/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080227.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C 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 totaling US$6,574,225 and a penalty to the DOJ of US$4,000,000. Flowserve noted that these amounts were in line with the announced accruals for this purpose already disclosed in connection with its issued third quarter 2007 financial statements. "There is no higher priority at Flowserve than legal compliance, and we fully cooperated with the SEC and DOJ in their investigations of this matter," said Lewis M. Kling, President and CEO of Flowserve. "We are pleased to now be able to put this matter behind us because it will allow us to focus even more intently on the very attractive business opportunities currently available to Flowserve around the globe." About Flowserve Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) -- http://www.flowserve.com/-- provides fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. Flowserve has operations in Dominican Republic, Guatemala, Guyana, Belize, Belgium, Netherlands, Indonesia, Singapore, Japan, among others. * * * As reported in the Troubled Company Reporter-Europe on Aug. 16, 2007, Moody's Investors Service affirmed Flowserve Corporation's corporate family rating at Ba3 and probability of default at B1. Moody's also affirmed the Ba2 rating to the company's senior secured term loan and assigned a Ba2 rating to Flowserve's senior secured revolving credit facility. ========= K O R E A ========= DURA AUTOMOTIVE: Court OKs Amendments to Revolving DIP Debt Pact ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted final approval to Amendment No. 5 to Revolving DIP Credit Agreement, dated as of Jan. 30, 2008, by and among the Debtors, as Borrowers and Guarantors; General Electric Capital Corporation, as Administrative Agent; Barclays Capital, the investment banking division of Barclays Bank PLC, as Joint Lead Arranger and Documentation Agent; and Bank of America, N.A., as Issuing Bank. As reported in the Troubled Company Reporter on Feb. 5, 2008, the Revolver Amendment amended the terms of the existing Revolving DIP Credit Agreement to, among other things, (i) extend its final maturity date from Jan. 31, 2008 to June 30, 2008; (ii) reduce the commitment from $115,000,000 to $90,000,000; (iii) delete the minimum EBITDA covenant and amend the budget compliance covenant to provide for a 25% cushion during the months of February and March and a 20% cushion thereafter, in each case with respect to the amount budgeted for revolver borrowings during the time; (iv) permit the Debtors to retain certain asset sale proceeds; (v) amend the Revolving DIP Credit Agreement to include certain representations, warranties and covenants contained in the New Term Loan DIP Agreement; (vi) include a covenant requiring the Debtors to meet certain milestones in their restructuring plan; (vii) amend the excess availability covenant to increase the minimum excess availability requirement to US$25,000,000 subject to subsequent decreases to US$20,000,000 and US$15,000,000 upon compliance with certain conditions set forth in the Revolver Amendment; and (viii) increase the interest rate set forth in the Revolving DIP Credit Agreement by 0.50%; provided that LIBOR Rate will not be available to the Debtors during the remaining term of the Revolving DIP Credit Agreement. In light of the Debtors' entry into the US$170,000,000 replacement facility, which was earlier given final approval by the Court, the Debtors have repaid the outstanding amounts under their Senior Secured Super-Priority Debtor In Possession Term Loan and Guaranty Agreement, dated as of October 31, 2006, with a syndicate of lenders led by Goldman Sachs Credit Partners L.P., as administrative agent. The Court said that the Existing Term DIP Facility is now terminated with the payment of the Debtors' obligations in full in cash. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Must Appear at Final Hearing to OK Bonus Plan -------------------------------------------------------------- The Honorable Kevin J. Carey agreed to approve a 2008 Bonus Plan after forcing DURA Automotive Systems Inc. and its debtor- affiliates to agree to come back for a final hearing before the Debtors pay key managers, should the company still be in bankruptcy in July 2008, Steven Church at Bloomberg News reported. According to Bloomberg, Judge Carey said the goal of a final hearing would be to find out whether a delay in the Debtors' plan to exit Chapter 11 in June 2008 is "attributable to the employees' performance." "I want to get to the heart of why the case is not out by then," Bloomberg quoted Judge Carey as saying. Bloomberg also reported that Judge Carey rejected an objection of the United Automotive Workers union to the Bonus Plan ruling that performance targets were reasonable. 2008 Annual Bonus Plan Filed The Debtors had asked the Court to approve the 2008 Bonus Plan. To address the concerns raised by the Official Committee of Unsecured Creditors, the Debtors entered into discussions with the Creditors Committee and, based on those discussions, produced a modified 2008 annual bonus plan for certain key management and other employees. The 2008 Annual Bonus Plan provides incentive bonus program for about 110 non-senior management and other key employees whom the Debtors employ in their North American operations. The 2008 ABP does not include bonus payments to the Debtors' chief executive officer, chief financial officer, chief operating officer, or the chief administrative officer. None of those officials will receive any payment under the 2008 ABP. The 2008 Bonus Plan will make available US$2,600,000, allocated as: -- US$1,680,000 if targets are met in timely completion of certain operational restructuring initiatives related to the "Metals Move;" and -- US$920,000 if the Debtors achieve its projected EBITDA targets. The Operational Restructuring Incentive Bonuses are designed to provide incentives for on-time, below budget execution of the production relocations from the Jacksonville, Florida; Moberly, Missouri; and Gladwin, Michigan, plants to Matamoros, Mexico. A bonus payment of US$700,000 will be awarded if the Jacksonville Donor Plant production relocation is completed on or before June 30, 2008. The US$700,000 Bonus Payment will not be awarded if the relocation is not completed before June 30. Each 2008 Bonus Plan Participant's EBITDA Incentive Bonus payment will vary proportionally from 50% of the target amount if 90% of the participant's target is met to 150% of the target if 120% of the participant's target is achieved. No EBITDA Incentive Bonus will be awarded if actual achievement is less than 90% of the target EBITDA. The Debtors will make the bonus payments as soon as practicable after their emergence from Chapter 11, provided that emergence will not be later than July 11, 2008, and further payments on Oct. 31, 2008, and Jan. 31, 2009. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, tells the Court that the 2008 Annual Bonus Plan is very similar in scope and intent to the Debtors' historic annual bonus plans, albeit certain frontloaded payments. The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, has objected to the Debtors' proposed 2008 key management incentive plan and asked the Court to deny approval of that incentive plan. The UAW asserted that: (a) the proposed 2008 KMIP operates quite differently from the Debtors' prepetition Annual Bonus Plan; (b) the proposed 2008 KMIP was prepared by senior management, including executives who sought to be covered under the program; (c) there is nothing in the 2008 KMIP that connects the payment of a bonus to any individualized or team performance goals; and (d) the Debtors are proposing the 2008 KMIP not because due diligence has revealed any specific need for a program but because the Debtors' exit from bankruptcy has been delayed and they do not want unhappy and disappointed managers. The Debtors, in response to UAW's objections, noted that the 2008 Annual Bonus Plan was developed, not only with the input of a multitude of compensation consultants, but also with an independent counsel as well as input of the Creditors Committee. The Creditors Committee withdrew its objection to the proposed 2008 KMIP as a result of the creation of the 2008 Bonus Plan. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and $1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). =============== M A L A Y S I A =============== INVENSYS PLC: Leverage Expectations Cue S&P's Positive Outlook -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on U.K.- based capital goods group Invensys PLC to positive from stable. At the same time, the 'BB' long-term corporate credit rating was affirmed. "The outlook revision reflects our expectation that leverage and cash flow credit protection measures could be maintained above levels normally required for the ratings," said Standard & Poor's credit analyst Louise Newey. On a 12-month rolling basis to Dec. 31, 2007, the funds from operations (FFO)-to-debt ratio stood at 34.7% and the debt-to- EBITDA ratio was 1.6x, which compares positively with 17.8% and 3.2x, respectively, at fiscal year-end March 31, 2007. The group will redeem its outstanding GBP343 million high-yield bonds, paid out of existing cash balances, leading to their cancellation on March, 17, 2008. Invensys is considering options for its capital structure and financial policy targets, which are currently bound by restrictions on acquisitions and dividend payouts under existing facilities. Standard & Poor's considers that the group's capital structure and credit protection measures could be sustained at levels required for a higher rating. "An upward movement in the ratings would arise from a capital structure with cash flow leverage at above 30% on a sustainable basis," Ms. Newey added. "Business risk conditions would need to remain supportive, mitigating the group's sensitivity to more cyclical industries." The outlook would be revised to stable if the FFO-to-debt ratio under the new capital structure falls to 20%-30% on a consistent basis. To maintain the 'BB' ratings, S&P would expect continued steady positive free cash flow generation supported by overall stable business conditions. Any negative movement in the ratings is less likely in the short to medium term. Headquartered in London, England, Invensys is a leading global automation, controls and process solutions group with over 27,000 employees operating in over 60 countries, including Malaysia. For the nine months ended December 31, 2007, Invensys reported total revenues from continuing operations of approximately GBP1.59 billion. PAXELENT CORP: Earns MYR492,000 in Quarter Ended Dec. 31, 2007 -------------------------------------------------------------- Paxelent Corp. Bhd recorded a net profit of MYR492,000 on MYR2.48 million revenues for the quarter ended Dec. 12, 2007, compared with the MYR18.62-million net loss on MYR2.74 million revenues in the same period of 2006. As of Dec. 12, 2007, the company's consolidated balance sheet showed strained liquidity with MYR25.66 million in current assets available to pay MYR63.31 million in current liabilities. Headquartered in Kuala Lumpur, Malaysia, Paxelent Corporation Berhad is engaged in investment holding. The principal activities of the subsidiaries are property investment, provision of information technology solutions, investment holding, marketing and sale of hard disk drive components. The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Second Board of Bursa Malaysia Securities Berhad. Paxelent Corporation is engaged in investment holding. The principal activities of the subsidiaries are property investment, provision of information technology solutions, investment holding, and marketing and sale of hard disk drive components. The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Second Board of Bursa Malaysia Securities Berhad. The Company is actively pursuing various restructuring schemes to address its default issues. These schemes would involve raising funds through partial disposal of assets, potential debts waivers and rescheduling of the debts. Russell Bedford LC & Company raised substantial doubt on Paxelent's ability to continue as a going concern after auditing The company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the group and company's net current liabilities of MYR39,226,000 and MYR82,894,000 respectively. In addition, both the group and the company have capital deficiencies of MYR18,259,000 and MYR29,142,000 respectively. Russell Bedford LC notes that the company has not met the scheduled repayment obligations of the settlement agreements with several financial institutions arising from the crystallization of corporate guarantees in respect of the wind- up of its former subsidiaries. SOLUTIA INC: Drops Suit After Banks Recommit on Exit Financing -------------------------------------------------------------- Solutia Inc. has entered an agreement to withdraw its lawsuit against Citigroup Inc., Goldman Sachs Group Inc. and Deutsche Bank AG after the banks reiterated their commitment to fund the company's exit financing, Jeffrey McCracken writes for the Wall Street Journal, citing people privy with the matter. WSJ reports, citing a source that Solutia also agreed to some renegotiated terms, which could raise the cost of the loan for the company, but keep it "substantially the same." The banks, in return, agreed to provide US$2.05 billion in exit financing, around US$50 million more than the original loan, WSJ relates. The bank will fund the loan on Feb. 28, 2008, when Solutia expects to emerge from Chapter 11 bankruptcy. The banks also agreed to waive the "materially adverse condition" clause in the loan that they cited as reasons for backing out from the original agreement, the sources added to WSJ. The Down Jones Newswires reports that following the settlement, Solutia has received a US$1.2 billion senior secured term loan facility Citigroup Global Markets Inc., Goldman Sachs Credit Partners LP and Deutsche Bank Securities Inc. As reported in the TCR-Europe on Feb. 8, 2008, Solutia Inc. filed a complaint in the U.S. Bankruptcy Court for the Southern District of New York against the banks that had refused to meet commitment to fund a US$2 billion exit-financing package for Solutia. The complaint asserted that the banks should be stopped from invoking the clause they claim relieves them of their obligation due to their improper conduct and misrepresentations to the company, and further claims that the banks fraudulently induced Solutia to enter into the initial engagement by promising that the financing was firmly committed. On Oct. 25, 2007, the banks executed a firm commitment to fund a US$2 billion exit financing package for Solutia. These substantial, custom credit facilities and arrangements were specifically tailored to facilitate Solutia's prompt emergence from Chapter 11. On Nov. 20, 2007, the bankruptcy court approved the exit-financing package. Nine days later, in reliance on the banks' firm lending commitment, the court found the plan of reorganization to be feasible and confirmed the plan. In late January 2008, -- shortly before the anticipated closing of the exit facility and Solutia's long-awaited emergence from Chapter 11 -- the banks notified the company that they were refusing to provide the funding, citing a so-called "market MAC" provision in their commitment letter and asserting that there has been a change in the markets since entering into the commitment. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. * * * As reported in the Troubled Company Reporter on Dec. 10, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. SOLUTIA: Gets Exit Financing from Lenders; To Emerge Thursday ------------------------------------------------------------- Solutia Inc. and its debtor-affiliates have reached an agreement with Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. to fund Solutia's exit financing package and has scheduled a closing date on Feb. 28, 2008, at which time Solutia's plan of reorganization will become effective and the company will emerge from Chapter 11. "We are extremely pleased to have reached an agreement on the exit financing package that will result in Solutia's emergence from Chapter 11," said Jeffry N. Quinn, chairman, president and CEO of Solutia Inc. "Importantly, this agreement enables Solutia to emerge with the plan of reorganization intact, providing significant recoveries for our stakeholders and providing a firm foundation for Solutia's future success." Under the terms of the revised exit-financing package, the banks have agreed to waive the market material adverse change provision that was contained within the original loan commitment documents and increase the size of the senior secured asset- based revolving credit facility from US$400 million to US$450 million. The banks will provide a US$1.2 billion senior secured term loan facility at LIBOR plus 500 basis points with a minimum LIBOR floor of 350 basis points for the first four years. Additionally, the exit-financing package includes a US$400 million senior unsecured bridge facility. The total cost of the financing, as well as the available liquidity of the company, is substantially consistent with the projections that were included in the disclosure statement previously approved by the U.S. Bankruptcy Court for the Southern District of New York. Solutia has also agreed to dismiss the lawsuit, with prejudice, that it filed on Feb. 6, 2008, against the banks once the exit financing is funded. The parties have agreed to request that the Court authorize the parties to enter into the revised exit-financing package and find that the revisions are substantially consistent with the order confirming the company's plan of reorganization that was previously approved by the court on Nov. 29, 2007. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. * * * As reported in the Troubled Company Reporter on Dec. 10, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. SUNWAY INFRASTRUCTURE: Balance Sheet Upside Down by MYR77 Mil. -------------------------------------------------------------- Sunway Infrastructure Berhad posted a MYR19.15-million net loss on MYR8.21 million revenues in the quarter ended Dec. 31, 2007, as compared with the MYR19.53-million net loss on MYR7.2 million revenues in the same quarter of 2006. As of December 31, 2007, Sunway's balance sheet showed strained liquidity with MYR125.65 million of current assets available to pay MYR1.2 billion of current liabilities coming due within the next 12 months. The company's balance sheet as of end-December also showed MYR1.38 billion in total assets and MYR1.46 billion in total liabilities, resulting in a MYR77-million equity deficit. About Sunway Infrastructure Berhad The Group's principal activities are designing constructing, operating and maintaining The Kajang Traffic Dispersal Ring Road. The Group operates predominantly in Malaysia. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: Number of Passengers Up 5.8% in January -------------------------------------------------------- Air New Zealand Ltd.'s passenger number in January increased 5.8% from the 948,000 passengers in the same period last year, The New Zealand Herald reports. Errol Kiong at The Herald writes that numbers on long-haul routes grew by 11.7%, despite price adjustments for fuel and other operating cost increases. The company told the news agency that its North American loads were at 90.2%, up 3.4 percentage points, with the Auckland to Vancouver service introduced in November 2007. However, the report notes, passenger load factor for the Asia/Japan/UK market fell 0.8 of a percentage point, which the company attributed largely to the addition of two more services from Auckland to Shanghai last November. The Herald relates that Short-haul flights, which include domestic, Australian and Pacific Island destinations, registered increases of 4.6%. Some 822,000 people flew short-haul with the airline last month up from 786,000, the report adds. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand Ltd is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. Moody's Investors Service, on Sept. 4, 2007, affirmed Air New Zealand Limited's Ba1 senior unsecured issuer rating. At the same time, it has changed the outlook on the rating to positive from stable. ANZ carries Standard & Poor's Ratings Services' 'BB' corporate credit rating, with stable outlook. ARL AIR CONDITIONING: Placed Under Voluntary Liquidation -------------------------------------------------------- ARL Air Conditioning and Refrigeration Ltd.'s shareholders agreed on February 7, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Roderick Thomas McKenzie to facilitate the sale of its assets. The liquidator can be reached at: Roderick Thomas McKenzie c/o McKenzie & Partners Limited Level 1, 484 Main Street PO Box 12014, Palmerston North New Zealand Telephone:(06) 354 9639 Facsimile:(06) 356 2028 BADER LTD: Appoints Montgomerie & Cunningham as Liquidators ----------------------------------------------------------- On February 8, 2008, Bernard Spencer Montgomerie and Stuart James Cunningham were appointed liquidators of Bader Ltd. Creditors are required to file their proofs of debt by March 12, 2008, to be included in the company's dividend distribution. The liquidators can be reached at: Bernard Spencer Montgomerie Stuart James Cunningham Montgomerie & Associates Insolvency Practitioners PO Box 65, Auckland 1140 New Zealand Telephone:(09) 368 7672 BEAZLEY BROS: Names Parsons & Kenealy as Liquidators ---------------------------------------------------- Dennis Clifford Parsons and Katherine Louise Kenealy were appointed liquidators of Beazley Bros. Transport Ltd. on February 11, 2008. The liquidators can be reached at: Dennis Clifford Parsons Katherine Louise Kenealy c/o Indepth Forensic Limited PO Box 278, Hamilton New Zealand Telephone:(07) 957 8674 Web site: http://www.indepth.co.nz CENTRAL BUILDERS: Wind-Up Petition Hearing Set for March 12 ----------------------------------------------------------- A petition to have Central Builders Ltd.'s operations wound up will be heard before the High Court of Auckland on March 12, 2008, at 10:45 a.m. Trends Aluminium 2000 Limited filed the petition on Jan. 7, 2008. Trends Aluminium's solicitor is: Malcolm Whitlock c/o Debt Recovery Group NZ Limited Level 5, 5 Short Street Newmarket, Auckland New Zealand CLEARY WEALTH: Court to Hear Wind-Up Petition on May 9 ------------------------------------------------------ The High Court of Auckland will hear on May 9, 2008, at 10:00 a.m. a petition to have Cleary Wealth Management Ltd.'s operations wound up. Exception Interiors Limited filed the petition on Dec. 18, 2007. Exception Interiors' solicitor is: K. A. Muir c/o Morgan Coakle Level 12, 51-53 Shortland Street Auckland New Zealand FOX & FOX: Appoints Vance & Jordan as Liquidators ------------------------------------------------- David Stuart Vance and Barry Phillip Jordan were appointed liquidators of Fox & Fox Ltd. on February 8, 2008. Messrs. Vance and Jordan are accepting creditors' proofs of debt until March 14, 2008. The liquidators can be reached at: David Stuart Vance Barry Phillip Jordan c/o PPB McCallum Petterson The Todd Building, Level 8 95 Customhouse Quay Wellington New Zealand Telephone:(04) 499 7796 Facsimile:(04) 499 7784 PLANET HEALTH: Subjec to CIR's Wind-Up Petition ----------------------------------------------- On January 7, 2008, the Commissioner of Inland Revenue filed a petition to have Planet Health 2003 Ltd.'s operations wound up. The petition will be heard before the High Court of Auckland on March 12, 2008, at 10:45 a.m. The CIR's solicitor is: Julie Newton Inland Revenue Department Legal and Technical Services First Floor Reception 224 Cashel Street PO Box 1782, Christchurch 8140 New Zealand Telephone:(03) 968 0807 Facsimile:(03) 977 9853 PRITAM HOLDINGS: Fixes March 28 as Last Day to File Claims ---------------------------------------------------------- The creditors of Pritam Holdings Ltd. are requried to file their proofs of debt by March 28, 2008, to be included in the company's dividend distribution. The company's liquidators are: Boris van Delden John Trevor Whittfield c/o McDonald Vague PO Box 6092, Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz SURE CONSTRUCTION: Creditors' Proofs of Debt Due on March 11 ------------------------------------------------------------ Sure Construction Limited requires its creditors to file their proofs of debt by March 11, 2008, to be included in the company's dividend distribution. The company's liquidator is : Murray G. Allott 111 Bealey Avenue Christchurch 8013 New Zealand Telephone:(03) 365 1028 Facsimile:(03) 365 6400 e-mail: murray@profitco.co.nz SURE ELECTRICAL: Sets March 11 Deadline to File Proofs of Claim --------------------------------------------------------------- The creditors of Sure Electrical Ltd. are required to file their proofs of debt by March 11, 2008, to be included in the company's dividend distribution. The company's liquidator is : Murray G. Allott 111 Bealey Avenue Christchurch 8013 New Zealand Telephone:(03) 365 1028 Facsimile:(03) 365 6400 e-mail: murray@profitco.co.nz WAKATIPU NATURALLY: Wind-Up Petition Hearing Set for March 27 ------------------------------------------------------------- The High Court of Dunedin will hear on March 27, 2008, at 10:00 a.m. a petition to have Wakatipu Naturally Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition on September 25, 2007. The CIR's solicitor is: Catherine Ann Sweet c/o Inland Revenue Department Legal and Technical Services 7-27 Waterloo Quay PO Box 1462, Wellington New Zealand Telephone:(04) 890 3281 Facsimile:(04) 890 0009 ===================== P H I L I P P I N E S ===================== BANCO DE ORO-EPCI: Posts PHP6.5-Billion Profit in 2007 ------------------------------------------------------ Banco de Oro-Equitable PCI Inc., now known as Banco de Oro Unibank Inc., recorded an annual net income of PHP6.5 billion in 2007, representing a 2% growth over the pro-forma 2006 level of PHP6.4 billion. According to a media release, the result is lower than the bank's income guidance of PHP7 billion, primarily due to non- recurring expenses related to integration and the settlement of taxes under the Bureau of Internal Revenue's abatement program. The bank attribute the performance to: -- beneficial impact of the merger; -- broad-based improvements in key business lines; and -- re-balancing in the asset and liability mix even with ongoing integration efforts and a challenging business improvement. The bank's board of directors has approved a program to issue in tranches up to PHP15 billion of unsecured subordinated debt eligible as Lower Tier 2 Capital, for a period of one year. The first tranche is planned at PHP5 billion, and meant to partially refinance an existing US$200 million Tier 2 issue callable by July 2008. According to the bank, this will allow further expansion of BDO's consumer loan portfolio, and boost its capital adequacy issue. The bank has tapped Hongkong & Shanghai Banking Corporation, ING Bank N.V. and Standard Chartered Bank to arrange the new issue. Additionally, the board approved the consolidation of wholly owned subsidiary Equitable Savings Bank with parent company. The bank will pay on April 8, PHP0.80 cash dividend to stockholders as of March 11, 208. Banco de Oro-Equitable PCI Inc. is the result of a merger between Banco de Oro Universal Bank and Equitable PCI, with BDO as the surviving entity. The Troubled Company Reporter-Asia Pacific reported on June 11, 2007, that Standard & Poor's Ratings Services withdrew its 'BB-' counterparty credit ratings on Equitable PCI Bank Inc., as its merger with Banco De Oro Universal Bank became effective on May 31, 20707. S&P retained its 'BB-' counterparty credit rating and the issue ratings on both Equitable and Banco de Oro's rated debts. Equitable's rated debts will be transferred to the Banco de Oro- EPCI. On January 28, 2008, Moody's Investors Service has revised the outlook of the foreign currency debt and deposit ratings to positive from stable for ratings of Banco de Oro-EPCI Inc., which include: * Foreign currency long-term deposit rating of B1 and foreign currency senior unsecured debt rating of Ba2 (including the senior unsecured debt issued by the former Equitable PCI) * Foreign currency Not-Prime short-term deposit rating, Equitable PCI's foreign currency subordinated debt rating of Ba2 PRC LLC: Creditors Panel Wants More Time to Review DIP Financing ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in PRC LLC and its debtor-affiliates' Chapter 11 cases asks the U.S. Bankruptcy Court for the Southern District of New York to extend, until Feb. 27, 2008, the final hearing to consider the Debtors' postpetition financing facility, in order to allow the Committee a fair opportunity to review the DIP Facility. The Committee asserts that the DIP Financing Motion has global and far-reaching implications. The Debtors sought Court authority to borrow up to $30,000,000 in postpetition financing from The Royal Bank of Scotland plc and certain other lenders. RBS and the other lenders are also the Debtors' prepetition lenders. "The proposed Final DIP Order, when viewed in conjunction with the Plan Term Sheet and Lock-Up, is in effect a sub rosa plan, the complete control over which is placed in the hands of the Debtors' Lenders at the very early stages of these cases, without a disclosure statement or the benefit of an opportunity for the Creditors Committee to perform its fiduciary duties," Andrew B. Eckstein, Esq., at Blank Rome LLP, in New York, asserts. The Debtors presented the Plan Term Sheet to the Court on the bankruptcy filing. The Plan Term Sheet contemplates that on the Plan Effective Date, the Lenders will be fully paid by an exit facility of up to US$40,000,000 to US$45,000,000. The Plan Term Sheet also describes a Lock-Up between the Debtors and the Prepetition Lenders, which requires the Debtors to support the material terms of the Plan. "[T]hese circumstances require additional review and discovery," Mr. Eckstein maintains. Moreover, it is uncertain whether unsecured creditors will receive any distribution from the pre-negotiated Plan, Mr. Eckstein contends. The adjournment of the hearing will not affect the Debtors' ability to operate, as the Court has already granted them an interim funding of up to US$10,000,000, the Committee notes. Mr. Eckstein also argues that the DIP Financing Motion is objectionable on these grounds: (1) The imposition of Plan terms which turn over to the Lenders the debt and equity of the Debtors and complete control of the reorganization process at the inception of these cases is incongruous with the Bankruptcy Code provisions regarding disclosure and due process. (2) The Proposed Final DIP Order improperly seeks to skew the outcome of the Debtors' cases in favor of the DIP Lenders. It allows the Lenders to use the bankruptcy process to extract value from the Debtors' assets to the detriment of the unsecured creditors. (3) The Prepetition Lenders should not be allowed payment of professional fees and interest unless they can demonstrate that they are oversecured -- an issue which appears to be inconsistent with the Debtors' proposed Plan Term Sheet. In addition, the DIP Lenders have bargained for a US$900,000 underwriter fee which is equal to 3% of the DIP Facility. Because it is unclear if the Debtors will need the full US$30,000,000, the underwriter fee is strikingly high, Mr. Eckstein avers. (4) Avoidance actions are designed to benefit the unsecured creditors of the Debtors' estates. The DIP Lenders should not be granted a lien on Avoidance Actions and other causes of action. The granting of such liens will effectively shield the Prepetition Lenders from litigation. (5) Limitations on investigation of claims against Lenders should be stricken from the Proposed Final Order. The Proposed Final DIP Order provides that, other than US$25,000 that the Committee may use to investigate the liens of the Prepetition Lenders, no portion of the DIP Facility or the Carve-Out may be used to challenge the amount and validity of the Lenders' liens. (6) The waiver of the Debtors' rights under Section 506(c) of the Bankruptcy Code to recover reasonable and necessary costs of preserving and disposing of the Lenders' collateral should be denied. (7) The Committee should be provided with equal notice and information as is afforded to the Lenders. If the Court is inclined to place a cap on the Committee's ability to investigate the prepetition activities between the Debtors and the Prepetition Lenders, the Court should grant at least US$150,000 to the Committee in order to allow it the ability to carry out its fiduciary duties on behalf of the creditors of the Debtors' estates, Mr. Eckstein maintains. "A mere US$25,000 is woefully inadequate." He adds that the Proposed Final DIP Order is also objectionable in that it: -- seeks to grant the Lenders relief from the automatic stay five days after an Event of Default; -- states that the DIP Lenders will bot be subject to the doctrine of marshalling with respect to any Collateral; -- states that the exception under Section 552(b) of the Bankruptcy Code will not apply to the DIP Lenders with respect to proceeds, offspring or profits of any of the Collateral; -- seeks to grant the Prepetition Lenders other adequate protection as agreed upon by the Lenders and the Debtors. This provision must be clarified. Absent the hearing adjournment, the Committee further asked the Court to deny the Debtors' request. Debtors Talk Back The Debtors maintain that they intend to confirm a Chapter 11 plan of reorganization. Every creditor will have the opportunity to review that plan, cast a ballot, and object, if they so desire, Alfredo R. Perez, Esq., at Weil, Gotshal & Manges LLP, in Houston, Texas, avers. "The DIP Motion does not replace or even thwart the confirmation process." The Committee's contention that the DIP Motion effects a sub rosa plan ignores the fact that the Committee will have ample time at a later date to consider a Chapter 11 plan and whether that plan deserves confirmation, Mr. Perez asserts. Agreeing to promptly file a plan and disclosure statement in no way places the Debtors at the complete mercy of their lenders, Mr. Perez says. Rather, he states, it is prudent strategy that recognizes that value for all stakeholders will be maximized if the Debtors emerge from Chapter 11 as promptly as possible. Mr. Perez also contends the other objections raised by the Committee are misplaced. He emphasizes that: * The payment of the Prepetition Lenders' fees, and interest to the First Lienholders, represents an appropriate concession that those creditors deserve adequate protection against any diminution in the value of their collateral; * Although the Committee complains of the liens placed on Chapter 5 causes of action, the Debtors have neither assigned nor lost control of those claims. Those liens simply protect the DIP Lenders in the event of a default. Otherwise, any proceeds of those actions remain property of the estate and will be free and clear of all liens upon repayment of the DIP Facility; * It is hardly unreasonable for a lender to limit the amount it will pay for an investigation of its own affairs. Moreover, these estates should not be burdened by the expense and delay that would be occasioned by a lengthy fishing expedition in search of a claim; * Waivers of Section 506(c) surcharge rights are entirely appropriate because the DIP Lenders have offered new consideration to the Debtors' estates in exchange for this concession. Moreover, the Debtors' estates are poised for reorganization, not a liquidation, of the Prepetition Lenders' collateral. Thus, the policy concerns behind those waivers are not at issue. The Debtors have submitted a motion for financing under the best terms available, Mr. Perez says. "None of the Committee's objections refutes the essential fact that all creditors and other stakeholders will benefit from the survival of the Debtors as a going concern." The Debtors also assert that the Final DIP Hearing should not be adjourned. There is no statutory or other authority requiring the Debtors to adhere to any schedule suggested by the Committee, Mr. Perez says. The Debtors further contend that they are working with the Committee to provide information, subject to the execution of a confidentiality agreement that is satisfactory in form and substance to the Debtors. About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand- focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor- in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of US$354,000,000 and total debts of US$261,000,000. The Debtors submitted to the Court a Chapter 11 Plan of Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) PRC LLC: Inks Pact Recognizing Law Debenture as Collateral Agent ---------------------------------------------------------------- PRC LLC and its debtor-affiliates, The Royal Bank of Scotland plc, and Law Debenture Trust Company of New York entered into a stipulation to permit the execution and filing of documents and assignment of rights, powers and privileges from RBS to Law Debenture as collateral andadministrative agent under a Second Lien Credit Agreement. Before the bankruptcy filing, RBS served as the collateral and administrative agent for the First Lien Lenders under the US$160,000,000 Amended and Restated First Lien Credit and Guaranty Agreement, dated as of November 29, 2006, as amended and restated on December 20, 2006, entered into by the Debtors. RBS, however, tendered its resignation as agent, which became effective Dec. 3, 2007. The Debtors are also parties to a US$67,000,000 Amended and Restated Second Lien Credit and Guaranty Agreement, dated as of Nov. 29, 2006, as amended and restated on Dec. 20, 2006. As of the bankruptcy filing, about US$119,400,000 was outstanding under the First Lien Credit Agreement, and about US$67,000,000 was outstanding under the Second Lien Credit Agreement. With consent from PRC, LLC, the Lenders appointed Law Debenture as successor to RBS pursuant to a Successor Agent and Amendment Agreement dated Jan. 18, 2008. Due to time exigencies, certain documents evidencing the lien transfers could not be filed before the bankruptcy filing. In an abundance of caution, the parties agreed to enter into the Stipulation. The parties stipulate that they are authorized, and the Debtors are directed, to enter into, deliver and file any agreements, certificates and other documents, and take other actions necessary to reflect the resignation of RBS and the appointment of Law Debenture as administrative and collateral agent. The automatic stay under Section 362 of the Bankruptcy Code is modified to permit the execution and filing of the documents. Nothing in the Stipulation is construed to modify the terms of any of the Second Lien Credit Agreement and related documents, including the Intercreditor Agreement dated Nov. 29, 2006, or to modify the obligations of any of the Debtors under the Second Lien Loan Documents. About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand- focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor-in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of US$354,000,000 and total debts of US$261,000,000. The Debtors submitted to the Court a Chapter 11 Plan of Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) PRC LLC: Court Okays Services Agreement with Advanced Contact ------------------------------------------------------------- PRC LLC and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to assume a services contract with Advanced Contact Solutions Inc., nunc pro tunc to Feb. 20, 2008. The Debtors entered into a Master Services Agreement dated Feb. 1, 2006, with Advanced Contact. Under the Agreement, ACS provides representatives to answer inbound service-related communication from the customers of the Debtors' clients. The initial term of the Agreement is set to expire on Feb. 1, 2011. Alfredo R. Perez, Esq., at Weil, Gotshal & Manges LLP, in Houston, Texas, asserts that the assumption of the Agreement is necessary to avoid any significant disruption on the Debtors' business that would result if ACS ceased to provide services. "If the Debtors were unable to continue their relationship under the agreement, the Debtors would have to immediately invest significant capital by hiring and training additional service representatives and other production-related employees, in addition to acquiring new contact centers, telephone lines, and other business equipment to fulfill obligations under current contracts with clients," Mr. Perez argues. He further says that the Agreement is a substantial portion of the Debtors' gross revenues, pointing out that the Debtors raked in more than US$79,000,000 in gross revenue in 2007 based on work performed under the Agreement. The Debtors also obtained the Court's approval to pay: (i) ACS US$2,766,962 and US$4,310,306 on March 7 and April 4, 2008, for their prepetition defaults under the Agreement; and (ii) the balance of any cure amount in three monthly installments starting May 2008. However, in the event a Chapter 11 plan is confirmed, the Debtors are obliged to pay any remaining monthly installments on the day that plan takes effect, the Court ruled. According to Mr. Perez, the Debtors' ability to keep current on their postpetition obligations combined with the cure payments will serve as adequate assurance to ACS for future performance. Objections to the proposed assumption of the ACS Agreement were overruled by the Court, including the arguments raised by the Official Committee of Unsecured Creditors. The Creditors Committee expressed concerns over the unusually broad relief sought by the Debtors given the early stage of their Chapter 11 cases. Committee Files Conditional Objection The Creditors Committee advised the Court about the possibility of the Debtors' customers filing administrative claims in connection with a possible rejection of their contracts. The Committee urged the Court to include a ruling in its Final Assumption Order, releasing PRC, LLC, from any liability for those administrative claims other than payment in connection with the services provided. About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand- focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor- in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of US$354,000,000 and total debts of US$261,000,000. The Debtors submitted to the Court a Chapter 11 Plan of Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) RIZAL COMMERCIAL: Closes Offer of Unsecured Subordinated Debt ------------------------------------------------------------- On Feb. 22, 2008, Rizal Commercial Banking Corporation closed its second offering of unsecured subordinated debt eligible as lower Tier II capital, after completion of a two-week public offer period and domestic roadshows in Metro Manila and Cebu. The offering enjoyed good take-up from both institutional and retail investors, indicative of the Notes' appeal to a wide investor base. Subscriptions were received in excess of the maximum issue amount approved by the Bangko Sentral ng Pilipinas and allowed RCBC to issue a total of PHP7 billion of Notes. The Notes carry a coupon rate of 7.000% per annum and were issued at 100.00% of face value. The Notes will be used to refinance RCBC's first issue of lower Tier II capital, callable in July of this year, and to further strengthen RCBC's capital base. "I am glad with the investor turnout for our Capital Notes. This issuance will surely contribute to lowering the cost of funds of the Bank and boost the Bank's Capital Adequacy Ratio even higher," said RCBC President & CEO Lorenzo V. Tan. The Hongkong and Shanghai Banking Corporation Limited and ING Bank, N.V. (Manila Branch) acted as the Joint Lead Arrangers and Selling Agents. Multinational Investment Bancorporation also acted as Selling Agent. RCBC was Limited Selling Agent. HSBC, ING and MIB are Market Makers and HSBC is Public Trustee. Rizal Commercial Banking Corporation -- http://www.rcbc.com/ is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the bank's foreign exchange exposure. The Troubled Company Reporter-Asia Pacific on Feb. 8, 2008, reported that Fitch Ratings assigned a Long-term rating of 'B+' to Rizal Commercial Banking Corp's proposed issue of Philippine peso denominated subordinated notes due 2018, callable with step-up in 2013 of up to PHP7 billion. In Feb 4, 2008 report, TCR-AP said that Moody's Investors Service changed the outlook on RCBC's foreign currency hybrid tier 1 debt rating of B3 to positive from stable. The rating action does not affect the bank's B1 foreign currency long-term deposit ratings and foreign currency senior unsecured debt rating of Ba3, which maintain their positive outlook. The TCR-AP also reported on Oct. 24, 2006, that Standard & Poor's Ratings Services assigned its 'CCC' rating to RCBC's (B/Stable/B) US$100 million non-cumulative step-up callable perpetual capital securities. UNIONBANK OF THE PHILS: Books PHP2.9-Bil. Net Income in 2007 ------------------------------------------------------------ UnionBank of the Philippines registered a net income of PHP2.90 billion for the year 2007, 15.54% higher than PHP2.51 billion the Bank earned last year. Revenues across businesses improved 13.02% to PHP8.42 billion from PHP7.45 billion. Gross interest income on loans grew by 8.71% to PHP3.62 billion from PHP3.33 billion while service charges, fees and commissions stood at PHP0.85 billion, 18.06% more than PHP0.72 billion last year. The Bank's asset base grew to PHP187.99 billion in 2007 from PHP183.19 billion last year. Loan portfolio stood at PHP44.01 billion while deposits stood at PHP106.76 billion. Capital base rose by 32.46% to PHP26.36 billion from PHP19.90 billion due to strong internal capital generation and proceeds from the follow- on equity offering in the first half of the year. The Bank's capital adequacy ratio was at 16.44%, inclusive of credit, market and operational risk charges, which is above the minimum requirement of 10%. Non-performing loans ratio declined to 3.6% in 2007 from 4.9% in 2006 partly as a result of the Bank selling PHP2.0 billion worth of bad loans. The Bank also sold PHP282.0 million worth of real and other properties acquired. Today, the Bank has 166 branches, 186 onsite and offsite ATMs, a call center and Internet bank, http://www.unionbankph.com Union Bank of the Philippines -- http://www.unionbankph.com/-- offers a wide range of products and services to both corporate and individual clients. Its core businesses are payment services, corporate cash management foreign exchange, capital markets, corporate finance and consumer finance. It is also engaged in investment management, trust banking, insurance brokerage, currency brokerage, private banking, pre-need products marketing, investment banking and financial advisory and real property development and marketing via Union Properties, Inc. Moody's Investors Service gave UnionBank a 'Ba3' Senior Unsecured Debt and Long-Term Bank Deposits Ratings effective May 25, 2006. The bank also carries Moody's bank financial strength rating of D with stable outlook. ================= S I N G A P O R E ================= ODYSSEY RE: Earns US$587.2MM in Fiscal Year Ended Dec. 31, 2007 --------------------------------------------------------------- Odyssey Re Holdings Corp. reported net income available to common shareholders of US$243.0 million for the quarter ended Dec. 31, 2007 compared to US$83.8 million for the same quarter of 2006. Operating income after tax was US$59.5 million for the fourth quarter of 2007, compared to US$65.4 million for the fourth quarter of 2006. Included in the fourth quarter 2007 net income available to common shareholders were after-tax net realized gains of US$183.5 million compared to US$18.4 million for the fourth quarter of 2006. For the year ended Dec. 31, 2007, net income available to common shareholders was US$587.2 million compared to US$499.6 million, or US$6.93 per diluted share, for the year ended Dec. 31, 2006. Operating income after tax was US$236.8 million for the year ended Dec. 31, 2007, compared to operating income after tax of US$268.0 million for the year ended Dec. 31, 2006. Gross premiums written for the quarter ended December 31, 2007 were US$525.3 million, a decrease of 2.5% compared to US$538.9 million for the quarter ended Dec. 31, 2006. This reflects a decline of 3.1% in the Company's worldwide reinsurance premiums compared to the fourth quarter of 2006, and a 1.4% decrease in the Company's specialty insurance premiums. Net premiums written during the fourth quarter of 2007 were US$482.4 million, a decrease of 5.2% compared to fourth quarter of 2006 net premiums written of US$508.7 million. Gross premiums written for the year ended Dec. 31, 2007 were US$2.28 billion, compared to US$2.34 billion for the year ended Dec. 31, 2006, a 2.3% decrease. Reinsurance gross premiums written decreased by 4.8%, offset by a 3.5% increase in insurance premiums, principally related to the company's U.S. operations. Net premiums written over the same period decreased to US$2.09 billion from US$2.16 billion. The combined ratio for the year ended Dec. 31, 2007 was 95.5%, compared to 94.4% for the year ended Dec. 31, 2006, while the combined ratio for the fourth quarter of 2007 was 93.7%, compared to 94.8% for the fourth quarter of 2006. Net investment income amounted to US$329.4 million and US$77.0 million for the year and fourth quarter of 2007, respectively, compared to US$319.5 million, which excludes net realized gains of an equity investee included in net investment income, and US$84.0 million for the year and fourth quarter of 2006, respectively. Net pre-tax realized gains were US$539.1 million and US$282.4 million for the year and fourth quarter of 2007, respectively, compared to US$356.8 and US$28.3 million for the year and fourth quarter of 2006, respectively. The realized gains for the year ended Dec. 31, 2006 include realized gains of an equity investee included in net investment income in the consolidated statement of operations of US$167.6 million. For the year ended Dec. 31, 2007, the company sold US$175.8 million notional amount of credit default swaps for gross proceeds of US$27.2 million, and recognized realized gains of US$25.3 million. In addition, the net mark-to-market gain recorded for the year ended Dec. 31, 2007 on the remaining US$5.0 billion notional amount of credit default swaps was US$273.0 million, resulting in total realized gains of US$298.3 million for the year ended Dec. 31, 2007. From January 1 through Feb. 15, 2008, the Company sold an additional US$670.0 million notional amount of credit default swaps (including virtually all of its credit default swaps referenced to U.S. bond guarantors) for gross proceeds of US$161.0 million, with realized gains on the sale of US$26.8 million (gains in excess of the mark-to-market value as of Dec. 31, 2007). The net mark-to-market gain for the Jan. 1 to Feb. 15, 2008 period on the US$4.4 billion notional amount of credit default swaps remaining at Feb. 15, 2008 (including 2008 purchases of US$47.5 million notional amount of credit default swaps for US$1.4 million) was US$152.6 million, representing total net gains related to credit default swaps for this period of US$179.4 million. The fair market value of the credit default swaps at Feb. 15, 2008 was US$327.3 million. The credit default swaps are extremely volatile, and as a result their market value may vary dramatically either up or down in short periods. Their ultimate value will, therefore, only be known upon their disposition. For the quarter ended Dec. 31, 2007, net cash flow from operations was US$4.1 million, a US$123.8 million decrease from cash flow of US$127.9 million for the quarter ended Dec. 31, 2006. The decrease in cash flow from operations is principally attributable to lower premium volume, a decline in reinsurance recoveries and an increase in taxes paid. In the fourth quarter of 2007, OdysseyRe paid a cash dividend of US$0.0625 per common share on Dec. 28, 2007 to common shareholders of record on Dec. 14, 2007. Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. Odyssey Re operates through its subsidiaries, Odyssey America Reinsurance Corp., Hudson Insurance Co., Hudson Specialty Insurance Co. Clearwater Insurance Co., Newline Underwriting Management Limited and Newline Insurance Co. Ltd. The Company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * As reported in the Troubled Company Reporter on Nov. 15, 2006, Standard & Poor's affirmed its 'BBB-' counterparty credit and 'BB' preferred stock ratings on Odyssey Re Holdings Corp. and removed them from CreditWatch negative. Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. Odyssey Re operates through its subsidiaries, Odyssey America Reinsurance Corp., Hudson Insurance Co., Hudson Specialty Insurance Co. Clearwater Insurance Co., Newline Underwriting Management Limited and Newline Insurance Co. Ltd. The Company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * To date, Standard & Poor's affirmed its 'BB' preferred stock ratings on Odyssey Re Holdings Corp. ODYSSEY RE: To Pay US$0.0625 Per Share Dividend on March 28 ----------------------------------------------------------- Odyssey Re Holdings Corp.'s Board of Directors has declared a quarterly cash dividend of US$0.0625 per common share, payable on March 28, 2008, to shareholders of record on March 14, 2008. In addition, the Board has declared a cash dividend of US$0.5078125 per share on OdysseyRe's 8.125% non-cumulative Series A preferred shares and US$0.4485156 per share on OdysseyRe's floating rate non-cumulative Series B preferred shares. The dividends will be payable on April 20, 2008 to Series A and Series B preferred shareholders of record on March 31, 2008. Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. Odyssey Re operates through its subsidiaries, Odyssey America Reinsurance Corp., Hudson Insurance Co., Hudson Specialty Insurance Co. Clearwater Insurance Co., Newline Underwriting Management Limited and Newline Insurance Co. Ltd. The Company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * To date, Standard & Poor's affirmed its 'BB' preferred stock ratings on Odyssey Re Holdings Corp. REFCO INC: SEC Sues Ex-CEO Bennett for Orchestrating Fraud ---------------------------------------------------------- The U.S. Securities and Exchange Commission filed on Feb. 19 a civil injunctive action in the United States District Court for the Southern District of New York against Phillip R. Bennett, the former chairman and chief executive officer of Refco Inc. and its corporate predecessor, Refco Group Ltd. The Commission's complaint alleges that Mr. Bennett orchestrated a scheme that periodically concealed hundreds of millions of dollars owed to Refco by a private entity that he controlled. The public revelation of Mr. Bennett's scheme in October 2005, two months after the company's initial public offering of common stock, caused hundreds of millions of dollars in losses to Refco shareholders. The complaint also alleges that Mr. Bennett directed practices that artificially inflated Refco's financial results. As a result, the complaint alleges, Mr. Bennett violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Exchange Act Rules 10b-5, 13b2-1, and 15d 14, and aided and abetted Refco's violations of Sections 13(b)(2)(A), 13(b)(2)(B), and 15(d) of the Exchange Act and Exchange Act Rules 15d-2 and 15d-13. According to the complaint, from at least 1998 to October 2005, Mr. Bennett's scheme periodically concealed debt owed to Refco by Refco Group Holdings, Inc., a non-Refco entity that he controlled. The debt was primarily the result of trading losses and operating expenses that Refco transferred over time to RGHI. Refco utilized a series of short-term loans that temporarily transferred the debt to third parties immediately prior to the ends of Refco fiscal periods. A few days after the fiscal periods ended, the transactions were reversed, and the debt was transferred back to RGHI. The Commission's complaint alleges that Mr. Bennett directed the fiscal period-end transactions and took certain actions to implement them, including executing many of the documents used in those transactions. The Commission's complaint also alleges that Mr. Bennett instituted practices that artificially inflated Refco's reported financial results in 2005. The practices involved Refco recording fictitious interest income and income from sham foreign exchange transactions. The inflation of financial results was undertaken by Mr. Bennett to make Refco more attractive to potential investors. The Commission's complaint further alleges that, in 2005, Refco filed with the Commission and provided to investors registration statements and periodic reports that contained materially false and misleading misstatements and omissions. The filings failed to disclose the debt and the period end transactions, and some of the filings reported income that had been fraudulently inflated. Mr. Bennett signed the registrations statements and periodic filings while knowing, or reckless in not knowing, that the filings were materially false and misleading. Moreover, Mr. Bennett explicitly certified the accuracy of the disclosures and financial statements in the periodic filings. The complaint seeks a permanent injunction enjoining Mr. Bennett from violating Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act, and Exchange Act Rules 10b-5, 13b2-1, and 15d 14, and from aiding and abetting violations of Sections 13(b)(2)(A), 13(b)(2)(B), and 15(d) of the Exchange Act and Exchange Act Rules 15d-2 and 15d-13. The complaint also seeks payment by Mr. Bennett of unjust enrichment that he received as a result of his actions, with prejudgment interest thereon, and imposition of civil money penalties against him pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act. The U.S. Attorney's Office for the Southern District of New York announced February 15, that Mr. Bennett has pleaded guilty to all twenty counts of a superseding indictment previously returned against him and charging him with conspiracy, securities fraud, making false filings with the Commission, wire fraud, making false statements to Refco's auditors, bank fraud, and money laundering, for his actions in connection with the Refco fraud. The Commission acknowledged the assistance and cooperation of the Office of the United States Attorney for the Southern District of New York, the United States Postal Inspection Service, and the Commodity Futures Trading Commission. The Commission's investigation is continuing. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. REFCO INC: Ex-Finance Chief Robert Trosten Admits Fraud Charges --------------------------------------------------------------- Robert Trosten, Refco Inc.'s former chief financial officer, pleaded guilty to charges that includes conspiracy to commit securities fraud, wire fraud, bank fraud, money laundering and making false filings to the U.S. Securities and Exchange Commission, Edith Honan and Paritosh Bansal write for Reuters. "I take full responsibility for my conduct and my actions," Mr. Trosten was quoted by Reuters as saying before Judge Naomi Buchwald of the U.S. District Court for the Southern District of New York." I apologize to my family and those I have harmed by my conduct, which I sincerely and deeply regret." "He deeply regrets his involvement in these fraudulent activities, and is attempting to rectify the misjudgment that he made... by cooperating with the government," Mr. Trosten's lawyers was quoted by Reuters as saying. Mr. Trosten has agreed to serve as a witness in trials of other defendants in the case as part of his guilty plea, Reuters reports. He previously pleaded not guilty. Mr. Trosten's guilty plea followed a similar move by former Refco CEO Phillip Bennet. Messrs. Bennett and Trosten were set to face trial on March 17, 2008, along with Tone Grant, Refco's former president. Mr. Trosten will appear in court in February 2009. Bennett's Guilty Plea As reported on Feb. 20, 2008, Bennett pleaded guilty to 20 charges that includes conspiracy to commit securities fraud, wire fraud, bank fraud, money laundering and making false filings to the U.S. Securities and Exchange Commission. Mr. Bennett faces a maximum 315 years in prison under federal sentencing guidelines as well as forfeiture of US$2.4 billion in assets. Mr. Bennett's sentencing is set for May 20, 2008. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. SCOTTISH RE: New Strategic Focus Didn't Affect Ratings, S&P Says ---------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings and CreditWatch negative status on Scottish Re Group Ltd. (B/Watch Neg/--) and related entities were not affected by the company's announcement of a new strategic focus recognizing its deteriorated financial strength. On Jan. 31, 2008, S&P lowered its ratings on Scottish Re and placed them on CreditWatch with negative implications because of the company's continuing exposure to increasing investment losses and meaningful risk of losing some reserve credits secured through Ballantyne Re plc. These concerns are not affected by the company's announcement. As previously stated, S&P will resolve the CreditWatch when it completes the process of refining its view of expected losses and assesses the risk of the company incurring loss of reserve credits. If and when the company disposes of certain lines of business, the proceeds would likely provide only a modest offset to the erosion of capital caused by its investments in subprime and Alt-A MBS. In addition, in S&P's recent action, it noted that the "deterioration in the company's financial condition has severely disrupted Scottish Re's ability to generate new [insurance] business.." This observation anticipated the company's prospective focus on leveraging its non-risk-taking competencies to drive shareholder value. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a holding company organized under the laws of the Cayman Islands with its principal executive office in Bermuda. Scottish Re has operating businesses in Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. SCOTTISH RE: Subprime Losses Cue Fitch's Rating Cut & WatchNeg -------------------------------------------------------------- Fitch Ratings has downgraded Scottish Re Group Limited's Issuer Default Rating to 'B' from 'BB-' and the Insurer Financial Strength ratings of its primary operating subsidiaries to 'BB' from 'BBB-'. All ratings have been placed on Rating Watch Negative with the exception of Scottish Re Limited, which has been placed on Rating Watch Evolving. The actions follow the group's announcement of a change in strategic focus. The downgrades reflect Fitch's heightened concern over continued subprime losses in the consolidated investment portfolio, uncertainty over the company's strategic direction and the potential impact to the Reg. XXX securitization structures. In addition, the ratings of the holding company and the United States operating companies have been placed on Rating Watch Negative. The IFS rating of Scottish Re Limited has been placed on Rating Watch Evolving reflecting its plans to pursue a disposition of that business. The resolution of the Rating Watch will depend on the success of that pursuit and the financial strength of a potential buyer. Fitch has downgraded and placed these ratings on Rating Watch Negative: Scottish Re Group Ltd.: -- Issuer Default Rating to 'B' from 'BB-'; -- 7.25% non-cumulative perpetual preferred stock to 'CCC+/RR6' from 'B/RR6'. Scottish Annuity & Life Insurance Company (Cayman) Ltd.: --Insurer Financial Strength rating to 'BB' from 'BBB-'. Scottish Re (U.S.) Inc.: -- Insurer Financial Strength rating to 'BB' from 'BBB-'. Stingray Pass-Through Trust: -- US$325 million 5.902% collateral facility securities due Jan. 12, 2015, to 'BB' from 'BBB-'. Fitch has downgraded and placed this rating on Rating Watch Evolving: Scottish Re Limited: -- Insurer Financial Strength rating to 'BB' from 'BBB-'. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a holding company organized under the laws of the Cayman Islands with its principal executive office in Bermuda. Scottish Re has operating businesses in Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. SCOTTISH RE: Board Alters Strategies, May Sell Non-Core Assets -------------------------------------------------------------- The Board of Directors of Scottish Re Group Limited determined to alter the company's strategic focus. The change in strategy is a direct response to prevailing market conditions and other business challenges including: * the continuing deterioration in the market for sub-prime and Alt-A residential mortgage-backed securities and the resulting adverse impact this has had, and will likely continue to have, on the company's consolidated investment portfolio; * the ratings action taken by Standard & Poor's on Jan. 31, 2008, lowering the financial strength ratings of the company's operating subsidiaries from BB+ to BB (marginal) and placing the ratings on CreditWatch with negative implications, as well as the negative outlook placed on the company's financial strength ratings by other rating agencies, with the resulting material negative impact on the company's ability to achieve its goal of an A- or better rating by the middle of 2009; and * the material negative impact of ratings declines and negative outlooks by rating agencies on the company's ability to grow its life reinsurance businesses and maintain its core competitive capabilities. In light of these circumstances, the Board instructed management to prepare an assessment of the various strategic alternatives that might be available to the company to maximize shareholder value. In that regard, on Jan. 21, 2008 the Board established a Special Committee of the Board to evaluate the alternatives developed by management. The Special Committee does not include any Board members designated for election by SRGL Acquisition, LDC (an affiliate of Cerberus Capital Management, L.P.) nor MassMutual Capital Partners LLC (or their affiliates), who together are the Company's majority shareholders. The Special Committee engaged a financial advisor and legal counsel to assist in their evaluation process. Subsequent to various meetings and upon careful consideration, the Special Committee recommended to the Board, at its regularly scheduled meeting on Feb. 21, 2008, to accept management's revised business strategy. The Board unanimously adopted the Special Committee's recommendations and the company will now actively pursue these key strategies: * pursue dispositions of the company's non-core assets or lines of business, including the International Life Reinsurance segment and the Wealth Management business; * develop, through strategic alliances or other means, opportunities to maximize the value of the company's core competitive capabilities within the North American Life Reinsurance segment, including mortality assessment and treaty administration; and * rationalize the company's cost structure to preserve capital and liquidity. There can be no assurance that any of these key strategies will be successful and each of them may be subject to review by insurance regulators. The company will report further developments regarding any strategic actions only as circumstances warrant. As a result of the decision by the Board to pursue the revised strategies and in recognition of the change in the company's circumstances and the impact thereof on the company's growth prospects, the company has established a retention program for certain essential employees that provides financial incentives to remain with the company. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. =============== T H A I L A N D =============== TATA MOTORS: Working on Small-Car Project in Thailand ----------------------------------------------------- Tata Motors Ltd. is working on a Thai small car project, which may build on the Nano platform, the Economic Times reports, citing Chairman Rata Tata. Tata Motors launched on Jan. 10 the Nano, said to be the world's cheapest car at around INR1 lakh (US$2,500). The four-door Nano boasts of a roomy passenger compartment and fuel-efficient engine, among others. The media release for the January launching said the car will be sold in India later this year. The Thai project, however, is being looked at separately, Mr. Tata told ET. It is difficult to say whether it will be Nano or a variation, he added. Tata Motors produces and sells pickup trucks in Thailand. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 22, 2008, Tata intends to sell a new pickup truck model in Thailand next month. By the end of this year, the company also plans to start selling pickup trucks there that use natural gas as the main fuel. 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. TRUE CORP: Moody's Affirms B1 Ratings; Outlook Remains Negative ---------------------------------------------------------------- Moody's Investors Service has affirmed the B1 corporate family ratings and senior unsecured bond ratings of True Corporation Public Company Limited. The outlook on the ratings remains negative. "The affirmation is in response to True Corp.'s recent announcement that it is considering raising up to THB20 billion to, in part, fund up to THB4 billion buy-back of shares in BITCO from its 30% shareholder, Charoen Pokphand Group," say Laura Acres, a Moody's Vice President. "The proposed financing is a contingency plan in the event that shareholders, at the April 2008 AGM, do not give their approval to extend the term on the buy-back option from June 2008 to June 2009," says Acres, also Moody's Lead Analyst for the company, adding, "Given the tight headroom under True Corp's financial covenants, the planned debt raising will also need lenders' approval." It remains uncertain at this stage as to the shareholders' decision and whether True Corp will get the necessary lenders' approval for raising additional debt. "However, Moody's considers that any increase in debt outstanding in the near term is likely to place further negative pressure on the ratings as it will impact True Corp's financial profile with little headroom to meet the financial covenants of its loan facilities," says Acres. Moody's will continue to monitor the developments and evaluate the resultant rating impact. Headquartered in Bangkok, True Corp is an integrated provider of fixed line, broadband, Internet, mobile services and cable TV in Thailand. True Corp. is listed on the Thailand Stock Exchange and the CP Group is the major shareholder with approximately 30% shareholding. Its wireless business is predominantly conducted through its 75.3% owned (post equity injection) True Move, Thailand's third largest mobile telecommunications operator; and its pay TV business is conducted through its 91.8% owned True Visions Public Company Limited (True Visions), which is currently the only nationwide provider of pay television services in the country. TRUE MOVE: Moody's Retains B1 Ratings & Negative Outlook --------------------------------------------------------- Moody's Investors Service has affirmed the B1 corporate family ratings and senior unsecured bond ratings of True Move Company Limited. The outlook on the ratings remains negative. "The affirmation is in response to True Corp's recent announcement that it is considering raising up to THB20 billion to, in part, fund up to THB4 billion buy-back of shares in BITCO from its 30% shareholder, Charoen Pokphand Group," say Laura Acres, a Moody's Vice President. "The proposed financing is a contingency plan in the event that shareholders, at the April 2008 AGM, do not give their approval to extend the term on the buy-back option from June 2008 to June 2009," says Acres, also Moody's Lead Analyst for the company, adding, "Given the tight headroom under True Corp's financial covenants, the planned debt raising will also need lenders' approval." It remains uncertain at this stage as to the shareholders' decision and whether True Corp will get the necessary lenders' approval for raising additional debt. "However, Moody's considers that any increase in debt outstanding in the near term is likely to place further negative pressure on the ratings as it will impact True Corp's financial profile with little headroom to meet the financial covenants of its loan facilities," says Acres. Moody's will continue to monitor the developments and evaluate the resultant rating impact. Headquartered in Bangkok, True Corp is an integrated provider of fixed line, broadband, Internet, mobile services and cable TV in Thailand. True Corp is listed on the Thailand Stock Exchange and the CP Group is the major shareholder with approximately 30% shareholding. True Corp. owns 75.3% of True Move, which primarily conducts the former's wireless business. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- February 27-28, 2008 Euromoney Institutional Investor 6th Annual Distressed Investing Forum Union League Club, New York, New York Web site: http://www.euromoneyplc.com/ March 6-8, 2008 ALI-ABA Fundamentals of Bankruptcy Law Mandalay Bay Resort, Las Vegas, Nevada Web site: http://www.ali-aba.org/ March 8-10, 2008 American Bankruptcy Institute Conrad Duberstein Moot Court Competition St. John's University School of Law, New York Web site: http://www.abiworld.org/ March 12-14, 2008 Moody's Investors Service Corporate Credit Analysis Series: General Corporate Credit Sydney, Australia Web site: http://www.moodys.com/trainingservices March 17-18, 2008 Moody's Investors Service High Yield and Leveraged Finance Credit Analysis Sydney, Australia Web site: http://www.moodys.com/trainingservices March 19, 2008 Turnaround Management Association South Florida Dinner Bankers Club of Miami, Florida Telephone: 561-882-1331 Web site: http://www.turnaround.org/ March 25, 2008 Turnaround Management Association Luncheon - Maggie Good Centre Club, Tampa, Florida Telephone: 561-882-1331 Web site: http://www.turnaround.org/ March 25-29, 2008 Turnaround Management Association - Australia TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org March 27-30, 2008 Norton Institutes on Bankruptcy Law Bankruptcy Litigation Seminar II Las Vegas, Nevada Web site: http://www.nortoninstitutes.org/ April 2-4, 2008 Moody's Investors Service Fundamentals of Debt Capital Markets and Instruments Sydney, Australia Web site: http://www.moodys.com/trainingservices April 3, 2008 International Women's Insolvency & Restructuring Confederation Annual Spring Luncheon Renaissance Hotel, Washington, District of Columbia Telephone: 703-449-1316 Web site: http://www.iwirc.org April 3, 2008 American Bankruptcy Institute Nuts and Bolts for Young Practitioners - East The Renaissance, Washington, District of Columbia Web site: http://www.abiworld.org/ April 3-6, 2008 American Bankruptcy Institute 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Web site: http://www.abiworld.org/ April 7-8, 2008 Moody's Investors Service Introduction to Collateralised Debt Obligations (CDOs) Sydney, Australia Web site: http://www.moodys.com/trainingservices April 10-11, 2008 Moody's Investors Service Introduction to Credit Derivatives - Structures & Applications Singapore Web site: http://www.moodys.com/trainingservices April 14-15, 2008 Moody's Investors Service Corporate Credit Rating Analysis Beijing, China Web site: http://www.moodys.com/trainingservices April 17-18, 2008 Moody's Investors Service Corporate Credit Rating Analysis Shanghai, China Web site: http://www.moodys.com/trainingservices April 25-27, 2008 National Association of Bankruptcy Judges NABT Spring Seminar Eldorado Hotel & Spa, Santa Fe, New Mexico Web site: http://www.nabt.com/ May 1-2, 2008 American Bankruptcy Institute Debt Symposium Hilton Garden Inn, Champagne/Urbana, Illinois Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ May 5-6, 2008 Moody's Investors Service Islamic Bank Analysis Hong Kong Web site: http://www.moodys.com/trainingservices May 7-9, 2008 Moody's Investors Service Bank Credit Risk Analysis Hong Kong Web site: http://www.moodys.com/trainingservices May 9, 2008 American Bankruptcy Institute Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton U.S. Custom House, New York Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ May 12, 2008 American Bankruptcy Institute New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center, New York Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ May 12-14, 2008 Moody's Investors Service Bank Credit Risk Analysis Sydney, Australia Web site: http://www.moodys.com/trainingservices May 13-16, 2008 American Bankruptcy Institute Litigation Skills Symposium Tulane University, New Orleans, Louisiana Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ May 18-20, 2008 International Bar Association 14th Annual Global Insolvency & Restructuring Conference Stockholm, Sweden Web site: http://www.ibanet.org/ May 20-21, 2008 Moody's Investors Service Corporate Credit Rating Analysis Seoul, South Korea Web site: http://www.moodys.com/trainingservices May 22, 2008 Moody's Investors Service Financial Statement Adjustments and Ratios Seoul, South Korea Web site: http://www.moodys.com/trainingservices June 2-4, 2008 Moody's Investors Service Corporate Credit Analysis Series: General Corporate Credit Singapore Web site: http://www.moodys.com/trainingservices June 5, 2008 Moody's Investors Service Financial Statement Adjustments and Ratios Hong Kong Contact: http://www.moodys.com/trainingservices June 4-7, 2008 Association of Insolvency & Restructuring Advisors 24th Annual Bankruptcy & Restructuring Conference J.W. Marriott Spa and Resort, Las Vegas, Nevada Web site: http://www.airacira.org/ June 12-14, 2008 American Bankruptcy Institute 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Web site: http://www.abiworld.org/ June 18-20, 2008 Moody's Investors Service Bank Credit Risk Analysis Singapore Web site: http://www.moodys.com/trainingservices June 19-21, 2008 ALI-ABA Partnerships, LLCs, and LLPs: Uniform Acts, Taxation, Drafting, Securities, and Bankruptcy Omni Hotel, San Francisco, California Web site: http://www.ali-aba.org/ June 23, 2008 Moody's Investors Service Hedge Fund Analysis Singapore Web site: http://www.moodys.com/trainingservices June 24-25, 2008 Moody's Investors Service Sovereign and Sub-Sovereign Analysis Singapore Web site: http://www.moodys.com/trainingservices June 26, 2008 Moody's Investors Service Economic Capital: Pillar II and ICAAP under Basel II Singapore Web site: http://www.moodys.com/trainingservices June 26-29, 2008 Norton Institutes on Bankruptcy Law Western Mountains Bankruptcy Law Seminar Jackson Hole, Wyoming Web site: http://www.nortoninstitutes.org/ July 1-2, 2008 Moody's Investors Service Corporate Credit Rating Analysis Sydney, Australia Web site: http://www.moodys.com/trainingservices July 3, 2008 Moody's Investors Service Financial Statement Adjustments and Ratios Sydney, Australia Web site: http://www.moodys.com/trainingservices July 4, 2008 Moody's Investors Service Analyzing and Rating Hybrid Securities Sydney, Australia Web site: http://www.moodys.com/trainingservices July 10-13, 2008 American Bankruptcy Institute 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Web site: http://www.abiworld.org/events July 31 - Aug. 2, 2008 American Bankruptcy Institute 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Web site: http://www.abiworld.org/ August 16-19, 2008 American Bankruptcy Institute 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Web site: http://www.abiworld.org/ August 20-24, 2008 National Association of Bankruptcy Judges NABT Convention Captain Cook, Anchorage, Alaska Web site: http://www.nabt.com/ September 4-5, 2008 American Bankruptcy Institute Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Web site: http://www.abiworld.org/ September 4-6, 2008 American Bankruptcy Institute Southwest Bankruptcy Conference Four Seasons, Las Vegas, Nevada Web site: http://www.abiworld.org/ September 8, 2008 Moody's Investors Service Financial Statement Adjustments and Ratios Hong Kong Web site: http://www.moodys.com/trainingservices September 22-23, 2008 Moody's Investors Service High Yield and Leveraged Finance Credit Analysis Singapore Web site: http://www.moodys.com/trainingservices September 24-26, 2008 International Women's Insolvency & Restructuring Confederation IWIRC 15th Annual Fall Conference Scottsdale, Arizona Web site: http://www.ncbj.org/ September 24-27, 2008 National Conference of Bankruptcy Judges National Conference of Bankruptcy Judges Desert Ridge Marriott, Scottsdale, Arizona Web site: http://www.iwirc.org/ October 9, 2008 Turnaround Management Association TMA Luncheon - Chapter 11 University Club, Jacksonville, Florida Web site: http://www.turnaround.org/ October 15-16, 2008 Moody's Investors Service High Yield and Leveraged Finance Credit Analysis Seoul, South Korea Web site: http://www.moodys.com/trainingservices October 22-23, 2008 Moody's Investors Service Securities Firms Analysis \u2013 Including Broker-Dealers Hong Kong Web site: http://www.moodys.com/trainingservices October 24, 2008 Moody's Investors Service Hedge Fund Analysis Hong Kong Web site: http://www.moodys.com/trainingservices October 27, 2008 Moody's Investors Service Economic Capital: Pillar II and ICAAP under Basel II Hong Kong Web site: http://www.moodys.com/trainingservices October 28-29, 2008 Moody's Investors Service Sovereign and Sub-Sovereign Analysis Hong Kong Web site: http://www.moodys.com/trainingservices October 28-29, 2008 Moody's Investors Service High Yield and Leveraged Finance Credit Analysis Hong Kong Web site: http://www.moodys.com/trainingservices October 28-31, 2008 Turnaround Management Association - Australia TMA 2008 Annual Convention New Orleans Marriott, New Orleans, LA, USA e-mail: livaldi@turnaround.org November 4-5, 2008 Moody's Investors Service Corporate Credit Rating Analysis Hong Kong, China Web site: http://www.moodys.com/trainingservices November 11-12, 2008 Moody's Investors Service Introduction to Collateralised Debt Obligations (CDOs) Hong Kong Web site: http://www.moodys.com/trainingservices November 13-14, 2008 Moody's Investors Service Introduction to Credit Derivatives-Structures & Applications Hong Kong Web site: http://www.moodys.com/trainingservices November 17-19, 2008 Moody's Investors Service Fundamentals of Debt Capital Markets and Instruments Singapore Web site: http://www.moodys.com/trainingservices November 17-18, 2008 Moody's Investors Service Corporate Credit Rating Analysis Beijing, China Web site: http://www.moodys.com/trainingservices November 20-21, 2008 Moody's Investors Service Corporate Credit Rating Analysis Shanghai, China Web site: http://www.moodys.com/trainingservices December 3-5, 2008 American Bankruptcy Institute 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Web site: http://www.abiworld.org/ TBA 2008 INSOL Annual Pan Pacific Rim Conference Shanghai, China Web site: http://www.insol.org/ May 7-10, 2009 American Bankruptcy Institute 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Web site: http://www.abiworld.org/ June 11-13, 2009 American Bankruptcy Institute Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Web site: http://www.abiworld.org/ June 21-24, 2009 International Association of Restructuring, Insolvency & Bankruptcy Professionals 8th International World Congress TBA Web site: http://www.insol.org/ July 16-19, 2009 American Bankruptcy Institute Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Web site: http://www.abiworld.org/ September 10-12, 2009 American Bankruptcy Institute 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Web site: http://www.abiworld.org/ October 5-9, 2009 Turnaround Management Association - Australia TMA 2009 Annual Convention JW Marriott Desert Ridge, Phoenix, AZ, USA e-mail: livaldi@turnaround.org December 3-5, 2009 American Bankruptcy Institute 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ October 4-8, 2010 Turnaround Management Association - Australia TMA 2010 Annual Convention JW Marriot Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org Beard Audio Conferences Coming Changes in Small Business Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Audio Conferences CD Beard Audio Conferences Distressed Real Estate under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changes to Cross-Border Insolvencies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Healthcare Bankruptcy Reforms Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Calpine's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Dana's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Reverse Mergers-the New IPO? Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences High-Yield Opportunities in Distressed Investing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Distressed Market Opportunities Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Homestead Exemptions under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences KERPs and Bonuses under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Diagnosing Problems in Troubled Companies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Equitable Subordination and Recharacterization Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Azela Jane Taladua, Rousel Elaine Tumanda, Valerie Udtuhan, Tara Eliza Tecarro, Marjorie C. Sabijon, Frauline Abangan, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***