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 Wednesday, February 20, 2008, Vol. 9, Issue 36 Headlines A U S T R A L I A ALLENS MANAGEMENT: Placed Under Voluntary Liquidation ALLIED HEALTH: Undergoes Liquidation Proceedings BRIDGECORP HOLDINGS (AUSTRALIA): To Declare Dividend on March 8 BRIDGECORP HOLDINGS: to Declare First Dividend on March 8 CASTLE CANVAS: Members & Creditors to Meet on Feb. 29 CENTRO NP: S&P Holds CCC+ IDR Despite Parent's Debt Extension CENTRO PROPERTIES: Shares Rise After Refinancing Extension ENESCO GROUP: Plan Confirmation Hearing Moved to March 5 HUNSO PTY: Members & Creditors to Meet on March 7 INTERGRAPH BEST: Members to Receive Wind-Up Report on March 6 INTERGRAPH WHOLESALE: Members' Meeting Slated for March 6 PALITIME PTY: Liquidators to Give Wind-Up Report on January 24 SPYWING PTY: Liquidator to Present Wind-Up Report on March 3 SYMBION HEALTH: Primary Raises AU$958 Million from Share Offer TREVOR JONES: Commences Liquidation Proceedings URBAN ESSENTIALS: Members Opt to Shut Down Firm C H I N A , H O N G K O N G & T A I W A N ACXIOM CORP: Paying Six Cents Per Share Dividend on March 17 ACXIOM CORP: Increases Stock Repurchase Program by US$25 Million BANK OF CHINA: Gets Nod for CNY10-Billion Fund CHINA EASTERN: Aviation Authority Okays Regional Airline CHINA EASTERN: Receives Third Aircraft from EADS FRIENDS OF THE PHILAHARMONIA: Commences Liquidation Proceedings FOCAL_JM: Members' Final General Meeting Set for March 17 INTELSAT LTD: Fitch Pares Issuer Default Rating to CCC from B INTELSAT: S&P Chips Rating to B on Highly Leveraged Profile MEDISON GREATER: Creditors Meeting Fixed for February 28 PETROLEOS DE VENEZUELA: Fitch Sees Potential Concern PIONEER NATIONAL: Creditors Meeting Fixed for February 29 TERMSISSUE LIMITED: Members' Final Meeting Set for March 17 * Fitch Says China Oil Sector Credit Quality Better Than India's I N D I A CORE HEALTHCARE: Sushil Handa Resigns from Firm HINDUSTAN COPPER: Net Profit Slides to INR529MM in Oct-Dec '07 INDUSTRIAL DEV'T BANK: Dr. Heggade Resigns from Board QUEBECOR WORLD: U.S. Trustee Revises Creditors' Committee QUEBECOR WORLD: Wants to Pay Accrued Prepetition Commissions QUEBECOR WORLD: Creditors' Committee Taps Akin Gump as Counsel RPG LIFE: Changes Name to Brabourne Enterprises Ltd. SUN MICROSYSTEMS: Will Hire 300 Workers in Asia SYNDICATE BANK: Moody's Gives D+ Bank Financial Strength Rating TATA POWER: Strategic Electronics Arm Signs MOU with Thales I N D O N E S I A BANK MANDIRI: Denies Plan to Acquire Stake in Bank Internasional BANK PANIN: To Issue IDR600 Billion in March GAJAH TUNGGAL: Aims to Boost Sales by 15% in 2008 GARUDA: Plans US$200 Million Share Sale Next Year to Buy Planes GOODYEAR TIRE: Earns US$602 Million in Year Ended Dec. 31, 2007 KERTAS KRAFT: Indonesia to Offer Gas Project to Incitec Pivot J A P A N BOSTON SCIENTIFIC: Closes US$425MM Asset Sale to Avista Capital FURUKA: S&P Upgrades Long-Term Corporate Credit Rating to 'BB+' K O R E A HANAROTELECOM: SK Telecom Gets OK Takeover Signal from Watchdog KOREA EXPRESS: Posts KRW76-Billion Net Profit in 2007 KRISPY KREME: Standard Pacific Divests 6.1% Stake in Company M A L A Y S I A SHAW GROUP: Moody's Puts Ratings on Review for Possible Upgrade SINORA INDUSTRIES: Appoints Toyong as Member of Audit Committee SINORA INDUSTRIES: Earns MYR5.17 Million in Qtr. Ended Dec. 31 N E W Z E A L A N D CAFE CON LECHE: Fixes April 24 as Last Day to File Claims CLEAR CHANNEL: Earns US$938.5 Mil. in Year Ended Dec. 31, 2007 CLEAR CHANNEL: Extends Key Dates of Senior Notes Tender Offer D N BECKETT: Wind-Up Petition Hearing Set for April 1 INTERACTIONZ LTD: Subject to CIR's Wind-Up Petition MAINLINE PAINTERS: Creditors' Proofs of Debt Due on April 30 NORTHRIDGE ARCHITECTURE: Taps Fatupaito & McCloy as Liquidators OLTRARNO LTD: Faces CIR's Wind-Up Petition PREGGI BELLIES: Undergoes Liquidation Proceedings PRESERVATION & MAINTENANCE: Proofs of Debt Due on April 30 SILVERWORKS NZ: Wind-Up Petition Hearing Set for February 28 SWISS CHALET: Commences Liquidation Proceedings TE MANE NEHO: Wind-Up Petition Hearing Set for February 27 WAKEFIELD SERVICES: Undergoes Liquidation Proceedings WAYWARD PACIFIC: Taps Parsons & Kenealy as Liquidators P H I L I P P I N E S CENTRAL AZUCARERA: Incurs INR83-Mil. Net Loss in July-Dec. 2007 IPVG CORP: To Acquire 70% of MEGAMobile for PHP6.4 Million PRIME ORION: Earns PHP246.41 Mil. in Quarter Ended Dec. 31, 2007 S I N G A P O R E AAR CORP: To Expand Composites Business ENZER ELECTRONICS: Creditors' Meeting Set for February 22 FAITHFUL LOGISTICS: Court Enters Wind-Up Order ROY EASTERN: Court to Hear Wind-Up Petition on February 28 SCOTTISH RE: Eroding Credit Quality Spurs Moody's Ratings Review T H A I L A N D AMERICAN AXLE: To Construct Manufacturing Facility in Rayong AMERICAN AXLE: Net Loss Drops to US$25MM in Qrtr. Ended Dec. 31 * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= ALLENS MANAGEMENT: Placed Under Voluntary Liquidation ----------------------------------------------------- Allens Management Australia Pty. Limited's members agreed on January 9, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Frank Lo Pilato at RSM Bird Cameron Partners to facilitate the sale of its assets. The liquidator can be reached at: Frank Lo Pilato RSM Bird Cameron Partners 103-105 Northbourne Avenue, Level 1 Turner ACT 2612 Australia Telephone:(02) 6247 5988 About Allens Management Allens Management Australia Pty Limited provides business services. The company is located at Yarralumla, in ACT, Australia. ALLIED HEALTH: Undergoes Liquidation Proceedings ------------------------------------------------ Allied Health Industries Pty. Limited's members agreed on January 18, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Keiran William Hutchison and John Raymond Gibbons at Ernst & Young to facilitate the sale of its assets. The liquidators can be reached at: Keiran William Hutchison John Raymond Gibbons Ernst & Young Level 37, 680 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9248 5555 About Allied Health Allied Health Industries Pty. Limited is a distributor of medical, dental, and hospital equipment and supplies. The company is located at Baulkham Hills, in New South Wales, Australia. BRIDGECORP HOLDINGS (AUSTRALIA): To Declare Dividend on March 8 --------------------------------------------------------------- Bridgecorp Holdings (Australia) Pty. Limited will declare dividend for its priority creditors on March 8, 2008. Creditors are required to file their proofs of debt by Feb. 28, 2008, to be included in the company's dividend distribution. The company's liquidator is: Phil Carter c/o PricewaterhouseCoopers GPO Box 2650 Sydney, New South Wales 1171 Australia About Bridgecorp Holdings Bridgecorp Holdings (Australia) Pty Limited operates holding companies. The company is located at North Sydney, in New South Wales, Australia. BRIDGECORP HOLDINGS: to Declare First Dividend on March 8 --------------------------------------------------------- Bridgecorp Holdings Limited, which is in liquidation, will declare its first dividend on March 8, 2008. Creditors are required to file their proofs of debt by Feb. 21, 2008, to be included in the company's dividend distribution. The company's liquidator is: Phil Carter c/o PricewaterhouseCoopers GPO Box 2650 Sydney, New South Wales 1171 Australia About Bridgecorp Holdings Located at North Sydney, in New South Wales, Australia, Bridgecorp Holdings Limited is an investor relation company. CASTLE CANVAS: Members & Creditors to Meet on Feb. 29 ----------------------------------------------------- Castle Canvas Pty. Ltd. will hold a final meeting for its members and creditors at 10:00 a.m. on February 29, 2008. During the meeting, the company's liquidator, Peter Hicks at Forsythes, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Peter Hicks Forsythes Chartered Accountants Hunter Mall Chambers, Level 5 175 Scott Street, Newcastle Australia About Castle Canvas Castle Canvas Pty. Ltd. is a distributor of canvas and related products. The company is located at Wickham, in New South Wales, Australia. CENTRO NP: S&P Holds CCC+ IDR Despite Parent's Debt Extension ------------------------------------------------------------- Standard & Poor's Ratings Services said that Centro NP LLC's 'CCC+' issuer credit ratings remain on CreditWatch with developing implications, where they were initially placed on Jan. 3, 2008. This follows a series of announcements made by Centro Properties Group. The 'CCC+' senior-unsecured debt and 'CCC-' preferred stock ratings on Centro NP (formerly New Plan Excel Realty Property Trust) also remain on CreditWatch with developing implications. CNP updated the Australian equity market on the company's refinancing plans for its maturing debt and progress made on the "strategic review". Collectively, the announcements do not have an immediate effect on the Centro NP ratings. The announcements were: -- Debt facilities of US$1.3 billion (A$1.4 billion) associated with CNP's U.S. joint venture with Centro Retail Trust (CER; not rated) have been extended until Sept. 30, 2008. Extension beyond April 30, 2008 is subject to similar arrangements with CNP's Australian creditors, as detailed below. Additional development funding of US$80 million (AU$90 million) has also been provided to the CNP/CER U.S. joint venture; -- CNP completed its audit of the classification of current- to-non-current debt reported at June 30, 2007. As a consequence, the proportion of current debt increased to 72% of total debt, from 30% previously. The total debt of AU$3.6 billion in these accounts was accurate; and -- CNP and CER will announce their half yearly results to Dec. 31, 2007 on Feb. 28, 2008. "These announcements do not change the near-term probability that Centro NP could be put into default by its creditors, notwithstanding that the company's operating assets remain of good quality and that the extension of the debt facilities is a positive sign," Standard & Poor's credit analyst Craig Parker said. CNP also announced that its whole-of-group review, which may include a recapitalization, equity issuance, or acquisition of CNP, and/or the sale of the group's interest in its Australian and U.S. wholesale funds, is continuing. In addition, CNP announced that its AU$2.3 billion debt facilities under the Australian extension arrangement have been extended until April 30, 2008. At the same time, CNP's U.S. private-placement noteholders, who are collectively owed US$450 million (AU$505 million), have agreed to continue to act in accordance with an extension arrangement similar to the Australian extension arrangements. Mr. Parker added: "Given the uncertainty facing the group, we believe that the issuer rating could move either up or down from 'CCC+'. A further downgrade would be precipitated by Centro NP not being able to seek a further extension of its debt facility beyond April 30, 2008. There is also a prospect that some lenders within the CNP group may selectively rollover facilities that have recourse to favorable assets, while other lenders may seek repayment on April 30, 2008. The complex ownership structure of CNP and the different legal jurisdictions of Australia and the U.S. will figure in the bankers' decision process." "On the other hand, the ratings could be raised if CNP and Centro NP are able to implement a strategic plan that satisfies the bank lenders and private-placement noteholders and places the companies on a more sound financial footing. The reduction of outstanding debt levels is a critical factor. At the same time, the group has to manage the assets to retain their market value; this will signal to Standard & Poor's that Centro's credit quality has improved. The cash-flow impact of the increased interest margins on CNP's debt facilities (as agreed in mid-December 2007) and the reduced likelihood that the business model will continue in its current form following this renegotiation process mean that any ratings upgrade may be limited to the low 'BB' category." About Centro NP Centro NP LLC, headquartered in New York City, owns and operates 465 community and neighborhood shopping centers in 38 states. The company had assets of US$6.3 billion and equity of US$3.8 billion at Sept. 30, 2007. Centro Properties Group, headquartered in Melbourne, Victoria, Australia, is an Australian Listed Property Trust that specializes in the ownership, management and development of retail shopping centers in Australia, New Zealand and the USA with AU$26.6 billion in assets under management. CENTRO PROPERTIES: Shares Rise After Refinancing Extension ---------------------------------------------------------- Centro Properties Group's shares rose 16% after it was granted an extension until April 30 to refinance a US$3.9 billion of debts, courier Mail reports.Investors have regained confidence in the company because of the extension. Chief Executive Glenn Rufrano, according to the Mail, said in a statement that the company appreciates the cooperation of its lenders, which are comprised of 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. The company is facing difficulties refinancing debts because 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. 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. ENESCO GROUP: Plan Confirmation Hearing Moved to March 5 -------------------------------------------------------- The United States Bankruptcy Court for the Northern District of Illinois continued to March 5, 2008, at 10:00 a.m. the hearing to consider confirmation of Enesco Group, Inc. and its debtor- affiliates' Second Amended Chapter 11 Plan of Liquidation. The hearing will be held at 219 South Dearborn, Courtroom 613 in Chicago, Illinois. As reported in the Troubled Company Reporter on Jan. 23, 2008, the Court originally set Jan. 30, 2008, to consider confirmation of the Debtors' amended Chapter 11 plan. Overview of the Plan The Debtors related that the Plan proposes to liquidate the remaining assets of the Debtors and distribute the proceeds to the holders of the allowed claims. The principal source of the distributions will be: a) cash on hand as of the effective date of the Plan; b) proceeds from the Debtors' lender settlement; c) proceeds and tax refunds arising out of the resolution of the Hong Kong Tax Dispute; d) proceeds from the Contingency Litigation Agreement; and e) Litigation Trust Proceeds. Summary Treatment of Claims Under The Plan The Plan proposes that all holders of allowed administrative claims, allowed priority claims, other than the Internal Revenue Service, and the allowed non-tax priority claims will have their allowed claims paid in full on or about the effective date of the plan from the proceeds of the Lender Settlement. In addition, within 60 days of the effective date, general unsecured creditors will receive their pro-rate share of US$480,000 from the proceeds of the Lender Settlement. The Debtors say that general unsecured creditors are expected to receive 27% of their claims. Unsecured creditors will further be entitled to receive additional future distribution. Within the same time frame, the Internal Revenue Service will receive US$650,000 from the proceeds of the Lender Settlement and will be entitled to receive additional future distribution. Additional contributions, the Debtors say, are however, contingent on future recoveries by the Debtors and are not guaranteed. The Contingency Litigation Trust, the Debtors add, are also not guaranteed. Summary Creditor Treatment if Plan is Not Confirmed The Debtors tell the Court that if the Plan is not confirmed, then they are not substantively consolidated for purposes of the Plan or their cases are converted to ones under Chapter 7 of the Bankruptcy Code. At the conclusion of the Chapter 7 cases, administrative claims will still be paid in full. However, tax priority claims holders will only receive 4.9% of their claims. General Unsecured Creditors on the other hand, will receive nothing. The Debtors reveal that the primary reasons for the significantly smaller distributions under this scenario are: 1) the proceeds and other benefits from the: -- Lender Settlement; -- the Contingency Litigation Agreement; and -- the resolution of the Hong Kong Tax Dispute, will be substantially compromised or lost, resulting in a significantly smaller recovery by the Debtors' estates; and 2) there will be additional administrative costs if the Plan is not confirmed. About Enesco Group Based in Itasca, Illinois, Enesco Group, Inc. -- http://www.enesco.com/-- is a producer of giftware, and home and garden decor products. Enesco's product lines include some of the world's most recognizable brands, including Disney, Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane, Border Fine Arts, among others. Enesco distributes products to a wide array of specialty gift retailers, home decor boutiques and direct mail retailers, as well as mass-market chains. The company serves markets operating in Europe, particularly in the United Kingdom and France, as well in the Asia Pacific in Australia and Hong Kong. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors. Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. Adelman & Gettleman Ltd. represents the Official Committee of Unsecured Creditors as bankruptcy counsel. In schedules of assets and debts filed with the Court, Enesco disclosed total assets of US$61,879,068 and total debts of US$231,510,180. HUNSO PTY: Members & Creditors to Meet on March 7 ------------------------------------------------- Hunso Pty. Limited will hold a final meeting for its members and creditors at 10:00 a.m. on March 7, 2008. During the meeting, the company's liquidator, P. Ngan at Ngan & Co, will provide the attendees with property disposal and winding-up reports. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on July 11, 2006. The liquidator can be reached at: P. Ngan Ngan & Co 49 Market Street, Level 5 Sydney, New South Wales 2000 Australia About Hunso Pty. Hunso Pty. Limited provides accounting, auditing, and bookkeeping services. The company is located at Sydney, in New South Wales, Australia. INTERGRAPH BEST: Members to Receive Wind-Up Report on March 6 ------------------------------------------------------------- Matthew Malcolm Duggan, Intergraph Best (Vic.) Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on March 6, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Matthew Malcolm Duggan 60 Miller Street, Level 5 North Sydney Australia About Intergraph Best Intergraph Best (Vic.) Pty Ltd operates investment offices. The company is located at South Melbourne, in Victoria, Australia. INTERGRAPH WHOLESALE: Members' Meeting Slated for March 6 --------------------------------------------------------- Matthew Malcolm Duggan, Intergraph Wholesale Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on March 6, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Matthew Malcolm Duggan 60 Miller Street, Level 5 North Sydney Australia About Intergraph Wholesale Intergraph Wholesale Pty. Ltd. is a distributor of photographic equipments and supplies. The company is located at North Ryde, in New South Wales, Australia. PALITIME PTY: Liquidators to Give Wind-Up Report on January 24 -------------------------------------------------------------- Palitime Pty. Limited will hold a final meeting for its members and creditors at 10:00 a.m. on January 24, 2008. During the meeting, the company's liquidators, Antony de Vries and Riad Tayeh at de Vries Tayeh, will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: Antony de Vries Riad Tayeh c/o de Vries Tayeh 95 Macquarie Street, Level 3 Parramatta, New South Wales 2124 Australia About Palitime Pty. Palitime Pty. Limited provides miscellaneous personal services. The company is located at Parramatta, in New South Wales, Australia. SPYWING PTY: Liquidator to Present Wind-Up Report on March 3 ------------------------------------------------------------ Spywing Pty. Ltd. will hold a joint meeting for its members and creditors at 10:00 a.m. on March 3, 2008. During the meeting, the company's liquidator, P. Hillig at Smith Hancock, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: P. Hillig Smith Hancock 88 Phillip Street, Level 4 Parramatta, New South Wales 2150 Australia About Spywing Pty. Spywing Pty. Ltd., which is also trading as Action Fruit Supply, operates fruit and vegetable markets. The company is located at Sydney Markets, in New South Wales, Australia. SYMBION HEALTH: Primary Raises AU$958 Million from Share Offer -------------------------------------------------------------- In order to finance its AU$2.65-billion acquisition offer for Symbion Health Ltd., Primary Health Care has issued additional shares. According to News Limited, the company has raised AU$958 million as 80% of its existing institutional shareholders took up their entitlement under the offer. Primary Health disclosed that it seeks to raise AU$1.23 billion to fund the acquisition. It also launched an eight-for-five accelerated renounceable pro-rata entitlement offer at AU$5.40 per share to raise the money. Bloomberg reported that Primary has borrowed AU$534.3 million to fund its bid for Symbion. Primary Health successfully obtained last week majority control of Symbion after it obtained 53.81% acceptances to its AU$2.65-billion unconditional bid. About Primary Health Primary Health Care Limited -- http://www.primaryhealthcare.com.au/IRM/Content/default.htm-- is a service provider to a wide range of health care professionals who provide comprehensive care to patients. Additionally, Primary operates licensed and accredited day surgery facilities, specialist eye clinics and an automated pathology laboratory - SDS Pathology. About Symbion Health Headquartered in Melbourne, Australia, Symbion Health Limited -- http://www.symbionhealth.com/-- is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. The company also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. * * * On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). TREVOR JONES: Commences Liquidation Proceedings ----------------------------------------------- Trevor Jones & Partners Pty. Limited's members agreed on Dec. 14, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Christopher J. Palmer at O'Brien Palmer to facilitate the sale of its assets. The liquidator can be reached at: Christopher J. Palmer O'Brien Palmer 23-25 Hunter Street, Level 4 Sydney, New South Wales 2000 Australia About Trevor Jones Trevor Jones & Partners Pty Limited provides architectural services. The company is located at Leichardt, in New South Wales, Australia. URBAN ESSENTIALS: Members Opt to Shut Down Firm ----------------------------------------------- Urban Essentials International Pty. Ltd.'s members agreed on January 15, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Roderick Mackay Sutherland at Jirsch Sutherland to facilitate the sale of its assets. The liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Urban Essentials Urban Essentials International Pty. Ltd. is a distributor of women's, children's, and infants' clothing and accessories. The company is located at Abbotsford, in Victoria, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ACXIOM CORP: Paying Six Cents Per Share Dividend on March 17 ------------------------------------------------------------ Acxiom(R) Corporation's board of directors has declared a quarterly cash dividend of six cents per share payable on March 17 to shareholders of record as of the close of business on Feb. 25, 2008. While Acxiom intends to pay regular quarterly dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the board at its discretion. Headquartered in Little Rock, Arkansas, Acxiom Corporation, (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration (CDI) technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States and Europe, and in Australia, China and Canada. * * * As reported in the Troubled Company Reporter on Dec. 17, 2007, Moody's Investors Service confirmed Acxiom's Ba2 corporate family rating and assigned a negative rating outlook, concluding a review for possible downgrade initiated on May 17, 2007, following the company's announcement that it had entered into a definitive agreement to be acquired by Silver Lake and ValueAct Capital for US$3 billion. ACXIOM CORP: Increases Stock Repurchase Program by US$25 Million ---------------------------------------------------------------- Acxiom(R) Corporation's board of directors has authorized a US$25 million increase in its stock repurchase program. On Oct. 26, 2007, the company disclosed a 12-month, US$75 million program whereby the company would repurchase its common stock in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. Since the inception of the program, the company has purchased approximately 4.175 million shares for a total purchase price of US$50.6 million. At a meeting Feb. 13, 2008, the board voted to increase the authorization to US$100 million. The repurchase program may be suspended or discontinued at any time. Headquartered in Little Rock, Arkansas, Acxiom Corporation, (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration (CDI) technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States and Europe, and in Australia, China and Canada. * * * As reported in the Troubled Company Reporter on Dec. 17, 2007, Moody's Investors Service confirmed Acxiom's Ba2 corporate family rating and assigned a negative rating outlook, concluding a review for possible downgrade initiated on May 17, 2007, following the company's announcement that it had entered into a definitive agreement to be acquired by Silver Lake and ValueAct Capital for US$3 billion. BANK OF CHINA: Gets Nod for CNY10-Billion Fund ---------------------------------------------- China Securities Regulatory Commission has approved Bank of China Investment Management Co. Ltd.'s new open-ended stock fund valued at around CNY10 billion, Thomson Financial News reports. Bank of China Investment Management is the fund-management unit of the Bank of China Ltd. The move is aimed at "increasing capital flows into the local bourse and giving a boost to the stock market," the report says. The fund was one of two with a total value of CNY19.5 billion that had been approved by the country's securities regulator, Bank of China Chairman Xiao Gang said. Beijing-based Bank of China Limited -- http://www.bank-of- china.com/en/static/index.html -- is a Chinese bank that has presence in all major continents. The company offers financial services through itsglobal network of over 560 overseas offices in 25 countries and regions. In Hong Kong and Macao, Bank of China is one of the local note issuing banks. Traditional commercial banking constitutes the majority of Bank of China's business, which is composed of corporate banking, retail banking and banking with financial institutions. The company has branches in Singapore, Japan, Kazakhstan, London, Grand Cayman, and the United States. Moody's Investors Service gave the bank a bank financial strength rating of D- on May 4, 2007. The Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed the bank's D individual rating on Dec. 14, 2006. CHINA EASTERN: Aviation Authority Okays Regional Airline -------------------------------------------------------- China Eastern Airlines Corporation Limited and China Aviation Industry Corp. I will soon fly the skies together as "Xingfu Airlines" after Civil Aviation Administration of China approved their joint venture for a regional airline, various reports say. State-owned aircraft maker China Aviation will hold a 60% stake in the new company and China Eastern will hold the remainder, China Business News reports. The joint venture has a registered capital of one billion yuan (US$139 million) and will begin operation in the first half of 2008, Antara News shares, citing an earlier disclosure. Fifty Chinese-made Xinzhou-60 Turboprops will serve Xingfu Airlines, which means "happiness" in Chinese, during the first stage and the fleet size will be expanded to 100 once 50 ARJ21 jets are put into use. The approval of the new carrier is rare as aviation agency has said that it would stop receiving applications to set up airline companies and tighten the approval of submitted applications until 2010, ShanghaiDaily says. Meanwhile, Singapore Airlines Ltd. told ShanghaiDaily that it has no plans to renew its unsuccessful bid for China Eastern, adding that Singapore Airlines is preparing ways to cope with a potential global economic slowdown. China Eastern's shareholders rejected a bid by Singapore Airlines in early January. 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-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA EASTERN: Receives Third Aircraft from EADS ------------------------------------------------ China Eastern Airlines Corporation Limited took delivery of the third of its three Airbus A300-600Fs at EADS EFW's facility in Dresden, Germany, La Societe News reports. According to the report, the airframe bearing the Manufacturer Serial Number 525 was formerly operated by the Chinese airline itself as a passenger aircraft. The conversion into freighter configuration started in late September 2007, the report recounts. The first and second A300-600 aircraft bearing the MSN 532 and 521 were both converted in 2007, the report relates. Dr. Andreas Sperl, president and CEO of EADS EFW, told the news agency that with the three converted planes, China Eastern will perfectly meet the increasing needs of the prospering Chinese airfreight market. About EADS EADS is a global leader in aerospace, defence and related services. In 2006, EADS generated revenues of ? 39.4 billion and employed a workforce of about 116,000. The Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and EADS Astrium, the European leader in space programmes from Ariane to Galileo. Its Defence & Security Division is a provider of comprehensive systems solutions and makes EADS the major partner in the Eurofighter consortium as well as a stakeholder in the missile systems provider MBDA. EADS also develops the A400M through its Military Transport Aircraft Division. 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. FRIENDS OF THE PHILAHARMONIA: Commences Liquidation Proceedings --------------------------------------------------------------- Friends of the Philaharmonia of the nations, HK Limited's members agreed January 30, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Pui Chui Wing to facilitate the sale of its assets. The liquidator can be reached at: Pui Chui Win 501A Kin Wing Commercial Building 24-30 Kin Wing Street Tuen Mun, N.T. FOCAL_JM: Members' Final General Meeting Set for March 17 --------------------------------------------------------- Jacques Marie-Paul Mahul, Focal_JM Lab Asia Limited's appointed estate liquidator, will meet with the company's members on March 17, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Jacques Marie-Paul Mahu 108 Rue De L'Avenir B.P. 374, 42353 la Talaudiere Cedex France INTELSAT LTD: Fitch Pares Issuer Default Rating to CCC from B ------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of Intelsat, Ltd. to 'CCC' from 'B'. In addition, Fitch has removed Intelsat from Rating Watch Negative, where the ratings were placed on June 20, 2007. Fitch is also withdrawing all existing ratings of Intelsat and its subsidiaries. These ratings are downgraded and withdrawn: Intelsat, Ltd. -- Issuer Default Rating to 'CCC' from 'B'; -- Senior unsecured notes to 'CC/RR6' from 'CCC/RR6'. Intelsat (Bermuda), Ltd. (debt transferred to Intelsat Jackson Holdings) -- IDR to 'CCC' from 'B'; -- Senior unsecured guaranteed notes to 'B-/RR2' from 'BB-/RR2'; -- Guaranteed Term Loan to 'B-/RR2' from 'BB-/RR2'; -- Senior unsecured non-guaranteed notes to 'CCC-/RR5' from 'CCC+/RR6'. Intelsat Intermediate Holding Company, Ltd. (Int. Holdco) -- IDR to 'CCC' from 'B'; -- Senior unsecured discount notes to 'CCC-/RR5' from 'B-/'RR5'. Intelsat Subsidiary Holding Company, Ltd. (Sub Holdco) -- IDR to 'CCC' from 'B'; -- Senior secured credit facilities to 'B/RR1' from 'BB/RR1'; -- Senior unsecured notes to 'B-/RR2' from 'BB-/RR2'. Intelsat Corporation (f/k/a PanAmSat Corporation) -- IDR to 'CCC' from 'B'; -- Senior secured credit facilities to 'B/RR1' from 'BB/RR1'; -- Senior secured notes to 'B/RR1' from 'BB/RR1'; -- Senior unsecured notes to 'CCC+/RR3' from 'B/RR4'. Fitch did not rate the $4.96 billion acquisition debt, represented by the senior bridge loan and PIK election bridge loan, assigned to and assumed by Intelsat (Bermuda). Fitch's action follows the acquisition by funds controlled by private equity firm BC Partners and certain other investors in a highly leveraged transaction. The transaction increased debt by approximately $3.7 billion, resulting in pro forma debt-to- EBITDA of approximately 9.4 times based on the last 12 months EBITDA as of Sept. 30, 2007. Intelsat has sales offices in Australia, China, Japan, and Singapore. INTELSAT: S&P Chips Rating to B on Highly Leveraged Profile ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. The outlook is stable. Concurrent with the new bridge financing utilized in the acquisition of the company by an investor group led by BC Partners, Intelsat used the accordion feature under its Intelsat Corp. credit facility to issue a $150 million incremental term loan B-2. In light of this fact, Standard & Poor's also lowered the rating on the company's senior secured credit facility to 'BB-', while leaving the recovery rating unchanged at '1', indicating expectations of very high (90%-100%) recovery in the event of a payment default to this new term loan. "The downgrade reflects the significant increase in leverage resulting from the leveraged buyout," said Standard & Poor's credit analyst Naveen Sarma. "It is only the fundamentally sound business profile that enables Intelsat to warrant the 'B' corporate credit rating in light of this excessive leverage." The ratings on Intelsat Ltd. reflect a very highly leveraged financial profile that allows for little financial flexibility over the medium term and overwhelms very attractive business characteristics. A strong business risk profile reflects the company's global scale, strong geographic diversification, and a strong revenue backlog that provides for significant cash flow visibility. This enables the company to support such high levels of leverage at this rating level. Intelsat has sales offices in Australia, China, Japan, and Singapore. MEDISON GREATER: Creditors Meeting Fixed for February 28 -------------------------------------------------------- The members of Medison Greater China Limited will have their final general meeting at 10:30 a.m. on February 28, 2008, at 1301-02, 13th Floor, Kwan Chart Tower, 6 Tonnochy Road, Wanchai, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The Hong Kong Gazette did not disclose the liquidator's name. PETROLEOS DE VENEZUELA: Fitch Sees Potential Concern ---------------------------------------------------- Fitch Ratings said Feb. 14, 2008, that it views a British court order to freeze up to US$12 billion of Petroleos de Venezuela S.A.'s (PDVSA; rated 'BB-'with a Negative Outlook by Fitch) worldwide assets as a potential concern for the Venezuelan oil firm partnered refineries, HOVENSA and Merey Sweeny Limited Partnership. While day to day operations have not currently been impacted, the potential exists for a weakening in their credit quality and financial flexibility. Fitch will continue to monitor the current situation for any potential rating impact. Fitch currently rates both, HOVENSA's and Merey Sweeny's, debt at 'BBB' with a Stable Rating Outlook. Fitch's concerns related to HOVENSA stem from HOVENSA's exposure to crude supply risk from Petroleos de Venezuela related to terms in the crude supply agreement. Currently, of the 500,000 barrels per day processed at HOVENSA, PDVSA supplies around 270,000 barrels per day of Mesa and Merey heavy crude oil to the refinery. Since the heavy crude is purchased by HOVENSA at St. Croix, U.S. Virgin Islands, the oil is potentially exposed to confiscation risk before HOVENSA takes title to the crude. Should the crude supply agreement be amended to take ownership of the crude in Venezuela, HOVENSA may need to make additional investments in working capital to purchase and store additional heavy oil so as not to affect daily operations. Currently, the Venezuelan oil firm sells crude oil to HOVENSA either directly from the tankers or from the storage facilities held at the refinery complex in St. Croix. While Fitch notes that there exists a potential for increased levels of working capital, given HOVENSA's low leverage and ready access to a US$400 million long-term committed borrowing facility, Fitch believes the company has the flexibility to deal with this change. In the case of Merey Sweeny, the off-take agreement stipulates that PDVSA sells crude oil to Conoco Phillips at Puerto la Cruz port in Venezuela. As a result, Fitch views the risk of crude supply disruption to Merey Sweeny associated with the court order with less of a concern. While the risks differ between projects based on when ownership of the crude is transferred, both of the Petroloes de Venezuela partnered refineries remain exposed to reduced Venezuelan crude deliveries. The recent court action has increased the risk of sale of Venezuelan crude to the United States. Fitch continues to believe that U.S. refineries remain the natural and economic home for this crude oil. Nonetheless, Fitch views the potential for crude supply disruption to the U.S. with concern. In the case of a supply disruption, the refineries have the ability to procure alternate crude, and as in the past they have successfully secured alternative crude supplies. However, the timeliness of alternative crude supply procurement could have economic implications. HOVENSA and Merey Sweeny, in the past have made substantial distributions to the equity partners; US$600 million in 2007 by HOVENSA and US$292 million, as of September 2007, by Merey Sweeny. Going forward, changes in distribution policies remain a potential source of concern should either of the projects move to accelerate distributions ahead of any future court orders. Currently, Fitch understands that dividends from HOVENSA to PDVSA are deposited into a European Bank and that distributions from Merey Sweeny to Petroleos de Venezuela are deposited into an U.S. bank. HOVENSA LLC Situated on the island of St. Croix, HOVENSA is one of the world's largest refineries, with capacity to process up to 500,000 barrels per day of crude oil. The complex benefits from a 58,000-barrels-per-day delayed coking unit with capacity to process the short residue derived from heavy and medium sour crude oil into intermediate products that are further refined into motor fuels and other finished products. HOVENSA is a limited liability company indirectly owned 50% by Hess and 50% by PDVSA. Merey Sweeny Ltd. Partnership ConocoPhillips and Petroloes de Venezuela formed a partnership in 1998 to build, own, operate and maintain certain facilities and improvements to ConocoPhillips' existing refinery at the Sweeny complex near Sweeny, Texas. The project consists of a vacuum distillation unit, a delayed-coker, and related facilities that give the refinery the ability to process an average of 182,000 barrels per day of heavy sour crude. The refinery is an integral part of ConocoPhillips' flagship petrochemicals complex situated near Sweeny, Texas. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. The oil firm is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. PIONEER NATIONAL: Creditors Meeting Fixed for February 29 --------------------------------------------------------- The members of Pioneer National (fashion Outlet) Limited will have their final general meeting at 10:30 a.m. on Feb. 29, 2008, at Room 203, Duke of Windsor Social Service Building, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The Hong Kong Gazette did not disclose the liquidator's name. TERMSISSUE LIMITED: Members' Final Meeting Set for March 17 ----------------------------------------------------------- Thomas Andrew Corkhill, Termsissue Limited's appointed estate liquidator, will meet with the company's members on March 17, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Thomas Andrew Corkhill 18th Floor, Gloucester Tower The Landmark 15 Queens Road Central Hong Kong * Fitch Says China Oil Sector Credit Quality Better Than India's ---------------------------------------------------------------- Fitch Ratings has commented in a special report comparing the oil sectors in China and India that the relatively better credit quality of the Chinese oil sector reflects China's larger economy, coupled with its more industrialised economic structure, relatively well-developed infrastructure, and more integrated business portfolio. Also, the agency notes that the Chinese government (Long-term foreign currency Issuer Default Rating of 'A+'/Stable) is rated higher than the Government of India ('BBB-'/Stable). "Fitch's rating differentials between the Chinese oil companies and the Indian counterparts reflect the former's fundamental operational strength as well as the Chinese government's stronger ability to provide support," said Pekka Laitinen, co-head of Fitch's Asia-Pacific Energy and Utilities team. "Further economic development in India, together with successful business diversification, will be needed in order for the Indian oil sector to achieve a similar credit quality to the Chinese oil sector," added Mr. Laitinen. In the special report titled "Oil Sector Comparison: China and India", Fitch notes that the oil sectors in both China and India have similarities in many aspects. Both are tightly controlled by their respective governments under similar regulatory environments, resulting in high entry barriers. Given the strong demand growth for oil products in the both countries, both sectors also demonstrate a strong intention to secure additional oil resources via acquisition of overseas oil assets. Additionally, the financial risk profiles of most of the major oil players in China and India remain comparable. Despite this, China's much larger oil market, the major Chinese oil companies' more integrated business portfolio and China's net deficit position for refined oil products (versus India's net surplus position) emerge as the main difference between both sectors, resulting in overall better credit quality of the former. ========= I N D I A ========= CORE HEALTHCARE: Sushil Handa Resigns from Firm ----------------------------------------------- Core Healthcare Ltd., in a filing with the Bombay Stock Exchange, disclosed, that Sushil Handa has has disassociated himself from the company. Mr. Handa holds an executive/management position, and is both a director and promoter of the company. The company understand from Mr. Handa that he does not have the ability to influence or control the decisions of the company by virtue of his holding or by any other means, the filing states. Mr. Handa has served as managing director until the year 2002 and as chairman and board member until March 8, 2005. The board has accepted his resignation upon receipt of his resignation letters from both positions dated October 18, 2002 and March 8, 2005. Headquartered in Ahmedabad, India, Core Healthcare Limited is an international multi-product healthcare company with a presence in intravenous solutions, medical disposables, injectables, orals and formulations. The company's businesses are divided mainly into Fluids, Disposables and Formulations. The company is present in more than 60 countries, and is a major supplier to international agencies, hospitals and other customers. The company's long-term and medium-term debt carry ICRA Ltd.'s LD rating. LD is the lowest-credit-quality rating assigned by ICRA. The rated instrument has very low prospect of recovery. HINDUSTAN COPPER: Net Profit Slides to INR529MM in Oct-Dec '07 -------------------------------------------------------------- Hindustan Copper Limited's net profit for the three months ended Dec. 31, 2007, plunged to INR529.26 million from the INR 1.32 billion earned in the same quarter in 2006. The bottom line dipped even with increased revenues -- INR5.05 billion in Oct.-Dec. 2007, compared to 2006's INR4.81 billion. The increase in income, however, was more than offset by the rise in expenses. From the INR3.37 billion incurred in the quarter ended Dec. 31, 2007, the company's operating expenses for the current quarter under review jumped to INR4.35 billion, leaving the company with an operating profit of INR701.84 million (INR1.43 billion in 2006). The company also booked interest of INR52.18 million, depreciation of INR51.79 million and INR68.61 million in 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?282f The company has received a Capital Restructuring Package vide order No 1(19)/2004-Met III dated July 30, 2007 from the Govt of India, Ministry of Mines. The accounting effect of the Restructuring Package would be given once the statutory and legal formalities are completed. Based in Kolkata, India, Hindustan Copper Limited -- http://www.hindustancopper.com/-- is an undertaking of the Government of India. The company is the sole fully integrated copper manufacturer in India. On November 18, 2005, CRISIL Ratings upgraded its outstanding rating on the non-convertible bond program of Hindustan Copper Limited to 'C' from 'D'. Since July 2004, Hindustan Copper has met its interest obligations on the rated instrument on time. The upward revision in the rating is in line with CRISIL's policy of revising ratings, post-default only after monitoring timely debt servicing for a year. Hindustan Copper, however, continues to default on its interest obligations relating to its unrated debt. INDUSTRIAL DEV'T BANK: Dr. Heggade Resigns from Board ----------------------------------------------------- Dr. D. Veerendra Heggade has resigned from hi director post at the Industrial Development Bank of India Ltd. effective Feb. 11, 2008, a filing with the Bombay Stock Exchange states. According to the BSE filing, Dr. tendered his resignation due to his preoccupation with social and religious commitments as head of Dharmasthala. Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, the financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * As part of the application of Moody's Investors Service's refined joint default analysis and updated bank financial strength rating methodologies, the rating agency, on April 24, 2007, affirmed Industrial Development Bank of India's BFSR at D-. Moody's also maintains the bank's Foreign Currency Deposit Rating at Ba2. QUEBECOR WORLD: U.S. Trustee Revises Creditors' Committee --------------------------------------------------------- Diana G. Adams, the United States Trustee for Region 2, changed Abitibi-Consolidated Inc. to Abitibi Consolidated Sales Corp. The Committee is now composed of: (1) Wilmington Trust Company Attn: Suzanne Macdonald 520 Madison Avenue, 33rd floor New York, NY 10022 Tel: (212) 415-0500 (2) Pension Benefit Guaranty Corp. Attn: Suzanne Kelly 1200 K Street, NW Washington, DC 20005 Tel: (212) 326-4070 x6367 (3) The Bank of New York Mellon Attn: David M. Kerr 101 Barclay Street - 8 West New York, NY 10286 Tel: (212) 815-5650 (4) MEGTEC Systems Inc. Attn: Gregory R. Linn 830 Prosper Rd. De Pere, WI 54115 Tel: (920) 337-1568 (5) Abitibi Consolidated Sales Corp. Attn: Madeleine Fequiere 1155 Metcalfe Street, Suite 800 Montreal, Quebec H3B 5H2 CANADA Tel: (514) 394-3638 (6) International Paper Company Attn: Steve K. Dunn 6285 Tri-Ridge Blvd. Loveland, OH 45140 Tel: (513) 965-2943 (7) Cellmark Paper, Inc. Attn: Dominick J. Merole 300 Atlantic Street Stamford, CT 06901 Tel: (203) 251-9026 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. They obtained creditor protection until Feb. 20, 2008. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay expires on Feb. 20, 2008. (Quebecor World Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008 Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Wants to Pay Accrued Prepetition Commissions ------------------------------------------------------------ Quebecor World Inc. and its affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's approval to pay accrued prepetition commissions due and owing as of Feb. 1, 2008, to their sales representatives. Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, relates that the Debtors' sales representatives are located in plants or in regional offices throughout North America, Europe and Latin America, and customers are able to coordinate simultaneous printing throughout the Debtors' network through a single sales representative. The Debtors' sales representatives are compensated primarily on a commission basis and are paid from 30 to 90 days after a sale actually occurred. Accordingly, the sales representatives may go for long periods without receiving commissions, at which point they may be entitled to several months worth of commissions. According to Mr. Canning, the Debtors owe 59 sale representatives, as of February 1, US$1,792,993. Of this amount, US$1,234,641 reflects amounts in excess of US$10,950 per employee, with the proposed prepetition payments per employee ranging from US$933 to US$117,868. Mr. Canning says that if the Debtors are unable to immediately make the payments, these commissioned employees may seek alternative employment, which would seriously hamper the Debtors' reorganization efforts. While these payments sought to be authorized exceed the US$10,950 priority limitation per employee contained in Section 507(a)(4) of the Bankruptcy Code, Mr. Canning asserts that these payments are authorized by Section 105 because they are critical to the maintenance of a strong and dedicated work force. The Debtors say they will make available to the Office of the United States Trustee and counsel to the Official Committee of Unsecured Creditors a schedule showing for each employee scheduled to receive sales commissions on Feb. 1, 2008, the amount of payment and the amount of additional compensation previously received by the employee on account of 2007. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. They obtained creditor protection until Feb. 20, 2008. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay expires on Feb. 20, 2008. (Quebecor World Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008 Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Creditors' Committee Taps Akin Gump as Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Quebecor World Inc.'s Chapter 11 cases seeks permission from the U.S. Bankruptcy Court for the Southern District of New York to retain Akin Gump Strauss Hauer & Feld LLP as its counsel, nunc pro tunc to Jan. 31, 2008. The Committee believes that Akin Gump possesses extensive knowledge and expertise in the areas of law relevant to bankruptcy cases, and that Akin Gump is well qualified to represent the Committee in the Debtors' chapter 11 cases. Akin Gump was founded by Robert S. Strauss and Richard A. Gump in 1945 and is one of the world's largest firms, providing legal services to their clients on a 24/7 basis. Akin Gump has 1,050 lawyers and professionals, and has offices in 15 cities worldwide. Akin Gump has been involved in various chapter 11 cases including: (a) Allegiance Telecom, Inc.; (b) American Commercial Lines LLC; (c) ATA Holdings Corp.; (d) Collins & Aikman Corporation; and (e) Delta Air Lines. As counsel to the Committee, Akin Gump will: (a) advise the Committee with respect to its rights, duties and powers in the Debtors' chapter 11 cases; (b) assist and advise the Committee in its consultations with the Debtors relative to the administration of the chapter 11 cases; (c) assist the Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and in negotiating with holders of claims and equity interests; (d) assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and of the operation of the Debtors' businesses; (e) assist the Committee in its analysis of, and negotiations with, the Debtors or any third party concerning matters related to the assumption or rejection of certain leases of non-residential real property and executory contracts, asset dispositions, financing of other transactions and the terms of one or more plans of reorganization for the Debtors and accompanying disclosure statements and related plan documents; (f) assist and advise the Committee as to its communications to the general creditor body regarding significant matters in the Debtors' chapter 11 cases; (g) represent the Committee at all hearings and other proceedings before the Court and other courts; (h) review and analyze applications, orders, statements of operations and schedules filed with the Court and advise the Committee for any course of action to be taken; (i) advise and assist the Committee with respect to any legislative, regulatory or governmental activities; (j) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interests and objectives; (k) assist the Committee in its review and analysis of the Debtors' various commercial agreements; (l) assist the Committee in developing and implementing protocols for the coordination of the chapter 11 cases with the restructuring cases filed on behalf of the Debtors in Canada, and coordinating with counsel in those cases; (m) prepare, on behalf of the Committee, any pleadings, including motions, memoranda, complaints, adversary complaints, objections and comments; (n) investigate and analyze any claims against the Debtors' non-debtor affiliates; and (o) perform other legal services as may be required by the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code, Bankruptcy Rules or other applicable law. Akin Gump will charge the Committee based on its hourly rates: Billing Category Range ---------------- ----- Partners US$460 - US$1,050 Special Counsel and Counsel US$250 - US$810 Associates US$175 - US$580 Paraprofessionals US$75 - US$250 The current hourly rates of attorneys who will have primary responsibility for providing services to the Committee are: Attorney Hourly Rate -------- ----------- Ira S. Dizengoff US$825 David H. Botter US$775 Shuba Satyaprasad US$580 Alexis Freeman US$530 Ryan C. Jacobs US$500 Joanna F. Newdeck US$460 Christina M. Moore US$410 Brad M. Kahn US$325 Ira S. Dizengoff, Esq., a member of Akim Gump Strauss Hauer & Feld LLP, assures the Court that his firm does not hold any adverse interest and is not related to the Debtors, their creditors, or any parties-in-interest; and that his firm is capable of fulfilling its fiduciary duty to the Committee and the unsecured creditors that the Committee represents. "Based upon information available to me, I believe that Akin Gump is a 'disinterested person' within the meaning of the Bankruptcy Code," Mr. Dizengoff says. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007,it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. They obtained creditor protection until Feb. 20, 2008. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay expires on Feb. 20, 2008. (Quebecor World Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008 Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. RPG LIFE: Changes Name to Brabourne Enterprises Ltd. ---------------------------------------------------- RPG Life Sciences Ltd. has informed the Bombay Stock Exchange that the name of the company is changed to "Brabourne Enterprises Ltd." The change in name is a part of implementation of the Scheme of Arrangement, which has become effective from Feb. 5, 2008. As previously reported by the Troubled Company Reporter-Asia Pacific, the Scheme was entered into by RPG Life, RPG Pharmaceuticals Ltd., Instant Holdings Ltd. and Instant Trading and Investment Company Ltd. The Record Date for the purpose of the Scheme is Feb. 22. Among others, the Scheme provides that: a) The entire pharmaceutical business of the company stands sold to RPG Pharmaceuticals on a going concern basis effective from April 2, 2007, at a consideration of INR46 crore. b) The entire investments held by the company (excluding US$64 bonds) is sold to Instant Holdings effective from April 1, 2007, at a consideration of INR53 crore. Headquartered in Mumbai, India, RPG Life Sciences Ltd., Brabourne Enterprises Ltd. -- http://www.rpglifesciences.com/-- is a full spectrum, world class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of a default in debt servicing obligations towards institutional investors. SUN MICROSYSTEMS: Will Hire 300 Workers in Asia ----------------------------------------------- Sun Microsystems Inc. will hire 300 new employees over the next three months to boost its operational strength in the Asia- Pacific region, various reports say. The prospected workers will help cope with an anticipated increase in the company's businesses in South Asia, India and China. The Asia-Pacific region, including Japan, contributes 17% to the California-based company's global revenues. "If we take a year, we will miss the growth," Marketing Director Chong Soon Cheong, as quoted by the The Business Times. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, Singapore, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. SYNDICATE BANK: Moody's Gives D+ Bank Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service, on Feb. 18, 2008, assigned a bank financial strength rating of D+ to Syndicate Bank, as well as A3 long-term and Prime-1 short-term global local currency deposit ratings and Ba2 long-term and Not Prime short-term foreign currency deposit ratings. The outlook on all ratings is stable. This is the first time Moody's has assigned ratings to Syndicate Bank. The D+ BFSR -- which translates into a Baseline Credit Assessment of Ba1 -- reflects the bank's relatively modest but growing franchise as one of India's largest mid-size public- sector banks, as well as its sound financial position. The rating also takes into account the bank's improving financial fundamentals as it expands its range of business activities and customer base, as well as its strong presence in the southern part of India. The ratings assigned also capture Syndicate Bank's good profitability, improving asset quality and satisfactory provisioning coverage. Funding is mainly geared towards customer deposits, providing the bank with a comfortable liquidity profile, although high-cost bulk deposits dominate the bank's customer deposit base. Concurrently, Moody's also notes that, similar to other PSBs, Syndicate Bank is faced with a heightened interest rate risk through its considerable portfolio of fixed-rate government securities. The bank's capitalisation is currently adequate, although additional capital funds may be needed to support the 20% balance-sheet growth expected over the medium term. The ratings of Syndicate Bank also consider the challenge of enhancing its fee-based income, protecting its interest margins as well as expanding its commercial and retail franchise further across the eastern and northern areas of India within a fiercely competitive environment. Maintaining good asset quality by controlling slippages and raising fresh capital funds to fund future growth are also factors that could adversely affect the bank's ratings if not properly managed. The A3/Prime-1 global local currency deposit ratings additionally incorporate Moody's assessment of a very high probability that systemic support would be extended to the bank should the need arise based on its majority government ownership. Therefore, these ratings are based not only on Syndicate Bank's Ba1 Baseline Credit Assessment but also on India's A1 local currency deposit ceiling -- as support provided, resulting in a four-notch uplift from the Baseline Credit Assessment. The bank's Ba2/Not Prime foreign currency deposit ratings are constrained by the corresponding sovereign ceilings for India, Moody's concludes. Syndicate Bank is headquartered in Bangalore and had total assets of INR966.9 billion (US$24.2 billion) at the end of December 2007. TATA POWER: Strategic Electronics Arm Signs MOU with Thales ----------------------------------------------------------- Tata Power Company Ltd.'s Strategic Electronics Division has signed a Memorandum of Understanding in the area of optronics with The Thales Group, a French electronics firm. Pursuant to the MoU, Tata Power SED and Thales agree to cooperate to offer optronics solutions for Indian defense market including the MMRCA programme and further programs on existing or future airborne platforms. The agreement will allow both companies to develop transfer of technologies to implement local contents and meet the Offset requirements of Indian MOD. The growing importance of imagery in decision-making processes has made optronics a vital component of all defense and security systems. On land, at sea or in the air, in peacetime, crisis or war, Thales optronics technologies offer unparalleled day/night detection, reconnaissance, and target identification and weapon guidance capabilities while guaranteeing complete discretion. Thales' offer particularly includes the Damocles pod that enables the use of guided weapons either alone or as part of a cooperative deployment, and the Areos air reconnaissance system. The Areos pod is an airborne reconnaissance electro optical system for tactical and strategic missions. Thales solutions are fully compatible with many platforms including French and Russian airplanes. Rahul Chaudhry, Chief Executive Officer of Tata Power SED, noted that "Large defense program like MMRCA with Offsets have created opportunities for Indian companies with Defense Systems experience. Tata Power SED will leverage this partnership with Thales, a world leader in Defense Systems, to serve our customers better." The Thales Group is reportedly a major French electronics company delivering mission-critical information systems and services for the aerospace, defense, and security markets. Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. S&P said the outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds have been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's has downgraded its senior unsecured bond rating to B1 from Ba2. Moody's said the ratings outlook is negative. ================= I N D O N E S I A ================= BANK MANDIRI: Denies Plan to Acquire Stake in Bank Internasional ---------------------------------------------------------------- PT Bank Mandiri denied rumors that it planned to acquire a 56% stake in PT Bank Internasional Indonesia, Antara News reports. According to Antara, Bisnis Indonesia wrote that Bank Mandiri had expressed its interest last week to Singapore government arm Temasek Holdings, which controls BII. Temasek, through Fullerton Financial Holdings, holds a 75% stake in the Sorak Consortium, which in turn owns 56.13% of BII shares, the report relates. The report points out that Mansyur Nasution, bank investor relations head, said they are not thinking about buying Bank Internasional, rather their focus is to buy Bank Sinar Harapan Bali. This company move will give way for Mandiri to expand its micro financing business on the resort island of Bali. 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 Aug. 2, 2007, Moody's Investors Service has placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Mandiri on review for possible upgrade. The detailed ratings are: * Ba3/Ba3 foreign currency senior/subordinated debt and B2 foreign currency long-term deposit ratings were placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected -- these ratings carry a stable outlook. The bank also carries Fitch Ratings: Long- term foreign and local currency Issuer Default ratings at 'BB-', Short-term rating at 'B', National Long-term rating at AA(idn)', Individual at 'D', and Support at '4'. Fitch said the Outlook for the ratings was revised to positive from stable. BANK PANIN: To Issue IDR600 Billion in March -------------------------------------------- PT Bank Pan Indonesia will issue bonds for IDR600 billion next month, Antara News reports. Vice President Roosniati Salihin told the news agency that the bonds will mature in 10 years and the interest will be paid every three months. According to the report, in a report to the capital market watchdog Bapepam-LK, the bank said that the entire fund from the bond sales will be used to refinance a bond debt issued in 2003. Bank Panin said it hopes to receive approval from apepam-LK in the middle of next month before offering is launched later that month. The bond, the report relates, will be listed on the Indonesian Stock Exchange on April 3. Bank Mandiri hired Indo Premier Securities, Evergreen Securities and Bahana Securities as the underwriters for the new bonds, the report adds. About Bank Pan Headquartered in Jakarta, Indonesia, PT Bank Pan Indonesia Tbk's -- http://www.panin.co.id-- products and services include individual, which comprises saving products, consumer credit products, electronic products and service products corporate, and corporate, which consist of saving products, financial service products, loan credit, export and import products, electronic products and service products. The bank has investment in several public listed companies, including PT Clipan Finance Indonesia Tbk, PT Asuransi Multi Artha Guna Tbk and PT Panin Sekuritas Tbk. * * * The Troubled Company Reporter-Asia Pacific reported on Aug. 2, 2007, that Moody's Investors Service placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Pan Indonesia Tbk on review for possible upgrade. The detailed ratings are: * B2 foreign currency long-term deposit rating was placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected -- the former two ratings carry a stable outlook, while the BFSR has a positive outlook. GAJAH TUNGGAL: Aims to Boost Sales by 15% in 2008 ------------------------------------------------- PT Gajah Tunggal Tbk is aiming to boost its sales by 15% this year, supported by growing demand from foreign and domestic markets, Reuters reports. According to the report, Marcello Taufik, Gajah Tunggal's corporte communications officer, said 2007 sales revenue had risen by around 20% from IDR5.47 trillion in 2006. "We are targeting a 15 percent increase from our sales figure of 2007. Demand from the domestic motorcycle market is firm as well as the foreign market," Mr. Taufik was quoted by Reuters as saying. The report relates that analysts expect the company to post sales revenue of IDR6.3 trillion in 2007, and IDR7.07 trillion this year. Mita Valina Liem of Reuters wrrites that Mr. Taufik said the company plans to increase its daily car tyre production capacity to 35,000 units from 30,000 units last year. It will also boost its motorcyle tyre production capacity by 33 percent to 60,000 pieces per day to meet growing demand, the report adds. About Gajah Tunggal Headquartered in Jakarta, Indonesia, PT Gajah Tunggal Tbk -- http://www.gt-tires.com/-- is primarily engaged in the production and marketing of a range of tires and inner tubes for motorcycles, passenger cars, commercial cars, off the road vehicles and industrial and heavy equipment vehicles. Its products are marketed to both domestic and international markets, including Australia, the United States and other countries in Asia and Europe. These products can be purchased in approximately 5,000 retail outlets around the world. The company's subsidiaries, which are engaged in the general trading and financial services, the distribution sector and the chemical industry, include GTT Netherlands B.V., GT 2005 Bonds B.V., PT Prima Sentra Megah and PT Polychem Indonesia Tbk. The company operates a production facility in Tangerang. * * * The Troubled Company Reporter-Asia Pacific reported on June 6, 2007, that Moody's Investors Service assigned a B2 senior unsecured rating for PT Gajah Tunggal Tbk's proposed US$95 million bonds. At the same time, Moody's has affirmed GT's B2 corporate family rating and the B2 senior unsecured rating for existing US$325 million bonds, guaranteed by GT. The outlook for all the ratings is at present negative. On Oct. 6, 2006, Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Gajah Tunggal. The outlook is stable. At the same time, it affirmed the 'B' issue rating on the five- year US$325 million senior unsecured bonds issued by GT2005 Bonds B.V., and irrevocably and unconditionally guaranteed by Gajah Tunggal. GARUDA: Plans US$200 Million Share Sale Next Year to Buy Planes --------------------------------------------------------------- PT Garuda Indonesia plans to raise US$200 million selling shares in an initial public offering in 2009 to buy planes as it tries to improve its safety record and win permission to fly to Europe, Bloomberg News reports. President and Chief Executive Officer Emirsyah Satar told the news agency that the airline is in talks with banks about the share sale. Raising money, Bloomberg explains, will help Garuda Indoneisa to fund purchases from Boeing Co. as it more than doubles fleet to 103 planes by 2013. Ordering new planes could help change investor perception about airlines in Indonesia, whose 51 carriers were last year banned from flying to the European Union for not meeting safety standards, Bernard Lo and Leslie Tan or Bloomberg writes. Mr. Satar said the IPO will help bolster the airline's current equity of US$170 million and help cut debt of US$800 million, the report adds. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sept. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. GOODYEAR TIRE: Earns US$602 Million in Year Ended Dec. 31, 2007 --------------------------------------------------------------- The Goodyear Tire & Rubber Company reported record sales for the fourth quarter and the full year of 2007. Goodyear's sales for 2007 were a record US$19.6 billion, a 5% increase over 2006 despite a 6.2% decline in tire unit volume. All four of the company's tire businesses outside of North America achieved all-time record annual sales during 2007. Segment operating income was US$1.2 billion, compared to US$712 million in 2006. Goodyear's income from continuing operations of US$139 million in 2007 compares to a 2006 loss of US$373 million. Including discontinued operations, Goodyear had 2007 net income of US$602 million, compared to a loss of US$330 million last year. Improvements in pricing and product mix of approximately US$639 million offset higher raw material costs, which increased 3.5%, or approximately US$195 million, compared to 2006. Revenue per tire increased 8% compared to 2006. Fourth Quarter 2007 Goodyear's fourth quarter 2007 sales were US$5.2 billion, an 11% increase compared with the 2006 quarter, offsetting lower volumes with higher prices and a richer product mix. The company estimates that a 12-week strike at its North American facilities in 2006 reduced fourth quarter 2006 sales by US$318 million. Improved pricing and product mix drove revenue per tire up 10% over the 2006 quarter. Lower volumes reflect weak winter tire sale demand in Europe and the company's exit from certain segments of the private label tire business in North America along with weak conditions in several key markets. Fourth quarter segment operating income was US$313 million in 2007. This compares to a segment operating loss of US$86 million in the strike-impacted 2006 period. Segment operating income benefited from improved pricing and product mix of US$119 million in the fourth quarter of 2007, which more than offset increased raw material costs of US$8 million. Favorable foreign currency translation positively impacted sales by US$315 million and segment operating income by US$45 million in the quarter. Gross margin was 19.4% for the 2007 quarter compared to 11.3% in last year's strike-impacted quarter. Fourth quarter 2007 income from continuing operations was US$61 million. This compares to a loss of US$310 million in the strike-impacted fourth quarter of 2006. Including discontinued operations, Goodyear had fourth quarter net income of US$52 million, compared to a net loss of US$358 million last year. Financial Position The company's balance sheet as of Dec. 31, 2007, showed total assets of US$17.2 billion, total liabilities of US$14.3 billion, and total shareholders' equity of US$2.9 billion. The company had total current assets of US$10.2 billion and total current liabilities of US$4.6 billion as of Dec. 31, 2007. At Dec. 31, 2007, it had US$3.4 billion in cash and cash equivalents as well as US$2.2 billion of unused availability under our various credit agreements, compared to US$3.9 billion and US$533 million, respectively, at Dec. 31, 2006. Cash and cash equivalents decreased primarily due to US$2.3 billion of repayments on its borrowings. In aggregate, we had credit arrangements of US$7.4 billion available at Dec. 31, 2007, of which US$2.2 billion were unused, compared to US$8.2 billion available at Dec. 31, 2006, of which US$533 million were unused. A full-text copy of Goodyear's annual and fourth quarter financial report for the period ended Dec. 31, 2007, is available fro free at http://ResearchArchives.com/t/s?280c Management's Comment "Our fourth quarter results show significant gains as we drive sales of our higher-margin premium product lines," said Robert J. Keegan, chairman and chief executive officer. "This is especially true in our emerging markets businesses in Eastern Europe, Asia and Latin America. In aggregate, these three businesses grew sales 20% and segment operating income 41% in the quarter," he said. "Excluding the impact of the strike, North American Tire's focus on innovative new products helped it achieve its highest full- year segment operating income since 2000," he said. "Our new product engine will provide additional growth opportunities in 2008 and beyond." Goodyear made further progress during the fourth quarter on its plan to achieve US$1.8 billion to US$2 billion in gross cost savings by the end of 2009. "We have now achieved more than US$1 billion in savings in 2006 and 2007 and clearly remain on target to reach our four-year goal," Mr. Keegan said. "During 2007, we also made substantial progress on improving our balance sheet with net debt decreasing more than US$2 billion," he said. "We remain on track to achieve our next stage financial metrics, which include an 8 percent segment operating income return on sales globally, a 5% segment operating income return on sales in North America and a target of 2.5 ti