/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080219.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, February 19, 2008, Vol. 9, Issue 35 Headlines A U S T R A L I A ACTION TILT: Commences Liquidation Proceedings ADDEX PTY: Members Opt to Shut Down Business ALL SITE: Taps Carter & Bettles as Liquidators CENTRO PROPERTIE: Gets AU$4.9-Billion Debt Refinancing Extension CHRYSLER LLC: Court to Decide Fate of Tooling Dispute Tomorrow EDWARDS RESTAURANT: Members Appoint Lane & Peldan as Liquidators GATT CONSTRUCTIONS: Members & Creditors Meeting Set for Today GIBWAY PTY: Liquidator to Present Wind-Up Report on February 25 HINDMARSH MECHANICAL: Members Agree on Voluntary Liquidation OXFORD YACHTS: Joint Meeting Slated for February 18 PAMRAE PTY: Undergoes Liquidation Proceedings RICAR HOLDINGS: To Declare Dividend on March 6 ROCHE O'MAY: Members' & Creditors' Meeting Slated for March 7 C H I N A , H O N G K O N G & T A I W A N CHINA EASTERN: Singapore Won't Revise Stake Bid CKK INTERNATIONAL: Creditors' Proofs of Debt Due on March 14 DANA CORP: NewCo Registers Post-Bankruptcy Common Stock DANA CORP: US$1.35 Billion Term Loan Trades on Secondary Market FIAT SPA: Joint Venture With Credit Agricole Earns EUR119 Mil. FOU WAH: Creditors' Proofs of Debt Due on March 17 GREAT SKY: Creditors' Proofs of Debt Due on March 15 INGRAM MICRO: Moody's Rates New US$275-Mln Credit Facility Ba2 LHI TECHNOLOGY: Creditors' Proofs of Debt Due on March 17 RASHTI: Members' Final General Meeting Fixed on March 31 SHOP OF GREEN: Members' Final Meeting Fixed on March 18 SICHUAN CHANG: Drops Bid for Wuxi Little I N D I A AFFILIATED COMPUTER: No Default Occurred Under Debenture AXIS BANK: Committee of Directors to Meet on Feb. 18 GMAC LLC: Cerberus' Stephen Feinberg Warns of Difficulty Ahead IFCI LTD: Doesn't Need Equity Infusion Yet, CEO Says LOK HOUSING: Reports INR586.62 Mil. Profit in Oct.-Dec. 2007 TATA MOTORS: To Fund Development of Air-Powered Car VISTEON CORP: Posts US$372 Million Net Loss in 2007 I N D O N E S I A ANEKA TAMBANG: May Acquire Freeport Indonesia's 18.72% Stake BANK MANDIRI: To Channel IDR11.7 Tril. in Home Ownership Loans BANK DANAMON: Plans to Raise IDR1.5-Trillion Bonds in H1 BANK INTERNASIONAL: 2007 Net Profit Drops 36% to IDR404.76 Bil. OWENS-ILLINOIS: Improved Cash Flow Prompts S&P's Rating Upgrade J A P A N IHI CORP: To Acquire Dutch Coating System Maker Hauzer Techno INTERNATIONAL RECTIFIER: Names O. Khaykin & R. Dahl as Directors STRATOS GLOBAL: Earns US$20 Million in Year Ended Dec. 31, 2007 K O R E A DAEWOO: Morgan Stanley Unit Emerges as Preffered Bidder M A L A Y S I A INVENSYS PLC: Answers Speculations on Ongoing Debt MALAYSIA AIRLINES: Anticipates to Earn MYR160MM in Annual MATF MALAYSIA AIRLINES: Faces Earning Challenges in '09, Kenanga Says SHAW GROUP: Cash Flow Improvement Cues S&P's Positive Outlook WEMBLEY INDUSTRIES: Has Until June 30 to Sign DA w/ Datuk Bandar N E W Z E A L A N D APEX TRAINING: Subject to CIR's Wind-Up Petition BRIDGE CLIMB: Placed Under Voluntary Liquidation DUNLEAHY INVESTMENTS: Placed Under Voluntary Liquidation COMMUNICATION TECHNOLOGY: Appoints Levin & Vance as Liquidators GOLDEN CIRCLE: Creditors' Proofs of Debt Due on February 21 KINGSTON STREET: Undergoes Liquidation Proceedings LAKE TIMBER: Wind-Up Petition Hearing Set for March 10 MONDRIAN PROPERTY: Wind-Up Petition Hearing Set for April 24 NELSON STREET: Commences Liquidation Proceedings QT HOSPITALITY: Court to Hear Wind-Up Petition on February 27 JONESES REAL: Shareholder Places Firm in Liquidation TAURUS HIRE: Subject to Taurus Hire's Wind-Up Petition P H I L I P P I N E S ALLIED BANKING: Moody's to Give Ba3 Rating to Subordinated Notes MANILA ELECTRIC: Lowers Generation Charge in February Billing MANILA ELECTRIC: Permitted to Continue Operations in 11 Sites SITEL WORLDWIDE: Weak Liquidity Cues Moody's Negative Outlook VITARICH CORP: Confirms Increased Revenue Projections in 2008 WENDY'S INT'L: S&P Ratings Unaffected by Trian's Board Expansion S I N G A P O R E AAR CORP: US$25MM Over-Allotment Option Exercised by Purchasers BELIMO ACTUATORS: Creditors' Proofs of Debt Due on March 15 CHEMTURA CORP: Expects to Post US$2MM Net Income in 2007 4Q DBS BANK: Moody's Affirms 'B' Bank Financial Strength Rating ELEMECH ENGINEERING: Court to Hear Wind-Up Petition on Feb. 29 ONE GROUP: Court Enters Wind-Up Order TARGUS GROUP: Improved Performance Cues Moody's Stable Outlook T A I W A N FAR EASTERN: Seeks Bankruptcy Protection for Three Months T H A I L A N D * Fitch To Hold Teleconference for Asia's Banks on Feb. 20 * BOND PRICING: For the Week 18 February to 22 February 2008 - - - - - ================= A U S T R A L I A ================= ACTION TILT: Commences Liquidation Proceedings ---------------------------------------------- Action Tilt Tray & Low Loader Services Pty. Ltd.'s members agreed on December 20, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Mark Conlan to facilitate the sale of its assets. The liquidator can be reached at: Mark Conlan c/o RSM Bird Cameron Partners Chartered Accountants 8 St Georges Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9261 9100 Facsimile:(08) 9261 9340 About Action Tilt Action Tilt Tray & Low Loader Services Pty. Ltd. provides transportation services. The company is located at Subiaco, in Western Australia, Australia. ADDEX PTY: Members Opt to Shut Down Business -------------------------------------------- Addex Pty. Ltd.'s members agreed on January 8, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Martin David Lewis and David William Kidman to facilitate the sale of its assets. The liquidators can be reached at: Martin David Lewis David William Kidman Level 6, 81 Flinders Street Adelaide, South Australia 5000 Australia About Addex Pty. Addex Pty. Ltd. is a distributor of envelopes. The company is located at Camden Park, in South Australia, Australia. ALL SITE: Taps Carter & Bettles as Liquidators ---------------------------------------------- On December 14, 2007, the members of All Site Demolitions Pty. Ltd. appointed Susan Carter and Jason Bettles as the company's liquidators. The liquidators can be reached at: Susan Carter Jason Bettles Worrells Solvency & Forensic Accountants 50 Cavill Avenue, Level 6 Surfers Paradise Queensland 4217 Australia Telephone:(07) 5553 3407 Facsimile:(07) 5570 1884 About All Site All Site Demolitions Pty Ltd is involved with wrecking and demolition work. The company is located at Kurwongbah, in Queensland, Australia. CENTRO PROPERTIE: Gets AU$4.9-Billion Debt Refinancing Extension ---------------------------------------------------------------- Centro Properties Group has obtained an extension from its lenders for the refinancing of AU$4.9 billion of debt, Bloomberg News reports. The same report says that Commonwealth Bank of Australia and National Australia Bank Ltd. gave Centro Properties until April 30 to refinance AU$3.9 billion of debt, while also extending payment for AU$1 billion of debt that became due Feb. 15. As previously reported, the company accumulated debts as a result of its two-year, AU$10 billion spending spree that made Centro the second-largest shopping mall owner in Australia, and fifth largest in the United States. Bloomberg related that Centro Properties' shares plunged 89% as a result of the global credit crunch, prompting it to announce in December 2007 that it will have difficulty meeting debt payments. The company's net worth is now AU$515 million, down from its peak of AU$8.5 billion in May last year. The Financial Times said that Centro Properties is the worst hit among Australian companies as a result of the global credit crisis. It defaulted on AU$1.3 billion of loans in December 2007. The company has about AU$17.9 billion of total debts. It put assets on the auction block in January and is currenty looking for buyers to its two unlisted funds: Centro Australia Wholesale Fund with AU$2.6 billion of funds under management; and Centro America Fund, with AU$1.1 billion. "I suspect the company did what they had to but no more and the market seems to be somewhat satisfied that they have prolonged any entry to the cooking pot," Mark Wist, director at Property Investment Research Ltd. in Melbourne, told Bloomberg. "Its temporary reprieve extension may just be a case of lenders trying to ascertain their rights to different assets, which will be difficult given the complex ownership structure." Centro's major creditors are: Commonwealth Bank of Australia, Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd., JPMorgan Chase & Co., Royal Bank of Scotland Group Plc, and BNP Paribas. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a Melbourne, Australia-based company that comprises the operations of Centro Property Trust and its entities, which are engaged in property investment, property management, property development and funds management. The company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust, Heritage Property Investment Trust and Galileo Funds Management, as well as assumed full ownership of its United States management operations. The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CHRYSLER LLC: Court to Decide Fate of Tooling Dispute Tomorrow -------------------------------------------------------------- The Honorable Phillip Shefferly of the U.S. Bankruptcy Court for the Eastern District of Michigan will rule on the tooling dispute between Plastech Engineered Products Inc. and its debtor-affiliates, and Chrysler LLC, on Feb. 19, 2008, Reuters reports. For the meantime, Judge Shefferly urged the parties to reach an interim agreement for the next few days, since the last interim tooling agreement expires today. He told the parties he would be "very disappointed" if they do not reach a temporary accord over the weekend, relates Reuters. Chrysler said it was not sure when it could talk with Plastech about extending the interim pact, Reuters says, citing Kevin Frazier, a Chrysler representative. As reported in the Troubled Company Reporter on Feb. 14, 2008, the parties threw objection after objection against each other in a two-day hearing before the Court, with Plastech challenging Chrysler to prove its "ownership" of the tooling parts. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. EDWARDS RESTAURANT: Members Appoint Lane & Peldan as Liquidators ---------------------------------------------------------------- During a general meeting held on January 8, 2008, the members of Edwards Restaurant Pty. Ltd. appointed Morgan Lane and Michael Peldan of Worrells as the company's liquidators. The liquidators can be reached at: Morgan Lane Michael Peldan c/o Worrells 102 Adelaide St, 8th Floor Brisbane, Queensland 4000 Australia Web site: http://www.worrells.net.au About Edwards Restaurant Edwards Restaurant Pty Ltd is a distributor of durable goods. The company is located at Spring Hill, in Queensland, Australia. GATT CONSTRUCTIONS: Members & Creditors Meeting Set for Today ------------------------------------------------------------- Gatt Constructions Pty. Ltd., which is in liquidation, will hold a joint meeting for its members and creditors at 10:00 a.m. today, Feb. 19, 2008. During the meeting, the company's liquidator, Ron Gamble at BDO Kendalls, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Ron Gamble c/o BDO Kendalls 256 St Georges Terrace, 8th Floor Perth, Western Australia 6000 Australia Telephone:(08) 9360 4200 About Gatt Constructions Gatt Constructions Pty Ltd is a general contractor of industrial buildings and warehouses. The company is located at Balcatta, in Western Australia, Australia. GIBWAY PTY: Liquidator to Present Wind-Up Report on February 25 --------------------------------------------------------------- Allan Davie, Gibway Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on February 25, 2008, to provide them with property disposal and winding-up reports. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on January 3, 2008. The liquidator can be reached at: Allan Davie Charts Partners Pty Ltd as Trustee GPO Box 2168 Brisbane, Queensland 4001 Australia About Gibway Pty. Located at Brisbane, in Queensland, Australia, Gibway Pty. Ltd. is an investor relation company. HINDMARSH MECHANICAL: Members Agree on Voluntary Liquidation ------------------------------------------------------------ Hindmarsh Mechanical & Electrical Services Pty. Ltd.'s members agreed on January 14, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Martin David Lewis at Ferrier Hodgson to facilitate the sale of its assets. The liquidator can be reached at: Martin David Lewis Chartered Accountant Ferrier Hodgson 81 Flinders Street, Level 6 Adelaide, South Australia 5000 Australia About Hindmarsh Mechanical Hindmarsh Mechanical & Electrical Services Pty Ltd provides plumbing, heating, and air-conditioning services. The company is located at Hindmarsh, in South Australia, Australia. OXFORD YACHTS: Joint Meeting Slated for February 18 --------------------------------------------------- Oxford Yachts Pty. Ltd., which is in liquidation, will hold a joint meeting for its members and creditors at 10:00 a.m. on February 18, 2008. During the meeting, the company's liquidator, W. J. Fletcher at Bentleys Chartered Accountants, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: W. J. Fletcher Bentleys Chartered Accountants AMP Place, Level 26 10 Eagle Street Brisbane, Queensland Australia About Oxford Yachts Oxford Yachts Pty Ltd, which is alos trading as Southern Hemispheare Shipyard, is a distributor of fabricated structural metal. The company is located at Morningside, in Queensland, Australia. PAMRAE PTY: Undergoes Liquidation Proceedings --------------------------------------------- Pamrae Pty. Ltd.'s members agreed on December 17, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Robert Colin Parker at Freer Parker & Associates to facilitate the sale of its assets. The liquidator can be reached at: Robert Colin Parker Freer Parker & Associates 40 Sturt Street Adelaide, South Australia Australia About Pamrae Pty. Pamrae Pty. Ltd., which is also trading as Bute Hotel, operates drinking places. The company is located at Bute, in South Australia, Australia. RICAR HOLDINGS: To Declare Dividend on March 6 ---------------------------------------------- Ricar Holdings Pty. Ltd., which is in liquidation, will declare dividend for priority creditors on March 6, 2008. Only priority creditors who were able to file their proofs of debt by February 6, 2008, will be included in the company's dividend distribution. The liquidator can be reached at: Jennifer E. Low Sheridans Chartered Accountants 40 St Georges Terrace, Level 6 Perth, Western Australia 6000 Australia Telephone:(08) 9221 9339 Facsimile:(08) 9221 9340 About Ricar Holdings Ricar Holdings Pty. Ltd., which is also trading as Majestic Stairs, is constructor of public buildings. The company is located at Maylands, in Western Australia, Australia. ROCHE O'MAY: Members' & Creditors' Meeting Slated for March 7 ------------------------------------------------------------- Roche O'May Pty. Ltd., which is in liquidation, will hold a joint meeting for its members and creditors at 10:30 a.m. on March 7, 2008. During the meeting, the company's liquidator, Paul Cook at Paul Cook & Associates, will provide the attendees with property disposal and winding-up reports. The company will also declare dividend final ordinary dividend on February 20, 2008. The liquidator can be reached at: Paul Cook c/o Paul Cook & Associates 105 Macquarie Street Hobart, Tasmania 7000 Australia Telephone:(03) 6223 2555 Facsimile:(03) 6223 2556 e-mail:info@pjc.com.au About Roche O'May Roche O'may Pty Ltd operates investment offices. The company is located at Hobart, in Tasmania, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ CHINA EASTERN: Singapore Won't Revise Stake Bid ------------------------------------------------ Singapore Airlines said that its offer to buy a stake in China Eastern Airlines Corporation Limited remains in place, and it has no plans to revise its existing bid, Reuters News reports. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, nearly 78% of China Eastern shareholders earlier rejected a bid by Singapore Airlines and Temasek Holding Pte Limited to buy a minority stake in China Eastern after rival Air China and its parent, China National Aviation Corp., pledged a higher offer. Air China and China Aviation specifically vowed to pay at least 32% more (or at least HK$5.00 a share) than what Singapore Airlines and Temasek agreed to pay for a 24% stake in China Eastern. Singapore Air and Temasek had proposed to pay China Eastern HK$3.80 per share, or HK$7.2 billion (US$923 million) in aggregate. Singapore Airlines Chief Executive Chew Choon Seng, in response to a question on whether the airline will renew its bid said they have no plans at the moment. However, they will continue to engage China Eastern in commercial cooperation, beyond that they have no other plans, Reuters notes. Jan Dahinten and Melanie Lee at Reuters write that Mr. Chew said Singapore Airlines' offer is still on the table but they will not ignore the growth markets, like China and India. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CKK INTERNATIONAL: Creditors' Proofs of Debt Due on March 14 ------------------------------------------------------------ The creditors of CKK International Limited are required to file their proofs of debt by March 14, 2008, to be included in the company's dividend distribution. The commenced liquidation proceedings on January 21, 2008. The company's liquidators are: Kennic Lai Hang Lui Frank Tsz Chun Yuen 5th Floor, Ho Lee Commercial Bldg. 38-44 D' Aguilar Street Central, Hong Kong DANA CORP: NewCo Registers Post-Bankruptcy Common Stock ------------------------------------------------------- After their January 31, 2008, emergence from Chapter 11, Dana Corporation, now named Dana Holding Corporation, registered new set of common and preferred stock with the U.S. Securities and Exchange Commission. Pursuant to Dana's Third Amended Joint Plan of Reorganization, the reorganized company would issue 500,000,000 shares of capital stock, consisting of 450,000,000 shares of common stock and 50,000,000 shares of preferred stock. Of the Preferred Stock, 2,500,000 shares would be designated as Series A Preferred Stock, and 5,400,000 shares would be designated as Series B Preferred Stock. Common Stock Holders of Common Stock would be entitled to dividends declared from time to time by the board of directors out of legally available funds. Each holder of common stock is entitled to one vote for each share except for the election of directors, which is to be elected by the holders of Series A Preferred Stock. Holders of common stock are not entitled to cumulative voting rights. Marc Levin, acting general counsel and secretary for Dana Holding, says that in the event of the company's liquidation, dissolution or winding up, holders of common stock would be entitled to share equally and ratably in any assets remaining after the payment of all debt and liabilities, subject to the prior rights of holders of any outstanding preferred stock. Preferred Stock Dana Holding would issue US$250,000,000 in aggregate liquidation preference of the Series A Preferred Stock to a private equity firm, in consideration for the equity firm's investment to Dana Holding. The company would also issue US$540,000,000 in aggregate liquidation preference of the Series B Preferred Stock to certain qualified investors in consideration for their investment to Dana Holding. The price at which each share of Preferred Stock would be convertible into Common Stock would be 83% of its distributable market equity value per share. If, as result of that determination: (i) the holders of the Preferred Stock would own, on an as- converted, fully diluted basis, less than 32.0% of Dana Holdings' issued shares of Common Stock plus the number of shares of Common Stock that would be issued upon conversion of the Preferred Stock, necessary adjustments would be made so holders of Preferred Stock would own 32.0% of the Fully Diluted Shares; or (ii) the holders of the Preferred Stock would own, on an as- converted, fully diluted basis, more than 36.3% of the Fully Diluted Shares, necessary adjustments would be made so holders of Preferred Stock would own 36.3% of the Fully Diluted Shares. Referred percentages are subject to adjustment to the extent that Dana Holding's net debt plus the value of its minority interests as of the Effective Date is an amount other than US$525,000,000. Shares of Series A Preferred Stock having an aggregate liquidation preference of not more than US$125,000,000 and the Series B Preferred Stock would be convertible at any time at the option of the applicable holder after the six-month anniversary of the Effective Date. In the event that the per share closing sales price of the Common Stock exceeds 140% of the distributable market equity value per share for at least 20 consecutive trading days beginning on or after January 31, 2013, Dana Holding would be able to cause the conversion of all of the Preferred Stock. The price at which the Preferred Stock is convertible would be subject to adjustment as a result of stock splits and combinations, dividends and distributions and certain issuances of common stock or common stock derivatives. The Preferred Stock would be entitled to dividends at an annual rate of 4%, payable quarterly in cash. The shares would have equal voting rights and would vote together as a single class with the Common Stock on an as-converted basis, except that the Series A Preferred Stock would be entitled to vote as a separate class to elect three directors. At the first annual meeting of stockholders after the Effective Date, and as the initial holder of the Series A Preferred Stock owns at least US$125,000,000 of the Series A Preferred Stock, Dana Holding's board of directors would be composed of nine members, as follows: (i) three directors designated by initial holder of the Series A Preferred Stock and elected by holders of the Series A Preferred Stock, (ii) one independent director nominated by a special purpose nominating committee composed of two designees of the initial holder of the Series A Preferred Stock and one other board member, and (iii) five directors nominated by Dana Holding's board. With the exception of the three directors elected by holders of the Series A Preferred Stock, the remaining directors would be elected by holders of Common Stock and any other class of capital stock. Holders of Preferred Stock would also have the right to elect two directors in the event that six quarterly dividends on the Preferred Stock are accrued but unpaid. Additional Preferred Stock Dana's Restated Certificate of Incorporation authorizes the issuance of 50,000,000 shares of preferred stock. The Board is authorized to provide for the issuance of shares of preferred stock, in one or more series, and to fix for each series voting rights. The Board is authorized to issue shares of preferred stock and determine its rights and preferences for the purpose of eliminating delays associated with a stockholder vote on specific issuances. "The issuance of preferred stock, while providing flexibility in connection with possible acquisitions, future financings and other corporate purposes, may discourages or would make it more difficult for a third party to acquire a majority of the outstanding voting stock of Dana Holding." he concludes. Mr. Levin, informs that the shares of preferred stock may also be reissued by Dana Holding following redemption of their shares or conversion of the holder's shares, as applicable. Certain Anti-Takeover Effects Certain provisions of the Restated Certificate of Incorporation and Bylaws of Dana Holding, as well as the General Corporation Law of the State of Delaware, may have the effect of delaying, deferring or preventing a change in control of Dana Holding, including those regulating the nomination of directors, limiting who may call special stockholders' meetings and eliminating stockholder action by written consent, together with the terms of the Preferred Stock, may make it more difficult for other persons, without the approval of Dana Holding's board of directors to acquire substantial amounts of Common Stock or other attempts for the stockholders' best interest. About Dana Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of January 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News, Issue No. 70; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DANA CORP: US$1.35 Billion Term Loan Trades on Secondary Market ------------------------------------------------------------- The US$1.35 billion term loan portion of Dana Holding Corp.'s US$2 billion exit financing facility began trading on the secondary market Feb. 7, with the price quoted at 90/91, William Rochelle at Bloomberg News reports, citing Standard & Poor's. As reported in the Troubled Company Reporter on Feb. 12, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Dana Holding following the company's emergence from Chapter 11 bankruptcy protection on Feb. 1, 2008. The outlook is negative. "The ratings are based on the exit financing, capital structure, and other terms and conditions under Dana's plan of reorganization filed with the bankruptcy court, which has now been consummated," said Standard & Poor's credit analyst Nancy Messer. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating -- two notches higher than the corporate credit rating -- with a recovery rating of '1', indicating an expectation of very high -- 90% to 100% -- recovery in the event of a payment default. The loan was priced at the London Interbank Offered Rate plus 375 basis points, Mr. Rochelle notes. S&P also assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan -- one notch above the corporate credit rating -- with a recovery rating of '2', indicating an expectation of average -- 70% to 90% -- recovery. The bank loan ratings assume that any remaining conditions that predate the bank facility are satisfied or waived. Dana had US$1.6 billion of balance sheet debt outstanding at emergence from bankruptcy. The capital structure also includes US$792 million of 4% cash-pay convertible preferred stock, held by Centerbridge Partners L.P. and certain prior creditors, which Standard & Poor's views as equity. The ratings reflect Dana's weak business profile and aggressive financial profile, S&P explained. S&P said it could lower the ratings over the next year if Dana fails to generate free cash flow, whether because of slower restructuring efforts, more adverse market conditions, or failure to install a strong executive leadership team. In addition, S&P could lower the ratings if Dana's strategic or financial policies take a more aggressive turn under the new board of directors and executive management team. Any of these occurrences could inhibit Dana's free cash flow and the potential for reduced leverage in the near term. S&P could revise the outlook to stable if market conditions stabilize and Dana is able to modestly expand sales and EBITDA in the next few years, and if restructuring activities produce improved and sustainable adjusted EBITDA margin in 2008 and 2009 at 10% or better. The assignment of a stable outlook would also require S&P's confidence that the financial policy and business strategy of Dana's new owners would remain consistent with the current rating and that the company would resolve prior accounting issues. S&P would also need to see evidence, through the achievement of profitable new business wins, that the company is establishing itself as a credible long-term global competitor in its markets. About Dana Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of January 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) FIAT SPA: Joint Venture With Credit Agricole Earns EUR119 Mil. -------------------------------------------------------------- Fiat Group Automobiles Financial Services, a 50-50 joint venture of Fiat SpA and Credit Agricole, earned EUR119 million in its first year of operations ending in Dec. 31. 2007, Forbes.com reports, citing Thompson Financial. According to Thompson Financial, the prospects for 2008 confirm further growth, thanks to the growth in sales of autos by Fiat, improvement of financial activities, and cross-selling with Credit Agricole; and total financial activities grew 8% to EUR17 billion on a year to year basis from 2006. The joint venture provides dealer finance as well as financing for car purchases by Fiat customers, Thomson Financial relates. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the TCR-Europe on Nov. 6, 2007, Moody's Investors Service changed the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate Family Rating to positive from stable and affirmed its Ba3 long-term senior unsecured ratings as well as the short-term non-Prime rating. On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. FOU WAH: Creditors' Proofs of Debt Due on March 17 -------------------------------------------------- The creditors of Fou Wah Weaving Mills Limited are required to file their proofs of debt by March 17, 2008, to be included in the company's dividend distribution. The company's liquidator is: Man Mo Leung 34th Floor, The Lee Gardens 334th Hysan Avenue, Causeway Bay Hong Kong GREAT SKY: Creditors' Proofs of Debt Due on March 15 ---------------------------------------------------- The creditors of Great Sky Limited are required to file their proofs of debt by March 15, 2008, to be included in the company's dividend distribution. The commenced liquidation proceedings on February 8, 2008. The company's liquidators are: Ching Kwok Ho, Samuel Li Lau Lai Hing, Joanna 12th Floor, New World Tower II 18 Queen's Road Central, Hong Kong INGRAM MICRO: Moody's Rates New US$275-Mln Credit Facility Ba2 -------------------------------------------------------------- Moody's has affirmed Ingram Micro Inc.'s Ba1 corporate family rating and assigned a Ba2 (LGD-5, 75%) rating to the company's five-year US$275 million senior unsecured revolving credit facility due 2012. The rating outlook is stable. Proceeds from the credit facility, which was put in place in August 2007, are intended to be used for working capital needs and general corporate purposes. It replaces an unrated US$175 million revolver that was set to expire in July 2008. The new credit facility includes an accordion feature under which total commitments may be increased up to US$450 million, subject to approval by the bank syndicate, at any time prior to maturity date. The rating for the US$275 million senior unsecured revolver reflects the overall probability of default of the company, to which Moody's assigns a PDR of Ba1 based on a 50% expected corporate family recovery rate. Under Moody's loss given default methodology, the senior unsecured credit facility is rated one notch below the Ba1 CFR due to higher expected loss given its junior position in the company's capital structure relative to a disproportionately large accounts payable balance that is likely to persist. The facility contains financial covenants requiring the maintenance of certain financial ratios. Moody's expects the company to remain in compliance with these covenants over the next twelve months. This new rating was assigned: -- US$275 million Senior Unsecured Revolving Credit Facility due 2012 -- Ba2 (LGD-5, 75%) These ratings were affirmed: -- Corporate Family Rating -- Ba1 -- Probability of Default Rating -- Ba1 Approximately US$275 million of new debt rated. Ingram Micro's Ba1 corporate family rating reflects its leading position as the largest global technology distributor, increasing scale and geographic breadth, solid performance in core North American markets, expanded presence in the fast growing Asia-Pacific region, solid liquidity position and moderate leverage profile. The CFR is also constrained by the challenges associated with the company's high volume, low margin business profile. Importantly, the rating incorporates the very thin, low single digit operating margins, significant supplier concentration, limited pricing power, heightened competitive environment, volatile cash flow generation trends and potential further acquisition spending and/or share repurchase activity. The stable outlooks reflects Moody's expectation that Ingram Micro will continue to maintain its current gross profit and operating margins and continue to receive support from its high growth Asia-Pacific markets and improving EMEA operations, while maintaining stable market share in its core North American markets. The stable outlook also considers Moody's expectation that the company will maintain a strong liquidity position evidenced by ample cash balances, sufficient availability across its various credit facilities and minimum retained cash flow to debt ratio of 20%. The company's revenues and adjusted EBITDA for the last twelve months ended Sept. 30 2007, were US$33.9 billion and US$661 million, respectively. Headquartered in Santa Ana, California, Ingram Micro Inc. (NYSE: IM) -- http://www.ingrammicro.com/-- together with its subsidiaries, distributes information technology products and supply chain solutions worldwide. Its IT products include peripherals, networking, software, and systems. The company has Latin America operations in Brazil, Chile and Mexico. LHI TECHNOLOGY: Creditors' Proofs of Debt Due on March 17 --------------------------------------------------------- The creditors of Lhi Technology (HK) Company Limited are required to file their proofs of debt by March 17, 2008, to be included in the company's dividend distribution. The company's liquidator is: Man Mo Leung 34th Floor, The Lee Gardens 334th Hysan Avenue, Causeway Bay Hong Kong RASHTI: Members' Final General Meeting Fixed on March 31 -------------------------------------------------------- Robin Harris and Fok Pui Ling Linda, Rashti & Rashti (Hong Kong) Limited's appointed estate liquidator, will meet with the company's members on March 31, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Robin Harris Fok Pui Ling Linda 31st Floor, The Center 99 Queen's Road Central Hong Kong SHOP OF GREEN: Members' Final Meeting Fixed on March 18 ------------------------------------------------------- Au Yan Alfred, The Shop of Green and Found Limited's appointed estate liquidator, will meet with the company's members on March 31, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Au Yan Alfred 24th Floor, Hang Wai Commercial Bldg. 231-233 Queen's Road East Wanchai, Hong Kong SICHUAN CHANG: Drops Bid for Wuxi Little ---------------------------------------- Sichuan Changhong Electrical Co. withdrew its bid to buy a 24% stake in washing-machine maker Wuxi Little Swan Co. due to cost concerns, ShanghaiDaily reports. Citing a government regulation, Sichuan Changhong told ShanghaiDaily that the 24% stake, or 87.67 million shares, can't be sold for less than CNY1.65 billion (US$230 million) and that the buyer also must pay the full amount in cash. Earlier reports indicated that Changhong showed interest to gain a controlling stake in Wuxi Little as the television maker plans to expand its business into the washing-machine industry. Based in Mianyang, Sichuan Province, China, Sichuan Chang Hong Electric Co., Ltd. -- http://www.changhong.com/-- is principally engaged in the manufacture and sale of televisions, air conditioners, mobile phones, refrigerators and other household electrical appliances. The company offers its products under 13 categories, including military products, digital televisions, digital display panels, information technology products, air conditioners, digital audio/video products, digital network products, molding products, digital electronic components, environment-friendly power supply systems, electrical equipment, electric engineering products and chemical materials. The company distributes its products in 90 countries/regions, including Russia, the United States, France, and South America. Xinhua Far East China Ratings gave the company a B+ issuer credit rating on February 24, 2006. ========= I N D I A ========= AFFILIATED COMPUTER: No Default Occurred Under Debenture -------------------------------------------------------- Affiliated Computer Services Inc. disclosed that on Feb. 12, 2008, the United States District Court for the Northern District of Texas, Dallas Division, granted the company's Motion for Summary Judgment in a declaratory relief action and entered a judgment that no default occurred under Section 4.03(a) of its indenture with certain noteholders. The company filed the lawsuit because certain holders of its 4.70% Senior Notes due June 1, 2010, and its 5.20% Senior Notes due June 1, 2015, sent various notices alleging that the company was in default of its covenants under the related Indenture dated June 6, 2005, along with any Supplemental Indentures, as the result of the company's failure to timely file its Annual Report on Form 10-K for the period ending June 30, 2006, by Sept. 13, 2006. Subsequently, those noteholders declared an acceleration of the Senior Notes, as a result of the company's failure to remedy the purported default set forth in their earlier notices and demanded payment of all amounts owed in respect of the Senior Notes. About Affiliated Computer Services Headquartered in Dallas, Texas, Affiliated Computer Services Inc. (NYSE:ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology services to commercial and government clients. The company has two segments based on the clients it serves: commercial and government. The company provides services to a variety of clients including healthcare providers and payers, manufacturers, retailers, wholesale distributors, utilities, entertainment companies, higher education institutions, financial institutions, insurance and transportation companies. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 30, 2008, Moody's Investors Service confirmed Affiliated Computer Services' Ba2 corporate family rating with a stable rating outlook. The rating confirmation concluded a review for possible downgrade initiated on March 20, 2007. The ratings of ACS remained under review for possible downgrade. AXIS BANK: Committee of Directors to Meet on Feb. 18 ---------------------------------------------------- AXIS Bank Ltd's Committee of Directors will hold a meeting on Feb. 18, 2008, a filing with the Bombay Stock Exchange says. According to the bank, the Committee will be considering the allotment of equity shares under ESOP. Headquartered in Mumbai, India, Axis Bank Ltd, formerly known as UTI Bank Limited, -- http://www.axisbank.com/-- is engaged in treasury and other banking operations. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. Revenues of the treasury services segment primarily consist of fees and gains or losses from trading operations and interest income on the investment portfolio. Other banking operations principally comprise the lending activities (corporate and retail) of the bank. The corporate lending activity includes providing loans and transaction services to corporate and institutional customers. The retail lending activity includes raising of deposits from customers and providing loans and advisory services to customers through branch network and other delivery channels. * * * The bank's Foreign Long Term Bank Deposits carry Moody's Investors Service's Ba2 rating, which was placed on July 1, 2005. GMAC LLC: Cerberus' Stephen Feinberg Warns of Difficulty Ahead -------------------------------------------------------------- Jason Kelly and Katherine Burton of Bloomberg News report that the founder of private-equity firm Cerberus Capital Management LP warned investors of possible "substantial difficulty" in GMAC LLC, the auto and mortgage lender controlled by Cerberus. Stephen Feinberg wrote in a Jan. 22 letter to investors, a copy of which was obtained by Bloomberg News, that while Cerberus has "detailed contingency plans in a continuing worsening environment . . . if the credit markets continue to decline and we find ourselves in a prolonged environment of capital market shutdown, GMAC could run into substantial difficulty." The letter outlines worst-case scenarios for investors, Cerberus partner Tim Price told Bloomberg. As reported by Troubled Company Reporter on Feb. 8, 2008, for the full-year 2007, GMAC reported a net loss of US$2.3 billion, compared to net income of US$2.1 billion for the full-year 2006. Profitable results in the automotive and insurance businesses were more than offset by a US$4.3 billion loss at its Residential Capital mortgage unit. Comparisons of full-year results are affected by the fourth quarter significant items previously noted well as goodwill impairments of US$455 million at ResCap in the third quarter of 2007 and US$695 million at Commercial Finance in the third quarter of 2006. Liquidity and Capital GMAC's consolidated cash and certain marketable securities were US$22.7 billion as of Dec. 31, 2007, up from US$18.3 billion at Dec. 31, 2006. Of these total balances, ResCap's consolidated cash and cash equivalents were US$4.4 billion at year-end, up from US$2 billion on Dec. 31, 2006. During the fourth quarter, GMAC purchased in the open market US$740 million of ResCap debt that was subsequently contributed to ResCap and retired as a measure to support the capital position at the mortgage unit. As of Dec. 31, 2007, ResCap's equity base was $6 billion, above the minimum tangible net worth requirements in its credit facilities, and above the amount expected to be needed to support its ongoing operations. In addition, GMAC and ResCap may from time to time continue to purchase outstanding GMAC or ResCap debt in open market transactions or otherwise, as part of its liquidity and cash management strategy. Strategic Initiatives GMAC and ResCap continue to investigate strategic alternatives related to all aspects of ResCap's business. These strategic alternatives include potential acquisitions as well as dispositions, alliances, and joint ventures with a variety of third parties with respect to some of ResCap's businesses. GMAC and ResCap are in various stages of discussions with respect to certain of these alternatives, including, in some cases, execution of confidentiality agreements, indications of interest, non-binding letters of intent and other exploratory activities such as preliminary and confirmatory due diligence and conceptual discussions. GMAC and ResCap also have engaged advisers to explore the sale of certain parts of ResCap's operations. There are no substantive binding contracts, agreements or understandings with respect to any particular transaction. Further, there can be no assurances that any of these strategic alternatives will occur, or if they do, that they will achieve their anticipated benefits. At Dec. 31, 2007, the company's total debt amounted to US$193.15 billion compared to US$236.99 billion in 2006. About GMAC GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and employs approximately 26,700 people worldwide. * * * As reported in the Troubled Company Reporter on Nov. 27, 2007, Moody's Investors Service placed GMAC LLC's Ba2 senior unsecured rating on review for possible downgrade. The action was in response to GMAC's affirmation of support for Residential Capital LLC, as disclosed in ResCap's Nov. 21, 2007 debt tender announcement. ResCap's ratings and outlook (Ba3 senior unsecured, negative outlook) were not affected by the tender announcement or this GMAC rating action. As reported in the Troubled Company Reporter on Nov. 16, 2007, Fitch Ratings placed GMAC LLC and its related subsidiaries 'BB+' long-term Issuer Default Ratings on Rating Watch Negative. This action reflects the ongoing pressures in the company's residential mortgage subsidiary, Residential Capital LLC (ResCap, IDR 'BB+' by Fitch with Rating Watch Negative). IFCI LTD: Doesn't Need Equity Infusion Yet, CEO Says ---------------------------------------------------- IFCI Limited doesn't need any equity infusion as of now with capital adequacy requirement at over 18% and positive net owned funds, Atul Kumar Rai, IFCI CEO and MD told CNBC-TV18 in an interview. Mr. Rai told the the television station that with the company meeting the capital requirement at the end of December, it is not in need of funds in at least the equity part of its structure. However, the company is not closing its doors for alliances with "an investor who would provide th[e] organization what it takes to reinvent itself, rejuvenate itself," he added. On the possibility of inducting a strategic equity partners this year, Mr. Rai is still unsure saying that the company might look at an Indian investor in an appropriate point of time. Mr. Rai also mentioned of the company's INR923-crore debt with the government that the latter could convert to equity, which introduces the possibility that the government could later on become a majority stockholder. Additionally, the CEO & MD makes it clear that IFCI becoming a bank or acquiring a one is too far a cry, at least for now. When the situation improves and if the company is able to build up sufficient results, this is something, which would have to be looked at in the context of how the industry is shaping up, he added. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating at '4'. Fitch said the outlook on the rating is stable. LOK HOUSING: Reports INR586.62 Mil. Profit in Oct.-Dec. 2007 ------------------------------------------------------------ Lok Housing & Constructions Ltd. reported a net profit of INR586.62 million in the quarter ended Dec. 31, 2007, more than twice the INR241.99-million profit booked in the same quarter in 2006. The improved bottom line is brought about by soaring sales and lesser interest charges. In Oct.-Dec. 2007, total income increased 39% to INR1.14 billion, which includes net sales of INR1.13 billion. Operating expenditures of INR491.42 million brought the company an operating profit of INR649.02 million. Interest charges slid from INR184.83 million in Oct.-Dec. 2006, to INR52.72 million in the latest quarter under review. The company also booked depreciation of INR9.52 million and INR160,000 in fringe benefit taxes. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2822 Headquartered in Mumbai, India, Lok Housing and Constructions Ltd constructs residential buildings. Apart from housing construction, the company manufactures concrete blocks catering to in-house needs. The company is also involved in the construction of railway quarters, railway bridges and slum rehabilitation programs through its associate companies. Credit Rating Information Services of India Ltd., on June 27, 2007, reaffirmed its 'D' rating on Lok Housing's INR170-million non-convertible debentures. The rating continues to indicate that the instrument is in default. The arrears on interest and principal payments have not been entirely cleared. TATA MOTORS: To Fund Development of Air-Powered Car --------------------------------------------------- Tata Motors Limited has given financial backing to French inventor Guy Negre for the development of a car powered by compressed air, according to an article at Cleantech Network LLC's Web site. The OneCAT five-seater car, weighing just 350kg and could cost just over US$5,000, will have a glass fiber body powered by compressed air stored in carbon-fiber tan, Cleantech relates. Cleantech, however, failed to get the amount of the funding. Tata Motors Managing Director confirmed the move in an interview with the Financial Times. According to the FT report, the company signed last year an agreement with private French company MDI, who develops the cars driven by compressed air. "It's a very exciting concept, this way of running a car. We hope something will come out of it," the report quoted Mr. Kant as saying. According to FT, MDI plans to launch the OneCAT by the end of this year or early 2009. The company is also considering applying the technology for both mobile and stationary function, Mr. Kant added. FT noted that MDI also owns a patent on a compressed air device that can be applied to emergency generators. Cora Nucci, writing for CMP United Business Media, said that the OneCat "may be the cleanest car ever invented." As previously reported in the Troubled Company Reporter-Asia Pacific, Tata Motors launched last month Tata Nano, dubbed as the world's cheapest car. About Tata Motors 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. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. VISTEON CORP: Posts US$372 Million Net Loss in 2007 --------------------------------------------------- Visteon Corp. has released its fourth quarter and full-year 2007 results. For fourth quarter 2007, the company reported a net loss of US$43 million on sales from continuing operations of US$2.9 billion. The fourth quarter net loss includes US$30 million of non-cash asset impairments and US$32 million of restructuring expenses that were not eligible for reimbursement from the escrow account. For fourth quarter 2006, the company reported a net loss of US$39 million on sales from continuing operations of US$2.8 billion. EBIT-R for fourth quarter 2007 was US$15 million, an improvement of US$52 million over the same period of 2006. The company generated US$331 million of cash from operating activities during fourth quarter 2007, an increase of US$92 million or 38 percent compared to fourth quarter 2006. Free cash flow was US$187 million for fourth quarter 2007, an increase of US$56 million over fourth quarter 2006. "For the fourth quarter and full year 2007, Visteon delivered on the financial guidance we provided," said chairperson and chief executive officer, Michael F. Johnston. "We continue to progress with our restructuring activities as planned, and have now completed 18 of the 30 items that are part of our three-year plan. By implementing our restructuring and continuing to improve our operations and global capabilities, we are positioning Visteon for long- term success." Restructuring and Business Improvements During the fourth quarter 2007, Visteon completed the closure of its climate facility in Connersville, Indiana, and notified workers at its interiors facility in Bellignat, France, of its intention to exit the facility during the first quarter 2008. The company plans to address eight facilities during 2008, including closing its Bellignat, France, and Bedford, Indiana, facilities and selling its non-core chassis facility located in Swansea, Wales -- the completion of which is subject to the negotiation and execution of definitive agreements and customary approvals. Additionally, during January 2008, the company announced plans to close the Concordia, Missouri, fuel tank assembly plant, with closure expected to be completed during the third quarter 2008. Upon completion of these items, 22 of the 30 facility restructuring actions included in the company's three-year improvement plan will have been addressed. On Feb. 1, 2008, the company announced the sale of its non-core North American-based aftermarket underhood and remanufacturing operations, including a manufacturing plant in Sparta, Tennessee and two facilities in Reynosa, Mexico. The Sparta facility manufactures starters and alternators for aftermarket customers and the two Reynosa facilities manufacture aftermarket climate products including radiators, compressors and condensers, and also remanufacture steering pumps and gears. These facilities had revenues totalling about US$130 million in 2007. New Business Wins Visteon continues to win new business from a diverse group of customers across each of its core product lines. For the full year 2007, the company had wins of nearly US$1 billion; about 25 percent of these wins were in Asia and the balance in North America and Europe. In addition, the company's non-consolidated affiliates won approximately US$370 million of business, primarily in Asia. "Winning nearly US$1 billion for the second consecutive year demonstrates that our customers recognize the strength of Visteon's product capability and our global engineering and manufacturing footprints," said president and chief operating officer, Donald J. Stebbins. Fourth Quarter 2007 Results Fourth quarter 2007 sales from continuing operations were US$2.9 billion, a slight increase over the US$2.8 billion recorded in the fourth quarter 2006. Fourth quarter 2007 product sales of US$2.7 billion included US$168 million of favorable foreign currency, which offset the impact of facility closures and divestitures. Product sales to Ford Motor Co. declined 10 percent, or US$108 million, to US$960 million, reflecting lower North American production volumes, divestitures, sourcing actions and product mix. Product sales to other customers increased 10 percent, or US$154 million, to US$1.76 billion and represented 65 percent of total product sales. The fourth quarter 2007 net loss of US$43 million compares to a fourth quarter 2006 net loss of US$39 million. Fourth quarter 2007 results include US$30 million of non-cash asset impairments and US$32 million of restructuring expenses that were not reimbursed from the escrow account, as the company is now in the 50 percent reimbursement phase of the Escrow Agreement. EBIT-R of US$15 million for the fourth quarter 2007 was an improvement of US$52 million over the negative US$37 million EBIT-R reported in fourth quarter 2006. These improvements were driven by favorable cost performance resulting from the company's ongoing restructuring and cost-reduction efforts. Cash provided by operating activities totaled US$331 million for fourth quarter 2007, increasing US$92 million from US$239 million a year ago. Capital expenditures for fourth quarter 2007 were US$144 million compared with US$108 million for fourth quarter 2006. Free cash flow was US$187 million for fourth quarter 2007 compared with US$131 million for the same period in 2006. Full Year 2007 Results Sales from continuing operations were US$11.3 billion for both full-year 2007 and 2006. Product sales for the full year 2007 were US$10.7 billion, including favorable foreign currency of approximately US$570 million, which offset the impact of facility closures and divestitures. During 2007, product sales to customers other than Ford increased 11 percent, or US$674 million, to US$6.6 billion and represented 61 percent of total product sales. Product sales to Ford in 2007 declined 14 percent, or US$659 million, to US$4.1 billion, reflecting lower North American production volumes, divestitures, sourcing actions and product mix. Visteon reported a net loss of US$372 million for the full year 2007. The net loss for 2007 includes US$107 million of non-cash asset impairments and US$32 million of restructuring expenses that were not reimbursed from the escrow account. For full year 2006, the company recorded a net loss of US$163 million, which included US$22 million of non-cash asset impairments. EBIT-R was negative US$49 million for full year 2007 compared with positive US$27 million in the same period of 2006. Lower 2007 EBIT-R primarily reflects lower customer volumes and unfavorable product mix, principally in North America, and the non- recurrence of certain 2006 benefits including relief of employee retirement benefit obligations and favorable commercial agreements, partially offset by improved cost performance. For full year 2007, cash provided from operations totaled US$293 million, compared with US$281 million for full year 2006. Capital expenditures for full year 2007 were US$376 million, resulting in free cash flow of negative US$83 million compared with free cash flow for full year 2006 of negative US$92 million. Cash and Liquidity As of Dec. 31, 2007, the company had cash balances totaling US$1.76 billion, of which approximately US$1.2 billion was located in the United States. Total company debt was US$2.84 billion as of Dec. 31, 2007. Additionally, no amounts were drawn on the company's US$350 million asset-based U.S. revolving credit facility, and the company had availability of about US$150 million under its US$325 million European receivables securitization facility. Full Year 2008 Outlook The company expects EBIT-R for full year 2008 to be in the range of negative US$25 million to positive US$25 million on product sales of about US$9.7 billion. Free cash flow is projected to be in the range of negative US$350 million to negative US$250 million. "The progress Visteon is making, combined with what we will execute in 2008, lays the foundation for Visteon to be free cash flow positive in 2009," Mr. Johnston concluded. "With almost US$1.8 billion of cash as of year-end 2007 and additional available liquidity, Visteon has flexibility to execute its plans." About Visteon Corporation Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the company has facilities in 26 countries, including Argentina, Brazil, Mexico and India, and employs approximately 41,500 people. * * * On March 26, 2007, Moody's affirmed Visteon Corp.'s Corporate Family Rating of B3, term loan rating of Ba3, and Speculative Grade Liquidity rating of SGL-3, but changed the ratings outlook to negative from stable. ================= I N D O N E S I A ================= ANEKA TAMBANG: May Acquire Freeport Indonesia's 18.72% Stake ------------------------------------------------------------ PT Aneka Tambang Tbk plans to buy up to 18.72% of Freeport McMoRan Copper & Gold Inc.'s Indonesian unit PT Freeport Indonesia for about US$3 billion, various reports say. Antam told Reuters that it planned to acquire a 9.36% stake in Freeport Indonesia from the Indonesian government, and buy the remaining 9.36% from the parent firm. According to Tempo Interactive, the state-owned enterprises state ministry supported Antam's acquisition plan in Freeport Indonesia. SOEs Minister, Sofyan Djali was quoted by Tempo as saying, "I heard that Freeport wanted to divest 9.36% of its shares. If Antam is interested, why not?" Mr. Djali, Tempo relates, sent a letter to the Finance and Energy and Mineral Resources Minister, which contained the request of giving the first rights of refusal for mining SOEs. The government can appoint an SOE as the divested shares buyer, the report adds. However, Antam said the government has not awarded it the rights to buy a stake in Freeport Indonesia, contrary to media reports, Antara News notes. The rights would have given Antam the first priority in the stake acquisition. Antam explained to Antara that what it has obtained was just "verbal support from Mr. Djalil in the acquisition of the 9.36% stake in Freeport Indonesia held by PT Indocopper Investama. Reuters says that Freeport had apparently indicated it was ready to sell the stake and had yet to receive any offers. Antam did not say how much the stake is worth, but Rania Rahmundita, an analyst at CIMB-GK, said 9.36% of Freeport Indonesia could be around US$1.5 billion, the report says. Harry Suhartono and Fitri Wulandari of Reuters writes that Ms. Rahmundita said Freeport Indonesia forms 46% of Freeport McMoRan's operating income. Using its parent's current market value, we estimate Freeport Indonesia is worth US$16.7 billion, she added. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter-Asia Pacific reported on Jan 17, 2008, Moody's Investors Service has upgraded PT Aneka Tambang (Persero) Tbk's corporate family rating to Ba3 from B1. This concludes the review for possible upgrade which commenced on October 22, 2007. On Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long-term corporate credit rating on Indonesian state-owned miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. BANK MANDIRI: To Channel IDR11.7 Tril. in Home Ownership Loans -------------------------------------------------------------- PT Bank Mandiri has set itself the target of channelizing home- ownership loans totaling IDR11.7 trillion this year, a 30% increase from the previous year, Antara News reports. Bank Director Omar S. Anwar told the news agency that the home ownership loans accounted for 64% of the total consumer credits in 2007, which reached IDR11.2 trillion. Mr. Anwar, the report relates, said in order to boost the growth of home ownership loans, the bank would strengthen its cooperation with around 200 real estate developers. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The outlook on the national rating remains stable. At the same time, all other ratings are affirmed, as follows: -- Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook -- Short-term IDR at 'B' -- Support at '4', and -- Support Floor at 'B+' On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Mandiri. -- The foreign currency senior/subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. BANK DANAMON: Plans to Raise IDR1.5-Trillion Bonds in H1 -------------------------------------------------------- PT Bank Danamon Tbk plans to raise IDR1.5 trillion in bonds in the first half of this year to fund loan growth, Reuters reports, citing Bank Danamon President Director Sebastian Paredes. According to the report, Mr. Paredes said he was optimistic the bank would be able to raise the funds in the first half of the year despite turbulence in global financial markets. The bank, the report relates, aims to boost its lending by 22% this year from IDR53.33 trillion at the end of 2007, slightly slower than loan expansion of 24% last year. Bank Danamon's target was largely in line with the central bank and analysts' estimates for banking sector loan growth this year, the report says. Bank Danamon reported a 60% rise in its 2007 net profit due to strong loan growth and an improvement in its net interest margins, Harry Suhartono at Reuters writes. About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Danamon Indonesia Tbk: -- The foreign currency subordinated debt rating was raised to Ba2 from Ba3 -- Foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15,2007, Fitch Ratings upgraded the National Long-term rating of PT Bank Danamon Indonesia Tbk to 'AA(idn)' from 'AA- (idn)') while affirming all its other ratings as follows: * Long-term foreign currency Issuer Default Rating 'BB-' with a Positive Outlook, * Short-term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4' and * Support Rating Floor 'B'. BANK INTERNASIONAL: 2007 Net Profit Drops 36% to IDR404.76 Bil. --------------------------------------------------------------- PT Bank Internasional Indonesia Tbk's 2007 net profit dropped 36% to IDR 404.76 billion from IDR633.71 billion a year earlier, Reuters reports. According to the report, the decrease in the net profit was partly due to lower net interest income and smaller margins. BII's outstanding loans expanded by 23% last year but its net interest margin fell to 5.03% in 2007 from 5.14% in the previous year, the report relates. PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on October 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk. -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2 -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of Bank Internasional as follows: * Long term foreign currency IDR at 'BB-' with a Positive Outlook, * Short term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)'. OWENS-ILLINOIS: Improved Cash Flow Prompts S&P's Rating Upgrade --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Owens- Illinois Inc., including the corporate credit rating to 'BB' from 'BB-'. The outlook is stable. "The upgrade follows the company's improved operating results and better-than-expected free cash generation in 2007, which coupled with proceeds from the sale of its plastics packaging business resulted in about US$1.9 billion of debt reduction in 2007," said S&P's credit analyst Liley Mehta. Credit measures have improved substantially with funds from operations to total debt at 22% at year-end 2007. These improvements, together with management's commitment to preserve improved credit metrics and adequate liquidity, should enable the company to maintain a financial profile commensurate with the higher rating. Total debt was about US$4.8 billion at Dec. 31, 2007. The ratings on the company and related entities reflect the its satisfactory business position and attractive profitability, offset by an improving, but still aggressive financial profile and concerns regarding its asbestos liability. In July 2007, the company sold its plastics packaging business to Rexam PLC for a total consideration of about US$1.82 billion, with sale proceeds used to repay senior secured notes maturing in 2009, 2011, and 2012. Solid business prospects, an expected continuation of earnings and cash flow improvement, and management's focus on continued productivity improvements and cost reduction support the ratings. Improved earnings and cash generation should support continued strengthening of the company's credit measures despite ongoing pressures of asbestos-related liabilities. S&P expects the company to maintain a balanced approach toward potential acquisitions to preserve an appropriate financial profile. While not expected at this time, S&P could revise the outlook to negative if large acquisitions or other strategic actions result in a deterioration of the financial profile such that FFO to total adjusted debt declines to below 15%. The company's still aggressive financial profile limits further upside ratings potential. Based in Perrysburg, Ohio, Owens-Illinois Inc. (NYSE:OI) -- http://www.o-i.com/-- is a manufacturer of packaging products and glass containers with operations in Europe, North America, Asia Pacific and South America. The company is also a manufacturer of healthcare packaging, including plastic prescription containers and medical devices, and plastic closure systems, including tamper-evident caps and child-resistant closures, with operations in the United States, Mexico, Puerto Rico, Brazil, Hungary, Malaysia and Singapore. ========= J A P A N ========= IHI CORP: To Acquire Dutch Coating System Maker Hauzer Techno ------------------------------------------------------------- IHI Corp. will acquire Dutch vacuum-coating system maker Hauzer Techno Coating BV as part of an effort to bolster its industrial furnace business, Antara News reports. According to the report, the purchase price is estimated at several billion yen. At the end of March, IHI will acquire all 40 outstanding shares of Hauzer Techno from the Dutch firm's holding company, the report notes. Hauzer Techno is a leading manufacturer of equipment used to coat autoparts and other products with a metallic or ceramic layer for wear resistance. Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp -- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a Japan-based company engaged in six business segments. The Logistics and Steel segment offers concrete products, automated storages, loaders and others. The Machinery segment offers plastic processing machines, industrial boilers, pumps and others. The Energy Plant segment develops waste incineration facilities, nuclear power plants, thermal power plants and process plants, water treatment plants, renewable power plants and other facilities. The Aerospace segment produces aircraft engine parts and provides aircraft maintenance services. The Ship and Offshore segment builds container ships, bulk carriers, tankers and other ships, as well as develops marine equipment and machinery and provides design and engineering services. The Others segment provides real estate, financial and insurance services. The Troubled Company Reporter-Asia Pacific reported on Feb 14, 2008, that Standard & Poor's Ratings Services revised its outlook on the long-term corporate credit rating on IHI Corp. to negative from stable, reflecting growing expectations that the company's steady earnings recovery would be delayed, following the Tokyo Stock Exchange's announcement that it will place the company's stock on "alert status." The outlook change also reflects concerns that the company's financial flexibility will be constrained to some extent by this action. At the same time, Standard & Poor's affirmed its 'BB+' long-term corporate credit and 'BBB-' long-term senior unsecured issue ratings on the company. INTERNATIONAL RECTIFIER: Names O. Khaykin & R. Dahl as Directors ---------------------------------------------------------------- International Rectifier Corporation has elected Oleg Khaykin, the company's newly appointed Chief Executive Officer, and Richard J. Dahl to its Board of Directors. Mr. Dahl has since 2004 served as a Director of the NYSE listed IHOP Corporation where he presides as Chairman of the Audit Committee and was Chairman of the Special Committee of the Board formed to oversee IHOP's successful bid to acquire Applebee's International. From 2002 to 2007, he was employed by the Dole Food Company. He held various executive level positions with Dole including President, Chief Operating Officer and Director from 2004 to 2007 and Senior Vice President, Chief Financial Officer and Director positions from 2002 to 2004. Prior to his work at Dole, Mr. Dahl was President and Chief Operating Officer of NYSE listed Bank of Hawaii Corporation. "As an accomplished leader with extensive managerial and financial experience and expertise, Richard will be a strong addition to our board," said International Rectifier's Lead Director Jack Vance. "His unique and broad perspective on driving operational excellence and international growth, and his deep understanding of finance and audit will greatly benefit the Board in addition to the entire IR organization." Mr. Dahl was elected to serve with a Board term expiring at the company's 2008 annual meeting. Mr. Khaykin, 43, appointed Chief Executive Officer effective March 1, 2008, was elected to serve with a Board term expiring at the company's 2009 annual meeting. International Rectifier Corporation (NYSE:IRF) -- http://www.irf.com/-- provides power management technology. IR's analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. The company has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. * * * In September, 2007, Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on International Rectifier Corp. remains on CreditWatch with negative implications. STRATOS GLOBAL: Earns US$20 Million in Year Ended Dec. 31, 2007 --------------------------------------------------------------- Stratos Global Corporation released its financial results for the year ended Dec. 31, 2007. On Dec. 11, 2007, CIP Investments Inc. (CIP Canada) acquired beneficial ownership of 100 percent of the Corporation's common shares. Net earnings for 2007 were US$2.0 million compared with a net loss of US$26.8 million in 2006. The results for 2007 were negatively impacted by US$16.7 million of after-tax financial advisory, legal, and other costs related to the transaction with CIP Canada, which were partially offset by an after-tax gain of US$3.8 million related to the previously described insurance settlement during the second quarter and an after-tax gain on sale of certain aeronautical assets of US$1.0 million. Results for 2006 were adversely influenced by after-tax write-offs of US$22.4 million related primarily to the acquisition of Xantic. For the year ended Dec. 31, 2007, the Corporation achieved revenue of US$594.3 million, an 11 percent increase compared with US$537.8 million in 2006. This improvement primarily reflects the growth in newer generation Inmarsat products and the acquisition of Xantic, which was completed on Feb. 14, 2006. Segment earnings for 2007 increased by 35 percent to US$101.0 million compared with US$74.7 million for 2006. The significant improvement in segment earnings was driven by the increased revenue, higher volume discounts earned from Inmarsat and cost reductions resulting from the integration of Xantic and other initiatives to improve operating efficiencies. Cash flow from operations (including working capital changes) in 2007 totaled US$57.3 million, compared with US$26.9 million generated in 2006. The improvement primarily reflects higher segment earnings, decreased investment in working capital, increased interest costs related to the Xantic acquisition financing and costs related to the transaction with CIP Canada. Stratos Global Corporation -- http://www.stratosglobal.com/-- is a provider of a range of advanced mobile and fixed-site remote telecommunications solutions for users operating beyond the reach of traditional networks. The company serves the voice and high-speed data connectivity requirements of a diverse array of markets, including government, military, energy, industrial, maritime, aeronautical, enterprise, media and recreational users throughout the world. Stratos operates in two segments: Mobile Satellite Services, which provides mobile telecommunications services, primarily over the Inmarsat plc satellite system, and Broadband Services, which provides very small aperture terminal services, sourced on a wholesale basis from a number of the fixed satellite system operators. The company has offices in Italy, Germany, Norway, Spain, United Kingdom, India, Hong Kong, Singapore, Australia, Japan and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 4, 2008, Moody's Investors Service affirmed Stratos Global Corporation's B1 Corporate Family Rating, B1 Probability of Default Rating, Ba2 Senior Secured Bank Rating and B3 Unsecured Bonds Rating. ========= K O R E A ========= DAEWOO: Morgan Stanley Unit Emerges as Preffered Bidder ------------------------------------------------------- Morgan Stanley's private equity unit has emerged as the preferred bidder to acquire Daewoo Electronics Corporations, various reports say. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 28, 2007, Daewoo Electronics is put up for sale a second time as the US$746-million Videocon-Ripplewood bid fails. Videocon and bid partner Ripplewood Holdings, LLC, the TCR-AP recounted, submitted the winning bid for a controlling stake in Daewoo. The deal started to hit obstacles after the buyers completed due diligence, the report said. Expectations were out of line with what the asset was worth and creditors were not prepared to make the significant concessions necessary to progress discussions, the report points out, the report noted. According to Bloomberg News, creditors own 97.5% of Daewoo Electronics, according to the company's annual report for 2006. Woori Bank, the company's leading creditor, told Business Standards that the final contract with Morgan Stanley Private Equity is expected to be signed by May-end. The bidding anount was not disclosed. About Daewoo Electronics Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/-- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. According to the Troubled Company Reporter-Asia Pacific, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. Daewoo Electronics Corp. posted a KRW94-billion loss in 2005 after sales declined 6.4%. The net loss compares with the KRW30-billion profit the company posted in 2004. Sales fell to KRW2.2 trillion from KRW2.3 trillion in 2004. The TCR-AP reported on Nov. 14, 2005, that creditors of Daewoo Electronics placed the firm for sale for US$1 billion. ABN Amro, PricewaterhouseCoopers and Woori Bank were appointed to find a buyer for the business. In September 2006, the consortium led by Videocon Industries submitted a bid for a controlling stake in Daewoo. =============== M A L A Y S I A =============== INVENSYS PLC: Answers Speculations on Ongoing Debt -------------------------------------------------- In relation to Invensys Plc's announcement that it has exercised a call option on its 9.875% US dollar and Euro bonds due March 15, 2011, that will lead to their cancellation on March 17, 2008, the company has received questions about the ongoing debt of, or guaranteed by, the group's parent company Invensys Plc. Based on the group's debt position at Dec. 31, 2007, excluding the above bonds, the principal debt facilities available to the group are the credit facilities due Dec. 15, 2010 and Jan. 15, 2011, in the name of Invensys International Holdings Limited and Invensys USA Finance Inc. The company wished to make it clear that these facilities are not guaranteed by Invensys Plc. A schedule of the group's debt position as at Dec. 31, 2007, is available at: http://ResearchArchives.com/t/s?2812 About Invensys Plc Based in London, United Kingdom, Invensys Plc -- http://www.invensys.com/-- is a global automation, controls and process solutions Group operating in more than 60 countries worldwide. The company operates through six units: Controls, Process Systems, Rail Systems, APV, Wonderware, and Eurotherm. As reported in the TCR-Europe on May 28, 2007, at March 31, 2007, the Company's balance sheet GBP2 billion in total assets and GBP2.1 billion in total liabilities, resulting in a GBP140 million stockholders' deficit. * * * As of Feb. 13, 2008, Invensys Plc carries Moody's long-term corporate family rating at Ba3, senior unsecured debt rating at B2 and probability of default of Ba3. Standard and Poor's rates the company at long-term foreign issuer credit BB and long-term local issuer credit of BB with stable outlook. Fitch Ratings gives long-term issuer default rating at BB, senior unsecured debt rating at BB and short-term rating at B with stable outlook. MALAYSIA AIRLINES: Anticipates to Earn MYR160MM in Annual MATF -------------------------------------------------------------- Malaysia Airlines Bhd is confident in achieving MYR160 million ticket sales from its annual Malaysia Travel Fair to be held from Feb. 22 to Feb. 24, Yong Yen Nie wrotes for the EdgeDaily. "Looking at the last four years, we have generated between RM140 million and RM160 million in sales from the MATF and these are very encouraging figures," says the airline's senior general manager in network and revenue management, Datuk Bernard Francis says, as quoted by the EdgeDaily. According to Mr. Francis, the company had gained about MYR500 million sales from the fair for the past four years, the report added. Malaysia Airlines' commercial director Datuk Rashid Khan also declared that international airfares were expected to contribute about 80% of the anticipated total sales, with the rest coming from domestic airfares, notes the EdgeDaily. 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. MALAYSIA AIRLINES: Faces Earning Challenges in '09, Kenanga Says ---------------------------------------------------------------- Malaysian Airlines System Bhd's earnings for FY08 are relatively insulated due to various headwinds and other one-off provisions made in 2007, the EdgeDaily reports, citing Kenanga Investment Bank Research. However, the real challenge for the airlines could come in 2009 when the sky is finally free for all. Global economic slowdown, further liberalization, emergence of low-cost carriers and aggressive capacity expansion are some of the headwinds the aviation industry would likely face this year, claims the Kenanga Research. The Research also notes that the major risk to its earnings forecast was a sharp drop of business and leisure travels following massive job cuts in global banks and a more cautious economic outlook. Persistent high oil price was another serious threat to the airline's earnings. "Lastly, we suspect the government could consider increasing airport landing charges after strong lobby from Malaysia Airports Holdings Bhd, premised on the fact that Kuala Lumpur International Airport's current landing charges are amongst the cheapest in the world and Malaysia Airports' restructuring is still pending the government's approval," the EdgeDaily quotes Kenanga Research as saying. 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. SHAW GROUP: Cash Flow Improvement Cues S&P's Positive Outlook ------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on The Shaw Group Inc. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. "The outlook revision reflects Shaw's improved cash flow and favorable prospects in its end markets," said S&Ps credit analyst Dan Picciotto. The company has accumulated a sizable US$14 billion backlog. The ratings on Shaw Group continue to reflect the company's weak business risk profile, marked by exposure to cyclical end markets, although it has leading market positions in some segments. The company also has an aggressive financial risk profile. S&P could raise the ratings if the company continues to demonstrate solid cash flow and a disciplined financial policy. About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. WEMBLEY INDUSTRIES: Has Until June 30 to Sign DA w/ Datuk Bandar ---------------------------------------------------------------- Wembley Industries Holdings Berhad has been granted an extension until June 30, 2008, to sign the new Development Agreement of the Plaza Rakyat Project between Wembley's subsidiary, Plaza Rakyat Sdn Bhd, and Datuk Bandar Kuala Lumpur. Moreover, the Bursa Securities also granted Wembley until August 2008, or the date of execution of the Development Agreement, whichever is earlier to re-submit its regularization plan for approval. In the event: (a) Wembley submits its regularization plan to the Approving Authorities within the Extended Timeframe for Submission, Bursa Securities will await the outcome of Wembley's submission; and (b) Wembley fails to obtain the Approving Authorities' approval and appeals against the decision of the Approving Authorities, Bursa Securities will await the outcome of Wembley's appeal to the Approving Authorities. Wembley must proceed to implement its regularization plan expeditiously within the time frame or extended time frames stipulated by the Approving Authorities. Bursa Securities will proceed to de-list the securities of Wembley from the Official List of Bursa Securities in the event: * the Development Agreement is not executed by June 30, 2008; * the company fails to submit its regularization plan to the Approving Authorities for approval on or before the expiry of the Extended Timeframe For Submission; * Wembley fails to obtain the approval from the Approving Authorities necessary for the implementation of its regularization plan and does not appeal to the Approving Authorities within the time frame; * Wembley does not succeed in its appeal against the decision of the Approving Authorities; or * the company fails to implement its regularization plan within the time frame or extended time frames stipulated by the Approving Authorities. Headquartered in Sarawak Malaysia, Wembley Industries Holdings Berhad is a developer of commercial properties and investment holding. Its other activities are the development of the inter- state bus and taxi terminal, the retail podium and the budget hotel. The company has been placed under the Practice Note 4 category due to its tight cash flow position. On January 7, 2003, Malaysia's Foreign Investment Committee approved the company's regularization plan. Subsequently, on April 7, 2003, the FIC revised its approval to include the possible participation of Daewoo Corporation, the former turnkey contractor of Plaza Rakyat Project in the company's Proposed Debt Restructuring. The company's ability to continue as a going concern hinges on the successful implementation of the Scheme. ==================== N E W Z E A L A N D ==================== APEX TRAINING: Subject to CIR's Wind-Up Petition ------------------------------------------------ On January 4, 2008, the Commissioner of Inland Revenue filed a petition to have Apex Training Ltd.'s operations wound up. The petition will be heard before the High Court of Wellington on February 18, 2008. 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 BRIDGE CLIMB: Placed Under Voluntary Liquidation ------------------------------------------------ Bridge Climb Trustee Ltd.'s shareholders agreed on Feb. 1, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Richard Anthony Johnston to facilitate the sale of its assets. Creditors are required to file their proofs of debt by Feb. 21, 2008, to be included in the company's dividend distribution. The liquidator can be reached at: Richard Anthony Johnston PO Box 91842, Auckland New Zealand Facsimile:(09) 361 6702 DUNLEAHY INVESTMENTS: Placed Under Voluntary Liquidation -------------------------------------------------------- Dunleahy Investments Ltd.'s shareholders agreed on Dec. 10, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Brent Graham Melhop and Nicholas Stephen Buck to facilitate the sale of its assets. Messrs. Melhop and Buck are accepting creditors' proofs of debt until February 25, 2008. The liquidators can be reached at: Brent Graham Melhop Nicholas Stephen Buck Avalon Business Centre, Level 8 Percy Cameron Street, Lower Hutt New Zealand Telephone:(04) 910 5582 Facsimile:(04) 910 5570 COMMUNICATION TECHNOLOGY: Appoints Levin & Vance as Liquidators --------------------------------------------------------------- On January 31, 2007, the High Court at Auckland appointed Henry David Levin and David Stuart Vance as the liquidators of Communication Technology Investments Ltd. Messrs. Levin and Vance are accepting creditors' proofs of debt until March 7, 2008. The liquidators can be reached at: Henry David Levin David Stuart Vance PPB McCallum Petterson Forsyth Barr Tower, Level 11 55-65 Shortland Street Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 GOLDEN CIRCLE: Creditors' Proofs of Debt Due on February 21 ----------------------------------------------------------- The creditors of Golden Circle N. Z. Ltd. are required to file their proofs of debt by February 21, 2008, to be included in the company's dividend distribution. The company's liquidator is: 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 KINGSTON STREET: Undergoes Liquidation Proceedings -------------------------------------------------- Kingston Street Trustee Limited's shareholders agreed on Feb. 1, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Richard Anthony Johnston to facilitate the sale of its assets. Creditors are required to file their proofs of debt by Feb. 21, 2008, to be included in the company's dividend distribution. The liquidator can be reached at: Richard Anthony Johnston PO Box 91842, Auckland New Zealand Facsimile:(09) 361 6702 LAKE TIMBER: Wind-Up Petition Hearing Set for March 10 ------------------------------------------------------ A petition to have Lake Timber & Hardware Ltd.'s operations wound up will be heard before the High Court of Rotorua on March 10, 2008, at 10:00 a.m. Anthony James MacDougall and Joan Margaret MacDougall were appointed as liquidators. The liquidators can be reached at: Anthony James MacDougall Joan Margaret MacDougall Sharp Tudhope, Tauranga New Zealand MONDRIAN PROPERTY: Wind-Up Petition Hearing Set for April 24 ------------------------------------------------------------ The High Court of Auckland will hear on April 24, 2008, at 10:45 a.m., a petition to have Mondrian Property Holdings Ltd.'s operations wound up. Simon Eoin Davidson filed the petition on November 28, 2007. Simon Eoin's solicitor is: M. H. L. Morrison Lowndes Jordan, Level 22 The ANZ Centre 23-29 Albert Street Auckland New Zealand NELSON STREET: Commences Liquidation Proceedings ------------------------------------------------ Nelson Street Trustee Limited's shareholders agreed on Feb. 1, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Richard Anthony Johnston to facilitate the sale of its assets. Creditors are required to file their proofs of debt by Feb. 21, 2008, to be included in the company's dividend distribution. The liquidator can be reached at: Richard Anthony Johnston PO Box 91842, Auckland New Zealand Facsimile:(09) 361 6702 QT HOSPITALITY: Court to Hear Wind-Up Petition on February 27 ------------------------------------------------------------- A petition to have QT Hospitality Ltd.'s operations wound up will be heard before the High Court of Invercargill on Feb. 27, 2008, at 9:30 a.m. Coca-Cola Amatil (N.Z.) Limited filed the petition on Dec. 21, 2007. Coca-Cola Amatil's solicitor is: Anna Mary Fitzgibbon LawWorks, Guildford House 2 Emily Place PO Box 4204, Auckland New Zealand JONESES REAL: Shareholder Places Firm in Liquidation ---------------------------------------------------- The Joneses Real Estate Ltd. has been placed in voluntary liquidation by its sole shareholder TJRE Holdings Ltd., a media release yesterday revealed. According to the release, early Monday, it was announced that the proposed reverse listing of TJRE through RLV No. 3 Ltd. would not proceed because sufficient new capital could not be raised. The reverse listing required NZ$1.5-NZ$4 million to be raised from investors in addition to TJRE's capital base. With the reverse listing unable to proceed, alternative funding sources for The Joneses had been explored but these were not sufficient to continue to fund the business, TJRE's directors said. While there was a commitment of further capital from private investors and the directors of TJRE subject to the listing proceeding, spokesperson Chris Taylor said that, with that option no longer available, the directors of TJRE now believed that The Joneses had insufficient cashflow to continue trading, and were obliged to place the business in voluntary liquidation. The directors and managers of The Joneses would work with the liquidator to ensure minimal disruption for existing customers. There was no risk to sale and purchase deposits as these were ringfenced in a trust account. Mr. Taylor said that while initial responses from investors around Christmas and the New Year had been positive, investor sentiment appeared to have turned much more cautious recently with the combined fall in equity markets and property prices taking their toll. He said that the existing shareholders had gone as far as they could go, and the current climate had simply proved too tough in terms of raising new capital. The Joneses is now in the hands of liquidators Aaron Heath and Mike Lamacraft of Meltzer, Mason & Heath. The Joneses Real Estate Ltd. is a fixed-fee real estate agency chain in New Zealand. TAURUS HIRE: Subject to Taurus Hire's Wind-Up Petition ------------------------------------------------------ On January 7, 2008, Taurus Hire & Storage Limited filed a petition to have Banks Transport (2006) Ltd.'s operations wound up. The petition will be heard before the High Court of Auckland on May 9, 2008, at 10:45 a.m. Taurus Hire's solicitor is: Kevin Patrick McDonald c/o Kevin McDonald & Associates Takapuna Towers, Level 11 19-21 Como Street PO Box 331065, Takapuna Auckland New Zealand Telephone:(09) 486 6827 Facsimile:(09) 486 5082 ===================== P H I L I P P I N E S ===================== ALLIED BANKING: Moody's to Give Ba3 Rating to Subordinated Notes ---------------------------------------------------------------- Moody's Investors Service will assign a Ba3 rating to the proposed issuance of Philippine Peso-Denominated Step-up Callable Dated Subordinated Notes due 2018, as issued by Allied Banking Corporation. The rating outlook is stable. This rating is subject to the receipt of final documentation, the terms and conditions of which are not expected to change in any material way from the draft documents Moody's has reviewed. The subordinated notes will represent direct, unconditional, subordinated, and unsecured obligations of the bank and qualify as Lower Tier II capital. The notes are due in 2018 and callable in and after 2013, five years from the issuance. They also contain a step-up interest rate feature that will be activated in 2013 if they are not redeemed. Upon the occurrence of a subordination event, the ranking of the notes is subordinated to the claims of depositors and senior creditors. Moody's ratings for ABC derive from the bank's strong niche in middle-market business financing and average financials. According to the bank's preliminary financial reports for 2007, it appears to have made further progress on the disposals of non-performing assets and there appears to be a recovery in profit growth. Moody's assessment of the probability of systemic support for ABC is high, which results in an uplift in its local currency deposit ratings from the B1 baseline credit assessment. Allied Banking Corp, headquartered in Manila, is the tenth largest bank in the Philippines with P142 billion in assets as of end-2007. MANILA ELECTRIC: Lowers Generation Charge in February Billing ------------------------------------------------------------- The Manila Electric Company has reduced by 23.29 centavos the generation component of their customers electricity bills for February, the company said in a press release. From the January level of PHP4.4275 per kilowatthour, the generation charge for February will go down to PHP4.1946 per KWh, owing mostly to the low prices Meralco obtained form the Wholesale Electricity Spot Market. "Energy that we sourced from the WESM in January was an all-time low of PHP3.38 per kWh. This is the lowest monthly WES rate (inclusive of NPC's GRAM and ICERA) since the electricity spot market started commercial operations in July 2006," the release quoted Meralco VP-Corporate Communications Elpi Cuna as saying. "In fact, because of a substantial adjustment in the WESM bill for January, the effective rate from the WESM was further brought down to only PHP1.94 per kWh." According to the company, the significant reduction in the cost of power from the WESM more than offset the 93 centavos increase in NPC's rate, from PHP3.97 per kWh in December to its January level of PHP4.90 per kWh. The cost of power from Meralco's IPPs remained stable at an average of PHP4.17 per kWh. The IPPs supplied 56% of Meralco's requirements in January. Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in Metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. The Troubled Company Reporter-Asia Pacific reported on Dec. 14, 2007, that Standard & Poor's Ratings Services revised the outlook on its ratings on Manila Electric Co. (Meralco) to stable from negative. The 'B-' long-term issuer credit rating on Meralco was affirmed. MANILA ELECTRIC: Permitted to Continue Operations in 11 Sites ------------------------------------------------------------- The Manila Electric Company informed the Philippine Stock Exchange that the Energy Regulator Commission granted the company provisional authority to continue operating its electric services in eight areas in Laguna. According to a filing with the PSE, the ERC granted Meralco provisional permit to go with their operations in: 1. Barrios of Sucol, Bucal, Pansol, Bagong Kalsad and Masili in Calamba, Laguna 2. Majayjay, Laguna 3. Alaminos, Laguna 4. Los Banos, Laguna 5. Nagcarlan, Laguna 6. Liliw, Laguna 7. Rizal, Laguna 8. Sta. Cruz, Laguna 9. Victoria, Laguna 10. Bay, Laguna 11. Pila Laguna Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in Metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. The Troubled Company Reporter-Asia Pacific reported on Dec. 14, 2007, that Standard & Poor's Ratings Services revised the outlook on its ratings on Manila Electric Co. (Meralco) to stable from negative. The 'B-' long-term issuer credit rating on Meralco was affirmed. SITEL WORLDWIDE: Weak Liquidity Cues Moody's Negative Outlook ------------------------------------------------------------- Moody's Investors Service changed the outlook of Sitel Worldwide Corporation to negative from stable. The negative outlook underscores the company's weak liquidity position, which may require the company to seek relief in an available equity cure under its credit agreement from its shareholders. The negative outlook also reflects Moody's belief that despite the equity cure, the company's EBITDA cushion under its financial covenants will remain very tight, and a shortfall in the company's 2008 anticipated performance could require the company to seek further equity cure or other relief. These ratings are affirmed: -- Corporate family rating -- B2 -- Probability of default rating -- B3 -- US$85 million first lien revolving credit facility -- B2, LGD-3, 35% -- US$675 million first lien term loan -- B2, LGD-3, 35% Approximately US$762 million of debt securities affected. Sitel's B2 corporate family rating reflects some on-going integration risk, liquidity constrained by financial covenants under the company's credit facility, break even to negative free cash flow, and moderate client concentration. The ratings are supported by the company's scale and position as one of the largest provider within the highly competitive call center outsourcing industry, and the favorable outlook for the call center outsourcing industry. The company has pro forma LTM December 2007 revenues of approximately US$1.9 billion. Headquartered in Nashville, Tennessee, Sitel Worldwide Corp. -- http://www.sitel.com/-- is a customer care business process outsourcing vendor for voice services. It competes with larger multinational companies (i.e. EDS, Accenture, and IBM) and a host of like size companies (including Convergys, West, Teletech, and Sykes) in the customer care call center and business process outsourcing industry. The company has an approximate 80:20 ratio of on/near shore to off shore operating capacit and operates more than 155 locations in 27 countries, including Brazil, Mexico and the Philippines. VITARICH CORP: Confirms Increased Revenue Projections in 2008 ------------------------------------------------------------- Vitarich Corporation, in a regulatory filing with the Philippine Stock Exchange, confirmed a Feb. 12 BusinessWorld report that it sees increased sales revenues. According to the report, Vitarich is eyeing a 15% increase in revenues this year. The increased sales revenue is part of our rehabilitation plan, Vitarich explains, adding that it cannot honor its obligations according to the plan if it does not increase revenue and profit. The increase, Vitarich made it clear, is not caused simply by its management's strategy and improved operations. The company pointed out of the market's high raw material prices, lower livestock production volumes and a possible sunrise industry, as reflective of a scenerio that would bring the projections to reality. Bulacan, Philippines-based Vitarich Corporation -- http://www.vitarich.com/-- is among the leading integrated producers and wholesalers of poultry and animal feed products in the Philippines. The company also develops, produces and sells animal health products. The Company reported net losses worth PHP163.79 in 2006, PHP249.3 million in 2005 and PHP291.2 million in 2004 . Vitarich is currently implementing a rehabilitation plan. WENDY'S INT'L: S&P Ratings Unaffected by Trian's Board Expansion ---------------------------------------------------------------- Standard & Poor's Ratings Services said that Trian Partners' announcement that it will try to increase its board representation has no immediate impact on Wendy's International Inc.'s (BB-/Watch Neg/--) ratings profile. On Feb. 11, Trian Partners, a 9.8% holder of the Wendy's shares, gave notice that it would seek shareholder approval to expand the size of the board from 13 to 15 members by increasing the number of nominees at this year's annual meeting from four to six directors. If these proposals are successful, Trian Partners would gain a majority on the board, given the three board members already in place. Wendy's financial policies have become significantly more aggressive since Highfield Capital Management, Sandell Asset Management Corp., and Trian Fund Management L.P. acquired large holdings in the company. In the past 18 months, Wendy's has sold real estate, spun off Tim Hortons to its shareholders, and undertaken significant share repurchases. By attempting to persuade Wendy's shareholders to vote for Trian's nominees, Chairman Nelson Peltz of Triarc Cos. could be signaling that Triarc is no longer interested in acquiring Wendy's since it would not need more board seats to exercise control. While the ostensible reason for the Trian initiative is to ensure compliance with a Feb. 11 filing deadline, Trian's move, if successful, may also have the effect of removing Wendy's CEO Kerrii Anderson from the board since she faces reelection at this year's annual meeting. These developments reinforce Standard & Poor's view that ratings on Wendy's should remain on CreditWatch with Negative implications, where they were placed on April 26, 2007, following the announcement that a Special Committee of its Board of Directors would undertake a strategic review including a possible sale of the company. It is likely that Trian's efforts to gain control will hasten the Special Committee decision for consideration by the board. On Jan. 28, 2008, the company announced that the Special Committee was in the final stages of its review. When the company makes public its future plans, S&P will assess the appropriateness of the current 'BB-' rating. S&P could lower ratings if the company undertakes actions that deteriorate cash flow protection measures or disadvantage bondholders. ================= S I N G A P O R E ================= AAR CORP: US$25MM Over-Allotment Option Exercised by Purchasers --------------------------------------------------------------- AAR CORP. disclosed that the initial purchasers of the convertible senior notes issued on February 11, 2008, have exercised in full their over-allotment option to purchase an additional US$25 million in aggregate principal amount of Notes. The additional Notes will be allocated evenly between the two tranches of Notes, resulting in a total of US$137.5 million aggregate principal amount of 1.625% convertible senior notes due 2014 and US$112.5 million aggregate principal amount of 2.25% convertible senior notes due 2016. The company expects to complete the sale of the additional Notes on February 19, 2008. As with the initial US$225 million of Notes, the additional US$25 million of Notes are subject to separate convertible note hedge transactions between the company and an affiliate of one of the initial purchasers of the Notes. Separately, the company will enter into additional warrant transactions with an affiliate of one of the initial purchasers of the Notes. These convertible note hedge and warrant transactions are intended to reduce potential dilution to the company's common stock upon potential future conversion of the Notes and generally have the effect on the company of increasing the conversion price of the Notes to approximately US$48.83 per share, representing a 75.0% premium based on the last reported sale price of US$27.90 per share on February 5, 2008. The Notes have not been registered under the Securities Act of 1933 or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable securities laws. About AAR Corp. AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and value-added services to the worldwide aviation and aerospace industry. With facilities and sales locations around the world, AAR uses its lose-to-the-customer business model to serve airline and defense customers through Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. In Latin America, the company has a sales office in Rio de Janeiro, Brazil. * * * AAR Corporation continues to carry Moody's Investors Service's 'Ba3' long-term corporate family rating, which was assigned on November 2006. BELIMO ACTUATORS: Creditors' Proofs of Debt Due on March 15 ----------------------------------------------------------- Belimo Actuators Pte Ltd, which is in voluntary liquidation, requires its creditors to file their proofs of debt by March 15, 2008, to be included in the company's dividend distribution. The company's liquidator is: Lai Seng Kwoon c/o 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 CHEMTURA CORP: Expects to Post US$2MM Net Income in 2007 4Q ----------------------------------------------------------- Chemtura Corporation pre-disclosed its earnings from continuing operations before income taxes, earnings from continuing operations before income taxes on a non-GAAP basis, and earnings from discontinued operations before income taxes for the fourth quarter ended Dec. 31, 2007. Earnings from continuing operations before income taxes for the fourth quarter of 2007 were US$2 million compared with a loss of US$50 million for the fourth quarter of 2006. The US$52 million increase relates to the US$48 million increase in operating profit discussed above, a US$12 million increase in foreign exchange gains and US$2 million in other cost decreases. These earnings were partially offset by the absence of the $6 million gain in the fourth quarter of 2006 on sale of the company's equity interest in the Davis Standard venture and an increase of US$4 million in minority interest expense. Non-GAAP earnings from continuing operations before income taxes in 2007 and 2006 exclude charges of US$31 million and US$39 million, related to the change in useful life of property, plant and equipment, antitrust costs, facility closures, severance and related costs, accelerated recognition of asset retirement obligations, gain on sale of equity interest in joint venture and impairment of long-lived assets. "Our fourth quarter results demonstrated much of the progress we have made in 2007," Robert L. Wood, chairman and CEO, said, "As expected, we strongly outperformed the fourth quarter of 2006, but we also improved over the first and third quarters of 2007. "Three of our four business units continued to show improvement in operating profitability. "Our performance specialties and crop protection business generated particularly strong performances, with revenue growth and expanded operating margins. Performance specialties showed the benefit of the Kaufman acquisition and grew its petroleum additive products business. Consumer products delivered improved profitability despite being in its winter season. Non-GAAP earnings from discontinued operations before income taxes include earnings from the EPDM, optical monomers and fluorine businesses of US$6 million and US$8 million for the quarters ended Dec. 31, 2007 and 2006. "We continue to make progress in restructuring and repositioning our Polymer Additives business as is evident by our pending sale of the oleochemicals business and the growth in PVC revenues," Mr. Wood added. "However, this was a quarter when progress was not readily visible. Sales volume growth was muted by higher revenues from applications such as PVC being offset by lower revenues in products such as clear brine fluids. Electronic revenues recovered after the trough of the third quarter to levels comparable to a year ago. Year-over-year operating income performance primarily reflects the increases in raw material cost, particularly tin and natural oils and fats, which have only been offset in part by increased selling prices. "The quarter saw further progress in our cost reductions actions. The US$1 million reduction in SGA&R compared to the fourth quarter of 2006 understates our progress," Mr. Wood related. "Spending for the quarter was down about 10% from a year ago before reflecting the increase in SGA&R from the Kaufman acquisition, the net impact of non-recurring items and foreign currency translation due to the weaker US dollar. SGA&R was 12% of sales in the quarter compared to 13% of sales in the fourth quarter of 2006. "As we now look forward to 2008, we expect a year of improvement, although the normal seasonal weakness of the first quarter will likely result in performance at levels comparable to 2007," Mr. Wood continued. "Our portfolio restructuring is primarily focused on completing the transformation of our Polymer Additives business. We are making good progress in recovering the cost of rising raw material through price increases and our cost reduction actions are taking hold. The diversity of our business portfolio and our restructuring programs will serve us well in mitigating the possible impacts of a slowing economy. 2008 will be a year of transformation and our focus on executing our improvement plans." Fourth Quarter 2007 Significant Transactions & Events * The company continued to incur charges related to the company-wide restructuring plan and other restructuring initiatives disclosed in the second quarter of 2007. The company recorded a fourth quarter pre-tax charge for severance and related costs of US$2 million related to these actions. * During the quarter the company launched an initiative to consolidate its multiple ERP systems on a single SAP platform over the next eighteen months. This action will permit the simplification and standardization of business processes. As a result of this decision, the company impaired US$3 million of construction in progress costs related to software, which now will not be utilized and started to accelerate the depreciation of the capital cost of its legacy ERP systems to reflect their revised expected useful life. * On Oct. 31, 2007, the company has sold its optical monomers business. Included in the transaction was the company's Ravenna, Italy manufacturing facility. The optical monomers business is reported as a discontinued operation. * On Dec. 14, 2007, the company signed an asset purchase agreement to sell its fluorine chemical business. The transaction closed on Jan. 31, 2008 and will be reported in the company's financial statements for the first quarter of 2008. The fluorine business is reported as a discontinued operation. * On Dec. 31, 2007, the company employed 5,144 people, a 5% reduction in the fourth quarter. Additional reductions are expected as the company completes its divestiture actions. * On Jan. 25, 2008, the company has reached agreement to sell its oleochemicals business including its Memphis, Tennessee plant and expects the transaction to close in the first quarter of 2008, subject to financing and customary closing conditions. Cash Flows * Cash and cash equivalents were US$77 million as of Dec. 31, 2007, compared to US$95 million as of Dec. 31, 2006. * The company's total debt as of Dec. 31, 2007, was US$1.06 billion as compared with US$1.11 billion as of Dec. 31, 2006. * The company's sales of accounts receivable under its securitization programs were US$239 million as of Dec. 31, 2007, US$303 million as of Sept. 30, 2007 and US$279 million as of Dec. 31, 2006. About Chemtura Corporation Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:CEM) -- http://www.chemtura.com/-- is a manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products. The company has approximately 6,400 employees around the world and sells its products in more than 100 countries. The company has facilities in Singapore, Australia, China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany, Mexico, and The United Kingdom. * * * As reported in the Troubled Company Reporter on Dec. 21, 2007, Moody's Investors Service placed Chemtura Corporation's corporate family rating of Ba2 under review for possible downgrade after reports that its "board of directors has authorized management to consider a wide range of strategic alternatives available to the company to enhance shareholder value." Standard & Poor's Ratings Services placed its 'BB+' corporate credit and senior unsecured debt ratings of Chemtura Corp. on CreditWatch with developing implications, after reports that management is considering strategic alternatives, including sale or merger of the company. DBS BANK: Moody's Affirms 'B' Bank Financial Strength Rating ------------------------------------------------------------ Moody's Investors Service says DBS Bank Ltd's ratings have not been affected by the announcement of additional provisions relating to its collateralized debt obligations and other investment exposures during 4Q2007, or by its recent acquisition of Taiwan-based Bowa Commercial Bank. The ratings affirmed are DBS': -- long-term/short-term deposit ratings of Aa1/P-1; -- bank financial strength rating of B; -- subordinated and junior subordinated debt rating of Aa2; and -- preference share rating of Aa3. The outlook on all ratings is stable. "While DBS took additional provisions as a result of the global market turmoil, the amount is within Moody's stress-testing scenarios and the bank's core business remains sound, which provides support for its current ratings," says Christine Kuo, a Moody's VP/Senior Analyst. "Also, given the small size of Bowa Bank, we do not expect its acquisition to create significant pressure on DBS' strong balance sheet," adds Kuo. "However, as the global financial markets remain turbulent, Moody's will closely monitor market conditions and the bank's performance. Should DBS' core businesses be affected as a result of the spill-over of the US economic slowdown and/or the losses on the bank's investment portfolios increase significantly, we will need to review its outlook and possibly ratings," says Kuo. DBS' 2007 net profit of SGD2,278 million was flat compared with a year ago, despite the SGD240 million specific allowance taken for its CDOs with exposures to US sub-prime assets, and the SGD264 million impairment charges for its stake in Thailand- based TMB Bank. However, its core businesses remain resilient, with profit before provisions rising 19% YoY on higher net interest income and fee income and on a lower cost-to-income ratio. In addition, of the bank's total CDO exposure of SGD1.5 billion as at the end of January 2008 most consisted of corporate CDOs, with only SGD267 million relating to asset-backed securities that have exposure to US sub-prime mortgages. Including the additional provision of SGD170 million taken during 4Q2007, DBS' cumulative provisions cover 90% of its ABS CDO exposures, which Moody's deems prudent. Moreover, 4% general allowances were taken for the bank's SGD1.2 billion of corporate CDOs in the investment portfolio, 99% of which are rated A or above. DBS also took impairment charges of SGD264 million during 2007 for its stake in TMB Bank, which brought the carrying value down to SGD209 million, reflecting the further reduction in the market valuation of TMB Bank. The bank's 16% stake was reduced to 6.8% in the fourth quarter after DBS decided not to subscribe to its rights in TMB Bank's share offer. On 1st February 2008, DBS won the bid to take over Bowa Bank from Taiwan government's Central Deposit Insurance Corporation. CDIC will pay DBS SGD1.9 billion (NT$44.5 billion) for acquiring Bowa Bank's "good bank assets" of approximately SGD2.9 billion (NT66.3 billion) in net loans, SGD4.1 billion (NT$92.3 billion) in deposits, 43 distribution outlets and over 750,000 depositors. Based on Taiwan's Financial Supervisory Commission data, Bowa had a negative net worth of SGD1.5 billion (NT$34.7 billion) as of 30th November 2007. However, a portion of Bowa Bank's balance sheet was carved out for this sale. DBS has not disclosed the details of the balance sheet to be acquired. The transaction is expected to be closed at the end of May 2008. While Bowa Bank's asset quality is in question, the compensation paid by CDIC will offset a portion of the potential losses. DBS will, however, need to rebuild the franchise of its Taiwanese acquisition, and install infrastructure and systems in the failed bank in order to make it operate effectively and profitably. Given that the balance sheet of Bowa Bank is very small relative to that of DBS, Moody's expects DBS to be able to absorb Bowa Bank's operations without stressing its own balance sheet. Bowa Bank will become part of DBS and not a subsidiary. Also, the 100% ownership of Bowa will enable DBS to execute its business strategy effectively, unlike the case of TMB Bank. However, the bank's management resources could be stretched somewhat as Bowa has 39 branches and DBS is building its mainland Chinese franchise at the same time. DBS' ratings reflect its leading domestic franchise and strong financial fundamentals, as seen in the bank's financial strength rating of B. In addition, the ratings incorporate a very high probability of systemic support, if needed, given the bank's high national market share (26% of deposits) and relative importance to Singapore's banking system. Headquartered in Singapore, DBS Bank is Singapore's largest bank with consolidated group assets of SGD234 billion (US$162 billion) as of 31 December 2007. ELEMECH ENGINEERING: Court to Hear Wind-Up Petition on Feb. 29 -------------------------------------------------------------- A petition to have Elemech Engineering (S) Pte Ltd's operations wound up will be heard before the High Court of Singapore on February 29, 2008. S-Team Switchgear Pte Ltd filed the petition against the company on February 4, 2008. S-Team Switchgear's solicitor is: Drew & Napier LLC 20 Raffles Place #17-00 Ocean Towers Singapore 048620 ONE GROUP: Court Enters Wind-Up Order ------------------------------------- On February 1, 2008, the High Court of Singapore entered an order to have One Group Asia Holdings Pte. Ltd.'s operations wound up. Tequila Asia-Pacific (Singapore) Pte Ltd filed the petition against the company. One Group's solicitor is: The Official Receiver 45 Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118 TARGUS GROUP: Improved Performance Cues Moody's Stable Outlook -------------------------------------------------------------- Moody's Investors Service changed the outlook of Targus Group International, Inc. to stable from negative and affirmed the Caa1 Corporate Family Rating. The change in outlook acknowledges improvements in operating performance including solid top line growth in the last two completed quarters, particularly in Latin America, Asia and Eastern Europe. The change in outlook also takes into account the company's leading market position, albeit in a relatively narrow segment, as well as progress in inventory management and improved liquidity. The ratings continue to be constrained by high leverage, with adjusted debt to EBITDA of about 6.2 times for the twelve months ended Dec. 31, 2007, and weak interest coverage with EBIT to interest coverage of about 1.1 times. Cash interest coverage is stronger, with EBITDA less capital expenditures to interest of about 1.4 times. Adjustments include Moody's standard adjustments for operating leases but exclude the effect of an additional US$33 million of senior unsecured PIK notes due 2013 at the parent, Targus Holdings, Inc. which would bring the adjusted debt to EBITDA ratio closer to seven times and EBIT interest coverage to about one time. The ratings also reflect the potential for lower demand for computer cases and accessories in a weakening economy in the United States. Offsetting these risks are the revenue diversity from a worldwide geographic footprint, three separate distribution channels and the favorable growth trends for notebook cases and computer accessories as global notebook computer unit sales continue to increase. The company has minimal capital expenditures and generated positive adjusted free cash flow of about 3.5% of adjusted debt in the twelve months ended Dec. 31, 2007. Moody's took these rating actions: -- Affirmed the Caa1 Corporate Family Rating; -- Affirmed the Caa1 Probability of Default Rating; -- Affirmed the B2 (LGD-2, 27%) rating on the first-lien secured bank facilities which consist of a US$40 million revolver due 2011 and US$185 million term loan due 2012; -- Affirmed the Caa2 (LGD-4, 69%) rating on the US$85 million second-lien secured term loan due 2013; -- Changed the outlook to stable from negative. Increased leverage materially beyond current levels, combined with negative free cash flow generation for more than two quarters could lead to a downgrade. Moody's will continue to monitor bank loan covenant compliance as these tighten further at the end of the 2008 fiscal year and liquidity considerations could also put pressure on the ratings. Given the likely weakness in economic conditions in the United States and potentially elsewhere, Moody's believes that the company could face challenging conditions. Nonetheless, continued sustainable free cash flow generation and successful debt reduction is likely to lead to upward pressure on the ratings in the near term. Targus Group International Inc. -- http://www.targus.com/-- invented the notebook case and continues to advance the mobile accessories category with innovative and relevant solutions for today's mobile lifestyle. Founded in 1983, Targus headquarters are located in Anaheim, California, with offices worldwide and distribution agreements in more than 100 countries, including Germany, France, Italy, Spain and United Kingdom. The company has Latin America operations in Argentina, Barbados, Costa Rica El Salvador, and Singapore in Asia. =========== T A I W A N =========== FAR EASTERN: Seeks Bankruptcy Protection for Three Months --------------------------------------------------------- Far Eastern Air Transport Corp. has sought bankruptcy protection for three months from the Taipei District Court to stop creditors from seizing the company's assets, various reports say. According to the company's Executive Vice President S.P. Kuan, the bankruptcy court's protection would allow the airline to continue operating and serve its customers while it seeks for ways to find funding to pay debts. Radio Taiwan International says that its liabilities amounted to NT$9.99 billion (US$315 million) at Sept. 30, 2007. Separately, AFP cites Unnamed sources as saying that the airline's bank debts have now reached more than US$5 billion. "By filing for bankruptcy protection we want to ensure passenger rights and prevent banks from seizing our planes, which would disrupt normal operations," Mr. Chang was quoted by the Wall Street Journal as saying. In a statement filed with the Taiwan Stock Exchange, the airline said that its debt-to-asset ratio was 87.43% as of January, making it difficult to pay its creditor group comprised of the Bank of Taiwan, Mega Bank, Taiwan Cooperative Bank, among others. The airline promised to settle payments within one month, as it expects to generate US$230 million through the sale of its non- core assets, AFP relates. Meanwhile, Far Eastern's membership with the International Air Transport Association was halted as of last week because of its inability to pay US$840,000 of overdue fees, the Journal states. Also, the airline owes Taiwan's Civil Aeronautics Administration about US$1.3 million for landing and airport fees. The Journal relates that the air carrier's troubles were brought on by high fuel prices and the presence of the high-speed rail service from Taipei to Kaohsiung. Because of the rail service, Far Eastern's sales dropped 7.7% in 2007, the China Post says. The China Post adds that Far Eastern's US$4.76 million check issued to its fuel supplier, CPC Corp., bounced. About Far Eastern Air Transport Headquartered in Taiwan, Far Eastern Air Transport Corporation is an airline company that provides both domestic and international passenger flight services. The Company also provides both domestic and international chartered flight services, freight and postal delivery services and aircraft maintenance services. D uring the year ended Dec. 31, 2006, domestic passenger flight service, international passenger flight service and chartered flight service accounted for approximately 53%, 18% and 18% of its total revenue, respectively. =============== T H A I L A N D =============== * Fitch To Hold Teleconference for Asia's Banks on Feb. 20 ---------------------------------------------------------- Fitch Ratings will host a teleconference on February 20, 2008, at 11 a.m. Hong Kong and 12 p.m. Korea to discuss the agency's outlook for the region's banks (ex-Japan) in 2008. The call will include a regional economic and banking outlook, as well as more specific comments on the Chinese and Korean banks. The teleconference will be hosted by David Marshall, Managing Director and the agency's head of Financial Institutions ratings, Asia Pacific. Senior Directors Charlene Chu and Peter Tebbutt will present on Chinese and Korean banks, respectively. James McCormack, Managing Director of Sovereigns ratings will participate on the call with an overview of the region's economies. The call is expected to run approximately 20 minutes, followed by a short Q&A session for interested participants. Tan Lai Peng, Director, will be available for queries on Singapore's banks, while Ananda Bhoumik, Senior Director will take questions on the Indian banks. To register for this event, please contact Evon Hanip at (65) 67967208/ evon.hanip@fitchratings.com. Instructions: Participants should dial the listed toll free telephone access number at least 5 minutes before start time. When prompted by the Operator, the pass code is 'Fitch Ratings.' Participants will be placed in listen-only mode with music until the moderator or speaker starts the conference. Participants are advised to dial the toll free lines from an IDD-enabled fixed land line. These are the details of the teleconference: -- Date: Wednesday, February 20, 2008 -- Time: 11AM HK/SG -- Australian Toll Free: 1800 097 137 -- Japan Toll Free: 0044 2206 2130 -- Korea Toll Free: 00798 612 1030 -- China North Toll Free: 10800 6110 114 -- China South Toll Free: 10800 3610 134 -- Taiwan Toll Free: 00801 232 383 -- Hong Kong Toll Free: 800 962 681 -- Singapore Toll Free: 800 6162 212 -- Malaysia Toll Free: 1800 181 225 -- Indonesia Toll Free: 00180 3061 2084 -- Thailand Toll Free: 001800 612 1073 -- India Toll Free: 000 800 100 6486 -- Philippines Toll Free: 1800 1612 0024 Replay: An archived replay of the teleconference will be available from the 'Events Calendar' on the Fitch Ratings Asia website, http://www.fitchratingsasia.com/from February 22, 2008. * BOND PRICING: For the Week 18 February to 22 February 2008 ------------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA & NEW ZEALAND ----------- Ainsworth Game Technology Ltd 8.000% 12/31/09 AUD 0.72 A&R Whitcoulls Group 9.500% 12/15/10 NZD 10.80 Allco Hit Ltd 9.000% 08/17/09 AUD 33.30 Allco Hit Ltd 9.000% 12/31/10 AUD 23.00 Antares Energy Limited 10.000% 10/31/13 AUD 1.51 Arrow Energy NL 10.000% 03/31/08 AUD 2.00 Babcock & Brown Pty Ltd 8.500% 11/17/09 NZD 12.25 Babcock & Brown Pty Ltd 9.010% 09/15/16 NZD 11.40 Becton Property Group 9.500% 06/30/10 AUD 0.72 Capital Properties NZ Ltd 8.500% 04/15/09 NZD 11.25 Capital Properties NZ Ltd 8.000% 04/15/10 NZD 10.25 China Century Capital Ltd 12.000% 09/30/10 AUD 1.00 Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.40 FGL Finance 6.250% 03/17/10 AUD 8.36 Fletcher Building Ltd 8.600% 03/15/08 NZD 10.50 Fletcher Building Ltd 7.800% 03/15/09 NZD 9.75 Fletcher Building Ltd 7.550% 03/15/11 NZD 9.70 Heemskirk Consolidated Limited 8.000% 09/30/11 AUD 2.85 Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 10.00 Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 11.60 LongReach Group Limited 10.000% 10/31/08 AUD 0.28 Metal Storm Ltd 10.000% 09/01/09 AUD 0.12 Minerals Corp 9.000% 03/31/08 AUD 1.20 Nylex Limited 10.000% 12/08/09 AUD 1.87 PPCS Limited 11.500% 12/15/10 NZD 71.51 Salomon SB Aust 4.250% 02/01/19 USD 7.63 South Canterbury 10.430% 12/15/12 NZD 1.01 Speirs Group Ltd. 13.160% 06/30/49 NZD 60.00 TrustPower Ltd 8.300% 12/15/08 NZD 11.00 TrustPower Ltd 8.500% 09/15/12 NZD 9.95 TrustPower Ltd 8.500% 03/15/14 NZD 9.00 CHINA ----- CITIC Guoan Information Indust. Co., Ltd 1.200% 09/14/13 CNY 74.99 Saic Motor 0.800% 12/19/13 CNY 74.67 JAPAN ----- JPN Fin Muni Ent 1.700% 10/30/08 JPY 1.20 Nara Prefecture 1.520% 10/31/14 JPY 9.35 NIS Group Co., Ltd. 2.290% 03/23/09 JPY 70.02 NIS Group Co., Ltd. 2.730% 02/26/10 JPY 69.94 KOREA ----- Korea Dev. Bank 7.350% 10/27/21 KRW 48.98 Korea Dev. Bank 7.450% 10/31/21 KRW 48.96 Korea Dev. Bank 7.400% 11/02/21 KRW 48.94 Korea Dev. Bank 7.310% 11/08/21 KRW 48.89 Korea Dev. Bank 8.450% 12/15/26 KRW 72.62 MALAYSIA -------- Advance Synergy Berhad 2.000% 01/26/18 MYR 0.07 Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 1.07 Berjaya Land Bhd 5.000% 12/30/09 MYR 5.50 Bumiputra-Commerce Holdings Bhd 2.500% 07/16/08 MYR 1.25 Eastern & Oriental Hotel 8.000% 07/25/11 MYR 2.10 EG Industries Berhad 5.000% 06/16/10 MYR 0.48 Equine Capital 3.000% 08/26/08 MYR 1.51 Greatpac Holdings 2.000% 12/11/08 MYR 0.20 Gula Perak Bhd 6.000% 04/23/08 MYR 0.53 Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.48 Insas Berhad 8.000% 04/19/09 MYR 0.66 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.36 Kosmo Technology Industrial Bhd 2.000% 06/23/08 MYR 1.00 Kretam Holdings Bhd 1.000% 08/10/10 MYR 1.43 Kumpulan Jetson Berhad 5.000% 11/27/12 MYR 0.50 LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.50 LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.50 Media Prima Bhd 2.000% 07/18/08 MYR 1.60 Mithril Bhd 8.000% 04/05/09 MYR 0.25 Mithril Bhd 3.000% 04/05/12 MYR 0.61 Nam Fatt Corporation Bhd 2.000% 06/24/11 MYR 0.42 Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.22 Pelikan International 3.000% 04/08/10 MYR 2.73 Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.79 Rhythm Consolidated Berhad 5.000% 12/17/08 MYR 0.13 Rubberex Corporation Berhad 4.000% 08/14/12 MYR 0.61 Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.57 Southern Steel 5.500% 07/31/08 MYR 2.36 Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.01 Tradewinds Corp. 2.000% 02/08/12 MYR 1.10 Tradewinds Plantation Berhad 3.000% 02/28/16 MYR 1.65 Wah Seong Corp. 3.000% 05/21/12 MYR 6.10 WCT Land Bhd 3.000% 08/02/09 MYR 4.66 Wijaya Baru Global Berhad 7.000% 09/17/12 MYR 0.76 YTL Cement Bhd 4.000% 11/10/15 MYR 2.07 SRI LANKA --------- Sri Lanka Govt 6.850% 04/15/12 LKR 74.49 Sri Lanka Govt 6.850% 10/15/12 LKR 71.73 Sri Lanka Govt 8.500% 01/15/13 LKR 70.25 Sri Lanka Govt 7.500% 08/01/13 LKR 72.76 Sri Lanka Govt 7.500% 11/01/13 LKR 74.16 Sri Lanka Govt 8.500% 02/01/18 LKR 70.90 Sri Lanka Govt 8.500% 07/15/18 LKR 70.35 Sri Lanka Govt 7.500% 08/15/18 LKR 65.02 Sri Lanka Govt 7.000% 10/01/23 LKR 56.94 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***