T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, February 27, 2008, Vol. 9, Issue 41 Headlines A U S T R A L I A BANALASTA OIL: Joint Meeting Slated for February 29 BNP PARIBAS: To Declare First Dividend on March 7 DAVLYN ELECTRICAL: Liquidator to Give Wind-Up Report on March 7 ELECTROSOFT PTY: Undergoes Liquidation Proceedings FOOT LOCKER: Allowable Dividend Payments Increased to US$95 Mil. GOLD RECOVERY: Commences Liquidation Proceedings H & G GLASS: Placed Under Voluntary Liquidation LIBERTYONE TECHNOLOGIES: Final Meeting Slated for March 6 WESTERN PACIFIC: Placed Under Voluntary Liquidation WRITTEN WORD: Members & Creditors to Meet on March 5 C H I N A , H O N G K O N G & T A I W A N ASIAN REAL: Members & Creditors to Meet on March 6 BII FINANCE: Commences Liquidation Proceedings DANA CORP: Reorganized Company Names Directors & Officers FUYAO GLASS: Plans to Raise More Than CNY3BB from Selling Shares HENDERSON INVESTMENT: Commences Liquidation Proceedings HKS (GUANGDONG): Appoints New Liquidator LUCKY COUNTRY: Appoints Lee King Yue as Liquidator MAP PAGBILAO: Members' Final General Meeting Set for March 25 OCEAN BRIGHT: Final General Meeting Scheduled on March 26 PETROLEOS DE VENEZUELA: Eyes Settlement with ConocoPhillips PETROLEOS DE VENEZUELA: Asset Freeze to be Extended PETROLEOS DE VENEZUELA: Reaches Settlement with Total & Statoil PLUSMORE INVESTMENT: Appoints New Liquidator TRW AUTOMOTIVE: Earns US$56MM for Quarter Ended Dec. 31, 2007 I N D I A ARTSON ENGINEERING: Registrar of Cos. Grants Extension Requests BAGALKOT UDYOG: Shareholders Approve 10:1 Stock Split DECCAN AVIATION: To Seek Members' Nod on Further Capital Issue EASTMAN KODAK: Dennis Strigl Elected on Board of Directors EMCO LTD: Shareholders Approve 5:1 Stock Split QUEBECOR WORLD: Final Auction Prices of Bonds Reach 41.25% QUEBECOR: Court Approves Payment of Prepetition Commissions QUEBECOR WORLD: Various Entities Disclose Stake in Company TATA MOTORS: Reports Say Ford Deal Will Likely be on March 6-7 I N D O N E S I A BANK DANAMON: Opens New Syariah Office Branch in Jalan Merdeka BANK DANAMON: Shareholders Not to Pursue BII Merger Option BANK MANDIRI: Provides Human Resources Training to SME Debtors BANK TABUNGAN: Plans to Raise IDR1 Tril. from Bond Issuance INDOSAT: Considers Issuing Global Bonds for Capital Expenditure INDOSAT: Subscribers Up 47% to 24.5 Million by End of Dec. 2007 PT INCO: Directors Guilty of Violating Pension Fund Payment TELKOM INDONESIA: Unit Acquires Sigma Cipta Stake for US$35 Mil. J A P A N ALITALIA SPA: AirOne SpA Appeals Lazio Court Ruling DELPHI CORP: Must Pay Professionals US$49MM in Fees & Expenses FLOWSERVE CORP: Settles Oil-for-Food Case with US SEC & DOJ K O R E A DURA AUTOMOTIVE: Court OKs Amendments to Revolving DIP Debt Pact DURA AUTOMOTIVE: Must Appear at Final Hearing to OK Bonus Plan M A L A Y S I A INVENSYS PLC: Leverage Expectations Cue S&P's Positive Outlook PAXELENT CORP: Earns MYR492,000 in Quarter Ended Dec. 31, 2007 SOLUTIA INC: Drops Suit After Banks Recommit on Exit Financing SOLUTIA: Gets Exit Financing from Lenders; To Emerge Thursday SUNWAY INFRASTRUCTURE: Balance Sheet Upside Down by MYR77 Mil. N E W Z E A L A N D AIR NEW ZEALAND: Number of Passengers Up 5.8% in January ARL AIR CONDITIONING: Placed Under Voluntary Liquidation BADER LTD: Appoints Montgomerie & Cunningham as Liquidators BEAZLEY BROS: Names Parsons & Kenealy as Liquidators CENTRAL BUILDERS: Wind-Up Petition Hearing Set for March 12 CLEARY WEALTH: Court to Hear Wind-Up Petition on May 9 FOX & FOX: Appoints Vance & Jordan as Liquidators PLANET HEALTH: Subjec to CIR's Wind-Up Petition PRITAM HOLDINGS: Fixes March 28 as Last Day to File Claims SURE CONSTRUCTION: Creditors' Proofs of Debt Due on March 11 SURE ELECTRICAL: Sets March 11 Deadline to File Proofs of Claim WAKATIPU NATURALLY: Wind-Up Petition Hearing Set for March 27 P H I L I P P I N E S BANCO DE ORO-EPCI: Posts PHP6.5-Billion Profit in 2007 PRC LLC: Creditors Panel Wants More Time to Review DIP Financing PRC LLC: Inks Pact Recognizing Law Debenture as Collateral Agent PRC LLC: Court Okays Services Agreement with Advanced Contact RIZAL COMMERCIAL: Closes Offer of Unsecured Subordinated Debt UNIONBANK OF THE PHILS: Books PHP2.9-Bil. Net Income in 2007 S I N G A P O R E ODYSSEY RE: Earns US$587.2MM in Fiscal Year Ended Dec. 31, 2007 ODYSSEY RE: To Pay US$0.0625 Per Share Dividend on March 28 REFCO INC: SEC Sues Ex-CEO Bennett for Orchestrating Fraud REFCO INC: Ex-Finance Chief Robert Trosten Admits Fraud Charges SCOTTISH RE: New Strategic Focus Didn't Affect Ratings, S&P Says SCOTTISH RE: Subprime Losses Cue Fitch's Rating Cut & WatchNeg SCOTTISH RE: Board Alters Strategies, May Sell Non-Core Assets T H A I L A N D TATA MOTORS: Working on Small-Car Project in Thailand TRUE CORP: Moody's Affirms B1 Ratings; Outlook Remains Negative TRUE MOVE: Moody's Retains B1 Ratings & Negative Outlook * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= BANALASTA OIL: Joint Meeting Slated for February 29 --------------------------------------------------- The Banalasta Oil Plantation Limited will hold a joint meeting for its members and creditors at 9:00 a.m. on February 29, 2008. During the meeting, the company's liquidator, Stephen N. Hall at Forsyths, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Stephen N. Hall Forsyths Chartered Accountants 127 Marius Street Tamworth, New South Wales 2340 Australia About The Banalasta Oil The Banalasta Oil Plantation Limited operates vegetable oil mills. The company is located at Bendemeer, in New South Wales, Australia. BNP PARIBAS: To Declare First Dividend on March 7 ------------------------------------------------- BNP Paribas Equities Private (Australia) Limited will declare its first dividend on March 7, 2008. Creditors are required to file their proofs of debt by Feb. 28, 2008, to be included in the company's dividend distribution. The company's liquidator is: John Melluish Ferrier Hodgson GPO Box 4114 Sydney, New South Wales 2001 Australia About BNP Paribas BNP Paribas Equities Private (Australia) Limited deals with security brokers, dealers, and flotation companies. The company is located at Sydney, in New South Wales, Australia. DAVLYN ELECTRICAL: Liquidator to Give Wind-Up Report on March 7 --------------------------------------------------------------- Davlyn Electrical Services Pty. Ltd. will hold a joint meeting for its members and creditors at 10:00 a.m. on March 7, 2008. During the meeting, the company's liquidator, B. Kijurina at Smith Hancock, will provide the attendees with property disposal and winding-up reports. In a report by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on Feb. 21, 2007. The liquidator can be reached at: B. Kijurina Smith Hancock Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia About Davlyn Electrical Davlyn Electrical Services Pty. Ltd provides electrical work. The company is located at Warrimoo, in New South Wales, Australia. ELECTROSOFT PTY: Undergoes Liquidation Proceedings -------------------------------------------------- Electrosoft Pty. Ltd.'s members and creditors agreed on Jan. 15, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Gregory Stuart Andrews at G S Andrews & Associates to facilitate the sale of its assets. The liquidator can be reached at: Gregory Stuart Andrews G S Andrews & Associates 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Electrosoft Pty. Located at Langwarrin, in Victoria, Australia, Electrosoft Pty. Ltd is an investor relation company. FOOT LOCKER: Allowable Dividend Payments Increased to US$95 Mil. ---------------------------------------------------------------- On Feb. 19, 2008, Foot Locker Inc. entered into an amendment of its Fifth Amended and Restated Credit Agreement dated as of April 9, 1997, and amended and restated as of May 19, 2004, to increase the amount permitted to be paid by the company as dividends during the 2008 fiscal year ending Jan. 31, 2009, from $90.0 million to US$95.0 million. A full-text copy of the Amendment is available for free at: http://researcharchives.com/t/s?2869 About Foot Locker Headquartered in New York, Foot Locker, Inc. (NYSE: FL) --- http://www.footlocker-inc.com/ -- is a specialty athletic retailer that operates approximately 3,800 stores in 21 countries in North America, Europe and Australia. * * * As reported in the Troubled Company Reporter on Oct. 11, 2007, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured ratings on New York City-based Foot Locker Inc. to 'BB' from 'BB+'. S&P have removed the ratings from CreditWatch, where they were placed with negative implications on Aug. 18, 2006. S&P said the outlook is negative. GOLD RECOVERY: Commences Liquidation Proceedings ------------------------------------------------ Gold Recovery Pty. Ltd.'s members agreed on January 22, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Brendan John Marchesi at Bent & Cougle Pty. Ltd. to facilitate the sale of its assets. The liquidator can be reached at: Brendan John Marchesi Bent & Cougle Pty. Ltd Chartered Accountants 332 St Kilda Road Melbourne, Victoria 3004 Australia About Gold Recovery Gold Recovery Pty. Ltd. deals with mining metal ores. The company is located at Eltham, in Victoria, Australia. H & G GLASS: Placed Under Voluntary Liquidation ----------------------------------------------- H & G Glass Products Pty. Ltd.'s members and creditors agreed on Jan. 15, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Gregory Stuart Andrews at G S Andrews & Associates to facilitate the sale of its assets. The liquidator can be reached at: Gregory Stuart Andrews G S Andrews & Associates 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About H & G Glass H & G Glass Products Pty. Ltd. is a distributor of construction materials. The company is located at Dandenong South, in Victoria, Australia. LIBERTYONE TECHNOLOGIES: Final Meeting Slated for March 6 --------------------------------------------------------- Libertyone Technologies Limited, which is in liquidation, will hold a final meeting for its members and creditors at 2:30 p.m. on March 6, 2008. During the meeting, the company's liquidator, John Gibbons at Ernst & Young, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: John Gibbons Ernst & Young 680 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9248 4057 About Libertyone Technologies Libertyone Technologies Limited operates investment offices. The company is located at Rushcutters Bay, in New South Wales, Australia. WESTERN PACIFIC: Placed Under Voluntary Liquidation --------------------------------------------------- Western Pacific Capital Pty. Limited's members agreed on Jan. 16, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed John Morgan to facilitate the sale of its assets. The liquidator can be reached at: John Morgan PKF Chartered Accountants & Business Advisers Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 8264 6625 About Western Pacific Western Pacific Capital Pty Limited provides management consulting services. The company is located at Sydney, in New South Wales, Australia. WRITTEN WORD: Members & Creditors to Meet on March 5 ---------------------------------------------------- The Written Word Bookshop Pty. Ltd., which is in liquidation, will hold a joint meeting for its members and creditors at 10:30 a.m. on March 5, 2008. During the meeting, the company's liquidator, Geoffrey T. Hancock at Deloitte Touche Tohmatsu, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Geoffrey T. Hancock Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About The Written Word The Written Word Bookshop Pty. Ltd. operates miscellaneous retail stores. The company is located at Sydney, in New South Wales, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ASIAN REAL: Members & Creditors to Meet on March 6 -------------------------------------------------- Asian Real Estate Society Limited will hold a joint meeting for its members and creditors at 4:00 p.m. on March 6, 2008. During the meeting, the company's liquidator, Ling Wai Ming, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Ling Wai Ming Room 2802 China Resources Building 26 Harbour Road Wanchai, Hong Kong BII FINANCE: Commences Liquidation Proceedings ---------------------------------------------- BII Finance Limited's members agreed February 13, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Chung, Yua Yan Sammy to facilitate the sale of its assets. The liquidator can be reached at: Chung, Yua Yan Sammy Room 1520, 15th Floor Leighton Road Causeway Bay Hong Kong DANA CORP: Reorganized Company Names Directors & Officers --------------------------------------------------------- Dana Holding Corporation, successor to Dana Corporation, said in a regulatory filing with the U.S. Securities and Exchange Commission that it has appointed nine individuals to its Board of Directors: * Michael J. Burns, * Gary L. Convis, * John M. Devine, * Mark T. Gallogly, * Richard A. Gephardt, * Stephen J. Girsky, * Terrence J. Keating, * Mark A. Schulz, and * Jerome B. York. Subsequent to his election as member of the Board, on the Effective Date, Mr. Burns tendered his resignation as president, chief executive officer, chief operating officer and director, the SEC filing said. On Jan. 31, 2008, when the Third Amended Joint Plan of Reorganization of Old Dana and its debtor-affiliates effective, other former members of the Old Dana Board also resigned pursuant to the terms of the Plan. These resigned members are A. Charles Baillie, David E. Berges, Edmund M. Carpenter, Richard M. Gabrys, Samir G. Gibara, Cheryl W. Grise, James P. Kelly, Marilyn R. Marks and Richard B. Priory. Executive Officers On the Effective Date, Dana named John M. Devine as the company's executive chairman, and elected other executive officers: Executive Officer Position ----------------- -------- John M. Devine Executive Chairman Michael J. Burns President, Chief Executive Officer, and Chief Operating Officer Kenneth A. Hiltz Chief Financial Officer Richard J. Dyer Vice President & Chief Accounting Officer Ralf Goettel President, Europe & Engine Products Groups Paul E. Miller Vice President, Purchasing Nick L. Stanage President, Heavy Vehicle Products Thomas R. Stone President, Global Traction Products Group Robert H. Marcin Chief Administrative Officer In connection with his appointment as Dana's Executive Chairman, the Compensation Committee agreed to provide Mr. Devine: -- a US$1,000,000 annual salary; -- an annual target bonus of 150% of base salary based on the achievement of performance measures set by the Board; -- an initial grant of options to purchase 800,000 shares of Common Stock with an exercise price of US$12.75 based on The closing stock price on the grant date, one third of which will vest on each of Aug. 4, 2008, Aug. 4, 2009, and Aug. 4, 2010; -- an initial term of one year, subject to renewal for additional one-year terms; -- reimbursement for reasonable temporary residence expenses including use of private corporate aircraft up to 30 round trips; -- inclusion in future change of control agreements; and -- participation in life and disability insurance and other benefit programs of Dana generally applicable to senior executives. According to Marc S. Levin, Dana's general counsel and secretary, Mr. Devine's employment agreement will provide for severance payments in the event that his position with the company is involuntarily terminated without cause or terminated by Mr. Devine for "good reason," as well as payments following a change in control of the company. Indemnification Agreements Dana also entered into an indemnification agreement with each current member of the company's Board of Directors. The Indemnification Agreements generally provide that the company will indemnify the D&O to the fullest extent permitted or required by the laws of the state of Delaware, against any and all expenses, judgments, fines, penalties and amounts paid in settlement of the claim. About Dana Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News, Issue No. 71; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 12, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. S&P said the outlook is negative. At the same time, Standard & Poor's assigned Dana's $650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. FUYAO GLASS: Plans to Raise More Than CNY3BB from Selling Shares ---------------------------------------------------------------- Fuyao Group Glass Industries Co. Ltd. intends to raise more than CNY3 billion by selling additional shares to fund expansion, Reuters reports. Fuyao said in a statement with the Shanghai Stock Exchange that the company plans to sell CNY100 million-denominated A shares, equal to 10% of its current share capital. The share sale, which is subject to shareholder approval, would raise about CNY3.6 billion, based on Fuyao Glass's last share price of CNY36.97, Reuters says. The actual figure will be based on the average price during the 20 trading days prior to the release of the share sale document. Samuel Shen at Reuters writes that the shares were suspended from trade on Monday morning due to the announcement. The company told the news agency it would use about CNY3.1 billion from the proceeds to expand production capacity and upgrade a research centre. Any proceeds exceeding that amount would be used for operating capital, while any shortfall would be supplemented by other fund-raising means, it added. About Fuyao Group Headquartered in Fuqing, Fujian Province, Fuyao Group Glass Industries Co., Ltd. -- http://www.fuyaogroup.com/-- is a manufacturer of automotive and industrial safety glass. The company provides laminated and tempered glass for automobiles, encapsulation products, bulletproof glass, laminated and tempered glass for buildings, furniture and decorative glass products, front panel glass for electrical appliances and panel glass for other specialty industrial applications. The Company has seven production bases in the People's Republic of China and two wholly owned subsidiaries in the United States. FYG mainly exports to North America and Asia Pacific. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on June 29, 2005. HENDERSON INVESTMENT: Commences Liquidation Proceedings ------------------------------------------------------- Henderson Investment Credit Limited's members agreed February 18, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Lee King Yue to facilitate the sale of its assets. The liquidator can be reached at: Lee King Yue 72-76 Floor Two International Finance Centre 8 Finance Street Central, Hong Kong HKS (GUANGDONG): Appoints New Liquidator ---------------------------------------- The members of HKS (Guangdong) Limited appointed Chan Sun Kwong as the company's liquidators. The liquidator can be reached at: Chan Sun Kwong Room 102, 1st Floor 1st Floor, Oriental Centre 67-71 Chatham Road Tsimshatsui, Kowloon Hong Kong LUCKY COUNTRY: Appoints Lee King Yue as Liquidator -------------------------------------------------- The members of Lucky Country Development Limited appointed Lee King Yue as the company's liquidators. The liquidator can be reached at: Lee King Yue 72-76 Floor Two International Finance Centre 8 Finance Street Central, Hong Kong MAP PAGBILAO: Members' Final General Meeting Set for March 25 ------------------------------------------------------------- Ian Fegurson Bruce, Map Pagbilao 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: Ian Fegurson Bruce 18th Floor Gloucester Tower The Landmark 15 Queen's Road Central Hong Kong OCEAN BRIGHT: Final General Meeting Scheduled on March 26 --------------------------------------------------------- Ian Fegurson Bruce, Map Pagbilao 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: Yim Yuk Chui 21st Floor Fee Tat Commercial Centre No. 613, Nathan Road Kowloon, Hong Kong PETROLEOS DE VENEZUELA: Eyes Settlement with ConocoPhillips ----------------------------------------------------------- Rafael Ramirez, president of Petroleos de Venezuela SA and Venezuela's energy and oil minister, told Steven Bodzin and Caroline Binham at Bloomberg News that he would negotiate a settlement with ConocoPhillips over expropriated energy assets soon. According to Bloomberg News, Minister Ramirez said in a speech, "Only two U.S. companies didn't accept our conditions. Of those two companies, ConocoPhillips continues negotiating with us, and they have said that we are going to reach a deal, and we also believe that this will be, in the short term." As reported in the Troubled Company Reporter-Latin America on Oct. 22, 2007, ConocoPhillips Chief Executive James Mulva said that the company's negotiations with Petroleos de Venezuela on compensation deal over the seizure of the Orinoco Belt assets could take several months. ConocoPhillips opted in June 2007 to withdraw Orinoco operations and leave Venezuela rather than agree to Petroleos de Venezuela's taking over the assets. ConocoPhillips' stake in the Orinoco was estimated between a book value of US$4.5 billion and a market value of US$7 billion. Mr. Mulva told Bloomberg News that arbitration may take several years and ConocoPhillips is seeking to avoid a court fight. He said that he would like ConocoPhillips to reach a settlement with Petroleos de Venezuela this year. ConocoPhillips said in its annual report, which was published last Friday, that it could take years to obtain any negotiated or arbitrated settlement with Petroleos de Venezuela. It admitted in its report that the "timing of any negotiated or arbitrated settlement is not known at this time, but we anticipate it could take years." ConocoPhillips told Dow Jones Newswires that the value of the assets it abandoned in Venezuela "substantially exceeds the historical" initial investment. About ConocoPhillips Headquartered in Houston, Texas, ConocoPhillips is an international, integrated energy company. The company's business is organized into six segments. Exploration and Production segment primarily explores for, produces and markets crude oil, natural gas and natural gas liquids on a worldwide basis. Midstream segment gathers, processes and markets natural gas produced by ConocoPhillips and others, and fractionates and markets natural gas liquids, primarily in the United States and Trinidad. Refining and Marketing segment purchases, refines, markets and transports crude oil and petroleum products, mainly in the United States, Europe and Asia. LUKOIL Investment segment consists of its equity investment in the ordinary shares of OAO LUKOIL. The Chemicals segment manufactures and markets petrochemicals and plastics on a worldwide basis. Emerging Businesses segment includes the development of new technologies and businesses outside the company's normal scope of operations. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. 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. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook was negative. PETROLEOS DE VENEZUELA: Asset Freeze to be Extended --------------------------------------------------- A U.K. court granted Exxon Mobil a temporary extension of an order freezing Petroleos de Venezuela SA's US$12-billion assets until a court hearing this week, Bloomberg News reports. John Fordham, Petroleos de Venezuela's legal representative in London, told Bloomberg News that his client didn't object to the extension, which lasts through a court hearing on the company's bid to overturn the order scheduled to start Feb. 27. According to Bloomberg News, the extension of the asset freeze was needed as the initial U.K. court order scheduled a hearing on Feb. 22 for Petroleos de Venezuela to respond. Venezuelan deputy oil minister Bernard Mommer commented to the Associated Press, "For the first time we will have a chance to respond. We''re preparing for the case." About Exxon Mobil Exxon Mobil Corporation operates as a petroleum and petrochemicals company. It primarily engages in the exploration, production, and sale of crude oil and natural gas; and manufacture, transportation, and sale of petroleum products. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. 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. PETROLEOS DE VENEZUELA: Reaches Settlement with Total & Statoil --------------------------------------------------------------- Venezuelan state-owned oil company Petroleos de Venezuela SA has reached a settlement with France's Total and Norway's StatoilHydro, AFX News reports. According to AFX News, Statoil and Total accepted the book price for the assets Petroleos de Venezuela confiscated last year. AFX News that these compensations were accepted: -- US$834 million to Total, and -- US$266 million to Statoil. The report adds that Italy's Eni accepted US$700 million. As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Petroleos de Venezuela SA signed a deal with Eni SpA for compensation for a Venezuelan oil field the government took over in 2006. 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. PLUSMORE INVESTMENT: Appoints New Liquidator ------------------------------------------- The members of Plusmore Investment Limited appointed Lee King Yue as the company's liquidators. The liquidator can be reached at: Lee King Yue 72-76 Floor Two International Finance Centre 8 Finance Street Central, Hong Kong TRW AUTOMOTIVE: Earns US$56MM for Quarter Ended Dec. 31, 2007 ------------------------------------------------------------- TRW Automotive Holdings Corp. (NYSE: TRW), the global leader in active and passive safety systems, reported fourth-quarter 2007 financial results with sales of US$3.9 billion, an increase of 18.8 percent compared to the same period a year ago. The Company reported fourth quarter net earnings of US$56 million, which compares to the prior year result of US$33 million. The Company's full-year 2007 sales grew to a record US$14.7 billion, an increase of 11.9 percent compared to the prior year. Net earnings for the year were US$90 million, which compares to 2006 earnings of US$176 million. "In 2007, TRW delivered solid operating results, including record sales and outstanding cash flow, that exceeded the business objectives set at the beginning of the year," said John Plant, president and chief executive officer. "Our achievements in 2007 related to our financial performance, together with steady expansion overseas, debt refinancing and safety advancements have helped the Company grow stronger despite challenging industry conditions." Mr. Plant added, "We have performed remarkably well since becoming an independent company, providing solid results to our stakeholders and capitalizing on our position as the world's preeminent active and passive safety systems supplier. Now in 2008, we are a significantly larger, more diverse enterprise that is reaching further into the world's growing markets with a portfolio of safety technology that is unrivaled in the marketplace. We continue to build for the future and are focused on moving the Company forward profitably over the long term." Fourth Quarter 2007 The company reported fourth-quarter 2007 sales of US$3.9 billion, an increase of US$614 million or 18.8 percent over the prior year period. Foreign currency translation benefited sales in the quarter by approximately US$328 million. Fourth quarter sales excluding the impact of foreign currency translation increased approximately US$286 million or 8.7 percent over the prior year period. This increase can be attributed to higher customer vehicle production in Europe and China and the continued growth of safety products in all markets (including a higher mix of lower margin modules). These positive factors were partially offset by pricing provided to customers and the continued decline in North American customer vehicle production. Operating income for fourth-quarter 2007 was US$149 million, which compares favorably to US$126 million in the prior year period. Restructuring and asset impairment expenses in the 2007 quarter were US$19 million, which compares to US$8 million in 2006. Operating income excluding these expenses from both periods was US$168 million in 2007, which represents an increase of 25.4 percent compared to the 2006 result of US$134 million. The year-to-year increase was driven primarily by higher product volumes and savings generated from cost improvement and efficiency programs, including reductions in pension and OPEB related costs and a measurable improvement in the Company's Automotive Components segment. These positive factors were in part offset by pricing provided to customers, higher commodity costs and other unfavorable business items. Net interest and securitization expense for the fourth quarter of 2007 totaled US$56 million, which compares favorably to US$66 million in the prior year. The year-to-year decline can be attributed to the benefits derived from the Company's 2007 debt recapitalization, which was completed during the second quarter of 2007. Tax expense in the 2007 quarter was US$39 million, resulting in an effective tax rate of 41 percent, which compares to US$32 million or 49 percent in the prior year period. The 2007 quarter included a FAS 109 adjustment related to pension and OPEB gains recorded through other comprehensive earnings that resulted in a non-cash tax benefit of US$11 million. The prior year quarter included a US$17 million tax benefit related to a bond redemption transaction that was completed during the first quarter of 2006. Excluding these items from both years, the effective tax rate was 53 percent in 2007, which compares to 75 percent in the 2006 quarter. The lower tax rate in the fourth quarter of 2007 can be attributed to a change in the Company's geographic earnings mix. The Company reported fourth-quarter 2007 net earnings of US$56 million or US$0.55 per diluted share, which compares to net earnings of US$33 million or US$0.32 per diluted share in 2006. Net earnings excluding the previously mentioned tax items from both periods were US$45 million or US$0.44 per diluted share in 2007, which compares to US$16 million or US$0.16 per diluted share in 2006. Earnings before interest, securitization costs, loss on retirement of debt (where applicable), taxes, depreciation and amortization, or EBITDA, were US$300 million in the fourth quarter, which compares to the prior year level of US$267 million. Full Year 2007 For full-year 2007, the Company reported sales of US$14.7 billion, an increase of US$1.6 billion or 11.9 percent compared to prior year sales of US$13.1 billion. Foreign currency translation benefited sales in 2007 by approximately US$856 million. Full year 2007 sales excluding the impact of foreign currency translation increased approximately US$702 million or 5.3 percent over the prior year period. This increase resulted primarily from higher product volumes related to new product growth and robust industry sales in overseas markets, partially offset by the decline in North American customer vehicle production and pricing provided to customers. Operating income in 2007 was US$624 million, which compares to US$636 million in the prior year. Restructuring and asset impairment expenses in 2007 were US$51 million, which compares to US$30 million in 2006. Operating income excluding these expenses from both periods was US$675 million in 2007, which represents an increase of US$9 million compared to the 2006 result. This year-to-year improvement can be attributed to savings generated from cost improvement and efficiency programs, including reductions in pension and OPEB related costs, and higher product volumes globally. These positive factors more than offset pricing provided to customers, considerably higher commodity costs and a challenging first quarter operating environment, in which operating income declined significantly compared to the prior year due to weak industry production in North America and an unfavorable mix of products sold in the 2007 quarter. The company posted year-to-year improvements in operating income in each of the remaining three quarters in 2007 which helped offset the first quarter decline. Net interest and securitization expense for 2007 totaled US$233 million, which declined from the prior year total of US$250 million primarily due to the benefits derived from the Company's debt recapitalization completed during the second quarter of 2007. As a reminder, actions related to the debt recapitalization included a US$1.5 billion Senior Note offering, the tender for substantially all of the Company's outstanding US$1.3 billion Notes and the refinancing of its US$2.5 billion credit facilities. In 2007, the Company incurred charges related to these transactions of US$155 million for loss on retirement of debt. In 2006, the Company incurred charges of US$57 million also related to debt retirement. Tax expense in 2007 was US$155 million, resulting in a 63 percent effective tax rate, which compares to US$166 million or 49 percent in 2006. The effective tax rate in 2007 excluding debt retirement charges and the FAS 109 tax benefit was 42 percent. This compares to an effective tax rate, excluding debt retirement charges and the related tax benefit, of 46 percent in 2006. Full-year 2007 net earnings were US$90 million, or US$0.88 per diluted share, which compares to US$176 million or US$1.71 per diluted share in 2006. Net earnings excluding the previously mentioned debt retirement charges and tax items from both periods were US$234 million or US$2.28 per diluted share in 2007, which compares to US$216 million or US$2.10 per diluted share in 2006. EBITDA in 2007 totaled US$1,190 million, which represents a US$24 million improvement over the prior year result of US$1,166 million. Cash Flow and Capital Structure Net cash provided by operating activities during the fourth quarter was US$826 million, which compares to US$397 million in the prior year period. Fourth quarter capital expenditures were US$174 million compared to US$195 million in 2006. For full-year 2007, net cash flow from operating activities was US$737 million, which compares to US$649 million in the prior year. Capital expenditures were US$513 million in 2007, which compares to US$529 million in 2006. Full year 2007 operating cash flow after capital expenditures, referred to as free cash flow, was US$224 million, which compares to US$120 million in 2006. As mentioned previously, the Company completed its debt recapitalization plan during the second quarter of 2007, including the refinancing of its US$2.5 billion credit facilities on May 9, 2007. Additionally, on March 26, 2007, the Company completed its US$1.5 billion Senior Note offering and repurchased substantially all of the existing US$1.3 billion Notes through a tender offer. The Company incurred debt retirement charges of approximately US$155 million in 2007 related to these transactions. On Feb. 2, 2006, the company's wholly owned subsidiary, Lucas Industries Limited, completed the tender for its outstanding GBP 94.6 million 10-7/8% bonds. As a result of the transaction, the Company incurred a US$57 million charge for loss on retirement of debt. As of Dec. 31, 2007, the Company had US$3,244 million of debt and US$899 million of cash and marketable securities, resulting in net debt (defined as debt less cash and marketable securities) of US$2,345 million. This net debt outcome is US$98 million lower than the balance at the end of 2006. About TRW Automotive Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trw.com/-- ranks among the world's leading automotive suppliers. The company, through its subsidiaries, operates in 28 countries and employs approximately 63,800 people worldwide, including Brazil, China, Germany and Italy. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 25, 2008, Moody's Investors Service affirmed the ratings of TRW Automotive Inc.: Corporate Family Rating, Ba2; senior secured bank credit facilities, Baa3; and senior unsecured notes, Ba3, but revised the rating outlook to negative from stable. TRW Automotive Holdings carries Fitch Ratings' 'BB' long-term issuer default rating with a stable outlook. The rating was assigned in October 2005. ========= I N D I A ========= ARTSON ENGINEERING: Registrar of Cos. Grants Extension Requests --------------------------------------------------------------- Artson Engineering Ltd. has informed the Bombay Stock exchange that the Registrar of Companies, Maharashtra, has granted extensions pursuant to the company's requests. Specifically, the ROC: -- through letter dated Jan. 30, 2008, has extended the company's year ending from Sept. 30, 2007, to March 31, 2008. -- through letter dated Jan. 31, 2008, extended the time for holding the company's Annual General Meeting from March 31, 2008, to Sept. 30, 2008. Headquartered in Mumbai, India, Artson Engineering Limited -- http://www.artson.net/-- is a niche engineering company, active in specialized area of refineries, ports and airports. The company is registered with the Board for Industrial & Financial Reconstruction as a sick company. BIFR has sanctioned the rehabilitation scheme of the company on Dec. 18, 2007, and the same is under implementation. BAGALKOT UDYOG: Shareholders Approve 10:1 Stock Split ----------------------------------------------------- According to a filing with the Bombay Stock Exchange, Bagalkot Udyog Ltd's shareholders have approved the stock split of the company's 3,00,00,000 equity shares of INR10 each to 3,00,00,000 equity shares of INR10 each. The move is pursuant to the order of the Board for Industrial and Financial Reconstruction to reduce the nominal value of the company's equity shares from INR10 per share to INR1 a share. The shareholders gave their approval at a meeting on Feb. 25. The existing share certificate in relation to the issued, subscribed and paid-up equity share capital held by the members in physical form will be canceled and new share certificate(s) will be issued in accordance with the Scheme of Rehabilitation or De-merger in the ratio of their holdings of equity Shares in the company. Bagalkot Udyog Ltd manufactures cement, clinker and other by-products. The company incurred heavy losses that led to the erosion of its entire net worth. By order dated June 2, 2000, the Board for Industrial & Financial Reconstruction, New Delhi, had declared the company as a sick industrial unit under the provisions of Sick Industrial Companies (Special Provisions), Act 1985. On May 11, 2006, the operations of the company's cement plant at Bagalkot came to a total stop. The company booked net losses of INR12.68 million for the fiscal year ended March 31, 2007, and INR59.16 million in FY 2006. For the revival of Bagalkot Udyog, the BIFR sanctioned a Scheme for rehabilitation or Demerger pursuant to which the company's cement division is demerged and transferred to Bagalkot Cement & Industries Ltd on going concern basis with effect from July 1, 2007. DECCAN AVIATION: To Seek Members' Nod on Further Capital Issue -------------------------------------------------------------- Deccan Aviation Ltd. has scheduled an Extraordinary General Meeting of its members on March 18, 2008, a filing with the Bombay Stock Exchange says. During the meeting, the company will seek the shareholders' approval for further issue of capital, increase in authorized share capital, and consequential amendments to the Memorandum of Association. Bangalore, India-based Deccan Aviation Limited -- http://www.deccanair.com/-- is a charter aviation company in the private sector. Deccan Aviation provides company charters, tourism, medical evacuation, off-shore logistics and a host of other services. In the financial year ended June 30, 2007, Deccan Aviation reported a net loss of INR4.2 billion, up 23% from the INR3.41- billion loss incurred in FY 2006. EASTMAN KODAK: Dennis Strigl Elected on Board of Directors ---------------------------------------------------------- Eastman Kodak Company has elected Dennis F. Strigl, President and Chief Operating Officer of Verizon Communications, to its board of directors, effective Feb. 21, 2008. Mr. Strigl became President and COO of Verizon in January 2007. In 2000, he was responsible for bringing together the domestic wireless operations of Bell Atlantic, Vodafone AirTouch and GTE to form Verizon Wireless, for which he served as President and CEO until being named to his current position with the company. "I am pleased to welcome Denny Strigl to our board," said Antonio M. Perez, Kodak's Chairman and Chief Executive Officer. "Denny is widely recognized as one of the most prominent architects of the wireless communications industry. He launched the first cellular communications network in the U.S. while leading Ameritech's Mobile Communications business, and during his leadership at Verizon Wireless, increased the company's revenue by nearly 121 percent. Denny will bring a depth of experience to the board in an industry that is increasingly relevant to Kodak." Mr. Strigl received his bachelor's degree in business administration from Canisius College, and his MBA from Fairleigh Dickinson University. He began his career with New York Telephone and held positions at AT&T and Wisconsin Telephone before becoming Vice President of American Bell, Inc. His career took him to senior leadership positions at Ameritech Mobile Communications, Bell Atlantic, and Bell Atlantic Global Wireless, where he was named president and CEO in 1991. Mr. Strigl is past chairman of the Board of Directors of the Cellular Telecommunications and Internet Association, and serves on the boards of directors of Verizon Wireless, Anadigics Inc., PNC Financial Services Group and PNC Bank. He also serves as chairman of the Board of Trustees of Canisius College. Mr. Strigl's election brings the Kodak board to 12 members, 11 of whom are independent directors, with Antonio Perez serving as the only non-independent director. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China, India among others. * * * In September 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Eastman Kodak Co. and removed the ratings from CreditWatch, where they had been placed with negative implications on Aug. 2, 2006. S&P said the outlook is negative. EMCO LTD: Shareholders Approve 5:1 Stock Split ---------------------------------------------- Emco Ltd.'s shareholders have approved the proposed subdivision of the company's equity shares of nominal value of INR10 each to shares of nominal value of INR2 each. The shareholders gave their nods at the extraordinary general meeting on Feb. 25, 2008. The shareholders further approved the consequent alteration the Memorandum of Association and Article 3 of the Articles of Association of the Company. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com-- offers transmission and distribution solutions within the power sector in India. Emco's senior unsecured debt carries Credit Analysis and Research Limited's BB rating, effective May 23, 2007. QUEBECOR WORLD: Final Auction Prices of Bonds Reach 41.25% ---------------------------------------------------------- A Credit Event Auction for Quebecor World Inc. took place on Feb. 19, 2008, with 13 participating dealers. The auction was run in accordance with the ISDA 2008 Quebecor CDS Protocol. Markit Group Limited and Creditex Group Inc. acted as official auction administrators. The Credit Event Auction mechanism is designed to ensure orderly and operationally efficient trade settlement for credit derivatives by determining the final cash settlement price for defaulted Quebecor CDS contracts. During the Quebecor Credit Event Auction, major dealers submited orders electronically on the Creditex platform. Markit calculated and verified the auction results. The final price of Quebecor World's bonds is 41.25%. Karen Brettell of Reuters reported that based on the final price, this would mean that the amount of principal the Quebecor bonds recover would be 41.25% of par. "Thus a buyer of protection would be compensated 58.75% the amount of debt insured," Ms. Brettell wrote. The auction results are available at: http://ResearchArchives.com/t/s?2868 The Credit Event Auction process was launched in 2005 by Markit and Creditex in collaboration with ISDA and major credit derivative dealers to facilitate the settlement of credit derivative contracts in the event of a corporate default. 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: Court Approves Payment of Prepetition Commissions ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York gave Quebecor World Inc. and its affiliates permission to pay accrued prepetition commissions due and owing as of Feb. 1, 2008, to their sales representatives. As reported in the Troubled Company Reporter on Feb. 19, 2008, Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, related that the Debtors' sales representatives are located in plants or in regional offices throughout North America, Europe and Latin America, and customers are able to coordinate simultaneous printing throughout the Debtors' network through a single sales representative. The Debtors' sales representatives are compensated primarily on a commission basis and are paid from 30 to 90 days after a sale actually occurred. Accordingly, the sales representatives may go for long periods without receiving commissions, at which point they may be entitled to several months worth of commissions. Mr. Canning said that the Debtors owe 59 sale representatives, as of February 1, US$1,792,993. Of this amount, US$1,234,641 reflects amounts in excess of $10,950 per employee, with the proposed prepetition payments per employee ranging from US$933 to US$117,868. The Debtors intends to provide the Office of the United States Trustee and counsel to the Official Committee of Unsecured Creditors a schedule showing for each employee scheduled to receive sales commissions on Feb. 1, 2008, the amount of payment and the amount of additional compensation previously received by the employee on account of 2007. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. 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: Various Entities Disclose Stake in Company ---------------------------------------------------------- In separate filings with the United Stated Securities and Exchange Commission, several entities disclosed holding a stake in Quebecor World Inc.: 1. Ronald Gutfleish Ronald Gutfleish disclosed that he may be deemed to beneficially own 7,552,055 subordinate voting shares issued by Quebecor World Inc. Mr. Gutfleish is a managing member of Elm Ridge Capital Management LLC. 2. Avenue Capital, et al. Avenue Capital Management II LP, Avenue Capital Management II GenPar LLC, and Marc Lasry disclosed that each of them may be deemed to beneficially own 5,518,000 subordinate voting shares issued by Quebecor World Inc. On the same day, Avenue Capital, et al., filed an amendment stating that the number of subordinate voting shares each of them may now be deemed to beneficially own is down to 776,000 shares. Marc Lasry is a managing member of Avenue Capital Management II LP, and Avenue Capital Management II GenPar, LLC. Avenue Capital Management II GenPar is the general partner of Avenue Capital Management II LP. 3. Brandes Investment, et al. Brandes Investment Partners LP, Brandes Investment Partners Inc., Brandes Worldwide Holdings LP, Charles Brandes, Glenn Carlson, and Jeffrey Busy disclosed that each of them may be deemed to beneficially own 9,205,888 shares of Quebecor World Inc.'s common stock. Brandes entities' shares represent 10.82% of the 85,079,000 Quebecor World common shares outstanding as of February 1, 2008. They disclaim any direct ownership of the 9,205,888 shares. Brandes Investment Partners LP, is an investment adviser. Brandes Investment Partners Inc., Brandes Worldwide Holdings LP, Mr. Brandes, Mr. Carlson, and Mr. Busy are control persons of the investment adviser. Mr. Brandes is also the president of Brandes Investment Partners Inc. 4. Phillips, Hager & North Investment Management Ltd. Phillips, Hager & North Investment Management Ltd., disclosed that as of Dec. 31, 2007, his company was deemed to beneficially own 105,300 shares of Quebecor World Inc.'s common stock. Phillips Hager's shares represent 0.12% of the 85,079,000 shares of Quebecor World's common stock outstanding as of Feb. 1, 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. TATA MOTORS: Reports Say Ford Deal Will Likely be on March 6-7 -------------------------------------------------------------- The announcement of the sale of Ford Motor Co.'s Jaguar and Land Rover units to Tata Motors Limited will be on March 6 or 7, media reports say. Tata Motors became the front-runner to buy the two luxury brands, outbidding Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 31, 2008, Tata Motors is closing in on an agreement with Ford for the purchase. Last week, Tata and Ford met with British union leaders to resolve final details before drawing up a memorandum of understanding for the sale, AFX News said quoting a report by Automotive News. Media reports noted that the union is satisfied with Tata Motors assuring them, among others, of keeping employment in the United Kingdom at its current level. To pave the way for the final takeover, Tata Motors will sign a three-way Heads of Agreement with Ford and the Jaguar-Land Rover labor union Unite within a few days, The Times of India said citing Dave Osboerne, Motor Industry Leader for Unite. The HoA, a tripartite document, would outline the assurances and agreements reached between the three key players regarding the deal, Mr. Osboerne told the news agency. A final memorandum of understanding on the takeover will be followed soon, The Times added. Announcement of the deal could have been earlier than March 6 or 7, but it is being delayed so as not to overshadow the introduction of an updated Ford Fiesta at the Geneva auto show next week, Automotive News cited an unnamed source from Ford as saying. 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. ================= I N D O N E S I A ================= BANK DANAMON: Opens New Syariah Office Branch in Jalan Merdeka -------------------------------------------------------------- PT Bank Danamon Indonesia Tbk inaugurated a new Danamon Syariah branch office in Jalan Merdeka, Bandung plus seven locations of Syariah office channeling network in West Java. This office chanelling service will enable Bank Danamon customers in the province to access sharia products and services through Danamon conventional branch network. "We are aware of the high demand and customer's interest to the sharia-banking services in West Java. Bandung as the gate of the province with high population and economy growth rate is a very strategic location for Danamon Syariah to answer the market demand," said Hendarin Sukarmadji during the inauguration event. The new Danamon Syariah branch located in a strategic area at the Bandung trade and economic centre in Jalan Merdeka No. 40, same location where Bank Danamon Kantor Wilayah 2 West Java is. Meanwhile, the seven locations of office chanelling sharia network located at the trade and shopping center points below: 1. BDI Bandung - Buah Batu Jl. Buah Batu No.166 Bandung 2. BDI Bandung - Setiabudi Jl. Setia Budi No. 62 Bandung 3. BDI Bandung - A Yani Jl. A. Yani No. 638 Bandung 4. BDI Bandung - Merdeka Jl. Merdeka No. 40 Bandung 5. BDI Bandung - Juanda Jl. Ir. Juanda No. 64 Bandung 6. BDI Bandung - Kopo Sayati Jl. Taman Kopo Ruko No. 2-3 Bandung 7. BDI Bandung - Kopo 26 Jl. Kopo No. 26 Bandung 40242 Further Hendarin said, "Micro, small and medium business segments is one of our priority because we are aware that the economic composition in West Java is majority supported by these segments. This is also in line with the industrial and entrepreneurship growth in the area." To increase its service and to ensure customer's convenience in conduct their banking activities, Danamon Syariah applies an integrated information technology system, which is connected with ICBS, a system used by conventional Danamon. About Danamon Syariah Danamon Syariah provides various saving and financing products structured so as to comply sharia-law to fullfil customers needs. Among others saving products are: saving account, giro, deposit and daily investment. Financing products includes Investment Goods (Murabahah), Capital Goods (Murabahah), Profit Sharing (Mudharabah), besides profit sharing business product (Mudharabah & Musyarakah), Bank Guarantee (Kafalah) and Rent Purchase (Ijarah). Bank Danamon also offers various consumer products such as Car and Motocycle as well as Home Ownership Financing and Renovation In 2007, Bank Danamon has succeeded launching various products and services includine Dirham Card, which was launched in mid 2007 -- is it the first sharia card in Indonesia and RencanaKu Syariah Pensiun product, a sharia-compliant bancassurance product About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on Feb. 25, 2008, Fitch ratings has taken rating actions on PT Bank Danamon "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. Fitch has revised the outlook to stable from positive. The detailed ratings are: -- LTFC IDR upgraded to 'BB' from 'BB-'/Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Support Rating Floor upgraded to 'BB-' from 'B'; -- Individual rating affirmed at C/D; -- ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA(idn)'. On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Danamon Indonesia Tbk: -- The foreign currency subordinated debt rating was raised to Ba2 from Ba3 -- Foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15,2007, Fitch Ratings upgraded the National Long-term rating of PT Bank Danamon Indonesia Tbk to 'AA(idn)' from 'AA- (idn)') while affirming all its other ratings as follows: * Long-term foreign currency Issuer Default Rating 'BB-' with a Positive Outlook, * Short-term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4' and * Support Rating Floor 'B'. BANK DANAMON: Shareholders Not to Pursue BII Merger Option ---------------------------------------------------------- Fullerton Financial Holdings Pte. Ltd., PT Bank Danamon Indonesia Tbk.'s majority shareholder, has informed the Bank's Board of Directors and Board of Commissioners that it has decided not to pursue the option of a merger between Bank Danamon and Bank Internasional Indonesia as previously conveyed in FFH's ownership structure adjustment plan in line with the Single Presence Policy in Indonesian Banking. As reported in the Troubled Company Reporter - Asia Pacific on Dec. 26, 2007, 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. Bank Indonesia, the report noted, set an end-2007 deadline for affected bank owners to decide on how they would comply with the rule. Foreigners controlling Indonesian banks have three options to comply with the single presence policy introduced by Bank of Indonesia, the TCR-AP related: -- merge the banks, -- set up a holding company for the banks, or -- sell down their stakes. The option of a sale of its interest in BII will result in FFH being the controlling shareholder of Danamon only. FFH expects to complete the sale before the deadline of end December 2010 as set out in the Single Presence Policy. "Our recent financial results show a strong growth momentum in various areas of our business. In 2007 our loans grew by 24% which contributed to the 60% increase in our NPAT from the previous year. Going forward, we will focus on our organic growth and expansion plan in 2008," said Sebastian Paredes, President Director of Danamon. This plan includes the enhancement and strengthening of the Bank's distribution network, which covers opening of 78 new conventional and retail banking branches as well as 41 Adira branches to support its business growth outside Java and Bali. To support the growth of the Bank's micro financing initiative, Danamon Simpan Pinjam (DSP) will open 170 points of sales across Indonesia. "This business expansion will also create around 5,000 new jobs," continued Sebastian. About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on Feb. 25, 2008, Fitch ratings has taken rating actions on PT Bank Danamon "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. Fitch has revised the outlook to stable from positive. The detailed ratings are: -- LTFC IDR upgraded to 'BB' from 'BB-'/Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Support Rating Floor upgraded to 'BB-' from 'B'; -- Individual rating affirmed at C/D; -- ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA(idn)'. On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Danamon Indonesia Tbk: -- The foreign currency subordinated debt rating was raised to Ba2 from Ba3 -- Foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15,2007, Fitch Ratings upgraded the National Long-term rating of PT Bank Danamon Indonesia Tbk to 'AA(idn)' from 'AA- (idn)') while affirming all its other ratings as follows: * Long-term foreign currency Issuer Default Rating 'BB-' with a Positive Outlook, * Short-term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4' and * Support Rating Floor 'B'. BANK MANDIRI: Provides Human Resources Training to SME Debtors -------------------------------------------------------------- PT Bank Mandiri Tbk. is providing training for small- and medium-scale enterprises debtors to increase their human resources quality in financial management, TempoInteractive News reports. Sukoriyanto Saputro, bank mandiri micro business senior vice president, told the news agency that weak financial management made small-scale enterprise players often encounter impediments in accessing finance. "Therefore Bank Mandiri needs to train entrepreneurs to increase their human resources quality, so our support is not only funding and financial services but also training," he was quoted by Tempo as saying. Up until the fourth quarter of 2007, the report notes, Bank Mandiri disbursed SME loans amounting to IDR2.2 trillion, which was an increase of 14.2% from IDR1.9 trillion in the same period of the previous year. Mr. Saputro said loans were disbursed to around 110,000 micro businesses in the country and the program, has been running well. Eko Nopiansyah of Tempo writes that since the program was launched in 2004 up until 2007, cumulative loan growth every year amounted to 43%. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter- Asia Pacific reported on Feb. 25, 2008, that Fitch ratings has taken rating actions on PT Bank Mandiri. The detailed ratings are: -- LTFC/LTLC IDRs upgraded to 'BB' from 'BB-'; Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Support Rating Floor upgraded to 'BB-' from 'B+'; -- Individual rating affirmed at 'C/D', ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA+(idn)'; -- FC senior and subordinated debt ratings upgraded to 'BB' and 'BB-' On Aug. 2, 2007, Moody's Investors Service has placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Mandiri on review for possible upgrade. The detailed ratings are: * Ba3/Ba3 foreign currency senior/subordinated debt and B2 foreign currency long-term deposit ratings were placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected -- these ratings carry a stable outlook. The bank also carries Fitch Ratings: Long- term foreign and local currency Issuer Default ratings at 'BB-', Short-term rating at 'B', National Long-term rating at AA(idn)', Individual at 'D', and Support at '4'. Fitch said the Outlook for the ratings was revised to positive from stable. BANK TABUNGAN: Plans to Raise IDR1 Tril. from Bond Issuance ----------------------------------------------------------- PT Bank Tabungan Negara plans to raise IDR1 trillion through bond issuance this year to expand lending, Reuters reports citing President Director Iqbal Latanro . According to the report, the bank aimed to extend IDR10.4 trillion worth of loans this year, from IDR8 trillion of loans in 2007. Tyagita Silka of Reuters writes that the bank was appointed by the government as the main financial institution to provide subsidised mortgage loans to the low-income segment in 1974, but in the last six years it has been encouraged to develop commercial non-subsidised mortgage loans. Headquartered in Jakarta, Indonesia, Bank Tabungan Negara (Persero) -- http://www.btn.co.id/-- is a state-owned bank involved in commercial banking. In 1974, Bank Tabungan was appointed as the financing institution for low- to medium-income housing in an effort to support the Government's housing development program. Nonetheless, BTN suffered huge losses from large corporate lending during the 1997 economic crisis. The Government then recapitalized the Bank, and still wholly owns it. BTN is now the smallest state bank, but retains a dominating 31% share in housing loans as of end-2004. In 2002, the Government directed it to focus on commercial housing loans. Hence, its subsidized housing loans dropped to 44% of its portfolio at July 2005 from 75% at end-2002. * * * On Oct. 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Tabungan Negara. -- The foreign currency long-term deposit rating was raised to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. All ratings carry a stable outlook. INDOSAT: Considers Issuing Global Bonds for Capital Expenditure --------------------------------------------------------------- PT Indosat Tbk is considering issuing global bonds to meet the need for capital expenditures estimated at US$1.2 billion this year, Antara News reports citing Finance Director Wong Heang Tuck According to the report, US$800 million of the capital expenditures would originate from the company's internal cash and US$300-US$400 million from the issuance of the bonds or banking loans. The capital expenditures would among other things be used to build around 3,000 base transceiver stations, the report adds. PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company provides international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service affirmed PT Indosat Tbk's Ba1 local currency issuer rating and has also changed the outlook to stable. At the same time, Moody's affirmed Indosat's Ba3 senior unsecured foreign currency rating. The rating outlook on the bond remains positive, which is in line with the outlook on Indonesia's foreign currency country ceiling. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. Fitch said the outlook on the ratings is stable. INDOSAT: Subscribers Up 47% to 24.5 Million by End of Dec. 2007 --------------------------------------------------------------- PT Indosat Tbk's cellular subscribers in 2007 have increased 47% to 24.5 million by the end of December, Reuters reports, citing President Director Johnny Sjam. However, the report notes, the company's average revenue per user (ARPU) per month dropped 10-11% to IDR53,000. As reported by the Troubled Company Reporter - Asia Pacific on Feb. 21, 2008, Indosat plans to raise as much as IDR1.5 trillion in bonds in the first half to finance its expansion. Mr. Sjam told Reuters that remaining US$136-US$236 million could come from bank loans or global bonds. Indosat is considering issuing global bonds to meet the need for capital expenditures estimated at US$1.2 billion this year, Antara News reports citing Finance Director Wong Heang Tuck According to Antara, US$800 million of the capital expenditures would originate from the company's internal cash and US$300- US$400 million from the issuance of the bonds or banking loans. The capital expenditures would among other things be used to build around 3,000 base transceiver stations, Antara adds. About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company provides international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service affirmed PT Indosat Tbk's Ba1 local currency issuer rating and has also changed the outlook to stable. At the same time, Moody's affirmed Indosat's Ba3 senior unsecured foreign currency rating. The rating outlook on the bond remains positive, which is in line with the outlook on Indonesia's foreign currency country ceiling. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. Fitch said the outlook on the ratings is stable. PT INCO: Directors Guilty of Violating Pension Fund Payment ---------------------------------------------------------- PT International Nickel Indonesia Tbk's Directors Mr. Eddie A. Arsyad, who is also the Chairman of Supervisory Board of Pension Fund, and Mr. Dedy Novianto, head of Pension Fund Management, were pleaded guilty for violating the pension fund payment law, Reuters Investing Keys reports. According to the report, Mr. Arsyad and Mr. Novianto did not agree with the verdict. Both have made an appeal to the High Court of South Sulawesi, the report adds. Headquartered in Jakarta, Indonesia, PT International Nickel Indonesia Tbk -- http://pt-inco.co.id-- is a nickel producer with a production facility and mine are in Sorowako, Sulawesi, where it has a contract agreement until 2025. It produces nickel matte, an intermediate product, from lateritic ores at its integrated mining and processing facilities near Sorowako on the island of Sulawesi. Inco Limited of Canada holds a 60.8% stake of the company and Sumitomo Metal Mining Co Ltd. holds a 20.1% stake. * * * As of October 29, 2007, the company carried Standard and Poor's "BB-" long-term foreign and local issuer credit ratings; and Fitch Rating's "BB" LT Issuer Default rating. TELKOM INDONESIA: Unit Acquires Sigma Cipta Stake for US$35 Mil. --------------------------------------------------------------- PT Telekomunikasi Indonesia's unit PT Multimedia Nusantara (Metran) has legally finalized its US$35 million acquisition of PT Sigma Cipta Caraka's stake, Antara News reports. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 20, 2007, Multimedia Nusantara has signed a sale and purchase deal to buy an 80% stake in Sigma Cipta. According to the TCR-AP, Sigma Cipta specializes in providing services like software development and customization, network and system integration, and Internet access mainly for the banking sector. Sigma Citra told the news agency that the stake was purchased from Trozenin Management PIC (Malaysia) and PT Sigma Citra Harmoni. Telkom, the report relates, said the synergy between its 6,000 corporate customers and 170 customers from Sigma, consisting mainly of banks, will improve its customer base portfolio. Telkom CEO Rinaldi Firmansyah was quoted by the news agency as saying, "Through this acquisition, we hope to increase value in the corporate sector. We believe that this will be the beginning of Telkom Group's entry into Indonesia's information technology market." About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 24, 2007, that Moody's Investors Service changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. On Sep. 12, 2007, Fitch Ratings affirmed Telekomunikasi Indonesia's Long-term foreign and local currency ========= J A P A N ========= ALITALIA SPA: AirOne SpA Appeals Lazio Court Ruling --------------------------------------------------- AirOne S.p.A. has appealed the Feb. 20, 2008 ruling of the Italian Regional Administration Court of Lazio that rejected its petition to declare null and void Italy's Ministry of Economy and Finance's decision to commence exclusive talks to sell the government's 49.9% stake to Air France-KLM SA, Guy Dinmore writes for the Financial Times. According to FT, the Lazio court is also expected to reject AirOne's petition to oblige Alitalia S.p.A. to restart negotiation with each other. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. Air France said it will seek approval from the new Italian government chosen following the April 13-14, 2008 snap elections, for any agreement to acquire Italy's stake in Alitalia. Air France Managing Director Pierre Henri Gourgeon said that the exclusive talks may go beyond the April elections due to various procedural steps, Radiocor relates. AirOne said it would present a binding offer once it wins its appeal, adding that its offer would be financially backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc. TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera may join AirOne in its Alitalia bid. Reuters said MyChef may also participate in the offer. AirOne chairman Carlo Toto is inviting businessmen from the Lombardy region to join the airline's bid. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina and Japan. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. DELPHI CORP: Must Pay Professionals US$49MM in Fees & Expenses -------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York directed Delphi Corp. and its debtor-affiliates to pay the professionals retained in the Debtors' bankruptcy cases approximately US$45,000,000 in fees and US$3,000,000 in expenses. Blake, Cassels & Graydon LLP seeks payment of CDN$16,920 for its professional fees for the period June 1, 2007, through Sept. 30, 2007, and reimbursement of CDN$1,312 for expenses incurred during the same period. Blake Cassels serves as the Debtors' Canadian counsel. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and $0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. Moody's said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. FLOWSERVE CORP: Settles Oil-for-Food Case with US SEC & DOJ ----------------------------------------------------------- Flowserve Corporation has reached final resolution with the U.S. Securities and Exchange Commission and the Department of Justice with regard to their investigations of the participation of a French and a Dutch subsidiary of the company in sales to Iraq under the U.N. "Oil-for-Food" program during 2001-2003. The company confirmed that, under the terms of the applicable settlement agreements, Flowserve will pay a fine, profit disgorgement and related prejudgment interest to the SEC total