Moody's Assigns 'B2' Corporate Family Rating MOBILE-8 TELECOM: S&P Assigns 'B' LT Corporate Credit Rating MOBILE-8 TELECOM: To Sell US$150-Million Dollar Bond J A P A N FORD MOTOR: To Invest EUR675 Million in Romanian Plant FORD MOTOR: Private Equity Firms May Bid for Jaguar & Land Rover FORD MOTOR: TPG Capital, Others Bid for Jaguar & Land Rover JVC CORP: Forms Capital & Business Tie-Up with Kenwood and Sparx MAZDA MOTORS: Resumes Production in Yamaguchi Factory UBE INDUSTRIES: To Reduce Cost of Caprolactam Production * Japan Auto Sector's Supplier Risk Made Visible From Earthquake K O R E A HYNIX SEMICONDUCTOR: Introduces Fair Trade Compliance Program MAGNACHIP SEMICON: Ships New LCD Driver Chip to Module Makers M A L A Y S I A PROTON HOLDINGS: Shares Rise After Report of Volkswagen Deal SHAW GROUP: Secures US$1.29 Billion EPC Pact from Duke Energy N E W Z E A L A N D 50 FORCE: Court Appoints Iain McLennan as Liquidator BRIDGECORP LTD: Australian Arm's Pensioners May Get Gov't. Aid CLIFFORD HOLDINGS: Requires Creditors to File Claims by July 19 CONCRETE FX: Commences Liquidation Proceedings DDC CARRIERS: Names Fatupaito and McCloy as Liquidators FIRE TECHNOLOGY: Shareholders Agree on Voluntary Liquidation GREEN TEAM: Fixes Sept. 21 as Last Day to File Claims MEREWEATHER ENTERPRISES: Taps Official Assignee as Liquidator NORFOLK INVESTMENTS: Appoints Official Assignee as Liquidator PACIFIC WORLD: Enters Liquidation Proceedings PERTAKO LTD: Accepting Proofs of Debt Until Sept. 21 THIRSTY ENTERPRISES: Fixes July 26 as Last Day to File Claims WECA CONSTRUCTION: Creditors' Proofs of Debt Due on August 10 P H I L I P P I N E S ATLAS CONSOLIDATED: Carmen Copper Unit Cancels Public Offering BANCO DE ORO-EPCI: BDO Must Pay PHP74.61 Million Deficiency Tax PHIL AIRLINES: Mulls Over Flying to New Destinations in the U.S. PHIL AIRLINES: Considers Coming Out Early from Rehabilitation SAN MIGUEL: Plans to Place Bid for Calaca Power Plant in Auction SAN MIGUEL: Considers Investing in Ethanol Production WELLEX INDUSTRIES: Unit Inks Partnership Deal With Chinese Firm S I N G A P O R E ADVANCED MICRO: Posts US$600 Mil. Net Loss in Qtr. Ended June 30 FOODBEX GLOBAL: Court Enters Wind-Up Order MEDIASTREAM LTD: To Hold Meting for Scheme Creditors on July 30 POLYONE CORP: Inks Canadian Receivables Purchase Agreement RINOL SINGAPORE: Distributes Dividend to Preferential Creditors WANG COO-KIEN: Sets Final Meeting for August 18 * Fitch Gives Stable Rating to Singapore Banks Despite Expansion T H A I L A N D BANGKOK BANK: Posts THB5.34-Bil. Net Income for 2nd Quarter 2007 BANGKOK BANK: Posts THB9.97-Billion Net Income for 2007 1st Half BANGKOK BANK: Earns THB200,000 from Sales of Gamma Dev't Shares BANK OF AYUDHYA: Posts THB8.8-Billion Net Loss for 2nd Qtr. 2007 BANK OF AYUDHYA: Posts THB7.6-Billion Net Loss for 1st Half 2007 * BOND PRICING: For the Week 23 July to 27 July 2007 - - - - - - - - ================= A U S T R A L I A ================= AIR CONDITIONING: Members to Hear Liquidator's Report on Aug. 10 ---------------------------------------------------------------- The members of Air Conditioning and Duct Manufacturing Training Limited will have a general meeting on August 10, 2007, at 10:00 a.m., to hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: P. R. Watson c/o David Hicks & Co Pty Ltd Chartered Accountants Level 5, 6a Glen Street Milsons Point, New South Wales 2061 Australia About Air Conditioning Air Conditioning and Duct Manufacturing Training Ltd operates vocational schools. The company is located in New South Wales, Australia. ALL SYSTEMS: Creditors Resolve to Close Business ------------------------------------------------ On June 28, 2007, the creditors of All Systems Air Conditioning Pty Limited resolved to close the company's business. Paul William Gidley and James Alexander Shaw of Ferrier Hodgson were appointed as liquidators. The Liquidators can be reached at: Paul William Gidley James Alexander Shaw Ferrier Hodgson, Chartered Accountants Level 3, 2 Market Street Newcastle, New South Wales 2300 Australia About All Systems All Systems Air Conditioning Pty Ltd provides plumbing, heating and air-conditioning services. The company is located in New South Wales, Australia. ARMOR HOLDINGS: Prices Offering of 8.25% Senior Sub. Notes ---------------------------------------------------------- Armor Holdings Inc. has priced its previously announced tender offer to purchase for cash all of its outstanding 8.25% Senior Subordinated Notes due 2013, CUSIP No. 042260AB5, which, along with the related consent solicitation, are being conducted pursuant to the terms of and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated July 2, 2007. The total consideration for each US$1,000 principal amount of the Notes, which will be payable in respect of the Notes that are accepted for payment and that were validly tendered on or prior to 5:00 p.m., New York City time, on July 16, 2007, will be US$1,066.53 per US$1,000 principal amount of the Notes, based on an assumed payment date of July 31, 2007, which is the business day following the Expiration Date of the Offer. The Tender Offer Consideration is the Total Consideration minus a US$20.00 consent payment. The Total Consideration was determined as of 2:00 p.m., New York City time, on July 16, 2007, and is equal to, for each US$1,000 principal amount of Notes, (i) the sum of the present value on the Payment Date of (a) US$1,041.25 (the amount payable on Aug. 15, 2008, which is the date the Notes first become callable, plus (b) the interest that would be payable on, or accrue from, Feb. 15, 2007, the most recent interest payment date, until the First Call Date, in each case, determined on the basis of a yield to the First Call Date equal to the sum of the bid-side yield on the 4.125% U.S. Treasury Note due Aug. 15, 2008, which UBS Investment Bank calculated as 4.983% as of 2:00 p.m., New York City time, on July 16, 2007, in accordance with the Offer to Purchase, plus (c) a fixed spread of 50 basis points, minus (ii) accrued and unpaid interest from February 15, 2007 to, but not including, the Payment Date. The Consent Payment of US$20.00 per US$1,000 principal amount of Notes is included in the calculation of the Total Consideration and is not in addition to the Total Consideration. In addition to the Total Consideration, such tendering holders will receive accrued and unpaid interest up to, but not including, the Payment Date with respect to Notes validly tendered and not validly withdrawn prior to the Consent Payment Deadline pursuant to the Offer. The Offer shall expire at 12:00 midnight, New York City time on July 30, 2007, unless extended or earlier terminated. Holders who validly tender their Notes after the Consent Payment Deadline and on or prior to the Expiration Date will receive only the Tender Offer Consideration, plus accrued and unpaid interest up to, but not including, the Payment Date. As of the Consent Payment Deadline, Armor had received tenders of Notes and deliveries of related consents from holders of approximately 99.83% of the principal amount of the outstanding Notes. As a result of obtaining the requisite consents, Armor will execute and deliver a supplemental indenture setting forth the amendments to the indenture governing the Notes, which will eliminate substantially all restrictive covenants and certain event of default provisions in the indenture, as detailed in the Offer to Purchase. The supplemental indenture provides that the amendments to the indenture will become operative only on the payment date for the tendered Notes accepted by Armor for purchase pursuant to the Offer. Armor's obligation to accept for purchase and pay for the Notes validly tendered and consents validly delivered, and not validly withdrawn or revoked, pursuant to the Offer is subject to and conditioned upon the satisfaction of or, where applicable, Armor's waiver of, certain conditions including (1) the consummation of the proposed merger of Jaguar Acquisition Sub Inc., a Delaware corporation and a wholly-owned subsidiary of BAE Systems, Inc., with and into Armor pursuant to an Agreement and Plan of Merger among Armor, BAE Systems, Inc. and Merger Sub dated as of May 7, 2007; and (2) certain other general conditions, each as described in more detail in the Offer to Purchase. Requests for documents may be directed to the Information Agent for the Offer and Solicitation, Global Bondholder Services Corporation, by telephone at (866) 804-2200 (toll free) or (212) 430-3774, or in writing at 65 Broadway -- Suite 723, New York, NY 10006. Questions regarding the terms of the Offer and Solicitation should be directed to the Dealer Manager and Solicitation Agent, UBS Investment Bank, at (888) 722-9555, ext. 337-4210 (toll-free) or (203) 719-4210 (collect). About Armor Holdings Inc. Headquartered in Jacksonville, Florida, Armor Holdings, Inc. (NYSE: AH)-- http://www.armorholdings.com/-- manufactures and distributes security products and vehicle armor systems for the law enforcement, military, homeland security, and commercial markets. The company's mobile security division is located in Mexico, Venezuela, Colombia and Brazil. The company has operations in Australia in the Asia Pacific, in England for Europe and Brazil for its Latin-American operations. * * * Armor Holdings, Inc.'s 8-1/4% Senior Subordinated Notes due 2013 carry Moody's Investors Service's B1 rating and Standard & Poor's B+ rating. ARMOR HOLDINGS: Stifel Nicolaus Maintains Hold Rating on Shares --------------------------------------------------------------- Stifel Nicolaus & Company analysts have kept their "hold" rating on Armor Holdings Inc's shares, Newratings.com reports. The analysts said in a research note that the "MRAP contract award worth US$518 million to Armor Holdings is substantially favorable for the company." Stewart & Stevenson Tactical Vehicle Systems, one of Armor Holdings' units, was awarded a US$518,543,584 "firm-fixed-priced delivery order" to provide 1,154 Mine Resistant Ambush Protected Category I vehicles and 16 MRAP Category II vehicles, Newratings.com states, citing the analysts. Headquartered in Jacksonville, Florida, Armor Holdings, Inc. (NYSE: AH)-- http://www.armorholdings.com/-- manufactures and distributes security products and vehicle armor systems for the law enforcement, military, homeland security, and commercial markets. The company's mobile security division is located in Mexico, Venezuela, Colombia and Brazil. The company has operations in Australia in the Asia Pacific, in England for Europe and Brazil for its Latin-American operations. * * * Armor Holdings, Inc.'s 8-1/4% Senior Subordinated Notes due 2013 carry Moody's Investors Service's B1 rating and Standard & Poor's B+ rating. AVNET INC: Promotes Teri Radosevich as VP-Community Relations ------------------------------------------------------------- Avnet, Inc., has promoted Teri Radosevich to vice president of community relations. In her seven years as Avnet's director of Community Relations, Mrs. Radosevich took the company's community relations programs to a new level by expanding them from sponsorships to focused efforts that rallied the company's suppliers, customers and vendors to help students of all ages use or benefit from technology. The Avnet Tech Games and Avnet Science and Technology Fair, both launched under Mrs. Radosevich's direction, have been particularly effective at raising Avnet's profile inside and outside the company. "Thanks to Teri's leadership and refinement of Avnet's community relations strategy, Avnet enjoyed a 37 percent increase in brand awareness within the Phoenix area, and more importantly, now enjoys a greater commitment to community relations from company executives and employees alike," said Al Maag, Avnet's chief communications officer. "Moreover, she has kept Avnet at the forefront of many government programs and local issues including corporate social responsibility - so much that companies in Phoenix and in the industry often seek her advice. Avnet is fortunate to have her and looks forward to seeing what she can accomplish as she sets her sights on expanding community relations efforts around the world." Traveling to Avnet locations to share best practices and advise them on community relations implementation is only part of Mrs. Radosevich's new responsibilities, which also include publishing a bi-monthly community relations newsletter to keep employees informed about company efforts while also alerting them about additional ways they can make a difference in their cities. A recent graduate of the Valley Leadership program and winner of the PR News Corporate Social Responsibility Award, Mrs. Radosevich has served on the boards of Free Arts for Abused Children and the Arizona Foundation for Women. In addition to a Master's degree from Western International University and a bachelor's degree from Eastern Illinois University, she received community relations certification from The Center for Corporate Community Relations at Boston College. About Avnet Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * The Troubled Company Reporter on March 6, 2007, reported that Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. BIG DOG TELECOM: Members Agree on Voluntary Liquidation ------------------------------------------------------- During a general meeting held on June 22, 2007, the members of Big Dog Telecom Pty Ltd agreed to voluntarily liquidate the company's business. Matthew Jess and Paul Burness were appointed as liquidators. The Liquidators can be reached at: Matthew Jess Paul Burness Worrells Solvency & Forensic Accountants Level 5, 15 Queen Street Melbourne, Victoria 3000 Australia Telephone:(03) 9613 5514 Facsimile:(03) 9614 3233 Web site: http://www.worrells.net.au About Big Dog Big Dog Telecom Pty Ltd provides business consulting services. The company is located in Victoria, Australia. BROOKVALE CAR: Members and Creditors to Meet on August 10 --------------------------------------------------------- The members and creditors of Brookvale Car World Pty Ltd will have their final meeting on August 10, 2007, at 10:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: Brian Silvia c/o Ferrier Hodgson GPO Box 4114 Sydney, New South Wales 2001 Australia About Brookvale Car Brookvale Car World Pty Ltd is a dealer of used cars. The company is located in New South Wales, Australia. CHACO CONSOLIDATED: Members Opt to Shut Down Business ----------------------------------------------------- The members of Chaco Consolidated Pty Limited met on June 27, 2007, and agreed to shut down the company's business. David Gregory Young, Chartered Accountants of Pitcher Partners, was appointed as liquidator. The Liquidator can be reached at: David Gregory Young Chartered Accountant Pitcher Partners Level 3, 60 Castlereagh Street Sydney, New South Wales 2000 Australia About Chaco Consolidated Located in New South Wales, Australia, Chaco Consolidated Pty Limited is an investor relation company. HAGEMEYER ASIA: Sets Members' Meeting on August 10 -------------------------------------------------- The members of Hagemeyer Asia Pacific Electronics Pty Limited will meet on August 10, 2007, at 10:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidators are: David Clement Pratt Stephen Graham Longley c/o PricewaterhouseCoopers Freshwater Place, 2 Southbank Boulevard Southbank, Victoria 3006 Australia About Hagemeyer Asia Hagemeyer Asia Pacific Electronics Pty Limited, which is also trading as Soanar, is a distributor of electrical apparatus and equipments. The company is located in Victoria, Australia. HEILMOORE INTERNATIONAL: Members to Meet on Aug. 13 --------------------------------------------------- A meeting will be held for the members of Heilmoore International Pty Ltd on August 13, 2007, at 10:30 a.m. D. R. Vasudevan, 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: D. R. Vasudevan c/o Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia About Heilmoore International Heilmoore International Pty Ltd, which is also trading as Western Ventilation Equipment, is in the sheet metalwork business. The company is located in Victoria, Australia. HOCKING WATER: Placed Under Members' Voluntary Liquidation ---------------------------------------------------------- During a general meeting held on June 25, 2007, the members of Hocking Water Heater Co Pty Ltd decided to voluntarily liquidate the company's business and appointed Brian Gray as liquidator. The Liquidator can be reached at: Brian Gray 5 Boronia Parade Lugarno, New South Wales 2210 Australia About Hocking Water Hocking Water Heater Co Pty Ltd is a distributor of household appliances. The company is located in New South Wales, Australia. HUTCHISON TELECOMMUNICATIONS: No Reason for 25% Share Price Rise ---------------------------------------------------------------- Hutchison Telecommunications Limited says it has no explanation to give to the Australian Stock Exchange for its 25% increase in its share price two weeks ago, reports Australian Associated Press. The telco rose from 14 cents on July 11 to an intraday high of 18 cents on July 17, conveys AAP. Reportedly, after an inquiry by the ASX, the telecommunication company's secretary Louise Sexton said that the company had nothing to disclose to the market. Ms. Sexton, in a statement grabbed by AAP, stated that, "the company is not aware of any information concerning it that has not been announced that could be an explanation for recent trading in the securities of the company." Also, AAP conveyed that Hutchison "does not currently anticipate that there will be any material abnormal or extraordinary profit for the half year ended 30 June 2007." Ms. Sexton pointed out a recent capital restructure and the associated share price changes are among the things that have developed in the company, relates the report. As of July 18, 2007, 10:34 AEST, Hutchison shares were still trading at 18 cents, the report adds. About Hutchison Telecommunications Headquartered in New South Wales, Australia, Hutchison Telecommunications (Australia) Limited -- http://www.hutchison.com.au/-- is engaged in the ownership and operation of wideband code division multiple access (W-CDMA), third-generation (3G) mobile network (branded 3) across the five mainland capital cities and national capital, Canberra; the ownership and operation of a code division multiple access (CDMA) network (branded Orange) mobile in and around Sydney and Melbourne, and a national paging and messaging service under the Orange brand. 3 is part of the global telecommunication operations of Hutchison Whampoa Limited. In February 2006, Hutchison re-branded its CDMA network to 3 CDMA. 3 CDMA provides customer with voice and basic messaging services. 3 also provides a range of paging, messaging and portable information services. The Troubled Company Reporter-Asia Pacific, on April 20, 2007, included in its "Large Companies With Insolvent Balance Sheets" Column Hutchison Telecommunication, with US$786.31 million in stockholders' equity deficit. The company recorded a AU$759.4-million net loss for the 2006 fiscal year, compared with a AU$547.3-million loss for 2005. PEREGRINE SECURITIES: Sets Members' Meeting for August 13 --------------------------------------------------------- Peregrine Securities NL will hold a meeting for its members on August 13, 2007, at 10:00 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: D. R. Vasudevan Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia About Peregrine Securities Located in Victoria, Australia, Peregrine Securities NL is an investor relation company. POLYPORE INTERNATIONAL: S&P Revises Outlook to Positive ------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Charlotte, N.C.-based Polypore International Inc. and its subsidiary Polypore Inc. to positive from stable. At the same time, S&P affirmed its ratings on both companies, including the 'B' corporate credit rating. "The outlook revision reflects the completion of a US$285 million IPO, proceeds of which have been applied to debt reduction, and the resulting improvement in credit protection measures," said S&P's credit analyst Gregoire Buet. The ratings continue to reflect Polypore's highly leveraged financial risk profile, characterized by high, though reduced, debt levels and weak credit metrics. The company manufactures microporous membranes for use in energy storage and separations applications. Polypore derives about 70% of revenues from separators for lead- acid batteries used in transportation and industrial applications as well as for disposable and rechargeable lithium batteries. The lead-acid market tends to be mature and stable, although growth opportunities exist in emerging markets. The lithium business benefits from strong growth prospects, but can be volatile. Polypore's other business includes filtration membranes used by makers of health-care, food and beverage, and industrial separations equipment. Headquartered in Charlotte, North Carolina, Polypore International Inc., is develops, manufactures and markets specialized polymer-based membranes used in separation and filtration processes. The company is managed under two business segments. The energy storage segment, which currently represents approximately two-thirds of total revenues, produces separators for lead-acid and lithium batteries. The separations media segment, which currently represents approximately one- third of total revenues, produces membranes used in various health care and industrial applications. The company has operations in Australia, Germany and Brazil. REALOGY CORP: Closes Change of Control Offer for US$1.2BB Notes --------------------------------------------------------------- Realogy Corporation has closed its change of control offer for any and all of its outstanding: a) US$250,000,000 principal amount of Floating Rate Senior Notes due 2009; b) US$450,000,000 principal amount of 6.15% Senior Notes due 2011; and c) US$500,000,000 principal amount of 6.50% Senior Notes due 2016. As required by the Notes and the indenture governing the Notes, the purchase price with respect to each series of Notes equaled 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. Based upon final results from the depositary for the tender offer, of the US$1.2 billion aggregate principal amount of the Notes outstanding, Realogy purchased approximately US$1 billion, consisting of approximately US$230,000,000 principal amount of Floating Rate Senior Notes due 2009, US$324,245,000 of the principal amount of 6.15% Senior Notes due 2011 and US$448,500,000 of the principal amount of 6.50% Senior Notes due 2016. Realogy effected payment of the validly tendered Notes on July 9, 2007 by depositing immediately available funds with the depositary, Wells Fargo Bank, National Association, which in turn is required to transmit payment to tendering holders of Notes. To finance the purchase of the Notes, Realogy utilized a portion of the delayed draw term loan subfacility under the senior secured credit facility it established in April 2007. The change of control offer was made pursuant to Realogy's obligations under the indenture governing the Notes, which requires Realogy to make an offer to purchase the Notes after a "change of control triggering event." A "change of control triggering event" occurred on April 10, 2007 as a result of (i) the "change of control" that resulted on that date from the consummation of Realogy's merger with an affiliate of Apollo Management L.P. and (ii) the lowering of the ratings for the Notes to below investment grade by both Moody's Investors Service, Inc. and Standard & Poor's Rating Services in March 2007. About Realogy Corp. Headquartered in Parsippany, New Jersey, 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. UNITED FIRESERVICES: Members Resolve to Liquidate Business ---------------------------------------------------------- At an extraordinary general meeting held on June 25, 2007, the members of United Fireservices Pty Limited resolved to liquidate the company's business. Raymond George Tolcher and Rowena Margaret Sigelski of Lawler Partners were appointed as liquidators. The Liquidators can be reached at: Raymond George Tolcher Rowena Margaret Sigelski c/o Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West, New South Wales 2302 Australia About United Fireservices United Fireservices Pty Limited is involved with electrical work. The company is located in New South Wales, Australia. ================================ C H I N A & H O N G K O N G ================================ AMERICAN HARDWOOD: Names Au Yuen Fan, Candy, as Liquidator ---------------------------------------------------------- On July 6, 2007, Au Yuen Fan, Candy was tapped as liquidator for American Hardwood Company Limited. The Liquidator can be reached at: Au Yuen Fan, Candy Star House, Room 1202-3 3 Salisbury Road, Kowloon Hong Kong ANDREW CORPORATION: Submits Pre-merger Notification Filings ----------------------------------------------------------- CommScope Inc. and Andrew Corporation submitted their pre-merger notification filings as required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the proposed acquisition by CommScope Inc. of Andrew Corp. In connection with the proposed merger, CommScope intends to file a registration statement with the Securities and Exchange Commission on Form S-4 and CommScope Inc. and Andrew Corp. expect to mail a proxy statement/ prospectus to Andrew Corp.'s stockholders containing information about the merger. The registration statement and the proxy statement/prospectus will contain important information about CommScope Inc., Andrew Corp., the merger, and related matters. As reported in the Troubled Company Reporter on June 29, 2007, CommScope Inc. and Andrew Corporation entered into a definitive agreement on June 27, 2007, unanimously approved by their respective Boards of Directors, under which CommScope will acquire all of the outstanding shares of Andrew for US$15.00 per share, at least 90% in cash, creating a global leader in infrastructure solutions for communications networks. The transaction, which is valued at approximately US$2.6 billion, is expected to be accretive to CommScope's cash earnings per share, excluding special items, in the first full year after closing. The US$15.00 per share purchase price represents a premium of approximately 13% over Andrew's average closing share price for the last 30 trading days, a 21% premium over Andrew's average closing share price for the last 60 trading days, and a 16% premium over the closing price of Andrew's common stock on June 26, 2007. About CommScope Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) -- http://www.commscope.com/-- designs and manufactures "last mile" cable and connectivity solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions. CommScope has facilities in Brazil, Australia, China and Ireland. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including, among others, manufacturing locations in in China and India. Andrew is an S&P 500 company founded in 1937. * * * The Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services revised its CreditWatch implications on Andrew Corp. to positive from negative. The 'BB' corporate credit and 'B+' subordinated debt ratings were placed on CreditWatch with negative implications on Aug. 10, 2006. ANDREW CORPORATION: Inks Second Amendment to Credit Agreement ------------------------------------------------------------- Andrew Corporation, as of July 13, 2007, entered into a Second Amendment to Credit Agreement with certain financial institutions named in the Second Amendment and Bank of America, National Association, as Administrative Agent, for the Lenders and as L/C Issuer. The Second Amendment amends in certain respects Andrew's Credit Agreement dated as of Sept. 29, 2005, as amended by a First Amendment to Credit Agreement dated as of June 16, 2006. The Second Amendment amended the Credit Agreement such that any agreement entered into by Andrew and CommScope, Inc. in furtherance of the proposed merger between them would not be taken into account for purposes of determining if a change of control of Andrew had occurred until the earlier to occur of the date of the consummation of the CommScope Merger Transaction and March 31, 2008, unless the agreements concerning the CommScope Merger Transaction have been previously terminated. In addition, the Administrative Agent and Lenders also waived any event of default under the Credit Facility occurring due to a change of control of Andrew resulting from any agreement entered into between Andrew and CommScope in furtherance of the CommScope Merger Transaction until the earlier to occur of the date of the consummation of the CommScope Merger Transaction and March 31, 2008. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including, among others, manufacturing locations in in China and India. Andrew is an S&P 500 company founded in 1937. * * * The Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services revised its CreditWatch implications on Andrew Corp. to positive from negative. The 'BB' corporate credit and 'B+' subordinated debt ratings were placed on CreditWatch with negative implications on Aug. 10, 2006. BALLY TOTAL: Inks Restructuring Support Pact w/ Sr. Noteholders --------------------------------------------------------------- Holders of a majority of Bally Total Fitness Holding Corp.'s 10-1/2% Senior Notes due 2011 and more than 80% of its 9-7/8% Senior Subordinated Notes due 2007 have entered into a Restructuring Support Agreement agreeing to, following receipt of a disclosure statement, vote in favor of a plan of reorganization. The company says that the Plan will further enhance its liquidity by increasing the rights offering to US$90 million and by allowing the company to retain the cash which would have been used for the July 15, 2007 interest payment due on the Senior Notes. With its Restructuring Support Agreement in place, the company believes it has sufficient support from its noteholders to proceed to implement the Plan through appropriate bankruptcy proceedings and expects to make its Chapter 11 filing in the near future. The company plans to continue normal club operations during the pendency of the anticipated bankruptcy case and will seek to emerge from bankruptcy as quickly as possible. Don R. Kornstein, Interim chairman and Chief Restructuring Officer, stated, "We are pleased to have such strong support for the Plan from both our senior and senior subordinated noteholders. The Restructuring Support Agreement will enable us to expedite our work on restoring the strength of our balance sheet in the shortest time possible, and positioning Bally Total Fitness to compete over the long term. We look forward to emerging from bankruptcy with a greater ability to invest in and continue upgrading our fitness centers and to focus on building the Bally brand." Pursuant to the Restructuring Support Agreement, the Plan will provide that: * The Senior Notes will be modified, including an increase in the annual interest rate to 12-3/8% effective from July 16, 2007. The cash interest payment on the Senior Notes due July 15, 2007 will not be made. Upon effectiveness of the Plan, the new principal amount of the outstanding Senior Notes will be US$247,337,500, with the increase distributed pro rata to the holders of the Senior Notes. The maturity and guarantees of the Senior Notes would remain the same. Upon effectiveness of the Plan, holders of the Senior Notes would receive a fee equal to 2% of the face value of their notes on the date of the filing of the Chapter 11 cases. * The Senior Note Indenture would be amended to provide the holders with a "silent" second lien on substantially all assets of the company and the subsidiary guarantors. Under the amended Senior Note Indenture, the company would have a permitted debt basket for the senior credit facility of US$292 million, with a reduction for proceeds of asset sales completed after June 15, 2007 that are used to permanently pay down indebtedness under its senior credit facilities and are not reinvested in replacement assets within 360 days after the applicable asset sale. The Senior Note Indenture will also permit Bally to issue after emergence from bankruptcy and in addition to the securities referred to below, an additional US$90 million of pay-in-kind senior subordinated notes. The amended Senior Note Indenture also increases by US$50 million to a total of US$100 million the permitted debt basket for purchase money indebtedness and capital leases (with a US$50 million capital lease sublimit). The optional redemption schedule in the Senior Notes would be amended to permit the company to redeem the Senior Notes prior to July 15, 2008 at a: -- T+50 make whole premium (including all interest due and payable through July 15, 2008) based upon a redemption on July 15, 2008 at 106.25%; -- optional redemption at 106.25% until July 14, 2009; -- 102.50% until July 14, 2010; and -- 100% after July 14, 2010. The amended Senior Note Indenture would eliminate any requirement for filing of SEC reports, but would require the company to provide to investors and prospective investors SEC equivalent audited annual and unaudited quarterly financials, including MD&A and footnotes, and 8-K reportable events. * Consistent with the terms of the previously announced restructuring proposal, holders of Senior Subordinated Notes would receive, in exchange for their claims, new subordinated notes in the principal amount of US$150 million, representing 50% of the principal amount of their claims, and shares of common stock representing 100% of the equity in the reorganized company (subject to reduction for common stock to be issued to holders of certain other claims). The New Subordinated Notes would mature five years and nine months after the effective date of the Plan and would bear interest payable annually at 135/8% per annum if paid in kind or 12% per annum if paid in cash, at the company's option, subject to satisfaction of a toggle covenant based on specified cash EBITDA and minimum liquidity thresholds. * In addition, the holders of Senior Subordinated Notes would receive non-detachable rights to participate in a US$90 million rights offering of new senior subordinated notes. The Rights Offering Senior Subordinated Notes would rank senior to the New Subordinated Notes but otherwise have the same terms. * Holders of certain other claims against the company will be given the opportunity to participate in the rights offering, which, if exercised, would generate incremental proceeds beyond the US$90 million to be funded by electing Senior Subordinated Noteholders. * The company and its subsidiaries may reject selected leases and other contracts in the bankruptcy. * All existing equity would be cancelled for no consideration. * Effectiveness of the Plan is conditioned upon, among other things, the company having filed its Annual Report on Form 10-K for the year ended Dec. 31, 2006. A copy of the Restructuring Support Agreement will be included as an exhibit to a Current Report on Form 8-K that the company will file with the SEC. Tennenbaum Capital Partners, LLC and Anschutz Investment Company, through certain of their affiliates, and Goldman Sachs & Co., who collectively hold more than 80% of the Senior Subordinated Notes, have agreed in principle to subscribe for their pro rata share of the Rights Offering Senior Subordinated Notes and to purchase any Rights Offering Senior Subordinated Notes not subscribed for by other holders of Senior Subordinated Notes. As a result of these backstop provisions, the company will be assured of having US$90 million in additional cash availability upon the effectiveness of the Plan. Houlihan Lokey Howard & Zukin Capital acts as financial advisor and Akin Gump Strauss Hauer & Feld, LLP is counsel to the Ad Hoc Committee of Senior and Senior Subordinated Noteholders. About Bally Total Fitness Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com/-- is the largest and only United States-wide commercial operator of fitness centers, with over 400 facilities located in 29 states, in Canada, the United Kingdom, the Carribbean, Mexico and China. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers. As reported in the Troubled Company Reporter on April 19, 2007, Moody's Investors Service downgraded all the credit ratings of Bally Total Fitness Holding Corporation after its failure to make the April 16, 2007 interest payment on $300 million principal amount of senior subordinated notes. Additionally, Standard & Poor's Ratings Services held its ratings on Bally Total Fitness Holding Corp., including the 'CCC' corporate credit rating, on CreditWatch with developing implications, where they were placed on Dec. 2, 2005. BREAN DISTRIBUTORS: Wind-Up Petition Hearing Set for Aug. 1 ----------------------------------------------------------- The High Court of Hong Kong will hear a petition to wind up the operations of Brean Distributors Limited on August 1, 2007, at 9:30 a.m. The company filed the petition on April 24, 2007. The company's solicitor is: White & Case Central Tower, 9th Floor 28 Queen's Road, Central Hong Kong CELLON HONG KONG: Sets Creditors' Meeting for July 27 ----------------------------------------------------- The creditors of Cellon Hong Kong Limited will meet on July 27, 2007, at 11:00 a.m., for the purposes set out in Sections 199, 241, 242, 243, 244, 251(1)(a), 255A(2) and 283 of the Companies Ordinance. The meeting will be held in the office of Borelli Walsh Limited, on 1401, Level 14, Tower 1 of Admiralty Center at 18 Harcourt Road, in Hong Kong. CHINA EASTERN: Will Post Profit for 2007 First Half --------------------------------------------------- China Eastern Airlines Corp Ltd. (0670) said on July 22 that it will post a profit for the first half of 2007, The Standard reports, citing Dow Jones Newswires. Reuters notes that according to a statement by China Eastern, the first-half profits can be attributed to an improvement in operating profit and exchange gains due to the appreciation of the Chinese yuan. The Standard recounts that the airline had earlier forecast a loss after reporting a net loss for the first-quarter. This first quarter net loss -- CNY510.9 million -- was a decline from the CNY955.1-million net loss reported during the same period in 2006. According to The Standard, the Shanghai-based airline company said that its operating results will show an improvement in the second quarter, paving the way for a first-half operating profit. However, China Eastern did not say whether it will report a net profit on top of an operating profit. In June, Reuters points out, China Eastern Chairman Li Fenghua said that the airline expected to return to the black in the first half due to strong business growth, despite earlier warning that the net figure might remain in the red because of its high debt ratio and fierce market competition. China Eastern incurred a CNY1.72-billion net loss in the first half of 2006 amid high fuel prices and domestic competition, The Standard recalls. The company's shares have been suspended from trading since mid-May, along with Singapore Airlines. The Standard relates that SIA has confirmed that it is in advanced talks to buy a stake in China Eastern. According to sources familiar with the negotiations, SIA wants to buy between 17% and 20%, and that Singapore state investment company Temasek Holdings may buy 5%. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com/-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. Fitch Ratings gave China Eastern long-term issuer default, foreign currency long-term debt, and local currency long-term debt ratings of B+. Xinhua Ratings also gave the company a local currency long-term issuer credit rating of BB+. CHINA EASTERN: Plans to Buy 10 Airbuses for CNY4.64 Billion ----------------------------------------------------------- China Eastern Airlines Corp. Ltd. had agreed to buy 10 Airbus A320 series aircraft with engines from Airbus for an aggregate price of CNY4.64 billion (US$613 million), Reuters reports. Reuters cites China Eastern as saying in a statement last week that it would pay for the Airbuses through bank loans or other financial arrangements. The aircraft, according to the report, are expected to be delivered from March 2011 to June 2012. Reuters recounts that China Eastern said in June that it had signed a contract to buy 30 A320 passenger jets from Airbus for less than the CNY13.9 billion (US$1.74 billion) catalogue price of the planes. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com/-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. Fitch Ratings gave China Eastern long-term issuer default, foreign currency long-term debt, and local currency long-term debt ratings of B+. Xinhua Ratings also gave the company a local currency long-term issuer credit rating of BB+. COMEPHONE INDUSTRIAL: Court to Hear Wind-Up Petition on Sept. 12 ---------------------------------------------------------------- A petition to wind up the operations of Comephone Industrial Limited will be heard before the High Court of Hong Kong on Sept. 12, 2007, at 9:30 a.m. Baldwin & Ebenezer (Hong Kong) Limited filed the wind-up petition against the company on July 5, 2007. Baldwin & Ebenezer's solicitor is: Rowland Chow, Chan & Co. Wing Lung Bank Building, 15th Floor No.45 Des Voeux Road, Central Hong Kong FERRO CORP: Names Roland Simon as Chief Purchasing Officer ---------------------------------------------------------- Ferro Corporation has hired Roland Simon as its Chief Purchasing Officer. Mr. Simon joins Ferro after a 23-year career with Goodyear Tire and Rubber Company where he worked in a variety of locations and positions, most recently as General Manager, Chemicals Purchasing. He also served as Global Purchasing Manager for Goodyear's Services and Retail division and, working in Luxembourg, was Purchasing Director for European, Asian and African operations. Mr. Simon also acted as business manager and plant manager for operations in Germany, Luxembourg and the United Kingdom. Mr. Simon graduated from Washington and Lee University in Virginia with a Bachelor's degree in Physics and Engineering. He also holds an MBA from Durham Business School in County Durham, England. Mr. Simon reports to Vice President of Operations Tom Austin. He is based at Ferro's corporate headquarters in Cleveland. Headquartered in Cleveland, Ohio, Ferro Corporation -- http://www.ferro.com-- is a global producer of an array of performance materials sold to a range of manufacturers in approximately 30 markets throughout the world. Ferro applies certain core scientific expertise in organic chemistry, inorganic chemistry, polymer science and material science to develop coatings for ceramics and metal; materials for passive electronic components; pigments; enamels, pastes and additives for the glass market; glazes and decorating colors for the dinnerware market; specialty plastic compounds and colors; polymer additives; specialty chemicals for the pharmaceuticals and electronics markets, and active ingredients and high-purity carbohydrates for pharmaceutical formulations. The company's products are classified as performance materials, rather than commodities, because they are formulated to perform specific and important functions both in the manufacturing processes and in the finished products of its customers Ferro Corp. has global locations in Latin America, particularly in Argentina and Brazil. It also has operations in Australia and China in the Asia-Pacific region, and Belgium in Europe. The Troubled Company Reporter-Asia Pacific reported on Oct. 5, 2006, that Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. Standard & Poor's will resolve the CreditWatch after Ferro files its 2005 full year and 2006 quarterly financial statements, which are expected by Sept. 30th and Dec. 31st, respectively. Moody's Investors Service assigned a B1 corporate family rating to Ferro Corporation. Moody's also assigned a B1 rating to the company's $200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. IMPACT DESIGNS: Creditors' Proofs of Debt Due on August 10 ---------------------------------------------------------- Impact Designs Limited requires its creditors to file their proofs of debt by August 10, 2007. Creditors who cannot file their claims by the due date will be excluded from sharing in the company's dividend distribution. The company's liquidator is: Christopher Harvey Hall The Center, 31st Floor 99 Queen's Road, Central Hong Kong MAXBUSY GROUP: Taps Wing Muk and Middleton as Liquidators --------------------------------------------------------- Jacky Chung Wing Muk and Edward Simon Middleton were appointed as the liquidators for Maxbusy Group Company Limited on July 4, 2007. The Liquidators can be reached at: Jacky Chung Wing Muk Edward Simon Middleton KPMG Prince's Building, 8th Floor 10 Chater Road, Central Hong Kong ON BRIGHT DEVELOPMENT: Accepting Proofs of Debt Until Aug. 20 ------------------------------------------------------------- The creditors of On Bright Development Limited are required to file their proofs of debt by August 20, 2007, to be included in the company's dividend distribution. The company's liquidator is: Chan Wai Hei Sun Hung Kai Centre, Room 1021 30 Harbour Road, Wanchai Hong Kong PACIFIC PRECISION: Liquidators Quit Posts ----------------------------------------- Ying Hing Chiu and Chung Miu Yin, Diana ceased to act as liquidators of Pacific Precision Limited on July 16, 2007. The former Liquidators can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Three Pacific Place, Level 28 1 Queen's Road East Hong Kong PETROLEOS DE VENEZUELA: Taiwan's CPC To Defend Oil Rights --------------------------------------------------------- Published reports say that Taiwanese state-run oil firm CPC will negotiate with Venezuelan officials to defend its oil exploration rights in Venezuela, as the nation's state oil company Petroleos de Venezuela SA wants to buy back oil exploration rights of small investors who hold stakes of less than 10% in projects throughout Venezuela. Business News Americas relates that CPC allegedly invested some US$78 million on a 7% stake in the Paria East and Paria West blocks. BNamericas notes that US oil major oil company ConocoPhillips also held a stake in the Paria East block. However, the firm withdrew from Venezuela after failing to reach an accord with Petroleos de Venezuela to accept minority control in its projects. According to BNamericas, Petroleos de Venezuela nationalized projects in the Orinoco heavy crude belt. It required 60% stakes in joint ventures operating in the region. "We definitely cannot accept Venezuela's request to take over our two oil fields. We won't, even if Venezuela offers higher prices, because oil is more important than money," reports say, citing CPC head Chen Pao-lang. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. RED BEAN: Sets Wind-Up Petition Hearing for July 25 --------------------------------------------------- On May 23, 2007, webMethods Hong Kong Limited filed a petition to wind up the operations of Red Bean Technology Limited. The petition will be heard before the High Court of Hong Kong on July 25, 2007, at 9:30 a.m. webMethods' solicitor is: Lovells Cheung Kong Center, 23rd Floor 2 Queen's Road, Central Hong Kong SHIMAO PROPERTY: Fitch Assigns 'BB+' LT Issuer Default Rating ------------------------------------------------------------- Fitch Ratings has assigned a Long-term Foreign Currency Issuer Default Rating of 'BB+' to China-based Shimao Property Holdings Limited. Simultaneously, Fitch has assigned issue ratings of 'BB+' to Shimao's US$350 million senior notes due 2016 and USD250m senior floating rate notes due 2011, respectively. The Outlook for the IDR is Stable. Shimao's IDR is constrained by its concentration in the property development sector. Market downturn may result in a rapid deterioration in sales and saddle it with inventory. The evolving regulatory environment adds further uncertainty. In addition, due to its rapid business growth, Shimao generated negative free cash flow in 2005 and 2006. In 2006, working capital outflow increased to around CNY6 billion. Free cash flow generation in the next two to three years will be subject to the level of pre-sale activities and inventory build up. Shimao's ratings are underpinned by its large well-located land bank, sound profit margins, and the positive outlook for the residential property sector. Shimao's land bank is sufficient for the sustainable growth of its business over the next six to seven years and is concentrated in the prosperous Yangtze River Delta, with limited exposure to Shanghai. Fitch views this limited exposure to Shanghai positively as property prices in Shanghai are more volatile. Given its relatively low land acquisition costs and large scale development, Shimao is expected to maintain or improve on its operating profit margin. The agency notes that the overall positive trend in the residential property market is well supported by rising disposable household income, the availability of mortgage lending, and an accelerated rate of urbanisation. In addition, the potential volatility in Shimao's operating cash flow may reduce slightly as its revenue base shifts towards property investment and hotel operations. However, the agency notes that income from hotels, which makes up a bigger share of Shimao's recurring income, may not be as stable as rental income from retail or office properties, which are driven by longer term contracts. Financial leverage, as measured by FFO Net Adjusted Leverage, was a low 1.2x at end-2006, and is likely to rise and remain above 2x in the next two to three years given the company's rising working capital needs and business expansion. Shimao's liquidity, however, is not a concern in the near term. At end- 2006, Shimao had cash holdings of CNY6 billion, which provided good coverage of its current debt of CNY1.6 billion. Debt and equity issuance exercises in 2006, which raised a total of approximately CNY9 billion, demonstrate Shimao's sustained ability to access the capital markets for financing. On June 6, 2007, Shimao submitted a proposal to acquire Shanghai Shimao Company Limited. The purchase consideration will be satisfied by CNY750 million in cash and the injection of 12 commercial property projects, which will not generate significant contribution in the near term. Post-acquisition, Shimao will hold a 65% stake in SSC, which will become the flagship of Shimao's commercial property operations. Fitch has a moderately positive view on the acquisition for the following reasons: 1) the impact of the initial outlays will be mitigated by the fact that development expenditure will be funded at the SSC level; 2) a new funding channel has opened following SSC's listing in China; and 3) there is now more clarity to the corporate structure. The Stable Outlook reflects Fitch's expectations that Shimao will continue to maintain a stable credit profile, underpinned by its solid business profile and satisfactory credit metrics. Any significant adverse change in the regulatory environment, sharp drop in profit margins and/or accelerated debt-funded land bank acquisitions may result in a negative rating action. On the other hand, significant increases in recurring income, proven track record on investment property portfolio, or sustained free cash flow generation are potential positive rating triggers. Shimao is a leading mainland China-based property developer, with a primary focus on the high-end residential property markets in Yangtze River Delta, with minor exposure to other provinces along the Chinese coastal seaboard. The company is also engaged in property investment and hotel operations. Shimao is listed on the Hong Kong Stock Exchange and is 58%- owned by Mr Wing-Mui Hui. TEKSID ALUMINUM: Gets Necessary Consents to Amend Indenture ----------------------------------------------------------- Teksid Aluminum Luxembourg S.a r.l., S.C.A disclosed that that, as of 12:00 p.m., New York City time (5:00 p.m., London time), on Wednesday, July 18, 2007, consents representing approximately 85% of the EUR205,598,000 aggregate principal amount of its outstanding 11-3/8% Senior Notes due 2011 have been validly delivered pursuant to its previously announced solicitation of consents to implement certain proposed amendments to the indenture governing the Senior Notes and to give effect to a waiver of any Default or Event of Default arising from and any claims relating to the Company's failure to comply with the sixth paragraph of Section 11.15(b)(i) of the Indenture. Consequently, the Company, the note guarantors and the trustee executed a supplemental indenture on Tuesday, July 17, 2007. Accordingly, the proposed amendments have become operative in accordance with their terms and the Waiver has become effective. The consent solicitation expired on Thursday, July 18, 2007 at 10:00 a.m., New York City time (3:00 p.m., London time). The indenture amendments: (a) extend the time by which offers to purchase Senior Notes after the sale of each of Teksid Aluminum Poland S.p. z.o.o., the Company's indirectly held minority equity interest in Nanjing Teksid Aluminum Foundry and the Company's equity interest in Cevher Dokum Sanayi A.S. are to be made to no later than Aug. 15, 2007, (b) extend the time by which offers to purchase Senior Notes with each of the Fiat Payment and the Escrow Amount are to be made to no later than ten (10) business days after receipt of each such payment, but in no event prior to Aug. 15, 2007, and (c) allow the payment of the interest due and unpaid on the Senior Notes on or about July 15, 2007, together with required interest on such unpaid interest to be deducted from the proceeds to be used to fund such tender offers. The Company expects to make an interest payment in the amount of EUR12,735,555.28 on July 19, 2007. About Teksid Aluminum Headquartered in Bermuda, Teksid Aluminum -- http://www.teksidaluminum.com/-- is a leading independent manufacturer of aluminum engine castings for the automotive industry. Principal products include cylinder heads, engine blocks, transmission housings and suspension components. The company operates 15 manufacturing facilities in Europe, North America, South America and Asia. The company maintains operations in Italy, Brazil and China. * * * The Troubled Company Reporter-Asia Pacific reported that Standard & Poor's Ratings Services lowered its long-term corporate credit rating to 'CCC-' from 'CCC+' on Bermuda- incorporated TK Aluminum Ltd., a manufacturer of aluminum auto parts. The rating remains on CreditWatch with developing implications, where it was placed on Nov. 6, 2006. The developing implications mean that the rating could be raised, lowered, or affirmed. The Troubled Company Reporter-Europe reported on May 9, 2007 that Moody's Investors Service confirmed the Caa3 Corporate Family Rating of Teksid Aluminum Ltd as well as the Ca rating of the company's senior notes at Teksid Aluminum Luxembourg Sarl SCA with a stable outlook. WORLD SHINE: Ng Hon Wai Derek Quits Liquidator Post --------------------------------------------------- Ng Hon Wai Derek quit as liquidator of World Shine International Trading Limited on July 10, 2007. The former Liquidator can be reached at: Ng Hon Wai Derek 1803 Sunbeam Commercial Building 469-471 Nathan Road, Kowloon Hong Kong * Pressure for Less Surplus Will Increase Policy Risks, S&P Says ---------------------------------------------------------------- Standard & Poor's says that China's trade balance is set to post another record surplus in 2007, which is likely to intensify external pressure on China to rein in its trade surplus. This in turn will increase the risk of China imposing more administrative policy measures, including direct restrictions on exports, to address the problem. Such actions could create new economic distortions and future policy problems for China, according to a report published today by Standard & Poor's Ratings Services titled "Pressure On China To Narrow Its Trade Surplus Will Increase Policy Risks". "Thus far, the Chinese authorities' actions to curb the country's external surplus are likely to benefit the economy," said Standard & Poor's credit analyst Kim Eng Tan. "Recent policy changes have largely removed or will remove measures that favor export industries over those that cater to the domestic market. These changes will in turn remove economic distortions that prevent a balanced development of the Chinese economy." However, these measures are unlikely to have a significant short-term impact on the trade surplus. For one, many of these policies promote structural adjustments that only show their effects with a significant time lag. Moreover, the recent trend in the trade surplus may have more to do with exchange rate expectations than China's trade competitiveness. "The disparity between China's expenditure-based aggregate demand and production-based GDP has risen sharply since 2005," said Mr. Kim Eng Tan. "This suggests that a part of the country's exports cannot be accounted for by production data. Hence, there is a possibility that a part of the increase in the trade surplus merely reflects disguised capital inflows." The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at http://www.ratingsdirect.com/ ========= I N D I A ========= BHARTI AIRTEL: Members Appoint S.R. Batliboy as New Auditors ------------------------------------------------------------ Bharti Airtel Ltd's members at its annual general meeting on July 19, 2007, passed a resolution appointing S R Batliboy & Associates, Chartered Accountants, New Delhi, to replace Price Waterhouse, Chartered Accountants, New Delhi. The new auditors will hold office starting from the conclusion of the AGM until the conclusion of the next AGM. Additionally, pursuant to passed resolutions, the company's members agree to the: 1. adoption of the audited balance sheet of the company as at March 31, 2007, the profit & loss account, the cash flow statement for the year ended on that date, and the report of the board of directors and auditors on those financial statements; 2. reappointment of Kurt Hellstrom, N. Kumar, Paul O'Sullivan, and Pulak Prasad, as directors liable to retire by rotation; and 3. appointment of Francis Heng as director liable to retire by rotation. 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. CABLE & WIRELESS: Digicel Files Claims for Unlawful Behavior ------------------------------------------------------------ Cable and Wireless plc confirmed that it received a claim from Digicel Group Ltd. for unspecified damages. However, C&W believes the claim is without foundation and it will be vigorously defended. C&W is gaining market share in the Caribbean where it is a market leader in 10 out of 14 of its markets. It believes that the claim is no more than a deliberate spoiling tactic by Digicel. On July 19, 2007, Digicel issued a claim in the English High Court against C&W and various of its subsidiaries, seeking multi-million pound damages. Digicel claims that C&W was engaged in illegal behavior by impeding and delaying Digicel's entry into various telecommunications markets in the English-speaking Caribbean. Digicel also believes that it has been the victim of a co- ordinated effort on C&W's part to prevent and delay Digicel launching competing mobile telephone networks in St. Lucia, St. Vincent & the Grenadines, Grenada, Barbados, the Cayman Islands, Trinidad & Tobago and the Turks and Caicos Islands. The obstructions and delays by C&W, between 2002 and 2006, have resulted in substantial damages and as a result Digicel's claim covers: * Losses of revenue, profits and market share; * Restitutionary damages from C&W for the gains and benefits made by C&W as a result of its unlawful conduct and; * Exemplary damages (compensation in excess of actual damages) and interest. The damages sought by Digicel should amount to several hundreds of millions of pounds. It is expected that the claim will come to the High Court in 2008. "We are extremely frustrated with the continual illegal obstructions that we have encountered from C&W," Digicel Chairman Denis O'Brien said. "We believe that a successful claim will not only compensate Digicel for the losses it has suffered but also that it will put an end to the anti- competitive practices of C&W. This will be of undoubted benefit to all network operators and more importantly all mobile users in the Caribbean." About Digicel Digicel Group Ltd. -- http://www.digicelgroup.com/-- is a wireless services provider in the Caribbean region. The company is a newly created Bermuda incorporated company formed by Mr. Denis O'Brien, who previously owned 78% of the shares of Digicel Limited on a fully diluted basis. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in 22 markets primarily in the Caribbean including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and Haiti among others. About Cable & Wireless Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% ESSAR OIL: Strikes Oil at Mehsana Onshore Basin in Gujarat ---------------------------------------------------------- Essar Oil Limited has struck oil in an onshore exploration block in the state of Gujarat, a second discovery in the Mehsana onshore basin, the United Press International reports, citing a company statement. The company first found oil in that onshore basin last March. The in-place reserves for the company's first discovery were an estimated 18 million barrels of oil and oil equivalent per day with recoverable reserves in the range of 2.8 million barrels of oil equivalent a day, UPI relates. The company believes the new find is of the same magnitude, promising daily production of 300-400 barrels of oil. India's Directorate of Hydrocarbons has confirmed the discovery, noting that the crude oil that the company discovered is heavy. Headquartered in Gujarat, India, Essar Oil Limited -- http://www.essar.com/-- is a fully integrated oil company of international size and scale, covering the entire value chain from exploration and production to refining and retailing of oil. Essar has set up over 900 retail outlets, which are fully operational and plans to set up 2500 retail outlets by the end of 2007. Essar Oil employs highly qualified and experienced technical staff at its refinery. * * * Essar Oil has incurred at least two years of consecutive net losses. The company recorded a net loss of INR555.9 million for the financial year ended March 31, 2007, a 41% decrease from the INR936.8 million net loss incurred a year ago. On Aug. 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65-billion and INR2-billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. GENERAL MOTORS: Reports Global 2nd Qtr. Sales of 2.4MM Vehicles --------------------------------------------------------------- General Motors Corp. sold 2.405 million cars and trucks around the world in the second quarter of 2007, reporting record sales outside the United States, according to preliminary sales figures. GM sold 2.395 million vehicles in the second quarter last year. "GM's second quarter sales were driven by exceptionally strong demand in emerging markets," John Middlebrook, GM vice president, Global Sales, Service and Marketing Operations, said. "GM global sales of 4.67 million vehicles for the first half of the year reflects solid results, in fact we're on track to have our second-best annual sales performance in our almost 100-year history. In the second quarter we experienced record sales growth around the globe including 20% growth in Latin America, Africa and the Middle East -- an all-time quarterly record for that region, and 8% growth in the Asia/Pacific region. We're also pleased to see almost 5% growth in Europe where we sold more than 574,000 vehicles." Chevrolet global sales of 1.13 million vehicles in the second quarter of 2007 were up more than 4,000 vehicles compared with a year ago. The brand grew by 34% in Europe, 24% in Latin America, Africa and the Middle East and 3% in Asia-Pacific. Saturn sales in the United States and Canada were up 27%, based largely on the popularity of three new vehicles, the Sky roadster, Aura mid-car and Outlook mid-utility crossover vehicle. Saturn is launching the all-new Vue small utility crossover and soon will introduce the Astra small car. Saturn has two hybrid offerings in its lineup, the Aura Green Line and Vue Green Line. Second quarter sales outside the United States has set a record. At 1.39 million vehicles, Q2 2007 sales outside of the United States accounted for about 58% of GM's total global sales, growing at close to 8% compared with Q2 2006, outpacing the industry average growth rate of 6%. In the Latin America, Africa and Middle East region, GM sales surged to 293,300 vehicles, up 20% in volume compared with 2006, which set the industry and GM record for the second quarter. Sales in Brazil were up 23% for the quarter. In the Asia/Pacific region, GM sales of 338,000 vehicles were 8% higher than the previous year's second quarter, and were a record for the quarter. GM China sales of 234,000 vehicles posted a more than 6% sales increase compared with 2006. GM remained the top-selling automaker in China. With these results, GM is on track to become the first manufacturer in China to exceed one million vehicles sold annually. GM's sales in China include sales by SAIC-GM-Wuling, in which GM owns the maximum permissible interest for a foreign company, 34%. In Europe, GM also set a quarterly sales record with deliveries of 574,000 vehicles, up 5%. Growth in Russia, up 106%, led the increase. Chevrolet achieved record European sales of 114,900 vehicles, up 34%, and is fueling GM's growth in Russia. Vauxhall sales strength in the UK helped offset significant reductions in the German market, keeping Opel/Vauxhall share in Europe at 7.4% for the first half of the year. In North America, planned reductions in daily rental sales and softness in the U.S. market due to increasing fuel prices and concerns about housing, resulted in sales of 1.2 million vehicles, a decline of 7% compared with a strong quarter the previous year. Despite a competitive market for full-size pickups, GM continues to show pickup truck segment leadership with share gains in the quarter thanks to the North America Truck of the Year Chevrolet Silverado and all-new GMC Sierra. GM's mid-car and mid-utility crossover segments also saw retail sales gains on the strength of mid-cars Saturn Aura, Pontiac G6 and Chevrolet Impala, and mid-utility crossovers GMC Acadia, Saturn Outlook and Buick Enclave. 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, including Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on 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, according to Moody's. GENERAL MOTORS: Labor Talks to Aid Turnaround of U.S. Business -------------------------------------------------------------- General Motors Corp. expects labor negotiations with unions to help boost its struggling business in the U.S. as both parties explore ways to cut costs, Reuters reports, quoting GM Chief Executive Rick Wagoner. "We will improve results in the United States faster than people think," Mr. Wagoner said after disclosing new investment plans in Brazil and Argentina, Reuters notes. 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, including Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on 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, according to Moody's. ICICI BANK: Books INR775 Cr. Profit in 1st Quarter Ended June 30 ---------------------------------------------------------------- The board of directors of ICICI Bank Limited has approved the audited accounts of the Bank for the quarter ended June 30, 2007 (Q1-2008). Highlights * Operating profit increased 58% to INR1,524 crore (US$374 million) in Q1-2008 from INR965 crore (US$237 million) in Q1-2007. * Profit after tax increased 25% to INR775 crore (US$190 million) in Q1- 2008 from INR620 crore (US$152 million) in Q1-2007. * Fee income increased 35% to INR1,428 crore (US$351 million) during Q1-2008 from INR1,055 crore (US$259 million) in Q1- 2007. * Net interest income increased 16% to INR1,714 crore (US$421 million) from INR1,475 crore (US$362 million) in Q1-2007. * Profit before tax increased 30% to INR972 crore (US$239 million) in Q1-2008 from INR749 crore (US$184 million) in Q1-2007. * Total advances increased 35% to INR198,277 crore (US$48.7 billion) at June 30, 2007 from INR147,184 crore (US$36.2 billion) at June 30, 2006. * Deposits increased 26% to INR230,788 crore (US$56.7 billion) at June 30, 2007 from INR183,006 crore (US$45.0 billion) at June 30, 2006. Capital Raising The Bank successfully undertook a capital raising exercise of about INR20,000 crore (US$4.9 billion) through a simultaneous public issue in India and issue of American Depositary Shares (ADS) in the United States. This was the largest capital raising exercise by an Indian company. The domestic offering was subscribed 11.5 times. Operating Review Credit Growth The Bank's total advances increased 35% to INR198,277 crore (US$48.7 billion) at June 30, 2007, from INR147,184 crore (US$36.2 billion) at June 30, 2006. The Bank's retail advances increased by 29% to INR127,416 crore (US$31.3 billion) at June 30, 2007 from INR98,684 crore (US$24.2 billion) at June 30, 2006 after sell-down of about INR3,850 crore (US$946 million) of retail loans during Q1-2008. Retail advances constituted 64% of advances at June 30, 2007. The proportion of advances of the Bank's international branches in total advances increased from 9.1% at June 30, 2006 to 16.4% at June 30, 2007. The Bank is focusing on fee based products and services, as well as utilising opportunities presented by the domestic and international expansion of Indian companies. The Bank's rural portfolio increased by 24% to about INR14,136 crore (US$3.5 billion) at June 30, 2007 from INR11,368 crore (US$2.8 bn) at June 30, 2006. The Bank is also extending its reach in the small and medium enterprises segment. Deposit Growth The Bank's total deposits increased 26% to INR230,788 crore (US$56.7 billion) at June 30, 2007 from INR183,006 crore (US$45.0 billion) at June 30, 2006. During this period, savings deposits increased by 33% to INR32,121 crore (US$7.9 billion) from INR24,217 crore (US$5.9 billion). The Bank added 198 ATMs during the quarter, taking the number of ATMs to 3,469. The Bank had 950 branches (including 48 extension counters) at June 30, 2007. International Operations The Bank has wholly-owned subsidiaries, branches and representative offices in 17 countries, and an offshore banking unit in Mumbai. The total assets of the Bank's international branches increased to about INR53,550 crore (US$13.2 billion) at June 30, 2007 from about INR32,000 crore (US$7.9 billion) at June 30, 2006. The total assets of the Bank's international banking subsidiaries increased to about INR36,100 crore (US$8.9 billion) at June 30, 2007 from about INR16,500 crore (US$4.1 billion) at June 30, 2006. The Bank's remittance business volumes were about INR8,500 crore (US$2.1 billion) during Q1-2008. ICICI Bank UK's profit after tax for Q1-2008 was US$18.7 million. At June 30, 2007 the Bank's international operations accounted for about 20% of its consolidated banking assets. Capital Adequacy The Bank's capital adequacy at June 30, 2007 was 11.0%, including Tier-1 capital adequacy of 7.1%. The impact of the equity capital raised in June 2007 will be reflected from the next quarter onwards. Asset Quality At June 30, 2007, the Bank's net non-performing assets constituted 1.3% of net customer assets. Full-text copies of the bank's audited results for the first quarter ended June 30, 2007, is available for free at the United States Securities and Exchange Commission at: http://ResearchArchives.com/t/s?21c1 Insurance and Asset Management Subsidiaries ICICI Prudential Life Insurance Company (ICICI Life) continued to maintain its market leadership among private sector life insurance companies with a market share of 25% on the basis of weighted received new business premium in April-May 2007. Life insurance companies worldwide make losses in the initial years, in view of business gestation and customer acquisition costs as well as reserving for actuarial liability. While the growing operations of ICICI Life resulted in an accounting loss of INR242 crore (US$59 million) in Q1-2008 on account of the above reasons, the company's unaudited New Business Achieved Profit (NBAP) in Q1-2008 was INR165 crore (US$41 million). NBAP is a metric for the economic value of the new business written during a defined period. It is measured as the present value of all the future profits for the shareholders, on account of the new business based on standard assumptions of mortality, expenses and other parameters. Actual experience could differ based on variance from these assumptions especially in respect of expense overruns in the initial years. ICICI Lombard General Insurance Company (ICICI General) maintained its leadership position with a market share of about 32% among private sector general insurance companies and an overall market share of about 12% during April-May 2007. ICICI General's profit after tax was INR45 crore (US$11 million) in Q1-2008. At June 30, 2007, ICICI Prudential Asset Management Company (ICICI AMC) was among the top two-asset management companies in India with assets under management of about INR43,650 crore (US$10.7 billion). ICICI AMC's profit after tax was INR28 crore (US$7 million) in Q1-2008. About ICICI Bank India-based ICICI Bank Ltd -- http://www.icicibank.com/-- is a diversified financial company that provides a range of banking and financial services to customers, including retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking, and treasury products and services. The bank operates in two business segments: consumer and commercial banking, and investment banking. ICICI has a network of over 741 branches and over 3,300 ATMs in India. The bank has operations in Russia and the United States. * * * Moody's Investors Service, on Apr. 24, 2007, said that ICICI Bank 's Foreign Currency Deposit Rating is unchanged at Ba2. ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB' Subordinated Debt Rating. IFCI LTD: Turns Around With INR2.47BB Profit in 1st Qtr. FY2008 --------------------------------------------------------------- In the first quarter ended June 30, 2007, IFCI Limited turned around with a profit of INR2.47 billion compared to the INR156.1-million loss booked in the same quarter last year. IFCI's revenues soared 89% to INR4.86 billion, comprised of INR3.5 billion in interest income and INR1.36 billion in other income. The company booked interest expense and operating expenses totaling INR1.92 billion, hence an operating profit of INR2.93 billion in 1Q FY2008. The company recorded depreciation expenses of INR16.8 million, taxes of INR656.2 million, and provisions of INR207.8 million. A copy of the company's financial results for the first quarter ended June 30, 2007, is available for free at: http://ResearchArchives.com/t/s?21c2 IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating at '4'. The outlook on the rating is stable. NCO GROUP: Launches Exchange Offers for US$365 Million Sr. Notes ---------------------------------------------------------------- NCO Group Inc. has commenced an offer to the holders of its: -- Floating Rate Senior Notes due 2013 (CUSIP No. 144A: 628858 AE 2, ISIN No. 144A: US628858AE21); and -- 11.875% Senior Subordinated Notes due 2014 (CUSIP No. 144A: 628858 AF 9, ISIN No. 144A: US628858AF95; CUSIP No. Reg. S: U6376M AC 5, ISIN No. Reg. S: USU6376MAC56); to exchange the Outstanding Notes for like principal amount of its US$165 million principal amount Floating Rate Senior Notes due 2013 and its US$200 million principal amount 11.875% Senior Subordinated Notes due 2014, which have been registered under the Securities Act of 1933, as amended. The Outstanding Notes were sold in a private placement by the company, which was completed in November 2006. The company was required to carry out the Exchange Offer under the terms of agreements entered into in the private placement. The Exchange Offer is scheduled to expire at 5:00 p.m., New York City time, on Aug. 15, 2007, unless extended by the company. The exchange agent for the exchange offer is The Bank of New York. Holders of the Outstanding Notes may obtain further information by calling The Bank of New York at 212-815-5098, or by facsimile at 212-298-1915. Headquartered in Horsham, Pennsylvania, NCO Group Inc. -- http://www.ncogroup.com/-- provides business process outsourcing services including accounts receivable management, customer relationship management and other services. NCO provides services through over 100 offices in the United States, Canada, the United Kingdom, Australia, India, the Philippines, the Caribbean and Panama. * * * NCO Group carries Moody's Investor Service's B2 long term corporate family rating and probability of default rating. The outlook is stable. The company also carries Standard & Poor's B+ long term foreign and local issuer credit rating. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Enters Into Services Agreement With NCR Corp. ------------------------------------------------------------- Alcatel-Lucent has entered into an agreement with NCR Corporation to provide on-site installation and maintenance services for Alcatel-Lucent enterprise communications customers in North America. The agreement demonstrates Alcatel-Lucent's commitment to providing unrivalled service to both its direct customers and those served by its third party distribution channels. Through its relationship with NCR, Alcatel-Lucent will expand its local service delivery capability, providing installation and maintenance to customers in previously under-served geographic areas. Additionally, NCR will join Alcatel-Lucent to meet the stringent, secure service requirements of large, multi- site customers. NCR has a strong, well-respected presence in North America and its significant experience in enterprise markets will enhance Alcatel-Lucent's current services offering. "Service delivery partnerships are important to end users because the quality of the organization doing the installation, service and support is as important as the quality of the equipment they buy," commented Jay Lassman, research director with Gartner. Under the agreement with NCR, Alcatel-Lucent distributors and service providers will continue to offer support packages directly to customers, and will be able to draw from the expertise, resources, and physical presence of two multibillion- dollar service organizations. "NCR is pleased that our widely distributed and experienced service organization will be supporting Alcatel-Lucent's customers in North America. By providing faster response to critical on-site requests, NCR will enable Alcatel-Lucent to more effectively meet the service requirements of their larger enterprise clients," said Christine Wallace, Senior Vice President, NCR Worldwide Customer Services. "In addition, this agreement demonstrates NCR's commitment to provide industry leading service delivery on converged technologies in the enterprise space." "Whether you're a small business or a large enterprise with many branch offices, your communications network is an increasingly critical part of your business - and timely service and support is key," said Hubert de Pesquidoux, President of Alcatel-Lucent Enterprise activities. "By teaming with NCR, we're able to offer the timely response necessary to meet our customers' business-critical service needs." Alcatel-Lucent expects to deploy its expanded services program under the agreement with NCR by the fourth quarter of 2007. 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 DANAMON: Launches Dirham Credit Card With MasterCard --------------------------------------------------------- PT Bank Danamon Indonesia Tbk launched the Dirham Card, the first ever syariah card in Indonesia which uniquely offers the full functionality and benefits of a conventional credit card while the relationship among transacting parties is based on syariah regulations. "As a major milestone of our business this year, the introduction of the Dirham Card is intended to complete our range of card offerings to our customers," stated Sebastian Paredes, President Director of Bank Danamon. "This business initiative also demonstrates our strength and continued commitment in the syariah banking segment as well as in the cards business," he added. During the past few years, Bank Danamon has leaped from 12th to 6th in its rank among the largest card issuers in Indonesia; hence it is now one of the fastest growing card businesses in the country. "We are proud to introduce the Dirham Card as our special offering in relation to Bank Danamon's 51st anniversary on July 16th," stated Hendarin Sukarmadji, Syariah Director of Bank Danamon. "We believe that this initiative supports the intention of Bank Indonesia for a more active role of syariah banking in Indonesia's economic development, and contributes to Bank Danamon's strategic priority towards becoming a leading financial institution in Indonesia," he added. The Dirham Card is a product of the collaboration between Bank Danamon and MasterCard with all networks or merchants throughout the world to provide payment services to card holders. "The uniqueness of the Dirham Card lies in the 'akad', the term for transaction contract or scheme which it uses; namely Ijarah, Kafalah and Qardh," Hendarin. The Dirham Card is introduced based on Fatwa No. 54/DSN-MUI/X/2006 of the Indonesian Ulemas Council's National Syariah Board or Dewan Syariah Nasional Majelis Ulama Indonesia and Bank Indonesia Letter No. 9/183/DPbS/2007 on the approval for the Danamon Syariah Card. The three contracts, or 'akad', can be distinguished as follows. "On the Ijarah scheme, the card issuer acts as the provider of payment and service system for the card holder. For the provision of this service, the card holder is charged a membership fee," explained Hendarin. "Meanwhile, in the Kafalah transaction scheme, Bank Danamon Syariah as card issuer, acts as the guarantor for the card holders against the merchants, of all obligations to pay which arise from the transactions between card holder and merchant, and/or cash withdrawal from banks other than the ATM of the bank issuing the card. Based on Kafalah, the card issuer can accept a fee," he continued. "Under the Qardh scheme, the card issuer acts as the lender to the card holder through the cash withdrawal from the bank or ATM of the card issuing bank. The card holder is therefore obliged to return the same amount of funds he withdrew at the time," stated Hendarin. In summary, the benefits offered by the Dirham Card can be several, namely: -- Does not implement interest mechanisms. Instead uses a 'rent' system based on the 'Ijarah' principles; -- Competitive and a 'fair' pricing as it employs a fee calculation which appreciates partial payment; -- Manages a charity fund, or Qardul Hasan, generated from the business; for example from late fees, which will be used to fund charity activities; -- The basic benefits including to pay for utilities: electricity, telephone, water, cable TV bills, get merchants discounts and purchase cell phone airtime value reload vouchers; -- Enable card uses for spiritual purposes, such as umrah pilgrimage, or spiritual tours; -- Worldwide acceptance at all MasterCard networks throughout the world. "Bank Danamon's integrated information technology enables support for the Dirham Card on its conventional and Syariah branch as well as its ATM networks, which will allow customers to conduct transactions in all provinces throughout Indonesia," continued Hendarin. As of March 31, 2007 Bank Danamon operates close to 1,400 branches including its Danamon Simpan Pinjam, Syariah units and Adira. In addition, it provides access to over 14,000 ATMs, including those in association with ATM Bersama and ALTO networks nationwide, and ATM DBS Bank and Cirrus all over the world. Furthermore, Bank Danamon Syariah customers can enjoy the ease of shopping in stores which bear the MasterCard Electronic logo throughout the world, as well as phone banking services through the Danamon Access Center (021-3435 8888) and HP Banking Danamon. Vadyo Munaan, Vice President and Senior Country Manager, Indonesia, MasterCard Worldwide, stated, "MasterCard is committed to always provide payment product innovation specifically designed to supplement the lifestyle and needs of MasterCard card holders. We understand the needs of cardholders in Indonesia and the launch of the Syariah-compliant Dirham card provides cardholders with an alternative payment solution. MasterCard is very proud to have this opportunity to work with Danamon in launching the Dirham Card." About Bank Danamon Syariah Bank Danamon Syariah was initiated in 2002 with the first Syariah Branch Office in Ciracas, East Jakarta. Bank Danamon Syariah is now supported by syariah branch offices in 7 major cities, namely, Jakarta, Bukit Tinggi, Banda Aceh, Surabaya, Martapura, Solo and Makassar, as well as 3 syariah sub-branch offices and 7 office channeling branch offices in the Jakarta area, in addition to 5 office channeling branch offices in East Java. As per the end of 2006, Bank Danamon Syariah's third party funds reached IDR337 billion, while its total financing in various syariah schemes reached IDR220 billion. About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on May 8, 2007, that Moody's Investors Service published the rating results for Indonesia's PT Bank Danamon Indonesia Tbk as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. The specific ratings changes are as follows: * BFSR is changed to D with a positive outlook from D- -- This action also concludes a review for possible upgrade on the BFSR initiated on July 4, 2006 * Foreign Currency Deposit Ratings are unchanged at B2/Not Prime * Foreign Currency Debt Rating for subordinated obligations is unchanged at Ba3. -- Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook The TCR-AP reported on Feb. 1, 2007, that Fitch Ratings affirmed all the ratings of Bank Danamon: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA-(idn)' (AA minus(idn)) * Individual 'C/D', and * Support '4'. The Outlook for the ratings was revised to Positive from Stable. BANK NIAGA: 1st Semester Net Profit Up 15% to IDR406 Billion ------------------------------------------------------------ PT Bank Niaga reported a 15% increase in net profit to IDR406 billion in the first semester of this year from IDR353 billion in the same period last year, The Jakarta Post reports. The report relates that, according to Bank Niaga President Director Hashemi Albakri, the increase was due to a 15% rise in net interest income to IDR1.28 trillion in the first half from IDR1.1 trillion in the corresponding period of last year. Higher net interest income was due to an 11.5% increase in lending to IDR34.18 trillion from IDR30.65 trillion previously. Mr. Albakri said that mortgages, which now represent 23% of the bank's total loans, grew by 16% to IDR7.99 trillion, the report notes. The Post says that during the first half, the bank had a loan to deposit ratio of 95.23%, up 4.3 basis points from the first semester of last year. The increase in lending was accompanied by an improved non-performing loan ratio, which decreased to 3.23% from 4.11% as of the end of the first semester last year. Bank Niaga also reported a 101% rise in its non-interest income to IDR319 billion in the first semester from IDR159 billion in same semester of last year, the report recounts. The report adds that the bank's total equity grew to IDR5.1 trillion, a 17.5% year-on-year increase, with the improved profit. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * As reported by the Troubled Company Reporter-Asia Pacific on May 8, 2007, Moody's Investors Service upgraded PT Bank Niaga Tbk's bank financial strength rating to D from E+. Foreign Currency Deposit Ratings are unchanged at B2/Not Prime. Foreign Currency Issuer Rating and Foreign Currency Debt Rating for subordinated obligations are unchanged at Ba3. Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook. Fitch Ratings affirmed all the ratings of PT Bank Niaga Tbk as: Long-term foreign Issuer Default ratings at 'BB-'; Individual at 'C/D'; and Support '4'. The Outlook for the ratings was revised to Positive from Stable. CIKARANG LISTRINDO: S&P Assigns 'BB-' Ratings; Outlook Stable ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' corporate credit ratings on Indonesia's PT Cikarang Listrindo (Cikarang), an Indonesian natural gas-fired electricity power producer. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' rating on the long-term US$425 million senior secured notes to be issued by Listrindo Capital B.V., a wholly-owned subsidiary incorporated in The Netherlands, established solely for the purpose of issuing this debt instrument. The notes will be irrevocably and unconditionally guaranteed by Cikarang. The ratings are subject to final documentation. The ratings reflect Cikarang's aggressive financial profile and tariff-related uncertainties. The ratings also reflect the company's relatively weak contractual structure and its exposure to project completion risk. These weaknesses are somewhat offset by Cikarang's diverse customer base and by the regulatory protection that the company enjoys. Cikarang operates a natural gas-fired combined cycle power plant with an installed capacity of 409MW. The company sells electricity to several off-takers, including PT Perusahaan Listrik Negara (Persero) (PLN; foreign currency BB-/Stable/--; local currency BB/Stable/--) and private industrial estates within a designated licensed area. For the financial year ended December 2006, Cikarang reported revenues of Indonesian rupiah (IDR) 1.5 trillion with net income of about IDR309 billion. Standard & Poor's recognizes the importance of the new gas procurement and of the additional electricity off-take contracts with PLN, and expects such contracts to be eventually signed. However, if by the end of 2007, the PLN contract is not signed, in line with the terms and conditions of the existing contract, Cikarang could be exposed to risks relating to noncontractual cash flows and potential excess generating capacity. This could place a downward pressure on the company's ratings or outlook. INDOSAT: Books 20 Million Customers in First Semester of 2007 ------------------------------------------------------------- PT Indosat Tbk has booked 3.3 million new customers in the first semester of this year, The Jakarta Post reports. This means that by the end of the first half, Indosat's customers are 44% more compared to that of the same period last year. The report relates that Indosat President Director Jhonny Swandi Sjam said that the company recorded a total of 20 million customers during the first semester during the re-launching of the "Strong Signal" campaign in Yogyakarta. The strong signal was important as it would affect customers' decision in choosing a telecommunication provider, the report notes. According to The Post, Mr. Sjam also said that the company expected that the campaign would help Indosat achieve its target of having 21-23 million customers in 2007. About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company provides international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service affirmed PT Indosat Tbk's Ba1 local currency issuer rating and has also changed the outlook to stable. At the same time, Moody's has affirmed Indosat's Ba3 senior unsecured foreign currency rating. The rating outlook on the bond remains positive which is in line with the outlook on Indonesia's foreign currency country ceiling. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. The outlook on the ratings is stable. MEDCO ENERGI: To Sell 49% in Nunukan Block to Anadarko Indonesia ---------------------------------------------------------------- PT Medco Energi Internasional Tbk will sell its 49% working interest in the Nunukan Block in East Kalimantan to Anadarko Petroleum Co.'s unit, Anadarko Indonesia Nunukan Co, AFX News Limited reports. According to the report, Medco Energi owns the block through its unit PT Medco E & P Nunukan. Medco's stake will decrease to 51% after the sale, the report notes. The report adds that Nunukan Block comprises of 4,917 square kilometers and is located offshore of Tarakan and Bunyu islands, in East Kalimantan province. About Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). MOBILE-8 TELECOM: Moody's Assigns 'B2' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service has assigned a B2 corporate family rating to PT Mobile-8 Telecom Tbk and a B2 rating to the proposed US$150 million senior, unsecured bonds issued by Mobile-8 Telecom Finance Company BV and guaranteed by Mobile-8. The outlook on the ratings is stable. This is the first time that Moody's has assigned a rating to the company. Moody's expects to affirm the ratings and remove them from provisional status upon the closing of the proposed bond issue. "The P(B2) rating reflects Mobile-8's market position as the fourth largest mobile cellular operator in Indonesia, one the regions' fastest growing telephony markets," says Laura Acres, a Moody's Vice President. "Having a CDMA 800MHz based network in a largely GSM-dominated arena provides a competitive advantage in terms of 'lock-in' value and reduced churn, as well as lower capex per subscriber," adds Acres, also Moody's Lead Analyst for the company. "The B2 rating also reflects Mobile-8's comparatively low market share in a sector dominated by the 3 incumbents, relatively short operating history, high degree of leverage and low coverage ratios, particularly in the short term as the expansion programme is rolled out. Its projected high financial leverage -- Debt/EBITDA of over 5x in the next 2 years -- more appropriately positions it at the (P)B2 rating when compared to the other rated Indonesian peers," she adds. The stable outlook reflects the expectation that Mobile-8 will execute its business plan as planned and maintain its competitiveness in the near to medium term. Upward rating pressure over the next 2 years is limited given Mobile-8's capex plans and the associated execution risk and potential impact on financial metrics. However, a positive rating trend could evolve as the expansion programme and fixed wireless business take hold and generate increased subscriber numbers as per the company's financial projections. Indicators Moody's would look for include a reduction in leverage such that adjusted debt/EBITDA falls below 5x, an improvement in nationwide subscriber market share beyond the current 3%, and/or an increase in ARPU to levels more in line with sector norms. Downward pressure on the rating could emerge if there are significant cost over-runs or if competition intensified, such that adjusted leverage does not fall below 5.5x over the next 12-18 months or interest cover falls below 1.5x. Other negative rating trends would include: shareholders undertaking significant capital withdrawals; and any change in laws and regulations in Indonesia which would affect the business. About Mobile-8 Telecom Headquartered in Jakarta, Indonesia, PT Mobile-8 Telecom Tbk is a part of Bimantara Group. Established in 2002 and commercially launched in 2003 is the fourth largest mobile cellular operator in the country. Its product is Fren, which offers pre-paid and post-paid billing services. The Company's other products and services include Fren Prabayar, Fren Pascabayar, FrenSLI 01068, Layanan, Value Added Services, Fren RingGo, TV MOBI and Fren Mobile Internet. Its subsidiaries, which provide mobile cellular network services, are PT Komunikasi Selular Indonesia, PT Metro Selular Nusantara and PT Telekomindo Selular Raya. As of May 31, 2007, the three subsidiaries have been merged into the Company. MOBILE-8 TELECOM: S&P Assigns 'B' LT Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Indonesia's wireless operator PT Mobile-8 Telekom Tbk. The outlook is stable. At the same time, Standard & Poor's assigned its 'B' rating to the proposed US$150 million senior unsecured notes to be issued by Mobile-8 Telecom Finance B.V., a wholly owned subsidiary of Mobile-8. The notes will be irrevocably and unconditionally guaranteed by Mobile-8 and any other subsidiaries it may create. The ratings are subject to final documentation. "The ratings reflect Mobile-8's aggressive capital expenditure plan, the company's highly leveraged financial risk profile, and its role as a small player in a scale sensitive industry," said Standard & Poor's credit analyst Wee Lee Cheng. "These weaknesses are partly offset by Mobile-8's strong subscriber rowth, albeit starting from small base, prospects of continuing favorable domestic wireless subscriber growth, and the company's favorable debt maturity profile." Mobile-8's liquidity position is adequately supported by its cash balance and short term investments of IDR1.1 trillion at March 31, 2007, which are sufficient to cover short-term obligations of IDR12 billion. Most of the cash will be utilized for capital expenditure. In fiscal 2006, the company reported net revenues of IDR589 billion and net income of IDR35 billion. The stable outlook reflects expectations that Mobile-8 will continue to expand its network coverage, which could help improve the company's economies of scale and partly mitigate the potential pressure on margins caused by intensifying competition. The outlook also factors in Standard & Poor's expectations that the majority of the company's 70 million equity warrants will be exercised by their expiry date, providing a potential inflow of at least IDR600 billion. "Given the company's aggressive debt-funded capital expenditure program in the next three to four years, the rating is unlikely to be raised in the short to medium term," Mr. Cheng noted. About Mobile-8 Telecom Headquartered in Jakarta, Indonesia, PT Mobile-8 Telecom Tbk is a part of Bimantara Group. Established in 2002 and commercially launched in 2003 is the fourth largest mobile cellular operator in the country. Its product is Fren, which offers pre-paid and post-paid billing services. The Company's other products and services include Fren Prabayar, Fren Pascabayar, FrenSLI 01068, Layanan, Value Added Services, Fren RingGo, TV MOBI and Fren Mobile Internet. Its subsidiaries, which provide mobile cellular network services, are PT Komunikasi Selular Indonesia, PT Metro Selular Nusantara and PT Telekomindo Selular Raya. As of May 31, 2007, the three subsidiaries have been merged into the Company. MOBILE-8 TELECOM: To Sell US$150-Million Dollar Bond ---------------------------------------------------- PT Mobile-8 Telecom Tbk planned a US$150-million dollar bond offering whose roadshows will be launched next week, Reuters reports. According to the report, the company has hired Lehman Brothers as sole bookrunner. The roadshows will begin in Hong Kong on July 23 before moving to Singapore on July 24 and on July 25. It will finally move to London on July 26 and pricing is likely to happen thereafter, the report adds. About Mobile-8 Telecom Headquartered in Jakarta, Indonesia, PT Mobile-8 Telecom Tbk is a part of Bimantara Group. Established in 2002 and commercially launched in 2003 is the fourth largest mobile cellular operator in the country. Its product is Fren, which offers pre-paid and post-paid billing services. The Company's other products and services include Fren Prabayar, Fren Pascabayar, FrenSLI 01068, Layanan, Value Added Services, Fren RingGo, TV MOBI and Fren Mobile Internet. Its subsidiaries, which provide mobile cellular network services, are PT Komunikasi Selular Indonesia, PT Metro Selular Nusantara and PT Telekomindo Selular Raya. As of May 31, 2007, the three subsidiaries have been merged into the Company. * * * On July 19, 2007, Standard and Poors assigned its 'B' long-term corporate credit rating to Indonesia's wireless operator PT Mobile-8 Telekom Tbk. The outlook is stable. At the same time, Standard & Poor's assigned its 'B' rating to the proposed US$150 million senior unsecured notes to be issued by Mobile-8 Telecom Finance B.V., a wholly owned subsidiary of Mobile-8. Moody's Investors Service has assigned a B2 corporate family rating to PT Mobile-8 Telecom Tbk and a B2 rating to the proposed US$150 million senior, unsecured bonds issued by Mobile-8 Telecom Finance Company BV and guaranteed by Mobile-8. The outlook on the ratings is stable. ========= J A P A N ========= FORD MOTOR: To Invest EUR675 Million in Romanian Plant ------------------------------------------------------ Ford Motor Company plans to develop the Craiova manufacturing plant in Romania into one of the major facilities supporting Ford of Europe's vehicle and engine production requirements, the company said in a statement. The TCR-Europe reported on July 12, 2007, that Ford had submitted a bid for the Automobile Craiova assembly plant in Romania and forwarded its proposal to he Romanian Authority for State Assets Recovery. If the company's bid is successful, the company would commit to investing EUR675 million in the site to upgrade and modernize the plant in line with global Ford Motor Company standards. Ford's plans also include increasing employment levels from 3,900 now to 7,000 -- and potentially up to 9,000. The existing and additional workforce would be producing 300,000 vehicles a year, together with a further 300,000 engines annually, according to Ford's plans. In 2006, the plant made 24,000 vehicles and 116,000 engines. Ford's strategy for the Craiova plant was discussed at meetings in Bucharest with Ford of Europe President and CEO John Fleming, Romania Prime Minister Calin Popescu-Tariceanu and members of the privatization committee for Automobile Craiova. "By 2012, we would expect to be spending around EUR1 billion a year in Romania to support the Craiova plant," said Mr. Fleming. "We are excited about the opportunity for Craiova. But there is still much hard work to be done before a final agreement is reached. During our negotiations with the privatization committee, we will be emphasizing how important the Craiova plant is to Ford's long-term strategic manufacturing plans," Mr. Fleming added. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. FORD MOTOR: Private Equity Firms May Bid for Jaguar & Land Rover ---------------------------------------------------------------- Ford Motor Company is expected to receive six indicative bids for Jaguar and Land Rover from interested parties that include Cerberus Capital Management, Ripplewood Holdings and One Equity Partners, The Financial Times reports. The TCR-Europe reported on July 19, 2007, that Indian carmaker Tata Motors is in the early stages of evaluating a bid for Jaguar and Land Rover. FT observes that Tata Motors seems to be the most likely contender for the assets. Meanwhile, Renault Nissan of France has reportedly backed away and Hyundai of South Korea early this morning said it had "no interest whatsoever" in buying another brand, FT reveals. Alchemy Partners, which bid for Land Rover in the UK seven years ago, and Carlyle, which owns a string of auto suppliers, have ruled out making bids, the report says. The auction could progress quickly, with Ford hoping to select two final bidders in the next few weeks to begin due diligence on Jaguar and Land Rover, FT relates. Ford prefers selling the two brands together although it is prepared for separate deals. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. Ford Motors also has operations in Japan. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. FORD MOTOR: TPG Capital, Others Bid for Jaguar & Land Rover ----------------------------------------------------------- Private-equity firm TPG Capital, in a surprise move, has submitted a proposal to purchase Jaguar and Land Rover, which Ford Motor Company is selling, The Financial Times reports. The carmaker has confirmed that a number of firms have come forward with various offers. Ford is currently evaluating the level of interest in the two marques although it has declined to disclose more details on the potential bidders or the timeline for any sale, Reuters states. "We're not ruling anything in or anything out in terms of options for Jaguar and Land Rover," said John Gardiner, a Ford spokesman in London, the New York Times notes. He added that the whole process was in a "very preliminary" stage and that "no final decisions have been made." The TCR-Europe reported on July 20, 2007, that Ford was expected to receive six indicative bids for Jaguar and Land Rover from interested parties that include Cerberus Capital Management, Ripplewood Holdings and One Equity Partners. Indian carmaker Tata Motors was believed to be in the early stages of evaluating a bid for Jaguar and Land Rover. FT observes that Tata Motors seems to be the most likely contender for the assets. The potential bidders have not been given detailed information about Jaguar and Land Rover, the Times relates, citing a person taking part in the process as its source. Ford may reveal the final list of bidders this week, after which, the finalists may be given tours of the companies' operations and the opportunity to interview senior management. Once the group is narrowed, Ford would like to move quickly in choosing the winning bidder, the Times reports, quoting the same source. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. JVC CORP: Forms Capital & Business Tie-Up with Kenwood and Sparx ---------------------------------------------------------------- Victor Company of Japan, Limited, maker of JVC brand electronics, has agreed to form a capital and business alliance with Kenwood Corp. and Sparx Asset Management to help finance operations, Reuters reports. Under the agreement, JVC will raise JPY30 billion by issuing JPY20 billion and JPY10 billion worth of shares to Kenwood and Sparx, respectively, Reuters explains. Reportedly with the alliance, Kenwood will hold a 10% stake in JVC, while Sparx will hold a 5% stake. According to the article, in line with the issuance of shares, Matsushita Electric Industrial Co., Ltd., which owns a 52.4% stake in JVC, will currently hold a 39% stake in the electronics manufacturer, taking JVC off its accounts, and hopefully lift the company's group-based earnings performance. About JVC Corp. Headquartered in Kanagawa Prefecture, Japan, Victor Company of Japan, Limited (JVC) -- http://www.jvc-victor.co.jp/-- is primarily engaged in the manufacture and sale of audiovisual (AV) equipment, information and communications equipment, electronic products and others. The Company has five business segments. The Consumer Equipment segment offers various types of televisions, digital video cameras, car audio systems, as well as players and related equipment for video, mini disc (MD), compact disc (CD) and digital versatile disc (DVD) systems. The Industrial Equipment provides visual inspection devices, audio and video equipment, as well as projectors. The Electronic Devices segment offers monitors, optical pickups, high density buildups, multilayer boards and display parts. The Software and Media segment provides music and visual software and recording media. The Others segment is engaged in businesses related to interior furniture and production facilities. It has 96 subsidiaries and seven associated companies. The Troubled Company Reporter-Asia Pacific reported on June 4, 2007, that JVC reported a net loss of JPY7.9 billion for fiscal year 2006. This is its fourth consecutive annual loss. MAZDA MOTORS: Resumes Production in Yamaguchi Factory ----------------------------------------------------- Mazda Motor Corporation says that it has restarted its production at its Yamaguchi Prefecture factory, which was scheduled to have begun on Monday nighttime, reports Makiko Kitamura of Bloomberg News. According to the report, Mazda was among those affected after Riken Corporation -- Japan's largest maker of piston rings and seal rings which are key parts used in engines and transmissions -- was hit by the 6.8 magnitude earthquake, causing it to close 11 parts factories. However, as of July 23, 2007 at 8 a.m., Mazda has restarted its partial production and is scheduled to have resumed its mass production later in the day, reports Tetsuya Komatsu and Naoko Fujimura of Bloomberg News in a separate interview. About Mazda Motors Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor Corporation -- http://www.mazda.co.jp/-- together with its subsidiaries and associates, is primarily involved in the manufacture and distribution of automobiles. The company manufactures passenger cars and commercial vehicles. Mazda Motor distributes its products in both domestic and overseas markets. The company has 58 subsidiaries. It has overseas operations in the United States, Canada, Mexico, Germany, Belgium, France, the United Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand, Indonesia and China. The Company has a global network. * * * As reported on April 27, 2007, that Standard & Poor's Ratings Services raised Mazda Motor Corp.'s long-term corporate credit rating and the company's long-term senior unsecured debt to: * Corporate Credit Rating: BB /Stable/ * Company's Long-term Senior Unsecured Debt: BB+ S&P's rating actions reflect Mazda's improved operational and financial performance, and financial risk profile. Mazda's operating and financial performance has been improving over the past several years due to the success of new products following a shift in strategy. The company continued to improve operating and financial performance in the nine months ended Dec. 31, 2006, owing to an improved sales mix and favorable foreign exchange rates. Although the EBITDA margin of about 6% remains lower than most of its Japanese peers, profitability is steadily improving. Mazda is now focusing on certain segments instead of attempting to compete as a full-line producer. The company also has excellent product engineering capabilities. UBE INDUSTRIES: To Reduce Cost of Caprolactam Production -------------------------------------------------------- Ube Industries, Ltd., plans to reduce the cost of its caprolactam production within the next two to three years by evaluating its procurement system for raw materials as well as enhancing its logistics and supply networks, reports Japan Chemical Week. According to the report, the Yamaguchi-based company will construct a 50,000-tonne/year polymerization plant in Thailand for nylon 6 and boost its Japan plant's nylon 6 production capacity by realigning its production system at the site. After the chemical company has accomplished these plans, it aims to boost its caprolactam production capacity and to lift its captive consumption from the current 17% to 40% for a stronger presence in the global market and to compete globally, the report says. Annually, Ube Industries has a total output capacity of 375,000 tonnes of caprolactam at its domestic bases in Ube and Sakai as well as overseas locations in Thailand and Spain, relates Chemical Week. The article adds that the annual 375,000 tonnes total output capacity makes Ube the third-largest caprolactam producer in the world and the biggest caprolactam manufacturer in Asia. Caprolactam, according to Wikipedia, is an organic compound which is a cyclic amide. About Ube Industries Headquartered in Yamaguchi, Ube Industries, Ltd. -- http://www.ube-ind.co.jp-- is one of Japan's major diversified chemical companies. The company has strengths as the leading manufacturer in Asia for production and sales of caprolactum. The Troubled Company Reporter-Asia Pacific reported on Jan. 20, 2006, that Moody's Investors Service upgraded the senior unsecured long-term debt rating of Ube Industries, Ltd. (Ube) to Ba1 from Ba3. The rating outlook is stable. The company still carries this rating as of May 22, 2007. * Japan Auto Sector's Supplier Risk Made Visible From Earthquake ---------------------------------------------------------------- Fitch Ratings has commented that the risks associated with auto manufacturers' dependence on auto parts manufacturers have become visible, resulting from a plant closure of a key part manufacturer caused by the recent earthquake. The rating agency expects the halted operations of the key part supplier to be active again within a week or so, making it possible for the auto manufacturers to catch up with their planned production level. Thus, the event does not affect Fitch's ratings and outlook on the Japanese auto manufacturers (Toyota Motor Corporation: 'AAA'/'F1+'/Stable, Honda Motor Co., Ltd: 'A+'/'F1'/Stable, Nissan Motor Co., Ltd.: 'A-' (A minus)/'F2'/Stable). In observing the recent trend, Tatsuya Mizuno, director in Fitch's Corporate team based in Tokyo said, "The recent event highlighted the risk of a too lean supply structure. Besides, as auto manufacturers realize the increasing importance of their suppliers in helping them produce competitive vehicles, they will try to secure the relationship with the suppliers and increase investments to include key component suppliers within their group." Due to the damage of a Japanese auto parts manufacturer's plant caused by the Niigata Prefecture earthquake on 16 July 2007, all the Japanese auto manufacturers' vehicle production operations have been suspended for the moment. Riken Corp. is the auto parts manufacturer with around 50% market share in the production of piston rings for engines, and around 70% share in transmission sealants; it is the provider of these key components to almost all Japanese auto manufacturers. One of the reasons for the larger-than-expected impact of the earthquake on the Japanese auto manufacturers' vehicle production is their pursuit for efficiency. To reduce the procurement cost of a component, they believe that it is better to concentrate the procurement source, by buying the component from one supplier on a large volume. Also, to improve working capital, the inventory level of the component should be reduced as much as possible, which however, enhances the risk of stalling the production in the event of a disruption of supply. It is thus difficult for an auto manufacturer to seek both higher efficiency and higher safety at the same time, and an ongoing challenge for each auto manufacturer's management to balance between the two contradictory targets. Given that natural disasters are unfortunate for everybody, the difference will be made as to how each company deals with the misfortune and what measures are taken to mitigate the negative impact from a similar event in future. A vehicle is made from a lot of components, ranging from 30,000 to 50,000 parts. In many cases, there are many suppliers and a switch from one supplier to another is relatively easy if the supply is suspended. However, certain key components are provided by very limited suppliers, the replacement of which are very difficult due to a high market share (sometimes over 50% of a key component is provided by one supplier for all auto manufacturers, as in the case of Riken's piston rings and transmission sealants). Fitch observes that auto parts manufacturers are playing an increasingly important role in the production of an attractive vehicle. The agency pointed out in its recent special report ("Value of Electronics in Japanese Auto Competition" dated June 21, 2007) that electronics will play a more important role in developing value-added vehicles to cope with stricter environmental regulations, enhanced vehicle safety, more fuel efficiency and various car communications. When a supplier has a unique key technology for a vehicle, it becomes vital for an auto manufacturer to have a close business relationship with the supplier. For example, high quality and cost-competitive rechargeable batteries will decide the competitiveness of vehicles for the next generation. Another example is that automakers are expanding the use of light-weight plastics, which will contribute to a vehicle's fuel efficiency. By realizing the importance of suppliers, Fitch expects auto manufacturers to put more emphasis on establishing closer relationship with key component suppliers and enclosing them within their group. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Introduces Fair Trade Compliance Program ------------------------------------------------------------- Hynix Semiconductor Inc. introduced its Fair Trade Compliance Program. The Program is a law-abiding system which aims to observe the related laws with regard to fair trade including antitrust. "Hynix adopts the Program in order to build cornerstone to become the world's best semiconductor corporation and to establish the fair legal system in the semiconductor industry," said CEO Jong Kap Kim. He particularly requested employees to observe fair trade laws. The Company said it has had an off-line based fair trade controlment. In addition to existing system, this Program was formulated in order to systematically enforce observing the related laws by setting up the on-line system. Hynix staffs are able to check any contradictory behavior through the on-line system prior to any sales or purchases. On- line counseling is also available to reduce any risks of infringement of laws. "The risks in respect to antitrust and trade conflicts inevitably exist in the semiconductor industry. The introduction of this Program will facilitate staffs to comply with the law," said the Company. Hynix appointed Si-Woo Kim, Chief Administration Officer, to a Secretary General of Fair Trade Compliance Program and set up an internal Secretariat. The Secretariat will operate systematic education program, detect internal illegal acts and take disciplinary measure. The detection from outside is available by accessing the webpage of Fair Trade Compliance Program under the Company's Web site in regard to unfair trade practices. Hynix said this Program represented the strong willingness of Hynix toward fair business compliance management. About Hynix Semiconductor Headquartered in Echon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. The company has operations in Russia, and the United States. The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service upgraded to Ba2 from Ba3 Hynix Semiconductor Inc's senior unsecured bond rating and corporate family rating. At the same time, Moody's assigned a Ba2 senior unsecured bond rating for Hynix's proposed US$500 million issuance. The outlook for the ratings is stable. On June 14, 2007, Standard & Poor's assigned its 'BB-' rating on Hynix Semiconductor Inc.'s proposed US$500 million global bonds maturing in 2017, which will replace the currently rated seven- year notes issued in 2005. The TCR-AP reported on June 14, 2007, that Fitch Ratings assigned an expected rating of 'BB' to the proposed issue of US$500 million senior unsecured notes due 2017 by Hynix Semiconductor Inc. MAGNACHIP SEMICON: Ships New LCD Driver Chip to Module Makers ------------------------------------------------------------- MagnaChip Semiconductor Ltd has begun to ship a new cell phone LCD driver chip to the world's leading cell phone display module makers. The new product supports QVGA resolution and can be easily mounted on high definition Low Temperature Polysilicon LCD panels. The new driver IC has an embedded controller offering Picture in Picture and EEPROM memory that improves and tweaks the picture quality, thus providing improved benefits vs. previous chips. Davis Mok, Vice President of Marketing in MagnaChip's Display Solutions Division, commented, "We decided to introduce this new LTPS product due to the growing market demand for video files and high resolution handsets. The newly released product is QVGA-equivalent, which is now one of the most widely used resolutions in the cell phone market. As it targets high-end cell phone models, the driver IC supports 16 million colors as its default and provides interfaces that support GSM phones." About MagnaChip Semiconductor MagnaChip Semiconductor -- http://www.magnachip.com/-- designs, develops, and manufactures mixed-signal and digital multimedia semiconductors addressing the convergence of consumer electronics and communications devices. MagnaChip also provides wafer foundry services utilizing CMOS high voltage, embedded memory, and analog and power process technologies for the manufacture of IC's for customer-owned designs. MagnaChip has world-class manufacturing capabilities and an extensive portfolio of approximately 8,500 registered and pending patents. As a result, MagnaChip is a valued partner in providing leading technology solutions to its customers worldwide. * * * Moody's Investors Service, on April 20, 2007, downgraded MagnaChip Semiconductor LLC's corporate family rating to B2 from B1. At the same time, Moody's has downgraded the following debt ratings as issued by MagnaChip Semiconductor Finance Co (US) and MagnaChip Semiconductor SA: 1) USUS$100 million 5-year senior secured credit revolver to B1 from Ba3 2) USUS$500 million aggregate floating- and fixed-rate second priority senior secured notes due 2011 to B2 from B1 3) USUS$250 million senior subordinated notes due 2014 to Caa1 from B3 The outlook for the ratings is negative. This concludes the review for possible downgrade commenced on February 1, 2007. On Feb. 13, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on MagnaChip to 'B' from 'B+'. At the same time, S&P lowered the rating on MagnaChip's senior unsecured debt to 'B' from 'B+' and rating on its senior subordinated notes due 2014 to 'CCC+' from 'B-'. The outlook on the long-term corporate credit rating is negative. =============== M A L A Y S I A =============== PROTON HOLDINGS: Shares Rise After Report of Volkswagen Deal ------------------------------------------------------------ Shares of Proton Holdings Bhd rose as much as 5.2% after a report that Volkswagen AG has agreed to share technology with the Malaysian company, Bloomberg News reports. According to Bloomberg, the Edge magazine had reported that Volkswagen struck a deal with Proton where the European carmaker may pay several hundred million ringgit and supply vehicle platforms. Under the pact, Volkswagen reportedly will own 51% of a new company that will own Proton's manufacturing arm. Proton will control domestic vehicle distribution and Volkswagen will oversee international sales under the deal, the magazine said. Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.protonedar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported as among Malaysia's worst performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter-Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner, in order to boost sales and become more competitive. However, the carmaker until now has yet to name a strategic partner. On May 23, 2007, the TCR-AP reported that Proton Holdings may need a government bailout if talks to sell a stake to a foreign investor continue to falter. SHAW GROUP: Secures US$1.29 Billion EPC Pact from Duke Energy ------------------------------------------------------------- The Shaw Group Inc. has been awarded an engineering, procurement and construction contract by Duke Energy Carolinas, LLC, a unit of Duke Energy, as part of the Cliffside modernization project, to build a new 800-megawatt supercritical coal-fired electric generating plant and a flue gas desulfurization system at Duke's existing Cliffside Steam Station in Rutherford and Cleveland counties, North Carolina. Supercritical clean coal technology allows for exceptional operational reliability, efficiency and fuel flexibility, thereby providing an economic and environmental benefit. The state-of-the-art FGD system, to be built at Unit 5 of the existing Cliffside Steam Station, will be shared with the new 800-megawatt supercritical unit. The value of Shaw's EPC contract is valued at approximately $1.29 billion. "We are excited to continue support Duke's clean energy expansion strategy with this significant EPC contract,' J.M. Bernhard, Jr., chairman, president and chief executive officer of Shaw, said. "The supercritical pulverized clean coal technology is more advanced and efficient than conventional coal combustion technologies currently in operation and we are ready to deliver this important generating facility and air quality control system for our longtime client." About Duke Energy Corp. Headquartered in Charlotte, North Carolina, Duke Energy Corp. (NYSE:DUK) -- http://www.duke-energy.com/-- is an electric and natural gas company. About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. ==================== N E W Z E A L A N D ==================== 50 FORCE: Court Appoints Iain McLennan as Liquidator ---------------------------------------------------- Iain McLennan was appointed as the liquidator of 50 Force Ltd. on June 28, 2007. Creditors are required to file their claims by June 28, 2007, to be included in the company's dividend distribution. The Liquidator can be reached at: Iain Mclennan c/o McLennan Associates Insolvency Advisers c/o Level 5, 80 Greys Avenue Auckland New Zealand Telephone:(09) 303 9512 Facsimile:(09) 303 0508 BRIDGECORP LTD: Australian Arm's Pensioners May Get Gov't. Aid -------------------------------------------------------------- Age pensioners of Bridgecorp Ltd's Australian Arm, Bridgecorp Finance Ltd, could be eligible for federal government assistance, ABC News reports, citing Australia's Community Services Minister Mal Brough. According to the report, the Minister said that age pensioners who have lost income from investing in Bridgecorp Finance might be able to access a special hardship provision through Centrelink. Centrelink is a statutory authority responsible for delivering human services on behalf of agencies of the Commonwealth Government of Australia. The pensioners may also be exempt from deeming provisions, meaning only the actual income they have earned through investing in Bridgecorp will be assessed, Mr. Brough told the news agency. Based in New Zealand, Bridgecorp Ltd is a property development and finance company. Bridgecorp 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 under voluntary administration. CLIFFORD HOLDINGS: Requires Creditors to File Claims by July 19 --------------------------------------------------------------- Clifford Holdings Ltd., which is in liquidation, requires its creditors to file their claims by July 19, 2007. Creditors who cannot file their claims by the due date will be excluded from sharing in the company's dividend distribution. The company's liquidator is: Edward Jansen Sherwin Chan & Walshe PO Box 30568, Lower Hutt New Zealand CONCRETE FX: Commences Liquidation Proceedings ---------------------------------------------- On June 25, 2007, Iain Andrew Nellies and Wayne John Deuchrass were appointed as liquidators of Concrete FX Ltd. The company entered wind-up proceedings on that day. The Liquidators can be reached at: Iain Andrew Nellies Wayne John Deuchrass c/o Insolvency Management Limited Level 1, 148 Victoria Street PO Box 13401, Christchurch New Zealand DDC CARRIERS: Names Fatupaito and McCloy as Liquidators ------------------------------------------------------- Vivian Judith Fatupaito and Colin Thomas McCloy were appointed as liquidators of DDC Carriers Limited on June 21, 2007. The Liquidators fixed Sept. 21, 2007, as the last day for creditors to file their proofs of debt. The Liquidators can be reached at: Vivian Judith Fatupaito Colin Thomas McCloy c/o PricewaterhouseCoopers PricewaterhouseCoopers Tower, Level 8 188 Quay Street Private Bag 92162, Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 FIRE TECHNOLOGY: Shareholders Agree on Voluntary Liquidation ------------------------------------------------------------ The shareholders of Fire Technology Services Ltd met on June 22, 2007, and resolved to liquidate its business. The company's liquidator is: Grant Bruce Reynolds Reynolds & Associates Limited PO Box 259059, Greenmount Auckland New Zealand Telephone:(09) 522 5662 Facsimile:(09) 522 5788 GREEN TEAM: Fixes Sept. 21 as Last Day to File Claims ----------------------------------------------------- Green Team Limited is accepting proofs of debt from its creditors until September 21, 2007. The company started to liquidate its business on June 21, 2007. The company's liquidators are: Vivian Judith Fatupaito Colin Thomas McCloy c/o PricewaterhouseCoopers PricewaterhouseCoopers Tower, Level 8 188 Quay Street Private Bag 92162, Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 MEREWEATHER ENTERPRISES: Taps Official Assignee as Liquidator ------------------------------------------------------------- On June 21, 2007, the official assignee was appointed as the official liquidator of Mereweather Enterprises Ltd. The Liquidator can be reached at: Official Assignee c/o Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone:0508 467 658 Website: http://www.insolvency.govt.nz NORFOLK INVESTMENTS: Appoints Official Assignee as Liquidator ------------------------------------------------------------- The official assignee was appointed as the liquidator of Norfolk Investments Limited on June 21, 2007. The Liquidator can be reached at: Official Assignee c/o Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone:0508 467 658 Website: http://www.insolvency.govt.nz PACIFIC WORLD: Enters Liquidation Proceedings --------------------------------------------- On June 22, 2007, the shareholders of Pacific World (NZ) Co Limited resolved to liquidate its business and appointed Grant Bruce Reynolds as liquidator. The Liquidator can be reached at: Grant Bruce Reynolds Reynolds & Associates Limited PO Box 259059, Greenmount Auckland New Zealand Telephone:(09) 522 5662 Facsimile:(09) 522 5788 PERTAKO LTD: Accepting Proofs of Debt Until Sept. 21 ---------------------------------------------------- The creditors of Pertako Ltd are required to file their proofs of debt by September 21, 2007, to be included in the company's dividend distribution. The company went into liquidation on June 21, 2007. The company's liquidators are: Vivian Judith Fatupaito Colin Thomas McCloy c/o PricewaterhouseCoopers PricewaterhouseCoopers Tower, Level 8 188 Quay Street Private Bag 92162, Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 THIRSTY ENTERPRISES: Fixes July 26 as Last Day to File Claims ------------------------------------------------------------- Thirsty Enterprises Ltd. fixes July 26, 2007, as the last day for creditors to file their proofs of debt. The company went into liquidation on June 25, 2007. The company's liquidator is: K. A. Horne c/o K. A. Horne at Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace PO Box 3978, Christchurch New Zealand Telephone:(03) 379 7929 WECA CONSTRUCTION: Creditors' Proofs of Debt Due on August 10 ------------------------------------------------------------- The shareholders of WECA Construction Ltd met on June 27, 2007, and resolved to shut down the company's business. John Trevor Whittfield and Kevin Warwick Bromwich, the appointed liquidators, fixed August 10, 2007, as the last day for creditors to file their claims. The Liquidators can be reached at: John Trevor Whittfield Kevin Warwick Bromwich McDonald Vague PO Box 6092, Wellesley Street Post Office Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Website: http://www.mvp.co.nz Telephone:(09) 303 9514 ===================== P H I L I P P I N E S ===================== ATLAS CONSOLIDATED: Carmen Copper Unit Cancels Public Offering -------------------------------------------------------------- Carmen Copper Corp., Atlas Consolidated Mining and Development Corp.'s unit, cancelled its plan for an initial public offering this year and chose internal financing, the Manila Standard reports. Martin Buckingham, Atlas' executive vice president and officer in charge of Carmen's operations, said that the company has already raised three-fourths of what it needed to rehabilitate and initiate Carmen's business. The US$200-million project was financed through equity investments by Crescent Asian Special Opportunities Portfolio, which had advanced US$18 million and could possibly add US$20 million, Manila Standard cites Mr. Buckingham as saying. Atlas also infused US$50 million for the project. Mr. Buckingham also said that the company plans to raise additional capital through the proposed dual listing in the London and Toronto Stock Exchanges. Headquartered in Mandaluyong City, Philippines, Atlas Consolidated Mining and Development Corporation was established through the merger of assets and equities of three Soriano- controlled pre-war mines, the Masbate Consolidated Mining Company, IXL Mining Company and the Antamok Goldfields Mining Company. The company is engaged in mineral and metallic mining and exploration that primarily produces copper concentrates and gold with silver and pyrites as major by-products. The company's copper mining operations are centered in Toledo City, Cebu, where two open pit mines, two underground mines and milling complexes (concentrators) are located. The Cebu copper mine ceased operations in 1994. Activities after the shutdown were limited to safeguarding and maintaining the property, plant and equipment at the minesite. The closure has brought huge losses to the mining firm. In January 2004, Atlas decided to rehabilitate the company and its assets since copper and nickel prices have recovered. As of December 31, 2006, total liabilities of PHP3.81 billion exceeded total assets of PHP2.99 billion, resulting in a capital deficiency of PHP820.5 million. Total current liabilities of PHP1.91 billion as of December 31, 2006, also exceeded total current assets of PHP305.22 million. BANCO DE ORO-EPCI: BDO Must Pay PHP74.61 Million Deficiency Tax --------------------------------------------------------------- Banco de Oro Universal Bank is required to pay PHP74.61 million in deficiency documentary stamp tax to the Bureau of Internal Revenue for its mega savings deposits in 1999, the BusinessWorld Online Edition reports, citing the Court of Tax Appeals. The Court's Second Division ruled out the bank's statement that the mega savings deposit is like a regular saving account and is thus exempt from the tax requirement. However, the bank ruled that the mega savings deposit is more similar to a time deposit that bears interest and, because of that, is subject to DST under the National Internal Revenue Code of 1997. The Court also ordered BDO to pay 20% delinquency interest from April 19, 2004, until it fully pays the deficiency tax. Banco de Oro-EPCI is the result of a merger between Banko de Oro Universal Bank and Equitable PCI, with BDO as the surviving entity. * * * The Troubled Company Reporter-Asia Pacific reported on Nov. 9, 2006, that Fitch Ratings affirmed the ratings of Banco De Oro Universal Bank, as follows: * Individual 'C/D', and * Support '3' * * * On June 1, 2007, Moody's Investors Service said it had withdrawn its ratings for Equitable PCI Bank (EPCI) following its merger with Banco de Oro Universal Bank (BDO). In a statement, Moody's said the merged entity, Banco de Oro- EPCI, will assume BDO's "Ba2" rating both for its senior unsecured debt and subordinated debt, with a stable outlook. Moody's withdrew its ratings for Equitable PCI following the merger. * * * The TCR-AP reported on June 11, 2007, that Standard & Poor's Ratings Services withdrew its 'BB-' counterparty credit ratings on Equitable PCI Bank Inc., as its merger with Banco De Oro Universal Bank became effective on May 31. S&P retained its 'BB-' counterparty credit rating and the issue ratings on both Equitable and Banco de Oro's rated debts. Equitable's rated debts will be transferred to the Banco de Oro- EPCI. PHIL AIRLINES: Mulls Over Flying to New Destinations in the U.S. ---------------------------------------------------------------- Philippine Airlines Inc. is considering new destinations in the United States like California, San Diego, and Seattle, and is trying to secure more flights to Vancouver, Canada, the Philippine Daily Inquirer reports. The company also signed a memorandum of agreement with visiting Chongqing Mayor Wang Hongju last week, the article relates. Under the agreement, the company added Chongqing, a major Chinese industrial city, to its list of destinations in China, which includes Beijing, Shanghai, Xiamen and Guangzhou. PAL president Jaime Bautista said that they could start having flights to Guangzhou later this year if it could set up an office and arrange other matters in Chongqing within the year. Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. As of 2005, it claims to serve 21 domestic airports and 31 foreign cities. Its main hub is the Ninoy Aquino International Airport in the capital city of Manila. Following labor problems and its failure to settle debts, PAL filed for rehabilitation in June 1998, and is slated to complete its 10-year debt rehabilitation program in 2009. A March 21, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the airline company will continue a government-led rehabilitation program even as creditors neither approved nor rejected the program to leave the protection of the Securities and Exchange Commission. A report by the Manila Times in July 2006 said that since its corporate rehabilitation in 1998, PAL reduced its debts to PHP237.23 billion from PHP496.02 billion by selling assets and using the proceeds to pay off maturing debts. PHIL AIRLINES: Considers Coming Out Early from Rehabilitation ------------------------------------------------------------- Philippine Airlines Inc. is considering emerging from its rehabilitation plan after it brought down its foreign debts to US$953 million as of March 31, 2007, as compared to the initial US$2.3 billion upon entering rehab in June 1999, PAL President Jaime Bautista told GMA News. However, Mr. Bautista said they still have to get approval from their creditors. Since entering rehabilitation, the company posted continuous net income, the latest being a US$140.3 million for its fiscal year ended March 31, 2007. Mr. Bautista said that these "confirm that PAL is fully recovered and is now firmly on track towards long-term profitability." Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. As of 2005, it claims to serve 21 domestic airports and 31 foreign cities. Its main hub is the Ninoy Aquino International Airport in the capital city of Manila. Following labor problems and its failure to settle debts, PAL filed for rehabilitation in June 1998, and is slated to complete its 10-year debt rehabilitation program in 2009. A March 21, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the airline company will continue a government-led rehabilitation program even as creditors neither approved nor rejected the program to leave the protection of the Securities and Exchange Commission. A report by the Manila Times in July 2006 said that since its corporate rehabilitation in 1998, PAL reduced its debts to PHP237.23 billion from PHP496.02 billion by selling assets and using the proceeds to pay off maturing debts. SAN MIGUEL: Plans to Place Bid for Calaca Power Plant in Auction ---------------------------------------------------------------- San Miguel Corp. will place a bid for the 600-megawatt coal- fired Calaca power plant during a planned auction by the government in October, ABS-CBN News reports, citing Reuters. Sources within the company told Reuters that the company plans to bid for Calaca but that it still needs approval from its Board of Directors and from its shareholders to do so. Reuters' sources also revealed that SMC planned to bid for the 600-megawatt Masinloc plant, also a coal-fired facility, but it was not able to meet the pre-qualification deadline. Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The company also manufactures glass, metal, plastic, paper and composites packaging products. A Troubled Company Reporter-Asia Pacific report on Oct. 12, 2006, stated that Moody's Investors Service affirmed its Ba1 corporate family rating. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. The company's ratings have been placed on S&P's CreditWatch with a Negative outlook on May 17, 2007. SAN MIGUEL: Considers Investing in Ethanol Production ----------------------------------------------------- San Miguel Corp. confirmed through a disclosure with the Philippine Stock Exchange that it is considering an investment in ethanol production for its liquor business. Yesterday, the Manila Bulletin published an article reporting that the company is eyeing a total area of 76,000 hectares in sugarcane land for ethanol production. According to the article, 22,000 hectares will be in Bago, Negros Occidental, while 18,000 hectares each will be in Batangas, Ilocos and Tarlac. The report also said that the company may have to invest PHP8.68 billion to PHP16.28 billion for the ethanol plants, which could possibly have a combined capacity of 1 million liters per day or 10 plants with 100,000 liter per day capacity each. Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The company also manufactures glass, metal, plastic, paper and composites packaging products. A Troubled Company Reporter-Asia Pacific report on Oct. 12, 2006, stated that Moody's Investors Service affirmed its Ba1 corporate family rating. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. The company's ratings have been placed on S&P's CreditWatch with a Negative outlook on May 17, 2007. WELLEX INDUSTRIES: Unit Inks Partnership Deal With Chinese Firm --------------------------------------------------------------- Wellex Petroleum Corp. entered into a partnership with Southern PEC Petrochemical, a subsidiary of China Petroleum and Chemical Corp., to venture into oil and mining activities in the Philippines, a Philippine Daily Inquirer article says. Wellex Petroleum is a subsidiary of Wellex Industries Inc. Wellex's director and executive vice president told the Inquirer that Southern PEC signed a memorandum of agreement with the Wellex Group to bid for the government's oil concessions in Palawan and Mindoro. Both partners are currently applying for permits to explore for nickel, copper, manganese, coal and chromite in possible mine sites in Palawan and Samar, he added. The company is also planning an initial public offering once it establishes its oil and mining projects, he said. Makati City-based Wellex Industries, Inc., was originally incorporated as Republic Resources and Development Corporation, whose primary purpose was to engage in the business of mining and oil exploration. But due to financial distress, the firm's business operations have been suspended. The company's present activity is focused on reorganizing its operations in preparation for its new business. In 1996, WIN's new management has developed a business plan for the rehabilitation of the company, principally by changing its primary business from mining and oil exploration to real estate and energy development. Mining, however, will continue to be one of the company's secondary purposes. In 1997, it subsequently transformed to a holding company for manufacturing concerns with the entry of the Wellex Group. The company has since then been able to initiate projects which have been true to its vision. In November 1999, WIN formalized the entry of Plastic City Industrial Corporation (PCIC) into the group. PCIC is the Philippines' first fully integrated manufacturer of plastic products used in a number of industries. Going Concern Doubt After auditing the company's financials for the year ended December 31, 2006, Joycelyn J. Villaflores at Diaz Murillo Dalupan and Co. raised significant doubt on the company's ability to continue as a going concern. The auditor cited these factors: * The company's deficit of PHP1.856 billion for 2006 and PHP1.369 bilion for 2005 * The company's successive losses of PHP118.82 million for 2006 and PHP61.52 million net loss for 2005. ================= S I N G A P O R E ================= ADVANCED MICRO: Posts US$600 Mil. Net Loss in Qtr. Ended June 30 -------------------------------------------------------------- Advanced Micro Devices Inc. reported second quarter 2007 revenue of US$1.4 billion, an operating loss of US$457 million, and a net loss of US$600 million. These results include an impact of US$130 million from ATI acquisition-related and integration charges of US$78 million, employee stock-based compensation expense of US$31 million, severance charges of US$16 million and debt issuance charges of US$5 million. In the first quarter of 2007, AMD reported revenue of US$1.2 billion, net loss of US$611 million, and an operating loss of US$504 million. In the second quarter of 2006, AMD reported revenue of US$1.2 billion, net income of US$89 million, and operating income of US$102 million. Second quarter 2007 gross margin was 34%, excluding stock-based compensation expense, acquisition-related and severance charges, compared to 31% in the first quarter of 2007 and 57% in the second quarter of 2006. The increase from the prior quarter was largely due to increased microprocessor unit shipments. The second quarter gross margin was impacted by a write-off of older microprocessor inventory of about US$30 million. At June 30, 2007, the company's total assets were US$13.2 billion, total liabilities were US$8.7 billion, and total stockholders' equity was US$4.5 billion. "While we made solid progress in the second quarter across a number of fronts, we must improve our financial results," said Robert J. Rivet, AMD's chief financial officer. "We achieved a 12% sequential revenue increase, improved the gross margin and won back microprocessor unit and revenue market share. Strong distribution channel demand, initial sales to Toshiba, and a broader adoption of AMD platforms led to a 38% sequential increase in microprocessor unit shipments. In addition, our Graphics business gained momentum at the end of the quarter as we began shipping the new ATI Radeon HD(TM) 2000 family of graphics processors. "We continue to focus on realigning our business model and reducing our capital expenditures and cost structure in the second half of the year." In the seasonally up third quarter, AMD expects revenue to increase in line with seasonality. Additional Highlights Additional highlights during the second quarter of 2007 include: -- Toshiba chose AMD as a strategic supplier for its new series of Satellite notebook computers powered by an AMD platform featuring AMD Turion(TM) 64 X2 dual-core mobile technology and the AMD M690 chipset. -- Customers continued to adopt AMD-based solutions across a broader portion of their product offerings. -- AMD announced that initial revenue shipments of the industry's first native x86 quad-core processor, "Barcelona," will commence in the third quarter in both standard and low-power versions. AMD broadened its portfolio of product offerings in the quarter. -- AMD disclosed details of its next-generation platform for notebook computing, codenamed "Puma." The platform pairs AMD's next-generation notebook processor, "Griffin," with the next-generation AMD "RS780" mobile chipset. "Puma" represents one of the first results of the "new AMD," delivering an optimized mobile solution with extended battery life, graphics and video processing enhancements and improved overall system performance. -- The Italian stock exchange, Borsa Italiana, joined the growing roster of global exchange customers running their business on AMD Opteron processor based technology, including NYSE Group Inc., the International Securities Exchange's Stock Exchange, London Stock Exchange, Luxembourg Stock Exchange, Montreal Exchange and Philadelphia Stock Exchange. About AMD Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE: AMD) designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium,France, Germany, the United Kingdom, Mexico and Brazil. * * * As reported in the Troubled Company Reporter on May 2, 2007, Moody's Investors Service affirmed AMD's B1 corporate family rating while revising to Ba2 from Ba3 the ratings on both the currently secured US$390 million notes due 2012 (2012 Note) and the US$1.7 billion remainder of the original US$2.5 billion term loan due The rating outlook remains negative. FOODBEX GLOBAL: Court Enters Wind-Up Order ------------------------------------------ On July 13, 2007, the High Court of Singapore released a wind-up order against Foodbex Global Pte Ltd. DBS Bank Ltd filed the petition against the company. Foodbex Global's solicitors are: Chia Soo Hien Leow Quek Shiong c/o BDO Raffles 5 Shenton Way #07-01 UIC Building Singapore 068808 MEDIASTREAM LTD: To Hold Meting for Scheme Creditors on July 30 --------------------------------------------------------------- Mediastream Ltd, which is in judicial management, will hold a meeting for its schme creditors on July 30, 2007, at 10:00 a.m., in 50 Raffles Place, #16-06 Singapore Land Tower, Singapore 048623. At the meeting, the creditors will be asked to consider and if though fit, approve the Scheme of Compromise and Arrangement proposed to be made pursuant to Sections 210 and 211 of the Companies Act, Chapter 50. POLYONE CORP: Inks Canadian Receivables Purchase Agreement ---------------------------------------------------------- PolyOne Corporation, on Friday, entered into a Canadian Receivables Purchase Agreement among the company, as servicer, PolyOne Funding Canada Corporation, as seller, Citicorp USA Inc., as administrative agent, National City Business Credit, Inc., as syndication agent, and the banks and other financial institutions party thereto, as initial purchasers. In connection with the Purchase Agreement, the company also entered into the Canadian Receivables Sale Agreement, dated as of July 13, 2007, by and among the company, as buyer's servicer, PolyOne Canada Inc. as the seller, and PolyOne Funding Canada Corp., as the buyer. Under the Purchase and Sale Agreements, from time to time, PolyOne Canada Inc. will sell its Canadian receivables to PolyOne Funding Canada Corp., which will then sell interests in the receivables to the banks and other financial institutions party to the Purchase Agreement on the terms and subject to the conditions of the Purchase Agreement. The Purchase Agreement provides up to US$25 million in funding, based on availability of eligible trade accounts receivable and other customary factors. Headquartered in Avon Lake, Ohio, PolyOne Corp. -- http://www.polyone.com/-- is a global compounding and North American distribution company with operations in thermoplastic compounds, specialty polyvinyl chloride (PVC) vinyl resins, specialty polymer formulations, color and additive systems, and thermoplastic resin distribution, with equity investments in manufacturers of PVC resin and its intermediates. The company has 53 manufacturing sites and 14 warehouses in North America, Europe and Asia. The company maintains operations in China, Colombia, Thailand and Singapore. * * * As reported in the Troubled Company Reporter on July 13, 2007, Fitch Ratings upgraded PolyOne Corporation's Issuer Default Rating to 'BB-' from 'B'; and Senior unsecured debt and debentures rating to 'BB-' from 'B+/RR3'. The Rating Outlook is Stable. RINOL SINGAPORE: Distributes Dividend to Preferential Creditors --------------------------------------------------------------- Rinol Singapore Pte Ltd, which is in voluntary liquidation, has declared the first and final dividend to its preferential creditors on July 20, 2007. The company paid 100% to all the admitted preferential claims. The company's liquidator is: Timothy James Reid c/o Ferrier Hodgson 50 Raffles Place #16-06 Singapore Land Tower Singapore 048623 WANG COO-KIEN: Sets Final Meeting for August 18 ----------------------------------------------- Wang Coo-Kien & Company Pte Ltd, which is in voluntary liquidation, will hold a meeting on August 18, 2007, at 11:00 a.m., for the purposes stated in Section 308 of the Companies Act, Cap. 50. The meeting will be held at 7500A Beach Road #15-320 in The Plaza, Singapore 199591. * Fitch Gives Stable Rating to Singapore Banks Despite Expansion ---------------------------------------------------------------- On July 20, 2007, Fitch Ratings said that Singapore banks' expansion plans into Asia's developing markets would likely increase their credit and operational risk profiles, which may be further compounded by their decisions to operate with lower capital ratios in future. However, the agency notes that given the banks' strong financial conditions, still benign operating environments in most Asian markets, the prudence with which these banks intend to pursue their expansion plans, as well as the healthy levels of expected capitalization (even after slight reductions) has ensured Stable Outlooks for all three banks. In a report titled "Singapore Banks' Regional Expansion - A Double-Edged Sword for their Credit Ratings", Fitch says that regional expansion is a growth imperative for Singapore's banks, which they have been pursuing in order to graduate into regional, pan-Asian banks. While Fitch sees this trend as inevitable, it also notes that this exposes local banks to new challenges and risks, as the regulatory, market and legal infrastructure in countries such as Thailand, Indonesia, China and India are not as sound as that in Singapore. Despite initial hiccups, all banks seem to be managing such risks adequately in recent years, which is also a reflection of better cross-border management skills and improved risk management capabilities at all banks. Fitch also notes that at present, the banks' relative share of assets in countries or institutions rated "BBB" or below is quite small; this is unlikely to change materially over the next two years, which may result in a significant alteration in their risk profiles. Fitch further notes that while the banks' capital management initiatives are partly motivated to boost shareholder returns, they are also indicative of more robust risk management systems developed over the years. While minimum regulatory capital ratio requirements have also declined over the years, all banks have prudently maintained these ratios at sufficiently high levels in recognition of the risks associated with their regional expansion plans in less developed markets. With the banks likely to continue expanding in a disciplined manner, Fitch believes that their loss absorption capacity will not be materially impaired despite the decision to operate with slightly lower capital ratios in future. Importantly, and consistent with their generally conservative approaches, Fitch expects all banks to maintain their capital ratios at least 2% higher than minimum statutory requirements (currently Tier-1 ratio: 6%; Total CAR: 10%. Also, "Eligible Capital as a percentage of Regulatory Weighted Risks" was above 11% for all banks at end-2006, and a slight reduction will not impact their credit ratings, provided relative exposure to lower-rated sovereigns or institutions do not change drastically. Nevertheless, an "event risk" such as a significant acquisition requiring large capital outlays, particularly in a lowly-rated country or institution, may still put downward pressure on credit ratings in specific instances. But concrete capital restoration plans may somewhat mitigate such risks, and Fitch will balance all these risks against positive diversification benefits and future growth prospects of such acquisitions. Conversely, upward pressure on the banks' Long-term ratings would primarily come from a further improvement in their Individual like, standalone financial strength, ratings. The Individual ratings at "B" are already quite high and, therefore, prospects of long-term rating upgrades are relatively limited. Sustained higher profitability over the medium term and greater diversification - both by geography and products - without compromising asset quality and capitalisation may lift a bank's Individual rating to "A/B", but that appears unlikely over the next two years. Currently, Singapore banks are comfortably placed at their ratings level (Long-term: "AA minus"; Individual: "B" and Support: "2") and we maintain a Stable Outlook on our ratings. Fitch will continue to monitor key future developments closely and reflect those in the banks' credit ratings as and when necessary. =============== T H A I L A N D =============== BANGKOK BANK: Posts THB5.34-Bil. Net Income for 2nd Quarter 2007 ---------------------------------------------------------------- Bangkok Bank PCL's unaudited consolidated income statements show a net income of THB5.34 billion for the quarter ended June 30, 2007, a 21% increase from the THB4.39-billion net income reported for the same period last year. For the second quarter of 2007, the group earned interest and dividend income of THB20.31 billion, and non-interest income of THB16.93 billion, while incurring THB8.67 billion in interest expenses and THB8.93 billion in non-interest expenses. As of June 30, 2007, the company had total assets of THB1.55 trillion and total liabilities of THB1.4 trillion, resulting in a shareholders' equity of THB159.69 billion. Headquartered in Bangkok Bangkok Bank PCL -- http://www.bangkokbank.com/-- is Thailand's largest bank, with total assets of THBB1.498 trillion (US$39 billion) at end-June 2006. Moody's Investors Service has upgraded on August 29, 2006, Bangkok Bank's bank financial strength rating to D+ from D, which was reaffirmed on September 20, 2006, following the military coup in Thailand. The bank also carries Fitch's C individual rating and a C financial rating from Standard & Poor's. BANGKOK BANK: Posts THB9.97-Billion Net Income for 2007 1st Half ---------------------------------------------------------------- Bangkok Bank PCL's unaudited consolidated income statements reported a net income of THB9.97 billion for the first half of 2007, an increase of THB400.64 million or 4.2% from the THB9.57-billion net income reported for the first half of 2006. For the six months ended June 30, 2007, the group earned a total interest and dividend income of THB40.69 billion and total non- interest income of THB12.08 billion. Interest expenses for the period reached THB17.83 billion, while non-interest expenses totaled THB17.31 billion. As of June 30, 2007, the company had total assets of THB1.55 trillion and total liabilities of THB1.4 trillion, resulting in a shareholders' equity of THB159.69 billion. Headquartered in Bangkok Bangkok Bank PCL -- http://www.bangkokbank.com/-- is Thailand's largest bank, with total assets of THBB1.498 trillion (US$39 billion) at end-June 2006. Moody's Investors Service has upgraded on August 29, 2006, Bangkok Bank's bank financial strength rating to D+ from D, which was reaffirmed on September 20, 2006, following the military coup in Thailand. The bank also carries Fitch's C individual rating and a C financial rating from Standard & Poor's. BANGKOK BANK: Earns THB200,000 from Sales of Gamma Dev't Shares --------------------------------------------------------------- Bangkok Bank PCL earned a total of THB200,000 from the sale of 1,000 common shares in Gamma Development Co. Ltd., the bank said through a disclosure with the Stock Exchange of Thailand. The transaction represented 10% of Gamma's total paid-up capital of 10,000 shares, with a par value of THB100. The bank did not disclose further information on the transaction in its disclosure. Headquartered in Bangkok Bangkok Bank PCL -- http://www.bangkokbank.com/-- is Thailand's largest bank, with total assets of THBB1.498 trillion (US$39 billion) at end-June 2006. Moody's Investors Service has upgraded on August 29, 2006, Bangkok Bank's bank financial strength rating to D+ from D, which was reaffirmed on September 20, 2006, following the military coup in Thailand. The bank also carries Fitch's C individual rating and a C financial rating from Standard & Poor's. BANK OF AYUDHYA: Posts THB8.8-Billion Net Loss for 2nd Qtr. 2007 --------------------------------------------------------------- Bank of Ayudhya PCL posted a net loss of THB8.806 billion for the quarter ended June 30, 2007, compared with a THB1.610-billion net income reported for the same period in 2006. For the second quarter of 2007, the bank earned a net interest and dividend income of THB4.672 billion, comprised of a gross interest and dividend income of THB8.787 billion and interest expenses of THB4.114 billion. The bank also earned THB951.128 million in non-interest income while incurring non- interest expenses of THB4.297 billion. As of June 30, 2007, the bank had THB645.25 billion in total assets and THB579.158 billion in total liabilities, resulting in a shareholders' equity of THB66.1 billion. Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. On May 4, 2007, Moody's Investor Services affirmed its D- bank financial strength rating for Bank of Ayudhya. The Troubled Company Reporter-Asia Pacific reported on June 7, 2007, that Fitch Ratings has affirmed Bank of Ayudhya's individual rating at 'C/D' and subordinated debt rating at 'BB+'. BANK OF AYUDHYA: Posts THB7.6-Billion Net Loss for 1st Half 2007 ---------------------------------------------------------------- Bank of Ayudhya PCL posted a net loss of THB7.6 billion for the six months ended June 30, 2007, versus a THB3.408-billion net income reported for the same period in 2006. For the first half of 2007, the bank earned a net interest and dividend income of THB9.296 billion, comprised of a gross interest and dividend income of THB18.135 billion and interest expenses of THB8.839 billion. The bank also earned THB2.586 billion in non-interest income while incurring non- interest expenses of THB7.983 billion. As of June 30, 2007, the bank had THB645.25 billion in total assets and THB579.158 billion in total liabilities, resulting in a shareholders' equity of THB66.1 billion. Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. On May 4, 2007, Moody's Investor Services affirmed its D- bank financial strength rating for Bank of Ayudhya. The Troubled Company Reporter-Asia Pacific reported on June 7, 2007, that Fitch Ratings has affirmed Bank of Ayudhya's individual rating at 'C/D' and subordinated debt rating at 'BB+'. * BOND PRICING: For the Week 23 July to 27 July 2007 ---------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA & NEW ZEALAND ----------- Ainsworth Game 8.000% 12/31/09 AUD 0.76 A&R Whitcoulls Group 9.500% 12/15/10 NZD 9.85 Arrow Energy NL 10.000% 03/31/08 AUD 2.72 Babcock & Brown Pty Ltd 8.500% 12/31/49 NZD 8.25 Becton Property Group 9.500% 06/30/10 AUD 0.92 BIL Finance Ltd 8.000% 10/15/07 NZD 9.75 Capital Properties NZ Ltd 8.500% 04/15/07 NZD 10.00 Capital Properties NZ Ltd 8.000% 04/15/10 NZD 10.25 Chrome Corporation Ltd 10.000% 02/28/08 AUD 0.21 Clean Seas Tuna Ltd 9.000% 09/30/08 AUD 1.15 Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.85 Evans & Tate Ltd 8.250% 10/29/07 AUD 0.39 Fletcher Building Ltd 8.600% 03/15/08 NZD 9.25 Fletcher Building Ltd 7.800% 03/15/09 NZD 9.00 Fletcher Building Ltd 7.550% 03/15/11 NZD 9.50 Futuris Corporation Ltd 7.000% 12/31/07 AUD 2.54 Geon Group 11.750% 10/15/09 NZD 10.00 Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 9.20 Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 10.50 IMF Australia Ltd 11.500% 06/30/10 AUD 0.80 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 NZD 9.00 Kiwi Income Properties Ltd 8.000% 06/30/10 NZD 1.17 Metal Storm Ltd 10.000% 09/01/09 AUD 0.13 Primelife Corporation 10.000% 01/31/08 AUD 1.01 Salomon SB Aust 4.250% 02/01/09 USD 7.25 Silver Chef Ltd 10.000% 08/31/08 AUD 1.08 Software of Excellence 7.000% 08/09/07 NZD 2.52 Speirs Group Ltd. 10.000% 06/30/49 NZD 60.00 TrustPower Ltd 8.300% 09/15/07 NZD 9.60 TrustPower Ltd 8.300% 12/15/08 NZD 9.05 TrustPower Ltd 8.500% 09/15/12 NZD 9.00 TrustPower Ltd 8.500% 03/15/14 NZD 8.80 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 1.34 Ample Zone Bhd 9.300% 01/27/12 MYR 68.92 Asian Pac Bhd 4.000% 12/21/07 MYR 0.86 Berjaya Land Bhd 5.000% 12/30/09 MYR 1.82 Bumiputra-Commerce 2.500% 07/17/08 MYR 1.70 Crescendo Corporation Bhd 3.000% 08/25/07 MYR 1.60 Eastern & Oriental Hotel 8.000% 07/25/11 MYR 2.50 Eden Enterprises (M) Bhd 2.500% 12/02/07 MYR 1.00 Equine Capital 3.000% 08/26/08 MYR 3.26 EG Industries Bhd 5.000% 06/16/10 MYR 0.71 Gadang Holdings Berhad 2.000% 12/24/08 MYR 0.77 Greatpac Holdings 2.000% 12/11/08 MYR 0.20 Gula Perak Bhd 6.000% 04/23/08 MYR 0.47 Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.55 Insas Bhd 8.000% 04/19/09 MYR 0.74 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.51 Kosmo Technology Industrial 2.000% 06/23/08 MYR 0.60 Kretam Holdings Bhd 1.000% 08/10/10 MYR 1.01 Kumpulan Jetson 5.000% 11/27/12 MYR 0.62 LBS Bina Group Bhd 4.000% 12/31/07 MYR 0.75 LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.75 LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.75 Lebuhraya Kajang Bhd 5.850% 06/12/18 MYR 69.31 Media Prima Bhd 2.000% 07/18/08 MYR 1.89 Mithril Bhd 8.000% 04/05/09 MYR 0.25 Mithril Bhd 3.000% 04/05/12 MYR 0.61 Nam Fatt Corporation Bhd 2.000% 06/24/11 MYR 0.80 Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.25 Pelikan International 3.000% 04/08/10 MYR 1.97 Pelikan International 3.000% 04/08/10 MYR 1.80 Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.88 Ramunia Holdings 1.000% 12/20/07 MYR 1.13 Rashid Hussain Bhd 3.000% 12/23/12 MYR 1.90 Rashid Hussain Bhd 0.500% 12/24/12 MYR 1.90 Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.32 Senai-Desaru Exp 3.500% 06/07/19 MYR 74.63 Southern Steel 5.500% 07/31/08 MYR 1.78 Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.15 Tradewinds Corp. 2.000% 02/08/12 MYR 1.21 Tradewinds Plantations Bhd 3.000% 02/28/16 MYR 1.66 TRC Synergy Berhad 5.000% 01/20/12 MYR 1.81 Wah Seong Corp. 3.000% 05/21/12 MYR 6.30 WCT Land Bhd 3.000% 08/02/09 MYR 3.94 YTL Cement Bhd 4.000% 11/10/15 MYR 2.00 ********* 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***