/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070921.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, September 21, 2007, Vol. 10, No. 188 Headlines A U S T R A L I A A.D. WINTER: Members Resolve to Liquidate Business ALEXANDRA BEACH: Members to Hold Final Meeting on September 25 BALTO PTY: Sets Joint Meeting for October 1 BASIS YIELD: Judge Says Insolvency Motion Hearing is Evidentiary BASIS YIELD: U.S. Court Extends Injunction Until Nov. 19 CENTURY CABINETS: Declares First Dividend CHRYSLER LLC: Brake Problems Trigger Recall of 369,000 Vehicles COLES GROUP: Posts AU$572-Million NPAT for Fiscal Year 2007 COLES GROUP: Executives Defend Wesfarmers Sale COLES GROUP: Wesfarmers Raise AU$10 Billion for Takeover E.D. CULLEN: Declares First & Final Dividend FORTESCUE METALS: S&P Puts Finance Unit Rating on CreditWatch JAMS 1: Members to Receive Wind-Up Report on September 25 MARCUS MEADOWS: Liquidator Presents Wind-Up Report PANACHE IMPORTS: Commences Liquidation Proceedings PEABODY ENERGY: Gets Subpoena from New York Attorney General THE MOVIE CHANNEL: To Declare First Dividend on September 26 TRICOM SYSTEMS: To Declare First Dividend on September 26 C H I N A & H O N G K O N G 401 HOLDINGS: Contributories and Creditors to Meet on October 17 BOHILL INTERNATIONAL: Members' General Meeting Set for Oct. 18 CHINA EASTERN: Inks Regional Carrier JV with China Aviation GLOBAL POWER: Agrees to Sell China Boiler Unit to AE&E Group KAI TAK: Liquidators to Give Wind-Up Report on October 18 KENLAP P.G.C.: Appoints Yan & Haughey as Provisional Liquidators MITSUI HI-POLYMER: Members to Hold General Meeting on Oct. 18 PACIFIC CROWN: Appoints Sutton and Chiong as Liquidators POLYWELL ASIA: Members to Receive Wind-Up Report on October 18 TEAMSING ELECTRONIC: Sets Annual Meeting for September 25 UPI TECHNOLOGY: Taps Johnson and Ki as Liquidators XINAO GAS: Plans to Build US$200-Mil. LNG Terminal in Wenzhou XINAO GAS: In Talks with Spain's Gas Natural Over Supply Deal XINAO GAS: To Build Dimethylether Plant in Mongolia YUE FUNG: Requires Creditors to File Claims by October 5 ZTE CORP: Enters Into US$478 Million GSM Deal with ETC * S&P Warns Over Increased Credit Exposure of China's Banks * TRC Praises Taiwan's Life Insurance Industry * China Needs to Examine Risks Despite Strong Growth, S&P Says * TRC Expects Continued Profitability on Non-Life Insurers I N D I A AES CORP: Gets Subpoena from New York Attorney General AES CORP: Plans to Construct 170 MW Wind Project in Texas ANDHRA CEMENTS: First Qtr. Net Profit Down 78% to INR112 Million ANDHRA CEMENTS: Members Approve Charge/Mortgage on Properties BALLARPUR INDUSTRIES: Eyes Technical Tie-Up w/ Swedish Firms GENERAL MOTORS: Labor Talks Slows Down Over Planned VEBA Trust GLOBAL BROADCAST: Members to Decide Allotment of Warrants GUJARAT SIDHEE: Reappoints Manubhai & Co. as Auditors IFCI LTD: Ten Firms Submit Expression of Interest for 26% Stake IFCI LTD: Chairman N. Balasubramanian Resigns I N D O N E S I A ALCATEL-LUCENT: Robert W. Baird Maintains Neutral Rating on Firm ALCATEL-LUCENT: Morgan Keegan Maintains Outperform Rating ALCATEL-LUCENT: Societe Generale Reaffirms "Sell" Rating on Firm BANK INTERNASIONAL: Hires New Auditor for Fiscal-Year 2007 BANK INTERNASIONAL: Acts as Selling Agent for Schroders BANK NIAGA: Unit Bags Best Syariah Unit 2007 Award BANK PANIN: Partners with Visa Int'l on Credit Card Venture FOSTER WHEELER: Inks Demonstration Project Deal with Praxair J A P A N MITSUBISHI MOTORS: To Move Outlander Production to Netherlands SEIYU LTD: Changes 2007 Forecast to 6th Straight Annual Loss * Moody's Sees Stable Outlook for Japanese Cosmetics Sector K O R E A COREBRID INC: Names Jeon Byung Cheol as Largest Shareholder COREBRID INC: Partners w/ Venture Square for Expansion Efforts DAEWOO ELECTRONIC: Changes Offering Means for Shares Issue M A L A Y S I A MEGAN MEDIA: Mayban Wants to Wind-Up Memory Tech's Operations PAN GLOBAL: Denies Report on Insurance Unit Sale to Golden Plus PAN MALAYSIAN: To Acquire Land and Building for MYR39 Million N E W Z E A L A N D BEALEY ONE: Taps Nellies and Deuchrass as Liquidators CARBONARA ENTERPRISES: Court to Hear Wind-Up Petition on Nov. 29 CHURCH GILES: Fixes October 5 as Last Day to File Claims FOX KITCHENS: Court Appoints Interim Liquidators IL PASSO: Subject to Four K's Wind-Up Petition NORTH RIVER: Creditors' Proofs of Debt Due on Sept. 28 PIEMME PROPERTIES: Commences Liquidation Proceedings PLASTERMEN LTD: Appoints Brown and Rodewald as Liquidators PROVINCIAL FINANCE: Debenture Holder Repayments Total NZ$192MM S.A.F.E. CONTRACTING: Commences Wind-Up Proceedings W M O LTD: Taps Nellies and Deuchrass as Liquidators P H I L I P P I N E S ATLAS CONSOLIDATED: Subsidiary to Augment Capital to PHP3.2 Bil. BANGKO SENTRAL: Will Finish 2nd Forex Liberalization by Year-end BANKARD INC: Appoints Three New Members of Executive Committee CHIQUITA BRANDS: U.S. Federal Court Fines Firm US$25 Million METROPOLITAN BANK: Elects Richard Benedict So as Sr. Vice Pres. METROPOLITAN BANK: Ramon Sy Resigns as Director & Vice Chairman NIHAO MINERAL: Mina Tierra Deal Cues Trading Suspension by PSE PHILCOMSAT HOLDINGS: Justice Dept. Proposes Dissolution of Firm PHIL LONG DISTANCE: Job Cuts May Boost Earnings, Analysts Say STEEL CORP: Seeks to Have Atty. Gabionza Sacked as Receiver S I N G A P O R E AAR CORP: Reports Record Quarterly Sales and Record 1Q Earnings CKE Restaurants: Posts US$9.4-Mil. Net Income in 2nd Qtr. 2007 OPTIMUM-3 INTERNATIONAL: Court to Hear Wind-Up Petition Today REFCO: Litigation Trust Files Suit Against Advisers & Insiders REFCO INC: Former Officers Want Reimbursement of Defense Costs T H A I L A N D TMB BANK: Major Shareholder Refuses to Inject Funds for Capital * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= A.D. WINTER: Members Resolve to Liquidate Business -------------------------------------------------- At an extraordinary general meeting held on August 17, 2007, the members of A.D. Winter Pty. Ltd. resolved to voluntarily liquidate the company's business. Victor Raymond Dye and Roger Darren Grant were appointed as liquidators. The Liquidators can be reached at: Victor Raymond Dye Roger Darren Grant Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About A.D. Winter A.D. Winter Pty Ltd operates offices and clinics of doctors of medicine. The company is located at Canterbury, in Victoria, Australia. ALEXANDRA BEACH: Members to Hold Final Meeting on September 25 -------------------------------------------------------------- A final meeting will be held for the members of Alexandra Beach Resort Apartments Pty Ltd on September 25, 2007, at 9:15 a.m. At the meeting, Richard Judson, Alexandra Beach's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Richard Judson c/o Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham, Victoria 3192 Australia About Alexandra Beach Alexandra Beach Resort Apartments Pty Ltd is a distributor of durable goods. The company is located at Brisbane, in Queensland, Australia. BALTO PTY: Sets Joint Meeting for October 1 ------------------------------------------- A joint meeting will be held for the members and creditors of Balto Pty Ltd on October 1, 2007, at 9:05 a.m. At the meeting, Robert M. H. Cole, Balto's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Robert M. H. Cole Robert M H Cole & Co Chartered Accountants 6 Moorabool Street Geelong, Victoria 3220 Australia About Balto Pty Located at Geelong, in Victoria, Australia, Balto Pty Ltd is an investor relation company. BASIS YIELD: Judge Says Insolvency Motion Hearing is Evidentiary ---------------------------------------------------------------- As previously reported in the Troubled Company Reporter-Asia Pacific, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham, as joint provisional liquidators and foreign representatives of Basis Yield Alpha Fund (Master), asked the U.S. Bankruptcy Court for the Southern District of New York to recognize the Fund's liquidation proceeding before the Grand Court of the Cayman Islands as a foreign main proceeding pursuant to Section 1517 of the Bankruptcy Code. Judge Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York (Manhattan) said the hearing slated for November 19, 2007, to consider the request for recognition of Basis Yield's liquidation proceedings as a foreign main or non-main proceeding under Chapter 15 of the U.S. Bankruptcy Code will be an evidentiary hearing. The hearing may be continued to November 20, if necessary. Whether or not any party-in-interest ultimately objects to the Chapter 15 Motion for Recognition, Basis Yield's joint provisional liquidators are required to introduce sufficient evidence for the Court to make factual findings with respect to: (a) in what jurisdiction or jurisdictions Basis Yield is organized or registered, and as what kind of business entity; (b) to what extent Basis Yield is registered or qualified to do business in any jurisdictions other than the jurisdiction in which it was organized; (c) where Basis Yield maintains offices, and what functions are performed at each office; (d) the number, locations, and functions of any personnel employed; (e) the number, locations, and functions of any personnel who are not employed by Basis Yield but who perform services on its behalf; (f) the extent to which other business entities exercise managerial control over Basis Yield operations and their headquarters; (g) the places at which investment or portfolio management for Basis Yield is conducted and the number, locations, and functions of people who are responsible; (h) the places at which any Basis Yield administrative or back-office operations are conducted, and the number, locations and functions of people who are responsible; (i) the places at which assets of the Basis Yield estate are located, and the approximate value of the assets at each locale; (j) the extent to which real property is leased or owned by Basis Yield and its location; (k) the extent to which assets were transferred to or from the Cayman Islands before or after the initiation of the liquidation proceedings in the Grand Court of the Cayman Islands and the circumstances surrounding any transfers; (l) the identity and location of the members of the Basis Yield governing body before the appointment of the joint provisional liquidator's, the places at which they met personally within the last several years, the extent meetings were in whole or in part conducted telephonically, and the place or places from which the members of the governing body called in; (m) the number and location of Basis Yield creditors; (n) the number and location of equity investors in Basis Yield and the relative percentages of the applicable equity that investors in each locale hold; (o) the extent to which Basis Yield had or now has contractual agreements with entities that are: -- organized under the laws of the Cayman Islands; and -- have offices in the Cayman Islands; or -- employ residents of the Cayman Islands; (p) the locales at which Basis Yield maintains its financial records and, if applicable, equity investor registries, and, if different, where they were maintained before the commencement of the Cayman Islands Proceeding; (q) the extent, if any, to which Basis Yield is required to keep books or records in the Cayman Islands; the extent to which Basis Yield does so; and the extent to which books or records not required to be kept in the Cayman Islands are maintained there; (r) the locales of obligors with respect to any Basis Yield receivables; (s) the extent to which Basis Yield is a party to any contractual agreements that set forth the law to be applied in the event of any disputes thereunder; (t) the nature and extent of nontransitory economic activity carried out by Basis Yield in the Cayman Islands; and (u) the extent, if any, to which Basis Yield is subject to the prohibitions of Companies Law (2004 Revision) of the Cayman Islands Section 193, and, if applicable, the extent to which Basis Yield's activities, or the locale thereof, are affected by the provisions of Section 193. At the November hearing, Basis Yield's attorneys will also be required to address U.S. Bankruptcy Judge Burton Lifland's order rejecting a similar bid for recognition of a Caymans bankruptcy proceeding by two Bear Stearns Cos. hedge funds after finding that they did most of their business in the U.S. Judge Gerber also noted that discovery will be served on or before September 21. The Liquidators will produce pertinent documents by October 15 with depositions, if necessary, occurring between October 15 and the evidentiary hearing. Basis Yield won on September 6, 2007, temporary protection from lawsuits and seizure of assets by U.S. creditors while its Chapter 15 case is being assessed for a permanent injunction. At the September 6 hearing, Judge Gerber made it clear to all the parties that he was not going to express any inclinations as to whether recognition will be granted at the time of the recognition hearing. The issue of the hearing is the propriety of continuation of the TRO into the form of a preliminary injunction, Judge Gerber said. Jerry L. Hall, Esq., at Pillsbury Winthrop Shaw Pittman, LLP, in Washington D.C., argued that the Debtors own substantial assets in New York and that attacks on the assets would interfere with the mandate of the Liquidators in the Cayman proceeding by creating a risk of inequitable distribution to creditors who otherwise would share in a distribution administration of the Basis Yield estate. Mr. Hall further pointed out that Basis Yield's incorporation is in the Cayman Islands and its two feeder funds are both Cayman Island entities regulated by the Cayman Island monetary authority. If the facts were insufficient to support a finding of a center of main interest, Mr. Hall said they satisfy a finding of establishment which essentially requires that non- transitory economic activity occur in the Cayman Islands. "[F]airness to the [Liquidators] and perhaps to the creditor community as a whole, requires sorting out these issues as quickly as possible and taking away uncertainty from the [Liquidators'] side in this case," Judge Gerber said. Judge Gerber also held that assuming the request for Chapter 15 recognition is denied, "the chances of me immediately pulling the plug and leaving this case in free fall mode are very small." About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands-based mutual fund managed by Basis Capital Fund Management Ltd. in Australia. Basis Capital is fully licensed and regulated by the Australian Securities and Investment Commission as a Responsible Entity. Basis Capital is a founding member of the Australian Chapter of the Alternative Investment Management Association. Bloomberg relates Basis Capital was declared "Fund of the Year" at the 2005 AsiaHedge awards. It was also named "Skilled Manager of the Year" by Macquarie Bank Ltd. in 2004. Road to Bankruptcy Following the volatility in the market related to the United States sub-prime lending defaults, by June 2007, Basis Yield began to suffer a significant devaluation of its asset portfolio. The devaluation of the Fund's secured assets led to margin calls from trade counterparties, which Basis Yield was ultimately unable to meet. This, in turn, resulted in the issuance of several default notices by the counterparties and the exercise of their rights under their agreements to close out trades and to seize or sell Basis Yield assets that had been the subject of repurchase agreements or over which they held security interests. Default notices were issued by, inter alia, J.P. Morgan Chase Bank N.A., Goldman Sachs International, Citigroup Global Markets Limited, Morgan Stanley, Lehman Brothers International (Europe), and Merrill Lynch International. In addition, two counterparties issued bid lists for Basis Yield's assets, which resulted in additional downward pressure on the relevant asset classes and a further devaluation of the Fund's assets. Basis Yield disputed many of the default notices issued or purportedly issued by various parties. Basis Capital stopped redemptions from its Yield Alpha Fund and Aust-Rim Opportunity Fund in July 2007 after both funds lost 9% and 14% in June, Bloomberg says. Basis Capital retained The Blackstone Group to act as financial advisor to the Yield Alpha Fund and Pac-Rim Opportunity Funds. Blackstone's role included negotiating with investment banks to prevent adverse pricing and selling of both funds' assets. For the past five years, the Yield Alpha Fund returned 15.5% on average while the Aust-Rim Opportunity Fund provided almost 15% return on average, according to Bloomberg, citing a July 2007 report by Zenith Investment Partners posted on Basis Capital's Web site. Bloomberg notes that the Basis Capital funds had the highest five-star ratings from Standard & Poor's before the ranking was put "on hold" on July 17, 2007, because of "issues potentially affecting the management of the fund," according to S&P. Chapter 15 Ancillary Case On August 29, 2007, the Liquidators filed a petition before the U.S. Bankruptcy Court for the Southern District of New York seeking recognition of Basis Yield's liquidation in the Cayman Islands as a "foreign main" proceeding under Chapter 15 of the U.S. Bankruptcy Code. The Liquidators also asked the U.S. Court to enjoin and restrain U.S. creditors from commencing actions with respect to the Fund's assets in the United States. Basis Yield is estimated to have more than US$100,000,000 in total assets and total liabilities, and less than 49 creditors, the Chapter 15 petition said. The Liquidators noted that in excess of US$50,000,000 of Basis Yield's assets, held by various financial institutions, are located within the United States. Basis Capital has said losses in Basis Yield could exceed 80%, Tiffany Kary and Jenny Strasburg at Bloomberg report. BASIS YIELD: U.S. Court Extends Injunction Until Nov. 19 -------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York (Manhattan) has granted Basis Yield Alpha Fund (Master) temporary protection from lawsuits and seizure of assets by U.S. creditors while its Chapter 15 case is being assessed for a permanent injunction, Bloomberg News reported. Basis Yield, which is being liquidated in the Grand Court of the Cayman Islands, where it is registered, had filed for Chapter 15 protection in the U.S. Court on August 29, 2007, asking to be shielded from U.S. creditors and for recognition of its main Caribbean bankruptcy proceeding. "I am not inclined to make any findings today as to whether recognition should ultimately be granted [for the Cayman filing]," U.S. Bankruptcy Judge Robert Gerber said at a Sept. 6 hearing in New York, according to Bloomberg. The U.S. Court will convene a hearing on November 19 to consider Basis Yield's request for recognition of the Caymans proceeding. Bloomberg reported that Judge Gerber had told Basis Yield attorneys to be prepared to address U.S. Bankruptcy Judge Burton Lifland's August 30 order rejecting a similar bid for recognition of a Caymans bankruptcy proceeding by two Bear Stearns Cos. hedge funds after finding that they did most of their business in the U.S. As previously reported, Basis Yield's registered office, the feeder funds, 10% of investors and all of its records are located in the Caymans. On August 29, Basis Yield's Chapter 15 case received recognition from the High Court of Justice, Chancery Division, Companies Court, in England. Under Chapter 15 of the U.S. Bankruptcy Code, a company with an insolvency filing in another country where it has a significant presence can ask U.S. courts to defer to a foreign proceeding. Representing Citigroup Global Markets Ltd., a creditor in Basis Yield's case, Lindsee Granfield, Esq., at Cleary Gottlieb Steen & Hamilton in New York, however, asserted that "it isn't clear where the fund's main interests are." Ms. Granfield added that the Court will have to determine "where are the assets and where were these funds actually operated." If Citigroup were to successfully argue that the Yield Fund's main business operations are not in the Cayman Islands but in the U.S., then Basis Yield's Chapter 15 case in the U.S. could fail, allowing U.S. creditors to file lawsuits against the fund, according to The Australian. The paper further stated that investors face losing more than 80% of their US$320,000,000 total stake, based on the most recent update from Basis Capital Group. Judge Gerber said he wants "to move quickly to resolve as many issues as possible" out of fairness to Grant Thornton International, the liquidator appointed by the Cayman Islands court, according to Bloomberg. The exact assets of the fund are "undetermined," Bloomberg said. Basis Yield indicated in its Chapter 15 petition that its assets and liabilities aggregate more than US$100,000,000 each. Basis Yield's assets is down from US$436,000,000 at Jan. 31, 2007, according to Bloomberg data. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands-based mutual fund managed by Basis Capital Fund Management Ltd. in Australia. Basis Capital is fully licensed and regulated by the Australian Securities and Investment Commission as a Responsible Entity. Basis Capital is a founding member of the Australian Chapter of the Alternative Investment Management Association. Bloomberg relates Basis Capital was declared "Fund of the Year" at the 2005 AsiaHedge awards. It was also named "Skilled Manager of the Year" by Macquarie Bank Ltd. in 2004. Road to Bankruptcy Following the volatility in the market related to the United States sub-prime lending defaults, by June 2007, Basis Yield began to suffer a significant devaluation of its asset portfolio. The devaluation of the Fund's secured assets led to margin calls from trade counterparties, which Basis Yield was ultimately unable to meet. This, in turn, resulted in the issuance of several default notices by the counterparties and the exercise of their rights under their agreements to close out trades and to seize or sell Basis Yield assets that had been the subject of repurchase agreements or over which they held security interests. Default notices were issued by, inter alia, J.P. Morgan Chase Bank N.A., Goldman Sachs International, Citigroup Global Markets Limited, Morgan Stanley, Lehman Brothers International (Europe), and Merrill Lynch International. In addition, two counterparties issued bid lists for Basis Yield's assets, which resulted in additional downward pressure on the relevant asset classes and a further devaluation of the Fund's assets. Basis Yield disputed many of the default notices issued or purportedly issued by various parties. Basis Capital stopped redemptions from its Yield Alpha Fund and Aust-Rim Opportunity Fund in July 2007 after both funds lost 9% and 14% in June, Bloomberg says. Basis Capital retained The Blackstone Group to act as financial advisor to the Yield Alpha Fund and Pac-Rim Opportunity Funds. Blackstone's role included negotiating with investment banks to prevent adverse pricing and selling of both funds' assets. For the past five years, the Yield Alpha Fund returned 15.5% on average while the Aust-Rim Opportunity Fund provided almost 15% return on average, according to Bloomberg, citing a July 2007 report by Zenith Investment Partners posted on Basis Capital's Web site. Bloomberg notes that the Basis Capital funds had the highest five-star ratings from Standard & Poor's before the ranking was put "on hold" on July 17, 2007, because of "issues potentially affecting the management of the fund," according to S&P. Chapter 15 Ancillary Case On August 29, 2007, the Liquidators filed a petition before the U.S. Bankruptcy Court for the Southern District of New York seeking recognition of Basis Yield's liquidation in the Cayman Islands as a "foreign main" proceeding under Chapter 15 of the U.S. Bankruptcy Code. The Liquidators also asked the U.S. Court to enjoin and restrain U.S. creditors from commencing actions with respect to the Fund's assets in the United States. Basis Yield is estimated to have more than US$100,000,000 in total assets and total liabilities, and less than 49 creditors, the Chapter 15 petition said. The Liquidators noted that in excess of US$50,000,000 of Basis Yield's assets, held by various financial institutions, are located within the United States. Basis Capital has said losses in Basis Yield could exceed 80%, Tiffany Kary and Jenny Strasburg at Bloomberg report. CENTURY CABINETS: Declares First Dividend ----------------------------------------- Century Cabinets Pty Ltd, which is in liquidation, declared its first dividend on September 20, 2007. Only creditors who were able to file their claims by the September 19 due date were included in the company's dividend distribution. CHRYSLER LLC: Brake Problems Trigger Recall of 369,000 Vehicles --------------------------------------------------------------- Chrysler LLC is recalling 296,550 sport utility vehicles following reports of problems with brake systems and door latches and locks, Reuters states. Chrysler has revealed that a glitch in an electronic control unit could cause a delay in braking when the vehicles are driving uphill. Affected vehicles include Jeep Grand Cherokee and Jeep Commander SUVs for the 2006 and 2007 model years and the 2007 Jeep Wrangler and Dodge Nitro, Reuters relates. "It's a very rare occurrence," Chrysler Spokesman Max Gates said, Reuters notes. "But we have had reports of drivers experiencing problems when they take their foot off the accelerator." When drivers in one of the affected vehicles stop accelerating up a hill, that can trigger a momentary loss of braking power for a second or two, Mr. Gates explains. Chrysler will notify the owners of the SUVs affected by the recall this month and offer free repair work as well, the report says. Chrysler is also recalling about 72,333 2008 Chrysler Sebring and Dodge Avenger sedans because of a potential problem with a cable connected to the front door latches in the vehicles, Reuters reveals. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler LLC is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. * * * As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC's (B/Negative/--) US$10 billion senior secured first-lien term loan facility due 2013, following various changes to terms and conditions prior to closing. The US$10 billion first-lien term loan now consists of a US$5 billion "first-out" tranche and a US$5 billion "second-out" tranche, so the aggregate amount of first-lien debt remains unchanged. Accordingly, S&P assigned a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first- lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. COLES GROUP: Posts AU$572-Million NPAT for Fiscal Year 2007 ----------------------------------------------------------- Coles Group Ltd announced underlying net profit after tax (NPAT) of AU$792.4 million for the 52 weeks ended July 29, 2007, in a year of transition. * Underlying net profit after tax AU$792.4 million; * Food and Liquor earnings down 9.5%; * Other brands delivered over 20% growth; * Underlying earnings per share (NPAT) up 4.7% to 66.2 cents; * Final dividend up 11.1% to 25.0 cents per share. NPAT, after costs associated with the ownership review, was AU$747.8 million. Sales for continuing businesses increased by 1.4% to AU$34.7 billion. While excluding ownership review costs, the underlying result includes one-off benefits from the writeback of a Myer provision and renegotiated Coles Express leases offset by additional consultancy and redundancy costs. "When we launched our new growth strategy in July 2006, we said that after five years of compound earnings growth of 19%, earnings would be flat in FY07 as the Company transitioned through its business transformation and simplification programs," CEO John Fletcher said. "The result being announced today includes a lower contribution from Supermarkets, as previously flagged, offset by the strong performance of all other businesses and additional savings identified in business simplification. "Target, Kmart, Officeworks and Coles Express all delivered excellent results, collectively generating over 20% profit growth. "Target's achievement of a 16.8% increase in EBIT to AU$290 million reinforced the brand's reputation as Australia's most successful women's apparel retailer. "Kmart's 27.4% rise in EBIT to AU$96.8 million demonstrated the success of its new strategy to improve margin and profitability by reducing its reliance on promotional activity. "Officeworks' 14.0% increase in EBIT to AU$85.4 million further consolidated the unique position of the Group's office products business. "Coles Express reported a 51.3% increase in EBIT to AU$45.4 million, excluding AU$34.5 million for renegotiated leases previously expensed under AIFRS. The result reflected a strong contribution from the convenience stores. "These brands achieved strong results in a very difficult year in which the challenges of transformation and strategic restructuring were compounded by the disruption of ownership uncertainty," Mr. Fletcher said. "It was a challenging year in Supermarkets, where Food and Liquor EBIT fell by 9.5% to AU$693.3 million, mainly due to the poor execution of the Bi-Lo rebranding strategy and the impact of the change program on the business. However, we are clear on the underlying issues and priorities. "While we have made good progress in our priority areas, there is still considerable work to be done in addressing the key issues impacting the business, as well as strengthening organizational capability," he said. Coles Liquor performed strongly, with the successful consolidation and integration of acquisitions, and the roll-out of the 1st Choice network ahead of expectations. Mr. Fletcher said plans to simplify the business had progressed well, with benefits of over AU$100 million achieved to date. "We remain on track to exceed the run-rate targeted for the end of FY08, with more than AU$400 million in savings identified," he said. "Business transformation has continued with six new distribution centers now successfully on-line and one-touch store handling media implemented. The first phase of the Supermarkets' multibuy and discounting program is now live in a group of pilot stores. "Given this progress and in line with the simplification strategy to progressively move retail support functions into the Everyday Needs Business, supply chain accountability will now be integrated into the retail businesses over the coming months. "We have continued to invest very significantly in expansion of our businesses in FY07. Capital expenditure of AU$1.2 billion has been outlayed on 54 new stores and 153 refurbishments, a network of new distribution centers and new IT systems, as well as acquisitions," he said. Directors have declared a final dividend of 25.0 cents per share, up 2.5 cents per share, or 11.1% on last year's final dividend and bringing the total dividend for the year to 44.5 cents per share. Ownership update Coles Group Chairman, Rick Allert, said that the Company had submitted the scheme documentation, including the report of the Independent Expert, Grant Samuel & Associates, to ASIC for examination before approval by the Supreme Court. Mr. Allert said that the Board unanimously recommends the Wesfarmers' proposal to shareholders in the absence of a superior proposal. The shareholder meeting to vote on the scheme will be held in Melbourne in November. In the meantime, planning for ownership transition was underway following the first meeting of the Business Engagement and Integration Committee. Outlook Directors have concluded that it would be inappropriate to maintain guidance for FY08 provided on February 23 2007, given that the company will not remain in its current structure under any scenario. In the interim, however, Coles Group is continuing to operate under plans consistent with that guidance. Most of the Group's businesses will transition to new ownership in very good shape, performing well and with clear growth strategies. In Supermarkets, plans have been developed and are now being put in place to restore the customer offer and progressively rebuild sales momentum. Over the next few years the business will start to reap the significant financial upside of the investment made in business transformation, as well as some AU$400 million in annualized savings from our simplification program. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. COLES GROUP: Executives Defend Wesfarmers Sale ---------------------------------------------- Coles Group Limited bosses defended their decision to sell the struggling retailer than having to hand it over to a new management, the Australian Associated Press reports. AAP conveys that Coles Chairman Rick Allert and Chief Executive John Fletcher faced down criticism of their roles after delivering an annual result almost 36% less than last year's profit. Mr. Allert, according to AAP, rejected repeated queries from market analysts over why he had not considered resigning and letting someone else run the ailing business. AAP quotes Mr. Allert as saying, "The board has not thought it was appropriate for it (the board) to resign. We thought that we've gone through an appropriate and proper process to get where we are today. We were in a position where a number of parties were expressing interest. The right thing to do for shareholders was to go through the ownership-review process, which we've done." According to AAP, when he was questioned why he had endorsed Wesfarmers' offer even though it did not meet his original criteria of being "fair and reasonable," Mr. Allert's answer was, "I said at the time 'fair and reasonable'. If I'd said 'in the shareholders' best interests', I could have easily said that. 'Fair and reasonable', I think, is supplanted by 'in the shareholders' best interests'," notes AAP. Mr. Fletcher, on the other hand, defended his management pointing out that the retailer's share price had risen significantly from AU$5.80 when he was appointed six years ago. According to Mr. Fletcher, they "didn't start the ownership process," instead a "bid came over the wall at us, which I think has changed our future dramatically," AAP notes. Reportedly, Coles shareholders will vote on Wesfarmers' cash- and-scrip offer at a meeting in November. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. COLES GROUP: Wesfarmers Raise AU$10 Billion for Takeover -------------------------------------------------------- Wesfarmers Ltd. raised AU$10 billion in loans for the takeover of Coles Group Limited, Laura Cochrane writes for Bloomberg News. Wesfarmers raised AU$4 billion in one-year loans, AU$5 billion in three-year loans and AU$1 billion in revolving loans, notes Reuters. Ms. Cochrane writes that this is a record for an Australian borrower. Bloomberg conveys that head of Australian loan syndication at BNP Paribas SA, Wayne Green, said that a presentation to 12 banks -- possible buyers of the debt -- will be held in Sydney on September 21. According to Bloomberg, BNP Paribas, Australia & New Zealand Banking Group Ltd. and National Australia Bank Ltd. were the underwriters for the loan. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. E.D. CULLEN: Declares First & Final Dividend -------------------------------------------- E.D. Cullen (Holdings) Pty Ltd, which is in liquidation, declared its first and final dividend on September 18, 2007. A meeting will also be held for the company's members on September 25, 2007, at 10:45 a.m. The company's liquidator is: Richard Judson c/o Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham, Victoria 3192 Australia About E.D. Cullen Located at Concord, in New South Wales, Australia, E.D. Cullen (Holdings) Pty Ltd is an investor relation company. FORTESCUE METALS: S&P Puts Finance Unit Rating on CreditWatch ------------------------------------------------------------- Standard & Poor's Ratings Services said its 'BB-' issue ratings on FMG Finance Pty Ltd. (100% owned by Fortescue Metals Group Ltd. [FMG]) remain on CreditWatch with negative implications pending a decision by FMG as to the amount of new equity that will be injected into the project finance structure. FMG successfully completed an equity issue in July 2007, raising AU$504 million. The issue ratings were placed on CreditWatch on June 29, 2007, amid concerns of weakening liquidity at the project level due to increasing cost overruns and additional unbudgeted expenditure. If insufficient funds are transferred into the project structure and excess liquidity remains at the parent level, the current 'BB-' issue ratings could be lowered as much as three notches, reflecting the weakening project liquidity and the counterparty credit quality of the parent and guarantor. The project is over 50% complete and the first ore on ship remains scheduled for mid-May 2008. Importantly, completion of the port, mine, and rail projects relies on adequate reserve accounts, with sufficient cash to fund working capital and commissioning through ramp-up to steady-state production. Standard & Poor's would be concerned if material amounts of ore were sold before completion, as this could put pressure on the project's working capital during the ramp-up stage. Recent FMG announcements indicate a clear ambition to expand production above the targeted 45 million tonnes per annum production rate for Phase 1 and take advantage of strong market conditions. However, should these expansion initiatives occur prior to completion and commissioning of the project, bondholder consent will be required in some instances. It is unclear what growth plans the company is considering, the costs associated with any pre-completion expansion, and how construction risk will be managed. Any unbudgeted expansion plans will have an impact on the project ratings unless adequately funded with minimal impact on commissioning timetables. The CreditWatch is likely to be resolved in the coming weeks. A return to a stable outlook could follow if FMG injects new equity funding into the project that replenishes reserve accounts covering unbudgeted and expansion costs, makes allowances for future cost overruns, and provides adequate funding of working capital through ramp-up to sustainable operation. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. In August 2006, Moody's Investors Service assigned a Ba3 rating to approximately US$1.9 billion in senior secured 144A bonds to be issued by FMG Finance Pty Ltd, the financing vehicle of the Fortescue Metal Group. The funding will be used to partially finance the development of the Company's iron ore mine in the Pilbara region of Western Australia as well as an associated rail line and port infrastructure. JAMS 1: Members to Receive Wind-Up Report on September 25 --------------------------------------------------------- The members of Jams 1 Pty Ltd will meet on September 25, 2007, at 10.30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Judson c/o Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham, Victoria 3192 Australia About Jams 1 Jams 1 Pty Ltd is a distributor of industrial and personal service paper. The company is located at Flemington, in Victoria, Australia. MARCUS MEADOWS: Liquidator Presents Wind-Up Report -------------------------------------------------- On September 19, 2007, the members and creditors of Marcus Meadows Pty Ltd met and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ross Mcdermott Chartered Accountant PO Box 579 Carlton, Victoria 3053 Australia Telephone:(03) 9347 0411 About Marcus Meadows Located at Brighton, in Victoria, Australia, Marcus Meadows Pty Ltd is an investor relation company. PANACHE IMPORTS: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary general meeting held on August 17, 2007, the members of Panache Imports Pty. Ltd. agreed to voluntarily liquidate the company's business. Victor Raymond Dye and Roger Darren Grant were appointed as liquidators. The Liquidators can be reached at: Victor Raymond Dye Roger Darren Grant Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Panache Imports Panache Imports Pty Ltd, which is also trading as Salon Supplies, id a distributor of drugs, proprietaries and sundries. The company is located at Abbotsford, in Victoria, Australia. PEABODY ENERGY: Gets Subpoena from New York Attorney General ------------------------------------------------------------ Environment News Service reports that New York Attorney General Andrew Cuomo has subpoenaed Peabody Energy, demanding that the firm disclose the financial risks of its greenhouse gas emissions to shareholders, specifically to the New York State Common Retirement Fund. Environment News relates that Mr. Cuomo also sent the subpoenas to: -- Dominion Resources, -- Xcel Energy, -- Dynegy, and -- AES Corporation. Mr. Cuomo told Environment News that he is asking Peabody Energy to disclose the risks related to the construction of power plants that will generate 3,100 megawatts of power and may subject the firm to increased financial, regulatory and litigation risks. Mr. Cuomo commented to Environment News, "Climate change is one of the most pressing environmental challenges facing the world today." He reminded the executives that emissions from US power plants "constitute 30% of total US carbon emissions." "Regulation of greenhouse gas emissions on the state level through the Regional Greenhouse Gas Initiative will begin," Environment News notes, citing Mr. Cuomo. Mr. Cuomo told Environment News, "Any one of the several new or likely regulatory initiatives for CO2 emissions from power plants -- including state carbon controls, E.P.A.'s regulations under the Clean Air Act, or the enactment of federal global warming legislation -- would add a significant cost to carbon- intensive coal generation. Selective disclosure of favorable information or omission of unfavorable information concerning climate change is misleading." According to Environment News, Peabody Energy claimed that the attorney general's claims of nondisclosure were "inaccurate" and written with political motives. Peabody Energy told Environment News that it "is happy to point out our clear disclosures regarding climate change and correct the letter's inaccuracies. For instance, the letter states that we don't have climate disclosure ... but in fact we do, in multiple places in our SEC filings on Form 10-K, annual report and social responsibility report. These are all available via Internet for anyone wanting to research the company. In addition to advancing clean new coal generation, Peabody is a founding member of the zero-emissions FutureGen project to commercialize carbon capture and storage." Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia and Venezuela. * * * As reported in the Troubled Company Reporter on Mar 9, 2007, Moody's Investors Service reported that, after the adoption of final guidelines for preferred stock and hybrid securities notching, it downgraded Peabody Energy Corporation's hybrid instrument to Ba3. This instrument was placed on review for downgrade. THE MOVIE CHANNEL: To Declare First Dividend on September 26 ------------------------------------------------------------ The Movie Channel Pty Ltd, which is in liquidation, will declare first dividend on September 26, 2007. Creditors who were not able to file their claims by the September 19 due date will be excluded from sharing in the company's dividend distribution. The company's liquidator is: John Georgakis Ernst & Young 8 Exhibition Street Melbourne, Victoria Australia Telephone:(03) 9288 8000 About The Movie Channel Located at South Melbourne, in Victoria, Australia, The Movie Channel Pty Ltd is an investor relation company. TRICOM SYSTEMS: To Declare First Dividend on September 26 --------------------------------------------------------- Tricom Systems Pty Ltd, which is in liquidation, will declare its first dividend on September 26, 2007. Creditors who failed to file proofs of debt by the September 19 due date will be excluded in the company's dividend distribution. The company's liquidator is: John Georgakis Ernst & Young 8 Exhibition Street Melbourne, Victoria Australia Telephone:(03) 9288 8000 About Tricom Systems Tricom Systems Pty Ltd operates offices of holding companies. The company is located at Bendigo, in Victoria, Australia. ================================ C H I N A & H O N G K O N G ================================ 401 HOLDINGS: Contributories and Creditors to Meet on October 17 ---------------------------------------------------------------- 401 Holdings Limited, which is in compulsory liquidation, will hold a meeting for its contributories and creditors on Oct. 17, 2007, at 10:00 a.m., and 11:00 a.m. The meeting will be held at 1401, Level 14, Tower 1 Admiralty Centre, in 18 Harcourt Road, Hong Kong. BOHILL INTERNATIONAL: Members' General Meeting Set for Oct. 18 -------------------------------------------------------------- The members of Bohill International Limited will have their general meeting on October 18, 2007, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Rooms 10-02, 23rd Floor of The Kwangtung Provincial Bank Building, 409-415 Hennessy Road in Causeway Bay, Hong Kong. CHINA EASTERN: Inks Regional Carrier JV with China Aviation ----------------------------------------------------------- China Eastern Airlines has entered into a joint venture agreement with China Aviation Industry Corp I (AVIC I) for a regional carrier that will begin operating in the first half of next year, a senior AVIC I executive told China Daily. The planned regional airline will be headquartered in western China, with AVIC I holding 60% of its stakes, AVIC I Senior Vice-President Hu Wenming said in its interview with the news agency. The carrier will have a registered capital of CNY1 billion (US$129 million), and an initial fleet of at least 10 MA60 aircraft, manufactured by AVIC I, China Daily notes. "Our long-term aim is to operate 100 regional aircraft, made by AVIC I, and to play an important role in western China's economic development," Mr. Hu said. The regional airline is the first in China to be set up by an aircraft manufacturer, a rarity in the world aviation industry, the report says. It's the most "direct" way AVIC I can push its products in the market, analysts said. "Having an airline of its own can ensure stable orders for AVIC I's MA60 and ARJ21 aircraft. It can help AVIC I improve the aircraft's quality, too, by receiving feedback on their performance more directly and efficiently," CITICS China Securities aviation analyst Li Lei said. AVIC I and Shanghai-based China Eastern Airlines signed a letter of intent at the end of August to set up the regional carrier. Officials of China Eastern, the country's third largest airline, were not available for comment on the joint venture. 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. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. GLOBAL POWER: Agrees to Sell China Boiler Unit to AE&E Group ------------------------------------------------------------ Global Power Equipment Group Inc. has entered into an agreement with AE&E Group GmbH, a subsidiary of Austrian Energy & Environment AG, for the sale of Global Power's China boiler business unit, located in Nanjing, China. The sale of the China boiler business consists of Global Power Asia Limited, a Hong Kong company, including GPAL's 90% ownership interest in Deltak Power Equipment (China) Co. Ltd. Upon completion of the transaction, Global Power expects to realize a pre-tax gain of approximately US$10.2 million for financial reporting purposes. The transaction is subject to the approval of the United States Bankruptcy Court for the District of Delaware, which is presiding over the chapter 11 cases of Global Power and its domestic subsidiaries. The transaction is expected to close on or about Oct. 10, 2007, after the satisfaction of certain additional conditions to closing. "We have valued our business relationship with our associates in Nanjing and wish AE&E great success," John Matheson, President and Chief Executive Officer of Global Power, said. "We also look forward to continuing and expanding our existing business relationships with our Shanghai company, Braden Power Equipment (Shanghai) Co. Ltd., and throughout China with our ongoing China business activities." Acquired in the summer of 2004, DPEC primarily supported the large heat recovery steam generator product line of Global Power as a manufacturing facility. The poor performance of the HRSG line was the primary factor behind Global Power's decision to commence chapter 11 proceedings in September 2006. Immediately prior to filing the chapter 11 proceedings, the company made the strategic decision to wind down its current large HRSG contracts and discontinue the operations related to large HRSG's. Shortly thereafter, Global Power classified DPEC as a non-core asset and began marketing the China boiler business unit for sale. Both GPAL and DPEC are non-debtor affiliates of Global Power and not part of the U.S. chapter 11 proceedings. Global Power was advised in the transaction by Business Development Asia LLC. About Global Power Headquartered in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Eric Michael Sutty, Esq., Jeffrey M. Schlerf, Esq., Kathryn D. Sallie, Esq., and Mary E. Augustine, Esq., at The Bayard Firm and Malka S. Resnicoff, Esq., and Matthew C. Brown, Esq., at White & Case LLP, represent the Debtor. Adam G. Landis, Esq., Kerri K. Mumford, Esq., and Matthew B. McGuire, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. At Sept. 30, 2005, the Debtors' balance sheet showed total assets of US$381,131,000 and total debts of US$123,221,000. KAI TAK: Liquidators to Give Wind-Up Report on October 18 --------------------------------------------------------- A final meeting will be held for the members of Kai Tak Refuellers Company Limited on October 18, 2007, at 11:00 a.m., at the 35th Floor of Two Pacific Place, in 88 Queensway, Hong Kong. At the meeting, Wong Kung Kar and Leung Suk Ying, Kai Tak's liquidators, will give a report on the company's wind-up proceedings and property didposal. KENLAP P.G.C.: Appoints Yan & Haughey as Provisional Liquidators ---------------------------------------------------------------- On August 3, 2007, Lai Kar Yan and Darach E. Haughey of Deloitte Touche Tohmatsu were appointed as provisional liquidators of Kenlap P.G.C. Manufacturer Company Limited. The provisional Liquidators can be reached at: Lai Kar Yan Darach E. Haughey c/o Deloitte Touche Tohmatsu One Pacific Place, 35th Floor 88 Queensway Hong Kong MITSUI HI-POLYMER: Members to Hold General Meeting on Oct. 18 ------------------------------------------------------------- The members of Mitsui Hi-Polymer (Asia) Limited will hold a final general meeting on October 18, 2007, at 9:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at 1001 Admiralty Centre Tower 1, in 18 Harcourt Road, Hong Kong. PACIFIC CROWN: Appoints Sutton and Chiong as Liquidators -------------------------------------------------------- Roderick John Sutton and Desmond Chung Seng Chiong were appointed as liquidators of Pacific Crown Industrial Limited on August 27, 2007. The Liquidators can be reached at: Roderick John Sutton Desmond Chung Seng Chiong c/o Ferrier Hodgson Limited Hong Kong Club Building, 14th Floor 3A Chater Road, Central Hong Kong POLYWELL ASIA: Members to Receive Wind-Up Report on October 18 -------------------------------------------------------------- A final general meeting will be held for the members of Polywell Asia Limited on October 18, 2007, at Rooms 10-02, 23rd Floor of The Kwangtung Provincial Bank Building, 409-415 Hennessy Road in Causeway Bay, Hong Kong. At the meeting, Lam Chin Chiu, Polywell's liquidator, will give a report on the company's wind-up proceedings and property disposal. TEAMSING ELECTRONIC: Sets Annual Meeting for September 25 --------------------------------------------------------- The members and creditors of Teamsing Electronic Company Limited will have their annual meeting on September 25, 2007, at 3:30 p.m. and 3:45 p.m., respectively, at Room 103, Duke of Windsor Social Service Building, 15 Hennessy Road in Wanchai, Hong Kong. At the meeting, Tony Yuen Wai Kin, Teamsing's liquidator, will give a report on the company's wind-up proceedings and property disposal. UPI TECHNOLOGY: Taps Johnson and Ki as Liquidators -------------------------------------------------- On August 27, 2007, Kong Chi How Johnson and Lo Siu Ki were appointed as liquidators of UPI Technology Limited. The Liquidators can be reached at: Kong Chi How Johnson Lo Siu Ki c/o Messrs. BDO McCabe Lo Limited Wing On Centre, 25th Floor 111 Connaught Road, Central Hong Kong XINAO GAS: Plans to Build US$200-Mil. LNG Terminal in Wenzhou ------------------------------------------------------------- Xinao Gas Holdings Ltd is considering building a liquefied natural gas terminal for up to US$200 million in Wenzhou, Zhejiang province, Reuters reports, citing Chief Executive Officer Yang Yu. The terminal, according to Mr. Yang, will be utilized as storage facility to take advantage of the expected gas usage boom in the coming years. It was designed to have a capacity of 3 million tonnes per year, the report notes. Reuters relates that China, the world's second-largest oil consumer and a nation heavily reliant on coal, plans to build about a dozen LNG terminals along its east coast to help boost gas use to 5.3% of its energy needs by 2010, from around 3% now. Based in Hong Kong, Xinao Gas Holdings Limited -- is an investment holding company. The company, along with its subsidiaries, is principally engaged in the investment in, and the operation and management of, gas pipeline infrastructure and the sale and distribution of piped and bottled gas in the People's Republic of China. Xinao Gas Holdings Limited operates in four divisions: gas connection, sales of piped gas, distributions of bottled liquefied petroleum gas and sales of gas appliances. As of December 31, 2005, more than 90% of its assets are located in the People's Republic of China, including Hong Kong. The company has a total of 7,268 kilometers pipeline network, serving 1.79 million residential households and 4,041 commercial/industrial users (with a total designed daily capacity of 2,495,479 cubic meters). The Troubled Company Reporter-Asia Pacific reported on Aug. 18, 2006, that Moody's Investors Service affirmed XinAo Gas' Ba1 senior unsecured debt rating with a negative outlook. Standard & Poor's gave the company's long-term local and foreign issuer credit a BB+ rating on July 22, 2005. XINAO GAS: In Talks with Spain's Gas Natural Over Supply Deal ----------------------------------------------------------- Xinao Gas Holdings Ltd is in talks with Spanish utility Gas Natural for the supply of super-cooled natural gas, Reuters says, citing company executives as source. The company is also looking for gas resources from Australia to the Middle East, the news agency's sources added. Xinao's Chief Executive Officer, Yang Yu, said that the success of the supply deal to push through depends now on the "prices of imported LNG". The company is keen on boosting its supply due to the gas consumption boom in the mainland. Evidently, for the first half of this year Xinao posted a 40% rise in net profit where sales of piped gas accounted for 58% of total revenue of CNY2.3 billion in the first half, while connection fees made up 33.7%, Reuters relates. The company's connected population expanded to 39.4 million at the end of June from 33.6 million in mid-2006. Based in Hong Kong, Xinao Gas Holdings Limited -- is an investment holding company. The company, along with its subsidiaries, is principally engaged in the investment in, and the operation and management of, gas pipeline infrastructure and the sale and distribution of piped and bottled gas in the People's Republic of China. Xinao Gas Holdings Limited operates in four divisions: gas connection, sales of piped gas, distributions of bottled liquefied petroleum gas and sales of gas appliances. As of December 31, 2005, more than 90% of its assets are located in the People's Republic of China, including Hong Kong. The company has a total of 7,268 kilometers pipeline network, serving 1.79 million residential households and 4,041 commercial/industrial users (with a total designed daily capacity of 2,495,479 cubic meters). The Troubled Company Reporter-Asia Pacific reported on Aug. 18, 2006, that Moody's Investors Service affirmed XinAo Gas' Ba1 senior unsecured debt rating with a negative outlook. Standard & Poor's gave the company's long-term local and foreign issuer credit a BB+ rating on July 22, 2005. XINAO GAS: To Build Dimethylether Plant in Mongolia --------------------------------------------------- Xinao Gas Holdings Ltd plans to build a coal-to-chemical project in the northern Inner Mongolia region, with an annual production of 400,000 tonnes of dimethylether, Reuters reports. Dimethylether, according to the report, is a kind of clean fuel and can substitute natural gas and LPG. International Finance Corp, the private sector arm of the World Bank, has provided US$10 million in investment to the project as a strategic investor, and completed a US$168 million syndication loan. The first phase of that project is due on stream in 2009. Based in Hong Kong, Xinao Gas Holdings Limited -- is an investment holding company. The company, along with its subsidiaries, is principally engaged in the investment in, and the operation and management of, gas pipeline infrastructure and the sale and distribution of piped and bottled gas in the People's Republic of China. Xinao Gas Holdings Limited operates in four divisions: gas connection, sales of piped gas, distributions of bottled liquefied petroleum gas and sales of gas appliances. As of December 31, 2005, more than 90% of its assets are located in the People's Republic of China, including Hong Kong. The company has a total of 7,268 kilometers pipeline network, serving 1.79 million residential households and 4,041 commercial/industrial users (with a total designed daily capacity of 2,495,479 cubic meters). The Troubled Company Reporter-Asia Pacific reported on Aug. 18, 2006, that Moody's Investors Service affirmed XinAo Gas' Ba1 senior unsecured debt rating with a negative outlook. Standard & Poor's gave the company's long-term local and foreign issuer credit a BB+ rating on July 22, 2005. YUE FUNG: Requires Creditors to File Claims by October 5 -------------------------------------------------------- The creditors of Yue Fung Development Company Limited, which is in compulsory liquidation, are required to file their proofs of debt by October 5, 2007, to be included in the company's dividend distribution. The company's liquidators are: Jacky Chung Wing Muk Gabriel Chi Kok Tam Alexandra Building, 27th Floor 18 Chater Road, Central Hong Kong ZTE CORP: Enters Into US$478 Million GSM Deal with ETC ------------------------------------------------------ ZTE Corporation has inked a GSM phase II project contract with Ethiopian Telecommunication Corporation, where the company will supply the Ethiopian firm with products including GSM equipment and related engineering services with a total amount of US$478 million, Infocast News reports. The project is expected to be completed in two years during which the revenue and costs will be recognized according to the progress of the project, the report says. Revenue and costs under the project will be fully accounted for following the issue of the final inspection certificate. ETC is a wholly state-owned company and the sole telecommunications carrier in Ethiopia. Its scope of business covers substantially all telecommunications businesses including fixed line, mobile and data communications. Infocast recounts that in April, ZTE signed a three-year framework agreement with Ethiopian Telecoms covering projects NGN core networks, mobile networks, wireless access networks, and CDMA services. It entered into Phase I, worth US$200 million soon afterward. Headquartered in Shenzhen, China, ZTE Corp's principal activities are the production and sale of general system and communication terminal equipments. The group operates both in the domestic and international market. The Troubled Company Reporter-Asia Pacific reported on Dec. 1, 2006, that Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. The rating Outlook is Stable. * S&P Warns Over Increased Credit Exposure of China's Banks ----------------------------------------------------------- The soaring profitability of China's top banks is diverting attention from rising credit risks as they aggressively expand their loan books. That's according to a major banking publication that Standard & Poor's Ratings Services' released, titled "China's Top 50 Banks". "The profitability of the top 50 banks has significantly increased because of ballooning net interest income, explosive fee and commission income growth, improved cost efficiencies, and favorable credit costs," said Standard & Poor's credit analyst Ping Chew. "The rapid industry-wide expansion of credit exposure suggests that many banks prioritize expanding their asset base and market share over strengthening their capital. Banks need to engage in a careful balancing act between short-term profitability and long-term sustainability." The industry will face significant challenges to maintain currently low credit costs over the long term. Loan loss provision coverage has significantly improved, but remains inadequate. "If the banks in our top 50 banks survey had set aside sufficient reserves to cover latent credit costs, it's likely that they'd have at best only managed to break even in 2006," said Standard & Poor's credit analyst Ryan Tsang. The publication includes in-depth profiles of 41 of the top 50 banks, based on asset size. It also includes a summary of Standard & Poor's bank industry risk analysis, which details the factors behind the decision to raise China's banking industry country risk assessment score to 6 from 7. Additional articles focus on the impact of the country's new bankruptcy and property laws on the banking sector, and the potential rating implications of the commercialization of the country's policy banks. * TRC Praises Taiwan's Life Insurance Industry ---------------------------------------------- The outlook on Taiwan's life insurance industry is stable and industry risk is moderate, according to a recently released Guest Opinion report, titled "Life Insurance Industry Risk Analysis: Taiwan," by Taiwan Ratings Corp., the Taiwan-based subsidiary of Standard & Poor's Ratings Services. "Stable economic conditions and improved operational flexibility have enabled insurers to be more proactive in operational and financial management, in terms of products, channels, and investments, and to diversify their revenue," said Susan Chu, director of financial services ratings at Taiwan Ratings. "Strong competition and a volatile investment environment are likely to be key sensitive factors affecting the sector's performance." Increased operating flexibility, enhanced asset and liability management, and a healthier product mix of in-force business should help the sector to maintain capital strength and current growth levels in new business over the medium term. "Negative interest spreads on old policies with high guaranteed rates have led to the industry's mediocre operating performance in recent years, but the legacy burden is likely to improve over the medium to long term," added Taiwan Ratings' associate Steven Chen. "The industry's return on average assets averaged only 0.42% in 2004-2006, although performances vary among individual insurers." Taiwan's life insurers have significant duration mismatches between assets and liabilities, mainly as a result of the island's somewhat underdeveloped capital markets and regulatory restrictions. To alleviate the problem, most insurers have increased their overseas investment exposure in search of higher yields and longer duration, although this has increased the level of foreign exchange risk they face. Nevertheless, the asset quality and liquidity of insurers' investment portfolios remain satisfactory, and the risk management of the larger companies is adequate. The guest opinion article was authored by Susan Chu and Steven Chen of Taiwan Ratings. The thoughts expressed in the article are those of the writers and do not necessarily reflect the views of Standard & Poor's. * China Needs to Examine Risks Despite Strong Growth, S&P Says -------------------------------------------------------------- Spectacular growth in revenue and profit is likely to slow down over the next 18 months for China's leading industrial players, according to a major report published by Standard & Poor's Ratings Services. The report, titled "China's Top 200 Corporates", also warns that despite the powerful performances in the first half of 2007 and in 2006, a close eye will need to be kept on risks. "The Chinese economy looks immune to any negative developments or threats from the rest of the world, at this time. The economy simply runs over obstacles such as high oil prices, and liquidity and credit crunches, and powers ahead," said Standard & Poor's credit analyst Ryan Tsang. "But the markets could be lulled into underestimating and under-pricing risks during long periods of strong growth and high earnings. While we expect growth to remain healthy, we're aware of the challenges ahead for Chinese companies." These challenges include negative real interest rates, inflation, strong credit expansion, and the risk of a slowdown in the U.S. economy. Exporters will face particular pressure from increasing protectionism and scrutiny over product quality. Domestic consumption is, however, likely to become a more important economic driver. Strong revenue and profits are concentrated in a handful of sectors, headed by oil and gas. Total sales of the top 200 listed companies increased 25.5% year-on-year to CNY5,961 billion in 2006, while aggregate earnings climbed 23.3% to CNY443 billion. Despite growing competitiveness, the report also shows that deeper restructuring is still needed. Five penetrating commentaries on the auto, energy, real estate, resources, and retail sectors suggest that consolidation will escalate over the next few years. But the articles warn that rapid expansion through excessive debt-funded acquisitions is putting the credit health of some companies at risk. * TRC Expects Continued Profitability on Non-Life Insurers ---------------------------------------------------------- The outlook on Taiwan's non-life insurance sector is stable, reflecting the likelihood of continued satisfactory profitability and capital strength, and appropriate reserving, according to a report titled "Nonlife Insurance Industry Risk Analysis: Taiwan," published by Taiwan Ratings Corp. Taiwan Ratings is concerned about higher exposure in risky investments -- equities and real estates -- as well as the expectation of intensified price competition and rate deregulation. "Taiwan's underwriting cycle remains exposed to catastrophe risks and the availability of regional and global reinsurance capacity," said Taiwan Ratings' director Susan Chu, team leader of financial services ratings. "The industry's operating performance is satisfactory. Its combined ratio ranged between 92.5% and 97.7% in 2002-2006, with reinsurance agreements helping to somewhat smooth variations in the ratio over that period," added Taiwan Ratings' associate Steven Chen. Taking into account investments, the industry reported satisfactory profitability over the same period, with an average annual ROR of 12.7%. The majority of Taiwan non-life insurers are strongly capitalized, which is the major factor supporting the sector. The industry reported a ratio of shareholders' funds plus special reserve to net premiums of about 150% at the end of 2006, a high level by international standards. Although the ratio has fallen, partly due to efforts by insurers to enhance capital efficiency, Taiwan Ratings expects most companies to maintain strong capitalization over the medium term. ========= I N D I A ========= AES CORP: Gets Subpoena from New York Attorney General ------------------------------------------------------ Environment News Service reports that New York Attorney General Andrew Cuomo has subpoenaed AES Corporation, demanding that the firm disclose the financial risks of its greenhouse gas emissions to shareholders, specifically to the New York State Common Retirement Fund. Environment News relates that Mr. Cuomo also sent the subpoenas to: -- Dominion Resources, -- Xcel Energy, -- Dynegy, and -- Peabody Energy. Mr. Cuomo told Environment News that AES is among the US' largest producers of greenhouse gas pollutants, including carbon dioxide. AES' 2006 Form 10-K filing with the U.S. Securities and Exchange Commission failed to disclose projected emissions, nor evaluate the effect of upcoming greenhouse gas regulations on the firm's "financial picture," Environment News says, citing Mr. Cuomo. Mr. Cuomo commented to Environment News, "Climate change is one of the most pressing environmental challenges facing the world today." He reminded the executives that emissions from US power plants "constitute 30% of total US carbon emissions." "Regulation of greenhouse gas emissions on the state level through the Regional Greenhouse Gas Initiative will begin," Environment News notes, citing Mr. Cuomo. Mr. Cuomo told Environment News, "Any one of the several new or likely regulatory initiatives for CO2 emissions from power plants -- including state carbon controls, E.P.A.'s regulations under the Clean Air Act, or the enactment of federal global warming legislation -- would add a significant cost to carbon- intensive coal generation. Selective disclosure of favorable information or omission of unfavorable information concerning climate change is misleading." AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. * * * On Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. * * * As reported on Aug. 23, 2007, Fitch Ratings affirmed AES Corporation's Issuer Default Rating at 'B+', and assigned a short-term IDR of 'B'. Fitch also took these rating actions: * AES -- Senior unsecured to 'BB/RR1' from 'BB/RR2' * AES Trust III -- Trust preferred securities to 'B+/RR4' from 'B/RR5'. * AES Trust VII -- Trust preferred securities to 'B+/RR4' from 'B/RR5'. In addition, Fitch affirmed these ratings: * AES -- Senior secured credit facility at 'BB+/RR1'; -- Junior secured notes at 'BB+/RR1'. AES CORP: Plans to Construct 170 MW Wind Project in Texas --------------------------------------------------------- The AES Corporation announced plans to begin construction of Buffalo Gap 3, a 170 megawatts expansion of its Buffalo Gap wind farm near Abilene, Texas. Once completed, the project will increase capacity at Buffalo Gap to 524 MW, making it one of the largest operating wind farms in the United States. Commercial operations are expected to begin mid-2008. AES signed a seven- year power purchase agreement to sell all of the electricity it produces at the Buffalo Gap 3 wind generation facility to Direct Energy, a subsidiary of Centrica plc. Financial terms of the agreement were not disclosed. "This expansion underscores AES's ongoing commitment to renewable energy," said Ned Hall, President, AES Renewable Generation. "With more than 1,000 MW of wind projects in operation in the United States and another 4,000 MW in various stages of development throughout the world, AES is well positioned to meet growing demand for wind generated power." "The Buffalo Gap 3 expansion will allow AES to continue developing renewable energy sources in West Texas, benefiting the local economy through the creation of new jobs and an increased tax base," said Ryan Pfaff, Managing Director, AES Wind Generation. "We are also pleased to further expand our relationship with Direct Energy, a world-class organization that shares our commitment to the West Texas wind market." AES purchased 74 Siemens model SWT-2.3-93 60 Hz wind turbine generators for the Buffalo Gap 3 project. "This expansion is consistent with AES's long-term goal to be a major wind energy producer, and is part of our plan to more than triple our wind-generated megawatts globally by 2011," said William Luraschi, AES Executive Vice President and President of Alterative Energy. "As one of the cleanest, lowest-cost renewables, wind generation will be an area of continuing focus and priority for AES." AES's Alternative Energy business comprises the company's activities in wind generation, greenhouse gas emissions offset projects, liquefied natural gas and other technologies. AES entered the wind generation business in 2004. The company's wind development projects are located primarily in the United States and Europe. AES has plans to expand its wind business to other countries where it does business, including countries in Asia and Latin America. About AES AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. * * * On Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. * * * As reported on Aug. 23, 2007, Fitch Ratings affirmed AES Corporation's Issuer Default Rating at 'B+', and assigned a short-term IDR of 'B'. Fitch also took these rating actions: * AES -- Senior unsecured to 'BB/RR1' from 'BB/RR2' * AES Trust III -- Trust preferred securities to 'B+/RR4' from 'B/RR5'. * AES Trust VII -- Trust preferred securities to 'B+/RR4' from 'B/RR5'. In addition, Fitch affirmed these ratings: * AES -- Senior secured credit facility at 'BB+/RR1'; -- Junior secured notes at 'BB+/RR1'. ANDHRA CEMENTS: First Qtr. Net Profit Down 78% to INR112 Million ---------------------------------------------------------------- Andhra Cements Limited recorded a net profit of INR112.2 million in the first quarter ended June 30, 2007, down 78% from the INR502.5-million profit booked in the same quarter last year. The bottom line weakened despite surge in revenues -- total income rose to INR705.9 million, more than 17 times the INR41.1 million earned in the first quarter of 2006. With operating expenditures totaling INR557.7 million, the company made an operating profit of INR148.2 million in the April-June 2007 quarter. After booking interest charges of INR33.5 million, the company's financials showed a gross profit of INR114.7 million. Depreciation expenses for 1Q FY2008 totaled INR2 million while taxes aggregated INR600,000. What brought the sudden drop in net profit is the absence of extraordinary items in the latest reporting period, the company explains. In the first quarter of 2006, the company recorded INR579.8 million as extraordinary item representing write back of past interest in respect of a one-time settlement. A full-text copy of Andhra Cements' financial results for the first quarter to June 30, 2007, is available for free at: http://ResearchArchives.com/t/s?239e Headquartered in Guntur, India, Andhra Cements Limited, manufactures and distributes cement. Andhra is part of the Kolkata-based Duncan Goenka group. The original promoter of Andhra Cements handed over the reins to Goenka in 1994 when the company was under the Board for Industrial and Financial Reconstruction's purview. Andhra Cements had been operating under the sanctioned rehabilitation scheme of the BIFR dated June 16, 1994. The scheme is presently under revision, the company notes in its financial statements for the quarter ended March 31, 2007. ANDHRA CEMENTS: Members Approve Charge/Mortgage on Properties ------------------------------------------------------------- Andhra Cements Ltd's shareholders have approved the creation of charge or mortgage on all the movable and immovable properties of the company as security for the due repayment to its lenders for securing their loans, a filing with the Bombay Stock Exchange states. The shareholders approved the move by way of postal ballot with requisite majority. Headquartered in Guntur, India, Andhra Cements Limited, manufactures and distributes cement. Andhra is part of the Kolkata-based Duncan Goenka group. The original promoter of Andhra Cements handed over the reins to Goenka in 1994 when the company was under the Board for Industrial and Financial Reconstruction's purview. Andhra Cements had been operating under the sanctioned rehabilitation scheme of the BIFR dated June 16, 1994. The scheme is presently under revision, the company notes in its financial statements for the quarter ended June 30, 2007. BALLARPUR INDUSTRIES: Eyes Technical Tie-Up w/ Swedish Firms ------------------------------------------------------------ Ballarpur Industries Ltd is looking for a tie-up with companies in Sweden for technical expertise in paper and pulping, the Hindu Business Line reports, citing BILT Managing Director R. R. Vederah. "We are looking forward to using the acquired technical expertise for the modernisation and expansion of our facilities in India and also in the recently acquired Sabah Forest Industry unit in Malaysia," Business Line quotes Mr. Vederah as saying. According to Business Line, Sweden has been specializing in environmental technology. Among others, Sweden has been focusing recently on manufacturing packaging material from renewable sources with extensive research efforts being devoted to new materials development, the news agency adds. Mr. Vederah, however, believes setting up a facility in Sweden would not be cost effective, the news agency relates. "We are keener on the South-East Asian region for its cost effective structure to set up manufacturing facilities overseas us," he told Business Line. Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. As of May 15, 2007, the company still carry those ratings. GENERAL MOTORS: Labor Talks Slows Down Over Planned VEBA Trust -------------------------------------------------------------- Labor talks between General Motors Corp. and the United Auto Workers has slowed down as the parties discuss on a proposal to create a trust that would shoulder more than US$90 billion in health-care benefits GM, Ford Motor Co., and Chrysler LLC owe to a large number of union retirees, The Wall Street Journal reports. Complicated details of the trust -- called a VEBA, for voluntary employees' beneficiary association -- have derailed the talks, however, WSJ's sources say GM and the UAW are closer on the thorny issue of funding such a trust than they were last week. According to the Journal, questions regarding the issue involve, among others, what to do if health-care inflation exceeds expectations, the proper way to estimate the cost of providing benefits to an individual and whether the auto makers would get money back if Washington enacts universal health coverage. GM was picked by the UAW as lead negotiator on a new four-year labor contract. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on 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. GLOBAL BROADCAST: Members to Decide Allotment of Warrants --------------------------------------------------------- Global Broadcast News Ltd's members will consider, by way of postal ballot, allotting up to 30,00,000 convertible warrants, a regulatory filing with the Bombay Stock Exchange says. The warrants will entitle warrant holders to apply for equity shares of the company in one or more tranches, to Network18 India Holdings Pvt Ltd, a wholly owned subsidiary of Network18 Fincap Ltd, on preferential placement basis provided that the aggregate number of resultant shares of the company to be issued against the warrants will not exceed 30,00,000 fully paid up equity shares of the face value of INR10 each at a price equal to, whichever is higher of: a. the average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange during the six months preceding Sept. 13, 2007; b. the average of the weekly high and weekly low of the closing prices of the related shares quoted on a stock exchange during the two weeks preceding the Sept. 13; or c. INR815 per convertible warrant. The company has appointed G. N. Mehra, Retd. (IAS), Former Chief Secretary, U.P, as scrutinizer for conducting the postal ballot process. The postal ballot forms duly completed should reach the scrutinizer not later than the close of working hours on Oct. 12, 2007. The results of the postal ballot will be announced on Oct. 13. Headquartered in New Delhi, Global Broadcast News Limited -- http://www.ibnlive.com/-- owns and operates a 24-hour English language news and current affairs channel called CNN-IBN. CNN- IBN was launched in December 2005. The Company has an agreement with CNN for an exclusive, limited, non-transferable right to use and reproduce, inter alia, the CNN name and principal logo. It also has news services agreement with Turner for production and broadcasting services. It is also part of the TV 18 group, which owns and operates some business channels and Internet portals. The TV 18 group owns and operates channels, such as CNBC-TV18, Awaaz and South Asia World. In addition, the TV 18 group operates portals, such as www.moneycontrol.com and www.commoditiescontrol.com. The Company transferred its interactive Internet portal, ibnlive.com, for real-time news and affairs to Web 18 Software Services Limited, which is a subsidiary of Web 18 Holdings Limited. As part of this arrangement, the Company would hold 15% equity shares in Web 18 Holdings Limited. The Troubled Company Reporter-Asia Pacific reported on Sept. 14, 2007, that Global Broadcast has a stockholder's equity deficit of USUS$1.27 million. GUJARAT SIDHEE: Reappoints Manubhai & Co. as Auditors ----------------------------------------------------- Gujarat Sidhee Cement Ltd's shareholders, at the 34th annual general meeting of the company held on Sept. 14, 2007, approved the reappointment of Manubhai & Co., Chartered Accountants, as the company's statutory auditors for the financial year 2007- 2008. Also during the AGM, the members accorded: 1. the reappointment of M. N. Mehta, S. V. S. Raghavan and M. L. Tandon as directors; and 2. the adoption of the company's audited profit & loss account for the years ended March 31, 2007, and balance sheet as on that date together with the directors and auditors report. For the financial year ended March 31, 2007, the company recorded a net profit of INR523.63 million on revenues of INR3.94 billion. * * * India-based Gujarat Sidhee Cement Ltd is operating primarily in the cement and clinker industry. The company's operations are predominantly in Gujarat. The Troubled Company Reporter-Asia Pacific reported on its Sept. 14, 2007 "Large Companies with Insolvent Balance Sheets" column that Gujarat Sidhee has a stockholder's equity deficit of US$13 million. IFCI LTD: Ten Firms Submit Expression of Interest for 26% Stake --------------------------------------------------------------- As reported by the Troubled Company Reporter-Asia Pacific on Aug. 8, 2007, IFCI Ltd invited expressions of interest for a strategic investor, in whom the company plans to divest a 26% stake. In an update, IFCI informed the Bombay Stock Exchange that, pursuant to the invitation, the company has received 10 applications: 1. General Electric Capital Corporation 2. Kotak Mahindra Bank Ltd 3. Consortium of Sterlite Industries (India) Ltd and Morgan Stanley & Co. 4. Infrastructure Development Finance Company Ltd 5. Newbridge Asia IV, L.P. 6. Consortium of WL Ross & Co. LLC, GS Capital Partners VI Fund, Standard Chartered Bank & Housing Development Finance Corporation Ltd 7. Cargill Financial Services Corporation 8. Consortium of Shinsei Bank Ltd, Punjab National Bank and J.C. Flowers & Co. LLC 9. Natixis 10. The Blackstone Group L.P. According to the TCR-AP, IFCI wants to raise as much as US$250 million by selling up 26% in fresh equity. 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. IFCI LTD: Chairman N. Balasubramanian Resigns --------------------------------------------- IFCI Ltd informed the Bombay Stock Exchange in a regulatory filing of the resignation of N. Balasubramanian as chairman of the company's board of directors. Mr. Balasubramanian tendered his resignation via letter dated Sept. 15, 2007. The filing did not disclose the reason why he quit. In a separate BSE disclosure, the company informed of another resignation. Pursuant to a letter dated Sept. 18, Director Vinayak Chatterjee has resigned from the board. Sukriti Likhi, Director, Ministry of Finance, Department of Financial Services, in the other hand, was nominated by the government of India as director. IFCI is currently in the process of choosing a strategic investor with whom the company plans to divest a 26% stake. 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. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Robert W. Baird Maintains Neutral Rating on Firm ---------------------------------------------------------------- Analysts at Robert W. Baird have kept their "neutral" rating on Alcatel-Lucent's shares, Newratings.com reports. According to the rating agency, the target price for Alcatel- Lucent's shares were decreased to US$9 from US$13. The analysts said in a research note that Alcatel-Lucent decreased "its revenue growth guidance for the full-year from mid-single digit range to a flat-marginal rise." In addition, Alcatel-Lucent will reinvest its gross margin savings to achieve its targets for "opex savings." The challenges in the US wireless sector are "internal" to Alcatel-Lucent, Newratings.com notes, citing analysts at Robert W. Baird. Alcatel's earnings per share estimates for 2007 and 2008 were decreased to US$0.27 from US$0.51, and to US$0.53 from US$0.83, respectively, Newratings.com states. 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. * * * Troubled Company Reporter-Asia Pacific reported on Sep. 19, 2007, that Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent Technologies were also affirmed. 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: Morgan Keegan Maintains Outperform Rating --------------------------------------------------------- Morgan Keegan analysts have kept their "outperform" rating on Alcatel-Lucent's shares, Newratings.com reports. The analysts said in a research note that Alcatel-Lucent lessened "its revenue growth guidance for the full-year from the mid-single digit range to a flat-marginal rise." According to Newratings.com, Alcatel-Lucent showed that the revenue deficit was due to weak wireless spending in North America. The firm's resulting product mix would pressure earnings. The earnings per share estimates for 2007 and 2008 were decreased to US$0.17 from US$0.41, and to US$0.67 from US$1.02, respectively, Newratings.com states. 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. * * * Troubled Company Reporter-Asia Pacific reported on Sep. 19, 2007, that Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent Technologies were also affirmed. 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: Societe Generale Reaffirms "Sell" Rating on Firm ---------------------------------------------------------------- Societe Generale analysts have reaffirmed their "sell" rating on Alcatel-Lucent's shares, Newratings.com reports. Newratings.com relates that the target price for Alcatel- Lucent's shares was decreased to EUR5.50 from EUR7. The analysts said in a research note that Alcatel-Lucent issued a profit warning. Due to a weakening in capital spending by wireless subscribers in North America, the firm reduced its revenue growth guidance for this year from mid-single digit to flat to marginal. The analysts told Newratings.com that Alcatel-Lucent eyes a breakeven in the third quarter 2007, "which is significantly short of the consensus." The "slowdown in the CDMA business" would affect Alcatel- Lucent's margins, which are under pressure due to aggressive pricing, Newratings.com says, citing Societe Generale. The earnings per share estimate for 2008/2009 was decreased by 30%, Newratings.com states. 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. * * * Troubled Company Reporter-Asia Pacific reported on Sep. 19, 2007, that Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short term rating on Lucent Technologies were also affirmed. 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. BANK INTERNASIONAL: Hires New Auditor for Fiscal-Year 2007 ---------------------------------------------------------- PT Bank Internasional Indonesia Tbk has appointed the Public Accountant Office of Haryanto Sahari & Co. as company auditor, Reuters reports. Haryanto Sahari & Co. is affiliated with PricewaterhouseCoopers, the news agency relates. The accounting firm will serve as the company's auditor for the fiscal year 2007. PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of PT Bank Internasional Indonesia Tbk as follows: * Long term foreign currency IDR at 'BB-' with a Positive Outlook, * Short term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)' (AA minus (idn)). On Aug. 2, 2007, that Moody's Investors Service placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk on review for possible upgrade. The Not-Prime short-term deposit and bank financial strength ratings of the bank are unaffected. "This action follows a similar action taken on Indonesia's sovereign ratings on August 1, 2007," says Beatrice Woo, a Moody's VP/Senior Credit Officer. The detailed ratings are: * Ba3/Ba3 issuer/foreign currency subordinated debt and B2 foreign currency long-term deposit ratings were placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected -- these ratings carry a stable outlook BANK INTERNASIONAL: Acts as Selling Agent for Schroders ------------------------------------------------------- PT Bank Internasional Indonesia Tbk has signed a Memorandum of Understanding with Schroders in offering mutual fund products. In this partnership, BII will act as a selling agent of Schroders' mutual fund products. These products will be offered to BII's customers through eight BII Platinum Access exclusive services and more than 230 BII branch offices across Indonesia. BII Platinum Access serves as one of priority banking services and is part of the business development of Wealth Management. "Schroders' mutual fund products have enriched the diversity of investment products offered through BII. With more various investment products, customers will have investment choices tailored to their investment purpose, tenor as well as risk profile", said Henry Ho, President Director of BII. "While our partnership with Schroders will provide satisfaction and convenience for our existing customer, it will also generate fee base income and increase our customer base," he added. Schroders is an investment management company of the abovementioned mutual fund products, while acting as a custodian bank is Deutsche Bank AG Jakarta. Schroders believes this partnership will yield optimum result for all parties -- BII, Schroders and definitely our customers -- by continuously providing education and communication to all respective parties. "As the partnership between Schroders and BII through the previously mentioned four products commences, we certainly hope that the development of other products will be achieved in the near future. Surely, the product combination should be suited with the economic development and investment climate without undermining BII's customer needs," said Ronni Gandahusada, President Director of PT Schroder Investment Management Indonesia. Besides mutual funds, BII Platinum Access also offers several products such as bancassurance, deposit service in form of saving deposit, demand deposit and time deposit as well as other investment services such as structured investment and ORI. Moreover, the services provided by Platinum Access is a service that enables BII's customers to obtain end-to-end benefit and it is done personally by experienced and well trained staffs with investment background. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of PT Bank Internasional Indonesia Tbk as follows: * Long term foreign currency IDR at 'BB-' with a Positive Outlook, * Short term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)' (AA minus (idn)). On Aug. 2, 2007, that Moody's Investors Service placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk on review for possible upgrade. The Not-Prime short-term deposit and bank financial strength ratings of the bank are unaffected. "This action follows a similar action taken on Indonesia's sovereign ratings on August 1, 2007," says Beatrice Woo, a Moody's VP/Senior Credit Officer. The detailed ratings are: * Ba3/Ba3 issuer/foreign currency subordinated debt and B2 foreign currency long-term deposit ratings were placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected -- these ratings carry a stable outlook BANK NIAGA: Unit Bags Best Syariah Unit 2007 Award -------------------------------------------------- PT Bank Niaga Tbk's unit, Bank Niaga Syariah, was awarded The Best Syariah Unit 2007 Award from Investor Magazine for the category of assets worth more than IDR500 billion, Antara News reports. According to the report, BNS had assets totaling IDR604.1 billion as per June 30, 2007. It now has eight sharia outlets located in Jakarta, Surabaya and Bandung, in addition to 43 office channeling units. The sharia unit is expected to open 64 more office channeling units at the bank's branches in Jakarta, Bandung and Surabaya in the first semester of 2007, the report adds. 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. * * * The bank also has the following existing global scale ratings assigned by Moody's Investors Service: -- issuer/foreign currency subordinated debt of Ba3; -- global local currency deposit of Baa3; -- foreign currency long-term/short-term deposit of B2/Not Prime; -- and bank financial strength of D. The Ba3 issuer/foreign currency subordinated debt and B2 foreign currency long-term deposit ratings are on review for possible upgrade. The outlook for all other ratings is stable. 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. BANK PANIN: Partners with Visa Int'l on Credit Card Venture ----------------------------------------------------------- PT Bank Pan Indonesia Tbk collaborated with Visa International to launch its first credit card, The Jakarta Post reports. Citing the bank's Deputy President Chandra Gunawan, The Post says that the bank had already signed up 2,000 cardholders and hopes that they would achieve their 20,000 cards issuance target. The report adds that Indonesian Visa cardholders spent US$3.62 billion on their credit cards between March 2006 and March 2007, which was almost a 25% increase compared with the same period a year earlier. Headquartered in Jakarta, Indonesia, PT Bank Pan Indonesia Tbk's -- http://www.panin.co.id-- products and services include individual, which comprises saving products, consumer credit products, electronic products and service products corporate, and corporate, which consist of saving products, financial service products, loan credit, export and import products, electronic products and service products. The bank has investment in several public listed companies, including PT Clipan Finance Indonesia Tbk, PT Asuransi Multi Artha Guna Tbk and PT Panin Sekuritas Tbk. * * * The Troubled Company Reporter-Asia Pacific reported on Aug. 2, 2007, that Moody's Investors Service placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Pan Indonesia Tbk on review for possible upgrade. The detailed ratings are: * B2 foreign currency long-term deposit rating was placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected -- the former two ratings carry a stable outlook, while the BFSR has a positive outlook. FOSTER WHEELER: Inks Demonstration Project Deal with Praxair ------------------------------------------------------------ Foster Wheeler Ltd.'s US subsidiary, Foster Wheeler North America Corp. and Praxair Inc. have signed a multi-year agreement that calls for the joint pursuit of certain demonstration projects that will incorporate clean coal technologies and integrated oxy-coal combustion systems into coal-fired electric generating plants to facilitate capture and sequestration of carbon dioxide (CO2). The combination of the two companies' technologies and systems expertise would enable a coal-fired generating plant to reduce carbon dioxide stack emissions by more than 90 percent as compared to a conventional coal-fired plant of similar size. Generating plants that burn opportunity fuels such as biomass and petroleum coke in combination with coal would also be able to effect similar reductions in CO2 emissions. The two companies have agreed to share technical information to ensure successful integration of the combined systems. Under the agreement, Foster Wheeler will develop and supply steam generators using oxy-coal combustion technology that can be installed in new or existing coal-fired power plants. Oxy- coal combustion creates a highly concentrated stream of CO2 from a steam generator to facilitate carbon capture and sequestration. Foster Wheeler expects that its first applications of oxy-coal combustion technology would involve the company's circulating fluidized-bed (CFB) steam generators, which have already gained global market acceptance for their efficiency, fuel flexibility, and relatively low emissions. Foster Wheeler expects that oxy-coal combustion technology will be applicable to pulverized-coal (PC) steam generators as well. Praxair has a long history of advancing oxygen-based combustion and gas-processing technologies that bring substantial productivity and environmental benefits to customers in many industries. For this project, Praxair will provide the upstream oxygen-supply facilities, applying its design, engineering and construction expertise in building large cryogenic air- separation plants that produce the large volumes of oxygen necessary for clean-coal projects. Praxair also will provide the downstream CO2 capture and gas-processing technologies and equipment, based on its experience as one of the world's leading CO2 suppliers. Praxair's control systems and integration capabilities also will be a key component of the project. "We are pleased to be involved with Praxair in development of new technology to address CO2 emissions from coal-fired power plants," said Gary Nedelka, president and chief executive officer of Foster Wheeler North America Corp. "We have already completed pilot and bench-scale testing of oxy-coal combustion in an R&D environment, and we look forward to accelerating this work under our agreement with Praxair. The application of oxy- coal combustion will allow us to advance both our CFB and PC technologies in the area of carbon capture." "Working with Foster Wheeler will help accelerate the development of oxy-coal combustion technology in the power- generation field, enabling us to contribute an environmentally friendly way to tap vast coal resources to meet our energy needs," said Charles McConnell, Praxair's vice president, gasification and oxy-coal technology. The companies expect that their first joint commercial effort will be the previously announced demonstration project being pursued by the Jamestown (New York) Board of Public Utilities. The Jamestown project would be the first of its kind in the United States and potentially an international model for future energy development. About Praxair Praxair Inc. -- http://www.praxair.com/-- is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2006 sales of US$8.3 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. About Foster Wheeler With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. * * * As reported in the Troubled Company Reporter on March 27, 2007, Standard & Poor's Ratings Services raised its ratings on Foster Wheeler Ltd., including its corporate credit rating to 'BB' from 'B+'. The Clinton, New Jersey-headquartered engineering and construction company had total reported debt of approximately US$203 million at Dec. 29, 2006. The outlook is stable. Asbestos Management Program The company recorded a net gain from its asbestos management program in 2006 of US$100.1 million, reflecting a US$115.6 million gain from four insurance settlements and the successful appeal of a court decision in the company's pending asbestos- related insurance coverage litigation, and a US$15.5 million charge in the fourth quarter of 2006 resulting from the company's year-end update of its 15-year estimate of its asbestos liabilities and related assets. ========= J A P A N ========= MITSUBISHI MOTORS: To Move Outlander Production to Netherlands -------------------------------------------------------------- Mitsubishi Motors Corporation said it would transfer the production of its Outlander care for the European market to the Netherlands due to strong demand, writes Gilbert Kreijger of Reuters. According to Mr. Kreijger, aside from the strong demand, this move will help free up production capacity in Japan. Mitsubishi's Dutch facility, called NedCar, will produce about 20,000 SUV Outlander cars in 2008 and 30,000 in subsequent years. Reuters cites a NedCar spokesman as saying that NedCar already produces about 70,000 of Mitsubishi's Colt model. Strong demand for the automaker's Outlander model in Europe and its new Lancer model worldwide were reason to shift Outlander production to the Netherlands, notes Mr. Kreijger. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the Mitsubishi Motors Revitalization Plan" on Jan. 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. The Troubled Company Reporter-Asia Pacific reported on July 10, 2007, that Rating and Investment Information, Inc. has lifted its issuer rating from 'B' to 'B+' with a stable outlook. Also, R&I affirmed its 'B' rating for its domestic commercial paper program. The upgrade in rating, according to the report, is due to the fact that Mitsubishi Motors has been working to restructure its operations since it announced its Mitsubishi Motors Revitalization Plan in January 2005 and despite difficult domestic market conditions caused by factors like shrinking vehicle demand, Mitsubishi Motors has managed to leverage new model introductions to gradually restore its earnings base. SEIYU LTD: Changes 2007 Forecast to 6th Straight Annual Loss ------------------------------------------------------------ Seiyu Ltd. lifted its annual loss forecast by 76% due to a charge to cut about 7% of its workforce as it struggles with sluggish sales, Reuters reports. Wal-Mart Stores Inc.'s Japanese unit, according to the article, is headed for its sixth straight annual loss in 2007, after offering early retirement to hundreds of employees out of a group work force of about 6,500. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 20, 2007, Seiyu said that it will cut 450 jobs through an early retirement program in a bid to cut back on labor costs. Seiyu admits that the program is estimated to cause an extraordinary loss of JPY4.5 billion to cover additional retirement benefits and other related costs. Along with this, Seiyu accordingly widened its 2007 group net loss forecast by that amount to JPY10.4 billion, keeping its forecasts for operating profit and sales unchanged, notes Reuters. Reuters notes that Seiyu Chief Operating Officer Toru Noda told a news conference, "I don't think we will need this kind of restructuring (in the future)," adding that he also did not expect the retailer would need to close stores. Reuters recounts that Seiyu cut 1,600 jobs in 2004. About Seiyu Ltd. Tokyo-based, The Seiyu, Ltd. -- http://www.seiyu.co.jp/-- is a Japanese company that is involved in two business segments. The Retailing segment, together with its subsidiaries, develops daily products, operates general merchandise stores (GMSs), supermarkets and shopping malls and provides information and services. This segment is also engaged in the prepared food business, the operation of specialty stores for mobile phones, the procurement of overseas original products, as well as the provision of recruitment services and the ordering of gift products. The Real Estate segment is involved in the leasing of real estate properties, in addition to the development and management of properties, such as commercial facilities. The Seiyu has 17 subsidiaries and two associated companies. * * * The Troubled Company Reporter-Asia Pacific reported on April 21, 2006, that United States-based retailer Wal-Mart Stores, Inc., is successfully rehabilitating its Japanese unit, Seiyu Limited. According to press reports, Seiyu has not made a profit since Wal-Mart first took a stake in the Japanese retailer in 2002. A TCR-AP report on Feb. 21, 2006, stated that Seiyu incurred a net loss of JPY17.77 billion in the year ended December 31, 2005, versus a loss of JPY12.32 billion in 2004. * Moody's Sees Stable Outlook for Japanese Cosmetics Sector ----------------------------------------------------------- Moody's Investors Service considers the outlook for the Japanese cosmetics industry as stable, supported by steady demand, but significant challenges are at the same time evident. Due to rising competition and rapid changes in diversified sales channels, all cosmetics companies will need to enhance their brands and management of their sales channels if they are to protect their market positions and profitability, Moody's says in a new report, "Japan Cosmetics". "In this regard, the management of drug store channels in particular is becoming more important, while effective spending on advertising and sales promotion will be key to maintaining competitive advantages," says Noriko Kosaka, a Moody's AVP/Analyst and author of the report. "At the same time, ongoing discipline - in balancing the needs of bondholders and stockholders with growth strategies - will support the industry's strong financial fundamentals in the year ahead," says Kosaka. Japan's cosmetics market is a mature one, with a shipment base of about JPY1.5 trillion in both 2005 and 2006, Moody's says. "Against such a backdrop, major manufacturers are reinforcing expansion of their overseas operations, especially in Asia," says Kosaka, adding, "The successful implementation of an overseas strategy is still key to pursuing topline growth and realizing higher organic growth." For example, Shiseido is aggressively expanding its business in China through department stores as well as cosmetics specialty stores, and has launched different brands via each channel. In a discussion on financial fundamentals, Moody's notes that most of the major cosmetics makers have increased their dividends over the last several years, but these rises have been well covered by cash flow. "Therefore, Moody's believes the companies will maintain their current healthy balance sheet structures, which should give them the flexibility to take strategic action when needed," the report says. In addition, Moody's does not expect any considerable M&A in Japan over the medium term and which would cause a significant rise in a company's financial leverage. ========= K O R E A ========= COREBRID INC: Names Jeon Byung Cheol as Largest Shareholder ----------------------------------------------------------- Jeon Byung Cheol become the largest shareholder of CoreBrid, Inc., effective Sept. 18, 2007, Reuters reports. Until Sept. 18, Soh Jae Sahm was the largest shareholder in the company, the news agency adds. Jeon Byung Cheol now holds a 7.56% stake in CoreBrid, Reuters notes. Seoul-based CoreBrid Inc., previously known as Curon Inc. -- http://www.curon.co.kr-- is engaged in the provision of diaphragms, vaporizers and Video On Demand servers. The company provides three main products: diaphragms and vaporizers, which are used in gas meters, speakers, automobiles, medical applications, heavy machinery, industrial valves and pumps; VOD servers such as StreamXpert, which supply High Definition Television (HDTV) multimedia content; and Telematics, which are used in entertainment, games, digital multimedia players, traffic information, satellites, digital versatile discs, TVs and radios. Korea Ratings gave Curon Inc.'s US$10 million convertible bond a B- rating with a stable outlook on February 22, 2007. COREBRID INC: Partners w/ Venture Square for Expansion Efforts -------------------------------------------------------------- CoreBrid, Inc. has signed a memorandum of understanding with Japan's The Venture Square for Society Inc, Reuters reports. According to the report, this company move is aimed at expanding the distribution channels of the company's color vision deficiency (CVD) solutions in Japan. Under the terms of the agreement, the two companies will collaborate on joint marketing, products sales and building sales agencies, the report notes. Seoul-based CoreBrid Inc. previously known as Curon Inc. -- http://www.curon.co.kr-- is engaged in the provision of diaphragms, vaporizers and Video On Demand servers. The company provides three main products: diaphragms and vaporizers, which are used in gas meters, speakers, automobiles, medical applications, heavy machinery, industrial valves and pumps; VOD servers such as StreamXpert, which supply High Definition Television (HDTV) multimedia content; and Telematics, which are used in entertainment, games, digital multimedia players, traffic information, satellites, digital versatile discs, TVs and radios. Korea Ratings gave Curon Inc.'s US$10 million convertible bond a B- rating with a stable outlook on February 22, 2007. DAEWOO ELECTRONIC: Changes Offering Means for Shares Issue ---------------------------------------------------------- Daewoo Electronic Components Co., Ltd., has changed its method of offering for the issuance of 6 million common shares from public offering to rights issue, Reuters reports. Other details of the amendments are: * subscription date for employee stock ownership association on October 22, 2007, * subscription period for the existing shareholders from November 15, 2007 to November 16, 2007 and * a new listing date of December 5, 2007. The company has made these changes on September 14, 2007. Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/-- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. According to the Troubled Company Reporter-Asia Pacific, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. Daewoo Electronics Corp. posted a KRW94-billion loss in 2005 after sales declined 6.4%. The net loss compares with the KRW30-billion profit the company posted in 2004. Sales fell to KRW2.2 trillion from KRW2.3 trillion in 2004. The TCR-AP reported on Nov. 14, 2005, that creditors of Daewoo Electronics placed the firm for sale for US$1 billion. ABN Amro, PricewaterhouseCoopers and Woori Bank were appointed to find a buyer for the business. In September 2006, the consortium led by Videocon Industries submitted a bid for a controlling stake in Daewoo. =============== M A L A Y S I A =============== MEGAN MEDIA: Mayban Wants to Wind-Up Memory Tech's Operations ------------------------------------------------------------- Megan Media Holdings Bhd's wholly unit, Memory Tech Sdn Bhd, is facing a wind-up petition filed by Mayban Trustees Bhd due to bond payment defaults. The unsealed copy of the Winding-Up Petition was served on the unit's registered address on September 19, 2007. The Wind-Up Petition states that: Following the various announcements by Megan Media with regards to its inability to honor maturing banking facilities, Mayban Trustees Bhd issued a Declaration of Event of Default, as instructed by the Bondholders, on May 30, 2007, followed by a demand for payment of MYR436,110,000 on June 5, 2007. This has been the subject of ongoing deliberations between the Company and its Malaysian Creditor Banks (including the Bondholders) on the options available to formulate a Comprehensive Debt Restructuring and Regularization Plan. Based on the wind-up petition, Mayban said it entered into a "Supplementary Trust Deed" with Memory Tech in respect of the Bai Bithamin Ajil Islamic Debt Securities issued by the unit. Accordingly, thru the petition, Mayban seeks payments of: a) MYR320,000,000.00 nominal value of primary bonds; and b) MYR112,270,000.00 nominal value of non-detachable secondary bonds and Hibah Promissory Notes of MYR40,559,822.00. Megan Media pointed out on its disclosure that the wind up petition, if granted, will have a significant financial and operational impact to the Group. However, the position and outcome of this proceeding will ultimately depend on the debt restructuring and regularization endeavor. In the meantime, the Company is closely monitoring its short term cash flow and has sufficient short term cash flow based on its current modus operandi. The company also expects to post losses arising from the granting of the Petition. MTSB is a major subsidiary of the Company. MTSB's issued and paid-up capital is MYR130,000,000 comprising of 130,000,000 ordinary shares of MYR1.00 each fully paid-up. Megan Media Holdings Berhad' s principal activities are manufacturing and trading data storage media products such as computer diskettes, video cassette tapes, compact disc recordable (CD-R's) and digital versatile disc recordable (DVD- R's). The Group operates in Malaysia, Singapore and other countries. The Troubled Company Reporter-Asia Pacific reported on June 11, 2007, that the Rating Agency Malaysia has downgraded the long- term rating of Memory Tech Sdn Bhd's MYR320 million Bai Bithaman Ajil Islamic Debt Securities (2005/2012) ("BaIDS"), from C3 (with a negative outlook) to D. The BaIDS carries a corporate guarantee from MTSB's holding company, Megan Media Holdings Berhad. Concurrently, RAM has lifted the Rating Watch (with a negative outlook) that had been placed on MTSB on May 9, 2007, following the failure of MTSB and MJC (Singapore) Pte Ltd, another wholly owned subsidiary of Megan Media, to repay their trade facilities amounting to MYR47.36 million. On June 19, 2007, the company was classified as a PN17 company, and was required to submit a substantive plan to regularize its financial condition. PAN GLOBAL: Denies Report on Insurance Unit Sale to Golden Plus --------------------------------------------------------------- PanGlobal Bhd denied reports that it is in talks with Golden Plus Holdings Bhd for the disposal of its insurance unit. In a disclosure with the Bursa Malaysia Securities Bhd, the company said that the Financial Daily reported that Golden Plus is in negotiations to purchase its insurance unit. However, PanGlobal clarified, none of its directors and executives in office have held discussions with Golden Plus nor made such representations whether expressly or impliedly to any members of the press regarding the alleged talks. In addition, the company said that it is also not aware of any application to Bank Negara Malaysia to commence negotiations other than with Tokio Marine Asia Pte Ltd . The Group Chief Executive Officer, Bernard Wong Shoon Tet, further added that negotiations on the proposed sale of the company's investments in PanGlobal Insurance Berhad with Tokio Marine Asia Pte Ltd is currently on-going. Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad -- http://home.panglobal.com.my/-- is engaged in underwriting all classes of general insurance business, extracting of logs, sawmilling, manufacturing of veneer and extraction of coal. Other activities include property investment and development and leasing of real estate, investment holding, business management, building and fitness club management. PanGlobal is listed under Practice Note 4/2001. The Bursa Malaysia Securities has required the company to regularize its financial condition, curb huge losses and settle debts in order to continue operating. The company has already submitted a Proposed Restructuring Scheme to the Securities Commission on Sept. 9, 2005. On April 6, 2006, the Securities Commission approved PanGlobal Berhad's proposed restructuring scheme. The company's balance sheet as of June 30, 2007, went upside down with shareholders' deficit of MYR489 million, resulting from total assets of MYR632.52 million, and total liabilities of MYR1.12 billion. PAN MALAYSIAN: To Acquire Land and Building for MYR39 Million ------------------------------------------------------------- Pan Malaysian Industries Bhd will acquire from Pan Malaysia Holdings Bhd a piece of land together with a building on it for MYR39 million. The land and the 15-storey office building is located on Jalan Changkat Ceylon, Kuala Lumpur. It is valued at MYR29 million on Pan Malaysia's books last year but an independent valuer gives it a value of MYR39 million. Pan Malaysia will use the proceeds from the property sale to cut its debt amounting MYR70 million as at September 10, 2007. Pan Malaysian Industries Berhad is an investment holding company. The Company operates through two business segments: Retailing and Property and investment holding. The company is an Affected Listed Issuer pursuant to PN17 of the Boursa Malaysia as it has a deficit in its unaudited adjusted shareholders' equity on a consolidated basis of MYR17.55 million as of December 31, 2005, computed on the basis stated in PN17. The said deficit in the company's unaudited shareholders' equity on a consolidated basis was mainly due to the net loss of the PMI Group of MYR163.13 million for the unaudited nine month financial period ended December 31, 2005 due mainly to the sharing of losses of associated companies which comprised substantially of impairment losses. Pan Malaysian Industries Bhd's balance sheet as of June 30, 2007, went upside down by MYR29.1 million on total assets of MYR643.76 million and total liabilities of MYR672.85 million. ==================== N E W Z E A L A N D ==================== BEALEY ONE: Taps Nellies and Deuchrass as Liquidators ----------------------------------------------------- On August 30, 2007, Iain Andrew Nellies and Wayne John Deuchrass were tapped as liquidators of Bealey One Ltd. 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 CARBONARA ENTERPRISES: Court to Hear Wind-Up Petition on Nov. 29 ---------------------------------------------------------------- The High Court at Auckland will hear on November 29, 2007, at 10:00 a.m., a petition to have the operations of Carbonara Enterprises Ltd. wound up. Tasman Liquor Company Limited filed the petition on July 27, 2007. Tasman Liquor's solicitor is: Dianne S. Lester c/o Credit Consultants Debt Services NZ Limited Level 3, 3-9 Church Street PO Box 213, Wellington New Zealand Telephone:(04) 470 5972 CHURCH GILES: Fixes October 5 as Last Day to File Claims -------------------------------------------------------- The shareholders of Church Giles Ltd., on August 24, 2007, appointed John Trevor Whittfield and Boris van Delden as the company's liquidators. Messrs. Whittfield and van Delden are accepting creditors' proofs of debt against the company until October 5, 2007. The Liquidators can be reached at: John Trevor Whittfield Boris van Delden c/o McDonald Vague PO Box 6092, Wellesley Street Post Office Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz FOX KITCHENS: Court Appoints Interim Liquidators ------------------------------------------------ On August 30, 2007, the High Court of Christchurch appointed Stephen John Tubbs and Warren Michael Johnstone as interim liquidators for Fox Kitchens Ltd. The interim Liquidators can be reached at: Stephen John Tubbs Warren Michael Johnstone c/o BDO Spicers Spicer House, Level 6 148 Victoria Street Christchurch New Zealand Telephone:(03) 379 5155 Facsimile:(03) 353 5526 e-mail: jim.barber@chc.bdospicers.com IL PASSO: Subject to Four K's Wind-Up Petition ---------------------------------------------- On August 10, 2007, Four K Investments Limited filed a petition to have the operations of Il Passo Ltd. wound up. The petition will be heard before the High Court of Auckland on November 22, 2007, at 10:45 a.m. Four K's solicitor is: Malcolm David Whitlock c/o Baycorp House, Level 2 15 Hopetoun Street Auckland New Zealand NORTH RIVER: Creditors' Proofs of Debt Due on Sept. 28 ------------------------------------------------------ The creditors of North River New Zealand Ltd. are required to file their proofs of debt by September 28, 2007, to be included in the company's dividend distribution. The company went into liquidation on September 3, 2007. The company's liquidators are: Timothy Wilson Downes Stephanie Beth Jeffreys c/o Grant Thornton Auckland Limited PO Box 1961, Auckland New Zealand Telephone:(09) 308 2570 PIEMME PROPERTIES: Commences Liquidation Proceedings ---------------------------------------------------- The shareholders of Piemme Properties Ltd. resolved to liquidate the company's business on August 31, 2007. Only creditors whose proofs of debt are in by November 1, 2007, can join in the company's dividend distribution. The company's liquidator is: R. L. Merlo c/o Merlo Burgess & Co. Limited PO Box 51486, Pakuranga Manukau 2140 New Zealand Telephone:(09) 520 7101 Facsimile:(09) 529 1360 e-mail: merloburgess&co@xtra.co.nz PLASTERMEN LTD: Appoints Brown and Rodewald as Liquidators ---------------------------------------------------------- Kenneth Peter Brown and Thomas Lee Rodewald were appointed as liquidators of Plastermen Ltd. on August 27, 2007. The Liquidators can be reached at: Kenneth Peter Brown Thomas Lee Rodewald c/o Rodewald Hart Brown Limited 127 Durham Street PO Box 13380, Tauranga New Zealand Telephone:(07) 571 6280 Web site: http://www.rhb.co.nz PROVINCIAL FINANCE: Debenture Holder Repayments Total NZ$192MM -------------------------------------------------------------- Provincial Finance Limited's receivers, John Waller and Maurice Noone of PriceWaterhouseCoopers, say that the company will pay NZ$0.75 in the dollar to its debenture holders on Sept. 28, 2007, a press release says. The payment will be the receivers' fifth pro-rata principal repayment, which brings the total pro-rata principal repayments made by the receivers over the past sixteen months to NZ$0.65 in each dollar invested. According to PwC, the total cash repaid to secured debenture holders to date is NZ$192 million. "Recoveries from the finance receivables ledgers continue to proceed well, albeit with the trend for higher than anticipated early loan repayments," the receivers say. The early loan repayment trend, the receivers point out, has two impacts on the ultimate recoveries for secured debenture holders: * Principal is repaid to debenture holders quicker -- as early loan repayments are made, the finance receivable ledger reduces. This has allowed us to repay greater amounts of principal to secured debenture holders earlier in the receivership than originally anticipated. * Interest income lessens -- as the finance receivable ledgers reduce, the Companies earn less interest income from their customers. Interest income received is used to fund Company expenditure and repay secured Debenture Holders principal. The receivers further disclosed that they have held discussions with parties in respect of a possible restructure of the companies or the sale of the business. However, with the recent well publicized issues facing the finance company sector, some of the potential opportunities have closed to us. The outcome of the remaining discussions continues to remains uncertain, and we will keep investors informed of progress as appropriate, the receivers add. According to the release, litigation continues against a number of parties where the receivers believe there were a series of alleged frauds committed against the companies. The receivers, however, is unable to comment at this time as to the likely outcome of the litigation. The receivers maintain that they are of the view that preference shareholders and unsecured creditors will not receive any return from the receivership. "With respect to future payments, while we propose to continue with quarterly payments it should be noted that the amount of each payment will progressively reduce as time goes by and the overall level of the book further reduces," the receivers advise. Provincial Finance Limited -- http://www.provincialfinance.co.nz/-- is a New Zealand finance company that provides consumer and commercial finance to individuals and businesses across New Zealand, and promote a range of investment opportunities. As reported in the Troubled Company Reporter-Asia Pacific, Provincial Finance was put into receivership on June 2, 2006, due to breach of covenants and ratios in its Trust Deed, as well as a multi-million write-down for bad debts. The company owes NZ$300 million to 14,000 small investors. S.A.F.E. CONTRACTING: Commences Wind-Up Proceedings --------------------------------------------------- S.A.F.E. Contracting Ltd. went into liquidation on August 23, 2007. Iain Andrew Nellies and Paul William Gerrard Jenkins were appointed as liquidators. The Liquidators can be reached at: Iain Andrew Nellies Paul William Gerrard Jenkins c/o Insolvency Management Limited Burns House, Level 3 10 George Street PO Box 1058, Dunedin New Zealand W M O LTD: Taps Nellies and Deuchrass as Liquidators ---------------------------------------------------- Iain Andrew Nellies and Wayne John Deuchrass were named as liquidators of W M O Ltd. on August 31, 2007. 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 ===================== P H I L I P P I N E S ===================== ATLAS CONSOLIDATED: Subsidiary to Augment Capital to PHP3.2 Bil. ---------------------------------------------------------------- Carmen Copper Corp.'s Board of Directors and stockholders has authorized the increase in the company's authorized capital stock during a joint meeting held on Wednesday. Carmen Copper is a wholly owned subsidiary of Atlas Consolidated Mining and Development Corp. According to a disclosure with the Philippine Stock Exchange, Atlas said that Carmen Copper's authorized capital stock will be increased to PHP3.2 billion from the current PHP10 million. * * * 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. BANGKO SENTRAL: Will Finish 2nd Forex Liberalization by Year-end ---------------------------------------------------------------- The Bangko Sentral ng Pilipinas expects its second wave of foreign exchange liberalization to be completed by the end of this year, the Philippine Star reports. According to the article, the central bank's regulators initially planned the measures to be completed by June 30, but BSP Governor Amando M. Tetangco Jr. said the measures might not be ready until December 31. The second wave of forex liberalization will make it easier for Filipino investors abroad because it will lift de facto restrictions on capital outflow, PhilStar says. The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is the central bank of the Republic of the Philippines. It was established on July 3, 1993, pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993. BSP took over from the Central Bank of Philippines as the country's central monetary authority. Bangko Sentral enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities. The powers and functions of the Bangko Sentral are exercised by the Bangko Sentral Monetary Board, the highest policy-making body in the BSP. Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B' Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit Rating. Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior Unsecured Debt Rating. BANKARD INC: Appoints Three New Members of Executive Committee -------------------------------------------------------------- Oscar B. Biason, Atty. Teodoro Q. Pena and Francisco C. Eizmendi Jr. has been appointed into the Bankard Inc.'s Executive Committee during a meeting held on Wednesday. Mr. Biason was appointed as a regular member, while Atty. Pena and Mr. Eizmendi were elected as alternate members. Bankard, Inc. -- http://www.bankard.com/-- is a 67%-owned subsidiary of RCBC Capital Corporation. It was organized by PCIBank in December 1981 as Philippine Commercial Credit Card, Inc. to engage in domestic credit card operation. It issued the country's first credit card by a commercial bank. On July 8, 1992, PCCCI changed its corporate name to Bankard Inc. Bankard is a licensee of Mastercard International Incorporated, JCB International Co., Ltd. and VISA International Service Association to issue credit cards accepted by affiliated banks and merchant establishments worldwide. The company markets a line of credit cards, which includes Bankard MasterCard, Bankard Visa, Bankard JCB Standard and Premiere and its latest, myDream JCB. Bankard reported a net loss of PHP597.6 million for the year ended December 31, 2006, which translated to a loss per share of PHP1.92, the bank said in it annual financials filed with the Philippine Stock Exchange. The bank also had a net loss of PHP422.4 million for the year ended December 31, 2005. CHIQUITA BRANDS: U.S. Federal Court Fines Firm US$25 Million ------------------------------------------------------------ The US federal court has ordered Chiquita Brands International to pay US$25 million in fines for paying millions of dollars to Colombian terrorist groups from 1997 to 2004, Agence France- Presse reports. Agence France notes that Chiquita Brands pleaded guilty to paying some US$1.7 million to Colombian paramilitary group United Self-Defense Committees of Colombia. Chiquita Brands explained to the Business Courier of Cincinnati that the payments were made by a former unit due to threats to the safety of workers. According to Agence France, the Honorable Royce Lamberth has authorized an accord between Chiquita Brands and the US government in March 2007 that spared company officials. Agence France relates that the prosecution has agreed not to name or prosecute Chiquita Brands executives who were involved in paying the terrorist groups. The Business Courier notes that the U.S. Department of Justice decided not to file charges against 10 Chiquita Brands executives for allegedly facilitating the bribes. Meanwhile, Chiquita Brands still faces a civil lawsuit filed in the district court of New Jersey in July 2007 by families of the terrorists' victims, Agence France says. The complainants are seeking for unspecified damages. They claimed that Chiquita Brands funded and armed terrorist organizations to maintain control of Colombian banana growing regions. Agence France notes that a class action lawsuit could result in damages being awarded to each victim of any terrorist group paid by Chiquita Brands. The firm could pay as much as tens of millions of dollars. The Associated Press relates that Chiquita Brands was placed on probation for five years. Chiquita Brands told the Business Courier that it cooperated with the federal probe. About Chiquita Brands Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Panama and the Philippines. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. METROPOLITAN BANK: Elects Richard Benedict So as Sr. Vice Pres. --------------------------------------------------------------- Metropolitan Bank & Trust Co. has appointed Richard Benedict S. So as senior vice president effective October 8 during a meeting held last Wednesday. At the meeting, the Board of Directors also made these appointments during the meeting: * Fabian S. Dee as director effective October 1 * Vicente R. Cuna Jr. as adviser effective October 1 * Atty. Angelica H. Lavares as additional assistant corporate secretary effective October 1 Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * As reported on Nov. 6, 2006, that Moody's Investors Service revised the outlook of Metropolitan Bank & Trust Co.'s foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3 from negative to stable. The outlooks for Metropolitan Bank's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of D remain stable. On Sept. 21, 2006, Fitch Ratings upgraded Metrobank's Individual rating to 'D' from 'D/E'. All the bank's other ratings were affirmed: * Long-term Issuer Default rating 'BB-' -- with a stable Outlook, * Short-term rating 'B,' * Support rating '3. On March 3, 2006, Standard and Poor's Rating Service assigned a CCC+ rating on Metrobank's US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. METROPOLITAN BANK: Ramon Sy Resigns as Director & Vice Chairman --------------------------------------------------------------- Ramon Y. Sy has resigned as director and vice chairman of Metropolitan Bank & Trust Co. According to a disclosure with the Philippine Stock Exchange, Mr. Sy's resignation is effective September 30. Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * As reported on Nov. 6, 2006, that Moody's Investors Service revised the outlook of Metropolitan Bank & Trust Co.'s foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3 from negative to stable. The outlooks for Metropolitan Bank's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of D remain stable. On Sept. 21, 2006, Fitch Ratings upgraded Metrobank's Individual rating to 'D' from 'D/E'. All the bank's other ratings were affirmed: * Long-term Issuer Default rating 'BB-' -- with a stable Outlook, * Short-term rating 'B,' * Support rating '3. On March 3, 2006, Standard and Poor's Rating Service assigned a CCC+ rating on Metrobank's US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. NIHAO MINERAL: Mina Tierra Deal Cues Trading Suspension by PSE -------------------------------------------------------------- The Philippine Stock Exchange has effected a trading suspension yesterday on the shares of NiHAO Mineral Resources Inc. as the PSE seeks further information on Mina Tierra's subscription of 475 million common shares in NiHAO. In a disclosure with the PSE on Wednesday, NiHAO said that its Board of Directors authorized the opening of 475 million shares for subscription by Mina Tierra in order to effect the company's acquisition of the Botolan Mining rights from Mina Tierra. The shares have an aggregate par value of PHP475 million. * * * Formerly known as Magnum Holdings Inc., Pasig City, Philippine- based NiHAO Mineral Resources Inc. was originally organized to engage in mining exploration. On June 28, 2007, the Securities and Exchange Commission approved the change in its Magnum Holdings Inc.'s name to NiHAO Mineral Resources, Inc. After auditing the company's annual report for FY2006, Napoleon Calderon at MCJ & Co. raised significant doubt on the company's ability to continue as a going concern, citing the company's: * losses of PHP920,708 and capital deficit of PHP4.82 million for the year ended Dec. 31, 2006; * losses of PHP788,695 and capital deficit of PHP3.90 million for the year ended Dec. 31, 2005; and * losses of PHP691,286 and capital deficit of PHP3.11 million for the year ended Dec. 31, 2004. PHILCOMSAT HOLDINGS: Justice Dept. Proposes Dissolution of Firm --------------------------------------------------------------- The Department of Justice is proposing to dissolve Philcomsat Holdings Corp. in a bid to end the conflict between two major groups of shareholders and to allow the government to exert greater control over the management and assets of the company, the BusinessWorld reports. Justice Undersecretary Fidel J. Exconde explained to reporters that the dissolution of Philcomsat Holdings will facilitate the transfer of its assets to parent firms Philippine Communications Satellite Corp. and the Philippine Overseas and Telecommunications Corp. The government can also call for a stockholders' meeting through the Presidential Commission on Good Government, which owns 28% of Philcomsat Holdings, and eventually move to dissolve the firm, the undersecretary added. Shareholder Erlinda K. Ilusorio-Bildner said that her group supports the dissolution of the company, but points out that "how can [the government] dissolve it if [the group of Enrique Locsin refuses to let go]?" Meanwhile, BusinessWorld was unable to reach the members of the PCGG-backed faction for comment. The PCGG-backed shareholders, led by vice president Enrique Locsin, has long been in conflict with the faction led by Ms. Ilusorio-Bildner, Atty. Victor A. Africa and Sen. Juan Ponce Enrile over the control of Philcomsat Holdings. The two groups have repeatedly accused each other of squandering the company's assets through large kickbacks and unauthorized transactions. Because of the dispute, Philcomsat Holdings, which is a publicly listed firm, failed to submit its annual report to the Philippine Stock Exchange on time. Trading of its stocks has been put on hold since April. About Philcomsat Holdings Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc. -- was incorporated on May 10, 1956. During the 70s and early 80s when the country experienced a boom in geophysical and drilling activities both offshore and onshore, Philcomsat Holdings was one of the active participants in search of oil. The company has since withdrawn from oil exploration because there was no commercial discovery of oil. On January 10, 1997, the company approved amendments to its Articles of Incorporation, changing its primary purpose from embarking in the discovery, exploitation, development and exploration of mineral oils, petroleum in its natural state, rock or carbon oils, natural oils and other volatile mineral substances to a holding company. According to a Troubled Company Reporter-Asia Pacific report on May 18, 2006, Philcomsat Holdings has not declared dividends for the past two fiscal years. Philcomsat is involved in an anomaly brought about by huge losses. The company reported a PHP6.965-million loss in 2004 and a PHP22-million loss in 2005. The Philippine Senate has initiated an inquiry into the matter. Moreover, according to press reports, a huge fraction of the shareholdings of Philcomsat, which is said to be ill-gotten, had been confiscated by the Government. PHIL LONG DISTANCE: Job Cuts May Boost Earnings, Analysts Say ------------------------------------------------------------- Analysts are expecting earnings of the Philippine Long Distance Telephone Co. to be boosted by its recently announced job cuts due to changes in technology and consumer demand, the Philippine Daily Inquirer reports. According to the article, PLDT's stocks rose to their highest level yesterday, touching PHP2,855 before it closed at PHP2,830 with 163,320 shares changing hands. This is 2.5% higher than Wednesday's closing. Jose Vistan Jr., research director at AB Capital Securities, said that "[the trade] is just because of the overall bullish outlook for the economy and the upside momentum of the market." The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is the central bank of the Republic of the Philippines. It was established on July 3, 1993, pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993. BSP took over from the Central Bank of Philippines as the country's central monetary authority. Bangko Sentral enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities. The powers and functions of the Bangko Sentral are exercised by the Bangko Sentral Monetary Board, the highest policy-making body in the BSP. Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B' Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit Rating. Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior Unsecured Debt Rating. STEEL CORP: Seeks to Have Atty. Gabionza Sacked as Receiver ----------------------------------------------------------- The Steel Corporation of the Philippines awaits a ruling on its motion pending before the Court of Appeals to replace its current rehabilitation receiver, Atty. Santiago T. Gabionza, because of alleged favor towards the company's creditor, Equitable PCI Bank, the Manila Bulletin reports. SCP's vice president, Nonnatus P. Chua, said that Atty. Gabionza concentrated on converting the company's debts to equity instead of seeking remedies to rehabilitate the company, resulting in a reduced net book value for the company and a takeover by Equitable PCI of majority control over SCP. Mr. Chua told the Bulletin that he and his financial advisors have submitted a "viable" rehabilitation plan to oppose the proposed plans by EPCI and Atty. Gabionza, which he said were "hostile takeover plans and are not meant to rehabilitate [the company]." Based in Makati City, Philippines, Steel Corp. of the Philippines -- http://www.steelcorp.com.ph/index.php-- provides coated steel products for use in a diverse range of applications like appliance, automotive, architecture, construction, furniture, and cans. The company is currently subject to a rehabilitation initiated by one of its creditors, Equitable PCI Bank, which has now merged with Banco de Oro Universal Bank to form the current Banco de Oro-Equitable PCI Bank Inc. ================= S I N G A P O R E ================= AAR CORP: Reports Record Quarterly Sales and Record 1Q Earnings --------------------------------------------------------------- AAR Corp. (NYSE: AIR) reported fiscal 2008 first quarter net sales of US$306.0 million and income from continuing operations of US$15.3 million, or US$0.36 per diluted share. Sales grew 27% from US$240.2 million last year, and income from continuing operations increased 25% from US$12.2 million in the prior year. AAR achieved double-digit sales growth in all four of the Company's operating segments. Sales to commercial customers increased 26%, and sales to defense customers grew 30%, year- over-year. The 26% increase in sales to commercial customers was driven by strength in supply chain programs and aftermarket parts sales, increased heavy maintenance activity, including the acquisition of Reebaire, and continued momentum in the aircraft sales and leasing business. During the quarter, the Company launched an additional line of heavy maintenance for Southwest Airlines at its Indianapolis Maintenance Center. In addition, the Company nearly doubled the size of its aircraft fleet through the acquisition of eighteen 737-400 aircraft and one 747-400 aircraft with joint venture partners. The 30% growth in sales to defense customers was attributable to robust demand for mobility systems products, the acquisition of Brown International in April 2007 and strength in performance- based logistics programs. AAR was awarded a US$162 million contract for specialized shipping/storage containers, shelters and accessories to support several branches of the U.S. military and federal civilian agencies. In addition, the Company received a US$31 million order to provide specialized shelters to the U.S. Army and was selected by the U.S. Army to provide 25 cargo handling systems for CH-47 (Chinook) helicopters. Shipments on these new contracts will commence during the second quarter. Gross profit margin was 18.5% for the first quarter compared to 17.9% last year, excluding impairment charges recorded during the first quarter of fiscal 2007. Selling, general and administrative expenses increased US$4.8 million year-over-year, reflecting the impact of acquisitions and increased spending to support growth, as well as investments in operational improvement initiatives across the Company. Selling, general and administrative expenses declined to 10.0% of sales from 10.7%. Net interest expense increased US$0.4 million year-over-year related to investments made in the business, including acquisitions and aircraft purchases. The effective income tax rate increased to 34% during the first quarter from 30% a year ago due to the expiration of certain tax benefits. "We are pleased with the strong sales growth we generated in the first quarter, and fiscal 2008 is off to a solid start," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. "We believe that our top line momentum combined with the margin improvement initiatives underway will contribute to margin expansion going forward. Further, our banks recognize the Company's significant achievements and agreed to an increase in our revolving credit facility from US$140 million to US$250 million as we explore new opportunities for growth, increasing our market presence and improving our operating results." AAR CORP. and Subsidiaries Unaudited Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended August 31, 2007 2006 ---- ---- Sales US$305,960 US$240,242 Cost and Expenses: Cost of sales 249,420 197,219 Cost of sales - impairment charges - 7,652 Selling, general and administrative 30,662 25,825 Earnings from aircraft joint ventures 1,020 3,041 Gain on sale of product line - 5,358 Operating income 26,898 17,945 Gain on extinguishment of debt - 2,927 Interest expense 4,338 4,666 Interest income 583 1,339 Income from continuing operations before income taxes 23,143 17,545 Income tax expense 7,888 5,316 Income from continuing operations 15,255 12,229 Discontinued Operations: Operating loss, net of tax 102 445 ---- ---- Net income US$15,153 US$11,784 Share Data: Earnings per share - Basic: Earnings from continuing operations US$0.41 US$0.34 Loss from discontinued operations - (0.01) Earnings per share - Basic US$0.41 US$0.33 Earnings per share - Diluted: Earnings from continuing operations US$0.36 US$0.30 Loss from discontinued operations - (0.01) Earnings per share - Diluted US$0.36 US$0.29 Average shares outstanding - Basic 36,836 36,076 Average shares outstanding - Diluted 43,789 42,893 Consolidated Balance Sheet Highlights (In thousands except per share data) 08/31/ 05/31/ 2007 2007 ------ ------ (unaudited) (audited) Cash and cash equivalents US$58,021 US$83,317 Current assets 615,927 645,721 Current liabilities (excluding debt accounts) 165,243 182,261 Net property, plant and equipment 90,935 88,187 Total assets 1,076,976 1,067,633 Total recourse debt 284,179 284,229 Total non-recourse obligations 57,669 43,627 Stockholders' equity 509,380 494,243 Book value per share US$13.51 US$13.10 Shares outstanding 37,712 37,729 About AAR Corp. AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Asia Pacific on Oct. 18, 2006, Standard & Poor's Ratings Services upgraded AAR Corp.'s corporate credit rating from 'BB-' to 'BB'. The outlook is stable. The TCR-AP also reported on Dec. 5, 2006, that Moody's upgraded AAR's corporate family rating and senior notes to Ba3 from B1, in response to improving financial performance resulting from the strong commercial and defense aviation supply and repair environment. The ratings outlook is stable. CKE Restaurants: Posts US$9.4-Mil. Net Income in 2nd Qtr. 2007 -------------------------------------------------------------- CKE Restaurants posted a net income of US$9.42 million for the twelve weeks ended August 13, 2007, compared with the US$14.21-million net income reported in the same period ended August 14, 2006. Second Quarter Highlights -- Same-store sales increased 2.0% at Carl's Jr. and 2.9% at Hardee's company-operated restaurants, compared to the prior year quarter; -- Average unit volumes for the trailing thirteen periods increased to US$1,481,000 and US$934,000 at company- operated Carl's Jr. and Hardee's restaurants, respectively; -- Consolidated revenue for the current year quarter was US$363.1 million, a 0.4 % decrease from the prior year quarter. Company-operated restaurants revenue for the current year quarter was US$287.8 million, a 0.5% decrease from the prior year quarter. Both consolidated revenue and company-operated restaurants revenue comparisons have been negatively impacted by the refranchising of our Oklahoma Carl's Jr. market during the prior year quarter and by the refranchising of 46 Hardee's restaurants during the current fiscal year; -- Second quarter operating income was US$23.4 million versus US$33.9 million in the prior year quarter. The US$10.5 million decrease in operating income was attributable to a number of factors: 1) Food and packaging costs increased by 130 basis points (or approximately US$3.7 million), primarily due to increased commodity prices for beef, cheese, pork and oil products and an increase in soft drink syrup prices. 2) Occupancy and other restaurant operating costs increased by 110 basis points (or approximately US$3.1 million), primarily due to increased rent and depreciation and amortization expense. Rent expense increased due mainly to rental rate increases resulting from Consumer Price Index and fair market value adjustments and the refranchising of our Oklahoma Carl's Jr. market during the prior year quarter. Depreciation and amortization expense increased due mainly to the rollout of new point-of-sale software and related hardware, as well as increased restaurant remodel activity. 3) Royalty revenue decreased by US$1.8 million, primarily due to substantial collections, during the prior year quarter, of previously unrecognized royalties from delinquent franchisees that did not recur to the same extent in the current year quarter; 4) Workers' compensation expense increased by US$1.4 million, as a result of a US$2.5 million charge to increase our liability for self-insured claim losses associated with a 1982 injury claim, partially offset by a US$1.1 million reduction related to our workers' compensation expense for all other self-insured claims; 5) Labor, advertising and share-based compensation expense increased by an aggregate of US$1.5 million; and 6) Facility action charges, net decreased by US$1.3 million; -- Second quarter income before income taxes and discontinued operations was US$19.5 million versus US$26.4 million in the prior year quarter. This year's income before income taxes and discontinued operations decreased as a result of the factors discussed above, the impact of which was partially offset by a decrease of US$3.6 million in conversion inducement expense; -- Second quarter income from continuing operations was US$11.7 million or US$0.18 per diluted share versus US$14.7 million or US$0.21 per diluted share in the prior year quarter; -- Restaurant operating costs at Carl's Jr. company-operated restaurants increased 380 basis points, compared to the prior year quarter, to 79.6 % of company-operated restaurants revenue. The increase was primarily due to higher food and packaging costs (50 basis points) and higher rent and depreciation and amortization expense (140 basis points), as well as higher payroll and employee benefits expense (150 basis points) due to an unfavorable workers' compensation reserve adjustment associated with a 1982 workers' compensation claim. -- Restaurant operating costs at Hardee's company-operated restaurants increased 220 basis points, compared to the prior year quarter, to 83.2 % of company-operated restaurants revenue. The increase was primarily due to higher food and packaging costs; -- For the twenty-eight weeks ended Aug. 13, 2007, the company generated earnings before interest, income taxes, depreciation and amortization, facility action charges and share-based compensation expense ("Adjusted EBITDA") of US$92.7 million, versus US$104.1 million in the comparable prior year period. For the trailing-13 periods ended August 13, 2007, the company generated Adjusted EBITDA of US$169.8 million; -- The company repurchased 4,022,300 shares of common stock during the quarter at a total cost of US$70.3 million; -- Since the end of the second quarter, the company has repurchased an additional 2,056,500 shares at a total cost of US$35.5 million; -- Fully diluted shares outstanding for the twelve and twenty-eight weeks ended Aug. 13, 2007, were 65.3 million and 68.0 million, respectively. Executive Commentary Andrew F. Puzder, president and chief executive officer, said, "Second quarter operating income was US$23.4 million versus US$33.9 million in the prior year quarter. This US$10.5 million decrease in operating income from last year's very favorable quarter was primarily due to commodity pressures, increased rent and depreciation and amortization expense and increased workers' compensation expense. While our restaurant operating costs are still among the lowest in the industry, we are not satisfied with this decline. We have taken and will continue to take steps to reverse this trend." "With respect to our restaurant operations, we will continue to focus on the fundamentals of our business, including our premium product strategy, superior customer service, and effective, cutting edge advertising. However, as noted above, we are also very focused on addressing the increase in restaurant operating costs, particularly with respect to the portion of that increase driven by increased food and packaging costs." "During the second quarter, we also took a number of steps to better position our company for future profitability and growth while returning capital to our shareholders." "We returned approximately US$74.0 million to our shareholders through stock repurchases and cash dividends during the quarter, including the repurchase of 4,022,300 shares at a total cost of US$70.3 million. Since the end of the second quarter, we have repurchased an additional 2,056,500 shares at a total cost of US$35.5 million. For fiscal year 2008 to date, we have repurchased 10,458,820 shares at a total cost of US$189.2 million. Subsequent to the end of the quarter, we announced a US$100 million increase in our term loan, and our lenders approved an amendment to our revolving credit facility permitting us greater financial flexibility to repurchase shares and pay cash dividends going forward." "We also continued with our strategic refranchising of approximately 200 Hardee's restaurants originally announced in April. To date, we have completed the refranchising of 80 Hardee's restaurants in the Midwest and Southeast. In addition, we completed the sale of La Salsa Fresh Mexican Grill(TM). Both of these actions will allow us to focus our resources more efficiently on growing our Carl's Jr. and Hardee's brands." "Finally, we have continued to implement our capital plan particularly with respect to our remodel and dual branding initiatives. The results continue to be positive. Going forward, we will continue to reinvest capital in our brands and return capital to our shareholders," Puzder concluded. As of the end of its fiscal 2008 second quarter, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,036 franchised, licensed or company-operated restaurants in 42 states and in 13 countries, including 1,111 Carl's Jr. restaurants and 1,909 Hardee's restaurants. About CKE Restaurants Headquartered in Carpinteria, California, CKE Restaurants Inc. (NYSE: CKR) -- http://www.ckr.com/-- through its subsidiaries, franchisees and licensees, operates some of the most popular U.S. regional brands in quick-service and fast-casual dining, including the Carl's Jr (R), Hardee's(R), Green Burrito(R) and Red Burrito(TM) restaurant brands. The CKE system includes more than 3,000 locations in 43 states and in 13 countries, including Singapore. As of the end of its fiscal 2008 first quarter ended May 21, 2007, through its subsidiaries, had a total of 3,022 franchised, licensed or company-operated restaurants in 43 states and in 13 countries, including 1,101 Carl's Jr. restaurants and 1,905 Hardee's restaurants. * * * As reported in the Troubled Company Reporter-Asia Pacific, on Sept. 10, 2007, Standard & Poor's Ratings Services revised its outlook on Carpenteria, California-based CKE Restaurants Inc. to negative from stable. At the same time, S&P's has affirmed all the ratings, including the 'BB-' corporate credit rating, on the company. OPTIMUM-3 INTERNATIONAL: Court to Hear Wind-Up Petition Today ------------------------------------------------------------- The High Court of Singapore will hear today, September 21, 2007, at 10:00 a.m., a petition to have the operations of Optimum-3 International Pte Ltd wound up. The petition was filed by Foo Kian Beng and Tin Hoon Nyuk on August 29, 2007. The Petitioners' solicitors are: Messrs. Rajah & Tann 4 Battery Road, #15-01 Bank of China Building Singapore 049908 REFCO: Litigation Trust Files Suit Against Advisers & Insiders -------------------------------------------------------------- The Refco Litigation Trusts a filed a lawsuit in New York on behalf of 75 Foreign Exchange customers charging that Refco Inc.'s legal and accounting advisers knowingly assisted corrupt Refco insiders in looting customer assets deposited with Refco. The lawsuit, filed in New York State Supreme Court, names Mayer, Brown, Rowe & Maw LLP, Grant Thornton LLP, Ernst & Young LLP, and the corrupt Refco insiders as defendants. The lawsuit seeks over half a billion dollars in damages and penalties for the defendants' role in committing and aiding in the fraud, breaches of fiduciary duty, and conversion through which Refco FX customer funds were misappropriated. The lawsuit provides a thorough description of the manner through which the Refco insiders, "with the knowledge, active participation, and substantial assistance" of Mayer Brown, Grant Thornton, and Ernst & Young, fraudulently induced FX customers to entrust their funds with Refco's unregulated broker-dealer, Refco Capital Markets, and "secretly deployed" these customer assets as a "personal piggy bank," "to fund other Refco businesses and... keep the Refco house of cards from collapsing." As alleged in the complaint, the Refco insiders caused the customer assets to be "upstreamed," "side-streamed," and "down- streamed" to other Refco entities that "lacked the intent and/or the financial wherewithal to repay the siphoned funds" and were made "without compensation, security or collateral (and) without assurances that the funds would or could be repaid on demand or at all by the Refco entities that received them." The purpose of the entire scheme, the lawsuit alleges, was to dress up Refco's financial condition so as to allow the Refco's insiders to sell their interests at fraudulently inflated prices. Specifically, the lawsuit alleges that: * Grant Thornton "completely abandoned its obligations of independence, learned first-hand of the fraud, and then aided and abetted that fraud by, among other things, continuing to provide clean audit opinions in the face of grotesque accounting manipulations;" * Grant Thornton provided unqualified audit opinions on RCM's financial statements despite knowing these statements mischaracterized the siphoned customer assets as a "receivable from customers" and that the transfers of FX customer funds "were simply extractions of money, with no collateral," were not made in the "normal course of business," and were made to Refco affiliates that "lacked the intent and/or the financial wherewithal to repay the stolen assets;" * Mayer Brown advised Refco and RCM regarding the Refco insiders "fraudulent scheme to attract and siphon RCM customer funds by purporting to maintain RCM as an unregulated offshore broker-dealer despite the fact that after closing its Bermuda operations in late 2001, RCM conducted all of its activities in the U.S.;" * Mayer Brown, "over the course of five years... drafted virtually all of the documents for" fraudulent "round trip" loan transactions at the end of every relevant reporting and audit period (and the unwinding of those transactions days later) that were solely designed to conceal Refco's trading losses, inflated expenses and uncreditworthy financial condition; * Ernst & Young willingly "prepare(d) false tax returns," had complete knowledge of the scheme and "actively assisted" the Refco insiders in hiding Refco's "bad debts," acknowledging internally that it could be "an accessory to some type of fraud." Marc S. Kirschner, Trustee of the Refco Litigation Trusts, said, "This is the third lawsuit filed by the Refco Litigation Trusts, which have a broad mandate to pursue claims on behalf of Refco and its creditors and are committed to achieving a full and speedy recovery of the massive damages caused to Refco and its creditors by numerous parties. The Trusts intend to bring additional lawsuits, in addition to continuing to vigorously pursuing the claims it has filed to date, to seek redress for the harm caused to Refco and its creditors." The complaint was filed by Quinn Emanuel Urquhart Oliver & Hedges. About the Refco Litigation Trusts The two Refco Litigation Trusts were created under the Refco Plan of Liquidation, which became effective on December 26, 2006. Marc S. Kirschner, the former Chapter 11 Trustee for Refco Capital Markets LLC, serves as Trustee for the Trusts. The primary purpose of the Trusts is to pursue all Refco estate claims and claims of certain electing creditors against third parties, with recoveries to be distributed in accordance with the terms of the Refco Plan of Liquidation. The Trusts have US$25 million of funding to support their pursuit of such claims. Since February 2007, the Trusts have been engaged in a comprehensive investigation of potential claims against third parties. The Trusts have now filed three lawsuits against third parties involved in the Refco frauds. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 68; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). REFCO INC: Former Officers Want Reimbursement of Defense Costs -------------------------------------------------------------- Tone N. Grant, Robert C. Trosten, and Phillip R. Bennett, as former officers of Refco Group Ltd., LLC, have filed with the U.S. Bankruptcy Court for the Southern District of New York a complaint against Axis Reinsurance Company with respect to payments for their defense costs. Mr. Grant, RGL's former president and chief executive officer; Mr. Trosten, former executive vice-president and chief financial officer; and and Mr. Bennett, former chairman, president, and chief executive officer, are defendants in various civil and criminal proceedings relating to Refco, Inc.'s financial collapse. The executives have all pleaded not guilty to federal charges of fraud, conspiracy and money-laundering. Axis Reinsurance is the second excess insurer in the "tower" of directors and officers liability insurance obtained by Refco for the policy period from August 11, 2005, to August 11, 2006. The "tower" of D&O Insurance Policies consists of a primary policy and five excess policies, issued by The U.S. Specialty Insurance Company, Lexington Insurance Company, Axis, as primary, first excess, and second excess policies. Jeffrey T. Golenbock, Esq., at Golenbock, Eiseman, Assor, Bell & Peskoe, LLP, in New York, states that the Insureds have requested the advancement of their defense costs from Axis, which it has refused to do. On the other hand, Axis filed a complaint seeking a declaration that it has no financial obligations in connection with the underlying actions. The Court had dismissed the complaint, ruling that Axis is contractually obligated to advance the defense costs incurred by the Insureds, and to reimburse the costs they submitted to date. Mr. Golenbock tells Judge Drain that the Underlying Actions are proceeding towards trial, and defense costs, which have already exhausted the Debtors' primary and first excess D&O Insurance Policies, are rapidly mounting. Mr. Golenbock also points that the Debtors had paid all the premiums and performed all the terms and conditions under the Axis Policy. Mr. Golenbock contends that an actual controversy exists. Accordingly, the Insureds seek a declaration, as well as a permanent injunctive relief, directing Axis to advance the defense costs in accordance with the Axis Policy. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. On June 5, 2006, three more affiliates filed for chapter 11 protection namely: Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC. Refco Commodity Management Inc., another affiliate, filed for bankruptcy on Oct. 16, 2006. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 68; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). =============== T H A I L A N D =============== TMB BANK: Major Shareholder Refuses to Inject Funds for Capital --------------------------------------------------------------- Singaporean bank DBS Group has declined to participate in TMB Bank PCL's recapitalization but will remain a major shareholder, the Bangkok Post reports. DBS said in a statement that it expects its 16.1% stake in the bank to be diluted in the event that TMB issues new shares to increase capital. The group also said that it did not receive enough assurance for sufficient management control in order to effect business and operational changes that will improve the bank's performance. Finance Minister Chalongphob Sussangkarn criticized DBS' approach, saying that the group should "adapt and be flexible to the society and culture of [Thailand]." Mr. Chalongphob said that TMB is continuing its negotiations with ING Bank, and expects recapitalization to be completed by the year's end. According to the Post, DBS' decision has been widely anticipated in the market especially after the bank released its audited financial statements for the first half of 2007, where it posted a net loss of THB8.14 billion. Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd -- http://www.tmbbank.com/-- is a commercial bank that renders financial services to all groups of customers. TMB Bank had total assets of about THB717 billion as at December 31, 2005. Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency Issuer Default Rating; 'B' Short-Term Foreign Currency Rating; 'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual Rating; and Support rating of 3. On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign currency hybrid Tier 1 rating to B from B+ and revised the Outlook on TMB's Long-term foreign currency Issuer Default rating to Stable from Positive. On July 6, 2007, Standard & Poor's Ratings Services gave TMB Bank's US$200-million hybrid Tier 1 securities a 'BB' rating. The TCR-AP also reported on June 13, 2007, that Standard & Poor's Ratings Services has raised the outlook on TMB Bank PCL's debt rating from negative to stable. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------- ------ ------ ------------ AUSTRALIA Advance Healthcare Group Ltd AHG 13.60 -12.40 Allstate Explora ALX 12.65 -51.62 Austar United Communications Limited AUN 411.16 -43.72 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1637.04 -1443.69 Intellect Holdings Limited IHG 15.01 -0.83 KH Foods Ltd KHF 62.30 -1.71 Lafayette Mining Limited LAF 78.17 -127.82 Life Therapeutics Limited LFE 59.00 -0.38 RMG Ltd. RMG 22.33 -2.16 Tooth & Co. Ltd. TTH 99.25 -74.39 UnderCoverWear Limited UCW 28.92 -16.07 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -19.00 Asia Telemedia Limited 376 16.97 -7.50 Baiyin Copper Commercial Bldg (Group) Co 672 24.50 -2.40 Bao Long Orienta 600988 15.80 -11.10 Beiya Industrial (Group) Co., Ltd 600705 462.00 -20.60 Chang Ling Group 561 85.06 -80.88 Chia Tai Enterprises International Ltd. 121 316.12 -8.90 China Liaoning International Cooperation (Group) Ltd 638 20.50 -41.20 Chinese.Com Logi 805 13.80 -32.30 Chongqing Int'l Enterprise Investment Co 000736 19.90 -15.70 Compass Pacific Holdings Ltd 1188 46.98 -15.00 Datasys Technology Holdings Ltd 8057 14.10 -2.07 Dongxin Electrical Carbon Co., Ltd 600691 34.19 -2.90 Dynamic Global Holdings Ltd. 231 44.64 -9.70 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 34.50 -66.90 Fujian Sannong Group Co. Ltd 732 42.50 -100.00 Fujian Start Computer Group Co.Ltd 600734 114.76 -16.98 Guangdong Hualong Groups Co., Ltd 600242 15.23 -46.94 Guangdong Kel-A 921 596.71 -94.69 Guangdong Meiya Group Co., Ltd. 529 70.62 -60.00 Guangxia (Yinchuan) Industry Co. Ltd. 557 48.70 -59.60 Hainan Dadonghai Tourism Centre Co., Ltd 613 18.34 -8.40 Hainan Overseas Chinese Investment Co., Ltd 600759 29.00 -9.90 Hans Energy Company Limited 554 85.00 -0.49 Hebei Baoshuo Co.,Ltd 600155 294.00 -199.00 Hisense Kelon Electrical Hldngs. Co., Ltd 921 596.71 -94.69 Hualing Holdings Limited 382 262.90 -32.17 HuaTongTianXiang Group Co., Ltd. 600225 52.80 -42.00 Huda Technology & Education Development Co. Ltd. 600892 17.10 -0.39 Hunan Anplas Co. 156 77.57 -78.00 Hunan Hengyang 600762 61.10 -44.00 Innovo Leisure Recreation Holdings Ltd. 703 13.37 -3.90 Jiaozuo Xin'an-a 719 56.77 -6.50 Junefield Department Store Group Limited 758 16.80 -6.30 Lan Bao Technology Information Co.,Ltd 631 111.00 -78.90 Loulan Holdings Limited 8039 13.00 -1.04 Mianyang Gao Xin Industrial Dev (Group) 600139 23.90 -15.70 New World Mobile Holdings Ltd 862 295.66 -13.00 New City China 456 253.00 -25.00 Orient Power Holdings Ltd. 615 176.86 -64.00 Plus Holdings Ltd. 1013 18.50 -3.34 Qinghai Xiancheng Industry Stock Co.,Ltd 600381 55.60 -55.00 Regal Real Estate Investment Trust 1881 945.38 -235.00 Sanjiu Yigong Biopharmaceutical & Chem 000403 219.00 -3.48 Shanghai Xingye Housing Co.,Ltd. 600603 16.20 -49.40 Shanghai Worldbest Pharmaceutical Co.Ltd 600656 66.75 -13.00 Shenyang Hejin Holding Company Ltd. 633 103.86 -3.20 Shenzhen China Bicycle Co., Hlds. Ltd. 17 34.20 -239.00 Shenzhen Dawncom Business Tech. and Service Co., Ltd. 863 32.60 -138.00 Shenzhen Kondarl (Group) Co., Ltd. 000048 112.00 -16.00 Shenzhen Shenxin Taifeng Group Co., Ltd. 34 69.90 -53.40 Shijiazhuang Refining-Chemical Co., Ltd 783 357.75 -85.00 Sichuan Direct-A 757 144.00 -94.30 Sichuan Langsha Holding Ltd. 600137 13.80 -62.10 Stellar Megaunion Corporation 000892 54.30 -152.00 Success Information Industry Group Co. 517 77.20 -17.80 Suntek Technology Co., Ltd 600728 49.00 -14.70 Suntime International Economic Trading 600084 359.49 -48.00 Swank International Manufacturing Co Ltd 663 29.31 -1.13 Taiyuan Tianlong Group Co. Ltd 600234 19.50 -89.50 The First Investment & Merchant Co,, Ltd 600515 90.70 5.98 Tianjin Marine Shipping Co. Ltd 600751 111.03 -3.60 Tianyi Science & Technology Co., Ltd 600703 45.80 -41.20 Tibet Summit Industry Co., Ltd 600338 90.90 -4.05 Winowner Group Co. Ltd. 600681 23.30 -72.40 Xiamen Eagle Group Co., Ltd 600711 18.80 -2.74 Yueyang Hengli Air-Cooling Equipment Inc. 622 40.60 -17.20 Zarva Technology Co. Ltd. 688 25.83 -175.37 Zhejiang Haina Science & Tech Co., Ltd. 925 28.50 -36.30 INDIA Andhra Cement Ltd. ANDC 51.12 -5.55 Andrew Yule & Co. Ltd ANY 86.39 -12.00 Ashima Ltd. NASHM 101.78 -35.04 ATV Projects India Ltd. ATV 68.25 -30.00 B S Refrigerator NBPLE 75.91 -10.23 Balaji Distiller BLD 37.76 -71.00 Bagalkot Udyog Ltd. BUL 20.55 -0.60 Baroda Rayon Corp. Ltd. BR 41.16 -26.62 Birla VXL Ltd NVXL 98.77 -14.62 CFL Capital Financial Services Ltd CEATF 25.40 -47.30 Core Healthcare Ltd. CPAR 214.36 -151.00 Deccan Aviation Pte. Ltd. DECA 86.94 -2.83 Dunlop India Ltd DNLP 52.75 -65.30 Fairfield Atlas Ltd. ATG 23.40 -1.76 GKW Ltd. GKW 35.75 -13.52 Global Broadcast News Ltd GBN 55.15 -30.60 Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.00 Gujarat State Fi GSF 153.48 -157.00 Himachal Futuris HMFC 574.62 -38.70 HMT Limited HMT 238.05 -288.85 JCT Electronics Ltd. JCTE 118.28 -165.74 Jenson & Nic Ltd JN 15.41 77.32 JK Synthetics Ltd JKS 24.04 -1.42 Kothari Sugars and Chemicals Ltd. NKTSG 43.24 -29.24 JOG Engineering VMJ 50.08 -10.08 Lloyds Metals LYDM 70.72 -10.25 Lloyds Steel Ind LYDS 404.38 -86.45 LML Ltd. LML 81.21 -11.89 Mafatlal Ind. MFI 95.67 -85.81 Malanpur Steel Ltd. HDC 82.08 -52.01 Modern Threads MRT 78.18 -20.71 Mysore Cements MYC 82.02 -14.57 Mysore Kirloskar Ltd. MK 23.71 -3.04 Panchmahal Steel Ltd. PMS 51.02 -0.33 Panyam Cements PYC 17.18 -18.32 Phil Corporation NPPII 22.13 -4.96 RPG Cables Ltdd NRPG 51.43 -20.20 Saurashtra Cemen SRC 112.31 -4.57 Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.40 Shree Rama Multi Tech Ltd. NSRMT 86.31 -3.90 Shyam Telecom NSHY 147.34 -22.80 Singer India Ltd SING 12.32 -6.69 SIV Ind. Ltd. NSIV 101.16 -66.27 Steel Tubes Ltd NSTU 30.47 -26.45 Synthetics & Che SYNC 54.94 -6.90 Tata Teleservices (Maharashtra) Limited NTTLS 619.95 -111.52 UB Engineeering UBE 47.78 -2.77 Uniflex Cables UFC 17.22 -5.04 INDONESIA Ades Waters Indonesia Tbk ADES 21.40 -8.93 Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Steel Works Tbk JKSW 44.72 -38.57 Panca Wiratama Sakti Tbk PWSI 39.72 -18.80 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Toba Pulp Lestrari Tbk INRU 403.58 -198.86 Unitex Tbk UNTX 29.08 -5.87 Wicaksana Overseas International Tbk WICO 43.09 -46.36 JAPAN Banners Co., Ltd 3011 46.33 -14.11 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 NIWS Co., HQ Ltd. 2731 541.00 -33.00 Orient Corporation 8585 37956.19 -1109.02 Tasco System Co., Ltd 2709 48.50 -14.10 Trustex Holdings, Inc. 9374 102.84 -7.80 KOREA DaeyuVesper Co. Ltd. 41140 19.10 -1.60 DaiShin Information & Communication Co. 20180 741.00 -158.00 Dong Yang Gang 1780 109.00 -9.80 E Star B Co., Ltd. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 167.00 -12.30 Everex Inc 47600 23.15 -5.10 Hyundai IT Corp. 48410 137.00 -48.10 Inno Metal Izirobot Inc. 70080 28.60 -0.33 Korea Cement Co., Ltd. 3660 146.00 -15.80 Oricom Inc. 10470 82.65 -40.00 Seji Co., Ltd 53330 37.30 -0.31 Tong Yang Magic Co., Ltd. 23020 355.15 -25.77 Unick Corporation 11320 36.50 -4.45 MALAYSIA Boustead Heavy Industries Corp. Bhd BHIC 62.80 -116.18 FED Furniture FFHB 38.94 -1.01 Lityan Holdings Berhad LIT 22.22 -19.11 Mentiga Corporation Berhad MENT 22.13 -18.25 Pan Malay Industries PMRI 185.98 -6.91 PanGlobal Berhad PGL 189.92 -50.36 Paxelent Corp PAXE 13.16 -4.51 Sateras Resources Bhd. SRM/4278 44.73 -38.82 Sino Hua-An International Bhd HUAAN 184.60 -98.30 Sycal Ventures Berhad SYC 58.47 -69.79 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 71.75 -218.00 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.00 Cyber Bay Corporation CYBR 11.54 -58.10 East Asia Power Resources Corp. PWR 92.55 -64.61 Fil Estate Corp. FC 36.10 -7.75 Filsyn Corporation FYN 20.88 -9.68 Gotesco Land, Inc. GO 17.34 -9.59 Prime Orion Philippines Inc. POPI 98.36 -74.30 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon UPM 22.80 -29.23 Universal Rightfield Property UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 SINGAPORE ADV Systems Auto ASA 14.30 -8.54 Compact Metal Industries Ltd. CMI 47.40 -36.50 Falmac Limited FAL 10.51 -2.30 Gul Technologies GUL 155.76 -15.21 HLG Enterprise HLGE 116.77 -8.71 Informatics Holdings Ltd INFO 20.42 -11.65 L & M Group Investments Ltd LNM 56.91 -10.59 Lindeteves-Jacoberg Limited LJ 185.49 -46.43 Pacific Century Regional PAC 1569.35 -88.20 Semitech Electronics Ltd. SEMI 11.01 -0.23 THAILAND Bangkok Rubber PCL BRC 70.19 -57.00 Central Paper Industry PCL CPICO 40.41 -37.00 Circuit Electronic Industries PCL CIRKIT 20.37 -65.00 Daidomon Group PLC DAIDO 12.92 -8.51 Datamat Public Co., Ltd DTM 17.55 -1.72 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.10 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.90 Thai-Wah PCL TWC 91.56 -41.24 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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 ***