TCRAP_Public/080204.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, February 4, 2008, Vol. 9, Issue 24

                          Headlines

A U S T R A L I A

AKOONA PTY: Members Receive Wind-Up Report
AUGUSTE DEVELOPMENTS: Placed Under Voluntary Liquidation
BUCKEYE TECH: Earns US$13.8 Mil. in Quarter Ended Dec. 31, 2007
CHATTEM INC: Fiscal Year 2007 Net Income Up to US$59.7 Million
E-BIZ SERVICES: Inability to Pay Debts Prompts Wind-Up

FARRORR PTY: Commences Liquidation Proceedings
GLEN KINROSS: Members Opt to Shut Down Firm
KIRI TECH: Undergoes Liquidation Proceedings
POLAREX PTY: Members Receive Wind-Up Report
SCO GROUP: Tanner LC Expresses Going Concern Doubt

SHC PROPERTIES: Placed Under Voluntary Liquidation
TAMARAMA HOLDINGS: Commences Wind-Up Proceedings
TINDALE PTY: Commences Liquidation Proceedings

* AUSTRALIA: Fitch To Hold 2008 Outlook Teleconference Today


C H I N A,  H O N G  K O N G,  T A I W A N

EASTERN BROADCASTING: Fitch Affirms BB- IDR with Neg. Outlook
HERCULES INC: Moody's Reviews Ratings for Possible Upgrade
PETROLEOS DE VENEZUELA: Inks Urdaneta Lago Pact with Royal Dutch
ROYAL CARIBBEAN: Reports US$603.4-Million Net Income for 2007


I N D I A

BALLARPUR INDUSTRIES: Board Fixes March 10 Record Date for Split
BHARTI AIRTEL: Granted Addtional 2G Spectrum in Five Circles
DECCAN AVIATION: Board OKs 7:3 Swap Ratio for Kingfisher Merger
DCM SHRIRAM: Incurs INR27MM Net Loss in Qtr. Ended Dec. 31, 2007
EASTMAN KODAK: Earns US$92 Million in 2007 Fourth Quarter

TATA MOTORS: Net Profit in Oct-Dec '07 Down 2.8% to INR499 Mil.
TATA STEEL:  Starts Effecting Changes to Corus' Top Management


I N D O N E S I A

ALCATEL-LUCENT: To Post 4Q & Full-Year 2007 Results on Feb. 8
BANK NISP: Pefindo Affirms "idAA-" Company Rating
GARUDA INDONESIA: Seeks Partner for Pilot Training School
PERUSAHAAN LISTRIK: Gets US614.8 Mil. in Loans from China Exim


K O R E A

DYNCORP INT'L: Earns US$38.1MM in Full Year Ended Dec. 28, 2007
HYNIX SEMICONDUCTOR: Posts Loss in 4Q as Chip Price Drops


J A P A N

ALITALIA SPA: Wants EUR750 Mln Capital Hike in First Half 2008
FIDELITY NATIONAL: Paying US$0.30 Per Share Dividend on March 27
FORD MOTOR: Introducing Edge Brand in Brazil
HARMAN INTERNATIONAL: Names John Stacey as VP & Chief HR Officer


K O R E A

DURA AUTOMOTIVE: Wants To Sell 9 Properties to IRG for US$19.2MM
DURA AUTOMOTIVE: Jacksonville Property Buyer Withdraws Offer
DYNCORP INT'L: Earns US$38.1 Million in Full Year Ended Dec. 28


M A L A Y S I A

MALAYSIA AIRLINES: May Earn MYR1.5 Bil. Annually by 2012


N E W  Z E A L A N D

BOOTH FAMILY: Faces CIR's Wind-Up Petition
CALL NZ: Debt Recovery Files Wind-Up Petition for Firm
CLEAR CHANNEL: Pending US$19B Buyout Unaffected by Market Frets
DIRECT CAPITAL: Taps Shane Francis Hussey as Liquidator
DUCT INSTALLATION: Court to Hear Wind-Up Petition on Feb. 14

KRONOS INC: Discloses New Trails in Workforce Management
MACE & MOUNTAIN: Placed Under Voluntary Liquidation
MELANGE HOLDINGS: Wind-Up Petition Hearing Slated for Feb. 28
NED KELLY: Wind-Up Petition Hearing Slated for April 24
NEWMARKET ENTERTAINMENT: Taps Bryan Williams as Liquidator

WEST SKY: Subject to CIR's Wind-Up Petition
ZIG ZAG: Creditors' Proofs of Debt Due on February 28
KRONOS INC: Discloses New Trails in Workforce Management

* NEW ZEALAND: Fitch To Hold 2008 Outlook Teleconference Today


P H I L I P P I N E S

FEDDERS CORP: Bidding Procedure OK'd for Sale of Unit's Assets
FLEXTRONICS INTERNATIONAL: Completes Acquisition of Avail
RIZAL COMMERCIAL: Moody's Changes B3 Rating Outlook to Positive
PHILLIPPINE NAT'L BANK: Posts PHP1.23-Bil. Net Income in 2007
SCOTTISH RE: Seth Gardner Joins Board of Directors

VULCAN INDUSTRIAL: To Enter Into Farm-Out Agreement with Intex

* PHILIPPINES: Moody's Assigns B1 Rating on US$500-Mil. Bond


S I N G A P O R E

ALLCO REIT: Moody's Downgrades Corporate Family Rating to Ba1
EPOCH MONTAGE: Court Enters Wind-Up Order
FRANKEL MOTOR: Wind-Up Petition Hearing Slated for February 15
MEGAVISA SOLUTIONS: Creditors Proofs of Debt Due by February 8
POH LIAN: Creditors' Meeting Slated for February 4


T H A I L A N D

ARVINMERITOR: Incurs US$12MM Net Loss in Quarter Ended Dec. 30
ARVINMERITOR: Expected Neg. Cash Flow Cues Fitch to Cut Ratings


                            - - - - -

=================
A U S T R A L I A
=================


AKOONA PTY: Members Receive Wind-Up Report
------------------------------------------
The members of Akoona Pty. Ltd. met Jan. 31, 2007, and heard the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Peter Geroff
          c/o Ferrier Hodgson (Queensland)
          Chartered Accountants
          Level 7, 145 Eagle Street
          Brisbane, Queensland 4000
          Australia

Located at Brisbane, in Queensland, Australia, Akoona Pty Ltd is
an investor relation company.


AUGUSTE DEVELOPMENTS: Placed Under Voluntary Liquidation
--------------------------------------------------------
During a general meeting held on Dec. 11, 2007, the members of
Auguste Developments Pty. Ltd. resolved to voluntarily wind up
the company's operations.

Kimberley Andrew Strickland and Christopher Michael Williamson
were then appointed as liquidators.

The liquidators can be reached at:

          Kimberley Andrew Strickland
          Christopher Michael Williamson
          SimsPartners
          Dwyer Durack House, Level 12
          40 St George's Terrace
          Perth, Western Australia 6000
          Australia

Auguste Developments Pty. Ltd., which is also trading as Auguste
Corporation, is an operator of apartment buildings.  The company
is located in Perth, Australia.


BUCKEYE TECH: Earns US$13.8 Mil. in Quarter Ended Dec. 31, 2007
---------------------------------------------------------------
Buckeye Technologies Inc. reported net income of US$13.8 million
on net sales of US$210.9 million for the three months ended
Dec. 31, 2007, compared to net income of US$3.8 million on net
sales of US$184.7 million for the same period in 2006.

Chairman and Chief Executive Officer John B. Crowe said, "We had
an exceptional quarter. Second quarter net sales were up 14%
compared to the same period last year.  Sales of US$211 million
are our highest revenue quarter ever.  The earnings improvement
is a combination of higher pricing, higher specialty wood volume
and cost control."

Mr. Crowe went on to say, "We are pleased with the quarter and
year-to-date revenue and income growth.  Our markets remain
solid and we will benefit from price increases that we
implemented in January.  In the current quarter, we anticipate
lower nonwovens production and revenue due to our previously
announced volume reduction from our Delta nonwovens facility.
Additionally, we expect higher manufacturing costs at our
Florida specialty wood facility due to planned maintenance
inspections.  While the just completed quarter's earnings
performance will be difficult to repeat, we do anticipate strong
performance in the January-March quarter 2008."

                  About Buckeye Technologies

Headquartered in Memphis, Tennessee, Buckeye Technologies Inc.
(NYSE: BKI) -- http://www.bkitech.com/-- manufactures and
markets specialty fibers and nonwoven materials.  The company
currently operates facilities in the United States, Germany,
Canada, and Brazil.  Its products are sold worldwide to makers
of consumer and industrial goods.

                        *     *     *

In June 2007, Moody's Investors Service's upgraded Buckeye
Technologies Inc.'s corporate family rating to B1 from B2 and
maintained a stable outlook.  All other ratings were also
upgraded by one notch while the unsecured notes were affirmed at
B2.


CHATTEM INC: Fiscal Year 2007 Net Income Up to US$59.7 Million
--------------------------------------------------------------
Chattem Inc. reported its financial results for the fiscal
fourth quarter and year ended Nov. 30, 2007.

              Fiscal Year 2007 Financial Results

Total revenues for fiscal 2007 rose to a record
US$423.4 million, an increase of 40.9%, compared to total
revenues of US$300.5 million in fiscal 2006.  Revenue growth for
the fiscal year was driven by the five acquired brands and
continued growth of the Gold Bond and Icy Hot businesses, offset
by declines in the Icy Hot Pro-Therapy(R) and Dexatrim(R)
franchises, the latter of which was impacted by unprecedented
competition in the weight loss category as well as difficult
comparisons to the fiscal 2006 launch period of Dex Max2O(R).  
Excluding the impact of the acquired brands and Icy Hot Pro-
Therapy, total revenues increased 5% compared to fiscal 2006.

Net income for the fiscal year increased to a record
US$59.7 million, compared to US$45.1 million for fiscal 2006.

Net income for fiscal 2007 included a loss on early
extinguishment of debt and SFAS 123R employee stock option
expense.  Net income for fiscal 2006 included a debt
extinguishment charge, litigation settlement items and SFAS 123R
employee stock option expense.  As adjusted to exclude these
items, net income for fiscal 2007 was US$65.1 million, compared
to US$37.5 million for fiscal 2006, and earnings per share were
US$3.36 compared to US$1.95 for fiscal 2006, a 72.3% increase.

              Fourth Quarter Financial Results

Total revenues for the fourth quarter of fiscal 2007 were
US$100.6 million, compared to total revenues of US$65.1 million
in the prior year quarter, representing a 54.5% increase.
Revenue growth for the quarter was led by the five acquired
brands as well as strong performances from Gold Bond and
Icy Hot.  Offsetting these increases was a reduction in sales of
Dexatrim and lower sales of Icy Hot Pro-Therapy.  Excluding the
impact of the acquired brands and Icy Hot Pro-Therapy, total
revenues increased 3% compared to the prior year quarter.

Net income for the quarter rose to US$14.8 million, compared to
US$4.9 million for the prior year quarter.  Net income for the
fourth quarter of fiscal 2007 included SFAS 123R employee stock
option expense.  Net income for the fourth quarter of fiscal
2006 included litigation settlement items and SFAS 123R employee
stock option expense.  As adjusted to exclude these items, net
income for the fourth quarter of fiscal 2007 was US$15.8
million, compared to US$6.0 million for the prior year quarter.

In the fourth quarter of fiscal 2007, the Company increased the
reserves for Icy Hot Pro-Therapy retail and in-house inventory
exposure by approximately US$7.0 million, or US$0.24 per share,
which resulted in lower revenue and reduced gross margins during
the fourth quarter of fiscal 2007.  This increase in reserves
was based on a detailed evaluation of the Icy Hot Pro-Therapy
business.  Management believes this amount fully addresses any
significant product return or in-house inventory obsolescence
exposure.

"The company experienced the most successful year in its 128
year history," said Zan Guerry, Chattem's Chairman and Chief
Executive Officer.  "Early in the year, we made the exciting
acquisition of five brands from Johnson & Johnson and were able
to integrate those brands into our organization smoothly and
ahead of schedule.  The acquisition, combined with the growth
of our existing business, resulted in a 41% increase in total
revenues for the year to a record US$423 million and even more
impressive earnings growth," Mr. Guerry stated.  "In reference
to the balance sheet," Guerry commented further, "we were able
to finance the acquisition of the five brands on very favorable
terms and have put in place a very solid and effective capital
structure.  Our strong operating cash flows for fiscal 2007
enabled us to reduce debt more rapidly than we anticipated at
the time of the acquisition while also repurchasing over 400,000
shares of our common stock for US$23.6 million, or an average
cost of US$58.98 per share."

"Looking to fiscal 2008," Mr. Guerry continued, "we have
tremendous momentum and robust advertising support planned for
our Big 6 brands, Gold Bond(R), Icy Hot(R), ACT(R), Cortizone-
10(R), Selsun(R) and Unisom(R), which accounted for
approximately 72% of our total revenues in fiscal 2007.  The
strength of our Big 6 brands, together with an impressive line
up of new products, expected gross margin improvement and the
ability to rapidly deleverage with strong cash flows, has led us
to increase our earnings per share guidance for fiscal 2008 to a
range of US$4.00 to US$4.20 per share before SFAS 123R and debt
extinguishment charges."

Key Highlights:

   * Gross margin for the quarter rose to 70.0%, compared to
     68.2% for the prior year quarter, and 69.5% for fiscal
     2007, compared to 68.7% for fiscal 2006.  Gross margin for
     fiscal 2008 is expected to approach historical levels as a
     result of the full year impact of the in-house
     manufacturing of certain of the five acquired brands and
     product mix.

   * Advertising and promotion expense (A&P) for the quarter
     increased by US$5.5 million to US$26.0 million, or 25.8%
     as a percentage of total revenues, and rose by US$16.1
     million to US$112.2 million, or 26.5% of total revenues,
     for the fiscal year, compared to US$96.1 million, or 32.0%
     of total revenues in fiscal 2006.  The decline in A&P
     expense as a percentage of total revenues from fiscal 2006
     reflected unusually high A&P expenses in fiscal 2006 due
     primarily to the launch of Icy Hot Pro-Therapy.  The
     company anticipates A&P spending to increase significantly
     on a dollar basis for fiscal 2008 and remain consistent
     with historical levels of 26% to 28% as a percentage of
     total revenues.

   * Selling, general and administrative expenses decreased to
     15.3% of total revenues for the quarter, compared to 20.0%
     for the prior year quarter, and to 13.6% of total revenues
     for the fiscal year, compared to 15.6% for fiscal 2006.  
     For fiscal 2008, SG&A expenses are not expected to rise
     commensurate with increases in total revenues as the
     company continues to leverage its operating infrastructure.

   * For the fiscal year, cash flows from operations increased
     59.4% to US$86.7 million compared to US$54.4 million for
     fiscal 2006.  Free cash flow, defined as cash flows from
     operations less capital expenditures, was US$80.4 million,
     up 61.8%, compared to US$49.7 million for fiscal 2006.
     Capital expenditures for the fiscal year were
     US$6.3 million with more than half of these expenditures
     attributable to the integration of in-house manufacturing
     for certain of the five acquired brands.

   * Earnings before interest, taxes, depreciation and
     amortization increased 139% to US$32.2 million, or 32.0% of
     total revenues, for the quarter and increased 82.6% to
     US$133.9 million, or 31.6% of total revenues, for the
     fiscal year, compared to US$73.3 million, or 24.4% of total
     revenues in fiscal 2006.

   * Since acquiring the five brands on Jan. 2, 2007, the
     company has reduced total debt by US$62.5 million to
     US$508.0 million as of Nov. 30, 2007.  During that same
     period, the company funded the purchase of a net bond
     hedge of US$12.1 million in connection with the issuance
     of the 1.625% senior convertible notes in April 2007;
     acquired the ACT business in Western Europe and the
     worldwide trademark rights to ACT for US$4.1 million; and
     repurchased 400,129 shares of the Company's common stock
     for US$23.6 million, or an average cost of US$58.98 per
     share.

                    Fiscal 2008 Guidance

The company currently expects earnings per share for fiscal 2008
to be in the range of US$4.00 to US$4.20 as compared to our
earlier estimate of US$3.90 to US$4.10, in each case excluding
stock option expense under SFAS 123R and any loss on debt
extinguishment.  Stock option expense under SFAS 123R for fiscal
2008 is estimated to be US$0.21 per share.

Chattanooga, Tenn.-based Chattem Inc. manufactures and markets
branded consumer products, including over-the-counter healthcare
products and toiletries and skin care products. Its products
include Gold Bond medicated powder, Icy Hot topical analgesic,
Dexatrim appetite suppressant, and Bullfrog sunblock. Chattem
has operations in the U.K., Australia, and Puerto Rico.

                        *     *     *

Chattem Inc.'s 7% Exchange Senior Subordinated Notes due 2014
carry Moody's Investors Service's 'B2' rating and Standard &
Poor's 'B' rating.


E-BIZ SERVICES: Inability to Pay Debts Prompts Wind-Up
------------------------------------------------------
During a general meeting held Dec. 21, 2007, the members of
E-biz Services Pty. Ltd. agreed to voluntarily liquidate the
company's business due to its inability to pay its debts.

Peter Anthony Lucas was then appointed as liquidator.

The Liquidator can be reached at:

          Peter Anthony Lucas
          P. A. Lucas & Co.
          Chartered Accountants
          ING Building, Level 8
          100 Edward Street
          Brisbane, Queensland 4000
          Australia
          Telephone:(07) 3232 5200
          Facsimile:(07) 3003 0334

E-Biz Services Pty Ltd provides business services.  The company
is located at Spring Hill, in Queensland, Australia.


FARRORR PTY: Commences Liquidation Proceedings
----------------------------------------------
During a general meeting held on Dec. 18, 2007, the members of
Farrorr Pty. Ltd. agreed to voluntarily wind up the company's
operations.

David Michael Stimpson and Terrence John Rose were then
appointed as liquidators.

The Liquidators can be reached at:

          David Michael Stimpson
          Terrence John Rose
          SV Partners
          Insolvency Accountants and Business Solutions
          SV House, 138 Mary Street
          Brisbane, Queensland 4000
          Australia
          Web site: http://www.svpartners.com.au

Farrorr Pty. Ltd. operates  automotive repair shops.  The
company is located at Craigieburn in Victoria, Australia.


GLEN KINROSS: Members Opt to Shut Down Firm
-------------------------------------------
At an extraordinary general meeting held on Dec. 20, 2007, the
members of Glen Kinross Investments Pty. Ltd. resolved to
voluntarily wind up the company's operations.

Terrence James Smith was appointed as liquidator.

The Liquidator can be reached at:

          Terrence James Smith
          c/o Allens Australia Pty Ltd
          1st Floor, 1925 Logan Road
          Upper Mt Gravatt, Queensland 4122
          Australia

Located at Wavell Heights, in Queensland, Australia, Glen
Kinross Investments Pty. Ltd. is an investor relation company.


KIRI TECH: Undergoes Liquidation Proceedings
--------------------------------------------
At an extraordinary general meeting held Dec. 12, 2007, the
members of Kiri Tech Pty. Ltd. agreed to voluntarily liquidate
the company's business.

Gary John Anderson was then appointed as liquidator.

The liquidator can be reached at:

          Gary John Anderson
          P.O. Box 1661
          West Perth, Western Australia 6872
          Australia
          Telephone:(08) 9486 7822
          Facsimile:(08) 9226 4250
          e-mail garya@iinet.net.au

Located at Fremantle in Western Australia, Kiri Tech Pty Ltd is
an investor relation company.


POLAREX PTY: Members Receive Wind-Up Report
-------------------------------------------
The members of Polarex Pty. Ltd. met Jan. 22, 2008, and heard
the liquidator's report on the comapny's wind-up proceedings and
property disposal.

The company's liquidator is:

          Graeme Trevor Lean
          G T Lean & Associates
          424 Fitzgerald Street
          North Perth, Westren Australia 6006
          Australia

Polarex Pty. Ltd. provides airport terminal services.  The
company is located at Cloverdale in Western Australia


SCO GROUP: Tanner LC Expresses Going Concern Doubt
--------------------------------------------------
Tanner LC in Salt Lake City, Utah, raised substantial doubt
about the ability of The SCO Group, Inc., to continue as a going
concern after it audited the company's financial statements for
the year ended Oct. 31, 2007.

The auditing firm related that the company is a debtor-in-
possession under Chapter 11 of the U.S. Bankruptcy Code, has
experienced significant and continuing net losses, and is faced
with substantial contingent liabilities as a result of certain
adverse legal rulings.

The company posted a net loss of US$6,826,000 on total revenue
of US$21,656,000 for the year ended Oct. 31, 2007, as compared
with a net loss of US$16,598,000 on total revenue of
US$29,239,000 in the prior year.

A significant portion of the net loss and the cash used in
operating activities was associated with the company protecting
and defending its intellectual property rights.  The company has
an accumulated deficit of US$258,366,000 as of Oct. 31, 2007,
and minimal working capital.  As of Oct. 31, 2007, the company
had a total of US$5,554,000 in cash and cash equivalents and
US$3,099,000 in restricted cash, of which US$1,833,000 is
designated to pay for experts, consultants and other expenses in
the SCO Litigation, and the remaining US$1,266,000 of restricted
cash is payable to Novell, Inc., inclusive of US$118,000
included in liabilities subject to compromise for its retained
binary royalty stream.

At Oct. 31, 2007, the company's balance sheet showed
US$14,309,000 in total assets, US$10,555,000 in total
liabilities, and US$3,754,000 stockholders' equity.  

A full-text copy of the company's 2007 annual report is
available for free at http://ResearchArchives.com/t/s?2799

                      About 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, the United
Kingdom, among others.

The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337).  Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent.  The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors.  The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008.  The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.


SHC PROPERTIES: Placed Under Voluntary Liquidation
--------------------------------------------------
On Dec. 17, 2007, a special resolution was passed to voluntarily
liquidate SHC Properties Pty Ltd's business.

Scott James McMurtrie was then appointed as liquidator.

                    About SHC Properties

SHC Properties Pty Ltd is involved with real estate agents and
managers.  The company is located at  Robina Town Centre, in
Queensland, Australia.


TAMARAMA HOLDINGS: Commences Wind-Up Proceedings
------------------------------------------------
The members of Tamarama Holdings Pty. Ltd. met Dec. 17, 2007,
and agreed to voluntarily liquidate the company's business.

E. R. Verge and G. A. Lopez were appointed as liquidators.

The liquidators can be reached at:

          E. R. Verge
          G. A. Lopez
          Melsom Robson Chartered Accountants
          Unit 44B, Level 1
          Piccadilly Square West
          7 Aberdeen Street
          Perth, Western Australia 6000
          Australia

                   About Tamarama Holdings

Located at Paradise Point, in Queensland, Australia, Tamarama
Holdings Pty. Ltd. is an investor relation company.


TINDALE PTY: Commences Liquidation Proceedings
----------------------------------------------
At an extraordinary general meeting held on December 12, 2007,
the members of Tindale Pty Ltd resolved to voluntarily wind up
the company's operations.

Gary John Anderson was appointed as liquidator.

The liquidator can be reached at:

          Gary John Anderson
          Chartered Accountant
          Level 1, 12 Prowse Street
          West Perth, Western Australia 6005
          Australia
          Telephone:(08) 9486 7822
          Facsimile:(08) 9226 4250
          e-mail: garya@iinet.net.au

Located at Fremantle, in Wesyern Australia, Australia, Tindale
Pty Ltd is an investor relation company.


* AUSTRALIA: Fitch To Hold 2008 Outlook Teleconference Today
------------------------------------------------------------
Fitch Ratings will be hosting a teleconference Feb. 4, 2008, at
10 a.m. (Australian EDST)/7AM SG/HK ) to discuss the agency's
2008 outlook for Australian utilities and oil and gas sectors.

The teleconference will be hosted by Fitch's Australia energy
and utilities team: Steve Durose, Regional Co-Head of Energy &
Utilities, Asia-Pacific; Gavin Madson, Director; Janet
Willoughby, Associate Director and Sajal Kishore, Associate
Director.  The team will discuss the outlook for the sector in
2008 and the factors, which Fitch expects will influence credit
quality in the coming year.

The call coincides with the release of three related reports  
-- "Australian Utilities: Safe Haven in 2008?", "Australian Oil
& Gas: Credit Outlook 2008" and "New Zealand Utilities: Credit
Outlook 2008" -- which will be published today and available on
http://www.fitchratings.comand http://www.fitchratings.com.au

Presentation slides for the conference call will be available at
http://www.fitchratings.com.aufrom 9:30 a.m. EDST on  
Feb. 4, 2008.

To register for this event, please contact Katrina Stuve at +612
8256 0326/ Katrina.Stuve@fitchratings.com

The are the details of the teleconference:

     -- Australian Toll Free: 1800 730 003
     -- New Zealand Toll Free: 0800 442 062
     -- Hong Kong Toll Free: 800 908 771
     -- Japan Toll Free: 0053 125 0002
     -- Singapore Toll Free: 800 616 3006
     -- UK Toll Free: 0800 169 8227
     -- U.S./Canada: 1877 546 5354
     -- Alternate International: +612 9112 4629
     -- Call Leader: Steve Durose

Replay Information:

     -- A replay will be available after 12 p.m. AEDST on  
        Feb. 4, 2008 and will remain on
        http://www.fitchratings.comuntil Feb. 11.

     -- Australia: 1800 735 513 and key in identification number
        125422.

     -- International: +612 8524 1009 and key in identification
        number 125422.




==========================================
C H I N A,  H O N G  K O N G,  T A I W A N
==========================================


EASTERN BROADCASTING: Fitch Affirms BB- IDR with Neg. Outlook
-------------------------------------------------------------
Fitch Ratings has removed Taiwan's Eastern Broadcasting Co.,
Ltd.'s ratings from rating watch negative and affirmed them, as
follows:

     -- Long-term foreign and local currency Issuer Default
        Ratings: 'BB-';

     -- National Long-term rating: 'BBB(twn)':

     -- National Short-term rating: 'F3(twn)';

     -- TWD50 million senior unsecured domestic bond due June
        2008: 'BB-' and 'BBB(twn)'; and

     -- TWD300 million senior unsecured domestic bond due July
        2008: 'BB-' and 'BBB(twn)'.

The rating outlook is negative.

Fitch placed the ratings of EBC on RWN on June 29, 2007.  The
RWN action reflected the potential further deterioration to
EBC's credit profile in the event that its operating performance
did not stabilise, while planned asset sales or capital
injection failed to materialise.

The affirmation of EBC's rating are a reflection of a rebound of
its operating performance in the second half of 2007 and the
likely improvement of its corporate governance following recent
top management changes, although the company has yet to complete
its planned disposal of fixed assets and a capital injection via
a new share issuance.  "The Negative Outlook mainly reflects
Fitch's concern that EBC's liquidity remains in a tight
position," said Kevin Chang, Associate Director of Fitch's
Telecommunication, Media and Technology team.

Fitch notes that to meet its short term financing demands EBC
relies on the prepayment of channel fees from its affiliate,
Kbro Company, Taiwan's largest multiple system operator of cable
television (CATV).  "Without an additional cash injection, Fitch
estimates that EBC in the short run needs to refinance around
TWD1 billion to TWD1.5 billion to meet its debt obligation in
2008," added Mr. Chang.

EBC in 2007 announced a plan to issue new shares via a private
placement to raise a sum of about TWD3 billion.  If completed,
this cash injection will significantly improve EBC's capital
structure and short-term liquidity.  Nevertheless, this capital
injection plan may cause potential management uncertainty, as
the new investors will have a chance to become the largest
shareholder of EBC.  So far, no potential investors have signed
a letter of intent with EBC in this regard.

Fitch notes that EBC maintains its leading market status in a
shrinking advertising market in Taiwan.  In 2007, EBC retained
its No. 1 and No. 2 market share among Taiwan's CATV channel
operators, in terms of advertising income and viewer ratings.
EBC's internal accounts revealed stabilisation of its
profitability in H207, with improved viewer ratings in some of
its channels, as well as corporate restructuring and
adjustments.  Compared with a 28% drop yoy during H107, EBC's
standalone revenues declined about 18% yoy for the whole of
2007.  EBC's operating income also turned positive in the last
quarter of 2007.

                 About Eastern Broadcasting

Eastern Broadcasting Co., Ltd. --
http://www.ettv.com.tw/ettv2003/01/engindex1-3.htm-- provides  
cable TV channels and co-branded multimedia outlets Taiwan.  In
2004, ETTV's eight channels secured the highest cable viewer
ratings in Taiwan, averaging 17.3% of market share (source: AC
Nielson).  In terms of revenue, EBC also led the field in 2005,
earning US$193 million through television, radio, Internet, and
newspaper enterprises.  EBC is also leading the way to
developing overseas markets.  ETTV family channels can now be
seen in 66 countries, and is the biggest private Chinese-
language media in the world.


HERCULES INC: Moody's Reviews Ratings for Possible Upgrade
----------------------------------------------------------
Moody's Investors Service placed the Ba2 corporate family rating
and other debt ratings Hercules Incorporated on review for
possible upgrade.  The reviews reflect the company's successful
efforts at debt reduction in past years and most recently in
2007.  The company reduced balance sheet debt by roughly
US$200 million in 2007 (to about US$795 million) and that this
reduction, along with strong cash flows, has caused credit
metrics to improve to levels that are strong relative to the Ba2
rating, Moody' assigned a positive outlook to the company's
ratings in June of 2007 in anticipation of the company's
positive performance.  At that time Moody's stated that provided
that capital expenditures remain moderate, there are no large
acquisitions and prospective dividend actions/share repurchases
are prudently sized, the company should be able to generate
retained cash flow to adjusted total debt above 20%, free cash
flow to adjusted total debt of over 10%, and a fixed charge
coverage ratio of over 4.5 times.  If these metrics were
realized, Moody's indicated it could reassess the
appropriateness of the Ba2 ratings after the end of 2007.  The
review also reflects Moody's expectation of further modest debt
reduction in 2008 and 2009, after which Moody's expects absolute
debt levels to stabilize.  The review, which is expected to be
completed by the end of March of 2008, will focus on several
issues.  Moody's will seek to better understand management's
ongoing financial philosophy as it relates to 1) acquisitions;
2) potential changes in the secured structure of the company's
debt along with incremental debt reduction; and 3) uses of
excess cash flow and the future plans of returning such cash to
shareholders.  In addition, Moody's will seek to understand the
sustainability of the company's strong operating performance in
the face of a potentially slowing global economy and review its
asbestos
exposures to insure that the positive trends are sustainable.

On Review for Possible Upgrade:

  -- Corporate Family Rating: Ba2

  -- Probability of Default Rating: Ba2

  -- Guaranteed Senior Secured Revolving Credit Facility due
     April 2009, Baa3, LGD2, 18%

  -- Guaranteed Senior Secured Term Loan B due October 2010,
     Baa3, LGD2, 18%

  -- 6.60% Guaranteed Senior Secured Putable Notes due 2027,
     Baa3, LGD2, 18%

  -- 6.75% Guaranteed Senior Subordinated Notes due 2029, Ba3,
     LGD4, 61%

  -- 8.00% Convertible Subordinated Debentures due 2010, B1,
     LGD5, 89%

  -- 6.50% Junior Subordinated Deferrable Int Debentures due
     2029, B1, LGD5, 89%

  -- Multiple Seniority Shelf

Outlook, Changed To Rating Under Review From Positive.  
Approximately US$900 million of debt securities affected.

Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE:HPC)
-- http://www.herc.com/-- manufactures and markets chemical  
specialties globally for making a variety of products for home,
office and industrial markets.  The company has its regional
headquarters in China and Switzerland, and a production facility
in Brazil.


PETROLEOS DE VENEZUELA: Inks Urdaneta Lago Pact with Royal Dutch
----------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA said in
a statement that it has signed a memorandum of understanding
with Anglo-Dutch oil company Royal Dutch Shell for the study of
the exploration and production potential of Urdaneta Lago in
Zulia.

According to Petroleos de Venezuela's statement, the project is
aimed at boosting output in western Venezuela.

Business News Americas relates that Petroregional del Lago, a
60:40 joint venture between Petroleos de Venezuela and Royal
Dutch, operates at the north of the Urdaneta-Oeste block on the
Maracaibo lake.

According to BNamericas, the study will be launched this week.  
The study will cover a technical and economic analysis of the
reserves.  

Petroleos de Venezuela and Royal Dutch will also study the
present and future infrastructure requirements and the amount of
investment required to implement the plan, BNamericas reports.

                      About Royal Dutch

Royal Dutch Shell plc is engaged in all principal aspects of the
oil and natural gas industry, and also has interests in
chemicals and additional interests in power generation and
renewable energy (mainly in wind and advanced solar energy).  
The company operates in five segments: Exploration & Production,
which searches for and recovers oil and natural gas around the
world and is active in 38 countries; Gas & Power, which
liquefies and transports natural gas, and develops natural gas
markets and related infrastructure; Oil Products, which include
all of the activities necessary to transform crude oil into
petroleum products and deliver these to customers worldwide;
Chemicals, which produces and sells petrochemicals to industrial
customers globally, and Other Industry Segments and Corporate,
which include Renewables and Hydrogen.  In May 2007, Rubis
acquired the German liquefied petroleum gas distribution
subsidiary from Shell.

                About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *     *     *

In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.


ROYAL CARIBBEAN: Reports US$603.4-Million Net Income for 2007
-------------------------------------------------------------
Royal Caribbean Cruises Ltd. disclosed record net income for the
fourth quarter 2007 of US$70.8 million, or US$0.33 per share,
compared to net income of US$46.6 million, or US$0.22 per share,
in 2006.  Revenues were better than expected, driven by stronger
close-in bookings, while fuel costs were higher due to rising
fuel prices.  Revenues for the fourth quarter 2007 increased to
US$1.5 billion from revenues of US$1.2 billion in the fourth
quarter 2006.

Net income for the full year 2007 was US$603.4 million, or
US$2.82 per share, compared to net income of US$633.9 million,
or US$2.94 per share, for the full year 2006.  Revenues for the
full year 2007 increased to US$6.1 billion from revenues of
US$5.2 billion for the full year 2006.

"It is very gratifying to see such a strong performance,
especially in light of the broader consumer and economic
environment," said Chairperson and Chief Executive Officer,
Richard D. Fain.  "We are particularly pleased with the solid
yield performance of our brands, which produced such healthy
earnings despite significantly higher fuel costs."  Higher fuel
prices increased operating costs by US$45 million in 2007, which
reduced earnings per share by US$0.21.

Mr. Fain continued, "Despite pressures on consumer spending,
yields for the year were consistent with our original
expectations, growing 0.3% on a comparable basis (i.e. excluding
Pullmantur).  This is a testament to the strength and momentum
of our products."

Key metrics for the fourth quarter 2007, as compared to the
fourth quarter 2006, were:

   -- Net Yields on a comparable basis increased 3.2%; higher
      than guidance of an increase in a range around 2%.
      Including Pullmantur, Net Yields increased 11.0%.

   -- Excluding fuel, Net Cruise Costs per APCD on a comparable
      basis  increased 3.4%; higher than guidance of an increase
      in a range around 2%.  Including Pullmantur, Net Cruise
      Costs per APCD increased 12.1%.

   -- Fuel prices increased 41% versus the fourth quarter of
      2006, while fuel costs per APCD increased 19%, benefiting
       from energy saving initiatives and hedging.  The average
       at-the-pump price for the quarter was US$555 per metric
       ton versus US$395 per metric ton in 2006.

   -- Net Cruise Costs per APCD on a comparable basis increased
      5.9%; higher than guidance of an increase in a range
      around 2%.  Including Pullmantur, Net Cruise Costs per
      APCD increased 13.4%.

                        2008 Outlook

The company expects to have a 5.1% increase in capacity in 2008,
driven primarily by a full year of Liberty of the Seas, the
April delivery of Independence of the Seas, Pullmantur's
purchase of Pacific Star, and the November delivery of Celebrity
Solstice.

"The early indications from the 'wave period' are encouraging,"
said Mr. Fain. "We continue to see healthy booking volumes and
improved pricing over the same time last year.  Based on this
improving revenue performance and our focus on controlling
costs, we expect 2008 to be a year of double-digit improvement
in EPS."

The company does not forecast fuel prices and its cost guidance
for fuel is based on current "at-the-pump" prices including any
hedge impacts.  Fuel prices remain volatile; however, the
company has taken a number of actions to reduce energy
consumption and fuel expense.  The company is 52% and 45% hedged
for the first quarter and full year, respectively.  If fuel
prices for 2008 remain at today's level, fuel costs for the
first quarter 2008 would be approximately US$145 million, or
US$492 per metric ton.  The corresponding figures for the full
year 2008 would be approximately US$595 million, or US$484 per
metric ton.  A 10% change in the market price of fuel would
result in changes of US$8 million and US$35 million in fuel
costs for the first quarter and full year, respectively.

The company expects its first quarter 2008 earnings per share to
be US$0.30 to US$0.35, and expects full year 2008 earnings per
share to be US$3.20 to US$3.40.

As of Dec. 31, 2007, liquidity was US$1.4 billion, comprising
US$0.2 billion in cash and cash equivalents and US$1.2 billion
in available credit on the company's unsecured revolving credit
facility.

Based on current ship orders, projected capital expenditures for
2008, 2009, 2010, and 2011, are estimated to be US$1.9 billion,
US$2.0 billion, US$2.2 billion, and US$1.0 billion,
respectively.  Projected capacity increases for the same four
years are estimated at 5.1%, 9.3%, 11.4%, and 6.4%,
respectively.

                    About Royal Caribbean

Headquartered in Miami, Royal Caribbean Cruises Ltd. (NYSE: RCL)
-- http://www.royalcaribbean.com/-- is a global cruise vacation  
company that operates Royal Caribbean International, Celebrity
Cruises and Pullmantur Cruises, Azamara Cruises and CDF
Croisieres de France.  The company has a combined total of 35
ships in service and seven under construction.  It also offers
unique land-tour vacations in Alaska, Australia, China, Canada,
Europe, Latin America and New Zealand.  The company has
operations in Puerto Rico.

                        *     *     *

Moody's still carries Royal Caribbean Cruises Ltd.'s 'Ba1' long
term corporate family rating last placed on Feb. 22, 2005.  
Moody's said the outlook is stable.




=========
I N D I A
=========


BALLARPUR INDUSTRIES: Board Fixes March 10 Record Date for Split
---------------------------------------------------------------
Ballarpur Industries Ltd.'s committee of directors has approved
March 10, 2008 as the "Record Date" to ascertain the entitlement
of shareholders for split and buy back of equity share capital
of the company.

The proposed scheme provides for these terms:

    i. Sub-Division of every fully paid-up equity share of face
       value of INR10 each into five fully paid-up equity shares
       of INR2 each.

   ii. Simultaneous compulsory buy back (post split) from every
       equity shareholder, two equity shares of INR2 each for
       every five equity shares of INR2 each held, whether held
       in physical or dematerialized form, at a price of INR25
       per equity share, as on the record date.

  iii. Option to eligible equity shareholders holding up to
       1,000 equity shares of INR10 each pre-split i.e. prior to
       the reorganization of equity shares or up to 5,000 shares
       of INR2 each post split, in the company as on the record
       date, to tender the balance equity shareholding (after
       compulsory buyback) to the company for buy back, at a
       price of INR30 per share.

Headquartered in Ballarpur, India, Ballarpur Industries Limited
-- http://www.bilt.com/-- is a paper manufacturer and exporter.
BILT has five product groups: coated wood-free, uncoated wood-
free, copier, creamwove, and business stationery.  There are
three types of products in the coated wood-free segment: two
side coated paper, two side coated boards, and single side
coated products.  The company has a presence in all segments of
the paper usage spectrum that includes writing and printing
paper, industrial paper, and specialty paper.

On April 12, 2004, Standard and Poor's Ratings Services gave
Ballarpur Industries BB- ratings for both its long-term local
and foreign issuer credit.  As of Dec. 2, 2007, the company
still carry those ratings.


BHARTI AIRTEL: Granted Addtional 2G Spectrum in Five Circles
------------------------------------------------------------
According to Stock Watch, India's Department of Telecom has
alloted Bharti Airtel Ltd additional 2G spectrum in five telecom
circles in the country -- Ujarat, Uttar Pradesh (West), Assam,
West Bengal, and Haryana.

The additional spectrum allotment is based on the Telecom
Regulatory Authority of India's requirement for existing telecom
operators to increase subscriber base between two to six times
before they are eligible for additional radio frequencies, Stock
Watch relates.

Bharti Airtel anticipates getting airwaves in other five circles
in two months.

                    About Bharti Airtel

Headquartered in New Delhi, India, --
http://www.bhartiairtel.in-- is a telecom services provider.       
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services.

                        *     *      *

Fitch Ratings, on Nov. 19, 2007, affirmed Bharti Airtel
Limited's Long-term foreign currency Issuer Default Rating at
'BB+'.  Fitch said the outlook on the rating is stable.


DECCAN AVIATION: Board OKs 7:3 Swap Ratio for Kingfisher Merger
---------------------------------------------------------------
Deccan Aviation Ltd's board of directors has approved a 7:3 swap
ratio for the merger of the scheduled airline business of
Kingfisher Airlines Ltd into Deccan Aviation Ltd, a filing with
the Bombay Stock Exchange reveals.

The share entitlement ratio has been determined based on the
recommendation of independent valuers KPMG India Pvt Ltd and
Dalal & Shah, the company explains.

Pursuant to a proposed scheme of arrangement, UB Group's
Kingfisher Airlines' shareholders will receive three shares of
Deccan for every seven shares they hold.  As approved by the
board, the Deccan will be changed to Kingfisher Airlines Ltd and
the merger will take effect on April 1, 2008, subject to all
statutory compliances.

The scheme is still subject to approvals of, among others,
shareholders and creditors.

The board also approved the sale of Deccan's charter business  
to an entity to be jointly owned by Captain Gopinath and the UB
Group.  The sale consideration, which amount the BSE filing did
not state, is based on valuation castled out by Grant Thornton,
an independent valuation firm, appointed by the board.

Bangalore, India-based Deccan Aviation Limited --
http://www.deccanair.com/-- is a charter aviation company in              
the private sector.  Deccan Aviation provides company charters,
tourism, medical evacuation, off-shore logistics and a host of
other services.

In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the INR3.41-
billion loss incurred in FY 2006.


DCM SHRIRAM: Incurs INR27MM Net Loss in Qtr. Ended Dec. 31, 2007
----------------------------------------------------------------
DCM Shriram Industries Ltd reports a net loss of INR27.4 million
in the quarter ended Dec. 31, 2007, on lower sugar prices.  In
the same period in 2006, the company booked a net profit of
INR8.2 million.

"Free sale sugar prices continued to remain low as a result of
unprecedented sugar production," the company noted in a filing
with the Bombay Stock Exchange.   "This coupled with high cane
price being paid in Uttar Pradesh (U.P.) continue to severely
affect margins of the sugar business."

Total income slid 17% to INR1.48 billion from 2006's INR1.78
billion.  Operating expenditures aggregating INR1.41 billion
left the company an operating profit of INR67.5 million (2006:
INR91.7 million).

In the latest quarter under review, the company also booked
interest charges of INR62.4 million and depreciation of INR37
million.

A copy of the company's unaudited financial results for the
quarter ended Dec. 31, 2007, is available for free at:

          http://ResearchArchives.com/t/s?27a5

DCM Shriram Industries Ltd is the flagship company of the DCM
Shriram Industrial Group based predominantly in Northern India,
and was established in 1990, following the restructuring of the
former DCM group.  The group's product portfolio includes sugar,
alcohol, industrial fibres, and organic chemicals.  DCM Shriram
has sugar and chemical plants at Daurala in Meerut district in
Uttar Pradesh, and an industrial fibre unit at Kota in
Rajasthan.  Other DSIG companies are Daurala Food and Beverages
Pvt Ltd, DCM Hyundai Ltd, and DCM Shriram and Leasing Finance
Ltd.

In November 2007, CRISIL revised its ratings on DCM Shriram's  
debenture programmes to 'BB+/Negative' from 'BBB-/Negative'.  
The rating revision reflects CRISIL's expectation that the weak
scenario prevailing in the sugar industry will adversely affect
the company's financial risk profile over the next 12 months.  
Moreover, the stress on cash flows, coupled with high loan
repayment obligations of about INR300 million per annum over the
medium term, is likely to affect the company's liquidity.


EASTMAN KODAK: Earns US$92 Million in 2007 Fourth Quarter
---------------------------------------------------------
Eastman Kodak Company reported fourth-quarter earnings from
continuing operations of US$92 million on higher year-over-year
revenues, reflecting the emergence of a new, more profitable
company.

Kodak also met or exceeded all of its key financial commitments
and strategic goals for 2007, most notably:

    * Delivering an 8% increase in digital revenue

    * Achieving digital earnings of US$176 million

    * Net Cash Generation of US$333 million

    * On a GAAP basis, for the total year, revenue declined by
      3% and cash provided by operating activities from
      continuing operations was US$352 million

    * Aggressive entrance into new markets and product
      categories, including the introduction of the KODAK All-
      in-One Inkjet Printing System, KODAK digital picture
      frames, KODAK InSite enterprise management software, and
      the KODAK NEXPRESS S3000 Digital Production Color Press

    * Completion of the company's four-year corporate
      restructuring program

    * Achieving targeted cost model for the year and reducing
      full-year Selling, General and Administrative costs from
      18.5% to 17.1% of revenue

"I am thrilled with our 2007 performance, as it is powerful
evidence that a new Kodak has emerged and is producing solid,
value-creating growth," said Antonio M. Perez, Chairman and
Chief Executive Officer, Eastman Kodak Company.  "We delivered
another strong quarter, and another strong year of earnings
growth, and met or exceeded every important goal that we set for
ourselves."

"In addition, we successfully entered the US$50 billion consumer
inkjet market and exceeded our first-year printer sales goal.
What's more, third-party data indicates that Kodak is enjoying a
30% price premium over the industry average.  Clearly, our
value proposition is resonating with consumers and they are
willing to pay a bit more for a Kodak printer because they know
they will save money every time they print.  Consumer inkjet is
just one of several new product introductions that are receiving
positive customer response.  The more I see of them, the more
optimistic I am about their success."

Kodak's digital revenue grew 15% in the fourth quarter of 2007,
driven by strong year-over-year increases in all key digital
businesses, partially offset by a decline in snapshot printing.

The company achieved US$146 million in digital earnings for the
fourth quarter, driven by an expanded product portfolio,
intellectual property arrangements, and operational
improvements, resulting in strong full-year earnings performance
across the company's digital business units.  For the full year,
the company delivered US$176 million in digital earnings, a
US$189 million improvement from the prior year, significantly
outpacing a US$30 million year-over-year decline in traditional
earnings.  Earnings from continuing operations before interest,
other income (charges), net, and income taxes were US$130
million for the quarter and a loss of US$230 million for the
year.

On the basis of generally accepted accounting principles, the
company reported fourth-quarter earnings from continuing
operations of US$109 million pre-tax, US$92 million after tax,
or US$0.31 per diluted share, reflecting the impact of 19
million additional shares from contingently convertible
securities.  This compares with earnings of US$111 million pre-
tax, and a loss of US$15 million after tax, or US$0.05 per
share, in the year-ago period.  Items of net expense impacting
comparability in the fourth quarter of 2007 totaled US$28
million after tax, or US$0.09 per share.  The most significant
items were restructuring costs of US$68 million before tax and
US$44 million after tax, or US$0.14 per share, net gains on sale
of property of US$116 million before tax and US$89 million after
tax, or US$0.29 per share, impairment of an investment of US$46
million after tax, or US$0.15 per share, and various other tax-
related items totaling US$25 million, or US$0.08 per share.  In
the fourth quarter of 2006, items of net expense impacting
comparability totaled US$158 million after tax, or US$0.55 per
share, primarily reflecting restructuring costs and tax
valuation allowances.

For the fourth quarter of 2007:

    * Sales totaled US$3.220 billion, an increase of 4% from
      US$3.106 billion in the fourth quarter of 2006.  Digital
      revenue totaled US$2.262 billion, a 15% increase from
      US$1.974 billion in the prior-year quarter.  Traditional
      revenue totaled US$951 million, a 15% decline from
      US$1.117 billion in the fourth quarter of 2006.

    * Digital earnings for the fourth quarter improved by
      US$5 million, to US$146 million this quarter, from
      US$141 million in the year-ago quarter.

Other financial details:

    * Gross Profit margin was 24.5% for the quarter, up from
      23.8% in the year-ago period, primarily attributable to
      lower costs from manufacturing footprint reductions,
      intellectual property, and foreign exchange, partially
      offset by increased commodity costs and price/mix impacts.

    * Selling, General and Administrative expenses increased by
      US$48 million from the year-ago quarter, primarily
      reflecting the company's investment in advertising to
      support new products, including its consumer inkjet
      printing system.  As a result, SG&A as a percentage of
      revenue was 16%, compared with 15% in the year-ago
      quarter.

    * Net Cash Generation for the fourth quarter was US$1.132
      billion, compared with US$905 million in the year-ago
      quarter.  This corresponds to net cash provided by
      operating activities from continuing operations of
      US$1.046 billion for the fourth quarter, compared with
      US$1.002 billion in the year-ago quarter.

    * The company's debt level stood at US$1.597 billion as of
      Dec. 31, 2007, a US$1.181 billion reduction from the 2006
      year-end debt level of US$2.778 billion.

    * Kodak held US$2.947 billion in cash and cash equivalents
      as of Dec. 31, 2007, an increase of US$1.478 billion from
      the year-ago period.

Fourth-quarter segment sales and results from continuing
operations, before interest, taxes, and other income and charges
(earnings from operations), are as follows:

    * Consumer Digital Imaging Group sales for the fourth
      quarter were US$1.730 billion, an 8% increase from the
      prior-year quarter. Revenues from digital products grew by
      17%, driven by growth in Digital Capture and Devices,   
      kiosks and related media, and consumer inkjet printers.
      Earnings from operations improved by US$13 million to
      US$76 million, compared with US$63 million in the year-ago
      quarter.  This improvement was driven by an expanded
      product portfolio, intellectual property arrangements, and
      operational improvements in the Digital Capture and
      Devices business, partially offset by costs associated
      with new product introduction activities in the Inkjet
      Systems business.

    * Graphic Communications Group sales for the fourth quarter
      were US$998 million, a 7% increase from the year-ago
      quarter.  Revenues from digital products grew by 12% to
      US$891 million, driven by increased sales of digital
      plates, NEXPRESS digital color printing presses, and
      digital printing consumables.  Earnings from operations
      were US$33 million, compared with US$47 million in the
      year-ago quarter.  This earnings decline was primarily
      driven by higher aluminum and other costs, the impact of
      an intellectual property licensing settlement, and
      decreased sales and gross profit from traditional
      products.

    * Film Products Group fourth-quarter sales were US$463
      million, down from US$559 million in the year-ago quarter,
      representing a decrease of 17%.  Earnings from operations
      were US$40 million, compared with US$83 million in the
      year-ago quarter.  These results reflect impacts from
      volume and mix along with seasonal production slowdowns in
      film manufacturing, some initial effects from the writers'
      strike, higher silver costs, and the impact associated
      with new and renewed film agreements.

Other 2007 Highlights:

    * The company's loss from continuing operations for 2007 was
      US$205 million, or US$0.71 per share, a US$599 million, or
      US$2.09 per share improvement, from the 2006 level.  The
      favorable year-over-year change reflects a decrease in
      restructuring charges, as the company completed the final
      year of its corporate restructuring program.  It also
      reflects greatly improved operational performance across
      all of the company's businesses as well as reduced taxes
      and SG&A expenses versus the prior year.

    * All of Kodak's major businesses showed improvement in
      earnings from operations on a full-year basis.
      Specifically, CDG earnings from operations improved by
      US$148 million from 2006.  GCG earnings improved from
      US$100 million in the year-ago period to US$116 million in
      2007.  FPG earnings from operations were US$369 million in
      2007, compared with US$368 million in the previous year,
      and its operating margin improved to 19% for the year,
      from 16% in the prior year, despite a 15% decline in
      revenue.

    * Net Cash Generation for the full year was US$333 million,
      compared with US$365 million in 2006.  This corresponds to
      net cash provided by operating activities from continuing
      operations of US$352 million for 2007, compared with
      US$685 million in 2006.

"Our corporate restructuring is now over and Kodak is
revitalized and ready to grow," said Mr. Perez.  "We have a
strong market position in a significant number of very promising
digital businesses, a competitive operating structure, a
powerful brand, and extremely valuable intellectual property.  
We are a new company with a strong emphasis on sustaining
profitable growth, and the talent and resources necessary to
achieve that goal.  This positions us well for strong
performance in 2008 and beyond."

                    About Eastman Kodak

Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.

The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on Eastman Kodak Co. and removed
the ratings from CreditWatch, where they had been placed with
negative implications on Aug. 2, 2006.  S&P said the outlook is
negative.


TATA MOTORS: Net Profit in Oct-Dec '07 Down 2.8% to INR499 Mil.
---------------------------------------------------------------
Tata Motors Ltd. has reported consolidated revenue (net of
excise) of INR9238.48 crore for the quarter ended Dec. 31, 2007,
an increase of 13% over INR8179.38 crore in the corresponding
quarter of 2006-07.  The consolidated Profit After Tax was
INR654.79 crore, compared to INR602.07 crore in the
corresponding quarter last year, an increase of 8.8%.

The company's revenues (net of excise) on a stand-alone basis
was INR7251.83 crore for the quarter ended December 31, 2007, an
increase of 5.2% compared to INR6895.75 crore in the
corresponding quarter of 2006-07.  Profit Before Tax was
INR665.10 crore, a decrease of 6.2% over INR708.74 crore in the
corresponding quarter last year, while the PAT was INR499.05
crore, a decrease of 2.8% over INR513.17 crore for the
corresponding quarter last year.

The domestic sales volume for the quarter was 1,31,852 units,
compared to 1,30,217 units during the corresponding quarter last
year, an increase of 1%.  Exports volumes were 12,756 vehicles,
compared to 11,610 vehicles in the corresponding period last
year, a growth of 9.9%.

As in the preceding quarters of 2007-08, the 3rd quarter too has
been marked by high input costs, increased competitive activity
and the high interest rate regime affecting retails in the
domestic market.  Together they have impacted the Company's
operating margin (net of foreign exchange gain) in the quarter.

The Company is pursuing with cost reduction initiatives,
launched earlier in the fiscal. It is also continuing with
introduction of new products.  New launches, during the quarter
included a new Safari DICOR 2.2 VTT range, a new Sumo Victa
Turbo DI range, Indica V2 Turbo with dual airbags and ABS, a 9-
tonne fully built tipper, a 16-tonne tipper, a 49-tonne tractor-
trailer, 31- tonne and 25-tonne multi-axle trucks and tippers,
all with customer-relevant applications.

The quarter also saw the rollout of the one millionth passenger
car from the Indica platform at the Pune Car Plant.

Consolidated revenue (net of excise) in the first nine months of
2007-08 at INR25074.99 crore recorded an increase of 10.8% as
against INR22633.64 crore in the corresponding period last year.
The consolidated PAT at INR1722.72 crore compared to INR1520.18
crore recorded a growth of 13.3%.

The company's revenues (net of excise) on a stand-alone basis
was INR19,981.30 crore in the first nine months, an increase of
3.9% compared to INR19234.34 crore in the corresponding period
last year.  PBT was INR1878.42 crore, an increase of 4.7% over
INR1793.38 crore in the corresponding period last year, while
the PAT was INR1492.65 crore, an increase of 11.7% over
INR1336.74 crore in the corresponding period last year.

A copy of the Tata Motors' consolidated results for the quarter
ended Dec. 31, 2007, is available for free at:

           http://ResearchArchives.com/t/s?27a6

A copy of the Tata Motors' standalone results for the quarter
ended Dec. 31, 2007, is available for free at:

           http://ResearchArchives.com/t/s?27a7

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the Company.  The Company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.

Tata Motors has operations in Russia and the United Kingdom.

                         *     *     *

As reported on Jan. 8, 2008, Moody's Investors Service placed
the Ba1 Corporate Family Rating of Tata Motors Ltd on review for
possible downgrade.


TATA STEEL:  Starts Effecting Changes to Corus' Top Management
-----------------------------------------------------------
Tata Steel Ltd., appointed Friday Uday Kuma Chaturvedi as the
new managing director of Corus Strip Products UK effective
April 1, Rediff India reports.

Additionally, Rediff relates, Tata Steel also effected two other
changes to Corus' management:

   -- Theo J. Henrar, Managing Director of Corus Packaging Plus,
      will take over as Managing Director of Corus Strip
      Products, IJmuiden; and

   -- Hugo A Loudon, Managing Director of Corus Special Strip,
      will be the Managing Director of Corus Packaging Plus.

Both changes is effective from March 1, Rediff adds.

In April 2007, Tata Steel 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.

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.

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.




=================
I N D O N E S I A
=================


ALCATEL-LUCENT: To Post 4Q & Full-Year 2007 Results on Feb. 8
-------------------------------------------------------------
Alcatel-Lucent will publish its fourth quarter and full year
2007 results on February 8, 2008.  

Patricia Russo, CEO of Alcatel-Lucent, and Hubert de Pesquidoux,
CFO, will present the fourth quarter and full year 2007 results
during a live audio webcast and conference call, which will be
held at 1:00PM CET.  The audio webcast will be available at
http://www.alcatel-lucent.com/4q2007

Dial-in instructions to participate in the Q&A session are
listed below:

  From the USA:                     800 230 1096     

  From other countries:          +1 612 332 0637

The conference call will be available for digital replay from
February 8, 2008, at 5:15PM CET, ending on February 22, 2008, at
11:59PM CET at the following call in numbers:

  From the USA: 800 475-6701              access code: 907781                
                                      

  From other countries: + 1 320 365 3844  access code: 907781                
                           

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from
Ba2 the Corporate Family Rating of Alcatel-Lucent.   The ratings
for senior debt of the group were equally lowered to Ba3 from
Ba2 and the trust preferred notes of Lucent Technologies Capital
Trust I have been downgraded to B2 from B1.  At the same time,
Moody's affirmed its Not-Prime rating for short-term debt of
Alcatel-Lucent.  Moody's said the outlook for the ratings is
stable.

Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating.  Its Short-Term Corporate Credit rating stands at B.


BANK NISP: Pefindo Affirms "idAA-" Company Rating
-------------------------------------------------
Pefindo affirmed its ratings of "idAA-" for PT Bank NISP Tbk and
"idA+" for the Bank's subordinated debt I/2003 of IDR500
Billion.  At the same time, Pefindo assigned "idA+" for NISP's
proposed subordinated debt II/2007 of maximum IDR750 Billion.  
Outlook for those ratings is stable.  The ratings reflect the
Bank's strong support from OCBC as the controlling shareholder,
manageable asset quality, as well as its sound capitalization.  
However, the ratings are still constrained by the Bank's
moderate profitability.  NISP was established on April 28, 1941
in Bandung, West Java under the name of NV Nederlandsch Indische
Spaar En Deposito Bank.  As of October 31, 2007, the Bank has
recorded total assets of IDR27.2 Trillion through its operations
in 331 offices which were supported by 5,301 employees.  Since
2004, OCBC Bank Singapore (OCBC) through its wholly owned
subsidiary, OCBC Overseas Investment Pte. Ltd. has become NISP's
shareholder and as of October 31, 2007 it held 72.4% share
ownership, while the other shareholders are International
Finance Corporation (IFC, 7.17%), and others including public
(20.43%).

Supporting factors for the above ratings are:

    * Strong support from OCBC as the controlling shareholder.
      The presence of OCBC, as the major shareholder, is
      believed to have positive impacts in such areas as
      management expertise, risk management, and network system.
      Combined with its local expertise, support from OCBC has
      enabled NISP to strengthen its position commercial
      segment, which has been the Bank's core business for many
      years.  During the past two years, NISP has been able to
      expand its business throughout the country by opening many
      branches in several major cities in Sumatra, Kalimantan,
      Sulawesi as well as Java.  Accordingly, the Bank's total
      loan has increased to IDR19.0 trillion at end of October     
      2007 from IDR16.1 trillion at end 2006 and
      IDR12.4 trillion at end of 2005.  The increase was mainly
      driven by growth in consumer and SME segments.  Support
      from OCBC should continue to be strong as reflected by the
      increased ownership from only 22.5% in 2004 to 72.4% at
      present.

    * Manageable asset quality.  NISP's asset quality is
      regarded as favorable with Non Performing Loans Ratio of
      only 2.6% as of October 31, 2007, well below industry's
      average of 5.2% (as of September 30, 2007).  This was
      mainly attributable to the Bank's loan composition which
      was dominated by commercial and consumer segments.  The
      segments carry lower risk profile as compared to corporate
      segments.  Relatively low NPL ratio also resulted from
      NISP's more prudent risk management policy which is partly
      adopted from OCBC.  As NISP will continue to maintain its
      business focus to those segments, the Bank should be able
      to maintain its low NPL ratio in the future.

    * Sound capitalization.  NISP could maintain strong
      capitalization indicators during the years under review.
      From a series of right issues, the Bank has been able to
      strengthen its core capital with total equity reaching
      IDR 3.3 trillion as of 1H07.  As a result, despite the
      Bank's loan expansion, CAR could be maintained at a
      healthy level of 18.9%.  Considering support from its
      financially-strong major shareholders, i.e. OCBC and IFC,
      NISP should be able to maintain sound capitalization
      ratios in the future.

The ratings are offset by the following factor:

    * Moderate profitability.  Despite its strong position and
      favorable asset quality, NISP could only generate moderate
      profitability figures.  Although stable, the Bank's NIM of
      around 4% during the years under review was lower compared
      to peers' average.  The Bank is also burdened by
      increasing operational expenses due to its network and
      system expansion activities, which is reflected by high
      Cost to Income Ratio (CIR) of above 60% for the past two
      years.  Unless NISP could improve its funding structure to
      obtain more low-cost deposits and at the same time improve
      its operating efficiency, the Bank's profitability
      indicators should remain mediocre going forward.

                           Outlook

A 'stable' outlook is assigned to the above ratings.  The Bank's
franchise in SME and consumer segments should be strengthened by
full support and commitment from OCBC.  Accordingly, the Bank
should be able to maintain its asset quality at a favorable
level in the future despite loan expansion.

                      About Bank NISP

PT Bank NISP Tbk -- http://www.banknisp.com/english/index.html    
-- categorizes its products into two groups: Funding, which
consists of savings and deposits, and Lending, consisting of
working capital loans, investment loans and consumer loans. In
addition, the bank has three service categories: Individual,
Corporate and Others. As of January 18, 2006, the bank has 29
branch offices, 101 representative offices and 26 cash offices
throughout the country.  The Bank is headquartered in Jakarta,
Indonesia.

                        *     *     *

The Troubled Company Reporter-Asia Pacific reported on
Dec. 21, 2007, that Fitch Ratings has affirmed all the ratings
of PT Bank NISP Tbk:

   -- Long-term foreign and local currency Issuer Default
      Ratings at 'BB-'with a Positive Outlook,

   -- Short-term foreign currency IDR 'B', National Long-term
      'AA+(idn) with a Stable outlook',

   -- Individual 'C/D' and Support '3'.


GARUDA INDONESIA: Seeks Partner for Pilot Training School
---------------------------------------------------------
PT Garuda Indonesia is seeking a joint-venture partnership with
foreign or local companies to help it establish a cadet pilot
training school in order to meet growing demand for aircrew, the
Flight Global News reports.

According to the report, the airline currently sends cadets to
the government-run Indonesian Civil Aviation Institute for
training but the airline anticipates a need for many more pilots
in future than the school can train.

Indonesia's air transport market has been growing rapidly in
recent years and Garuda has lost many pilots to higher-paying
foreign and local airlines, the report points out.

The report adds that Garuda said that interested parties should
submit expressions of interest by February 4.

                   About Garuda Indonesia

Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--    
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations.  Under its
Citilink brand, it serves 10 other domestic routes.  Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.

The Troubled Company Reporter-Asia Pacific reported on
Sept. 6, 2007, that Garuda, saddled with a debt of around US$750
million including some US$475 million owed to the European
Credit Agency, is in negotiations with creditors to restructure
some of its debt.  The carrier's debt needs to be restructured,
otherwise Garuda will not be able to fly anymore as its debt is
too big, the report added.

The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005.  It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates.  Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
was due on Dec. 31, 2005.

The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before.

Garuda is currently undergoing debt restructuring.  The Troubled
Company Reporter-Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.


PERUSAHAAN LISTRIK: Gets US614.8 Mil. in Loans from China Exim
-------------------------------------------------------------
PT Perusahaan Listrik Negara secured two loans amounting to
US614.8 million from the Export Import Bank of China to build
two major coal-fired power plants, various reports say.

Under the agreement, The Jakarta Post relates, the bank will
provide loans of US$330.8 million for the 600-megawatt (MW)
Suralaya coal-fired power plant in Banten, and US$284 million
for the 600-MW Paiton coal-fired power plant in East Java.

Tempo Interactive notes that M.S. Hidayat, chairman of the
Indonesian chamber for commerce and industry, said the loans'
maturity is 12 years with a 6.4% interest rate.  The Post
reports that the loans will be insured by Sinosure, the Chinese
Export Credit Agency, and backed by a full guarantee by the
Indonesian Finance Ministry.

Finance Minister Sri Mulyani Indrawati, Thomson relates, said
the loans will cover 85% of the funding requirements for the
projects.  The rest of projects cost will be covered by rupiah-
denominated borrowing, which will be sought from domestic banks
in the first quarter of this year, she added.

Tempo Interactive relates that Mr. Hidayat had asked China
Export-Import Bank to increase the loan to finance other
electricity power plants.  Inodensia Vice President Jusuf Kalla,
Tempo notes, also asked China to use more local components in
construction of the electricity power plants.  He suggested
sending 2,000 PLN engineers to China for technology transfer,
the report adds.

                   About Perusahaan Listrik

Indonesian state utility firm PT Perusahaan Listrik Negara --
http://www.pln.co.id/-- transmits and distributes electricity    
to around 30 million customers, roughly 60% of Indonesia's
population.  The Indonesian Government decided to end PLN's
power supply monopoly to attract independents to build more
capacity for sale directly to consumers, as many areas of the
country are experiencing power shortages.

The Troubled Company Reporter-Asia Pacific reported on June 18,
2007, that Standard & Poor's Ratings Services affirmed its
'BB-' foreign currency rating and 'BB' local currency rating on
Indonesia's PT Perusahaan Listrik Negara (Persero).  The outlook
is stable.  At the same time, Standard & Poor's assigned its
'BB-' issue rating to the proposed senior unsecured notes to be
issued by PLN's wholly owned subsidiary, Majapahit Holding B.V.




=========
K O R E A
=========


DYNCORP INT'L: Earns US$38.1MM in Full Year Ended Dec. 28, 2007
---------------------------------------------------------------
DynCorp International Inc. reported US$11.9 million of net
income for the three months ended Dec. 28, 2007, compared to
US$11.5 million of net income for the same period in 2006.

For the full year ended Dec. 28, 2007, the company earned
US$38.1 million compared to net income of US$8 million in 2006.

                      Third Quarter 2008 Vs.
                    Third Quarter 2007 Results

Revenue for the third quarter of fiscal 2008 was US$523.1
million, a 1.1% increase over revenue of US$517.5 million for
the third quarter of fiscal 2007.  Revenue for the Government
Services (GS) segment, which represented 65.7% of company
revenue, increased to US$343.6 million for the third quarter of
fiscal 2008, up US$1.4 million or 0.4% from the third quarter of
fiscal 2007.  GS revenue grew through additional work supporting
the International Narcotics Air Wing program and peacekeeping
activities in Africa.  This was offset by the conclusion of
construction and camp support task orders in Iraq.  Revenue for
the Maintenance and Technical Support Services segment, which
represented 34.3% of Company revenue, increased to US$179.5
million for the third quarter of fiscal 2008, up US$4.2 million
or 2.4% from the third quarter of fiscal 2007.  MTSS revenue
grew primarily through new business in the aviation and
maintenance business area, partially offset by reduced manning
under the Contract Field Teams program.

Operating income was US$30.8 million or 5.9% of revenue in the
third quarter of fiscal 2008, compared to US$32.3 million or
6.2% of revenue in the third quarter of fiscal 2007.  Operating
income decreased primarily due to an increase in selling,
general and administrative expenses.  Factors contributing to
the increased SG&A included:

    (i) costs incurred in fiscal 2008 related to Sarbanes-Oxley
        compliance preparation;

   (ii) consulting costs related to proposal activity; and

  (iii) general SG&A costs necessary to support the current and
        anticipated growth of the company's business.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) in the third quarter of fiscal 2008 decreased 1.3% to
US$44.3 million or 8.5% of revenue, compared to US$44.9 million
or 8.7% of revenue in the third quarter of fiscal 2007.  The
decrease is primarily due to the previously discussed decrease
in operating income.

Earnings Per Share increased to US$0.21 in the third quarter of
fiscal 2008 from US$0.20 in the third quarter of fiscal 2007.  
EPS in the third quarter of fiscal 2008 includes the favorable
impact of lower interest expense, higher earnings from
affiliates, higher other income and a lower effective income tax
rate, offset by the previously discussed decrease in operating
income.

                    Year-to-Date Results

Revenue for the first nine months of fiscal 2008 was US$1,566.9
million, a 2.4% increase over revenue of US$1,529.9 million for
the first nine months of fiscal 2007.  Revenue for the GS
segment increased to US$1,026.8 million for the first nine
months of fiscal 2008, up US$8.6 million or approximately 1.0%
from the first nine months of fiscal 2007. GS revenue grew
principally as a result of increased work supporting the
International Narcotics Air Wing program, offset by the
conclusion of construction camp support task orders in Iraq and
the conclusion of protective services task orders.  Revenue for
the MTSS segment for the first nine months of fiscal 2008
increased to US$540.1 million, up US$28.4 million or 5.5% from
the first nine months of fiscal 2007.  MTSS revenue grew through
increased overhauls on engines and propellers performed under
the Life Cycle Contractor Support program, increased logistics
support services provided to the U.S. Air Force C-21 fleet, and
new business in the aviation and maintenance business area.  
This was partially offset by reduced manning under the Contract
Field Teams program.

Operating income increased US$26.4 million or 37.4% to US$97.0
million or 6.2% of revenue for the first nine months of fiscal
2008, compared to US$70.6 million or 4.6% of revenue for the
first nine months of fiscal 2007.  The increase in operating
income, both in dollars and as a percentage of revenue, was
primarily due to increased revenue volumes, improved contract
performance, lower depreciation and amortization expense and the
elimination of certain one-time costs of US$17.9 million that
were incurred during the first nine months of fiscal 2007.

EBITDA for the first nine months of fiscal 2008 increased
US$27.6 million or 25.6% to US$135.3 million or 8.6% of revenue,
compared to US$107.7 million or 7.0% of revenue for the first
nine months of fiscal 2007.  The increase is due to the
previously discussed increase in operating income in fiscal
2008, excluding the decrease in depreciation and amortization
expense.

EPS increased to US$0.67 for the first nine months of fiscal
2008 compared to EPS of US$0.15 for the first nine months of
fiscal 2007.  EPS for the first nine months of fiscal 2008
benefited from the previously discussed higher operating income,
higher earnings from affiliates, higher interest income and
lower interest expense, offset by higher weighted average
outstanding shares compared to the first nine months of fiscal
2007 due to the Company's initial public offering in May of
2006.  EPS for the first nine months of fiscal 2007, on an after
tax basis, included the unfavorable impact of US$0.22 per share
of non-recurring expenses associated with the company's initial
public offering and US$0.21 per share of the previously
referenced one-time costs.

Cash used by operations was US$49.3 million for the first nine
months of fiscal 2008 compared to cash provided by operations of
US$45.8 million for the first nine months of fiscal 2007.  The
cash used by operating activities in the nine months ended
Dec. 28, 2007 was primarily due to unfavorable conditions
relating to working capital, specifically accounts receivable.  
The increase in the accounts receivable balance was due to the
temporary delay in cash collections and in receiving executed
contract modifications from the Department of State, primarily
due to accounting, process and system changes within the DoS.  
As a point of reference, as of Dec. 28, 2007, approximately 68%
of the company's accounts receivable balance was due from the
DoS.  As a consequence, the company's Days Sales Outstanding at
Dec. 28, 2007 was 92 days an increase from 77 days at
Dec. 29, 2006.  The company is working diligently with DoS to
correct this problem, but many of the actions necessary are
internal to the customer.

Total debt was US$607.4 million at Dec. 28, 2007, a reduction of
US$23.6 million from March 30, 2007.  This reduction is
primarily due to an excess cash flow payment of US$34.6 million
required by the terms of our credit agreement, offset by US$13.5
million borrowed under our revolving credit facility.

Backlog as of Dec. 28, 2007 was US$6.3 billion. Included in this
total is US$3.5 billion from the linguist and translation
services contract awarded by the U.S. Army Intelligence and
Security Command to Global Linguist Solutions LLC, a joint
venture of DynCorp International and McNeil Technologies.  The
five-year contract, with a maximum value of US$4.6 billion, was
originally awarded in December 2006.  The Army terminated the
contract for convenience after the Government Accountability
Office sustained the incumbent's original protest.  INSCOM
requested and received revised proposals and again awarded the
contract to GLS.  The incumbent protested this second award and
the Army decided to take corrective action, resulting in
dismissal of the second protest.  Currently, the Army is
implementing a corrective action plan which will result in a new
award decision.  Our backlog and estimated remaining contract
value metrics may require future adjustment depending on the
outcome of this new award decision.

                    Fiscal 2008 Guidance

The company is revising its financial guidance for the fiscal
year ending March 28, 2008, based upon current outlook.  This
guidance excludes the previously discussed INSCOM contract.

                        About Dyncorp.

Headquartered in Irving, Texas, DynCorp International Inc.
(NYSE: DCP) -- http://www.dyn-intl.com/-- provides specialized    
mission-critical outsourced technical services to civilian and
military government agencies.  The Company specializes in law
enforcement training and support, security services, base
operations, aviation services and operations, and logistics
support.  The company has more than 14,400 employees in 33
countries including Korea, and Haiti.  DynCorp International,
LLC, is the operating company of DynCorp International Inc.

                        *     *     *

DynCorp still carries Standard and Poor's BB- rating assigned on
June 15, 2006.  S&P said the outlook is stable.


HYNIX SEMICONDUCTOR: Posts Loss in 4Q as Chip Price Drops
---------------------------------------------------------
Hynix Semiconductor Inc. reports earnings results for its fourth
quarter 2007, ended December 31, 2007.  The company recorded the
consolidated (which is the consolidation of the company's
semiconductor operations) revenues of KRW1.85 trillion, which is
24% decrease from previous quarter's KRW2.44 trillion, and 29%
decrease from KRW2.61 trillion in the same period last year.
Sequential deterioration in sales was mainly due to the sharp
erosion in DRAM and NAND flash ASPs which dropped by 35% and 34%
quarter-on-quarter, respectively, despite the partial offset by
7% of DRAM bit growth and 43% of NAND flash bit growth.

Operating loss in the fourth quarter recorded KRW318 billion
with operating margin of negative 17%.  It is a significant
decrease from KRW254 billion of operating profits in the
previous quarter and KRW858 billion in the same time last year.
Such deterioration is attributable to severe price decline in
both businesses of DRAM and NAND flash and the consequent loss
from inventory write-down.

With depreciation and amortization expenses of KRW639 billion
for the fourth quarter, EBITDA came in at KRW321 billion with
EBITDA margin of 17%, a decrease from KRW882 billion of previous
quarter, and from KRW1.3 trillion of same period last year.  As
for the capital spending, the company pulled-in a little over
KRW400 billion of capex in the fourth quarter of 2007, executing
KRW4.8 trillion of total capital spending for 2007.

Net loss for the fourth quarter recorded KRW465 billion with
negative 25% of net income margin.  The difference between the
operating loss and the net loss was the income tax expense of
KRW108 billion.

In the meantime, consolidated cash and short-term financial
instruments increased by KRW825 billion sequentially to
KRW2.04 trillion, and the interest-bearing debts increased by
KRW701 billion to KRW5.13 trillion at the end of the fourth
quarter.  As a result, debt to equity ratio went up to 55% but
net debt to equity ratio remained flat at 33% compared to
previous quarter.  The increase of cash balance and the
interesting-bearing debts was mainly due to the financing
through US$583 million amount of convertible notes issuance in
December.
                  About Hynix Semiconductor

Headquartered in Echon, South Korea, Hynix Semiconductor Inc.
-- http://www.hynix.com/-- is a semiconductor manufacturer.   
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

The company has operations in Russia, and the United States.

                        *     *     *

In June 2007, Moody's Investors Service upgraded to Ba2 from Ba3
Hynix Semiconductor Inc's senior unsecured bond rating and
corporate family rating.

At the same time, Moody's assigned a Ba2 senior unsecured bond
rating for Hynix's proposed US$500 million issuance.  Moody's
said the outlook for the ratings is stable.




=========
J A P A N
=========


ALITALIA SPA: Wants EUR750 Mln Capital Hike in First Half 2008
--------------------------------------------------------------
Alitalia S.p.A.'s board of directors has approved, among other
items, the 2008 Budget.

The company relates that while waiting for the definitive
decision regarding the future ownership of the company and in
line with the 2008-2010 Industrial Plan approved on the
Sept. 7, 2007, the 2008 Budget pursues the top priority and
binding target of reducing the company's unsustainable losses
trend and the erosion of its equity and cash-to-hand levels.

In the context of increasingly adverse implementation issues due
to internal and external factors, the Budget, the company says,
reconfirms the need for a substantial injection of financial
resources by an increase of the capital.

The 2008 Budget, developed on an industrial stand-alone basis,
reconfirms strategic actions marked by strong discontinuity for
the implementation of the Plan for survival/transition, and in
particular regarding:

    * resizing of the capacity offered to take into account the
      actual market opportunities;

    * domestic and long-haul markets consolidation on a single
      hub strategy to serve transfer traffic to/from Italy;

    * international network rationalization;

    * redesigning products to take into account specific market
      features;

    * re-launching the Italian brand;

    * regaining market share on currently underperforming
      strategic markets and routes;

    * increasing Cargo profitability; and

    * developing low-cost business on the international network
      and domestic by-pass, with reasonable profitability
      levels.

With respect to the Plan, the company relates that the 2008
Budget is affected by a slower implementation of the industrial
actions foreseen on both revenues side and costs side due to
strong scenario impacts as well as the significant fuel cost
increase.  To account for the consequent lower positive returns,
the Budget considers an additional reduction in activity and
further network rationalization compared to the Plan for
survival/transition in 2008.

Therefore the expected industrial operating 2008 margin,
although slightly improved compared to 2007, shows a material
worsening compared to the 2008 Plan.  Expected EBITDAR is about
three percentage points of revenues.

From the financial point of view, taking into account the
mentioned new and preexisting issues, sustaining the cash-to-
hand at adequate operating levels is more and more correlated to
an increase of the capital of the company, currently estimated
in about EUR750 million, to be carried out in the first half of
2008.

The described scenario fully confirms the compelled actions
envisaged in the Plan for survival/transition and the
unfeseability of any stand-alone positioning of the company.
Positioning of the company that can only be aimed at a strong
industrial merger with other airlines in order to achieve
material synergies.

                       About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  The Italian government owns 49.9%
of Alitalia.  The company has operations in Argentina.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.

Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.


FIDELITY NATIONAL: Paying US$0.30 Per Share Dividend on March 27
----------------------------------------------------------------
Fidelity National Financial, Inc. Board of Directors has
declared a quarterly cash dividend of US$0.30 per share.  The
dividend will be payable March 27, 2008, to stockholders of
record as of March 13, 2008.

Fidelity National Financial, Inc. -- http://www.fnf.com--  
(NYSE: FNF), is a provider of title insurance, specialty
insurance and claims management services.  FNF is one of the
nation's largest title insurance companies through its title
insurance underwriters - Fidelity National Title, Chicago Title,
Ticor Title, Security Union Title and Alamo Title - that issue
approximately 28 percent of all title insurance policies in the
United States.  FNF also provides flood insurance, personal
lines insurance and home warranty insurance through its
specialty insurance business.  FNF also is a leading provider of
outsourced claims management services to large corporate and
public sector entities through its minority-owned subsidiary,
Sedgwick CMS.

                  About Fidelity National

Based in Jacksonville, Florida, Fidelity National Information
Services, Inc. -- http://www.fidelityinfoservices.com/--  
provides core processing for financial institutions; card issuer
and transaction processing services; mortgage loan processing
and mortgage related information products; and outsourcing
services to financial institutions, retailers, mortgage lenders
and real estate professionals.  FIS has processing and
technology relationships with 35 of the top 50 global banks,
including nine of the top ten.  Nearly 50% of all US residential
mortgages are processed using FIS software.  FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil and Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Standard & Poor's Ratings Services has placed its
ratings, including the 'BB' corporate credit rating, on Fidelity
National Information Services Inc. on CreditWatch with negative
implications.

Moody's Investors Service also placed these ratings on review
for possible downgrade: US$1.6 billion First Lien Senior Secured
Term Loan B Ba1; US$2.1 billion First Lien Senior Secured Term
Loan A Ba1; US$900 million First Lien Senior Revolving Credit
Facility Ba1; US$200 million 4.75% (Certegy) notes due September
2008 Ba1; and Corporate Family Rating Ba1.


FORD MOTOR: Introducing Edge Brand in Brazil
--------------------------------------------
Ford Motor Co. intends to sell Edge, its latest small, sport-
utility vehicle in the Brazilian market later this year, The
Wall Street Journal reports.

The automaker's latest model has sold 130,000 units in North
America, up from the company's original forecast by 30%.  Edge
was introduced in the market in December 2006, the same paper
says.  Ford would be introducing a subcompact car in 2010 after
the brand will be sold in Europe and Asia also late this year.

According to the Journal, Ford's strategy to expand in Latin
America is in response to Chrysler LLC and Nissan Motor's
decision to sell small cars in the region.  

Overall, Ford's Latin American market is expected to post a gain
for the fiscal year 2007, the Journal relates.  Sales in the
region were up 72% to US$754 million for the first nine months
of 2007.

To meet demand in the region, Ford, the Journal says, will
increase investment by US$1 billion in Brazil and US$160 million
in Argentina.

                      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-Latin America on
Nov. 19, 2007, Moody's Investors Service affirmed the long-term
ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured, and B3 probability of
default), but changed the rating outlook to Stable from Negative
and raised the company's Speculative Grade Liquidity rating to
SGL-1 from SGL-3.  Moody's also affirmed Ford Motor Credit
Company's B1 senior unsecured rating, and changed the outlook to
Stable from Negative.  These rating actions follow Ford's
announcement of the details of the newly ratified four-year
labor agreement with the UAW.


HARMAN INTERNATIONAL: Names John Stacey as VP & Chief HR Officer
----------------------------------------------------------------
Harman International Industries Incorporated has appointed John
Stacey as its Vice President and Chief Human Resources Officer,
effective Feb. 25, 2008.  He will report to the Chief Executive
Officer and serve as a member of the Group Executive Committee.

Mr. Stacey, a Canadian national, is a veteran of more than 20
years in the human resources field, serving currently as Vice
President, People - North America for leading beverage
manufacturer Labatt/Inbev.  He has held a series of similar key
positions in the United States, Canada, and Europe, with
extensive focus on organizational development, compensation,
training and development, recruitment and selection,
restructuring, and collective bargaining.  Mr. Stacey holds a
degree in Business Administration from Memorial University of
Newfoundland, with a focus on Human Resources and Industrial
Relations.

"I am delighted to welcome John Stacey to the Harman senior
management team," said Dinesh C. Paliwal, Harman Chief Executive
Officer.  "We are committed to achieving new efficiencies in our
human resources strategy, while continuing to attract the top
talent necessary to operate as an industry leader.  I look
forward to working with John to unlock the vital energy of our
people toward achieving their full potential."

Headquartered in Washington, D.C., Harman International
Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes
audio systems through auto manufacturers, including
DaimlerChrysler, Toyota/Lexus, and General Motors.  Also the
company makes audio equipment, like studio monitors, amplifiers,
microphones, and mixing consoles for recording studios, cinemas,
touring performers, and others.  Harman Int'l has operations in
Japan, Mexico and France.

                       *      *     *

Standard & Poor's Ratings Services, in October 2007, revised its
CreditWatch implications for the 'BB-' corporate credit rating
on Harman International Industries Inc. to positive from
developing.




=========
K O R E A
=========


DURA AUTOMOTIVE: Wants To Sell 9 Properties to IRG for US$19.2MM
----------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates ask
permission from the U.S. Bankruptcy Court for the District of
Delaware to sell to Industrial Realty Group, LLC, real property
located at:

    -- 9444 Florida Mining Boulevard East, Jacksonville, Florida
       32257,

    -- 617 Douro Street, Stratford, Ontario, Canada,

    -- 322 East Bridge Street, Brownstown, Indiana,

    -- 800 North College Street, Fulton, Kentucky,

    -- 132 Ferro Road, Pikeville, Tennessee,

    -- 1775 East U,S, 20, LaGrange, Indiana,

    -- 5 Industrial Loop, Hannibal, Missouri,

    -- 345 Ecclestone Road, Bracebridge, Ontario, Canada, and

    -- 445 Helm Street, Brookfield, Missouri,

Dura Operating Corp. and its affiliates seek to sell the
Property Portfolio to IRG free and clear of all liens, claims,
encumbrances, and other interests.

The Debtors also seek the Court's permission to pay broker fees
in connection with the Sale.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that over a period of
three years, each of the properties in the Property Portfolio
was individually marketed by the Debtors and Colliers
International, the Debtors' exclusive real estate broker for the
properties, including listing on national multi-listing sites,
municipal and regional economic development Web sites, and
through direct canvassing by local brokers of local businesses,
investors and developers within a radius of approximately 100
miles of each property.

Starting May 2007, the Debtors and Colliers International
marketed the Property Portfolio as a whole to certain developers
and investors who had previously expressed interest in
purchasing similar rural industrial properties.  IRG was one of
the parties contacted by Colliers International, on the Debtors'
behalf, and was the only party to submit an offer for the
Property Portfolio.

Between August and December 2007, the Debtors conducted arm's-
length negotiations with IRG.  As a result of the negotiations,
IRG agreed to material improvements in the lease terms under the
purchase and sale agreements, resulting in an additional benefit
to the Debtors' estates of approximately US$900,000.

IRG submitted a written offer on Sept. 7, 2007.  When DSN
Holdings, Inc., the original purchaser of the Jacksonville
Property, determined not to proceed to closing, the Debtors
offered to sell the property to IRG for the same purchase price
of US$8,400,000 and on substantially similar terms.

The Debtors believe the purchase price offered by IRG for the
Property Portfolio is both fair and favorable to their estates
based on:

   (a) appraisal information provided by Gordon Schreur,
       director of AlixPartners, LLP;

   (b) the willingness of IRG to lease certain of the facilities
       to the Debtors on a short-term basis at a competitive
       rate to the Debtors while the Debtors wind down remaining
       operations at those locations; and

   (c) the fact that IRG is willing to purchase all of the
       properties in a single transaction, which will reduce the
       costs associated with selling the Property Portfolio.

The material terms of the Purchase and Sale Agreements signed by
the parties are:

    Term                Description
    ----                -----------
    Purchase Price      US$19,200,000 -- US$8,400,000 for the
                        Jacksonville Property, and US$10,800,000
                        for the remainder of the Property
                        Portfolio.

    Escrow Deposit      US$100,000 for the Jacksonville  
                        Property, and US$300,000 for the
                        remainder of the Property Portfolio.

    Seller              Customary representations and warranties
    Representations     for an "as is" sale.
    and Warranties
                              
    Inspection Period   45 days.

    Purchaser's         Satisfactory completion of due
    Conditions          diligence.
    Precedent to
    Closing

    Mutual Conditions   Entry of Bankruptcy Court order
    Precedent to        approving Sale.
    Closing
                            
    Timing of Closing   30 days after the end of the inspection
                        period.

    Interim             Short-term leases of property at 800
    Short-Term Leases   North College Street, Fulton, Kentucky,
                        322 East Bridge Street, Brownstown,
                        Indiana, and Jacksonville Property.

                     About DURA Automotive

Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- 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 industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

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. Del. Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.

Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.  (Dura Automotive
Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DURA AUTOMOTIVE: Jacksonville Property Buyer Withdraws Offer
------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates have
withdrawn their request to sell property located at 9444 Florida
Mining Boulevard East, in Jacksonville, Florida, to DSN
Holdings, Inc.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that DSN determined not
to proceed to closing.

The Debtors now intend to sell the Jacksonville Property at the
same purchase price of US$8,400,000 to Industrial Realty Group,
LLC.

Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- 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 industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

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. Del. Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.

Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.  (Dura Automotive
Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DYNCORP INT'L: Earns US$38.1 Million in Full Year Ended Dec. 28
---------------------------------------------------------------
DynCorp International Inc. reported US$11.9 million of net
income for the three months ended Dec. 28, 2007, compared to
US$11.5 million of net income for the same period in 2006.

For the full year ended Dec. 28, 2007, the company earned
US$38.1 million compared to net income of US$8 million in 2006.

                      Third Quarter 2008 Vs.
                    Third Quarter 2007 Results

Revenue for the third quarter of fiscal 2008 was US$523.1
million, a 1.1% increase over revenue of US$517.5 million for
the third quarter of fiscal 2007.  Revenue for the Government
Services (GS) segment, which represented 65.7% of company
revenue, increased to US$343.6 million for the third quarter of
fiscal 2008, up US$1.4 million or 0.4% from the third quarter of
fiscal 2007.  GS revenue grew through additional work supporting
the International Narcotics Air Wing program and peacekeeping
activities in Africa.  This was offset by the conclusion of
construction and camp support task orders in Iraq.  Revenue for
the Maintenance and Technical Support Services segment, which
represented 34.3% of Company revenue, increased to US$179.5
million for the third quarter of fiscal 2008, up US$4.2 million
or 2.4% from the third quarter of fiscal 2007.  MTSS revenue
grew primarily through new business in the aviation and
maintenance business area, partially offset by reduced manning
under the Contract Field Teams program.

Operating income was US$30.8 million or 5.9% of revenue in the
third quarter of fiscal 2008, compared to US$32.3 million or
6.2% of revenue in the third quarter of fiscal 2007.  Operating
income decreased primarily due to an increase in selling,
general and administrative expenses.  Factors contributing to
the increased SG&A included:

    (i) costs incurred in fiscal 2008 related to Sarbanes-Oxley
        compliance preparation;

   (ii) consulting costs related to proposal activity; and

  (iii) general SG&A costs necessary to support the current and
        anticipated growth of the company's business.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) in the third quarter of fiscal 2008 decreased 1.3% to
US$44.3 million or 8.5% of revenue, compared to US$44.9 million
or 8.7% of revenue in the third quarter of fiscal 2007.  The
decrease is primarily due to the previously discussed decrease
in operating income.

Earnings Per Share increased to US$0.21 in the third quarter of
fiscal 2008 from US$0.20 in the third quarter of fiscal 2007.  
EPS in the third quarter of fiscal 2008 includes the favorable
impact of lower interest expense, higher earnings from
affiliates, higher other income and a lower effective income tax
rate, offset by the previously discussed decrease in operating
income.

                     Year-to-Date Results

Revenue for the first nine months of fiscal 2008 was US$1,566.9
million, a 2.4% increase over revenue of US$1,529.9 million for
the first nine months of fiscal 2007.  Revenue for the GS
segment increased to US$1,026.8 million for the first nine
months of fiscal 2008, up US$8.6 million or approximately 1.0%
from the first nine months of fiscal 2007. GS revenue grew
principally as a result of increased work supporting the
International Narcotics Air Wing program, offset by the
conclusion of construction camp support task orders in Iraq and
the conclusion of protective services task orders.  Revenue for
the MTSS segment for the first nine months of fiscal 2008
increased to US$540.1 million, up US$28.4 million or 5.5% from
the first nine months of fiscal 2007.  MTSS revenue grew through
increased overhauls on engines and propellers performed under
the Life Cycle Contractor Support program, increased logistics
support services provided to the U.S. Air Force C-21 fleet, and
new business in the aviation and maintenance business area.  
This was partially offset by reduced manning under the Contract
Field Teams program.

Operating income increased US$26.4 million or 37.4% to US$97.0
million or 6.2% of revenue for the first nine months of fiscal
2008, compared to US$70.6 million or 4.6% of revenue for the
first nine months of fiscal 2007.  The increase in operating
income, both in dollars and as a percentage of revenue, was
primarily due to increased revenue volumes, improved contract
performance, lower depreciation and amortization expense and the
elimination of certain one-time costs of US$17.9 million that
were incurred during the first nine months of fiscal 2007.

EBITDA for the first nine months of fiscal 2008 increased
US$27.6 million or 25.6% to US$135.3 million or 8.6% of revenue,
compared to US$107.7 million or 7.0% of revenue for the first
nine months of fiscal 2007.  The increase is due to the
previously discussed increase in operating income in fiscal
2008, excluding the decrease in depreciation and amortization
expense.

EPS increased to US$0.67 for the first nine months of fiscal
2008 compared to EPS of US$0.15 for the first nine months of
fiscal 2007.  EPS for the first nine months of fiscal 2008
benefited from the previously discussed higher operating income,
higher earnings from affiliates, higher interest income and
lower interest expense, offset by higher weighted average
outstanding shares compared to the first nine months of fiscal
2007 due to the Company's initial public offering in May of
2006.  EPS for the first nine months of fiscal 2007, on an after
tax basis, included the unfavorable impact of US$0.22 per share
of non-recurring expenses associated with the company's initial
public offering and US$0.21 per share of the previously
referenced one-time costs.

Cash used by operations was US$49.3 million for the first nine
months of fiscal 2008 compared to cash provided by operations of
US$45.8 million for the first nine months of fiscal 2007.  The
cash used by operating activities in the nine months ended
Dec. 28, 2007 was primarily due to unfavorable conditions
relating to working capital, specifically accounts receivable.  
The increase in the accounts receivable balance was due to the
temporary delay in cash collections and in receiving executed
contract modifications from the Department of State, primarily
due to accounting, process and system changes within the DoS.  
As a point of reference, as of Dec. 28, 2007, approximately 68%
of the company's accounts receivable balance was due from the
DoS.  As a consequence, the company's Days Sales Outstanding at
Dec. 28, 2007 was 92 days an increase from 77 days at
Dec. 29, 2006.  The company is working diligently with DoS to
correct this problem, but many of the actions necessary are
internal to the customer.

Total debt was US$607.4 million at Dec. 28, 2007, a reduction of
US$23.6 million from March 30, 2007.  This reduction is
primarily due to an excess cash flow payment of US$34.6 million
required by the terms of our credit agreement, offset by US$13.5
million borrowed under our revolving credit facility.

Backlog as of Dec. 28, 2007 was US$6.3 billion. Included in this
total is US$3.5 billion from the linguist and translation
services contract awarded by the U.S. Army Intelligence and
Security Command to Global Linguist Solutions LLC, a joint
venture of DynCorp International and McNeil Technologies.  The
five-year contract, with a maximum value of US$4.6 billion, was
originally awarded in December 2006.  The Army terminated the
contract for convenience after the Government Accountability
Office sustained the incumbent's original protest.  INSCOM
requested and received revised proposals and again awarded the
contract to GLS.  The incumbent protested this second award and
the Army decided to take corrective action, resulting in
dismissal of the second protest.  Currently, the Army is
implementing a corrective action plan which will result in a new
award decision.  Our backlog and estimated remaining contract
value metrics may require future adjustment depending on the
outcome of this new award decision.

                    Fiscal 2008 Guidance

The company is revising its financial guidance for the fiscal
year ending March 28, 2008, based upon current outlook.  This
guidance excludes the previously discussed INSCOM contract.

                       About Dyncorp.

DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE:   
DCP) through its operating company DynCorp International LLC, is
a provider of specialized mission-critical technical services,
mostly to civilian and military government agencies.  It
operates major programs in law enforcement training and support,
security services, base operations, aviation services and
operations, and logistics support worldwide.  Headquartered in
Falls Church, Virginia, DynCorp International LLC has
approximately 14,600 employees worldwide including Haiti.

                        *     *     *

DynCorp still carries Standard and Poor's BB- rating assigned on
June 15, 2006.  S&P said the outlook is stable.




===============
M A L A Y S I A
===============


MALAYSIA AIRLINES: May Earn MYR1.5 Bil. Annually by 2012
--------------------------------------------------------
Malaysia Airlines Bhd can achieve an annual profit of MYR1.5
billion by 2012 based on its business transformation plan (BTP2)
if it stretches its limit and even after factoring in the
challenges in the industry such as overcapacity, air traffic
liberalization and rising fuel cost, Sharon Tan wrote for the
Daily Edge.

According to the report, there is even the possibility that the
company can earn a higher profit of between MYR2 billion and
MYR3 billion per annum, if the magnitude of overcapacity and
liberalisation be less than anticipated, the airlines said in an
announcement made in Bursa Malaysia.

However, overcapacity is the airline's biggest concern as 400
new aircraft will hit the skies this year.  This will intensify
the competition and erode MAS' yield and profit margins. Coupled
that with the imminent liberalization of Asian skies and rising
oil prices, MAS would fail badly if it does not transform
itself, the report added.

To meet the challenges, the company has outlined five stategies
that will help the company achieve its goal, which are:

   * MAS must maintain the high quality products and services
     offered (5-star) and these have to be constantly matched to
     the specific needs of its customers;

   * Lower costs: MAS must reduce its structural and operational
     costs without compromising on safety and security;

   * Competitive fares: With lower cost base, MAS will be able
     to offer low and competitive fares to its customers, and
     still be able to make a profit;

   * Get more customers, more revenue: With high quality
     products and services at low/competitive fares, more
     passengers will choose to fly on MAS.  This translates into
     more revenue; and

   * Grow network, build capacity: With more revenue and profit,
     MAS can invest in growing its network and building its
     capacity.  MAS will open up more routes and acquire more
     planes, and this will lead the company to sustainable,
     profitable growth.

Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and
international flights.  Its global network comprised 32 domestic
and 86 international destinations.  Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.

The carrier posted a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes.  In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007.  Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.




====================
N E W  Z E A L A N D
====================


BOOTH FAMILY: Faces CIR's Wind-Up Petition
------------------------------------------
On November 9, 2007, the Commissioner of Inland Revenue filed a
petition to have Booth Family Amusements Ltd.'s operations wound
up.

The petition will be heard before the High Court of Auckland on
April 24, 2008, at 10:00 a.m.

The CIR's solicitor is:

          Kay S. Morgan
          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street
          PO Box 432, Hamilton
          New Zealand
          Telephone:(07) 959 0373
          Facsimile:(07) 959 7614


CALL NZ: Debt Recovery Files Wind-Up Petition for Firm
------------------------------------------------------
On November 2, 2007, Debt Recovery Group NZ Limited filed a
petition to have Call NZ Ltd.'s operations wound up.

The petition will be heard before the High Court of Auckland on
March 13, 2008, at 10:45 a.m.

Debt Recovery's solicitor is:

          Malcolm Whitlock
          c/o Debt Recovery Group NZ Limited
          Level 5, 5 Short Street
          Newmarket, Auckland
          New Zealand


CLEAR CHANNEL: Pending US$19B Buyout Unaffected by Market Frets
---------------------------------------------------------------
Private investment firms, Thomas H. Lee Partners LP and Bain
Capital Partners LLC, remained undaunted in their plans to buy
Clear Channel Communications Inc. for US$39.20 per share amid
market's worries, various reports relate.

Days before, investors were stirred when the buyers refused to
comment on the pending buyout deal worth around US$19.5 billion
that led to speculation that deal will not push through, reports
say.

THL co-president Anthony DiNovi cleared out the issue at
Tuesday's conference by explaining he would violate Securities
and Exchange Commission rules if he commented on the pending
deal, reports reveal.

Some news disclose that the buyout firms provided personnel to
Clear Channel to help execute steps to reduce expenses.  This
report led investors to believe that the would-be buyers have
not given up, according to the report.

Clear Channel told reporters Tuesday that the pending deal will
be completed by March 2008, as previously planned.

              FCC Publication on the Sale Deal

The Federal Communications Commission published in its Web site
that Clear Channel Communications Inc., Thomas H. Lee Equity
Fund VI LP and Bain Capital (CC) IX LP have jointly submitted
applications to the Commission.  The applications seek consent
to transfer control of certain subsidiaries of Clear Channel
that are the holders of various Commission licenses and other
authorizations.  Clear Channel, through its subsidiaries,
controls 1172 broadcast radio stations and 35 broadcast
television stations.  The applications seek Commission consent
to the proposed transfer of control of Clear Channel from its
shareholders to the Transferees.  After the transfer, the
company would continue to operate under the name "Clear Channel
Communications Inc." under the control of the Transferees.

             About Clear Channel Communications

Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers.  The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2008, Standard & Poor's Ratings Services said its
ratings on Clear Channel Communications Inc., including the 'B+'
corporate credit rating, remain on CreditWatch with negative
implications.  S&P originally placed them on CreditWatch on
Oct. 26, 2006, following the company's announcement that it was
exploring strategic alternatives to enhance shareholder value.


DIRECT CAPITAL: Taps Shane Francis Hussey as Liquidator
-------------------------------------------------------
Shane Francis Hussey was appointed liquidator of Direct Capital
Partners Beta Investments Ltd. on December 21, 2007.

The Liquidator can be reached at:

          Shane Francis Hussey
          Hussey & Co
          Level 7, 55-65 Shortland Street
          PO Box 1325, Auckland
          New Zealand
          Telephone:(09) 300 5481
          Facsimile:(09) 300 5489


DUCT INSTALLATION: Court to Hear Wind-Up Petition on Feb. 14
------------------------------------------------------------
A petition to have Duct Installation & Services Ltd.'s
operations wound up will be heard before the High Court of
Auckland on February 14, 2008.

The petition was filed by the Commissioner of Inland Revenue on
September 10, 2007.

The CIR's solicitor is:

          Sandra Joy North
          c/o Inland Revenue Department
          Legal and Technical Services
          17 Putney Way
          PO Box 76198, Manukau
          Auckland 2241
          New Zealand
          Telephone:(09) 985 7274
          Facsimile:(09) 985 9473


KRONOS INC: Discloses New Trails in Workforce Management
--------------------------------------------------------
Kronos(R) Incorporated is redefining how organizations large and
small manage their workforce.  Organizations across a broad
spectrum of industries are choosing Kronos for its proven
ability to reduce costs, increase productivity, improve employee
satisfaction, and ultimately enhance the level of service they
provide.

According to a report published this month by AMR Research,
"After streamlining and automating ERP and the supply chain, one
of the last major business process frontiers left for
optimization is the lifecycle of employee engagement.  Many
organizations are realizing their people are the source of the
innovation they seek for competitive advantage, yet they have
neglected and isolated the procedures, policies, and processes
to attract and retain them."

As testament to the potential of this major business process
frontier, during the first quarter of Fiscal 2008, Kronos
secured and/or renewed contracts with organizations around the
world such as:

    * Aramark China, provider of food, hospitality, facility
      management services, and high-quality uniform and work
      apparel

    * Cardinal Health System, a regional integrated network
      providing a full range of health services

    * Costco, the largest wholesale club operator in the U.S.

    * George Weston Foods, one of Australia's largest food
      manufacturers

    * The Golden Nugget, a luxury casino and resort on Fremont
      Street in Las Vegas

    * Gottschalks, a regional department store chain in
      California

    * Gundersen Lutheran Health System, one of the campuses for
      the University of Wisconsin-Madison Medical School and
      School of Nursing

    * Hortimax, a leading provider of solutions for professional
      greenhouse companies worldwide

    * IKEA, leading home furnishing retailer

    * Jamba Juice, leader in healthy blended beverages, juices,
      and good-for-you snacks

    * Northwestern University, one of the leading universities
      in the U.S.

    * Sheetz, one of the U.S.'s fastest-growing family-owned and
      operated convenience store chains

    * Wesley Mission Brisbane, provider of innovative and
      quality aged care services in Australia

    * Winegardner & Hammons, a full-service hotel management
      company

Once again extending its impressive record of revenue growth and
profitability, first quarter Fiscal 2008 revenues grew to
US$165.2 million.  Earnings before interest, tax, and
amortization rose 22 percent to US$23.3 million.  Kronos' first
quarter Fiscal 2008 results mark the company's 112th consecutive
quarter of year-over-year revenue growth and 83rd consecutive
quarter of EBITA profitability.

"Organizations choose Kronos because of our deep-rooted
expertise in managing the workforce.  With tens of thousands of
customers, we have more experience solving workforce-related
challenges than many other vendors combined.  In fact, during
the quarter, we celebrated our 30th anniversary in business,"
said Aron Ain, Kronos chief executive officer.

"But we're not resting on our laurels. This year, we will build
upon our undisputed market leadership in workforce management.
We're off to a great start, having already shipped nearly three
million Workforce Central(R) 6 employee licenses since
the suite became available in June.  This year, in the area of
talent management, we will help organizations with a high
concentration of field-based employees to recruit and retain a
high-quality workforce. To that end, we extended our
market-leading position in the first quarter by acquiring Deploy
Solutions.  Our third strategic goal is to continue our global
expansion by targeting new markets and serving the workforce
management needs of multinational organizations.  We're pleased
to report that our first quarter international sales reached an
all-time high."

Headquartered in Chelmsford, Mass., Kronos Inc. --
http://www.kronos.com/-- provides a suite of solutions that
automate employee-centric processes, as well as tools to
optimize the workforce.  It provides workforce management
software, including time and attendance software and talent
management (recruiting) software.  The company offers its
products primarily in the United States, Canada, Mexico, the
United Kingdom, Australia, and New Zealand.

The company posts about US$617 million of revenues for the
twelve months ended March 31, 2007.

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service assigned Kronos, Inc. a
first time B2 corporate family rating and a stable rating
outlook.  Moody's also assigned a first time Ba3 rating to the
company's:

  -- first lien credit facilities (US$665 million term loan,
     due 2014, and US$60 million revolving credit facility,
     expires 2013); and

  -- a Caa1 rating to its US$390 million second lien term loan,
     due 2015.


MACE & MOUNTAIN: Placed Under Voluntary Liquidation
---------------------------------------------------
The shareholders of Mace & Mountain Ltd. met on Sept. 28, 2007,
and resolved to voluntarily liquidate the company's business.

Bruce Carlaw Richards was then appointed as liquidator.

The Liquidator can be reached at:

          Bruce Carlaw Richards
          Staples Rodway New Plymouth
          109-113 Powderham Street
          PO Box 146, New Plymouth
          New Zealand


MELANGE HOLDINGS: Wind-Up Petition Hearing Slated for Feb. 28
-------------------------------------------------------------
The High Court of Auckland will hear on February 28, 2008, at
10:45 a.m., a petition to have Melange Holdings Ltd.'s
operations wound up.

The Commissioner of Inland Revenue filed the petition on
Oct. 4, 2007.

The CIR's solicitor is:

          Kay S. Morgan
          Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street
          PO Box 432, Hamilton
          New Zealand
          Telephone:(07) 959 0373
          Facsimile:(07) 959 7614


NED KELLY: Wind-Up Petition Hearing Slated for April 24
-------------------------------------------------------
The High Court of Auckland will hear on April 24, 2008, at 10:00
a.m., a petition to have Ned Kelly Building Supplies (2003)
Ltd.'s operations wound up.

Bute Road Properties Limited filed the petition against the
company.

Bute Road's solicitor is:

          Malcolm Whitlock
          Debt Recovery Group NZ Limited
          Level 5, 5 Short Street
          Newmarket, Auckland
          New Zealand


NEWMARKET ENTERTAINMENT: Taps Bryan Williams as Liquidator
----------------------------------------------------------
Bryan Edward Williams was named liquidator of Newmarket
Entertainment Ltd. on Jan. 15, 2008.

Creditors are required to file their proofs of debt by
Feb. 11, 2008, to be included in the company's dividend
distribution.

The Liquidator can be reached at:

          Bryan Edward Williams
          c/o Bryan Williams & Associates
          Insolvency Practitioners
          131 Taupaki Road
          RD 2, Henderson 0782
          New Zealand
          Telephone:(09) 412 9762
          Facsimile:(09) 412 9763


WEST SKY: Subject to CIR's Wind-Up Petition
-------------------------------------------
On November 9, 2007, the Commissioner of Inland Revenue filed a
petition to have West Sky Couriers Ltd.'s operations wound up.

The petition will be heard before the High Court of Auckland on
April 1, 2008, at 10:00 a.m.

The CIR's solicitor is:

          Kay S. Morgan
          c/o Inland Revenue Department
          Legal and Technical Services
          1 Bryce Street
          PO Box 432, Hamilton
          New Zealand
          Telephone:(07) 959 0373
          Facsimile:(07) 959 7614


ZIG ZAG: Creditors' Proofs of Debt Due on February 28
-----------------------------------------------------  
The creditors of Zig Zag Forest Company Ltd. are required to
file their proofs of debt by February 28, 2008, to be included
in the company's dividend distribution.

The company's liquidator is:

          Hamish Robert Giller
          107 Heu Heu Street
          Taupo
          New Zealand
          Telephone:(07) 378 7150


KRONOS INC: Discloses New Trails in Workforce Management
--------------------------------------------------------
Kronos(R) Incorporated is redefining how organizations large and
small manage their workforce.  Organizations across a broad
spectrum of industries are choosing Kronos for its proven
ability to reduce costs, increase productivity, improve employee
satisfaction, and ultimately enhance the level of service they
provide.

According to a report published this month by AMR Research,
"After streamlining and automating ERP and the supply chain, one
of the last major business process frontiers left for
optimization is the lifecycle of employee engagement.  Many
organizations are realizing their people are the source of the
innovation they seek for competitive advantage, yet they have
neglected and isolated the procedures, policies, and processes
to attract and retain them."

As testament to the potential of this major business process
frontier, during the first quarter of Fiscal 2008, Kronos
secured and/or renewed contracts with organizations around the
world such as:

    * Aramark China, provider of food, hospitality, facility
      management services, and high-quality uniform and work
      apparel

    * Cardinal Health System, a regional integrated network
      providing a full range of health services

    * Costco, the largest wholesale club operator in the U.S.

    * George Weston Foods, one of Australia's largest food
      manufacturers

    * The Golden Nugget, a luxury casino and resort on Fremont
      Street in Las Vegas

    * Gottschalks, a regional department store chain in
      California

    * Gundersen Lutheran Health System, one of the campuses for
      the University of Wisconsin-Madison Medical School and
      School of Nursing

    * Hortimax, a leading provider of solutions for professional
      greenhouse companies worldwide

    * IKEA, leading home furnishing retailer

    * Jamba Juice, leader in healthy blended beverages, juices,
      and good-for-you snacks

    * Northwestern University, one of the leading universities
      in the U.S.

    * Sheetz, one of the U.S.'s fastest-growing family-owned and
      operated convenience store chains

    * Wesley Mission Brisbane, provider of innovative and
      quality aged care services in Australia

    * Winegardner & Hammons, a full-service hotel management
      company

Once again extending its impressive record of revenue growth and
profitability, first quarter Fiscal 2008 revenues grew to
US$165.2 million.  Earnings before interest, tax, and
amortization rose 22 percent to US$23.3 million.  Kronos' first
quarter Fiscal 2008 results mark the company's 112th consecutive
quarter of year-over-year revenue growth and 83rd consecutive
quarter of EBITA profitability.

"Organizations choose Kronos because of our deep-rooted
expertise in managing the workforce.  With tens of thousands of
customers, we have more experience solving workforce-related
challenges than many other vendors combined.  In fact, during
the quarter, we celebrated our 30th anniversary in business,"
said Aron Ain, Kronos chief executive officer.

"But we're not resting on our laurels. This year, we will build
upon our undisputed market leadership in workforce management.
We're off to a great start, having already shipped nearly three
million Workforce Central(R) 6 employee licenses since
the suite became available in June.  This year, in the area of
talent management, we will help organizations with a high
concentration of field-based employees to recruit and retain a
high-quality workforce. To that end, we extended our
market-leading position in the first quarter by acquiring Deploy
Solutions.  Our third strategic goal is to continue our global
expansion by targeting new markets and serving the workforce
management needs of multinational organizations.  We're pleased
to report that our first quarter international sales reached an
all-time high."

Headquartered in Chelmsford, Mass., Kronos Inc. --
http://www.kronos.com/-- provides a suite of solutions that
automate employee-centric processes, as well as tools to
optimize the workforce.  It provides workforce management
software, including time and attendance software and talent
management (recruiting) software.  The company offers its
products primarily in the United States, Canada, Mexico, the
United Kingdom, Australia, and New Zealand.

The company posts about US$617 million of revenues for the
twelve months ended March 31, 2007.

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service assigned Kronos, Inc. a
first time B2 corporate family rating and a stable rating
outlook.  Moody's also assigned a first time Ba3 rating to the
company's:

  -- first lien credit facilities (US$665 million term loan,
     due 2014, and US$60 million revolving credit facility,
     expires 2013); and

  -- a Caa1 rating to its US$390 million second lien term loan,
     due 2015.


* NEW ZEALAND: Fitch To Hold 2008 Outlook Teleconference Today
--------------------------------------------------------------
Fitch Ratings will be hosting a teleconference Feb. 4, 2008, at
10 a.m. (Australian EDST)/7AM SG/HK ) to discuss the agency's
2008 outlook for New Zealand utilities.

The teleconference will be hosted by Fitch's New Zealand energy
and utilities team: Steve Durose, Regional Co-Head of Energy &
Utilities, Asia-Pacific; Gavin Madson, Director; Janet
Willoughby, Associate Director and Sajal Kishore, Associate
Director.  The team will discuss the outlook for the sector in
2008 and the factors, which Fitch expects will influence credit
quality in the coming year.

The call coincides with the release of three related reports
-- "Australian Utilities: Safe Haven in 2008?", "Australian Oil
& Gas: Credit Outlook 2008" and "New Zealand Utilities: Credit
Outlook 2008" -- which will be published today and available on
http://www.fitchratings.comand http://www.fitchratings.com.au

Presentation slides for the conference call will be available at
http://www.fitchratings.com.aufrom 9:30 a.m. EDST on  
Feb. 4, 2008.

To register for this event, please contact Katrina Stuve at +612
8256 0326/ Katrina.Stuve@fitchratings.com

The are the details of the teleconference:

     -- Australian Toll Free: 1800 730 003
     -- New Zealand Toll Free: 0800 442 062
     -- Hong Kong Toll Free: 800 908 771
     -- Japan Toll Free: 0053 125 0002
     -- Singapore Toll Free: 800 616 3006
     -- UK Toll Free: 0800 169 8227
     -- U.S./Canada: 1877 546 5354
     -- Alternate International: +612 9112 4629
     -- Call Leader: Steve Durose

Replay Information:

     -- A replay will be available after 12 p.m. AEDST on  
        Feb. 4, 2008 and will remain on
        http://www.fitchratings.comuntil Feb. 11.

     -- Australia: 1800 735 513 and key in identification number
        125422.

     -- International: +612 8524 1009 and key in identification
        number 125422.





=====================
P H I L I P P I N E S
=====================


FEDDERS CORP: Bidding Procedure OK'd for Sale of Unit's Assets
--------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
approved Fedders Corporation and its debtor-affiliates' proposed
bidding procedures for the sale of substantially all assets of
Fedders Addison Company Inc.

Fedders Addison is an affiliate of the Debtors acquired on
November 2004 for US$7.8 million.

The Debtors tell the Court that RG Adding LLC, a newly formed
affiliate of Roberts, LLC, agreed to buy Fedders Addion's assets
for US$14,400,000 in cash plus the assumed liabilities.

                       Sales Protocol

Norman L. Pernick, Esq., at Saul Ewing LLP, says the bid
deadline have already expired yesterday Jan. 31, 2008, however,
it may be extended by the Debtors at its sole discretion.

To participate in the public auction, interested parties must
submit a US$1,000,000 cash deposit, of which US$750,000 is
potentially forfeitable.

An auction will be held on Feb. 6, 2008, at 10:00 a.m., at the
office of Saul Ewing LLP at 222 Delaware Avenue, Suite 1200.

In addition, the Debtors say that they agreed to pay US$250,000
as break-up fee and US$100,000 in reimbursement for out-of-
pocket expenses.

A sale hearing has been set on Feb. 7, 2008, at 10:00 a.m., to
consider approval of the Debtors' request.  The hearing will be
held at 824 Market Street, 6th floor in Wilmington, Delaware.

Objection to approval must be filed on or before Jan. 31, 2008.

Channin Capital Partners LLC and Business Development Asia LLC
will assist the Debtors in marketing Fedders Addison's assets.

                    About Fedders Addison

Headquartered in Orlando, Florida, Fedders Addison Company Inc.
manufactures semi-custom and commercial HVAC products, rooftop
packaged units, split systems, water source heat pumps and wall-
mount units.

                  About Fedders Corporation

Based in Liberty Corner, New Jersey, Fedders Corporation --
http://www.fedders.com/-- manufactures and markets air
treatment products, including air conditioners, air cleaners,
dehumidifiers, and humidifiers.  The company has production
facilities in the United States in Illinois, North Carolina, New
Mexico, and Texas and international production facilities in the
Philippines, China and India.

The company filed for Chapter 11 protection on Aug. 22, 2007,
(Bankr. D. Del. Case No. 07-11182).  Its debtor-affiliates
filed for separate Chapter 11 cases.  Norman L. Pernick, Esq.,
Irving E. Walker, Esq., and Adam H. Isenberg, Esq., of Saul,
Ewing, Remick & Saul LLP represents the Debtors in their
restructuring efforts.  The Debtors have selected Logan &
Company Inc. as claims and noticing agent.  The Official
Committee of Unsecured Creditors is represented by Brown Rudnick
Berlack Israels LLP.  When the Debtors filed for protection from
its creditors, it listed total assets of US$186,300,000 and
total debts of US$322,000,000.

As reported in the Troubled Company Reporter on Jan. 21, 2008,
the Court extended the Debtors' exclusive period to file a
Chapter 11 plan until Feb. 29, 2008.


FLEXTRONICS INTERNATIONAL: Completes Acquisition of Avail
---------------------------------------------------------
Flextronics International Ltd. has completed its acquisition of
Avail Medical Products Inc.

As a division of the Flextronics Medical segment, Avail will
continue to operate as a stand-alone business.  Flextronics
Medical segment is one of the fastest growing Flextronics
segments focused on providing outsourced design, manufacturing
and logistics services to the medical device and equipment
marketplace, including consumer diagnostic devices, lab and life
science equipment, imaging and patient monitoring equipment,
hospital beds, and drug delivery devices.  With the combination
of continued strong organic growth and the acquisition of Avail,
Flextronics Medical expects to generate US$850-US$950 million in
revenue in the fiscal year ending March 31, 2009, which
represents a year-over-year expected growth rate of 90%.

"The acquisition of Avail expands our existing global design and
manufacturing capabilities creating a more robust and
competitive offering that now includes a wide range of
disposable medical devices such as catheters, wound management
and drug delivery devices.  The addition of Avail establishes
Flextronics as a leading supplier and partner for the medical
industry," said Dan Croteau, president, Flextronics Medical.  
"This is a highly strategic acquisition for Flextronics and I am
pleased to welcome the talented Avail staff to our
organization."

                     About Flextronics

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 including Brazil, Mexico, Hungary, Sweden, United
Kingdom, among others.

                        *     *     *

Flextronics International Ltd. continues to carry Moody's
"Ba1" probability of default and long-term corporate family
ratings with a negative outlook.  

The company also carries Standard & Poor's "BB+" long-term
local and foreign issuer credit ratings with a negative
outlook.


RIZAL COMMERCIAL: Moody's Changes B3 Rating Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service has changed the outlook on Rizal
Commercial Banking Corporation's E+ bank financial strength
rating and foreign currency hybrid tier 1 debt rating of B3 to
positive from stable.  The rating action does not affect the
bank's B1 foreign currency long-term deposit ratings and foreign
currency senior unsecured debt rating of Ba3, which maintain
their positive outlook.

The outlook on RCBC's foreign currency Not-Prime short-term
deposit rating remains unchanged at stable.

"The change in outlook reflects RCBC's enhanced economic
solvency following its capital issuances over the past two years
and steady reduction in non-performing assets," says Richard
Lung, Moody's VP/Senior Analyst, adding, "Moody's expects the
new management team -- under the leadership of Lorenzo Tan and
in place since early 2007 -- to further expedite the bank's
turnaround, given their experience in restructuring other
financial institutions in the Philippines.

"Moreover, we also note a positive trend in improving corporate
governance at RCBC.  A shift in the board of director's
composition to include more independent directors and a broader
share-ownership of the bank point to diminishing risk of credit
allocation being subject to insider and related-party
influences," says Lung, also Moody's lead analyst for the bank.

A future upgrade of RCBC's BFSR could be envisaged if the bank
demonstrates sustained improvements in its profitability and
expansion of its franchise.  An upgrade may also be considered
if the bank demonstrates it can, independent of regulatory
allowances, continue to cleanse its balance sheet and sustain
the improvement in its asset quality through the business cycle.

Rizal Commercial Bank is the seventh largest commercial bank in
the Philippines and had total assets of PHP227 billion at end-
September 2007.


PHILLIPPINE NAT'L BANK: Posts PHP1.23-Bil. Net Income in 2007
-------------------------------------------------------------
Philippine National Bank reported a consolidated net income of
PHP1.23 billion in 2007, a 10-year historical high for the bank,
a growth of 24 times over in five years, and an increase of
50.1% over audited income of PHP820 million in 2006.  The last
time the bank surpassed the PHP1 billion net income mark was in
1997, PNB points out in a press release.

At the end of 2007, PNB has consolidated assets of PHP240.16
billion and consolidated stockholders equity of PHP26.59
billion.  Out of excess liquity, PNB was able to settle in full
its PHP6.1-billion loan to the Philippine Deposit Insurance
Corp. in July 2007, four years ahead of its due date, the
release states.

According to PNB, its Loans & Receivables-Net grew to PHP78.5
billion in 2007 while deposits aggregated PHP181.18 billion.  

Philippine National Bank -- http://www.pnb.com.ph/-- is the
Philippine's first universal bank established on July 22, 1916.
The bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units.  Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance.  Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services.  It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on
Nov. 6, 2006, that Moody's Investors Service revised the outlook
of Philippine National Bank's foreign currency long-term deposit
rating of B1, local currency senior debt rating of Ba2, and
local currency subordinated debt rating of Ba3 to stable from
negative.

The TCR-AP also reported that Standard and Poor's Ratings
Services gave PNB 'B' Short-Term Foreign Issuer Credit and
Short-Term Local Issuer Credit Ratings, as well as 'B-' Long-
Term Foreign Issuer Credit and Long-Term Local Issuer Credit
Ratings effective as of April 26, 2006.


SCOTTISH RE: Seth Gardner Joins Board of Directors
--------------------------------------------------
Scottish Re Group Limited has appointed Seth Gardner as a member
of the Board of Directors of Scottish Re Group Limited,
effective Jan. 29, 2008.  Mr. Gardner was designated for
election to the Board by MassMutual Capital Partners LLC and
SRGL Acquisition, LLC (an affiliate of Cerberus Capital
Management, LP) per their contractual right as combined majority
shareholders.  The Board voted unanimously to appoint Mr.
Gardner to the Board.

"We are pleased to welcome Seth.  His knowledge and experience
make him a great addition to the Board and Scottish Re," stated
Jonathan Bloomer, Chairman, Board of Directors.

Mr. Gardner is a Managing Director and Associate General Counsel
at Cerberus Capital Management, LP in New York City.  He joined
Cerberus in 2003.  From 1995 to 2003, Seth was an associate at
Wachtell, Lipton, Rosen & Katz, a New York City law firm.

Mr. Gardner graduated from Duke University in 1989 with an AB
degree.  He also received an MBA degree from the Fuqua School of
Business and a JD degree from the Duke University School of Law
in 1994.

Mr. Gardner will be replacing Lenard Tessler who resigned from
the Board to focus on other business opportunities.  "I enjoyed
working with Scottish Re as a member of the Board and will
continue to be involved with the company as an affiliate to an
investor of Scottish Re," stated Lenard Tessler.  His
resignation from the Board was effective Jan. 29, 2008.

Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist.  Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore.  Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc.  Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Moody's Investors Service has affirmed the
ratings of Scottish Re Group Limited's senior unsecured shelf of
(P)Ba3 and changed the outlook to negative from stable.


VULCAN INDUSTRIAL: To Enter Into Farm-Out Agreement with Intex
--------------------------------------------------------------
Vulcan Industrial & Mining Corp. will enter into a farm out
agreement with Intex Resources Phil. Inc., a disclosure with the
Philippine Stock Exchange reveals.

According to the PSE filing, Intex will aid the company in
evaluation of its gold project in Cordon, Isabela.  Intex is
given three months to undertake the study.

In preparation of the farm-out deal, the parties signed a
confidentiality pact where they agree that all data and
information gathered in the study will be held in strict
confidentiality.  The parties agree to give Intex a prior and
preferential right to negotiate and enter into an agreement with
Vulcan should the former decide to invest in the project.

Headquartered in Mandaluyong, Vulcan Industrial & Mining
Corporation is engaged mainly in oil and mineral exploration
projects.  One of its successful ventures is the concrete
aggregate project in Rodriguez, Rizal, which was spun-off into a
joint venture company called Vulcan Materials Corporation.  VMC
is on its tenth year of rock aggregate quarrying, crushing and
marketing.

VMC has an edge over the other rock aggregates companies due to
its captive market in D.M. Consunji, Inc., one of the giants in
the construction industry, which owns 49% of VMC, the remaining
51% is owned by Vulcan Industrial.

As of December 31, 2001, the company is still in the exploration
stage and no discovery of oil and gas in commercial quantities
has been made.  The full recovery of deferred petroleum
exploration costs is dependent on the discovery of oil and gas
in commercial quantities.

                        *     *     *

J. Carlitos Cruz at Sycip Gorres Velayo raised significant doubt
on Vulcan Industrial & Mining Corporation's ability to continue
as a going concern after auditing the company's financials for
the fiscal year ended Dec. 31, 2006.  Mr. Cruz cited the
company's and its subsidiary's current liabilities exceeding
their current assets by PHP204.5 million and PHP231.3 million,
respectively.  In addition, the company and its subsidiary had
difficulty meeting their obligations to their creditor banks.

For the year ending 2006, the group suffered a net loss of
PHP32.5 million, its third consecutive annual net loss after
2005's PHP29.0 million and 2004's PHP47.9 million.


* PHILIPPINES: Moody's Assigns B1 Rating on US$500-Mil. Bond
------------------------------------------------------------
Moody's Investor's Service has assigned a foreign currency
rating of B1 with a positive outlook to the government of the
Philippines' forthcoming US$500 million global bond maturing on
January 15, 2032.

Moody's B1 rating on the government of the Philippines' foreign
and local currency bonds reflect the country's large public-
sector debt, which leaves the government's finances vulnerable
to shocks.  The recent change in the rating outlook to positive
from stable was prompted by progress made in stabilizing public
finances, which has placed the Philippines' key debt ratios on
an improving trend, albeit from relatively high levels.  The
outlook change also reflects policy success in reducing
inflation and anchoring inflationary expectations in line with
the country's central bank, the Bangko Sentral's, target range.

"Improved macroeconomic conditions and fiscal performance are
mutually reinforcing each other," said Moody's Senior Vice
President Tom Byrne.  A stronger peso and lower domestic
interest rates have lowered debt service payments, freeing
budgetary resources for much-needed infrastructure spending,
which is helping to resuscitate long-languishing levels of
investment in the country's economy.  Continued commitment to
public-sector fiscal reform and consolidation would bode well
for the country's macroeconomic prospects, said Byrne.




=================
S I N G A P O R E
=================


ALLCO REIT: Moody's Downgrades Corporate Family Rating to Ba1
-------------------------------------------------------------
Moody's Investors Service has downgraded Allco Commercial Real
Estate Investment Trust's corporate family rating to Ba1 from
Baa3 and has continued to place the rating on review for
possible downgrade.

"The downgrade is a result of Allco REIT's aggressive financial
strategy which relied on bridging loans to support an
acquisition; this strategy has subjected the trust to
significant market and refinancing risks," says Kathleen Lee, a
Moody's VP/Senior Analyst.

Allco REIT has SGD550 million in short-term debts maturing in
July 2008.  Even under the scenario that Allco manages to
refinance the above repayments with long-term debts, its credit
profile would still be significantly weakened.  This would be
evidenced by the trust's Total Debt/EBITDA rising above 12x,
EBITDA Interest Coverage falling below 2.5x and limited
financial flexibility as a result of its higher leverage.  In
total this would constitute a profile more in line with a Ba1
rating.

The rating remains on review for possible downgrade reflecting
Moody's concerns about Allco REIT's material near-term
refinancing needs for its S$550 million in short-term debts,
which have been solely provided by Commonwealth Bank of
Australia.

Moody's rating review will focus on (1) progress made by Allco
REIT in terming out its short-term debts and associated costs;
and (2) the trust's commitment to a more disciplined growth and
financial strategy.  However, the rating will come under further
pressure if it appears unlikely that the trust can put in place
longer-term funding at reasonable cost before the end of March,
2008.

Allco REIT is a Singapore-based real estate investment trust
managed by Allco (Singapore) Limited. Listed in March 2006, it
focuses on office and retail properties across Asia-Pacific,
including investments and related activities in Singapore, Japan
and Australia.


EPOCH MONTAGE: Court Enters Wind-Up Order
-----------------------------------------
On January 18, 2008, the High Court of Singapore entered an
order to have Epoch Montage Labs (S) Pte Ltd's operations wound
up.

Tyco Healthcare Pte Ltd filed the petition against the company.

Tyco Healthcare's liquidator is:

          The Official Receiver
          The URA Centre (East Wing)
          45 Maxwell Road #05-11/#06-11
          Singapore 069118


FRANKEL MOTOR: Wind-Up Petition Hearing Slated for February 15
--------------------------------------------------------------
A petition to have Frankel Motor Pte. Ltd.'s operations wound up
will be heard before the High Court of Singapore on
Feb. 15, 2008, at 10:00 a.m.

Oversea-Chinese Banking Corporation Limited filed the petition
against the company.

Oversea-Chinese Banking's solicitors are:

          Rajah & Tann LLP
          4 Battery Road #15-01
          Bank of China Building
          Singapore 049908


MEGAVISA SOLUTIONS: Creditors Proofs of Debt Due by February 8
--------------------------------------------------------------
The creditors of Megavisa Solutions (Singapore) Pte Ltd are
required to file their proofs of debt by February 8, 2008, to be
included in the company's dividend distribution.

The company's liquidators are:

          Peter Chay Fook Yuen
          Bob Yap Cheng Ghee
          Yeap Lam Kheng
          c/o KPMG
          16 Raffles Quay
          #22-00 Hong Leong Building
          Singapore 048581


POH LIAN: Creditors' Meeting Slated for February 4
--------------------------------------------------
Poh Lian Shipping Pte Ltd, which is in compulsory liquidation,
will hold a meeting for its creditors on February 4, 2008, at
4:30 p.m.

At the meeting, the creditors will be asked to:

   -- receive the liquidator's report on the company's wind-up
      proceedings and property disposal;

   -- determine whether or not creditors require the appointment
      of committee of inspection to act with liquidator, and if
      so who are to be the members of the committee; and

   -- discuss other business.

The company's liquidator is:

          Goh Boon Kok
          1 Claymore Drive #08-11
          Orchard Towers (Rear Block)
          Singapore 229594




===============
T H A I L A N D
===============


ARVINMERITOR: Incurs US$12MM Net Loss in Quarter Ended Dec. 30
--------------------------------------------------------------
ArvinMeritor, Inc. reported financial results for its first
fiscal quarter ended Dec. 30, 2007.

Chairperson, Chief Executive Officer and president, Chip McClure
said, "We demonstrated stronger operating performance this
quarter despite Class 8 volumes being down approximately 50
percent in North America.  The actions we have implemented
through our Performance Plus program, particularly in Europe,
are gaining traction and driving improved EBITDA and margins."

            First-Quarter Fiscal Year 2008 Results

For the first quarter of fiscal year 2008, ArvinMeritor posted
sales from continuing operations of US$1.7 billion.  Despite a
weak economy in North America and challenging global industry
conditions, sales were up compared to the first quarter of last
year for both Commercial Vehicle Systems (CVS) and Light Vehicle
Systems (LVS), due in part to favorable currency exchange rates.

EBITDA, before special items, was US$82 million, up US$10
million from the same period last year.  This increase is
primarily due to improved CVS operating results driven by the
company's Performance Plus program.

On a GAAP basis, the company's net loss from continuing
operations was US$1 million, compared to net income from
continuing operations of US$10 million in the same period last
year.

Income from continuing operations, before special items, was
US$6 million compared to US$12 million a year ago.  Special
items for the quarter include charges associated with the
company's previously announced restructuring program.

For the three months ended Dec. 30, 2007, the company reported a
US$12 million net loss compared to US$7 million net income for
the same period in the previous year.

At Dec. 31, 2007, the company's balance sheet showed total
assets of US$4.56 billion, total liabilities of US$4.02 billion
and total shareowners' equity of US$0.54 billion.    

Free cash outflow of US$305 million compared to an outflow of
US$64 million in the first quarter of fiscal year 2007.  This
represents negative cash flow from operations of US$271 million
in 2007 and US$33 million in 2006, and capital expenditures of
US$34 million in 2007 and US$31 million in 2006.

                    Business Highlights

  -- Increased CVS EBITDA margins by six-tenths of a percentage
     point in the first quarter of fiscal year 2008 compared to
     the same period last year.

  -- Acquired Mascot Truck Parts Ltd., a remanufacturer of
     transmissions, drive axle carriers, steering gears and
     drivelines, to drive the company's strategy to grow its
     Commercial Vehicle Aftermarket business.

  -- Awarded new business to supply more than four million
     window regulator motors, 700,000 plastic door modules, and
     700,000 Next Generation latch sets annually to Hyundai
     Motor Company beginning in 2010.

  -- Amended the company's senior secured credit facility to
     offer greater flexibility and access to increased
      liquidity.

                          Outlook

The company reduced its calendar year 2008 forecast for light
vehicle sales to 15.5 million vehicles in North America, down
from 15.7 million vehicles forecasted in its last update in
December.  The company's forecast for Western Europe is 17.1
million vehicles, unchanged from the last update.

ArvinMeritor's fiscal year 2008 forecast for North American
Class 8 truck production is in the range of 210,000 to 230,000
units.  The company's fiscal year 2008 forecast for heavy and
medium truck volumes in Western Europe is 530,000 to 540,000,
equal to the previous forecast.  On a calendar year basis, the
company anticipates North America Class 8 truck production to be
in the range of 235,000 to 255,000 units; and heavy and medium
truck volumes in Western Europe to be in the range of 540,000 to
550,000.

The company anticipates sales from continuing operations in
fiscal year 2008 in the range of US$6.9 billion to US$7.1
billion due to continued growth outside the U.S. and favorable
foreign exchange movements.  The outlook for full-year EBITDA
from continuing operations, before special items, is expected to
be in the range of US$385 million to US$405 million for the
fiscal year.  ArvinMeritor reaffirms its forecast for diluted
earnings per share from continuing operations, before special
items, to be in the range of US$1.40 to US$1.60. This guidance
is based on the assumption of 2.2 percent U.S. GDP growth, and
excludes gains or losses on divestitures and restructuring
costs.

ArvinMeritor is revising its forecast for free cash flow to be
in the range of negative US$75 million to negative US$125
million due in large part to increased working capital
requirements driven by higher sales volumes in Europe and Asia
Pacific.

"The improvement in our operating performance this quarter
indicates that the actions we are implementing, driven
primarily through our Performance Plus profit improvement
program, are taking effect," said Mr. McClure.  "We are on
track to achieve cost-savings of US$75 million this year, and
are pleased that ideas already implemented total US$58 million
in savings on an annual run rate basis."

"In addition, greater operational efficiencies, improved pricing
terms, execution of our global footprint plan, expansion in
emerging markets, and new business awards all demonstrate the
significant work being accomplished by our talented global
team." Mr. McClure concluded.

                     About ArvinMeritor

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- supplies integrated systems,
modules and components to the motor vehicle industry.  The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets.  ArvinMeritor employs about 29,000 people at more
than 120 manufacturing facilities in 25 countries.  These
countries are: 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: Expected Neg. Cash Flow Cues Fitch to Cut Ratings
---------------------------------------------------------------
Fitch Ratings has taken these actions on ArvinMeritor's credit
ratings:

  -- Issuer Default Rating downgraded to 'B' from 'B+';
  -- Senior secured revolver affirmed at 'BB/RR1;
  -- Senior unsecured notes downgraded to 'B/RR4' from 'B+/RR4.

The ratings affect approximately US$1.1 billion of outstanding
debt.  The Rating Outlook is Stable.

The downgrades reflect ARM's expectation of negative cash flow
in an amount greater than previously expected, which along with
economic conditions and uncertain progress on its restructuring
plan, will defer any return to positive free cash flow.  
Although Fitch previously projected negative cash flow for
fiscal 2008, changes to ARM's working capital position will
require a greater use of cash and result in higher net financing
costs.  Ancillary one-off items related to warranty reserves,
discontinued operations, a modest acquisition and ongoing
restructuring costs will exacerbate outflows.  Capital
expenditures will also increase in 2008 from the restrained
levels of the past several years.

Although segment-operating margins showed modest progress in the
first fiscal quarter, low Light Vehicle Systems margins
demonstrate that any progress from the company's restructuring
efforts has been largely offset by pricedowns and other negative
industry trends.  The working capital intensity of the business
indicates that any volatility in production or financial flows
can have material operating and cash flow repercussions.  Fitch
is concerned that economic weakness, production volatility and
second-tier supplier stresses have not yet peaked in 2008,
leading to potential further cash flow reductions.

Commercial Vehicle Systems operations should continue to rebound
from 2007 cyclical trough levels, although economic concerns
have muted the pace and extent of the rebound.   European
operations have experienced higher than expected demand but ARM
was unable to capitalize on the higher volume due to capacity
and production inefficiencies.  ARM will be increasing capital
investment in CVS Europe in 2008 to increase operational
flexibility.  ARM's LVS operations will be affected by domestic
volume declines, although Detroit Three light-vehicle sales in
North America only account for 8% of total consolidated revenue.  
Unlike recent economic cycles, Fitch expects the domestic
manufacturers to be much more aggressive in cutting production
in order to better manage inventory levels, in part due to
greater flexibility gained in the recent UAW contract.

The cyclical upturn in heavy-duty trucks, although likely to be
moderated by economic weakness, could return ArvinMeritor to
positive free cash flow in fiscal 2009.  Limited margin
improvement in LVS indicates that any free cash generation on a
consolidated basis is likely to be modest, with limited capacity
to reduce expanded debt levels.

ArvinMeritor maintains good liquidity, with US$164 million in
cash as of Dec. 31, 2007, and substantial undrawn bank and
receivables facilities.  With the exception of the company's
US$700 million revolver (which expires in 2011), the company has
no substantial maturities in the next five years.  The company's
recently amended and downsized its revolver, leaving adequate
flexibility under its financial covenant.  Total debt, including
outstanding securitizations and factoring, declined slightly in
fiscal 2007 due to asset sales, offsetting negative operating
cash flow.  The company has also expanded its utilization of
European securitizations and factoring.

The Recovery Ratings and associated notching in the debt
structure reflect Fitch's recovery expectations in a scenario in
which distressed enterprise value is allocated to the various
debt classes.  The assignment of the 'RR1' recovery rating to
the senior secured revolving credit facility indicates an
expectation of full recovery.  The secured facility benefits
from first-lien status on certain U.S. assets and a 15% carve-
out of consolidated net tangible assets.  The 'B/RR4' rating on
ARM's unsecured debt reflects an expectation that unsecured
debtholders would receive, after administrative, priority, trade
creditor and secured claims, 31% to 50% of their investment,
which is about average recovery in a distressed scenario.


                         *********


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.  Azela Jane Taladua, Rousel Elaine Tumanda,
Valerie Udtuhan, Tara Eliza Tecarro, Marjorie C. Sabijon,
Frauline Abangan, and Peter A. Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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Information contained herein is obtained from sources believed
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                 *** End of Transmission ***