/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/071008.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 Monday, October 8, 2007, Vol. 10, No. 199 Headlines A U S T R A L I A ADVANCED MARKETING: Plan Confirmation Hearing Set for Nov. 15 ADVANCED MARKETING: Judge OKs Baker Taylor Settlement Pact BELVALLEY PTY: Members to Hold Final Meeting on Oct. 18 BLACK HOLDINGS: Members' Final Meeting Set for Oct. 16 CHRYSLER LLC: Reports 5% Drop in U.S. Sales for Sept. 2007 CHRYSLER LLC: Intends to Close Assembly Plant in Illinois IGAS ENGINEERING: Members & Creditors Opt to Wind Up Operations KENDLE INTERNATIONAL: Names Ken Hintze as Vice President PAYEZY PTY: Liquidator to Give Wind-Up Report on Oct. 12 R & R (AUST): Taps van der Velde and Sweeney as Liquidators SCO GROUP: Section 341(a) Creditors Meeting Set for Oct. 18 SCO GROUP: Taps Berger Singerman as General Counsel SCO GROUP: Promotes Sandy Gupta to President of SCO Operations TECHDEX PTY: Members Resolve to Liquidate Business THE HOME OF FURNITURE: Final General Meeting Set for Oct. 10 THE PHOTOPLAY: Members and Creditors Set to Meet on Oct. 12 WHAREMA PTY: Members to Receive Wind-Up Report on Oct. 15 ZINIFEX LTD: Nyrstar Revised Profit Down by 19 Percent ZINIFEX LTD: To Float Nyrstar on NYX with Umicore C H I N A & H O N G K O N G ACXIOM CORP: Expects Improved Second Quarter Financial Results ACXIOM CORP: Silver Lake & ValueAct Terminates Merger Deal CITIC PACIFIC: Shareholders Approve Dah Chong's Spin-Off CONCORD COMMUNICATIONS: Members' General Meeting Set for Oct. 29 DANA CORP: Appaloosa Re-Affirms Investment Bid; Sends Final Deal DANA CORP: Eyes Entry of Mexican Unit Restructuring Process DISTACOM HONG KONG: Liquidator to Give Wind-Up Report on Oct. 29 EARNSON DEVELOPMENT: Final General Meeting Set for Oct. 31 FIAT SPA: CEO Optimistic About Bus Production Deal in China GREAT YIELD: Members to Meet on October 29 TOYOTA MOTOR: Liquidators Quit Post I N D I A BANK OF BARODA: Signs Definitive Pacts for Pioneer Global JV DECCAN AVIATION: Grants 451,000 Options to Employees & Director PRA INTERNATIONAL: Moody's Assigns B3 Corporate Family Rating PRA INTERNATIONAL: S&P Assigns B Corporate Credit Rating TATA STEEL: Members OK Capital Increase to INR8000,00,00,000 TATA STEEL: Managing Director of Corporate Services Resigns I N D O N E S I A AVNET INC: Inks US$600 Five-Year Senior Unsec. Credit Facility BANK CENTRAL ASIA: Vice President Resigns Effective Jan. 1, 2008 BANK NEGARA: Ups Capital Participation in PT BNI Multifinance DAVOMAS ABADI: Lehman Brothers Buys 1,226,871,942 Shares FOSTER WHEELER: Bags EPC Pact for ExxonMobil's Chemical Project PARKER DRILLING: Improved Performance Spurs S&P to Lift Ratings J A P A N DELPHI CORP: U.S. Trustee Adds SABIC to Creditors Committee FORD MOTOR: Overall September 2007 Vehicle Sales Decline by 21% GAP INC: Distributing US$0.08 Per Share Quarterly Dividend INTERNATIONAL RECTIFIER: Alex Lidow Steps Down as CEO & Director INTERNATIONAL RECTIFIER: Discloses Key Internal Initiatives LIBERTY GLOBAL: Hires Bob Leighton as Senior VP for Programming MICRON TECH: Posts US$320 Million Net Loss in Year Ended Aug. 30 NIS GROUP: S&P Downgrades Credit & Debt Ratings to 'BB-' SOJITZ CORP: Wraps Up Primary Metals Tender Offer SOLO CUP: Hires Scott Advertising as Creative Agency K O R E A DURA AUTOMOTIVE: Gets Court Nod to Submit Plan to Creditors EG SEMICON: Board OKs Issuance of 3,980,000 Common Shares ESTECHPHARMA CO: Adjusts Price of Third Convertible Bonds M A L A Y S I A KNOLL INC: Completes US$67 Million Edelman Purchase FOAMEX INT'L: Sells US$10 Mil. Carpet Facilities to Future Foam SMART MODULAR: Reports US$13.2-Mln Net Income in Fourth Qtr 2007 SOLECTRON CORP: Agent Discloses Final Result of Exchange PECD BERHAD: MARC Cuts Rating of MYR200M Fixed Rate Bonds to BB+ TALAM CORP: Works on Alternative Reform Plan N E W Z E A L A N D A&R WHITCOULLS: Seeks Clearance to Acquire Borders New Zealand CARROW HOLDINGS: Fixes Oct. 20 as Last Day to File Claims CLEGG & CO: Covenant Trustee Appoints BDO Spicers as Receivers DEEP BLUE: Accepting Proofs of Debt Until Oct. 20 GILBERT PRINTING: Court to Hear Wind-Up Petition on Nov. 29 HERITAGE GOLD: CEO Trent Lash Named New Managing Director HIGHGATE MOTORS: Creditors' Proofs of Debt Due on Oct. 31 JOLLY FARMER: Court Sets Wind-Up Petition Hearing for Nov. 8 KATO LOGGING: Appoints Parsons and Kenealy as Liquidators KTD LTD: Commences Liquidation Proceedings STONNE LTD: Subject to Deeney Planning's Wind-Up Petition WARREN REID: Subject to ACP Media's Wind-Up Petition WESTMERE LTD: Shareholder Resolves to Liquidate Business P H I L I P P I N E S BANGKO SENTRAL: Strong Peso Cues 25 BP Interest Rate Cut BANGKO SENTRAL: Sees 2007 BoP Surplus Hitting US$6.3 Billion BANGKO SENTRAL: Optimistic on Int'l. Reserves Reaching US$30BB FOOSTER WHEELER: Philippine Unit Executes Earn-In Pact w/ PDEP IPVG CORP: Enters Outsourcing Services Venture with Indian Firm PHIL AIRLINES: Exits Receivership Ahead of 2009 Schedule * September International Reserves Reach US$30.7 Billion S I N G A P O R E BARTLEY CONSORTIUM: Placed Under Voluntary Liquidation IN ACTIVE: Requires Creditors to File Proofs of Debt by Nov. 5 SELCO (SINGAPORE): Pays Fourth Interim Dividend SPECTRUM BRANDS: Amy Yoder Assumes Role as United President SPECTRUM BRANDS: Names Anthony Genito as Chief Financial Officer T H A I L A N D ARVINMERITOR: Discloses Updated Financial Outlook ARVINMERITOR INC: Amends Diluted Earnings Per Share Forecast BANK OF AYUDHYA: Huge Loss Provision May Cue Weak 2007 Earnings G-STEEL: S&P Places 'B+' Long-term Ratings on CreditWatch ITV PCL: Expects to Report Progress of Rehab Plan by End-October - - - - - - - - ================= A U S T R A L I A ================= ADVANCED MARKETING: Plan Confirmation Hearing Set for Nov. 15 ------------------------------------------------------------- The Honorable Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware has set a hearing on Nov. 15, 2007, to consider confirmation of the Second Amended Joint Plan of Liquidation filed by Advanced Marketing Services Inc. and its debtor-affiliates and the Official Committee of Unsecured Creditors. Objections to the Plan, if any, must be submitted by November 6. As reported in the Troubled Company Reporter on Sept. 28, 2007, the Court had approved the Disclosure Statement describing the Plan. At the September 26 hearing, Judge Sontchi found that the Disclosure Statement, as amended, contains "adequate information" as required by Section 1125 of the Bankruptcy Code. Judge Sontchi said at the hearing that creditors whose debt is not backed by collateral will be paid from US$0.29 to US$0.42, according to Bloomberg. Pursuant to the Court-approved Disclosure Statement, the unsecured creditors, which are owed between US$29,000,000 and US$36,000,000, and all others who receive only partial payment of what they are owed, are allowed to vote on the Liquidating Plan before the Court decides whether it should be confirmed. In addition, secured creditors, whose debts are guaranteed by collateral, will be paid in full. Unsecured creditors of PGW will be paid in full on debts up to US$11,000,000. The funds to be used to pay AMS' debts will come from the sale of most of the Debtor's assets to its competitor, Baker & Taylor, Inc., according to Bloomberg. Baker & Taylor agreed in March to buy the AMS assets for US$20,000,000 in cash, plus an amount to be based on the value of the AMS debts and book inventory. Baker & Taylor has paid US$57,800,000 under its original Asset Purchase Agreement with AMS. The Debtors and the Committee also delivered at the September 26 hearing a copy of their Second Amended Plan of Liquidation and accompanying Disclosure Statement to add specific provisions with respect to the Reclamation Claims and the 20 Day Administrative Claims filed against AMS, which are allowed as Administrative Claims pursuant to Sections 502 and 503 of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedure. A blacklined copy of the Second Amended Liquidating Plan is available for free at http://researcharchives.com/t/s?23c4 A blacklined copy of the Second Amended Disclosure Statement is available for free at http://researcharchives.com/t/s?23c5 The Second Amended Liquidating Plan provides that each of those claims may be reduced dollar for dollar for returns of goods up to a certain current amount reflecting the goods in possession of the Debtors at or about the time of the report for each claim. A schedule of the Reclamation Claims and their approved current amounts is available at no charge at: http://researcharchives.com/t/s?23c6 Judge Sontchi has directed the creditors to submit their votes on the Plan by November 6. Creditors whose claims are being objected to are not eligible to vote unless such objections are resolved in their favor or, the claims are temporarily allowed by the Court for the purpose of voting to accept or reject the Plan. The Plan Proponents believe that the Liquidating Plan is in the best interests of the creditors and is fair and equitable, and, accordingly, are encouraging the creditors to vote in favor of the Plan. Curtis R. Smith, Chief Executive Officer of AMS, stated in Court filings that upon entry of the Plan Confirmation Order, the cash and assets of the Deferred Compensation Trust will be transferred to Reorganized AMS and will become property of the AMS estate and available for distribution to holders of Allowed Unsecured Claims against AMS. Individuals who contributed to the Deferred Compensation Plan will be treated as holders of Unsecured Claims against AMS. William C. Sinnott of Random House Inc., Chairman of the Creditors Committee, added that on or before the Plan's substantial consummation, the Plan Proponents may file with the Court certain agreements or other documents as may be necessary or appropriate to effectuate and further evidence the terms and conditions of the Plan. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than US$100 million. (Advanced Marketing Bankruptcy News, Issue No. 20; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). ADVANCED MARKETING: Judge OKs Baker Taylor Settlement Pact ----------------------------------------------------------- The Honorable Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware issued a final order approving the settlement agreement between Advanced Marketing Services, Inc., and Baker and Taylor, Inc. Under the Settlement Agreement, Baker & Taylor will pay AMS US$6,050,000, and deliver to the Debtor US$1,750,000 of specific inventory. Judge Sontchi has extended until Oct. 31, 2007, the terms of the Transition Services Agreement, pursuant to which AMS will pay Baker & Taylor US$4,250,000 as a one-time payment that nets all amounts due to either party under the TSA through and including October 31. Baker & Taylor agreed to promptly pay AMS the net amount of US$1,800,000 by wire transfer, consisting of the US$6,050,000 APA payment, less the US$4,250,000 TSA payment. As reported in the Troubled Company Reporter on March 23, 2007, Baker & Taylor, completed the acquisition of the wholesale operations of Advanced Marketing. Baker & Taylor's acquisition includes Advanced Marketing assets through which it distributes bestsellers, children's books, culinary titles, reference works, and other books to membership warehouse clubs. Baker & Taylor also acquired Advanced Marketing's wholesale distribution operations in the United Kingdom and in Mexico. As reported in the Troubled Company Reporter on July 24, 2007, the Debtors asked the Court to compel Baker & Taylor, Inc., to pay the remaining US$6,216,222 due under their Asset Purchase Agreement. Under the agreement, the purchase price was to be paid in three installments: -- on the closing date, US$20,000,000 plus certain additional sums, including 33.3% of the "Combined APG/AR Price"; -- 30 days after the closing date, 33.3% of the Combined APG/AR Price; and -- 60 days after the Closing Date, 33.4% of the Combined APG/AR Price, minus US$1,000,000. Pursuant to the terms of the APA, the amount of the Final Payment should have been US$10,350,632. However, B&T paid only US$4,134,410 on May 18, 2007, leaving the $6,200,000 shortfall. AMS disclosed that it tried many times to persuade B&T to pay what it owes, B&T continues to withhold the amount. To justify its refusal to pay, B&T has relied on unfounded and patently erroneous interpretations of the Purchase Agreement. B&T has insisted it is entitled to US$2,043,969 held by AMS in its ban account at the time of closing, on the ground that any funds deposited in the account on or after 12:01 a.m. on March 19, 2007, belong to B&T. AMS contends B&T's position is false. AMS points out the Purchase Agreement provides that any cash in its bank accounts prior to 2:00 p.m. on March 19, 2007, belongs to it. The parties did not agree to an earlier or later date, AMS says. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than US$100 million. (Advanced Marketing Bankruptcy News, Issue No. 20; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). BELVALLEY PTY: Members to Hold Final Meeting on Oct. 18 ------------------------------------------------------- The members of Belvalley Pty Ltd will hold their final meeting on October 18, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: A. A. Gaffney RSM Bird Cameron Chartered Accountants 8 St George's Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9261 9100 About Belvalley Pty Located at Bruce Rock, in Western Australia, Australia, Belvalley Pty Ltd is an investor relation company. BLACK HOLDINGS: Members' Final Meeting Set for Oct. 16 ------------------------------------------------------ A final meeting will be held for the members of Black Holdings Pty Limited on October 16, 2007, at 4:00 p.m. At the meeting, the members will hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Geoffrey P. Dwyer Level 32, 80 Collins Street Melbourne, Victoria 3000 Australia About Black Holdings Located at Melbourne, Victoria, Australia, Black Holdings Pty Limited is an investor relation company. CHRYSLER LLC: Reports 5% Drop in U.S. Sales for Sept. 2007 ---------------------------------------------------------- Chrysler LLC reported U.S. sales for September 2007 of 159,799 units; down 5% compared to September 2006 with 168,888 units sold. All sales figures are reported as unadjusted. "With the overall industry down versus September 2006, Chrysler retail sales remain strong," said Darryl Jackson, Vice President -- U.S. Sales. "Our fleet sales continue to trend down more than 20% driving the overall sales decrease for the month. This is directly in line with our plan to reduce daily rental fleet during the second half of the year." Chrysler brand car sales were led by Sebring Sedan, which posted sales of 4,418 units and Sebring Convertible which finished the month with sales of 1,639 units. Chrysler Aspen sales rose 8% versus August 2007 with 3,875 units. Jeep(R) brand sales were down 11% year-over-year with retail sales up and fleet down driven by planned fleet reductions, while Wrangler posted gains. Jeep Wrangler and Wrangler Unlimited posted sales of 8,605 units, up 71% versus September 2006. Dodge brand sales increased 5% over last year led by Dodge Ram, which posted a gain of 20%. The all-new Dodge Nitro was up 2% over August 2007. "Our sell down on 2007 models is going very well and in October we will continue to offer aggressive lease and retail payments for our customers," said Michael Keegan, Vice President - Volume Planning and Sales Operations. "We will extend the 0% APR offering for 60 months on more 2007 models through the end of the month." Chrysler finished the month with 450,733 units of inventory, or a 71-day supply. Inventory is down by 15% compared to September 2006 when it was at 533,220 units. 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. CHRYSLER LLC: Intends to Close Assembly Plant in Illinois --------------------------------------------------------- Chrysler LLC, which has started contract negotiations with the United Auto Workers union this week, plans to shutter an assembly plant in Belvidere, Illinois, that produces the Dodge Caliber, Jeep Compass and Jeep Patriot, Kevin Krolicki of Reuters reports. According to Mr. Krolicki, Chrysler spokeswoman Michele Tinson said that the temporary shutdown was being done to adjust inventory levels of the plant, which employs 3,400 workers. As reported in the Troubled Company Reporter on Oct. 4, 2007, Chrysler reported U.S. sales for September 2007 of 159,799 units; down 5% compared to September 2006 with 168,888 units sold. Jeep(R) brand sales were down 11% year-over-year with retail sales up and fleet down driven by planned fleet reductions, while Wrangler posted gains. Jeep Wrangler and Wrangler Unlimited posted sales of 8,605 units, up 71% versus September 2006. Dodge brand sales increased 5% over last year led by Dodge Ram which posted a gain of 20%. The all-new Dodge Nitro was up 2% over August 2007. 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. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. 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 $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. IGAS ENGINEERING: Members & Creditors Opt to Wind Up Operations --------------------------------------------------------------- At an extraordinary general meeting held on August 30, 2007, the members and creditors of Igas Engineering Pty Ltd resolved to voluntarily wind up the company's business. Joseph Loebenstein was appointed liquidator. The Liquidator can be reached at: Joseph Loebenstein Chartered Accountant c/o Loebenstein Insolvency Services Pty Ltd 1/191 Balaclava Road, Caulfield North Victoria Australia About Igas Engineering Igas Engineering Pty Ltd provides business services. The company is located at Mulgrave, Victoria, Australia. KENDLE INTERNATIONAL: Names Ken Hintze as Vice President -------------------------------------------------------- Kendle International has appointed Ken Hintze, PhD, as Vice President, Global Clinical Safety and Pharmacovigilance. Dr. Hintze will lead the continued growth and development of Kendle's global clinical safety and pharmacovigilance business, including safety services in support of Phase I-IV trials as well as stand- alone safety projects. Dr. Hintze most recently was Senior Director, Global Clinical Safety and Pharmacovigilance and has been instrumental in advancing Kendle's safety organization to the global resource it is today. "Patient safety remains among our highest priorities at Kendle," noted Melanie Bruno, PhD, Vice President, Global Regulatory Affairs and Quality. "With increasingly complex safety regulations worldwide, our global network of experts ensures both regulatory compliance as well as patient health and welfare. We are very pleased to have Dr. Hintze in this important global role and look forward to his ongoing leadership and expertise as we focus on meeting our customers' needs for high-quality safety services." With more than 100 safety experts based in nine locations worldwide, Kendle offers a globally connected network of safety experts experienced in working within the regulatory requirements of any country. The company's safety organization develops risk management plans, coordinates global regulatory reporting -- including Suspected Unexpected Serious Adverse Reaction reports as well as periodic reports -- and performs endpoint adjudication utilizing a new proprietary electronic endpoint adjudication system that increases both speed and accuracy. The organization is proficient in the full spectrum of safety database systems and can maintain databases internally or within a customer's system via secure connections. The Safety organization works closely with Kendle's Medical Affairs group in reviewing adverse events to provide customers with comprehensive medical monitoring and safety services. Dr. Hintze brings nearly 30 years of safety and regulatory experience to this position. He joined Kendle in 2002 following 23 years at Procter & Gamble in various safety roles involving pharmaceutical and consumer products, including Section Manager, Information Systems and Data Management and North America Product Safety Surveillance; and Section Manager, Global Corporate Toxicology and Consumer Health and Safety Affairs. Dr. Hintze earned Doctorate and Master of Science degrees in pharmacology/toxicology from the University of Iowa and a Bachelor of Science in chemistry from Iowa State University. He is a member of numerous medical and scientific societies, including the Society of Toxicologists. Dr. Hintze is a widely- published author, as well as an accomplished speaker presenting at numerous professional conferences and symposia. He is based in Cincinnati and reports to Dr. Bruno. About Kendle Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) -- http://www.kendle.com/-- is a global clinical research organization and provides Phase II-IV clinical development services worldwide. The company's global clinical development business is focused on five regions -- North America, Europe, Asia/Pacific, Africa and Latin America including Brazil. Kendle has existing operations in Australia, China and India. * * * As of July 3, 2007, the company carried Moody's B1 long-term corporate family rating, B1 bank loan debt, and B2 probability of default rating. Moody's said the outlook was stable. In addition, the company also carried Standard & Poor's B+ long- term foreign and local issuer credits. S&P said the outlook was stable. PAYEZY PTY: Liquidator to Give Wind-Up Report on Oct. 12 -------------------------------------------------------- Payezy Pty Ltd will hold a general meeting for its members and creditors on October 12, 2007, at 10:00 a.m. At the meeting, A. H. Douglas-Brown, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: A. H. Douglas-Brown Bentleys MRI Perth 1st Floor, 10 Kings Park Road West Perth, Western Australia 6005 Telephone:(08) 9480 2000 About Payezy Pty Payezy Pty Ltd provides business services. The company is located at Perth, in Western Australia, Australia. R & R (AUST): Taps van der Velde and Sweeney as Liquidators ----------------------------------------------------------- During a general meeting held on August 27, 2007, the members of R & R (Aust) Pty Ltd agreed to voluntarily wind up the company's operations. Terry Grant van der Velde and Paul Desmond Sweeney were appointed liquidators at the creditors' meeting held later that day. The Liquidators can be reached at: Terry Grant van der Velde Paul Desmond Sweeney c/o SV Partners SV Partners, Insolvency Accountants and Risk Managers SV House, 138 Mary Street, Brisbane, Queensland 4000 Australia Web site: http://www.svpartners.com.au About R & R (Aust) R & R (Aust) Pty Ltd, which is also trading as Mansfreds Bar & Bistro, operates drinking places. The company is located at Fortitude Valley, in Queensland, Australia. SCO GROUP: Section 341(a) Creditors Meeting Set for Oct. 18 ----------------------------------------------------------- The United States Trustee for Region 3, Kelly Beaudin Stapleton, will convene a meeting of creditors of The SCO Group Inc. and its debtor-affiliates on Oct. 18, 2007, at 10:00 a.m., at Room 2112, 2nd Floor, J. Caleb Boggs Federal Courthouse, in Wilmington, Delaware. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About The SCO Group Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate filed for separate Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Case No. 07-11337 thru 07-11338). James E. O'Neill, Esq., Laura Davis Jones, Esq., and Rachel Lowy Werkheiser, Esq. of Pachulski, Stang, Ziehl & Jones LLP represent the Debtors in their restructuring efforts. The Debtor's total assets were US$14,800,000 and its total debts were US$7,500,000 as of Sept. 10, 2007. SCO GROUP: Taps Berger Singerman as General Counsel --------------------------------------------------- The SCO Group Inc. and SCO Operations Inc. ask the United States Bankruptcy Court for the District of Delaware for authority to employ Berger Singerman P.A. as their general counsel, nunc pro tunc to Sept 14, 2007. Debtors selected the firm because the firm's attorneys are qualified to practice in this Court and are qualified to advise the Debtors on their relations with, and responsibilities to, the creditors and other interested parties. As the Debtors' general counsel, Berger Singerman will: a) advise the Debtors with respect to its powers and duties as debtors-in-possession and the continued management of their business operations; b) advise the Debtors with respect to their responsibilities in complying with the United States Trustee's Operating Guidelines and Reporting requirements and with the rules of the Court; c) prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the cases; d) protect the interests of the Debtors in all matters pending before the Court; and e) represent the Debtors in negotiations with their creditors and in the preparation of a plan. The firm's professionals billing rate are: Professional Hourly Rate ------------ ----------- Paul Steven Singerman, Esq. US$475 Arthur J. Spector, Esq. US$450 Associate Attorneys US$250 - US$370 Legal Assistants/Paralegals US$75 - US$160 The firm disclosed that on Sept. 4, 2007, and Sept. 12, 2007, Berger Singerman received retainers of US$50,000 and US$375,000, respectively, in connection with Debtors' chapter 11 cases. Arthur J. Spector, Esq., a shareholder of the firm, assures the Court that the firm does not hold any interest adverse to the Debtors and their estate, and that the firm is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. Mr. Spector can be reached at: Arthur J. Spector, Esq. Berger Singerman P.A. 350 E. Las Olas Boulevard, Suite 1000 Fort Lauderdale, Florida 33301 Tel.: (954) 713-7511 http://www.bergersingerman.com/ Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate filed for separate Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Case No. 07-11337 thru 07-11338). James E. O'Neill, Esq., Laura Davis Jones, Esq., and Rachel Lowy Werkheiser, Esq. of Pachulski, Stang, Ziehl & Jones LLP represent the Debtors in their restructuring efforts. The Debtor's total assets were US$14,800,000 and its total debts were US$7,500,000 as of Sept. 10, 2007. SCO GROUP: Promotes Sandy Gupta to President of SCO Operations -------------------------------------------------------------- The SCO Group, Inc. has promoted Sandy Gupta to President of SCO Operations Inc., effective immediately. Mr. Gupta will continue to report to Darl McBride, President and CEO of The SCO Group. "With Sandy's extensive UNIX technical background and vision for our SCO Mobile products, he will be able to laser-focus on product deliverables and customer needs," Mr. McBride said. "We have a number of key technologies coming out in the next couple of quarters that will drive value for our customers; Sandy's focus will be a win-win for them. Those expanding their IT infrastructure into the mobile space will see a solid solution in SCO Mobile Server, with its UNIX technology backbone. Customers simply needing updated core SCO UNIX technology will have greater capabilities as well as future mobile plug and play functionality." The SCO Group entered the high-growth mobile market several years ago and according to IDC's 2007 Worldwide Mobile Middleware Forecast* it has recently moved into the leadership quadrant with other mobile technology leaders. Most recently, Sandy Gupta was Chief Technology Officer and General Manager for The SCO Group. Prior to that, he held a number of senior positions, including VP of SCO Engineering and Senior Director of UNIX Engineering while working for the SCO Murray Hill office in New Jersey. Mr. Gupta joined SCO in 1996 with the ISV engineering group. During this time, Mr. Gupta worked with strategic ISV partners -- including Progress, Oracle, Computer Associates and others -- on their ports to SCO UNIX platforms. Mr. Gupta then moved to the SCO UK escalations group and led the 24x7 enterprise escalations engineering team. He also led the SCO eCommerce and Web Services initiative in 2003. Before joining SCO, Mr. Gupta worked for Fujitsu ICL in the United Kingdom. During this engagement, Mr. Gupta contributed tremendous effort to the core kernel team at ICL that oversaw the reference port and device driver development of UNIX System V on the SPARC platform. Prior to this experience, Gupta started his career as an intern scientist at Indian Space and Research Organization. "After having worked at SCO for over a decade, I am thrilled to better serve our customers and partners in this new capacity," Mr. Gupta said. "As our primary focus, we will strengthen and expand our UNIX product offerings to our partners and reinvigorate our channels in doing so. The SCO UNIX partner and customer ecosystem has also represented a great channel to launch SCO Mobile products and services complementary to the core UNIX products." Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate filed for separate Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Case No. 07-11337 thru 07-11338). James E. O'Neill, Esq., Laura Davis Jones, Esq., and Rachel Lowy Werkheiser, Esq. of Pachulski, Stang, Ziehl & Jones LLP represent the Debtors in their restructuring efforts. The Debtor's total assets were US$14,800,000 and its total debts were US$7,500,000 as of Sept. 10, 2007. TECHDEX PTY: Members Resolve to Liquidate Business -------------------------------------------------- During a general meeting held on August 30, 2007, the members of Techdex Pty Ltd agreed to voluntarily liquidate the company's business. David James Hambleton was appointed liquidator. The Liquidator can be reached at: David James Hambleton R.E. Murphy & Co, Chartered Accountants Level 9, 46 Edward Street Brisbane, Queensland 4000 Australia About Techdex Pty Techdex Pty Ltd is a distributor of durable goods. The company is located at Redland Bay, in Queensland, Australia. THE HOME OF FURNITURE: Final General Meeting Set for Oct. 10 ------------------------------------------------------------ The members and creditors of The Home of Furniture Pty Ltd will hold their final general meeting on October 10, 2007, at 10:15 a.m. and 12:00 p.m., respectively, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian G. Douglas 1/249 Bouverie Street Carlton, Victoria 3053 Australia Telephone:(03) 9342 2444 About The Home of Furniture The Home of Furniture Pty Ltd operates manufacturing industries. The company is located at Thomastown, Victoria, Australia. THE PHOTOPLAY: Members and Creditors Set to Meet on Oct. 12 ----------------------------------------------------------- The members and creditors of The Photoplay Group Pty Ltd will meet on October 12, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. About The Photoplay The Photoplay Group Pty Ltd is involved with telephone communication, except radio. The company is located at Perth, in Western Australia, Australia. WHAREMA PTY: Members to Receive Wind-Up Report on Oct. 15 --------------------------------------------------------- Wharema Pty Limited will hold a final meeting for its members on October 15, 2007, at 4:00 p.m. At the meeting, the members will hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Geoffrey P. Dwyer Level 32, 80 Collins Street Melbourne, Victoria 3000 Australia About Wharema Pty Located at Melbourne, Victoria, Australia, Wharema Pty Limited is an investor relation company. ZINIFEX LTD: Nyrstar Revised Profit Down by 19 Percent ------------------------------------------------------ Zinifex Ltd. could receive less money than expected from its smelter sale after it released revised earnings figures last week from its Nyrstar smelting joint venture with Belgium's Umicore, Jamie Freed, of the Sydney Morning Herald, reports. Nyrstar, according to SMH, released documents saying that the project would have earned EUR533 million before interest, taxes, depreciation and amortization in 2006 based on the combined Zinifex and Umicore's smelting operations. In June, Zinifex said that Nyrstar would have earned EUR660 million EBITDA during the same period, relates SMH. Reportedly, Martin McFarlane, Zinifex's investor relations head disclosed that the higher earnings figure released in June was "a straight joining of the two accounts." The application of European accounting standards and other adjustments led to the lower earnings figure, Mr. McFarlane added. About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook, following its offer to buy Wolfden Resources Inc for approximately CDN$360 million (approximately AU$385m). Wolfden's board has unanimously recommended that shareholders accept Zinifex's offer. ZINIFEX LTD: To Float Nyrstar on NYX with Umicore ------------------------------------------------- Zinifex Ltd. and Belgium-based Umicore announced its plans to float Nyrstar on the Euronext Brussels stock exchange after conducting a bookbuild by mid-November, reports Jamie Freed of The Sydney Morning Herald. The float, states Ms. Freed, will proceed only if the partners are able to sell down at least 51% of their interest in the company. Zinifex, writes SMH, would prefer to sell all of its interest in Nyrstar into the float. Andrew Trounson of The Australian writes that both companies were planning to sell shares in Nyrstar through an initial public offer "in the coming weeks," where the offering remained subject to market conditions and investor demand, as did the size of the offering. The so-called pro-forma earnings figure is essential in allowing investors to value Nyrstar compared to other publicly listed smelting companies such as Boliden, Korea Zinc and Cumerio, states SMH. Zinifex's investor relations head Martin McFarlane claims they decided to list Nyrstar in Belgium because it had assets in Belgium, France and the Netherlands, relates Ms. Freed. Mr. Trounson quotes Zinifex as saying, "The Euronext markets have a long and deep understanding of the metals sectors -- especially zinc -- which dovetails neatly with our major operations in Belgium, the Netherlands and France, so the Brussels bourse is a natural fit for our business." About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook, following its offer to buy Wolfden Resources Inc for approximately CDN$360 million (approximately AU$385m). Wolfden's board has unanimously recommended that shareholders accept Zinifex's offer. ================================ C H I N A & H O N G K O N G ================================ ACXIOM CORP: Expects Improved Second Quarter Financial Results -------------------------------------------------------------- Acxiom Corporation expects improved revenue, income from operations and net income for its second fiscal quarter ended Sept. 30, 2007, compared to its first fiscal quarter figures. In the first quarter, Acxiom recorded a revenue of US$338.2 million; an income from operations of US$4.1 million; and a net loss of US$11.5 million. The diluted loss per share of US$0.15 included the impact of US$20.6 million, in unusual expense items, net of income tax effect. The unusual items in the first quarter included costs related to the then-pending transaction with Silver Lake and ValueAct Capital of US$15.1 million, which were non-deductible for tax purposes, and US$5.5 million predominantly related to the write- off of certain long-term assets related to an amended contract. These items reduced first-quarter net income by approximately US$18.5 million and diluted earnings per share by US$0.24. "Our forecast for the second half of the fiscal year is for improved results compared to the first half of the year," Charles D. Morgan, Acxiom Company Leader and Chairman of the Board stated. "Also, I should note that the US$65 million we expect to receive related to the termination of the merger agreement will be substantially more than any one-time expenses related to the merger agreement." "Acxiom is a leader in database marketing services and data products," Mr. Morgan concluded. "Our technology, solid financial position, strong client relationships and dedicated associates will ensure that we remain the market leader." The company plans to disclose second quarter financial results on Oct. 24, 2007. Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services said its 'BB' corporate credit rating on Little Rock, Arkansas-based Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications, because the debt will no longer be refinanced as part of the LBO financing. ACXIOM CORP: Silver Lake & ValueAct Terminates Merger Deal ---------------------------------------------------------- Acxiom(R) Corporation has reached an agreement with Silver Lake Partners and ValueAct Capital Partners LP to terminate the acquisition of Acxiom by Axio Holdings, LLC, a company controlled by Silver Lake and ValueAct Partners. Acxiom, Silver Lake and ValueAct Partners have signed a settlement agreement pursuant to which Acxiom will receive US$65 million in cash to terminate the merger agreement. As reported in the Troubled Company on May 17, 2007, Silver Lake and ValueAct Capital will acquire 100% of the outstanding equity interests in the company in an all-cash transaction valued at US$3 billion, including the assumption of approximately US$756 million of debt. Under the terms of the agreement, Acxiom stockholders will receive US$27.10 in cash for each outstanding share of stock. This represents a premium of approximately 14% over the closing share price on May 16, 2007, the last trading day before disclosure of the agreement with Silver Lake and ValueAct Capital with respect to the acquisition of the company and a premium of approximately 20% per share over Acxiom's average closing price per share during the 30 trading. "Acxiom has been an industry leader for over three decades, and we will continue to execute on our long-term strategy to remain the market leader in database marketing, services and data products," Charles Morgan, Acxiom Chairman and Company Leader said. "While I am disappointed that we could not conclude the merger, we have renewed energy and remain focused and committed to delivering value for our shareholders and clients." Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, France, Germany, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 3, 2007, Standard & Poor's Ratings Services' 'BB' corporate credit rating on Little Rock, Ark.-based Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P has also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications. CITIC PACIFIC: Shareholders Approve Dah Chong's Spin-Off -------------------------------------------------------- The shareholders of Citic Pacific held an extraordinary general meeting on Oct. 3, 2007, and approved these two ordinary resolutions by way of voting: (1) the proposed spin-off of Dah Chong Hong Holdings Limited; and (2) the pre-IPO share option scheme and the post-IPO share option scheme of Dah Chong Hong. The unit's spin-off gained 99.9957% vote of approval from the shareholders, while the pre-IPO share option scheme and the post-IPO share option scheme of Dah Chong Hong obtained 84.6229% vote approval. The company earlier disclosed its planned spin-off and separate listing of Dah Chong Hong on the main board of The Stock Exchange of Hong Kong Limited and its proposed share option schemes. Based in Hong Kong, CITIC Pacific Ltd -- http://www.citicpacific.com/-- is engaged in a range of businesses in China and Hong Kong, including steel manufacturing, property development and investment, power generation, aviation, infrastructure, communications and distribution. It is 29% indirectly owned by China International Trust & Investment Corporation. On June 28, 2006, The Troubled Company Reporter-Asia Pacific reported that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on CITIC Pacific Ltd to BB+ from BBB-. At the same time, it removed the rating from CreditWatch, where it had been placed with negative implications on April 7, 2006. The outlook is stable. In addition, the TCR-AP also reported that Moody's Investors Service on June 16, 2006, assigned a Ba1 corporate family rating to CITIC Pacific Ltd and has withdrawn its Baa3 issuer rating. The senior unsecured rating for CITIC Pacific Finance (2001) Ltd's bond is downgraded to Ba1 from Baa3. The rating outlook is stable. This concludes the review initiated by the rating agency in April 2006. CONCORD COMMUNICATIONS: Members' General Meeting Set for Oct. 29 ---------------------------------------------------------------- The members of Concord Communications Limited will hold their final general meeting on Oct. 29, 2007, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Roo, 1307-8 of Dominion Centre, 43- 59 Queen's Road East, in Wanchai, Hong Kong. DANA CORP: Appaloosa Re-Affirms Investment Bid; Sends Final Deal ---------------------------------------------------------------- Appaloosa Management, L.P., on Sept. 21, 2007, re-affirmed its investment offer, to replace the investment offer of Centerbridge Capital Partners, L.P., and delivered to Dana Corp. and its debtor-affiliates the Official Committee of Unsecured Creditors a final investment proposal letter. James Bolin, a partner at Appaloosa, stated, in the September 21 Letter, that Appaloosa's Investment Offer is substantially similar to Centerbridge's Proposal, with certain material improvements and modifications,. The improvements and modifications are: (a) Appaloosa proposes to eliminate and waive the break-up fee described in the Centerbridge Proposal. (b) Appaloosa will enhance the conversion price from 0.83 times Distributable Market Equity Value Per Share to 0.90 times Distributable Market Equity Value Per Share. (c) In lieu of the limited Rule 144A offering contemplated by the Centerbridge Proposal, the right to purchase the Series B Preferred at par will be offered to all holders of allowed unsecured claims on a pro rata basis. Any shares of Series B Preferred not purchased in the Series B Rights Offering will be purchased at par by Appaloosa and certain other entities, who will receive a guaranteed minimum of 40% of the Series B Preferred and a commitment fee of $10,000,000 as consideration for their agreement to perform the foregoing Standby Purchaser obligations. (d) Appaloosa proposes to eliminate the ceiling/floor "collar" mechanism contained in the Centerbridge Proposal. (e) Most of Appaloosa's approval rights will be subject to being over-ridden by a 2/3 vote of common shareholders with the exception of certain specified protective approval rights, which are not subject to over-ride. The approval rights not subject to over-ride relate to: -- issuance of securities that are senior to or on parity with the Series A Preferred; -- amendments to the Company's by-laws that materially change the rights of members of the Investor Group or Qualified Purchaser Transferees or the Company's shareholders generally, or to the Charter or Articles if the amendment would adversely impact Appaloosa's rights or investment; and -- other than the annual 4.0% dividends on the Series B Preferred, declaration and payment of dividends on stock that ranks junior to or on parity with the Series A Preferred. (f) Appaloosa will select three members of the Board of Directors, and the Creditors Committee will select the other three. One director will be the chief executive officer, one director will be the new Executive Chairman, one director will be selected by the Standby Purchasers other than Appaloosa. The initial Executive Chairman of the Board will be selected by a selection committee comprised of one Appaloosa representative and one representative of the Standby Purchasers. The Executive Chairman will be approved by a majority vote of the Selection Committee. Any successor Executive Chairman will be selected by the Nominating and Governance Committee of the Board, subject to the approval of Appaloosa. (g) All of Appaloosa's approval rights will continue until the earlier of (i) the date on which Appaloosa ceases to own Series A Preferred Shares having an aggregate liquidation preference of at least $125,000,000, and (ii) the third anniversary of Appaloosa's investment. (h) Appaloosa proposes to include an additional closing condition to the effect that there will not have occurred any material strike or labor stoppage or slowdown at Dana Corp., General Motors, Chrysler, Ford Motor Company or any of their respective subsidiaries. A full-text copy of Appaloosa's September 21 Letter is available for free at http://ResearchArchives.com/t/s?23e0 Aside from the Investment Letter, Appaloosa also delivered to the Debtors and the Creditors Committee drafts of: (1) an Amended Joint Plan of Reorganization, a copy of which is available for free at http://ResearchArchives.com/t/s?23e1 (2) a Plan Support Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e2 (3) an Investment Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e3 (4) a Shareholders Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e4 (5) Articles of Designation with Respect to Preferred Stock, a copy of which is available for free at: http://ResearchArchives.com/t/s?23e5 (6) a Series A Registration Rights Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e6 (7) a Series B Registration Rights Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e6 (8) a Market Maker Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e7 About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions, and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed $7,900,000,000 in total assets and $6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. The Court has set a hearing on Oct. 23, 2007, to consider the adequacy of the Disclosure Statement explaining the Debtors' Plan. (Dana Corporation Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Eyes Entry of Mexican Unit Restructuring Process ----------------------------------------------------------- In July 2006, Spicer S.A., de C.V., a Mexican joint venture between Dana Corp. and DESC S.A. de C.V., was dissolved, and the Debtors acquired 100% ownership of certain of the subsidiaries of Spicer Mexico. Since that acquisition, the Debtors determined, after consultation with their U.S. and Mexican advisors, to take several steps to optimize the tax and operational efficiencies of their operations in Mexico, which will involve converting certain of their operations into maquiladoras: (a) Dana Heavy Axle Mexico S.A. de C.V. operations in Monterrey, Mexico will be contributed into a non-debtor subsidiary known as Dana Ejes S.A. de C.V., which will subsequently be converted into a maquiladora; (b) A maquiladora will be created out of the current operations of Spicer Group members Ejes Tractivos S.A. de C.V., Autometales S.A. de C.V., and Dana de Mexico Corporacion S. de R.L. de C.V.; (c) Nondebtor Tecnologia de Mocion Controlada S.A. de C.V. will expand its existing maquiladora operations to include a new maquiladora to support the sealing business; (d) Dana will acquire additional equipment to expand the operations at DHAM's Toluca facility; and (e) Dana's ownership of certain Mexican Dana Companies will be transferred to Debtor Spicer Heavy Axle Holdings, Inc., which will be renamed Dana Global Products, Inc. A maquiladora, according to Corinne Ball, Esq., at Jones Day, in New York, explains, is a Mexican corporation that operates under a program developed by the Mexican Secretariat of Commerce and Industrial Development that permits the Mexican corporation to: -- temporarily receive component parts and raw materials from a foreign company without being charged any import duties; -- convert the component parts and raw materials into finished goods; -- ship the finished goods to, or on behalf of, the foreign company; and -- charge the foreign company for the value added in Mexico plus a relatively modest government mandated mark-up. After these transactions, the inventory, finished goods and equipment for the Sealing Maquila will be owned by Debtor Dana Global Products, Inc., which will also conduct all the future purchasing of goods for the Sealing Maquila. In addition, as part of the Debtors' strategy to expand low cost manufacturing operations, the Toluca Facility requires additional equipment to be able to expand production. Dana Heavy Axle Mexico does not currently have the cash to purchase additional equipment for the Toluca Facility. Instead, the Debtors will transfer approximately $2,500,000 in equipment from their Glasgow, Kentucky, plant to the Toluca Facility, and the Debtors will purchase approximately $11,000,000 of equipment from third party vendors for use at the Toluca Facility. Both the transferred and purchased equipment will be placed in the name of Dana Holdings Mexico as an investment. Dana Heavy Axle Mexico will purchase the equipment from Dana Holdings Mexico by issuing a $13,500,000 note in return for the equipment. Because the Debtors will indirectly own Dana Holdings Mexico through DGPI, they will benefit from the note held by Dana Holding Mexico and will thus be receiving equivalent value on their investment in Dana Holdings Mexico. Ms. Ball tells the Court that in connection with the Debtors' emergence from bankruptcy, they are planning to rationalize the holding structure of their international affiliates. For Mexican tax reasons, each of the maquiladoras to be formed must be owned by a stable U.S. entity that can conduct the purchasing of goods required to operate the maquiladoras on a going forward basis -- that entity will be DGPI. The Debtors will transfer their 100% ownership interest in Dana Holdings Mexico and DHAM and almost 100% ownership interest in Tecnologia de Mocion Controlada to DGPI in return for additional stock to be issued by DGPI. Because the Debtors own 100% of the stock of DGPI, they will receive reasonably equivalent value for the transfer through the increase in value of DGPI by the value of the shares of Dana Holdings Mexico, DHAM and TMC that are to be transferred to DGPI. The Debtors' Disclosure Statement explaining their Plan of Reorganization provides that a critical part of their restructuring plan has been to optimize their manufacturing footprint so as to minimize costs, Ms. Ball notes. A critical focus of these efforts is the movement to low cost manufacturing operations, a significant block of which are in Mexico. The various transactions involved in the Mexican Affiliate Restructuring will allow the Debtors to increase their production of low-cost goods in Mexico and provide a tax- efficient structure for the production of those goods. The Debtors project that the Mexican Affiliate Restructuring will: -- generate approximately $4,700,000 in annual tax savings over the current structure; -- provide more than $12,000,000 in additional U.S. income annually; and -- facilitate labor savings for the Debtors as part of their manufacturing footprint optimization. Accordingly, the Debtors seek the U.S. Court Bankruptcy Court for the Southern District of New York's authority to enter into the Mexican Affiliate Restructuring process. The Debtors also seek a waiver of any stay of the effectiveness of the order approving the Restructuring Motion. While the go-live date for the Mexican maquiladoras is Nov. 1, 2007, the purchases of the assets and other activities described in the step transactions must occur before that date, and certain of those purchases can only occur after the transfer of shares in DHAM, Dana Holdings Mexico and TMC are made to Debtor DGPI, Ms. Ball says. If the various asset sales and share transfers cannot commence until the anticipated expiration of the automatic stay on October 29, 2007, the go-live date on the maquiladoras will have to be delayed by an additional month because it will be difficult to make the necessary accounting changes in the middle of a month. Delaying the project will cost the Debtors approximately $375,000 in lost tax savings and decrease income in the U.S. by approximately $1,000,000, Ms. Ball adds. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions, and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed $7,900,000,000 in total assets and $6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. The Court has set a hearing on Oct. 23, 2007, to consider the adequacy of the Disclosure Statement explaining the Debtors' Plan. (Dana Corporation Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). DISTACOM HONG KONG: Liquidator to Give Wind-Up Report on Oct. 29 ---------------------------------------------------------------- Distacom Hong Kong Limited will hold its final general meeting on October 29, 2007, at 10:00 a.m., at the 7th Floor of Alexandra House, 18 Chater Road, in Central, Hong Kong. At the meeting, Philip Brendan Gilligan, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. EARNSON DEVELOPMENT: Final General Meeting Set for Oct. 31 ---------------------------------------------------------- Earnson Development Limited will hold a final general meeting on October 31, 2007, at 10:30 a.m., at Room 13A of Tak Lee Commercial Building, 113-117 Wanchai Road, Hong Kong. At the meeting, Ng Kam Chiu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FIAT SPA: CEO Optimistic About Bus Production Deal in China ----------------------------------------------------------- Fiat S.p.A. Chief Executive Officer Sergio Marchionne sees a "good chance" for clinching a deal with Chinese carmaker SAIC on production of buses in China, Reuters reported. "I believe there is a good chance to clinch the accord," Mr. Marchionne was quoted as saying. In an interview with the company's CEO at the sideline of a university event, the news agency gathered that the Italian auto maker's truck division Iveco was studying broadening production to buses with SAIC. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, China Spain, among others. * * * As reported in the TCR-Europe on Aug. 24, 2007, Moody's Investors Service upgraded to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook on all long-term ratings was maintained. The short term Not Prime rating remains unchanged. GREAT YIELD: Members to Meet on October 29 ------------------------------------------ The members of Great Yield Technologies Limited will hold an extraordinary general meeting on October 29, 200, to pass a resolution that liquidates the company's business due to its inability to pay its debts. TOYOTA MOTOR: Liquidators Quit Post ----------------------------------- Lai Kar Yan (Derek) and Darach E. Haughey quit as liquidators of Toyota Motor (China) Limited on September 21, 2007. The former Liquidators can be reached at: Lai Kar Yan (Derek) Darach E. Haughey One Pacific Place, 32nd Floor 88 Queensway Hong Kong ========= I N D I A ========= BANK OF BARODA: Signs Definitive Pacts for Pioneer Global JV ------------------------------------------------------------ Bank of Baroda and Italy's Pioneer Global Asset Management SpA signed on Oct. 5, 2007, a definitive agreement to launch a joint venture for asset management business. The bank and Pioneer signed in February this year the memorandum of understanding for the joint venture, which will be named Baroda Pioneer Asset Management Company Ltd. According to a report by the Troubled Company Reporter-Asia Pacific on July 17, 2007, the bank decided to form the JV because mutual funds have become a major destination for investment of late and they chose Pioneer because the foray would need "specialized expertise." Headquartered in Vadodara, India, Bank of Baroda -- http://www.bankofbaroda.com/-- is a provider of banking services in India. The company's solutions includes personal banking, which includes deposits, retail loans, credit cards, debit card, lockers and other services; business banking, which comprises working capital, term finance and traders loans; corporate banking, which includes cash management and remittances, multi-city cheques, appraisals and merchant banking; international business, which includes import finance, international treasury, export finance, correspondent banking and other solutions; treasury banking, which comprises domestic operations and forex operations, and rural banking, which includes retail loan, small businesses and small scale industries. Bank of Baroda has branches in the Bahamas, Belgium, the Fiji Islands, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, the United Kingdom, and the United States of America. * * * As reported by the Troubled Company Reporter-Asia Pacific on July 11, 2007, Standard & Poor's assigned its 'BB' issue rating to Bank of Baroda's US$300 million upper Tier-II subordinated notes due in 2022. Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of Baroda's proposed unsecured subordinated Upper Tier 2 notes (expected size: US$250 million plus greenshoe option), as well as the hybrid Tier 1 debt to be issued under its USD1.5 billion medium-term notes programme. Fitch said the outlook on all ratings is stable. DECCAN AVIATION: Grants 451,000 Options to Employees & Director --------------------------------------------------------------- Deccan Aviation Ltd disclosed in an Oct. 1 filing with the Bombay Stock Exchange that the carrier's ESOP Committee has granted 451,000 options to its employees and an executive director. The options were granted on these terms: a. The options granted be vested in tranches over a period of four years from the time of grant. b. The options can be exercised within a period of five years from the date they vest. c. The exercise price at which the options are being granted is INR65 per option. d. The number of options vesting as a percentage of the options granted is in the ratio of 20/20/30/30. e. Other terms as per ESOP Plan 2006. f. Fringe Benefit Tax as may be applicable and the company policy on it. Bangalore, India-based Deccan Aviation Limited -- http://www.deccanair.com/-- is a charter aviation company in the private sector. Deccan Aviation, which runs budget airline Air Deccan, provides company charters, tourism, medical evacuation, off-shore logistics and a host of other services. The Troubled Company Reporter-Asia Pacific reported on Oct. 5, 2007, that Deccan Aviation has a stockholder's equity deficit of US$2.83 million. PRA INTERNATIONAL: Moody's Assigns B3 Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service assigned a B3 Corporate Family Rating to PRA International. Moody's also assigned a B1 rating to the "first-out" portion of the proposed senior secured credit facility, including the revolver, and a B3 rating to the "last-out" portion of the credit facility. The outlook for the ratings is stable. This is the first time Moody's has assigned ratings to PRA. The ratings are principally constrained by: (1) the significant levels of leverage and resulting weak credit metrics; (2) the potential for near-term operating volatility as a result of the company's on-going turnaround as well as cancellation risk inherent in the global contract research organization industry; (3) the limited track record of free cash flow generation and (4) the company's small scale and relatively modest competitive position against several much larger companies. The ratings are also constrained by Moody's concerns about the company's liquidity profile as well as the expectation for limited recoverability of assets in a bankruptcy scenario. Despite the above concerns, Moody's acknowledges several positive trends at the company. These include: (1) a new management team with solid industry and turnaround experience; (2) good opportunities for growth and margin expansion upon successful execution of the strategy; (3) positive industry growth trends and (4) early signs of positive momentum in the company's turnaround. All ratings are subject to review of final documentation. Ratings assigned: PRA International: -- US$30 million senior secured revolving credit facility due 2013; B1, LGD3, 35%; -- US$55 million senior secured first-out term loan due 2014; B1, LGD3, 35%; -- US$85 million senior secured last-out term loan due 2014; B3, LGD5, 71%; -- Corporate Family Rating: B3; -- Probability of Default Rating: B2; Pharmaceutical Research Associates Group, BV: -- US$10 million senior secured revolving credit facility due 2013; B1, LGD3, 35% -- US$115 million senior secured first-out term loan due 2014; B1, LGD3, 35% -- The outlook for the ratings is stable. Headquartered in Reston, Virginia, PRA International -- http://www.praintl.com/-- is a global contract research organization that assists pharmaceutical and biotechnology companies in developing drug compounds, biologics, and drug delivery devices and gaining necessary regulatory approvals. Clinical trials and related services are conducted from offices located all over the world including Argentina, Australia, Belgium, Poland, India, Taiwan, among others. The company generated gross revenues of approximately US$382 million (including US$43 million of reimbursed expenses) for the twelve months ended June 30, 2007. PRA INTERNATIONAL: S&P Assigns B Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to pharmaceutical contract research organization PRA International Inc. The outlook is stable. At the same time, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to PRA's secured financing. The company's proposed first-out credit facilities are rated 'BB-', with a recovery rating of '1', indicating the expectations for very high (90%-100%) recovery in the event of a payment default. PRA is the borrower for the first-out credit facilities, consisting of a US$30 million revolving credit facility and a US$55 million term loan. Pharmaceutical Research Associates Group BV is the borrower for the other first-out credit facilities, consisting of a US$10 million euro- denominated revolving credit facility, a US$60 million euro- denominated term loan, and a US$55 million term loan. S&P also assigned its 'CCC+' bank loan rating to the company's US$85 million last-out term loan, for which PRA is the borrower. The recovery rating of '6' indicates the expectation for negligible (0%-10%) recovery in the event of a payment default. At the same time, S&P assigned its 'CCC+' rating to PRA's US$170 million senior subordinated notes. The proceeds of the term loans and notes are being used in conjunction with approximately US$390 million of common equity to finance the buyout of the company by sponsor Genstar Capital LLC. The buyout values the company at about US$750 million, which represents a multiple of about 13x pro forma adjusted EBITDA from the past 12 months. "The rating reflects PRA's highly leveraged capital structure, risks related to its continuing turnaround efforts, a somewhat concentrated customer base, and the potential for earnings volatility," said Standard & Poor's credit analyst Alain Pelanne. "These factors are offset partially by PRA's recently improving results, its global footprint and therapeutic expertise, and trends that support strong growth for the industry." Headquartered in Reston, Virginia, PRA International -- http://www.praintl.com/-- is a global contract research organization that assists pharmaceutical and biotechnology companies in developing drug compounds, biologics, and drug delivery devices and gaining necessary regulatory approvals. Clinical trials and related services are conducted from offices located all over the world including Argentina, Australia, Belgium, Poland, India, Taiwan, among others. The company generated gross revenues of approximately US$382 million (including US$43 million of reimbursed expenses) for the twelve months ended June 30, 2007. TATA STEEL: Members OK Capital Increase to INR8000,00,00,000 ------------------------------------------------------------ Tata Steel Ltd said in an Oct. 5, 2007 filing with the Bombay Stock Exchange that its members, at their 100th annual general meeting, agreed to the increase in the company's authorized share capital. Specifically, the members accorded to the increase from the current capital of INR2000,00,00,000 (divided into 175,00,00,000 ordinary shares of INR10 each and 2,50,00,000 cumulative redeemable preference shares of INR100 each) to INR8000,00,00,000 (divided into 175,00,00,000 ordinary shares of INR10 each, 2,50,00,000 cumulative redeemable preference shares of INR100 each and 60,00,00,000 cumulative redeemable preference shares of INR100 each) by creation of 60,00,00,000 cumulative redeemable preference shares of INR100 each. Among others, the members also agreed to authorize to the company's board of directors to create, issue, offer and allot, ordinary shares, convertible bonds and/or other securities provided that the total amount raised through the issuance of the securities does not exceed US$500 million or its equivalent in one or more currencies, including premium if any, subject to the necessary provisions and approvals. The members reappointed Deloitte Haskins & Sells, as auditors and authorized the firm to examine and audit the accounts of the company at Jamshedpur, Mines, Collieries, Bearing Division, Tubes Division, Ferro Alloys & Manganese Division, Wire Division and other Divisions for the financial year 2007-08. Deloitte & Touche, Singapore, were also reappointed as the company's branch auditors to examine and audit the books of account of the branch office in Singapore for the financial year 2007-08. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. In April 2007, the company completed the acquisition of Corus Group plc. Corus' main steelmaking operations are located in the United Kingdom and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the United Kingdom at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd, and changed the outlook to negative from stable. TATA STEEL: Managing Director of Corporate Services Resigns ----------------------------------------------------------- Tata Steel Limited said in a regulatory filing that A. N. Singh Dy, Managing Director (Corporate Services), resigned from the company's board of directors. According to the company, the managing director quit his post because he taking up an assignment as Managing Trustee of Sir Dorabjee Tata Trust and its associated Trusts. The company did not disclose if it has found a replacement for Mr. Dy. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. In April 2007, the company completed the acquisition of Corus Group plc. Corus' main steelmaking operations are located in the United Kingdom and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the United Kingdom at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. As previously reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd, and changed the outlook to negative from stable. ================= I N D O N E S I A ================= AVNET INC: Inks US$600 Five-Year Senior Unsec. Credit Facility ------------------------------------------------------------ Avnet Inc. entered into a five-year senior unsecured credit facility. The facility provides for extensions of credits in the aggregate amount of up to US$500 million with a US$100 million accordion feature allowing Avnet to increase its borrowing capacity to up to US$600 million, subject to obtaining commitments for the incremental capacity from existing or new lenders. The term of the facility expires on Sept. 26, 2012, which may be extended at Avnet's election for up to two additional one-year terms, subject to Avnet's satisfaction of certain conditions. The facility effectively supersedes Avnet's existing credit facility dated as of Oct. 13, 2005. Bank of America N.A. will act as administrative agent, swing line lender and letter of credit issuer; Banc of America Securities LLC acted as joint lead arranger and sole book manager; ABN AMRO Incorporated acted as Joint Lead Arranger, and Credit Suisse First Boston, the Bank of Nova Scotia and BNP Paribas acted as co-documentation agents. A total of 18 lenders participated in the facility. "We appreciate the continued commitment from our long-term banking partners and are pleased to welcome new lenders into our bank group," Raymond Sadowski, Avnet's chief financial officer, stated. "The facility not only offers better terms and conditions than the facility it supersedes but also extends those terms an additional two years. There was significant demand for participation in the facility and this strong sponsorship demonstrates confidence by the financial community in Avnet's future and its solid financial condition." About Avnet Inc Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * The Troubled Company Reporter on March 6, 2007, reported that Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. BANK CENTRAL ASIA: Vice President Resigns Effective Jan. 1, 2008 ---------------------------------------------------------------- PT Bank Central Asia disclosed that its Vice President Aswin Wirjadi has resigned from his current position, Reuters reports. Reuters, without stating the reason why Mr. Wirjadi will quit his post, said that the resignation will be effective January 1, 2008. The bank made the disclosure in a letter to the Jakarta stock exchange, the report adds. Headquartered in Jakarta, Indonesia, PT Bank Central Asia Tbk -- http://www.klikbca.com/-- offers individual and business products and services. The bank's individual services consist of savings accounts, home loans and car loans, remittance, collection and safe deposit facilities. The bank's business services consist of working capital loans, investment loans and bank guarantee for small and medium-sized enterprises. In addition, it provides export import facilities such as letters of credit, negotiation and discounting. The bank's subsidiaries include PT BCA Finance, BCA Finance Limited and BCA Remittance Limited. It has 772 branches in Indonesia, Singapore and New York, 42,958 EDCs and operates 4,425 ATMs. The bank serves 6.6 million accounts throughout Indonesia. * * * The Troubled Company Reporter-Asia Pacific reported on Aug 15, 2007, that Fitch Ratings affirmed Bank Central's * Long-term Foreign Currency Issuer Default Rating at 'BB-' with a Positive Outlook; and * Short-term Foreign Currency IDR at 'B', among others. On Aug 02, 2007, Moody's Investors Service has placed the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Central Asia on review for possible upgrade. The detailed ratings are: * Ba3 issuer and B2 foreign currency long-term deposit ratings were placed on review for possible upgrade. * 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 NEGARA: Ups Capital Participation in PT BNI Multifinance ------------------------------------------------------------- PT Bank Negara Indonesia (Persero) Tbk has raised its capital participation in PT BNI Multifinance by converting its IDR188.32 billion loan into capital, Reuters reports. According to the report, Firman Wibowo, BNI deputy director said that with the loan-to-capital conversion, BNIMF's paid-up capital rose to IDR408.36 billion from IDR220 billion previously with 99.98% of its shares held by BNI and 0.02% by BNIMF's employees cooperative. The bank also has capital participation in PT BNI Securities (99.85 percent) and PT BNI Life Insurance (59.78 percent), the report adds. Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter-Asia Pacific on April 20, 2007, Standard & Poor's Ratings Services raised PT Bank Negara Indonesia (Persero) Tbk's long-term counterparty credit ratings to 'BB-' from 'B+'. The outlook is stable. At the same time, the Bank Fundamental Strength Rating of the bank remains unchanged at 'D'. DAVOMAS ABADI: Lehman Brothers Buys 1,226,871,942 Shares -------------------------------------------------------- Lehman Brothers Commercial Corporation Asia Limited has bought 1,226,871,942 shares of PT Davomas Abadi Tbk, Reuters reports. According to the report, the shares were brought at IDR200 per share, which amounted to IDR245,374,388,400. Headquartered in Jakarta, Indonesia, PT Davomas Abadi Tbk processes cocoa beans into cocoa butter and cocoa powder. The Troubled Company Reporter-Asia Pacific reported on Sept. 4, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' rating on Indonesia's PT Davomas Abadi Tbk. The outlook is stable. At the same time, it affirmed its 'B+' rating on the US$150 million principal amount of the 11% guaranteed senior secured notes due in 2011. The company proposes to increase this issue to a total of US$238 million through US$88 million long-term senior secured bonds to be issued by Davomas International Finance Co. Ltd., a special purpose financing vehicle wholly owned by Davomas. On Dec. 15, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' rating onIndonesia's PT Davomas Abadi Tbk. The outlook is stable. At the same time, it assigned its 'B+' rating on the proposed US$25 million long-term senior secured bonds to be issued by Davomas International Finance Co. Ltd., a special purpose financing vehicle wholly owned by Davomas. Moody's Investors Service affirmed PT Davomas Abadi Tbk's stable 'B2' corporate family rating and the 'B2' foreign currency rating of Davomas International Finance Company Pte Limited's IDR1.13-trillion senior secured notes due in 2011. Moody's affirmed the rating after the Company had completed its notes issuances and subsequent repayments of its outstanding debts. FOSTER WHEELER: Bags EPC Pact for ExxonMobil's Chemical Project --------------------------------------------------------------- Foster Wheeler Ltd.'s subsidiaries in its Global Engineering and Construction Group and its joint venture partner have been awarded contracts by ExxonMobil Asia Pacific Pte. Ltd. for project co-ordination and services and the engineering, procurement and construction (EPC) of a number of downstream units and associated plant infrastructure for a second petrochemical complex in Singapore. As disclosed by ExxonMobil on Sept. 5, 2007, this project will proceed with construction. The Foster Wheeler contract value for this project was not disclosed and will be included in the company's third-quarter 2007 bookings. The Foster Wheeler-led joint venture has completed the study and front-end engineering design for substantially the entire non- licensed technology portion of this complex, which will produce ethylene, propylene and their derivatives, mainly for the regional market. The Foster Wheeler-led joint venture will now engineer, procure and construct the modification and expansion of ExxonMobil's existing aromatics and oxo-alcohol production facilities, and expansion and modification of the existing product storage and utilities, among others. "We are delighted that, with the award of the EPC phase of this huge project, we have the opportunity to continue the excellent working relationship we have built with the ExxonMobil team during the front-end phase," said Umberto Della Sala, president & chief operating officer of Foster Wheeler Ltd. "We are committed to leveraging our global strength to deliver what will be the largest single project ever undertaken by ExxonMobil Chemical and also the largest project ever executed by Foster Wheeler for ExxonMobil throughout our long and successful history with this client." 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. PARKER DRILLING: Improved Performance Spurs S&P to Lift Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services has raised its corporate credit rating on oil and gas contract driller Parker Drilling Co. to 'B+' from 'B'. At the same time, S&P has raised the issue ratings on Parker's senior and convertible notes to 'B+' from 'B-'. These consist of its US$125 million 2.125% convertible notes due 2012, and US$225 million 9.625% senior notes due 2013. The outlook is stable. As of June 30, 2007, Houston, Texas- based Parker had about US$338 million in debt, adjusted for operating leases. "The upgrade is based on improved operating performance and significantly improved credit protection measures," said S&P's credit analyst Aniki Saha-Yannopoulos. Further improvement in operating performance should result from Parker's recent capital expenditure program and favorable industry conditions. Also, multiple international contracts have increased contract visibility through 2010 in certain areas of the company's business. S&P has raised the ratings on the notes by one additional notch because the amount of priority debt in the form of the company's unrated credit facility will not exceed 15% of the book value of the company's assets -- S&P's current guideline for lowering an unsecured issue rating by one notch relative to the corporate credit rating. The ratings on Parker reflect its participation in a highly competitive, cyclical industry; its active capital spending program; and operations in international markets and areas that can expose it to geopolitical risks. Business segment and geographic diversity partially mitigate these weaknesses. About Parker Drilling Headquartered in Houston, Texas, Parker Drilling Company -- http://www.parkerdrilling.com/-- provides contract drilling and drilling-related services worldwide. The company has rigs located in Indonesia, New Zealand, Colombia and Mexico, among others. ========= J A P A N ========= DELPHI CORP: U.S. Trustee Adds SABIC to Creditors Committee ----------------------------------------------------------- Diana G. Adams, the U.S. Trustee for Region 2, has appointed SABIC Innovative Plastics as a member of the Official Committee of Unsecured Creditors of Delphi Corp. and its debtor- affiliates. Electronic Data Systems Corp. and General Electric Company are no longer Committee members. The Creditors Committee now consists of: 1. SABIC Innovative Plastics 9930 Kincey Avenue Huntersville, North Carolina Attention: Valerie Venable Tel: (704) 992-5075 2. Tyco Electronics Corporation 60 Columbia Road Morristown, New Jersey Attention: MaryAnn Brereton Tel: (973) 656-8365 3. IUE-CWA 2360 W. Dorothy Lane, Suite 201 Dayton, Ohio Attention: Lauren Aspland Tel: (937) 294-7813 4. Capital Research and Management Company 11100 Santa Monica Blvd., 15th Floor Los Angeles, California Attention: Michelle Robson Tel: (310) 996-6140 5. Wilmington Trust Company, as Indenture Trustee Rodney Square North, 1100 North Market Street Wilmington, Delaware Attention: Steven M. Cimalore Tel: (302) 636-6058 6. Freescale Semiconductor, Inc. 6501 William Cannon Drive West, MD: OE16 Austin, Texas Attention: Richard Lee Chambers, III Tel: (512) 895-6357 About Delphi Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 87 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). FORD MOTOR: Overall September 2007 Vehicle Sales Decline by 21% --------------------------------------------------------------- Demand continues to grow for Ford Motor Company's all-new and redesigned crossover vehicles, even as overall sales declined in September 2007. Total September sales were 189,863, down 21% compared with a year ago. Sales to daily rental companies were down 62% and sales to individual retail customers were down 15%. Ford, Lincoln and Mercury's all-new and redesigned crossover utility sales were up 96% in September and up 52% year-to-date - ? the largest increase of any major manufacturer. "We continue to be encouraged by customers' strong response to our new products, which we're launching with high quality," Mark Fields, president, The Americas, said. "Demand for our new crossovers continues to grow and contributes to our efforts to stabilize U.S. retail market share." In September, Ford Edge sales were 11,632 and Lincoln MKX sales were 3,805. Both new crossovers achieved their highest retail sales month to date. The Edge and Lincoln MKX were introduced in December 2006 and already are among the best sellers in the mid-size and premium CUV segments. Sales for the redesigned 2008 model Ford Escape and Mercury Mariner crossovers were higher in September. Escape sales were 11,132, up 10%, and Mariner sales were 2,699, up 4%. The Lincoln brand posted its 12th month in a row of higher retail sales. In September, total Lincoln sales were up 33% (retail up 40%). Year-to-date, total Lincoln sales were up 15% (retail up 17%). Lincoln's rebound reflects the new Lincoln MKX crossover, the new Lincoln MKZ sedan (up 25% in September) and the redesigned Navigator (up 38% in September). "We're building a strong foundation for future growth at Lincoln," Mr. Fields said. "This is the early phase of an aggressive plan to restore Lincoln as America's choice for luxury vehicles." Land Rover's September sales were 4,190, up 21%, reflecting the addition of the all-new LR2 crossover. Land Rover sales were up 8% year-to-date. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on July 30, 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. In June 2007, S&P raised the Issue Rating on Ford's senior secured credit facilities to B+ from B. GAP INC: Distributing US$0.08 Per Share Quarterly Dividend ---------------------------------------------------------- The Board of Directors of Gap Inc. voted a quarterly dividend of US$0.08 per share payable on Oct. 30, 2007, to shareholders of record at the close of business on Oct. 16, 2007. About Gap Inc. Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic inSoutheast Asia and the Middle East. * * * The company continues to carry Fitch's BB+ Issuer Default Rating. The company also carries Standard & Poor's Ratings Services' BB+ corporate credit rating. INTERNATIONAL RECTIFIER: Alex Lidow Steps Down as CEO & Director ---------------------------------------------------------------- International Rectifier Corporation announced the resignation of Dr. Alex Lidow as chief executive officer and as a director, effective immediately. Don Dancer continues as International Rectifier's acting chief executive officer. Mr. Dancer has served in that position since Aug. 28, 2007. The board of directors has engaged Korn/Ferry International (NYSE:KFY) to conduct a search for Dr. Lidow's permanent replacement. The search is being led by Dr. James Plummer, Chairman of the Corporate Governance and Nominating Committee. Don Dancer, International Rectifier's acting chief executive officer, said, "We want to thank Alex for his contributions to the company. During his tenure, he led the pioneering power MOSFET technology, which drove the adoption of power management across broader end use applications. His focus on power management helped to solidify International Rectifier as a leader in the industry. Alex has also encouraged the next generation of technology professionals who will continue to create and provide our customers with innovative products." "I have appreciated the opportunity to serve International Rectifier as a Director and CEO the last 12 years," said Dr. Lidow. "International Rectifier and the power management industry have a bright future, and I believe the company will continue to deliver enormous value to the companies it serves and end-users by helping to reduce global energy consumption and improving energy efficiency." Dr. Lidow will receive accrued salary, bonus and vacation through the date of his departure. He will be entitled to exercise his vested options for an additional eighteen months, or 90 days following the date on which the company becomes current in its SEC financial reports, whichever is later. The company has agreed to vest all of Dr. Lidow's options that had not already vested. International Rectifier Corporation -- http://www.irf.com/-- (NYSE:IRF) is a world leader in power management technology. IR's analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Leading manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. The company has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2007, Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on International Rectifier Corp. remains on CreditWatch with negative implications. INTERNATIONAL RECTIFIER: Discloses Key Internal Initiatives ----------------------------------------------------------- International Rectifier Corporation announced these initiatives: -- Shifted reporting of the internal audit function to the Audit Committee of the board of directors and the general counsel. -- Appointed a lead independent director. -- Appointed a Special Committee of the board to advise and support the acting chief executive officer. -- Evaluated independent third party consulting firms to document and assess the design effectiveness of processes and controls. -- Revamped the company's hotline process and placed it under the internal audit function. -- Changed reporting relationships at the company's Japan subsidiary to improve oversight of the subsidiary. -- Added interim processes to help assure adherence to proper revenue recognition policies at the Japan subsidiary. The company expects to continue to assess and improve its internal controls and corporate governance environment. Jack Vance, International Rectifier's lead independent director, said, "During this period of transition for the company, the Audit Committee and I are working diligently to bring the internal accounting investigation to a resolution. We are also taking steps to implement meaningful changes to our internal controls and governance policies. Going forward, we will continue to work with Don Dancer, International Rectifier's acting chief executive officer, as well as our executive leadership team and our employees to help ensure that our company continues to create the products and deliver the level of service our customers have come to expect of International Rectifier." Previously, the Board of Directors designated a Special Committee, comprised of independent directors of the company, to advise and support the company's acting chief executive officer. The committee is chaired by Dr. Vance, former senior partner of McKinsey & Co. The other members include: * Mr. Robert Attiyeh, former chief financial officer of AMGEN Inc.; * Dr. Philip M. Neches, former chief technology officer of Teradata Corporation, NCR Corporation, and the AT&T Multimedia Products and Systems Group; * Dr. James Plummer, Dean of Engineering at Stanford University; and * Dr. Rochus Vogt, retired provost of the California Institute of Technology. International Rectifier Corporation -- http://www.irf.com/-- (NYSE:IRF) is a world leader in power management technology. IR's analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Leading manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. The company has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2007, Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on International Rectifier Corp. remains on CreditWatch with negative implications. LIBERTY GLOBAL: Hires Bob Leighton as Senior VP for Programming --------------------------------------------------------------- Liberty Global Inc. has appointed Bob Leighton as its Senior Vice President, Programming. In this new role, Mr. Leighton will be responsible for coordinating and leveraging Liberty Global's programming activities worldwide, including both channel carriage and channel venture activities. Mr. Leighton is a 28-year veteran of the television industry. Most recently, he was a consultant on programming issues to Liberty Global, as well as Comcast Cable. Prior to this, Mr. Leighton was EVP, Programming for Starz Encore Entertainment for 7 years. At Starz, Mr. Leighton was responsible for all programming functions for 13 channels, including film acquisition, original program development, production, on-air promotion, and technical operations. Mr. Leighton earlier was at HBO for 17 years. From 1991, he was based in Eastern Europe for HBO and oversaw the earliest development, launch and operation of various pay and basic cable channels throughout the region. Previous assignments at HBO during the 1980's in New York included Director of Programming, Cinemax and Director of Audience Research. Mr. Leighton began his television career at Young & Rubicam where he bought advertising time on both broadcast networks and pioneer ad supported cable channels. "Bob Leighton has been at the forefront of the expansion of television programming into new markets and new media his entire career," said Mike Fries, President and CEO, Liberty Global, Inc. "Particularly given revolutionary changes now taking place in video delivery, such as on-demand, we look forward to his experience and leadership as we continue to leverage content opportunities across our global footprint of 23 million subscribers." Mr. Leighton holds a B.A. from Harvard College and an M.B.A. from Columbia University. About Liberty Global Headquartered in Englewood, Colorado, Liberty Global Inc. -- http://www.www.lgi.com/-- is an international broadband communications provider of video, voice and Internet access services, with consolidated broadband operations in 19 countries, primarily in Europe, Japan and Chile. Through its indirect wholly owned subsidiary UGC Europe, Inc., and its wholly owned subsidiaries UPC Holding B.V. and Liberty Global Switzerland, Inc., collectively Europe Broadband, Liberty Global provides video, voice and Internet access services in 13 European countries. Through Liberty Global's indirect controlling ownership interest in Jupiter Telecommunications Co., Ltd., the Company provides video, voice and Internet access services in Japan. Through the Company's indirect 80%-owned subsidiary VTR GlobalCom, S.A., it provides video, voice and Internet access services in Chile. * * * As reported on April 2, Standard & Poor's Ratings Services revised its outlook on international cable TV and broadband provider Liberty Global Inc. to positive from stable. The outlooks on related entities in the LGI group, including UPC Broadband Holding and VTR GlobalCom S.A., were also revised to positive from stable. The ratings on LGI and its related entities, including the 'B' long-term corporate credit rating on LGI, were affirmed. MICRON TECH: Posts US$320 Million Net Loss in Year Ended Aug. 30 ---------------------------------------------------------------- Micron Technology Inc. reported results of operations for its 2007 fiscal year and fourth quarter, which ended Aug. 30, 2007. For the fourth quarter of fiscal 2007, the company incurred a net loss of US$158 million on net sales of US$1.4 billion, which compares to a net loss of US$225 million on net sales of US$1.3 billion for the third quarter. For the 2007 fiscal year, the company incurred a net loss of US$320 million on net sales of US$5.7 billion, which compares to net income of US$408 million on net sales of US$5.3 billion for the prior fiscal year. The company's fourth quarter and fiscal year 2007 results were heavily influenced by industry supply/demand dynamics that depressed average selling prices for memory products. The company's net sales for the fourth quarter of fiscal 2007 increased 11 percent compared to the third quarter primarily as a result of higher megabit sales of memory products. Compared to the prior quarter, fourth quarter megabit sales increased approximately 25 percent and 60 percent for DRAM and NAND Flash memory products, respectively, while average selling prices for both DRAM and NAND Flash memory products decreased approximately 15 percent. Sales of NAND Flash include sales from the company's consolidated NAND Flash manufacturing joint venture (IM Flash) to the company's joint venture partner at long-term negotiated prices approximating cost. The results for the fourth quarter include a charge of US$20 million to write down the carrying value of work in process and finished goods inventories of memory products to their estimated fair market values. Sales of CMOS image sensors in the fourth quarter of fiscal 2007 increased approximately five percent compared to the third quarter primarily as a result of higher average selling prices reflecting the company's shift in mix to higher megapixel products. The company's manufacturing operations achieved noticeable scale improvements in 2007, with wafer production increasing in excess of 20 percent over fiscal 2006. The company's cost of goods sold per megabit decreased in the fourth quarter of fiscal 2007 compared to the third quarter by approximately 10 percent and 40 percent for DRAM and NAND Flash memory products, respectively. These cost reductions were achieved through improved manufacturing efficiencies and the production of significantly more NAND Flash wafers. During the fourth quarter of fiscal 2007, the company began executing initiatives to drive greater cost efficiency and revenue growth. The company recorded a restructure charge in the fourth quarter of US$19 million comprised primarily of employee severance and related costs resulting from a reduction in the company's workforce in the quarter. The company continues to pursue opportunities to lower its overhead costs through the utilization of partnerships and other outside relationships. Selling, general and administrative expenses in the fourth quarter include increased costs associated with the company's outstanding legal matters. The company had capital expenditures of approximately US$850 million and US$4 billion, including expenditures by its joint ventures during the fourth quarter and 2007 fiscal year, respectively, and ended the fiscal year with cash and investment balances of US$2.6 billion. Micron Technology Inc. -- http://www.micron.com/-- (NYSE:MU) provides advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND Flash memory, CMOS image sensors, other semiconductor components and memory modules for use in leading-edge computing, consumer, networking and mobile products. The company is headquartered in Boise, Idaho, and has manufacturing facilities in Italy, Scotland, Japan, Puerto Rico and Singapore. As reported in the Troubled Company Reporter-Latin America on May 21, 2007, Standard & Poor's Ratings Services affirmed its BB-/Stable/-- corporate credit rating on Boise, Idaho-based Micron Technology Inc. S&P also assigned its 'BB-' rating to the company's USUS$1.1 billion convertible senior notes due 2014. NIS GROUP: S&P Downgrades Credit & Debt Ratings to 'BB-' -------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term counterparty credit rating and long-term senior unsecured debt rating on NIS Group Co. Ltd. by two notches to 'BB-' and placed the ratings on CreditWatch with negative implications, reflecting worsening operating conditions and their negative impact on the company's funding flexibility. The rating actions reflect growing concerns over NIS Group's financial stability due to the cautious stance many financial institutions are taking with respect to credit lines extended to the finance industry. Should recent changes in the external business environment persist over a prolonged period of time, the stability of NIS Group's financial profile could be negatively impacted. Financial institutions have heightened precautionary measures affecting their lending policies related to financial institutions because of the following: 1) increasing refund claims made by borrowers for overcharged interest; 2) increasing concerns over the credit quality of the finance industry as a whole; and 3) the recent bankruptcy of a midsize listed consumer finance company. NIS Group, which does not have a solid main-bank relationship with any one specific bank, is relatively vulnerable in this unstable business climate. Refund claims made by borrowers for overcharged interest remain at high levels. In addition, consumer and corporate loan losses are trending upward because of tightening lending standards that are impacting the entire industry. The NIS Group was ahead of its industry peers when it diversified its operations and expanded the scope of its business to include the real estate-backed loan segment. However, the growth of that segment may be constrained by a potential increase in funding costs resulting from its deteriorating external environment. In addition, as of June 30, 2007, the NIS Group held JPY33.2 billion in investment securities on a book value basis, which leaves its capitalization and earnings vulnerable to stock market price fluctuations. Standard & Poor's will resolve the CreditWatch listing after analyzing the financial institutions' credit stance, its business environment including the situation regarding refund claims related to overcharged interest, and the countermeasures it pursues to stabilize its financial profile. About NIS Group Headquartered in Ehime Prefecture, Japan, NIS Group Co., Ltd., formerly Nissin Co., Ltd., -- http://www.nisgroup.jp/-- is mainly engaged in the provision of secured and unsecured loans to individuals, including small business owners, consumers, small- and medium-sized enterprises in Japan. The Company operates in four business segments. The Integrated Loan Services segment is engaged in the provision of secured and unsecured loans, trust assurance, leasing and securities services to individuals and corporate clients. The Debt Management and Collection segment is engaged in the purchase, management and collection of debts. The Real Estate segment is engaged in the purchase, sale and development of real estate, as well as the asset management business. The Others segment is engaged in the provision of construction services and enterprise support services, among others. The Company has 54 subsidiaries and 10 associated companies. SOJITZ CORP: Wraps Up Primary Metals Tender Offer ------------------------------------------------- Sojitz Corporation has successfully concluded a friendly tender offer for Primary Metals Inc., Kyodo News says, citing company officials. Primary Metals, according to Kyodo, is a Canadian mining company owning a tungsten mine in Portugal. With shareholders tendering 95.34% of outstanding Primary Metals shares, Sojitz will take procedures for the forced acquisition of the remaining stake in order to convert Primary Metals into a wholly owned subsidiary by the end of this year, notes Kyodo. Headquartered in Tokyo, Japan, Sojitz Corporation -- http://www.sojitz.com/en/index.html-- is a trading company with eight offices across the U.S. Sojitz operates in approximately 50 countries around the world through roughly 500 subsidiaries and affiliated companies. Sojitz's business activities are wide-ranging, from machinery and aerospace to textiles and food. * * * The Troubled Company Reporter-Asia Pacific reported on Feb. 28, 2007, that Standard & Poor's Ratings Services raised its long- term issuer credit rating on Sojitz Corp. to 'BB+' from 'BB' and removed the rating from CreditWatch where it was placed on Apr. 28, 2006, with positive implications. The upgrade follows Sojitz's conversion of a total JPY205 billion of its JPY300 billion in outstanding convertible bonds into common shares by Feb. 26, 2007. SOLO CUP: Hires Scott Advertising as Creative Agency ---------------------------------------------------- Solo Cup Company has appointed Scott Advertising as its creative agency of record for its foodservice marketing and advertising following an extensive agency review. "Solo is stepping up its efforts to support its products and brand with a full complement of marketing tools," said Malcolm Simmonds, Solo's senior vice president of foodservice sales and marketing. "Scott Advertising has an impressive track record in foodservice and we look forward to a successful collaboration." As Solo's foodservice marketing agency of record, Scott will be responsible for developing integrated marketing programs across various media. The agency will focus primarily on leveraging Solo's unique value proposition and on supporting the company's distribution and foodservice operating partners. Founded in 1940, Milwaukee-based Scott Advertising is a full- service advertising agency with clients ranging from foodservice to sporting goods to business and industry. Headquartered in Highland Park, Illinois, Solo Cup Company -- http://www.solocup.com/-- manufactures disposable foodservice products for the consumer and retail, foodservice, packaging, and international markets. Solo Cup has broad expertise in plastic, paper, and foam disposables and creates brand name products under the Solo, Sweetheart, Fonda, and Hoffmaster names. The company was established in 1936 and has a global presence with facilities in Asia, including Japan; Canada; Europe; Mexico; Panama; and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Fitch Ratings has affirmed the ratings for Solo Cup Company as: -- Issuer default rating (IDR) 'B-'; -- Senior secured first lien term loan 'B+/RR2'; -- Senior secured revolving credit facility 'B+/RR2'; -- Senior subordinated notes 'CCC/RR6'. ========= K O R E A ========= DURA AUTOMOTIVE: Gets Court Nod to Submit Plan to Creditors ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has approved DURA Automotive Systems Inc.'s Disclosure Statement, solicitation procedures and creditor ballots. In a hearing that took place yesterday, Oct. 3, 2007, the U.S. Bankruptcy Court for the District of Delaware determined that DURA's Disclosure Statement contains the necessary information to enable creditors to vote on DURA's Plan of Reorganization. In addition, the Official Committee of Unsecured Creditors supports confirmation of DURA's Plan and has filed a statement urging creditors to vote to accept the Plan. "This favorable Court decision and support from the Committee for our plan to reorganize the Company, paves the way for DURA to exit Chapter 11 this year as planned," said Larry Denton, Chairman and Chief Executive Officer of Dura Automotive Systems. "We are looking forward to completing the legal process and focusing all of our resources on innovation and execution of our financial and operational strategy to aggressively compete and grow in the global automotive marketplace." The Plan and Disclosure Statement provide details on how DURA intends to treat claims against the Company and emerge from Chapter 11 protection in the fourth quarter of 2007. The Court's approval of the Disclosure Statement enables DURA to begin sending its Plan of Reorganization and Disclosure Statement to creditors to obtain their vote on the Plan. The ruling allows DURA's balloting agent to soon begin distribution of ballots and accompanying support materials to parties eligible to vote to accept or reject the Plan. The Court also set Nov. 26, 2007, as the hearing date for Plan confirmation. Once the Plan is confirmed and administrative procedures are completed, DURA will officially emerge from Chapter 11. DURA was advised by AlixPartners, Kirkland & Ellis and Miller Buckfire in connection with its Chapter 11 reorganization. About DURA Automotive Headquartered in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had USUS$1,993,178,000 in total assets and USUS$1,730,758,000 in total liabilities. EG SEMICON: Board OKs Issuance of 3,980,000 Common Shares --------------------------------------------------------- EG Semicon Co. Ltd's board of directors has decided to issue 3,980,000 shares of common stock on preferential basis, Reuters reports. According to the report, the company raised KRW1,990 million in proceeds to seek operational funds. The shares will be listed on October 19, 2007 at the offering price per share of KRW500, the report adds. EG Semicon Co., Ltd. -- http://www.osec.co.kr/-- manufactures liquid crystal displays. The company is headquartered in Gyeongsangbuk Province, Korea. It operates two factories in Korea and one in China. On October 5, 2007, the Troubled Company Reporter-Asia Pacific reported that EG Semicon Co. has a shareholders' equity deficit of US$12.34 million on total assets of US$166.70 million. ESTECHPHARMA CO: Adjusts Price of Third Convertible Bonds --------------------------------------------------------- Estechpharma Co Ltd. has made an amendment regarding its third convertible bonds, Reuters reports. According to the report, the conversion price has been adjusted from KRW4,000 to KRW3,930. Ansan-si, Gyeonggi-do, Korea-based Estechpharma Co., Ltd. -- http://www.estechpharma.com/-- is mainly involved in the manufacture and supply of active pharmaceutical ingredients and other related products. The company's offerings range from anti-inflammatory, anti-arthritic, anti-analgesic, antipyretic, non-steroidal anti-inflammatory and antiseptic agents to disinfectants and hemostatic, antibiotic, anti-hepatitis, anti- ulcer, antispasmodic, antithrombosis, antiplatelet and antirheumatic agents. Its products are available in different dosage forms, such as syringes, tablets and capsules. The company also has a portfolio of development-stage products, which include Amlodipine, used in the treatment of angina and hypertension, and Topiramate, used to treat certain types of seizures. On May 30, 2006, Korea Ratings gave the company's US$3,000,000 overseas bond with warrants issue a B+ rating. =============== M A L A Y S I A =============== KNOLL INC: Completes US$67 Million Edelman Purchase --------------------------------------------------- Knoll Inc. has completed the purchase of Teddy and Arthur Edelman Limited for approximately US$67 million in cash, plus the assumption of debt not to exceed US$3.7 million and certain contingent payouts based on the future success of the business. As reported in the Troubled Company Reporter on Sept. 17, 2007, Knoll Inc.'s subsidiary entered an asset purchase agreement pursuant to which it will acquire Teddy and Arthur Edelman Limited. "The strategic acquisition of Edelman is consistent with our strategy of building sales in our high design, high margin specialty businesses, which appeal to both business buyers and consumers worldwide," Andrew B. Cogan, Knoll CEO, reiterated. "Edelman's reputation in the design community for unique leathers and its showroom network well as its storied history is highly complementary in terms of culture, customers, markets and products." Edelman Leather will operate as an independent company and will maintain its own headquarters and distribution center in New Milford, Connecticut. John Edelman will serve as president of Edelman Leather; John McPhee will continue in his role as Edelman Leather's chief operating officer. The business will operate under the name Edelman Leather LLC. About Teddy and Arthur Edelman Limited Based in New Milford, Connecticut, Teddy and Arthur Edelman Limited -- http://www.edelmanleather.com/-- is a purveyor of fine leathers to the residential, hospitality, aviation and contract office furniture markets. About Knoll Inc. Based in East Greenville, Pennsylvania, Knoll Inc. (NYSE: KNL) -- http://www.knoll.com/-- designs and manufactures branded office furniture products and textiles, serves clients worldwide. It distributes its products through a network of more than 300 dealerships and 100 showrooms and regional offices. The company has locations in Argentina, Australia, Bahamas, Cayman Islands, China, Colombia, Denmark, Finland, Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Poland, Portugal and Singapore, among others. * * * As reported in the Troubled Company Reporter on July 27, 2007, Moody's Investors Service affirmed the company's Ba3 corporate family rating. FOAMEX INT'L: Sells US$10 Mil. Carpet Facilities to Future Foam --------------------------------------------------------------- Foamex International Inc. has sold its stand-alone carpet cushion facilities to Future Foam Inc. for net proceeds of approximately US$10 million. The carpet cushion facilities are located in Fairless Hills, Pennsylvania, Dallas, Texas and Orlando, Florida. Foamex intends to use the proceeds to either reinvest in its business or to pay down debt. The company intends to use the proceeds either to reinvest in its business or to pay down debt. Foamex will offer prime polyurethane and rebond carpet cushion and flooring underlay products through its remaining carpet cushion facilities, which are integral components at a number of its foam production facilities in the Midwest and Western United States. "This transaction reflects our continuing effort to strengthen Foamex," Jack Johnson, president and chief executive officer of Foamex, said. "The stand-alone carpet cushion facilities are non-core components of our overall portfolio and the sale of these facilities provides better value to our stockholders. We remain committed to the carpet cushion business and will continue to manufacture products for the carpet cushion and flooring underlay market. The remaining capacity can consume all the scrap foam we produce in our other foam operations." Headquartered in Linwood, Pennsylvania, Foamex International Inc. (FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures polymers for the industrial, aerospace, defense, electronics and computer industries. The company and eight affiliates filed for chapter 11 protection on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05- 12693). Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP, represent the Debtors in their restructuring efforts. Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are advising the ad hoc committee of Senior Secured Noteholders. Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul Ewings, LP, represent the Official Committee of Unsecured Creditors. As of July 3, 2005, the Debtors reported US$620,826,000 in total assets and US$744,757,000 in total debts. On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended Joint Plan of Reorganization. The Plan of Reorganization of Foamex International Inc. became effective and the company emerged from chapter 11 bankruptcy protection on Feb. 12, 2007. At July 1, 2007, Foamex International Inc.'s balance sheet showed total assets of $566.2 million and total liabilities of US$823.5 million, resulting to a total stockholders' deficit of US$257.3 million. SMART MODULAR: Reports US$13.2-Mln Net Income in Fourth Qtr 2007 ---------------------------------------------------------------- SMART Modular Technologies, Inc., has reported net sales for the fourth quarter of fiscal 2007 were US$165.6 million, down 11% compared to US$186.5 million for the third quarter of fiscal 2007, and down 16% compared to US$197.0 million for the fourth quarter of fiscal 2006. Net sales for the fiscal year ended Aug. 31, 2007 were US$828.4 million, up 17% compared to US$707.4 million for fiscal year 2006. Gross profit for the fourth quarter of fiscal 2007 was US$31.8 million, down 14% compared to US$36.9 million for the third quarter of fiscal 2007, and down 5% compared to US$33.5 million for the fourth quarter of fiscal 2006. Gross profit for fiscal year 2007 totaled US$147.8 million, up 17% compared to gross profit of US$126.6 million for fiscal 2006. GAAP net income for the fourth quarter of fiscal 2007 was US$13.2 million, or US$0.21 per diluted share, compared to GAAP net income of US$14.2 million, or US$0.22 per diluted share for the third quarter of fiscal 2007, and US$15.7 million, or US$0.25 per diluted share for the fourth quarter of fiscal 2006. For fiscal year 2007, SMART reported GAAP net income of US$55.9 million, or US$0.88 per diluted share, compared to US$32.3 million, or US$0.55 per diluted share for fiscal year 2006. Our fourth quarter and full fiscal 2007 results also included an approximately US$1.7 million (approximately US$1.0 million, net of tax) benefit due to the reversal of inventory reserve related to end-of-life inventory disposed of at cost. For the fourth quarter and full fiscal year 2007 and 2006, non- GAAP financial results have been adjusted to exclude various infrequent or unusual items. Please refer to the "Non-GAAP Information" below for further detail. SMART ended the fourth quarter and fiscal year 2007 with US$144.1 million in cash and cash equivalents, compared to US$114.0 million in cash and cash equivalents at the end of the third quarter of fiscal 2007. "The fourth fiscal quarter was a challenging period for the memory industry," observed Iain MacKenzie, President and Chief Executive Officer of SMART. "While our numbers declined from last quarter, we delivered solid growth in net sales, gross profit, and EPS for the full fiscal year 2007. "The majority of our sales are DRAM-related, and our business model is driven primarily by unit and density growth of DRAM memory products sold to OEM customers. The 65% decline in DRAM average selling prices since the first quarter of fiscal 2007, and in particular, an entire fourth fiscal quarter of depressed DRAM ASPs weakened unit and density growth, which in turn negatively impacted our financial results for the quarter. "However, some signs that bode well for improved unit and density growth of SMART products include a trend towards server virtualization in the enterprise market, in which multiple applications run on a single physical server, and the continued growth in computing requirements. "We continue to work towards diversifying into non-DRAM businesses by broadening our flash, embedded systems and display product offerings. Earlier in the fiscal year, we introduced our XceedUltra U100 solid state drive product family. The XceedUltra, which is the industry's first SSD with a next- generation serial ATA (SATA) interface, utilizes our proprietary controller technology to achieve sustained read speeds of 100MB/s and write speeds of 60MB/s. More recently, we introduced our XceedLite product line of SATA SSDs, designed specifically to support OEM demands for an industrialized version of the secure digital form factor. Both of these new product offerings position SMART to capitalize on the transition occurring in the enterprise, military, medical and industrial markets as streaming video-on-demand, online transaction processing, internet search, and other data-intensive storage applications migrate from hard disk drives. Our embedded systems and display products reflect the results of our diversification efforts, and our focus remains on kiosk, POS and digital signage applications, where the markets are fragmented, and where we can best leverage our engineering expertise and worldwide manufacturing presence. "We successfully closed fiscal year 2007 as a leader in high-end OEM-focused memory products. We believe the foundation of our success is based on the depth of our engineering design capabilities, customer-centric service, worldwide supply chain, manufacturing and logistics, and the breadth of our product portfolio. In spite of an increasingly challenging business environment throughout the fiscal year, we remained disciplined and focused, generating strong earnings while controlling costs. As we move into fiscal 2008, we remain steadfast in our objectives to cost-effectively deliver a diverse portfolio of products and utilizing our global footprint and technology expertise," concluded Mr. MacKenzie. Business Outlook The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The company undertakes no obligation to update these statements. For the first quarter of fiscal 2008, SMART estimates net sales will be in the range of US$165 to US$175 million, gross profit will be in the range of US$32 to US$35 million, and diluted net income per share will be in the range of US$0.17 to US$0.18. The shares used in computing diluted net income per ordinary share will be in the range of 63.6 million to 64.4 million. SMART currently expects fiscal 2008 diluted net income will be in the range of US$0.82 to US$0.86 per share. About SMART Modular SMART Modular Technologies (WWH) Inc. (Nasdaq: SMOD) -- http://www.smartm.com/-- designs, manufactures and supplies electronic subsystems to original equipment manufacturers, or OEMs. SMART offers more than 500 standard and custom products to OEMs engaged in the computer, industrial, networking, gaming, telecommunications, and embedded application markets. The company has design centers in California, South Korea and Massachusetts. Its manufacturing facilities are located in California, Malaysia, Brazil, Dominican Republic and Puerto Rico. * * * Moody's Investors Service assigned a B2 rating to SMART Modular Technologies Inc.'s US$125 million senior secured second lien notes due 2012 issued under Rule 144A. Standard & Poor's Ratings Services assigned its B+ corporate credit rating to Fremont, California-based SMART Modular Technologies Inc. SOLECTRON CORP: Agent Discloses Final Result of Exchange -------------------------------------------------------- Computershare Shareholders Services Inc., the exchange agent for the transaction, reported final results for the elections made by Solectron Corporation stockholders regarding the form of merger consideration they will receive in the merger with Flextronics International Ltd. Computershare has calculated that of the 918,438,865 shares of Solectron common stock outstanding as of the effective time of the merger: a. 725,108,506 of the outstanding Solectron shares have submitted valid elections to receive Flextronics ordinary shares; b. 81,440,695 of the outstanding Solectron shares have submitted valid elections to receive cash; and c. 111,889,664 of the outstanding Solectron shares did not submit valid elections. Pursuant to the terms of the merger agreement, Solectron stockholders were entitled to elect to receive either 0.3450 of a Flextronics ordinary share or $3.89 in cash for each share of Solectron common stock, subject to proration due to minimum and maximum limits on the amount of stock consideration and cash consideration. The election deadline expired at 5:00 p.m., EDT, on Sept. 27, 2007. Based on the election results and the terms of the merger agreement: a. Solectron stockholders who elected to receive stock consideration will receive Flextronics ordinary shares with respect to approximately 88.66% of their Solectron shares and cash with respect to approximately 11.34% of their Solectron shares; b. Solectron stockholders who elected to receive cash consideration will receive cash with respect to all of their Solectron shares; and c. Solectron stockholders that failed to submit a valid election will receive cash with respect to all of their Solectron shares. Flextronics will pay approximately US$1.07 billion in cash and issue approximately 221.8 million Flextronics ordinary shares pursuant to the merger. No fractional Flextronics ordinary shares will be issued. Instead, each Solectron stockholder that would otherwise be entitled to receive Flextronics fractional shares will receive an amount in cash based on US$11.42 per Flextronics ordinary share, the average of the per share closing prices of Flextronics ordinary shares reported on the NASDAQ Global Select Market during the five consecutive trading days ending on the trading day immediately preceding the closing date of the merger. Solectron stockholders with questions regarding individual allocation results should contact Innisfree M&A Incorporated toll free from within the United States and Canada at 877-825- 8971. About Flextronics International Headquartered in Singapore, Flextronics International Ltd. (NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an Electronics Manufacturing Services provider focused on delivering design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on four continents. About Solectron Corporation Based in Milpitas, California, Solectron Corporation (NYSE: SLR) -- http://www.solectron.com/-- provides complete product lifecycle services. The company offers collaborative design and new product introduction, supply chain management, lean manufacturing and aftermarket services such as product warranty repair and end-of-life support to customers worldwide. The company works with the providers of networking, computing, telecommunications, storage, consumer, automotive, industrial, medical, self-service automation and aerospace and defense products. The company's Lean Six Sigma methodology provides OEMs with quality, flexibility, innovation and cost benefits that improve competitive advantage. Solectron operates in more than 20 countries on five continents including Malaysia. * * * Moody's Investors Service upgraded Solectron's convertible senior notes and senior subordinated notes to Ba2 from B3 and withdrew Solectron's B1 corporate family, B1 probability-of- default and SGL-1 speculative grade liquidity ratings. PECD BERHAD: MARC Cuts Rating of MYR200M Fixed Rate Bonds to BB+ ---------------------------------------------------------------- Malaysian Rating Corp Bhd has downgraded PECD Berhad's MYR200 million serial fixed rate bonds to BB+ from BBB-. The rating outlook remains negative. The downgrade reflects the major operational and strategic challenges currently faced by PECD as well as continued deterioration in its credit metrics, and recognizes the increased execution challenges confronting management as it pursues its turnaround strategy. MARC believes that the recent announcement by PECD of the Dubai Investment Group's (DIG) withdrawal from a proposed tripartite joint venture with PECD and Dubai Properties, will hamper PECD's efforts to strengthen its business profile, in particular its construction presence in the Middle East. Earlier on, PECD had announced the termination of two projects, i.e. the Greater Nile Petroleum Operating Company (GNPOC) Headquarter Building Project on April 12, 2007, and the Oceana Project on July 2, 2007. In light of PECD's high reliance on its construction segment in respect of earnings and cash flow, MARC believes that its ability to meaningfully improve its earnings and debt protection measures will be restrained notwithstanding its impending recapitalization exercise. For the first six months ended June 30, 2007, PECD recorded a net loss before minority interest of MYR12.8 million despite a smaller loss of MYR3.8 million in 2Q07. Whilst the latest quarter shows a quarter-on-quarter improvement, the group is still reporting losses with only the construction division reporting profits. Furthermore, the group has been cash flow positive only in one quarter of eight quarters from 3Q05 through 2Q07. The Group is not generating sufficient cash flow to fund its debt service obligations and coupon payments have been serviced from shareholder advances. The group's unencumbered cash balances of MYR5.5 million provide limited liquidity for its debt service obligations. An impending rights issue (RI) targeted for completion by end of 2007 and several asset disposals indicate potential funding flexibility. PECD is currently negotiating a change to the schedule for the build-up of its debt service reserve account (DSRA), to one month prior to the coupon payment vis-a-vis to maintain at all times, an amount at least equivalent to the coupon payment on the next maturity. The Issuer is also seeking its bondholders' indulgence on other matters including a waiver for non-compliance of its financial covenant ratio. The rating continues to be under downward pressure as PECD's inability to achieve sustained recovery of operating performance will further depress the already weak earnings and debt protection measures. PECD is a domestic public-listed construction company, which has since 2004, ventured offshore and secured contracts in Dubai, Sudan and Indonesia. TALAM CORP: Works on Alternative Reform Plan -------------------------------------------- Talam Corporation Bhd is working on a new restructuring plan to be submitted to the Securities Commission in the event that its appeal against the rejection of the regularization exercise is not successful, The Edge Daily reports. Parties familiar with the construction group told the news agency that the company is confident of addressing all the issues raised by the SC pertaining to its revamp and accounting problems. The insider sources of the paper also said that on Oct. 4, 2007, Talam's board of directors met to discuss the SC's directive and to look into coming up with a new restructuring plan if the company's appeal failed. A source said: "The company is confident that it can address all those issues. The accounts issue is merely an accounting omission that can be explained." According to the source, negotiations are also under way with the financial institutions for a hairline cut and the company is optimistic that the lenders would agree to it. The Troubled Company Reporter?Asia Pacific reported on Oct. 4, 2007, that the company failed to gain the approval of the Securities Commission to implement its various reform plan proposals, based on these factors: (i) Talam will not immediately turnaround post-restructuring based on the financial forecast and projections submitted; (ii) substantial accumulated losses of MYR156 million remain post restructuring; (iii) the proposals appear to benefit the creditors more than the minority shareholders of Talam as the shareholders will be undergoing a capital reduction exercise whilst none of the creditors will be taking a 'hair-cut' on the amount owing to them by Talam; (iv) upon completion of the restructuring scheme, Abrar Discounts Berhad ("ADB") will hold 36.3% equity interest in Talam. There is uncertainty over the possible emergence of a new substantial shareholder which would have an impact on the direction of Talam moving forward as at this juncture, it is not known if ADB will dispose its interest in Talam or the identity of the potential buyer of the block of shares held by ADB; and (v) there is no clear indication that IJM Corporation Berhad ("IJM") is acting as a 'white-knight' to Talam's restructuring scheme given that, inter-alia,: -- IJM would not be a substantial shareholder in Talam pursuant to the restructuring scheme. IJM's effective interest in Talam, via its shareholding in Kumpulan Europlus Berhad, is minimal; and -- IJM is involved only in selected stalled projects of Talam. In addition, the SC had recently directed Talam to reinstate the MYR90 million debtors and re-issue its 2006 and 2007 financial statements by Oct 31, 2007 for its failure to comply with approved accounting standards. Talam posted a staggering net loss of MYR513.4 million in its financial statement ended Jan 31, 2006, against a net profit of MYR93 million previously. In an announcement through Bursa Malaysia Securities Bhd, Talam stressed that its auditors, Ernst & Young's, did not "obtain sufficient appropriate audit evidence" to satisfy themselves of those adjustments. "The adjustments had the effect of reclassifying MYR90 million of its debtors into property development costs, other liabilities and retained profits brought forward," the company said. Headquartered in Kuala Lumpur, Malaysia, Talam Corporation Berhad -- http://www.talam.com.my/-- is principally engaged in property development. Its other activities include trading building materials, manufacturing of ready mixed concrete, provision for higher educational programs, development and management of hotel, golf and country club horticulturists, agriculturists and landscaping designers and contractors and investment holding. Operations of the group are carried out in Malaysia and China. The Troubled Company Reporter-Asia Pacific reported on Sept. 11, 2006, that based on the Audited Financial Statements of Talam Corporation for the financial year ended January 31, 2006, the Auditors Ernst & Young were unable to express their opinion on the Company's Audited Accounts. As such, the Company is an affected listed issuer of the Amended Practice Note 17 category. In accordance with PN 17, the company is required to submit and implement a plan to regularize its financial condition within eight months from Sept. 1, 2006. ==================== N E W Z E A L A N D ==================== A&R WHITCOULLS: Seeks Clearance to Acquire Borders New Zealand -------------------------------------------------------------- New Zealand's Commerce Commission has received an application from A&R Whitcoulls Group Holdings Pty Limited seeking clearance to acquire 100% of the shares in Borders New Zealand Limited. Borders is a wholly owned subsidiary of Borders Group Inc., which is listed on the New York stock exchange. In New Zealand, Borders is involved in the retail of books, magazines, stationery, cards, DVDs and CDs. In considering the application, the Commission's role is to determine whether the acquisition has the effect of substantially lessening competition in a market, the company explained in a filing with the New Zealand Stock Exchange. Melbourne, New Zealand-based A&R Whitcoulls Group Holdings Pty Ltd. -- http://www.arw.co.nz/ -- is a specialty retail company operating across New Zealand and Australia. The company comprises a number of brands, which sell a range of products, including books, magazines, stationery, calendars, gifts, greeting cards and digital versatile discs (DVDs). Some of the Company's subsidiaries include A&R Australia Holdings Pty Limited, Angus & Robertson Pty Ltd, Angus & Robertson Bookworld Calendar Club Pty Ltd, Supanews Angus & Robertson Pty Limited, Whitcoulls Finance Trust, Whitcoulls Limited, Whitcoulls Group Limited and WHSmith Hong Kong Limited. On October 18, 2005, A&R Whitcoulls Group Holdings Pty Limited disposed of the travel retail businesses in Hong Kong and Australian airports. * * * On Oct. 2, 2007, the Troubled Company Reporter-Asia Pacific's Distressed Bonds column listed A&R Whitcoulls Group's bond with a 9.500% coupon and December 15, 2010 maturity date as trading at NZ$10.80. CARROW HOLDINGS: Fixes Oct. 20 as Last Day to File Claims --------------------------------------------------------- On Sept. 13, 2007, Carrow Holdings Ltd. went into liquidation. The company requires its creditors to file their proofs of debt by October 20, 2007. The company's liquidator is: Grant Bruce Reynolds c/o Reynolds & Associates Limited Insolvency Practitioners PO Box 259059, Greenmount East Tamaki, Auckland New Zealand Telephone:(09) 522 5662 Facsimile:(09) 522 5788 CLEGG & CO: Covenant Trustee Appoints BDO Spicers as Receivers -------------------------------------------------------------- Covenant Trustee Company Limited has placed finance company Clegg and Co. in receivership. Since May last year, Clegg is reportedly the 10th New Zealand finance entity that got into trouble. In its Web site, Clegg said that Covenant Trustee appointed on Oct. 4, 2007, Brian Mayo-Smith and Shaun Adams of BDO Spicers as receivers for Clegg & Co Finance Limited, Clegg & Co Leasing Limited and Clegg & Co Capital Limited. According to ShareChat News, the Trustee ordered the receivership after the company's directors and shareholders were unable to rectify the breach of a loan restriction clause, which breach was reportedly to a "significant extent." "Current information suggests that Clegg & Co Finance Limited has deposits totaling approximately [NZ]$15 million from about 500 investors," the statement in the company Web site said. To asses the ability of the three companies to meet their investors' obligations, the receivers are now in the process of collecting information relevant to the companies' financial positions. The receivers expect to prepare their initial advice to investors next week and a fuller report in approximately one month's time. According to the company statement, initial indications suggest a dividend will be payable to investors. The receivers, however, are still unable to put a figure on that dividend. Clegg and Co Finance -- http://www.clegg.co.nz/-- is a New Zealand finance company dealing with commercial plant finance leases and other secured lending contracts. DEEP BLUE: Accepting Proofs of Debt Until Oct. 20 ------------------------------------------------- The creditors of Deep Blue Charters Ltd. are required to file their proofs of debt by October 20, 2007, to be included in the company's dividend distribution. The company went into liquidation on September 10, 2007. The company's liquidator is: Bryan George Pocock Level 7, 44 Victoria Street PO Box 10788, Wellington Australia Telephone:(04) 472 3560 Facsimile:(04) 472 3564 GILBERT PRINTING: Court to Hear Wind-Up Petition on Nov. 29 ----------------------------------------------------------- The High Court of Auckland will hear on November 29, 2007, at 10:45 a.m., a petition to have Gilbert Printing Co Ltd.'s operations wound up. The petition was filed by BDO Spicers on August 10, 2007. BDO Spicers' solicitor is: R. B. Hucker Hucker & Associates Level 7, 55-65 Shortland Street Auckland New Zealand HERITAGE GOLD: CEO Trent Lash Named New Managing Director --------------------------------------------------------- Heritage Gold NZ Limited disclosed in a filing with the New Zealand Stock Exchange that Chief Executive Officer Trent Lash has been appointed as the company's new managing director of the. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 10, 2007, Mr. Lash was recently named the company's new chief executive officer. According to the TCR-AP report, Mr. Lash provided services akin to those of a CEO pursuant to a management contract entered with Endeavour Group Limited, of which he is a shareholder and director. "It is our intention over the next two years to upgrade our existing prospects, develop new opportunities and build a company that rewards its shareholders through steady, sustained uplift in value," Heritage Gold Chairman Geoffrey Hill said in the regulatory filing. Mr. Lash's background in the resources sector include building two resource-related companies from the ground up. Over the past 15 years he has been instrumental in transforming and restructuring companies for venture capital and private equity groups in both Canada and New Zealand, the NZX filing states. Mr. Lash said that he, over the next 12 months, intends to improve the marketability and commercial objectives of the company and realize its underlying asset value. "Heritage plans to develop its existing Coromandel gold prospects at Waihi, realize the value in its cobalt resource at Broken Hill, Australia and validate the prospectivity of its Northern Territory uranium interests," Mr. Lash stated. "In the next twelve months we plan to undertake underground drilling of the Talisman Mine project to bring it to a stage that would either engender interest in joint venture development of the mine or provide us with a platform to crystallize its value for our shareholders." The historic Talisman Mine produced more than 1 million ounces of gold and 3 million ounces of silver prior to its closure in 1992. "We have set our sights firmly on developing our Broken Hill cobalt prospect and expect to make an announcement as consultants reports become available in the next few months," Mr. Lash continued. Heritage is currently in discussion with a number of parties interested in securing cobalt concentrates. The spot price of cobalt has risen recently to US$30 per pound, up from about US$20 per pound a year ago. Heritage Gold assured it shareholders that it will provide further information once the overall strategic business plan is finalized. Parnell, New Zealand-based Heritage Gold NZ Limited -- http://www.heritagegold.co.nz/-- is a mining company. The company is a systematic and persistent acquirer of prime gold areas in New Zealand's Waihi district. Heritage Gold NZ Limited has a 33% equity interest in Broken Hill Cobalt Limited (BHCL), which has tenements over the Thackaringa cobalt project near Broken Hill in New South Wales. The company has an exploration license south of Broken Hill, where several geophysical, geological and geochemical anomalies represent targets with potential for gold and base metal mineralization. Its wholly owned subsidiaries include Coromandel Gold Limited, Northland Minerals Limited and Strength Investments Limited. The group incurred consecutive losses of NZ$807,000, NZ$2,639,467 and NZ$331,563 for the years ended March 31, 2007, 2006, and 2005, respectively. HIGHGATE MOTORS: Creditors' Proofs of Debt Due on Oct. 31 --------------------------------------------------------- Stephen John Tubbs and Warren Michael Johnstone were appointed liquidators of Highgate Motors Ltd. on September 3, 2007. Messrs. Tubbs and Johnstone are accepting creditors' proofs of debt until October 31, 2007. The Liquidators can be reached at: Stephen John Tubbs Warren Michael Johnstone BDO Spicers, Level 6, Spicer House, 148 Victoria Street PO Box 246, Christchurch New Zealand Telephone:(03) 379 5155 Facsimile:(03) 353 5526 e-mail: michelle.bennett@chc.bdospicers.com JOLLY FARMER: Court Sets Wind-Up Petition Hearing for Nov. 8 ------------------------------------------------------------ A petition to have Jolly Farmer (2006) Ltd.'s operations wound up will be heard before the High Court of Auckland on Nov. 8, 2007, at 10:45 a.m. Iroam Investment Limited filed the petition on July 30, 2007. Iroam Investment's solicitor is: Murray David Branch c/o Harkness Henry & Co Hamilton New Zealand KATO LOGGING: Appoints Parsons and Kenealy as Liquidators --------------------------------------------------------- On Sept 10, 2007, Dennis Clifford Parsons and Katherine Louise Kenealy were appointed liquidators of Kato Logging Ltd. The Liquidators can be reached at: Dennis Clifford Parsons Katherine Louise Kenealy Indepth Forensic Limited PO Box 278, Hamilton New Zealand Telephone:(07) 957 8674 Web site: http://www.indepth.co.nz KTD LTD: Commences Liquidation Proceedings ------------------------------------------ On August 31, 2007, the shareholders of KTD Ltd. passed a resolution to have KTD Limited's operations wound up. Creditors who are not able to file their proofs of debt by Oct. 10 will be excluded from sharing the company's dividend distribution. The company's liquidator is: Trevor Cooper PO Box 23, Morrinsville New Zealand Telephone:(07) 889 7153 Facsimile:(07) 889 7151 STONNE LTD: Subject to Deeney Planning's Wind-Up Petition --------------------------------------------------------- Deeney Planning Stonne Ltd. filed on July 25, 2007, a petition to have Stonne Limited's operations wound up. The petition will be heard before the High Court of Auckland on November 29, 2007, at 10:00 a.m. Deeney Planning's solicitor is: Robert Peter Webber PO Box 37661, Parnell Auckland New Zealand WARREN REID: Subject to ACP Media's Wind-Up Petition ---------------------------------------------------- On July 11, 2007, ACP Media Limited filed a petition to have the Warren Reid Wholesale Ltd.'s operations wound up. The petition will be heard before the High Court of Auckland on November 1, 2007, at 10:00 a.m. ACP Media's solicitor is: Kevin Patrick Mcdonald c/o Kevin McDonald & Associates Takapuna Towers, Level 11 19-21 Como Street PO Box 331065, Takapuna Auckland New Zealand Telephone:(09) 486 6827 Facsimile:(09) 486 5082 WESTMERE LTD: Shareholder Resolves to Liquidate Business -------------------------------------------------------- On September 7, 2007, the shareholder of Westmere Ltd. resolved to liquidate the company's business. Gavin Richard O'Dea was appointed liquidator. The Liquidator can be reached at: Gavin Richard O'Dea PO Box 140, Hawera New Zealand Telephone:(06) 278 8060 Facsimile:(06) 278 1377 ===================== P H I L I P P I N E S ===================== BANGKO SENTRAL: Strong Peso Cues 25 BP Interest Rate Cut -------------------------------------------------------- The Bangko Sentral ng Pilipinas has reduced its interest rates on Thursday by 25 basis points as it has seen that the peso could buffer against rising commodity prices, the Philippine Star reports. According to PhilStar, monetary officials said that the rate cut could slow down the inflow of foreign investments and prevent rapid appreciation of the peso. As a result, the Monetary Board decided after a meeting on Thursday to lower interest rates to 5.75% for overnight borrowing or reverse repurchase rate and 7.75% for the overnight lending or repurchase rate. These rates took effect Friday, PhilStar reveals. The BSP said it will align its interest rates for its high-yielding, short- term special deposit account with the new overnight rates. The decision was based on the assessment that found the inflation outlook to be benign, BSP Governnor Amando M. Tetangco Jr. said. The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is the central bank of the Republic of the Philippines. It was established on July 3, 1993, pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993. BSP took over from the Central Bank of Philippines as the country's central monetary authority. Bangko Sentral enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities. The powers and functions of the Bangko Sentral are exercised by the Bangko Sentral Monetary Board, the highest policy-making body in the BSP. Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B' Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit Rating. Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior Unsecured Debt Rating. BANGKO SENTRAL: Sees 2007 BoP Surplus Hitting US$6.3 Billion ------------------------------------------------------------ The Bangko Sentral ng Pilipinas expects the country's balance of payments surplus to reach US$6.313 billion for this year, the Philippine Star reports. According to the report, BSP Deputy Governor Diwa Guinigundo declined to indicate the surplus' sustainability at current levels, but said that the 2008 projections would be even better than 2007. Mr. Guinigundo instead said that the central bank would reassess its BoP projections in late October and November as soon as it acquires more definite data from this year's third quarter. The BSP is currently firming up its projections for next year's balance of payments surplus prior to meeting with the International Monetary Fund, the report 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. BANGKO SENTRAL: Optimistic on Int'l. Reserves Reaching US$30BB -------------------------------------------------------------- The Bangko Sentral ng Pilipinas is optimistic that the country's gross international reserves could reach US$30 billion this year despite turmoil in the global equities market and low figures in exports growth, the Philippine Star says. According to the report, BSP Governor Amando M. Tetangco Jr. said that the GIR could hit at least US$35 billion over the next few years, boosted by continued strong inflows. The Philippines' reserve is on its way to US$30 billion over the medium term despite not being as large as major markets in the Asia-Pacific region, the BSP governor added. The projection is consistent with the expected expansion in foreign exchange requirements, assuming that the Philippines stays in the current trajectory of macroeconomic fundamentals, Mr. Tetangco said. 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. FOOSTER WHEELER: Philippine Unit Executes Earn-In Pact w/ PDEP -------------------------------------------------------------- Freeport McMoRan Copper & Gold, Inc's 40%-owned subsidiary Philex Gold discloses Earn-In Agreement with PDEP, Inc. Philex Gold disclosed the execution of the Earn-In Agreement on Oct. 3, 2007, between its wholly-owned subsidiary, Philex Gold Philippines, Inc. and PDEP, Inc. concerning part of PGPI's Sibutad Project tenements covering 6,954 hectares in the province of Zamboanga del Norte in the Island of Mindanao, Philippines. Under the terms of the Agreement, PDEPI has the right to earn an initial interest of 40% in the Property by making certain expenditures, totaling at least US$2,000,000 over a period of three years, on or for the benefit of the Property. Subsequently, PDEPI can earn an additional 20% interest in the Property by spending another US$2,000,000 on or before the fifth anniversary of the Agreement. The Property consists of the areas covered by an Exploration Permit Application (EPA # 047-IX) that measures 5,846 hectares, a Mine Production Sharing Agreement (MPSA 63-97-IX) covering 622 hectares and an Application for Production Sharing Agreement (APSA 73 -IX) covering 486 hectares for a total of 6,954 hectares. The Property lies in a highly mineralized region in the Zamboanga Peninsula in Western Mindanao, Philippines. This region is host to copper, gold, silver, lead, zinc, chromite prospects, a volcanic-hosted massive sulfide deposit, and several epithermal gold and porphyry copper prospects in advanced exploration stage. PDEPI has been exploring in the Philippines for the last ten years. It is a 40%-held subsidiary of Freeport McMoran Exploration Corporation, a subsidiary of Freeport-McMoRan Copper & Gold Inc., which recently acquired Phelps Dodge Corporation, a company with over a century of experience in the exploration and mining industry. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. * * * As reported in the Troubled Company Reporter-Asia Pacific reported on Oct. 1, 2007, Moody's Investors Service revised Freeport-McMoRan Copper & Gold Inc.'s and Phelps Dodge's outlooks to positive and affirmed all of Freeport's and Phelps Dodge's other ratings. Outlook Actions: Ratings affirmed: Issuer: Freeport-McMoRan Copper & Gold Inc. -- Corporate Family Rating: Ba2 -- Probability of Default Rating: Ba2 -- US$0.5 billion Senior Secured Revolving Credit facility, Baa2, LGD1, 2% -- US$1.0 billion Senior Secured Revolving Credit Facility, Baa3, LGD2, 17% -- US$2.45 billion Senior Secured Term Loan A, Baa3, LGD2, 17% -- US$339.7 million 6.875% Senior Secured Notes due 2014, Baa3, LGD2, 17% -- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80% Issuer: Phelps Dodge Corporation -- US$107.9 million 8.75% Senior Notes due 2011, Ba1, LGD3, 36% -- US$115 million 7.125% Senior Notes due 2027, Ba1, LGD3, 36% -- US$150 million 6.125% Senior Notes due 2034, Ba1, LGD3, 36% -- US$193.8 million 9.50% Senior Notes due 2031, Ba1, LGD3, 36% On Jul 16, 2007, that Fitch Ratings upgrades these ratings of Freeport-McMoRan Copper & Gold Inc. FCX -- US$1 billion Secured Bank Revolver to 'BB+' from 'BB'; -- 6.875% secured notes due 2014 to 'BB+' from 'BB'; -- Unsecured notes due 2015 and 2017 to 'BB' from 'BB-'; -- 7% convertible notes due 2011 to 'BB' from 'BB-'. In addition, Fitch affirms these ratings on FCX: -- Issuer Default Rating at 'BB'; -- US$500 million PT Freeport Indonesia/FCX Secured Bank Revolver at 'BBB-'; -- Convertible Preferred Stock at 'B+'. Fitch also assigns a rating of 'BB+' to FCX's new US$2.45 billion five-year term loan A. Proceeds of the loan were used to repay the US$2.45 billion remaining under the term loan due March 2014. The term loan amortizes at 10% per annum with the remainder due at maturity. The Rating Outlook remains Positive. As reported in the Troubled Company Reporter on March 27, 2007, Standard & Poor's Ratings Services assigned its 'B' preferred stock rating to the proposed US$2.5 billion US6.75% mandatory convertible preferred stock offering of Freeport-McMoRan Copper & Gold Inc. IPVG CORP: Enters Outsourcing Services Venture with Indian Firm --------------------------------------------------------------- IPVG Corp. and India-based Credence Analytics have entered into a joint venture agreement under which they will set up a knowledge-process outsourcing facility in the Philippines, the Philippine Star reports. The services will be offered initially to banking and financial institutions in both India and the Philippines, the article says. Under the memorandum of agreement, Credence Analytics will provide knowledge and expertise in the treasury and financial industries, while IPVG will put its management and business process outsourcing expertise into the venture, the report says. IPVG Corporation -- http://www.ipvg.com/-- is engaged in the information technology and communications business with interests in Information Technology and Telecommunications; On- line Gaming; and Business Process Outsourcing. IPVG reaches its customers through collaboration with international corporations that have proven to be market leaders in their respective geographic markets and industries. Its current partners include Fortune 1000 companies listed on the New York Stock Exchange, such as Pacific Century Cyberworks Inc. and IDT. The company can offer established product and proprietary business knowledge to the Philippine market by pairing each of its business subsidiaries with strategic partners. The TCR-AP reported on May 15, 2007, that the corporation posted a net loss of PHP102.1 million for the year ended Dec. 31, 2006, the company's third consecutive annual net loss after PHP43.0 million in 2005 and PHP6.2 million in 2004. PHIL AIRLINES: Exits Receivership Ahead of 2009 Schedule -------------------------------------------------------- Philippine Airlines on Thursday formally exited receivership, culminating a nine-year stint under regulatory supervision that transformed the once ailing flag carrier into a robust, profitable company with an ambitious agenda for the future. In a simple ceremony at the Securities and Exchange Commission boardroom, SEC chair Fe Barin handed PAL President Jaime J. Bautista official documents containing the agency's approval of PAL's petition to move out of receivership. That formally released PAL from the strictures of its rehabilitation plan, the document that has served as the blueprint for the airline since June 1999, a year after the SEC placed PAL under receivership. The move was welcomed by PAL's creditors, who have come to terms with the flag carrier on the rescheduling of its remaining obligations. As of August 31, 2007, PAL had US$869 million in outstanding principal debt, down from US$2.2 billion when it entered receivership. Graduating from receivership will bring about a number of benefits for PAL, including lower financing costs, improved financing terms and better access to capital markets. It will also open up more doors for the airline, which no longer has to deal with the stigma of being under rehabilitation. This is expected to lead to more commercial and marketing opportunities. Moreover, the lifting of receivership provides greater flexibility for PAL as it seeks to grow its fleet, expand services and venture to new markets. Mr. Bautista thanked PAL chairman and CEO Lucio C. Tan, whose infusion of US$200 million in fresh equity into PAL in June 1999 triggered the approval of the rehabilitation plan, saving the airline from liquidation and putting it on the road to recovery. "Dr. Tan's bold and selfless move, taken when no one else wanted to touch PAL, was an act of faith in our ability to turn around the company. The new PAL, now among the best-performing airlines in the world, is a testament to Dr. Tan's commitment," he said. The PAL chief also acknowledged the flag carrier's various stakeholders, particularly the riding public, for standing by the public when it mattered most: "Your strong support throughout PAL's rehabilitation lifted us from crisis and turned us into a success story." Finally, Mr. Bautista paid tribute to PAL's 7,500-strong work force: "It was your hard work and sacrifice that enabled us to attain this remarkable achievement. We could not have done it without everyone pulling together." About Philippine Airlines Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. As of 2005, it claims to serve 21 domestic airports and 31 foreign cities. Its main hub is the Ninoy Aquino International Airport in the capital city of Manila. Following labor problems and its failure to settle debts, PAL filed for rehabilitation in June 1998, and is slated to complete its 10-year debt rehabilitation program in 2009. A March 21, 2006 report by the Troubled Company Reporter-Asia Pacific stated that the airline company will continue a government-led rehabilitation program even as creditors neither approved nor rejected the program to leave the protection of the Securities and Exchange Commission. According to a TCR-AP report on July 24, 2007, Philippine Airlines Inc. is considering emerging from its rehabilitation after it brought down its foreign debts to US$953 million as of March 31, 2007, from the initial US$2.3 billion upon entering rehab in June 1999. * * * This concludes the Troubled Company Reporter's coverage of Araneta Properties Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. * September International Reserves Reach US$30.7 Billion -------------------------------------------------------- The Philippines' gross international reserves rose to US$30.7 billion as of September 30 in light of the Bangko Sentral ng Pilipinas' foreign exchange transactions and income from investments abroad, the Philippine Daily Inquirer reports. The figure is ahead of the BSP's US$30-billion year-end GIR target, the Inquirer relates. According to BSP data released on Friday, the September GIR is enough to cover 5.5 months' worth of imports, and is equal to 5.2 times the Philippines' short-term external debt. * * * On September 14, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency issuer credit ratings on the Philippines. The outlook is stable. Also in May 2007, S&P assigned its 'BB+' senior unsecured rating to the Philippines' new three- and five-year benchmark bond issues. The new bonds mature in 2010 and 2012 and carry interest rates of 5.5% and 5.75%, respectively. The exchange offers yielded approximately Philippine peso 55 billion and PHP58 billion for the three- and five-year bonds, respectively, from the exchange of eligible issues. Fitch Ratings, on March 5, 2007, affirmed the Republic of the Philippines' Long-term foreign and local currency Issuer Default ratings at 'BB' and 'BB+', respectively. The agency also affirmed the Short-term IDR at 'B' and the Country Ceiling at 'BB+'. On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign- currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= BARTLEY CONSORTIUM: Placed Under Voluntary Liquidation ------------------------------------------------------ At an extraordinary general meeting held on October 1, 2007, the members of Bartley Consortium Pte Ltd resolved to voluntarily liquidate the company's business. Only the creditors who can file their proofs of debt by Nov. 5, 2007, will be included in the company's dividend distribution. The Liquidator can be reached at: Chia Lay Beng 1 Scotts Road #21-07/08/09 Shaw Centre Singapore 228208 IN ACTIVE: Requires Creditors to File Proofs of Debt by Nov. 5 -------------------------------------------------------------- The creditors of In Active Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by November 5, 2007, to be included in the company's dividend distribution. The company's liquidators are: Low Sok Lee Mona Teo Chai Choo c/o Low, Yap & Associates 4 Shenton Way #04-01 SGX Centre 2 Singapore 068807 SELCO (SINGAPORE): Pays Fourth Interim Dividend ----------------------------------------------- On October 8, 2007, Selco (Singapore) Pte Ltd, which is in compulsory liquidation, paid creditors its fourth interim dividend. The company paid 1.40 cents to a dollar. SPECTRUM BRANDS: Amy Yoder Assumes Role as United President ----------------------------------------------------------- Spectrum Brands Inc. disclosed that Amy J. Yoder will assume the title of President, United Industries, effective immediately. In addition, the company named Anthony L. Genito to the position of Executive Vice President and Chief Financial Officer. Both Ms. Yoder and Mr. Genito will continue their current reporting relationship to Chief Executive Officer Kent J. Hussey. "Amy is an outstanding executive who during her short tenure with Spectrum Brands has been instrumental in setting our Home & Garden division on the path to improved operating performance and profitable growth," said Mr. Hussey. "Her track record of driving change, combined with her expertise in the home and garden industry, will benefit the organization as we execute against our growth strategy for this business. We're pleased to recognize her contributions with this well-earned promotion." "Tony has played a key leadership role in Spectrum Brands' finance organization since joining the company three years ago," continued Hussey. "His new role as Executive Vice President recognizes his broader role in the strategic planning and operational oversight of the company. We are very pleased to have the benefit of his expertise and leadership as we continue to address opportunities for value creation." Ms. Yoder, who most recently served as Executive Vice President, Home & Garden, joined Spectrum Brands in March of 2007. She previously served as Vice President and General Manager of Chemtura Corporation's Consumer Products Division. Her background includes more than 15 years experience in the consumer products and agribusiness industries in a variety of leadership positions with Chemtura, Nufarm Americas, United Agri Products, Monsanto and E.I. DuPont de Nemours. Mr. Genito has over 27 years of management, finance and operational experience, and most recently served as the company's Senior Vice President and Chief Financial Officer. He joined Spectrum Brands in 2004 as Vice President, Finance. Prior to joining the company, Mr. Genito was vice president - global supply chain/global quality operations with Schering-Plough Corporation, culminating twelve years with that company in various financial positions of increasing responsibility. He began his career with Deloitte & Touche. Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. The company operates in 13 Latin American nations including El Salvador, Guatemala, Costa Rica, Colombia and Nicaragua. * * * As reported on the Troubled Company Reporter-Latin America on Oct. 3, 2007, Fitch Ratings has assigned a 'B/RR1' rating to Spectrum Brand's new four-year, US$225 million senior secured asset-backed loan facility priced at LIBOR +225 basis points. The new facility will replace the US$200 million LIBOR Term Loan B II that is encompassed within the US$1.6 billion six-year Credit Agreement. Fitch has also affirmed these ratings: -- Issuer Default Rating at 'CCC'; -- US$1 billion term loan B at 'B/RR1'; -- EUR350 million term loan at 'B/RR1'; -- US$700 million 7.4% senior subordinated notes at 'CCC-/RR5'; -- US$2.9 million 8.5% senior subordinated notes at 'CCC-/RR5'; -- US$347 million 11.25% variable rate toggle senior subordinated notes at 'CCC-/RR5'. Fitch said the rating outlook is negative. SPECTRUM BRANDS: Names Anthony Genito as Chief Financial Officer ---------------------------------------------------------------- Spectrum Brands, Inc. disclosed that Amy J. Yoder will assume the title of President, United Industries, effective immediately. In addition, the company named Anthony L. Genito to the position of Executive Vice President and Chief Financial Officer. Both Ms. Yoder and Mr. Genito will continue their current reporting relationship to Chief Executive Officer Kent J. Hussey. "Amy is an outstanding executive who during her short tenure with Spectrum Brands has been instrumental in setting our Home & Garden division on the path to improved operating performance and profitable growth," Mr. Hussey said. "Her track record of driving change, combined with her expertise in the home and garden industry, will benefit the organization as we execute against our growth strategy for this business. We're pleased to recognize her contributions with this well-earned promotion." "Tony has played a key leadership role in Spectrum Brands' finance organization since joining the company three years ago," Mr. Hussey continued. "His new role as Executive Vice President recognizes his broader role in the strategic planning and operational oversight of the company. We are very pleased to have the benefit of his expertise and leadership as we continue to address opportunities for value creation." Ms. Yoder, 40, who most recently served as Executive Vice President, Home & Garden, joined Spectrum Brands in March of 2007. She previously served as Vice President and General Manager of Chemtura Corporation's Consumer Products Division. Her background includes more than 15 years experience in the consumer products and agribusiness industries in a variety of leadership positions with Chemtura, Nufarm Americas, United Agri Products, Monsanto and E.I. DuPont de Nemours. Mr. Genito, 50, has over 27 years of management, finance and operational experience, and most recently served as the company's Senior Vice President and Chief Financial Officer. He joined Spectrum Brands in 2004 as Vice President, Finance. Prior to joining the company, Genito was vice president - global supply chain/global quality operations with Schering-Plough Corporation, culminating twelve years with that company in various financial positions of increasing responsibility. He began his career with Deloitte & Touche. About Spectrum Brands Inc. Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. The company has approximately 8,400 employees worldwide. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Fitch Ratings has assigned a 'B/RR1' rating to Spectrum Brand's new four-year, $225 million senior secured asset-backed loan facility priced at LIBOR +225 basis points. Fitch also affirmed these ratings: Issuer Default Rating at 'CCC', $1 billion term loan B at 'B/RR1', EUR350 million term loan at 'B/RR1', $700 million 7.4% senior subordinated notes at 'CCC-/RR5', $2.9 million 8.5% senior subordinated notes at 'CCC-/RR5', and $347 million 11.25% variable rate toggle senior subordinated notes at 'CCC- /RR5'. The Rating Outlook is Negative. =============== T H A I L A N D =============== ARVINMERITOR: Discloses Updated Financial Outlook ------------------------------------------------- ArvinMeritor Inc.'s Senior Vice President, Strategic Initiatives, and Treasurer, Mary Lehmann, told investors at the Deutsche Bank Leveraged Finance Conference in Scottsdale, Ariz., that ArvinMeritor is revising its forecast for diluted earnings per share from continuing operations. Jim Donlon, executive vice president and chief financial officer, who also attended the conference, said, "In North America, we are encountering a weaker than anticipated economic environment in our Commercial Vehicle Systems business group resulting from decreased freight volumes largely due to the decline in housing construction. Our customers expect the housing recession to delay the recovery cycle for North America commercial vehicle production into the 2008 calendar year. In addition, we are incurring premium freight and labor inefficiencies mainly in Europe, associated with unanticipated demand for higher production of truck parts, which is creating capacity issues for the entire supply chain. "We anticipate that the company's earnings for the fourth quarter of fiscal year 2007 will be negatively impacted by approximately US$0.20 per diluted share due to the combination of these market conditions," he continued. "In addition, we will also report non-recurring items in the fourth quarter related to suppliers in financial distress, and tax law changes in Germany, which will require a write-down of the value of certain deferred tax assets. We expect these items to reduce our earnings per share for the fourth fiscal quarter of 2007 by approximately an additional US$0.20 per share." Fiscal Year 2008 Outlook "In fiscal year 2008, we anticipate the current soft market conditions will continue in the short term with recovery later in the year resulting in a range of US$1.40 to US$1.60 earnings per share from continuing operations before special items for fiscal year 2008," Mr. Donlon said. "While we continue to be challenged by market conditions, we are encouraged by the results we are seeing from our Performance Plus profit improvement program. As previously reported, we expect to deliver cost improvements of US$75 million in 2008." "We also are pleased by our Performance Plus growth initiatives, including ArvinMeritor being sourced as the supplier on 55 percent of the MRAP vehicles awarded thus far, with additional potential upside as new awards are announced, and our arrangement with Chery Motors in China that will ramp up to anticipated sales of US$150 million annually by 2010. In addition, our pension and retiree medical costs will decrease, largely because of improved funding and modifications to plan benefits. We anticipate that these savings, combined with our aggressive internal programs to reduce SG&A costs, will help to mitigate the soft market conditions in fiscal year 2008." To continue to maintain financial flexibility, the company has amended its revolving credit facility to modify certain covenants through the third quarter of fiscal year 2008. Based in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components serving light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. The company employs approximately 19,000 people in 25 countries. These countries include: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. On September 27, 2007, the Troubled Company Reporter reported that, following the decision of the United Auto Workers union to go out on strike against General Motors Corp., Fitch Ratings has placed these ratings of Arvinmeritor Inc. on Rating Watch Negative: -- IDR 'BB'; -- Senior secured 'BB+'; -- Senior unsecured 'BB-'. Moody's Investor Services rated B3 ArvinMeritor Inc.'s long term corporate family and probability of default on January 2007. Moody's said the outlook is stable. ARVINMERITOR INC: Amends Diluted Earnings Per Share Forecast ------------------------------------------------------------ ArvinMeritor Inc.'s senior vice president and treasurer, Mary Lehmann, told investors Wednesday at the Deutsche Bank Leveraged Finance Conference in Scottsdale, Arizona, that ArvinMeritor is revising its forecast for diluted earnings per share from continuing operations. Jim Donlon, executive vice president and chief financial officer, who also attended the conference, said, "In North America, we are encountering a weaker than anticipated economic environment in our Commercial Vehicle Systems business group resulting from decreased freight volumes largely due to the decline in housing construction. Our customers expect the housing recession to delay the recovery cycle for North America commercial vehicle production into the 2008 calendar year. In addition, we are incurring premium freight and labor inefficiencies mainly in Europe, associated with unanticipated demand for higher production of truck parts, which is creating capacity issues for the entire supply chain. "We anticipate that the company's earnings for the fourth quarter of fiscal year 2007 will be negatively impacted by approximately $0.20 per diluted share due to the combination of these market conditions," he continued. "In addition, we will also report non-recurring items in the fourth quarter related to suppliers in financial distress, and tax law changes in Germany, which will require a write-down of the value of certain deferred tax assets. We expect these items to reduce our earnings per share for the fourth fiscal quarter of 2007 by approximately an additional $0.20 per share." Fiscal Year 2008 Outlook "In fiscal year 2008, we anticipate the current soft market conditions will continue in the short term with recovery later in the year resulting in a range of $1.40 to $1.60 earnings per share from continuing operations before special items for fiscal year 2008," Mr. Donlon said. "While we continue to be challenged by market conditions, we are encouraged by the results we are seeing from our Performance Plus profit improvement program. As previously reported, we expect to deliver cost improvements of $75 million in 2008. "We also are pleased by our Performance Plus growth initiatives, including ArvinMeritor being sourced as the supplier on 55% of the MRAP vehicles awarded thus far, with additional potential upside as new awards are announced, and our arrangement with Chery Motors in China that will ramp up to anticipated sales of $150 million annually by 2010. In addition, our pension and retiree medical costs will decrease, largely because of improved funding and modifications to plan benefits. We anticipate that these savings, combined with our aggressive internal programs to reduce SG&A costs, will help to mitigate the soft market conditions in fiscal year 2008." Based in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components serving light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. The company employs approximately 19,000 people in 25 countries. These countries include: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. On September 27, 2007, the Troubled Company Reporter reported that, following the decision of the United Auto Workers union to go out on strike against General Motors Corp., Fitch Ratings has placed these ratings of Arvinmeritor Inc. on Rating Watch Negative: -- IDR 'BB'; -- Senior secured 'BB+'; -- Senior unsecured 'BB-'. Moody's Investor Services rated B3 ArvinMeritor Inc.'s long term corporate family and probability of default on January 2007. Moody's said the outlook is stable. BANK OF AYUDHYA: Huge Loss Provision May Cue Weak 2007 Earnings --------------------------------------------------------------- The Bank of Ayudhya PCL is expecting weak earnings for 2007 due to huge provisions, but is also expecting better output next year, the Bangkok Post reports, citing Reuters as a source. Year 2007 is "not a year for dramatic growth," the Post quotes BAY CEO Tan Kong Khoon. Instead, it will be year of fundamental building, Mr. Tan added. He noted that the bank made a provision of THB11.5-billion for loan-loss in the second quarter results, which resulted to a THB7.8-billion first half net loss. The Singaporean executive then told the Bangkok Post that BAY will not need to make major additional provisions. According to Reuters Estimates, 10 analysts made an average forecast of a THB3.7-billion net loss for 2007. This is a turn around from the THB1.7 billion net income last year. However, analysts expect the bank to log in a net profit of THB9.05 billion next year, Reuters says. Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. Bank of Ayudhya's subordinated debts carry Fitch Ratings Services' BB+ rating. G-STEEL: S&P Places 'B+' Long-term Ratings on CreditWatch --------------------------------------------------------- Standard & Poor's Rating Services placed its 'B+' long-term corporate credit rating on G Steel Public Co. Ltd. and its 'B+' long-term debt rating on the company's US$170 million senior unsecured notes on CreditWatch with negative implications. The CreditWatch action reflects continued pressure on the company's liquidity position and a delay in the refinancing of a US$120 million syndicated bank bridging facility. Although G Steel expects to make progress in discussions with its banks on renewing the syndicated bank facility in the next few weeks, refinancing may be delayed beyond the extension period of Oct. 30, 2007. Despite that, G Steel continues to have the capacity to meet scheduled interest payments from cash reserves and operating income. However, the company does not have the capacity to internally fund full redemption of the bank facility without raising external funding. In addition, G Steel's key financial metrics could be stretched if financing costs escalate following its refinancing of US$120 million bank facility. Standard & Poor's expects to resolve the CreditWatch status after further discussions with G Steel management on the refinancing of the bank facility and a fuller assessment of the company's financial position through the third quarter of 2007. Higher financing costs or failure to refinance the bank facility ahead of the maturity date will most likely result in the rating on G Steel being lowered. Headquartered in Bangkok, G Steel Public Company Ltd -- http://www.g-steel.com/-- produces hot rolled coils (HRC) in different grades and gauges. G Steel is a stand-alone operating entity with no related group companies. ITV PCL: Expects to Report Progress of Rehab Plan by End-October ---------------------------------------------------------------- ITV PCL is seeking an extension of the deadline for its submission of the report outlining the progress of its rehabilitation plan, as it expects to submit the report by October 31, 2007. According to a disclosure with the Stock Exchange of Thailand, the company is still currently preparing the feasibility plans and needs more to time to review the feasibility details. Headquartered in Bangkok, Thailand, ITV Public Company Limited -- http://www.itv.co.th/-- is a media company that operates a television broadcast station under an ultra-high-frequency system. ITV provides news and entertainment to the public through television and the Internet via its 52 network stations throughout the country. Going Concern Doubt After reviewing ITV PCL's financial statements for the quarter ended March 31, 2007, Prasan Chuaphanich at PricewaterhouseCoopers ABAS Ltd. raised significant doubt on the company's ability to continue as a going concern. According to Mr. Prasan, the company's concession agreement was revoked by the Office of the Permanent Secretary of the Office of the Prime Minister as the company did not pay the unpaid concession fee totaling THB2.210 billion and the interest on the total unpaid concession fee at 15% per annum including the penalty arising from the alteration of television programming of THB97,760 million. The company's concession agreement was revoked on 7 March 2007 by the PMO therefore, the company ceased its operation at that date. In addition, the PMO claimed the undelivered value of assets under concession amounting to Baht 656 million plus interest on 30 March 2007. On 4 January 2007 and 9 May 2007, the Company filed the statements of claim regarding the THB2.210-billion unpaid concession plus the THB97.760-million interest, as well as the undelivered value of assets under concession plus interest to the arbitration process. The company is in the process of preparing development plans to resolve the cause of delisting and a plan to undertake new business and rehabilitation for the Stock Exchange of Thailand after the company seeks and obtains approval from the company's shareholders. Mr. Prasan also cited the company's equity and working capital deficits. ********* 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 ***