T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, February 26, 2008, Vol. 9, Issue 40 Headlines A U S T R A L I A ALLCO FINANCE: Plans to Sell Non-Core Assets to Cut Debts ASHMAD PTY: Placed Under Voluntary Liquidation CENTRO NP: Fitch Holds CCC Rating on Watch Negative CHARLES SPURGEON: Commences Liquidation Proceedings DRYMAIT HOTELS: Undergoes Liquidation Proceedings G & A CONSTRUCTIONS: Placed Under Voluntary Liquidation SOUTH BRIDGE: Sole Member Resolve to Close Business WAIKERIE PRODUCERS: To Declare First Dividend on March 12 ZINIFEX: Allegiance Board Recommends Acceptance of Revised Offer ZINIFEX: Reports AU$1.3 Billion Half-Year Profit C H I N A , H O N G K O N G & T A I W A N AMERICAN HARDWOOD: Members' Final Meeting Fixed on March 25 ASAHI CREATIVE: Appoints New Liquidator BALLY TOTAL: Latham & Watkins Withdraws as Bankruptcy Counsel BEST ADVANCER: Liquidators Quit Post BIG ONE: Creditors' Proofs of Debt Due on March 14 CHINA AOXING: Posts US$1.1M Net Loss in 2nd Qtr. Ended Dec. 31 CHINA SOUTHERN: Leasing Ten Airbus Aircraft FIAT SPA: Expects to Sell 8,000 High Performance Cars Annually FOUNDATON OF ZHONGSHAN: Commences Liquidation Proceedings GLOBAL POWER: Moody's Assigns Low-B Ratings, Stable Outlook LEE WONG LAN: Liquidators Quit Post NEO-CHINA: Moody's Reviews B1 Ratings for Possible Downgrade PETROLEOS DE VENEZUELA: Earns US$896 Mil. in First Half of 2007 UNIKITAS & CO: Members' Final General Meeting Set for March 25 * CHINA: Domestic Credit Risks Outweigh Subprime Woes for Banks I N D I A GMAC: Weak Operating Environment Cues S&P's Rating Downgrades HDFC BANK: To Merge with Centurion Bank of Punjab QUEBECOR: Ernst & Young Submits Updates on CCAA Proceedings QUEBECOR WORLD: Loses US$210MM Rogers Deal to Transcontinental QUEBECOR: Suppliers Balk at Proposed Reclamation Procedures SOUTHERN IRON: Mumbai Court Approves Scheme of Amalgamation TATA MOTORS: Mandates Banks to Raise US$2.5 Bil., Report Says TATA MOTORS: Commences Sale of Sumo Grande in Local Market TATA POWER: To Partner with Rafael for India's ADS System I N D O N E S I A BANK NIAGA: To Deal with CIMB Bhd to Finance Oil Plantation BANK NISP: Fitch Lifts Issuer Default Rating to BB from BB- BANK PERMATA: 2007 Pre-Tax Profit Up 62% to IDR736.8 Billion MOBILE-8: Near Doubles Revenue as Subsriber-Base Rise 65% PT INCO: Hires Laudio Renato Chaves Bastos as VP & CFO PT INCO: Sees 50% Increase in 2007 Net Profit J A P A N ALITALIA SPA: Lazio Court Rejects Appeal to Cancel Sale Talks ELAN CORP: Posts US$405 Million Net Loss for Year Ended 2007 KOBE STEEL: To Establish Welding Company in China KOBE STEEL: To Issue Domestic Unsecured Yen-Denominated Bonds K O R E A DAEWOO ELECTRONICS: Overhauls UK Marketing Strategy HANARO: Post KRW7.3-Bil. Net Income in 3 Months Ended Dec. 2007 M A L A Y S I A MALAYSIAN AIRLINE: Plans To Increase Flight Frequencies in June TALAM CORP: Has Until April 4 to Redeem Class B & C BaIDS N E W Z E A L A N D CORPORATE CLUB: Fixes March 14 as Last Day to File Claims DESIGN ZOO: Wind-Up Petition Hearing Set for March 3 KFP HOLDINGS: Court Enters Wind-Up Order OCEANSIDE DWELLINGS: Faces Structex Metro's Wind-Up Petition PARS TRANSPORT: Court to Hear Wind-Up Petition on Feb. 28 RISK ADMINISTRATION: Subject to ASB Bank's Wind-Up Petition P A K I S T A N * PAKISTAN: Moody's Says Elections Point to Stability P H I L I P P I N E S PHIL. NATIONAL BANK: Mulls Allied Bank Merger; May Raise PHP15BB PRC LLC: Files Chapter 11 Plan of Reorganization PRC LLC: Wants to File Disclosure Statement by March 13 PRC LLC: Wants Court to Fix May 1 as General Claims Bar Date S I N G A P O R E CHAN HO: Creditors' Proofs of Debt Due on March 10 CHUAN INDUSTRIES: Requires Creditors to File Claims by March 7 CKE RESTAURANTS: Moody's Keeps All Ratings; Assigns Neg. Outlook FORSYTH PARTNERS: Court Enters Wind-Up Order INTERMEC INC: Hires Dennis Faerber as SVP for Global Operations T A I W A N FAR EASTERN: Fitch Cuts Invidivual Rating to C/D PRIMASIA SECURITIES: Fitch Affirms D/E Individual Rating T H A I L A N D ARVINMERITOR: DBRS Confirms 'BB(low)' Ratings on Unsec. Notes FEDERAL-MOGUL: Says Objections to Plan A Changes Are Meritless * BOND PRICING: For the Week 26 February to 29 February 2008 - - - - - ================= A U S T R A L I A ================= ALLCO FINANCE: Plans to Sell Non-Core Assets to Cut Debts --------------------------------------------------------- Allco Finance Group plans to sell its non-core assets in order to cut its debts, various reports say. The selling of its non-core business like infrastructure and financial assets will enable the group to focus on its core business in aviation, shipping and real estate assets, which contributed about 76% of its first-half revenue, the report added. "These areas contributed strong revenue ... and provide a good underpinning for our future strategy," said chief executive officer David Clarke, as quoted by Reuters. The Group, which is in the brink of insolvency, has made at least 10 banks among Commonwealth Bank, which is the biggest lender, to work a new business plan that will avoid putting Allco into the hands of administrators, according to The Age News. About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. ASHMAD PTY: Placed Under Voluntary Liquidation ---------------------------------------------- Ashmad Pty. Ltd.'s members agreed on Jan. 21, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Vernon James Robinson at Deloitte Touche Tohmatsu to facilitate the sale of its assets. The liquidator can be reached at: Vernon James Robinson Deloitte Touche Tohmatsu ANZ Centre, Level 9 22 Elizabeth Street Hobart, Tasmania 7000 Australia Telephone:(03) 6237 7000 Facsimile:(03) 6237 7001 About Ashmad Pty. Located at Hobart, in Tasmania, Australia, Ashmad Pty. Ltd. is an investor relation company. CENTRO NP: Fitch Holds CCC Rating on Watch Negative --------------------------------------------------- Fitch Ratings maintains the ratings for Centro NP LLC (formerly New Plan Excel Realty Trust) as: -- Issuer Default Rating at 'CCC'; -- US$350 million revolving bank credit facility at 'CC/RR6'; -- US$830 million senior unsecured notes at 'CC/RR6'. The Centro NP LLC ratings reflect the financial difficulties of the entity's Australian-based parent company Centro Properties Group (CNP) in connection with the refinancing of over US$2.3 billion of indebtedness due to dislocations in the credit markets. On Feb. 15, 2008, CNP announced that the company, led by newly appointed chief executive officer Glenn Rufrano, has successfully negotiated further extensions of its maturing short-term debt facilities. Facilities of AUD$2.3 billion under the Australian extension arrangements have been extended until April 30, 2008. This includes AUD$1.3 billion previously extended to Feb. 15, 2008, plus an additional AUD$1.0 billion maturing between Feb. 16, 2008, and April 30, 2008. Facilities of US$1.3 billion associated with the 2007 acquisition of Centro NP have been extended to Sept. 30, 2008, though extension beyond April 30, 2008, is contingent to similar arrangements being agreed under the Australian extension arrangements. The rating concerns continue to center on CNP's liquidity and refinancing issues and do not pertain to the operating performance of Centro NP. The portfolio of needs-based, grocery- anchored shopping centers across the U.S. is performing well and expected to be well positioned in an economic slowdown. The strong geographic and tenant diversity of the portfolio helps insulate the company from regional downturns or tenant credit deterioration. Furthermore, Centro NP has seasoned executive and regional management teams and a strong regional infrastructure. Fitch views positively the appointment of Glenn Rufrano, the CEO of New York-based Centro NP, to CEO of Centro Properties Group and his success to-date in negotiating with lenders for the extension. However, significant challenges and uncertainties remain as CNP continues to explore strategies to present to lenders by the April 30, 2008 deadline that will enable CNP to ultimately repay these short-term facilities and also create a more viable company by lowering overall debt levels. CNP is exploring strategic options including an infusion of equity interests and/or asset sales. Centro NP is a US$5.9 billion total assets real estate company focusing on the ownership, management and development of community and neighborhood shopping centers. Centro NP operates a national portfolio of community and neighborhood shopping centers across the U.S. with approximately 67 million square feet of GLA. Centro Properties Group is a Melbourne-based company (ASX: CNP) focusing on the ownership, management, and development of retail shopping centers. Centro has AUD26.6 billion of retail property assets. CHARLES SPURGEON: Commences Liquidation Proceedings --------------------------------------------------- Charles Spurgeon Proprietary Limited's sole member agreed on January 18, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed R. A. Ferguson to facilitate the sale of its assets. The liquidator can be reached at: R. A. Ferguson c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide South Australia 5000 Australia About Charles Spurgeon Located at Blackwood, in South Australia, Australia, Charles Spurgeon Proprietary Limited is an investor relation company. DRYMAIT HOTELS: Undergoes Liquidation Proceedings ------------------------------------------------- Drymait Hotels Pty. Ltd.'s members agreed on Jan. 14, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Robert Colin Parker of Freer Parker & Associates to facilitate the sale of its assets. The liquidator can be reached at: Robert Colin Parker Freer Parker & Associates 40 Sturt Street Adelaide, South Australia Australia About Drymait Hotels Drymait Hotels Pty. Ltd., which is also trading as The Tower Hotel, operates hotels and motels. The company is located at Magill in South Australia. G & A CONSTRUCTIONS: Placed Under Voluntary Liquidation ------------------------------------------------------- G & A Constructions Pty Ltd's members agreed on Jan. 18, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Andre Janis Strazdins and Alan Geoffrey Scott to facilitate the sale of its assets. The liquidators can be reached at: Andre Janis Strazdins Alan Geoffrey Scott SimsPartners Chartered Accountants 12 Pirie Street, Level 4 Adelaide, South Australia 5000 Australia About G & A Constructions G & A Constructions Pty. Ltd. is involved with concrete work. The company is located at Morphett Vale, in South Australia, Australia. SOUTH BRIDGE: Sole Member Resolve to Close Business --------------------------------------------------- South Bridge Finance Pty Limited's sole member agreed on Jan. 18, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed R. A. Ferguson to facilitate the sale of its assets. The liquidator can be reached at: R. A. Ferguson c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide South Australia 5000 Australia About South Bridge Located at Blackwood, in South Australia, Australia, South Bridge Finance Pty. Limited is an investor relation company. WAIKERIE PRODUCERS: To Declare First Dividend on March 12 --------------------------------------------------------- Waikerie Producers Limited, which is in liquidation, will declare its first dividend on March 12, 2008. Only creditors who were able to file their proofs of debt by February 19, 2008, will be included in the company's dividend distribution. The company's liquidators are: M. C. Hall T. J. Clifton PPB Chartered Accountants 26 Flinders Street, 10th Floor Adelaide, South Australia 5000 Australia Telephone:(08) 8211 7800 About Waikerie Producers Waikerie Producers Limited is involved with crop planting, cultivating, and protecting. The company is located at Waikerie, in South Australia, Australia. ZINIFEX: Allegiance Board Recommends Acceptance of Revised Offer ---------------------------------------------------------------- Allegiance Mining NL (ASX: AGM.AX) has accepted a revised takeover offer from Zinifex Limited (ASX: ZFX.AX). Under the revised offer, Allegiance shareholders will be offered AU$1.10 cash per share, up from its previous AU$1/per share offer. The Offer is final as to price, in the absence of a superior proposal. The increased Offer represents an attractive premium for Allegiance shareholders: -- Cash Offer Price AU$1.10 -- Premium to Closing Price 55% -- Premium to 1 Month VWAP 58% The Allegiance directors, Tony Howland-Rose, David Deitz, Barry Sullivan and Eddie Lee each recommend that all Allegiance shareholders accept the revised offer in the absence of a superior proposal and wiII accept the revised offer in respect of any Allegiance shares held by them or on their behalf, in the absence of a superior proposal. At the time of this announcement, Mr. Shi Peirong, a resident of China, had not had sufficient time in which to consider the revised offer. Allegiance Chairman Tony Howland-Rose said: "I believe the revised offer better reflects the value of the Avebury project. In the absence of a superior proposal I and the majority of the board intend to accept the AU$1.10 offer and we recommend that shareholders also accept the revised offer." "This recommendation to accept Zinifex's Offer has been made after careful consideration and the decision to recommend it was not taken lightly, particularly in light of the current volatility in world equity markets," Mr. Howland-Rose said. Zinifex's Chief Executive Officer Andrew Michelmore said: "We are delighted that the Allegiance board is recommending our revised offer. The increased offer represents a very attractive offer and a fair value for Allegiance shareholders, reflecting the high quality of the Avebury nickel project." Zinifex and Allegiance have entered into an agreement, which includes a traditional "no shop" clause, which is subject to the usual fiduciary carve-outs. This clause requires Allegiance to close its data room immediately. Allegiance has agreed to appoint Zinifex nominees to Allegiance's board once Zinifex reaches 50.1% acceptances, at which time the majority of Allegiance directors will resign. Zinifex has agreed to allow two of the current Allegiance directors (Barry Sullivan and Shi Peirong) to remain on the Board of Allegiance, should they choose to do so, until Zinifex acquires a relevant interest in 90% of Allegiance shares. Allegiance shareholders are encouraged to accept the Offer promptly as the Offer is scheduled to close at 7 p.m. (Melbourne Time) on March 7, 2008, and it may not be extended. Accepting Allegiance shareholders will be sent payment for their shares within five business days of accepting. Further information about the revised offer will be made available in the form of a supplementary bidder's statement and a supplementary target's statement as soon as is practicable. Citi and Freehills are acting exclusively for Zinifex Limited in connection with the transaction. Merrill Lynch, ANZ and Minter Ellison are acting exclusively for Allegiance Mining in connection with the transaction. About Allegiance Mining Allegiance Mining is an Australian nickel mining company that is about to commission its first nickel project located in Tasmania. Its Avebury nickel project is due to start production in 1Q-08 and the company has an on-going exploration effort targeting nickel sulphide deposits. About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). Fitch said the outlook is stable. ZINIFEX: Reports AU$1.3 Billion Half-Year Profit ------------------------------------------------ Zinifex Limited has delivered a record half-year profit of AU$1,309.7 million for the period ended December 31, 2007 -- a 74% increase over the profit for the corresponding half-year the previous year. Zinifex's chief executive officer, Andrew Michelmore, said that this result was driven by the substantial proceeds raised from the sale of Zinifex's smelting assets, which contributed AU$960.6 million to net profit and AU$1,785 million of cash. "Over the half, Zinifex successfully completed its transformation to a dedicated mining business. This has not only re-focussed the strategy of the organiZation but resulted in a significant cash injection into the company. "Zinifex's ongoing business, the Century and Rosebery mines together with our exploration and development activities, contributed a profit of AU$281.2 million, down some 43 per cent on the corresponding period last year. "As a result, cash held increased six-fold to more than AU$2.2 billion at December 31, 2007," he said. The Board also announced a dividend of 35 cents per share, fully franked payable on April 21, 2008. The record date for entitlement to this dividend is April 7, and the ex-dividend date will be April 1. Production performance at both the Century and Rosebery mines was excellent with zinc output up 8% and lead output up 12% on the previous comparable half year resulting in stronger sales volumes. However, Mr. Michelmore said that despite this, overall revenue declined by 27% to AU$788.6 million compared with the prior half-year. "This was largely the result of a combination of significantly lower zinc prices and a stronger Australian dollar against the US currency. While zinc stocks remain at historically low levels, zinc prices have fallen on market expectations of more zinc supply in 2008 and 2009 shifting the zinc market from a deficit to a surplus position. "Lead prices however were on average more than double that of the previous corresponding period," he said. Mr Michelmore said that adding to the fall in revenue were increased costs. "The majority of this increased expenditure was directly related to the increased production and our growth ambitions with exploration and development spending rising three-fold to AU$36.7 million. "However, like the rest of the resources industry, over the half year we experienced increased costs with freight rates in particular rising. Mr. Michelmore said that while cost pressures will undoubtedly remain while the resources boom continued, there is some evidence to suggest that the rate of increase may be starting to slow. "Regardless though, controlling expenditure will continue to be an ongoing focus of the company and that, in the current environment, we will be particularly vigilant about costs," he said. Mr. Michelmore noted, however, that in times of global market uncertainties there is always opportunity and that Zinifex would certainly take advantage of this. "We are in an enviable position with more than AU$2 billion in the bank. Cash that, in terms of buying power, is becoming more valuable every day. "Our strategy going forward is to diversify our commodity base with a focus on copper, nickel and related metals such as lead, silver and gold, while of course maintaining a significant interest in zinc and lead," he said. Mr. Michelmore outlined the progress Zinifex has made on its long-term growth strategy highlighting the launch last December of an all cash offer for Allegiance Mining, the owner of the Avebury nickel project located on Tasmania's north west coast. "We also has attractive growth opportunities in the development pipeline including Dugald River, one of the world's largest and highest grade zinc lead silver deposits, and the high grade copper and zinc deposits in Nunavut, Canada. "Exploration momentum is continuing to build around the globe with projects in Australia, Canada, Tunisia, Sweden, Mexico and China and we have also commenced drilling on the extensive ground holdings we have built up around Century Mine," he said. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). Fitch said the outlook is stable. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ AMERICAN HARDWOOD: Members' Final Meeting Fixed on March 25 ----------------------------------------------------------- Au Yuen Fan, Candy, American Hardwood Company Limited's appointed estate liquidator, will meet with the company's members on March 25, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Au Yuen Fan, Candy Room 1202-3 Star House 3 Salibury Road Kowloon, Hong Kong ASAHI CREATIVE: Appoints New Liquidator --------------------------------------- The members of Asahi Creative Technology Limited appointed Stephen Briscoe and Kenneth Chen as the company's liquidators. BALLY TOTAL: Latham & Watkins Withdraws as Bankruptcy Counsel ------------------------------------------------------------- Latham & Watkins LLP obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to withdraw as counsel for Bally Total Fitness Holding Corp. and its debtor- affiliates, for good cause shown. David S. Heller, Esq., a partner at the firm, told the Court that new investors Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund L.P., as sole owners of the Reorganized Bally Total Fitness Holding Corp., are transitioning legal services to Kasowitz, Benson, Torres & Friedman LLP, the legal counsel the New Investors have used historically in restructuring matters. The New Investors' decision to retain new counsel constitutes good cause for Latham & Watkins to withdraw as counsel to the Debtors, pursuant to requirements of Local Rule 2090-1 for the Southern District of New York, Adam L. Shiff, Esq., at Kasowitz Benson, noted. Mr. Shiff informed the Court that Latham & Watkins will coordinate with Kasowitz on the transition of the legal services in order to provide as seamless a transition as possible. In a separate filing, Kasowitz Benson advised the Court that that it has been substituted as counsel for the Reorganized Debtors in place of Latham & Watkins. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre-packaged chapter 11 plan. Joseph Furst, III, Esq., at Latham & Watkins, L.L.P. represented the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. On Aug. 13, 2007, they filed an Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified Amended Prepackaged Plan. BEST ADVANCER: Liquidators Quit Post ------------------------------------ On February 22, 2008, Yang Renwill stepped down as liquidators for Best Advancer Limited. The former liquidator can be reached at: Yang Renwill Flat C-1 5th Floor, Dragon Court 6 Dragon Terraces Causeway Bay Hong Kong BIG ONE: Creditors' Proofs of Debt Due on March 14 -------------------------------------------------- The creditors of Big One Company Limited are required to file their proofs of debt by March 14, 2008, to be included in the company's dividend distribution. The commenced liquidation proceedings on February 12, 2008. The company's liquidators are: Ying Hing Chui Chung Mui Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong CHINA AOXING: Posts US$1.1M Net Loss in 2nd Qtr. Ended Dec. 31 -------------------------------------------------------------- China Aoxing Pharmaceutical Co. Inc. reported a net loss of US$1,149,132 on revenues ofUS$863,877 for the second quarter ended Dec. 31, 2007, compared with a net loss of US$716,239 on revenues of US$345,907 in the same period ended Dec. 31, 2006. General and administrative expenses increased to US$949,138 in the three months ended Dec. 31, 2007, from the US$262,729 in general and administration expense incurred in the three months ended Dec. 31, 2006. The company incurred interest expense of US$426,133 during the quarter ended Dec. 31, 2007, compared to interest expense of US$589,646 in the three months ended Dec. 31, 2006. At Dec . 31, 2007, the company had overUS$13.0 million in debt, long and short-term, that the company incurred to build its facilities and develop its product line. Default Hebei Aoxing Pharmaceutical Group Inc., the operating subsidiary of China Aoxing, is in default in its obligation to satisfy a debt of US$3,212,830 and US$3,964,944 due to the Bank of China in Dec 31, 2006, and Dec. 31, 2007. Balance Sheet At Dec. 31, 2007, the company's consolidated balance sheet showed US$21,276,095 in total assets,US$16,674,243 in total liabilities,US$1,798,316 in convertible debentures, and US$2,803,536 in total stockholders' equity. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$1,596,694 in total current assets available to pay US$16,674,243 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2007, are available for free at http://researcharchives.com/t/s?2857 Going Concern Doubt Paritz & Company P.A., in Hackensack, New Jersey, expressed substantial doubt about China Aoxing Pharmaceutical Co. Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2007 and 2006. The auditing firm said that the company's current liabilities substantially exceeded its current assets. About China Aoxing Incorporated in the State of Florida and headquartered in Jersey City, New Jersey, China Aoxing Pharmaceutical Company Inc. (OTC BB: CAXG) is a pharmaceutical company engaged in research, development, manufacturing and marketing of a range of narcotics and pain management pharmaceutical products in generic and formulations. The company's operating subsidiary, Hebei Aoxing Pharmaceutical Co. Inc. is a corporation organized under the laws of the People's Republic of China. CHINA SOUTHERN: Leasing Ten Airbus Aircraft ------------------------------------------- China Southern Aiirlines mulls leasing of ten airbus A330 planes instead of buying them in order to save on costs and improve debt structure, Winny Wang at Xinhua News reports. According to the same paper, the airline will assign its right to buy eight A330s to Shenzhen Financial Leasing Co. and two planes to HSBC Holdings. The ten airbus planes cost US$1.6 billion based on catalog prices. The company has signed the order in 2005, planning to pay for them using cash and loans. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter-Asia Pacific reported in April 2006 that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. FIAT SPA: Expects to Sell 8,000 High Performance Cars Annually -------------------------------------------------------------- Luca De Meo, Fiat SpA Chief Marketing Officer, said that the company expects to sell 8,000 high-performance Abarth cars annually, Bloomberg reports. Since its introduction in October 2007, 1,500 orders have been placed. Abarth was founded in 1949 and acquired by Fiat in 1971. Abarth currently has 35 dealers in Italy and plans to put up 60 showrooms in 12 countries. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported on Nov. 6, 2007, Moody's Investors ervice changed the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate Family Rating to positive from stable and affirmed its Ba3 long- term senior unsecured ratings as well as the short-term non-Prime rating. On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. FOUNDATON OF ZHONGSHAN: Commences Liquidation Proceedings --------------------------------------------------------- Foundation of Zhongshan University Advanced Research Centre Company Limited's members agreed February 12, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Leong Huon Kit to facilitate the sale of its assets. The liquidator can be reached at: Leong Huon Kit Flat Q 2nd Floor, Block 1 422-484, Kwun Tong Road I Kowloon GLOBAL POWER: Moody's Assigns Low-B Ratings, Stable Outlook ----------------------------------------------------------- Moody's Investors Service assigned a Ba2 first time rating to Global Power Equipment Group Inc.'s US$60 million senior secured revolving credit facility, a B3 rating to the company's US$90 million term loan, and a B2 Corporate Family Rating. The rating outlook is stable. Global Power's B2 corporate family rating primarily reflects the company's established position as a provider of essential products and services to companies in the energy markets, its exposure to volatility in the North American energy markets, and its relatively high degree of customer concentration. Investment by energy related companies in new facilities and upkeep of existing facilities have contributed to the company's existing backlog, and provides visibility to future revenue generation. While energy investment is expected to remain strong, any reduction of investment by the energy sector would adversely affect the company's performance. Moreover, Global Power's top customers represented a significant portion of its 2007 revenues, making it highly dependent on these entities. The rating also considers the important changes to the company's cost base and liability structure achieved during its reorganization under Chapter 11 of the U.S. Bankruptcy Code, which should enable the company to compete more effectively in its markets going forward. The stable outlook reflects Moody's expectations that Global Power will pursue conservative financial policies resulting in stronger debt protection measures. Global Power should be able to take advantage of the robust demand in the energy markets and use free cash flow to reduce debt. The ratings for the senior secured revolving credit facility and senior secured term loan reflect the overall probability of default of the company, to which Moody's assigns a PDR of B2. The Ba2 rating assigned to theUS$60 million senior secured revolving credit facility (rated three notches above the corporate family rating) benefits from a priority of payment over the term loan in a liquidation scenario as defined in the credit agreement. The B3 rating assigned to theUS$90 million senior secured term loan (rated one notch below the corporate family rating) reflects its junior priority of payment relative to the senior secured revolving credit facility. Ratings/assessments assigned: -- Corporate Family Rating B2; -- Probability of default rating B2; -- US$60 million senior secured revolving credit facility due 2014 at Ba2 (LGD2, 13%); and, -- US$90 million senior secured term loan due 2014 at B3 (LGD4, 60%). Headquartered in Tulsa, Oklahoma, Global Power is a comprehensive provider of power generation equipment and maintenance services for customers in the domestic and international energy, power infrastructure and service industries. About Global Power Equipment Group Based in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. LEE WONG LAN: Liquidators Quit Post ------------------------------------ On February 22, 2008, Ying Hing Chiu and Chung Miu Yin, Diana stepped down as liquidators for Lee Wong Lan Fong Foundation Limited. The former liquidators can be reached at: Ying Hing Chui Chung Mui Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong NEO-CHINA: Moody's Reviews B1 Ratings for Possible Downgrade ------------------------------------------------------------ Moody's Investors Service has put the B1 corporate family and senior unsecured ratings of Neo-China Land Group (Holdings) Limited on review for possible downgrade. "The review reflects Moody's increased concerns over any possible adverse developments within Neo-China in view of the trading suspension -- now in place for more than a month -- of its shares," says Kaven Tsang, Moody's lead analyst for the company. "At the same time, the company has not provided any reasons for the prolonged suspension, and this has heightened Moody's concerns over the company's information disclosure and transparency," adds Tsang. In its review, Moody's will attempt to discuss with Neo-China the underlying event and assess the associated impact on the company's credit profile. Any material negative events could pressure its B1 ratings. Moody's will also review whether the company's current corporate governance and information disclosure practices can continue to support the current ratings. Neo-China Land Group (Holdings) Limited is a Chinese property developer engaged in residential and mixed-use developments. It has 16 major projects under development in 12 cities in China and a land bank of around 13.6 million sqm in GFA. It also has two primary land development projects in Tianjin and Chengdu with a total area of 8.4 million sqm. PETROLEOS DE VENEZUELA: Earns US$896 Mil. in First Half of 2007 --------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA told Matthew Walter at Bloomberg News that its profit dropped 69% to US$896 million in the first six months of 2007, compared to 2006. Petroleos de Venezuela said that its overall revenue decreased US$7.96 billion to US$42.9 billion in the first half of last year, from 2006. Petroleos de Venezuela increased investments to US$10.56 billion in 2007, from US$5.82 billion in 2006, Petroleos de Venezuela head and oil and energy minister Rafael Ramirez told El Universal. The government kept 92.5%, or US$42.32 billion of Petroleos de Venezuela's domestic revenues for oil sales in 2007, El Universal says, citing Minister Ramirez. Petroleos de Venezuela's tax contribution as royalties, dividends, and income tax total US$29.27 billion. Its contribution to fund social programs totaled US$13.05 billion. Petroleos de Venezuela's contribution in 2006 totaled US$39.2 billion, El Universal notes. Meanwhile, Petroleos de Venezuela's tax contributions decreased in 2006 due to the Venezuelan government's increasing use of the company's monies to finance social programs, El Universal relates. Petroleos de Venezuela's domestic income tax payment to US$2.9 billion in 2006, from US$5.1 billion in 2005. Petroleos de Venezuela's tax contribution -- excluding dividends -- decreased from 40.4% of gross income in 2005 to 38.7% in 2006. According to El Universal, Petroleos de Venezuela said in its audited financial statements in 2006 that royalties rose to US$18.4 billion in 2006, compared to US$13.3 billion in 2005, due to high oil prices. Costs increased 25.8%i to US$18.2 billion in 2006, compared to 2005. Social expenses rose to US$13.7 billion, from US$6.9 billion. The increase in cost and social expense is supposed to be deducted from the tax base, El Universal states, citing experts. Minister Ramirez admitted to El Universal that the figures the company disclosed last week "do not easily match those reflected on the 2006 audited financial statement prepared by Alcaraz, Cabrera & Vazquez," which comprises an accounting section and was prepared based on international standards, El Universal says. El Universal relates that in Petroleos de Venezuela's 2006 balance sheet, the income tax paid totaled US$2.9 billion, but the sum actually paid was US$7.5 billion, comprising amended return and pending taxes for 2004 and 2005. "In the past, there was a deliberate policy not to pay taxes. We have been changing that, and as of this year we have our fiscal obligations updated," Minister Ramirez commented to El Universal. Minister Ramirez told El Universal that Petroleos de Venezuela is preparing to fill form 20-F or annual financial statement with the U.S. Securities and Exchange Commission to give an account to the Venezuelan people, rather than the U.S. 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. PDVSA 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. * * * To date, Petroleos de Venezuela SA carries Fitch's BB- long term issuer default rating and local currency long term issuer default rating. Fitch said the ratings outlook was negative. UNIKITAS & CO: Members' Final General Meeting Set for March 25 -------------------------------------------------------------- Keisko Ishikawa, Unikitas & Co Limited's appointed estate liquidator, will meet with the company's members on March 25, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Keisko Ishikawa 13th Floor Lawison Building No. 37 Hillwood Road Tsimshatsui, Kowloon Hong Kong * CHINA: Domestic Credit Risks Outweigh Subprime Woes for Banks --------------------------------------------------------------- Chinese banks face increasing challenges to tame domestic credit risks, given heavy-handed macro controls at home and a possible demand shock reverberating from a recession in the U.S. But market risks resulting from the global credit crisis largely appear to be manageable. That's according to an article published today, titled, "Domestic Credit Risks Outweigh Subprime Woes For Chinese Banks." "Lending in China has ballooned in recent years, ratcheting up credit risks," said Standard & Poor's credit analyst Qiang Liao. "In a still-remote scenario, a large-scale deterioration in loan quality could hurt ratings." The market risk appetite of Chinese banks is generally conservative, and risk management, though far from cutting-edge, is adequate for their uncomplicated market risk profiles. The direct impact on most Chinese banks of the U.S. mortgage market turmoil engulfing global banks should be limited because of relatively small exposure. But challenges are looming on the corporate lending front. The corporate NPL ratio could jump in 2008 because of the negative impact of credit tightening on marginal borrowers, resulting in the deterioration of special-mention loans to NPLs and weaker dilution as a result of the slowing loan growth. ========= I N D I A ========= GMAC: Weak Operating Environment Cues S&P's Rating Downgrades ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Residential Capital LLC and GMAC LLC. Residential Capital LLC was downgraded to 'B/C' from 'BB+/B'. GMAC LLC was downgraded to 'B+/C' from 'BB+/B'. The outlook for both entities is negative. "The ratings actions on Residential Capital LLC are based on the continuing challenges the company faces as it attempts to return to profitability, a still-difficult funding environment, and our perception of the reduced potential for parental support from the ultimate parents, General Motors Corp. (GM; 49% ownership in GMAC LLC, which in turn owns 100% of Residential Capital LLC) and Cerberus Capital Management L.P. (51% ownership in GMAC LLC)," said Standard & Poor's credit analyst John Bartko. After reporting sizeable losses during the past several quarters ($921 million for fourth-quarter 2007), there is a greater probability of continued losses into 2008, with the likelihood that the larger losses would come earlier in the year. This heightens the risk that Residential Capital LLC could breach itsUS$5.4 billion tangible net worth covenant, as year-end tangible net worth was US$6 billion. As a result, the probability of required parental support during the near term has increased. "The ratings actions on GMAC LLC are not only driven by the diminished value of its ownership stake in Residential Capital LLC, but also a challenging funding environment and expectations for a weaker operating environment in the auto lending business," added Mr. Bartko. GMAC LLC's ownership of Residential Capital LLC afforded GMAC LLC a degree of diversity, which, along with GMAC LLC's ownership structure, separated it from its lower rated parent, GM (B/Stable/B-3). At this point, although the ratings on GMAC LLC are not aligned with those on GM, the advantage that Residential Capital LLC provides is materially diminished, and the remaining one-notch uptick reflects that. Without diversification from Residential Capital LLC, S&P could revisit the idea of separating the ratings on GMAC LLC from those on GM, as one outcome would include considering GMAC LLC as a captive finance company, with the ratings on GMAC LLC and GM aligned. On the other hand, the benefits of GMAC LLC's unique ownership structure would counter this point. The outlook on GMAC LLC and Residential Capital LLC is negative. S&P expects company downgrades to be driven by Residential Capital LLC's failure to secure capital in excess of anticipated quarterly losses or liquidity deterioration, which would lessen the company's ability to navigate through upcoming debt maturities. Revising Residential Capital LLC's outlook to stable would depend on whether the company can generate sustained earnings, and grow and maintain capital at adequate levels. If there is a failure at Residential Capital LLC, S&P could reconsider its ratings on GMAC LLC. Without Residential Capital LLC, S&P acknowledges that GMAC LLC is a pure captive finance company of GM and, as such, the ratings on GMAC LLC could be aligned with those on GM. S&P would need to weigh this against the benefits of GMAC LLC's ownership structure. Revising GMAC LLC's outlook to stable would depend on whether Residential Capital LLC's operations return to profitability, with less concern about capital covenant violations. Furthermore, there would need to be evidence of improvement in the operating environment for auto lending in general and, more specifically, improving asset quality and earnings trends at GMAC LLC. About GMAC GMAC LLC, based in Detroit, is a provider of retail and wholesale auto financing, auto insurance and warranty products, and through its wholly-owned subsidiary Residential Capital LLC, residential mortgage products and services. GMAC reported a preliminary 2007 fourth quarter consolidated net loss of $724 million. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. HDFC BANK: To Merge with Centurion Bank of Punjab ------------------------------------------------- HDFC Bank Ltd.'s board of directors has approved a merger between the bank and Centurion Bank of Punjab Ltd. The Asia Pulse, citing official sources, said that the Centurion Bank of Punjab's board has also given an in-principle approval for the merger. The boards accorded their in-principle consent to pursue the merger, subject to satisfactory due diligence, a fair share swap ratio and receipt of approvals from the Reserve Bank of India, stock exchanges and other requisite statutory and regulatory authorities. Centurion Bank of Punjab and HDFC Bank have tapped Ambit Corporate Finance Pte Ltd. and J. M. Financial Consultants Pvt Ltd. as investment bankers in this transaction. HDFC Bank's board has fixed a 1:29 share swap ratio -- one equity share of INR10 each of HDFC Bank for every 29 shares of INR1 each held in Centurion Bank of Punjab, a filing with the Bombay Stock Exchange says. The ratio, which was based on the joint valuation report submitted by Ernst & Young Pvt Ltd. and M/s. Dalal & Shah, Chartered Accountants, is still subject to due diligence. The bank's board informed BSE that, in the event of the merger being approved on Feb. 28, 2008, it would consider making a preferential offer to its promoter Housing Development Finance Corporation Ltd to enable HDFC to maintain its shareholding percentage in the bank. HDFC Bank is India's second largest private sector lender after ICICI Bank while CBoP is the fourth largest, Asia Pulse notes. If the merger takes place, Asia Pulse estimates that the combined entity would have a market capitalization of about INR63,000 crore. Headquartered in Mumbai, India, HDFC Bank Limited -- http://www.hdfcbank.com/-- is a private sector bank that offers a range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank operates in three segments: retail banking, wholesale banking and treasury services. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking segment provides loans and transaction services to corporate and institutional customers. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 22, 2008, Standard & Poor's Ratings Services assigned these ratings to HDFC Bank's proposed debt issues under the US$1-billion medium-term notes program: -- 'BB+' rating to the lower Tier II subordinated notes to be issued; and -- 'BB' rating to the upper Tier II subordinated and hybrid Tier I notes to be issued. QUEBECOR: Ernst & Young Submits Updates on CCAA Proceedings ----------------------------------------------------------- Ernst & Young Inc., appointed monitor of the bankruptcy proceedings under the Canadian Companies' Creditors Arrangement Act of Quebecor World Inc. and certain of its affiliates, presented its report to the Superior Court of Quebec with respect to the activities of the companies and certain events occurring since Jan. 31, 2008. CCAA Proceedings On Jan. 31, 2008, the Superior Court of Justice (Commercial Division), for the Province of Quebec, made certain amendments to the Initial Order agreed to by various stakeholders and parties-in-interest to the CCAA proceedings and requested by Royal Bank of Canada as administrative agent for a bank syndicate, including: (a) The Applicants will not use the DIP Facilities or any of their property to refinance the existing third party credit facilities supporting the European and Latin American operations, without prior notice to or consultation with the financial advisors to the Bank Syndicate and the holders of public notes. (b) The Applicants will not engage in activities out of the ordinary course of business, as determined by the Monitor. (c) The Applicants are authorized, during the initial 30 days of the stay period, to make intercompany loans up to a maximum of EUR25,000,000 in the aggregate to pay non-petitioners' pre-filing payables that relate to the European operations. (d) The Applicants are authorized, during the same 30-day period, to make intercompany loans up to a maximum of US$10,000,000 in the aggregate to pay non-petitioners' prefiling payables that relate to the Latin American operations. The Bank Syndicate is composed of 16 different financial institutions. The Bank Syndicate has retained McMillan Binch Mendelsohn LLP as Canadian legal counsel, Latham & Watkins LLP as U.S. counsel and PricewaterhouseCoopers Inc. as financial advisor. The Applicants are reviewing a recently received Bank Syndicate proposal for a fund request concerning their professional advisors. Banking Quebecor World Inc. was required to deposit with CIBC CDN$25,000,000 as security for certain indemnified obligations of Quebecor World to CIBC. They have now agreed that the amount to be deposited will be CDN$20,000,000. The Applicants have been working with their existing banks to return to a more efficient way of operating the centralized cash systems. Vendors The management of the European and Latin American operations informed major suppliers of the ongoing bankruptcy proceedings of the Applicants and its impact on the Applicants' business operations and among others. The Applicants, with their counsel and Ernst & Young, are applying consistent payment criteria to prepetition amounts for both the Canadian and U.S. creditors of the Applicants. 2007 Financial Statements and Annual Meeting The Applicants are preparing their December 31, 2007, year-end financial statements and are also working with their 2007 audit. The Applicants will seek authority to postpone their Annual General Meeting of Shareholders since it will disrupt the Applicants' business operations. Cash Flow Results for the Three Weeks Ended February 10, 2008 As of Feb. 10, 2008, the net cash flow generated by the consolidated North American operations was US$178,000,000, including the full drawdown of the US$600,000,000 DIP Term Loan Facility. The net cash flow for the three-week period was US$228,000,000 higher than projected in the cash flow forecast dated Jan. 20, 2008. The favorable cash flow variance is largely attributable to the funding of US$3,000,000 of the US$170,000,000 of the contingent financing of the non- applicants. A copy of the actual cash flow results and the variances from the filing cash flow forecast for the three-week period is available for free at: http://bankrupt.com/misc/Quebecor_CashFlowResultFeb10.pdf Cash Flow Forecast for the 13 Weeks Ending May 11, 2008 To assist their short-term financial performance and ongoing financing requirements, the Applicants have prepared a revised cash flow forecast for the thirteen weeks ending May 11, 2008. A full-text copy of the Revised Cash Flow Forecast is available for free at: http://bankrupt.com/misc/Quebecor_RevisedCashFlowForecast.pdf Bondholders The Bondholders have created an ad hoc Bondholder group, which has retained Goodmans LLP as Canadian legal counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP as U.S. counsel and Houlihan Lokey Howard & Zukin as financial advisor. The Applicants have recognized the Ad Hoc Bondholder Group and committed to a fee proposal based on a monthly estimate for the initial three-month period and intend to work with its professionals on the financial restructuring. The Ad Hoc Bondholder Group and the Applicants each reserved the right to terminate the fee arrangement on 30 business days' notice. Official Committee of Unsecured Creditors The Official Committee Of Unsecured Creditors has retained Akin, Gump, Strauss, Hauer & Feld LLP as U.S. legal counsel, Osler, Hoskins & Harcourt LLP as Canadian legal counsel and Mesirow Financial as financial advisors. Governance The Applicants have recognized the need for a chief restructuring officer and is now on the stage of interviewing candidates. The Applicants will also establish a restructuring committee to assist and supervise the restructuring process. Inter-Company Debt Reporting Ernst & Young has received requests from advisors for each of the Ad Hoc Bond Holders Group and the Bank Syndicate to conduct a factual investigation of information concerning the status of the intercompany accounts of the Quebecor World group. As a result, the Monitor will prepare a narrative report, which will address these topics, free from opinionated and subjective remarks: (a) an overview of the nature of the intercompany transactions that occur within the Quebecor World group; (b) preliminarily, an accounting of the financial position of the more significant legal entities involved in the intercompany transactions; (c) a description of the transactions and intercompany flows from the use of the prepetition credit facility and the issuance of public and private debt securities of Quebecor World Inc. and subsidiaries; (d) an analysis of the use of proceeds derived from issuance of the 4.875% Senior Notes due 2008, 6.125% of Senior Notes due 2013,9.75% Senior Notes due 2015, and 8.75% Senior Notes due 2016 and the related documentation on intercompany flows, including the mirror notes; (e) a listing of the intercompany balances, as recorded by the Quebecor Worlds' legal entities as at January 21, 2008; (f) a summary of the procedures implemented by Quebecor World to track postpetition intercompany transactions between the Applicant and its affiliates; (g) a summary of the nature of intercompany transactions between Quebecor World Inc., Quebecor Inc. and Quebecor Media Inc., the balances between those entities and the current procedures in place to track postpetition transactions; and (f) a factual description of the transactions through which approximately US$370,000,0000 of private notes were repaid in October 2007, which resulted in an increase in the indebtedness due to the Bank Syndicate and in the security provided to the bank group. Status of Foreign Operations * Latin American Operations The Latin American group of companies has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. The Latin American operations are primarily funded by various local financial institutions in each country as well as by supplier financing. Quebecor management says that the Latin American Group requires financing for operations to pay either prepetition accounts payable or to fund cash on delivery terms for future supply of goods and services from its trade creditors. The Applicants' cash flow forecasts indicate a need to transfer US$10,000,000 to the Latin American Group: Country Amount ------- ------ Colombia US$4,000,000 Mexico 2,500,000 Peru 2,500,000 Argentina 700,000 British Virgin Islands 300,000 ----------- US$10,000,000 =========== As of Feb. 14, 2008, US$6,000,0000 has been transferred to Mexico, Peru, Argentina and the British Virgin Islands. * European Operations The European group of companies is comprised of printing operations in France, Belgium, Spain, Austria, Sweden, Finland and the United Kingdom. The European Group also has operations in Switzerland, where it acts as the global purchasing agent for the European Group, North America and Latin America for ink and pre-press, and paper for the European Group. The Switzerland branch also provides cash pooling and insurance services. To manage the EUR25,000,000 limit for prepetition obligations related to the European Group available from the DIP Proceeds, Quebecor World Inc. is working with UBS Securities LLP and management of the European Group to develop a detailed cash flow model for the European Group. The European operations will require funding in the near future, however, E&Y has not yet seen any detailed information as to the timing and quantum of the funding requirements. * Operations in the United Kingdom Quebecor World PLC was placed into administration. It had generated a negative cash flow since the loss of a large contract three years ago. For fiscal 2007, Quebecor World UK had a negative EBITDA of GBP5,400,000 and a negative cash flow of GBP6,800,000. On Feb. 11, 2008, Ian Best and David Duggins of Ernst & Young UK, the UK Administrators, terminated 250 employees as no purchaser had been identified and customers continued to move their work to the competition. The UK Administrators have not received financial support from the Applicants since Jan. 20, 2008. Preparation of Restructuring Business Plan The Applicants intend to begin the preparation of one or more comprehensive business and financial plans with the advice and assistance of UBS Securities LLP and input from Ernst & Young. The Applicants expect the business plan preparation to take at least two months before it will be available for discussion with the Ad Hoc Bondholders Group, Bank Syndicate, and the Unsecured Creditors Committee. The business plans will reflect the Applicants' expectation of future operating performance during and after the CCAA and Chapter 11 process. Monitor's Analysis and Recommendation Murray McDonald, president of Ernst & Young Inc., believes that the Applicants are acting diligently and in good faith towards the stabilization of their operations. Mr. McDonald says that restructuring size and complexity of Quebecor World Inc. requires significant time and effort. Ernst & Young recommends the extension of the CCAA stay until May 11, 2008. 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. 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. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. 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 has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 6; 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: Loses US$210MM Rogers Deal to Transcontinental -------------------------------------------------------------- Bertrand Marotte of The Globe and Mail reported that Quebecor World Inc. lost a major printing contract with Rogers Publishing Ltd. to rival Transcontinental Inc. Quebecor World and Rogers Publishing had a long-standing relationship. According to the report, Rogers signed a six-year deal with Transcontinental worth an estimated US$210,000,000. The contract will take effect on Feb. 1, 2009. Rogers Communications spokeswoman Jan Innes told Globe and Mail that Quebecor World's bankruptcy had nothing to do with the decision to go with Transcontinental, pointing out that the selection process went as far back as six months, long before Quebecor World sought protection from its creditors. Rogers Publishing Ltd. is Canada's largest publishing company with more than 70 print brands and over 45 digital properties serving consumer and business markets in English and French. 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. 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. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. 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 has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 6; 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: Suppliers Balk at Proposed Reclamation Procedures ----------------------------------------------------------- In separate filings Abitibi Consolidated Sales Corp., Abitibi- Consolidated US Funding Corp., Bowater America Inc. and Bowater Inc.; Packaging Corporation of America; Catalyst Pulp and Paper Sales Inc., and Catalyst Paper (USA) Inc.; Rock-Tenn Company; Midland Paper Company; and Day International Inc., object to Quebecor World Inc.'s proposed claims treatment procedures. These Suppliers sold goods, specifically paper products and printing chemicals, to the Debtors before and within the Petition Date. They sent the Debtors written demands for the return of goods received by the Debtors within 45 days of their Reclamation Demands, the value of those goods total: Packaging Corporation of America US$1,454,998 Abitibi and Bowater US$22,664,620 including an additional 14,169,084 pounds of paper Catalyst Pulp and Paper Sales US$8,388,821 Rock-Tenn Company US$387,380 Midland Paper US$3,070,833 Day International US$1,225,783 In the Reclamation Procedures Motion, the Debtors seek, among other relief: (a) at least 120 days from the bankruptcy filing to review and determine the validity of reclamation demands, (b) during the Review Period, a prohibition against any reclaiming seller making any motion for relief with respect to goods subject to reclamation demands, and (c) a prohibition against any seller from filing an adversary proceeding with respect to goods subject to reclamation demands. The Suppliers object to the proposed Reclamation Procedures because it will effectively deny their right of reclamation since after the 120-day stay has expired, the Suppliers' goods will have almost certainly been entirely consumed by the Debtors leaving them with nothing to reclaim. Representing Rock-Tenn, Susan P. Persichilli, Esq., at Buchanan Ingersoll & Rooney, PC, in New York, relates that in 2005, as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Section 546(c) of the Bankruptcy Code was amended. Before the amendment, Ms. Persichilli says, Section 546(c) of the Bankruptcy Code permitted a bankruptcy court to deny a seller the right to reclaim goods by instead granting that seller a replacement lien or an administrative expense claim for the value of the goods. The 2005 amendments to Section 546(c) of the Bankruptcy Code eliminated the ability of a court to deny that seller the right to reclaim its goods, Ms. Persichilli notes. Pursuant to the current version of Section 546(c) of the Bankruptcy Code, a seller, which complies with the provisions of the statute has an absolute right to reclaim goods received by a debtor within the 45 days prior to the bankruptcy filing provided that the debtor was insolvent at the time it received those goods. Indeed, Ms. Persichilli says, absent an agreement among the parties, Congress has made it clear, by eliminating the alternative remedies of replacement liens and administrative expense claims, that the Debtors are required under the current version of Section 546(c) of the Bankruptcy Code to grant reclaiming sellers specific performance like returning specific goods in question. The Suppliers believe that they have satisfied the requirements of Section 546(c), which gives them an absolute right to reclaim the goods they sold to the Debtors which was received 45 days before the bankruptcy filing. Packaging Corporation of America proposes certain modifications to the Debtors' Reclamation Procedures: (a) The Debtors should be required to provide PCA a report of the inventory on hand that identifies which of the goods subject to PCA's Reclamation Demand were on hand as of the date of the Reclamation Demand; (b) PCA's reclamation claim should be granted administrative priority status pursuant to Section 503(b) of the Bankruptcy Code; and (c) PCA should have the right to seek relief from stay with respect to its reclamation claim in the event the Debtors fail to promptly supply PCA the inventory report identifying the goods on hand as of the date of PCA's reclamation demand or in the event PCA reasonably believes that the Debtors' are administratively insolvent. 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. 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. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. 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 has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 6; 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. SOUTHERN IRON: Mumbai Court Approves Scheme of Amalgamation ----------------------------------------------------------- Southern Iron & Steel Company Ltd. has informed BSE that the High Court of Judicature at Mumbai has sanctioned the Scheme of Amalgamation of Southern Iron & Steel Co. Ltd. with JSW Steel Ltd., according to a disclosure in the Bombay Stock Exchange. The Order approving the Scheme was pronounced in the Court on Feb. 22, 2008. The written order sanctioning the Scheme is expected to be received shortly, Sourthern Iron said. Once the order of the High Court is filed with Registrar of Companies, Maharashtra, the scheme will become effective. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 6, 2007, the salient features of the Scheme are: (a) Appointed Date for the Amalgamation is April 1, 2007. (b) One equity share of INR10 each of JSWSL will be issued to the equity shareholders of SISCOL for every 22 equity shares of INR10 each held by them in SISCOL and one redeemable preference share of INR10 each of JSWSL will be issued to the preference shareholders of SISCOL for every one redeemable preference shares of INR10 each held by them in SISCOL and the conversion price for outstanding convertible instruments in SISCOL will also be adjusted in the proportion of the swap ratio. (c) The Share Exchange Ratio is based on the Valuation Report and the recommendations made by PriceWaterHouse Coopers, valuers tasked to value the business of the two companies. (d) The Scheme is subject to the approval of the requisite majority of the shareholders, lenders, creditors of the two companies, the relevant Stock Exchanges, the Bombay High Court and the permission or approval of the Central Government or any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme. Headquartered in Salem, India, Southern Iron & Steel Company Limited is engaged in the business of manufacturing pig iron, billets, bars and rods. The company produces these products at its integrated steel plant located in the district of Salem, Tamil Nadu. The plant has a capacity of 0.3 metric tons per annum. Southern Iron and Steel Company Ltd. also has plants for the generation of power and production of oxygen. On July 20, 2006, CRISIL Ratings reaffirmed the outstanding 'D' rating on the INR280 million Non-Convertible portion of the Optionally Convertible Debenture Issue of Southern Iron & Steel indicating that the instrument continues in default. The original instrument has been restructured and is due for redemption in two installments on May 17, 2007, and May 17, 2008. TATA MOTORS: Mandates Banks to Raise US$2.5 Bil., Report Says ------------------------------------------------------------- Tata Motors Ltd. has kick-started the process of raising US$2.5 billion by giving the mandate to various local and foreign banks, the Economic Times reports. According to ET, the list of banks includes Citigroup Inc., JP Morgan Chase & Co., Standard Chartered Plc, BNP Paribas S.A. and the State Bank of India. The amount that will be raised is believed to be used mostly for the acquisition of Ford Motor Co.'s Jaguar and Land Rover units. Merrill Lynch analysts originally evaluated Jaguar and Land Rover at around US$1.5 billion but later consultants estimate it to cost between US$2 billion to US$3 billion, ET relates. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 31, 2008, Tata Motors is closing in on an agreement with Ford's two luxury brands. On Feb. 8, Tata Motors met with the main trade union of the two brands. Tata Motors became the front-runner to buy the two brands when Ford announced on Jan. 3, that it has entered into "focused negotiations at a more detailed level" with the company. Tata Motors outbid Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. A Reuters report on Friday quoted Dave Osborne, national secretary for vehicle building at the Unite union, as saying, "We are confident our members' long-term future is best served by Tata." The Economic Times noted that the fund-raising coincides with the announcement of Ford's British workers' union that its is satisfied with the discussions with Tata Motors over the latter's proposed acquisition of the marquee brands. The entire fund is expected to be raised against the balance sheet of Tata Motors, ET states cites an unnamed banker close to the fund-raising exercise. The debt will therefore have an impact on the balance sheet of Jaguar and Land Rover, the news agency explains. In a Jan. 9 report, TCR-AP said that Tata Motors' bond risk rose to a record. The increase of the risk of Tata Motors defaulting on its bonds was brought about by the concern that it will borrow to fund its acquisition of Jaguar and Land Rover. Standard & Poor's Ratings Services, on Jan. 7, 2008, placed on CreditWatch with negative implications Tata Motors' BB+ ratings. S&P Credit Analyst Anshukant Taneja said that the acquisition of the Ford brands could potentially have a negative impact on the corporate credit ratings on the company, especially if it is heavily funded by debt. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. TATA MOTORS: Commences Sale of Sumo Grande in Local Market ---------------------------------------------------------- Tata Motors Ltd. has commenced the sale of its latest passenger vehicle offering, the Sumo Grande, in the domestic market. Sumo Grande, unveiled at the Auto Expo in January this year, will be commercially available from dealerships located in metros and select large cities from Feb. 22, 2008, and progressively across the country in a phased manner. The new Sumo Grande combines the looks of an SUV with the comforts of a family car. It has been specifically designed to satisfy the needs of city customers in the areas of driveability, maneuverability and fuel efficiency. The Sumo Grande sports an all new styling with clean chiselled looks mating with flowing contours. The tall aggressive stance is complimented by large clear headlamps, and a cutaway air dam in the front. The clean rear look, with the spare wheel tucked under the body, is accentuated by attractive taillights and a chrome overlay. Designed with a longer wheelbase of 2550 mm (existing 2400 mm), the Sumo Grande sports comfortable three-row seating with best in class third row seats. Beige interiors are complimented by fire and stain resistant fabric upholstery. Dual HVAC with roof integrated louvers ensures personalised climate adjustment for the occupants in each row. Power steering, power windows, motorised ORVMs, height adjustable driver's seat and a state of the art CD/MP3 music system further add to the comforts and convenience of a family traveling in the Sumo Grande. The vehicle is powered by the new generation 2.2 L direct injection common rail engine, fitted with a variable geometry turbocharger creating a perfect blend of performance and fuel efficiency. Maximum power and torque of 120 PS and 250 Nm, coupled with high torque levels over a wide RPM band enhance driveability in stop start city traffic. For a vehicle its size, the Sumo Grande is extremely maneuverable with the turning circle radius of 5.25 m, similar to a small car. The Sumo Grande will be available in three variants -- Lx, Ex and Gx -- all of which have two seating configurations: 6+1 and 7+1. The vehicle will be available in seven colours, including four new shades -- Sunset Orange, Zephyr Green, Mineral Red and Marine Blue. The Sumo Grande range is priced in the range of INR6.55 lakh to INR7.49 lakh (ex-showroom, Delhi). It comes with an enhanced warranty of 2 years or 75000 kms (whichever is earlier). An additional two-year warranty can be availed through the extended warranty option. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. TATA POWER: To Partner with Rafael for India's ADS System --------------------------------------------------------- Israel's Rafael Advanced Defense Ltd. is set to tie up with Tata Power Company Ltd. for the maintenance of air defense systems, the Press Trust of India reports. According to PTI, Rafael will sign a production transfer program agreement with the Tata Group company this fiscal year. Rafael, an armaments company, won a contract for quick reaction surface- to-air Python and Derby Air Defence Systems for India's Ministry of Defense. Under the proposed agreement, Tata Power will manufacture some parts of the air defense systems and do the maintenance work post delivery, PTI quoted Oron Oriol, Rafael's director for air- to-air and air defence systems, as saying. 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 NIAGA: To Deal with CIMB Bhd to Finance Oil Plantation ----------------------------------------------------------- PT Bank Niaga Tbk planned to team up with Malaysia based CIMB Bhd, which controls 83% shares in the bank, to finance palm oil plantations, the turnpike project in Greater Jakarta, power plant and manufacturing projects, The Jakarta Post reports citing Catherine Hadiman, corporate and banking business director. Ms. Hadiman, the report relates, said that in 2008 corporate financing was expected to contribute to some 50% of total profit, treasury division to 30% and retail banking and credit cards to the remaining 20%. On the topic on the government's single presence policy, Ms. Hadiman told the news agency that CIMB had the choice of either merging Niaga with Lippo Bank or building a new holding company covering the two firms. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 19, 2007, Khazanah Nasional is looking into the possibility of merging Lippo Bank and Bank Niaga given the synergy involved, and also to comply with Indonesia's single presence policy. Under Bank Indonesia's single-presence policy, foreign parties cannot own a controlling stake in more than one Indonesian bank and must submit statements of compliance to this rule. CIMB Group owns 64% of Bank Niaga, the TCR-AP noted, while Khazanah, holds 93% of Bank Lippo. Khazanah owns 21.42% of Bumiputera Commerce Holdings Bhd, the parent company of CIMB Group, the report added. Ms. Hadiman was quoted by The Post as saying, "We are currently still studying the prospects for a merger, calculating the commercial issues such as business expansion opportunities or losses that might occur. If (the merger) doesn't provide us with stronger business opportunities, we won't go for that option," she said. The report adds that Ms. Hadiman also said that they were also reviewing the effect of tax regulations on a possible merger. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * The bank also has the following existing global scale ratings assigned by Moody's Investors Service: -- issuer/foreign currency subordinated debt of Ba3; -- global local currency deposit of Baa3; -- foreign currency long-term/short-term deposit of B2/Not Prime; -- and bank financial strength of D. Fitch Ratings affirmed all the ratings of PT Bank Niaga Tbk as: Long-term foreign Issuer Default ratings at 'BB-'; Individual at 'C/D'; and Support '4'. Fitch revised the Outlook for the ratings to positive from stable. BANK NISP: Fitch Lifts Issuer Default Rating to BB from BB- ----------------------------------------------------------- Fitch ratings has taken rating actions on Indonesian banks. "Apart from the sovereign action, the upgrades in the banks' IDRs reflect their financial improvement in the past year, and our expectations that operating conditions in Indonesia should remain generally supportive of credit quality going forward," notes Tan Lai Peng, Director with Fitch's Financial Institutions group. The Outlook has been revised to Stable from Positive. This follows a similar revision on the Indonesian sovereign where the Long-term IDRs were raised to 'BB' from 'BB-' and the Outlook revised to Stable from Positive. The Individual ratings, Short- term IDRs and National Ratings have been affirmed. Also, the Support Ratings of state-owned and/or systemically large banks have been upgraded to '3' from '4'. Their Support Rating Floors have been upgraded to 'BB-' from 'B+' or 'B' previously to reflect the stronger financial ability of the sovereign state to provide support. PT Bank NISP Tbk -- LTFC/LTLC IDR upgraded to 'BB' from 'BB-'; Outlook revised to Stable from Positive; -- Individual rating affirmed at 'C/D'; -- Support rating affirmed at '3'; -- National Long-term rating affirmed at 'AA+(idn)'; -- ST IDR affirmed at 'B'; -- FC subordinated debt upgraded to 'BB-' from 'B+'. BANK PERMATA: 2007 Pre-Tax Profit Up 62% to IDR736.8 Billion ------------------------------------------------------------ PT Bank Permata Tbk's 2007 pre-tax profit increased 62% to IDR736.8 billion from IDR455.2 billion in 2006, Asia Pulse reports. According to the report, the bank said the increase was due to strong growth in credits and fee-based income. The bank, the report relates, reported a 11% growth in credits increasing its loan to deposit ratio to 88% in 2007 from 83% in 2006. While the bank's fee-based income rose 87% to IDR1 trillion, the report notes. The bank also reported an outstanding credit of IDR25.99 trillion with assets valued at IDR39.13 trillion by the end of 2007, the report adds. About Bank Permata Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's -- http://www.permatabank.com/-- products and services include liabilities, asset, credit card and bancassurance, PermataFOREX, commercial banking, e-channels and preferred banking. The bank has approximately 318 domestic branches, sub branches and cash offices throughout the country. The bank's subsidiaries, which are engaged in the securities industry, the consumer finance and leasing sector, the general insurance business and the banking sector, include PT Bali Securities, PT Bali Tunas Finance, PT Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan Rakyat. As reported by the Troubled Company Reporter-Asia pacific on Feb. 25, 2008, Fitch ratings has taken rating actions on PT Bank Permata Tbk. The Outlook has been revised to Stable from Positive. The bank's support Ratings has been upgraded to '3' from '4'. The Support Rating Floors have been upgraded to 'BB-' from 'B+' or 'B' previously to reflect the stronger financial ability of the sovereign state to provide support. The bank's individual rating was also affirmed at C/D. On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Permata. The detailed ratings are: -- The foreign currency long-term deposit rating was raised to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D- BFSR were unaffected. MOBILE-8: Near Doubles Revenue as Subsriber-Base Rise 65% --------------------------------------------------------- PT Mobile-8 Telecom's 2007 revenue almost increased by 50% due to a 65% increase in customer base, The Jakarta post reports. Merza Fachys, company director and chief of corporate affairs, said that by the end of 2007, the company's subscribers numbered slightly more than 3 million, up from about 1.8 million a year earlier. The company's gross revenue in 2007 was promising, The Post notes, with a year-on-year increase of 50%. "It was mainly contributed by the introduction of our new tariff and the launch of our commercial operation in new areas," Mr. Fachys was quoted by the news agency as saying. According to the report, the company took in IDR281.2 billion in gross revenue between January and September in 2007, an 81% increase from the same period in 2006. Moreover, Mr. Fachys said they would continue to expand their BTS (base station transceiver) network outside Java this year, spending US$140 million for the work, or more than double last year's US$60 million, the report adds.