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 Friday, February 29, 2008, Vol. 9, Issue 43 Headlines A U S T R A L I A CHURCHERS PTY: Liquidator to Present Wind-Up Report on March 14 CONSTELLATION BRANDS: Appoints Peter Perez to Board of Directors DEE WHY: Liquidator to Present Wind-Up Report on March 18 ESPOSITO FASHION: Members & Creditors to Meet on March 14 GRAY & MULRONEY: Members' Final Meeting Set for March 20 GRIFFIN COAL: Moody's Cuts Ba2 Ratings to Ba3; Outlook stable ICA SOLUTION: Members to Receive Wind-Up Report on March 7 INFORMATION SOLUTION: Joint Meeting Slated for March 14 JAN YEE: Members to Hear Wind-Up Report on March 12 RIXON ENTERPRISES: Appoints Bettles & Carter as Liquidators SUNCORP: First-Half Net Profit Falls 28% to AU$382 Million TARRANTS PTY: Placed Under Voluntary Liquidation TESSMANN CONCRETING: Appoints Worrell & Peldan as Liquidators C H I N A , H O N G K O N G & T A I W A N ABC LEARNING: Directors Cut Stakes on Margin Calls AGRICULTURAL BANK: Surges in Intermediate Business CHINA EASTERN: Singapore Airlines Reiterates HK$3.80/Share Bid HERCULES INC: Appoints Allan H. Cohen to Board of Directors NOBLE GROUP: Moody's Affirms Ba1 Ratings; Outlook Stable ROYAL CARIBBEAN: Earns US$71 Mil. in Quarter ended Dec. 31, 2007 SHANGHAI PUDONG: To Raise CNY32.5 Billion from Share Sale I N D I A AXIS BANK: Ties Up with SunTec for Billing Software EASTMAN KODAK: Dennis Strigl Elected to Board of Directors ELAN CORP: Moody's Changes Outlook to Positive; Holds B3 Ratings GENERAL MOTORS: Fitch Holds IDR at 'B' with Negative Outlook ROLLATAINERS LTD: Allots 90,00,000 Shares to W.L.D. Investments ROLLATAINERS LTD: Books INR4.7 Loss in Oct.-Dec. 2007 RPG CABLES: Narrows Oct.-Dec. Net Loss to INR17.9 Million RPG LIFE: Swings to INR7-Mil. Net Profit in Oct.-Dec. 2007 SPICEJET LTD: Set to Commence Overseas Flights in Three Years TATA STEEL: Taps SMS Demag to Set Up Converter Shop, CSP Plant I N D O N E S I A BANK DANAMON: Shares to Rise on Dismissal of BII Merger BANK INTERNASIONAL: Aims More Than 20% Up in Loan This Year J A P A N IHI CORP: Report Says Executives Aware of Losses JAPAN AIRLINES: May Shift to A350 on Boeing Delivery Delays NOMURA ALTERNATIVE: 10 Certificates Acquires Moody's Rating Cuts SPANSION INC: Fitch Maintains Issuer Default Rating at 'B-' K O R E A DURA AUTOMOTIVE: Creditor Balks at Confirmation of Chap. 11 Plan PHOTRONICS: Moody's Retains B1 Rating; Gives Negative Outlook TAEYANG METAL: Declares Annual Cash Dividend WOORI TECHNOLOGY: Amends Issuance of Fifth Bonds with Warrants M A L A Y S I A MANGIUM: Subsidiary Receives Writ of Summons from Alliance Bank MEGAN MEDIA: Court Appoints Provisional Liquidators for Unit SELOGA HOLDINGS: Incurs MYR4.42 Mil. in Qtr. Ended Dec. 31, 2007 SOLUTIA: May Pay US$5,000,000 to Waive Backstop Commitment Pact SOLUTIA INC: Resolution of Adversary Proceeding vs. Exit Lenders SOLUTIA INC: Court Approves Non-Material Modifications to Plan TECHVENTURE BERHAD: Dec. 31 Balance Sheet Upside-Down by MYR37MM N E W Z E A L A N D APPAREL INDEX: Court to Hear Wind-Up Petition on March 12 BACKSPACE LTD: Undergoes Liquidation Proceedings CLEAN SEAS: Reports AU$26,000 Net Loss for Half-Year D J & P L ZANDER: Fixes March 15 as Last Day to File Claims GLOBAL STRATEGY: Subject to CIR's Wind-Up Petition NORM BENGSTON: Commences Liquidation Proceedings ONE BROADCAST: Taps van Delden & Whittfield as Liquidators RIVERPARK LTD: Commences Liquidation Proceedings SANCTUARY DEVELOPMENTS: Placed Under Voluntary Liquidation STEWART ISLAND: Taps Cain & Hollis as Liquidators T & J TE HUNA: Fixes March 13 as Last Day to File Claims P H I L I P P I N E S GLOBE TELECOM: To Hold Annual Stockholders Meeting on April 1 MANILA MINING: Annual Shareholders Meeting Set on April 22 PHIL. LONG DISTANCE: ePLDT's BPO Unit Ranks High in BPO Survey S I N G A P O R E JAL TECHNOLOGY: Court to Hear Wind-Up Petition on March 7 METSO FIBER: Creditors' Proofs of Debt Due on March 24 SCOTTISH RE: A.M. Best Downgrades FSR to B with Neg. Outlook SEA CONTAINERS: Court Stretches Plan-Filing Period to April 15 SEPOMS TECHNOLOGY: Wind-Up Petition Hearing Set for March 7 SOTHEBY'S: Earnings Rise to US$102MM in Quarter Ended Dec. 31 T H A I L A N D BANK OF AYUDHYA: Prices US$619-Million of Bond Coupons * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= CHURCHERS PTY: Liquidator to Present Wind-Up Report on March 14 --------------------------------------------------------------- Churchers Pty. Ltd. will hold a joint meeting for its members and creditors at 11:00 a.m. on March 14, 2008. During the meeting, the company's liquidator, Terry O'Connor at Paul Cook & Associates, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Terry O'Connor Paul Cook & Associates 105 Macquarie Street Hobart, Tasmania 7000 Australia Telephone:(03) 6223 2555 Facsimile:(03) 6223 2556 e-mail: info@pjc.com.au About Churchers Pty. Churchers Pty. Ltd., which is also trading as RCM International, is a theatrical producer and provides miscellaneous theatrical services. The company is located at Richmond, in Victoria, Australia. CONSTELLATION BRANDS: Appoints Peter Perez to Board of Directors ---------------------------------------------------------------- Constellation Brands Inc.'s board of directors authorized an increase in board positions from nine to 10, and approved Peter Perez to fill the new board seat effective Feb 19, 2008. Mr. Perez is executive vice president of human resources for ConAgra Foods Inc., a US$12 billion, international packaged foods company based in Omaha, Nebraska. "Peter has a wealth of human resources experience with large, international, food, beverage and service companies, and his unique point of view and strategic thinking will complement our board," Richard Sands, Constellation Brands chairman, said. "In particular, his efforts to build a diverse and inclusive corporate culture align well with Constellation's long-held values." A native of Aurora, Illinois, Mr. Perez joined ConAgra in 2003 as senior vice president of human resources. He held a similar position with W. W. Grainger Inc., after holding senior human resource positions at Pepsi-Cola General Bottlers and the Kraft General Food division of Philip Morris Companies Inc. He began his career with Emerson Electric as a production supervisor in 1979. Mr. Perez has a Bachelor of Science degree in Production and Personnel Management from Eastern Illinois University, and a Master of Management in Human Resources Management and Organizational Behavior from Northwestern University's Kellogg Graduate School of Management. About Constellation Brands Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE:STZ) -- http://www.cbrands.com/-- has more than 250 brands in its portfolio, sales in approximately 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. The company has market presence in the U.K., Australia, Canada, New Zealand; Mexico. Barton Brands Ltd. is the spirits division of Constellation Brands Inc. is a producer, importer and exporter of a wide range of spirits products, including brands such as Black Velvet Canadian Whisky, Ridgemont Reserve 1792 bourbon, and Effen vodka. * * * As reported in the Troubled Company Reporter on Dec. 3, 2007, Fitch Ratings assigned a 'BB-' rating to a note registered by Constellation Brands Inc. to fund the purchase price of Beam Wine Estates Inc., a subsidiary of Fortune Brands Inc: US$500 million 8.375% senior unsecured note due Dec. 15, 2014. Fitch said the rating outlook is negative. DEE WHY: Liquidator to Present Wind-Up Report on March 18 --------------------------------------------------------- Dee Why Printing Works Pty. Ltd. will hold a general meeting for its members and creditors at 10:30 a.m. on March 18, 2008. During the meeting, the company's liquidator, P. P. Carter at PricewaterhouseCoopers, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: P. P. Carter PricewaterhouseCoopers 201 Sussex Street, Level 10 Sydney, New South Wales 2000 Australia About Dee Why Dee Why Printing Works Pty. Ltd. is involved with commercial printing. The company is located at Brookvale, in New South Wales, Australia. ESPOSITO FASHION: Members & Creditors to Meet on March 14 --------------------------------------------------------- Esposito Fashion Pty. Limited will hold a final meeting for its members and creditors at 9:30 a.m. on March 14, 2008. During the meeting, the company's liquidator, N. C. Malanos, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: N. C. Malanos Level 1, 32 Martin Place Sydney, New South Wales Australia About Esposito Fashion Esposito Fashion Pty. Limited operates restaurants. The company is located at Beecroft, in New South Wales, Australia. GRAY & MULRONEY: Members' Final Meeting Set for March 20 -------------------------------------------------------- Andy Choi, Gray & Mulroney (Woollahra) Pty. Ltd.'s appointed estate liquidator, will meet with the company's members at 3:00 p.m. on March 20, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Andy Choi A W Choi & Co Pty Limited 301 Castlereagh Street, Suite 53 Sydney, New South Wales 2000 Australia About Gray & Mulroney Gray & Mulroney (Woollahra) Pty. Ltd. deals with real estate agents and managers. The company is located at Woollahra, in New South Wales, Australia. GRIFFIN COAL: Moody's Cuts Ba2 Ratings to Ba3; Outlook stable ------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family and senior unsecured ratings of The Griffin Coal Mining Company Pty Ltd from Ba2 to Ba3. This concludes the review for possible downgrade begun in October 2007. The rating outlook is stable. "The outlook on the previous rating was negative, indicating a narrow cushion to withstand weaknesses in Griffin's operating and financial position, says Ian Lewis, VP/Senior Analyst and lead analyst for Griffin, adding "the downgrade reflects lower earnings and profitability in 2007 relative to initial forecasts, as well as the outlook for lower production levels, earnings and cash flows, than forecast". "In addition the company carries extended risk surrounding the completion and commissioning of its major coal carbonisation project," says Lewis. Over the past year production has fallen relative to forecast and cost pressures have risen, materially affecting earnings and gearing. More particularly, forward production and profitability estimates relative to previous projections have been substantially revised and indicate metrics that are more consistent with a Ba3 rating level." "While we further understand from Griffin that its coal carbonization project is back on track, this venture -- which will form a meaningful percentage of future revenues -- has nevertheless experienced difficulty and is behind schedule," says Lewis. "On the other hand, the company has strong reserves and contracts, and is proceeding on time and within budget with its Bluewaters I and II projects, which -- when successfully completed -- will provide strong revenue streams to replace from 2010 Verve Energy's expiring contract," says Lewis. "In addition, robust cash levels continue and support the company's ongoing liquidity." Moody's does not expect the rating to be raised prior to the completion of the Bluewaters I & II projects and the carbonized coal plant. The successful construction, commissioning and commencement of these facilities would ameliorate the associated execution and start-up risks. Once completed, Moody's would also look for significant de-leveraging, as reflected by Adjusted Debt/EBITDA below 3.5x and EBIT/Interest over 2.5x on a consolidated basis. On the other hand, the rating could come under downward pressure should it lose a key customer, experience significant additional delays in the construction of either power station or the carbonized coal plant, or experience continued weakness in revenue and earnings. Indicators of such trends would include Adjusted Debt/EBITDA remaining over 4.7-5.0x and EBIT/Interest below 1.7-2.0x on a consistent basis. Moody's would be mindful of any other credit weaknesses when assessing whether material downward pressure was apparent, including Griffin's liquidity as it moves through its construction program and funds are depleted. The Griffin Coal Mining Company, headquartered in Perth, Australia is involved in coal extraction. It is a wholly owned subsidiary of Devereaux Holdings Pty Ltd, a private company owned in turn by the Stowe family. ICA SOLUTION: Members to Receive Wind-Up Report on March 7 ---------------------------------------------------------- A. R. M. Taylor, Ica Solution (Nt) Pty. Ltd.'s appointed estate liquidator, will meet with the company's members at 10:00 a.m. on March 7, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: A. R. M. Taylor Meertens Chartered Accountants 49 Woods Street, Level 1 Darwin NT 0800 Australia Telephone:(08) 8923 9239 Facsimile:(08) 8942 3250 About Ica Solution Ica Solution (Nt) Pty. Ltd. provides computer related services. The company is located at Stuart Park, in NT, Australia. INFORMATION SOLUTION: Joint Meeting Slated for March 14 ------------------------------------------------------- Information Solution Works Pty. Ltd. will hold a joint meeting for its members and creditors at 10:30 a.m. on March 14, 2008. During the meeting, the company's liquidator, Paul Cook at Paul Cook & Associates, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Paul Cook Paul Cook & Associates 105 Macquarie Street Hobart, Tasmania 7000 Australia Telephone:(03) 6223 2555 Facsimile:(03) 6223 2556 e-mail: info@pjc.com.au About Information Solution Information Solution Works Pty. Ltd. is involved with commercial printing. The company is located at Hobart, in Tasmania, Australia. JAN YEE: Members to Hear Wind-Up Report on March 12 --------------------------------------------------- Murray Smith, Jan Yee Australia Pty. Ltd.'s appointed estate liquidator, will meet with the company's members at 10:00 a.m. on March 12, 2008, to provide them with property disposal and winding-up reports. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on August 16, 2007. The liquidator can be reached at: Murray Smith McGrathNicol Level 9, 10 Shelley Street Sydney, New South Wales 2000 Australia Telephone:+61 2 9338 2600 Web site: http://www.mcgrathnicol.com About Jan Yee Jan Yee Australia Pty Ltd is a security broker and dealer. The company is located at Bellevue Hill, in New South Wales, Australia. RIXON ENTERPRISES: Appoints Bettles & Carter as Liquidators ----------------------------------------------------------- During a general meeting held on January 23, 2008, the members of Rixon Enterprises Pty. Ltd. appointed Jason Bettles and Susan Carter at Worrells Solvency & Forensic Accountants as the company's liquidators. The liquidators can be reached at: Jason Bettles Susan Carter Worrells Solvency & Forensic Accountants 50 Cavill Avenue, Level 6 Surfers Paradise, Queensland 4217 Australia Web site: http://www.worrells.net.au About Rixon Enterprises Rixon Enterprises Pty. Ltd. is a distributor of durable goods. The company is located at Glenvale, in Queensland, Australia. SUNCORP: First-Half Net Profit Falls 28% to AU$382 Million ---------------------------------------------------------- Suncorp-Metway Ltd.'s first-half net profit decreased 28% to AU$382 million from AU$527 million a year earlier, hurt by the global credit crisis and severe weather events, sending down its shares 8%, Reuters reports. According to the report, Suncorp's claims expenses jumped 22% to AU$2.18 billion after large-scale flooding and storms in eastern Australia caused property and vehicle damage. Higher funding costs, sparked by the global credit crisis, reduced Suncorp's net interest margin by 27 basis points, the report notes. James Holt, a portfolio manager with Zurich Financial Services, told the news agency that he insurance side of the business was hit by quite a few weather events while the higher funding costs have also hurt profit. However, the long-term fundamentals are looking good. It is more about riding through these short-term issues, he added. Suncorp's Chief Executive Officer John Mulcahy, the report relates, said they expect that global credit markets will remain volatile in the short term with little prospect of immediate contraction in credit spreads. Denny Thomas of Reuters writes that Suncorp also said it planned to raise about AU$316 million through a dividend reinvestment plan to boost its capital. About Suncorp-Metway Brisbane, Australia-based Suncorp-Metway Ltd. -- http://www.suncorp-metway.com.au/-- is engaged in retail and business banking, general insurance, life insurance, superannuation and funds management with a focus on retail consumers and small to medium businesses. Its brand offering includes Suncorp and GIO, with GIO being the main insurance brand outside of Queensland. On March 20, 2007, Fitch Ratings gave a 'B' rating on Suncorp's Individual Rating. Subsequently, on May 4, 2007, Moody's Investors Service rated Suncorp-Metway's bank financial strength a 'B-'. TARRANTS PTY: Placed Under Voluntary Liquidation ------------------------------------------------ Tarrants Pty. Limited's members agreed on December 19, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Catherine Gaye Lethbridge to facilitate the sale of its assets. The liquidator can be reached at: Catherine Gaye Lethbridge Alison & Associates - Accountants Unit 1, 98 Bazaar Street Maryborough, Queensland 4650 Australia About Tarrants Pty. Tarrants Pty. Limited is a dealer of new and used cars. The company is located at Maryborough, in Queensland, Australia. TESSMANN CONCRETING: Appoints Worrell & Peldan as Liquidators ------------------------------------------------------------- On January 21, 2008, Ivor Worrell and Michael Peldan were appointed liquidators of Tessmann Concreting Pty. Ltd. The liquidators can be reached at: Ivor Worrell Michael Peldan 8th Floor, Worrells 102 Adelaide Street Brisbane, Queensland 4000 Australia Web site: http://www.worrells.net.au About Tessmann Concreting Tessmann Concreting Pty Ltd is involved with concrete work. The company is located at Bulimba, in Queensland, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ABC LEARNING: Directors Cut Stakes on Margin Calls --------------------------------------------------- Eddy Groves, ABC Learning Center's CEO, led four directors who are forced to sell some or all of their stakes as a slumping share price prompted margin lenders to demand the sales, Bloomberg News reports. Mr. Groves sold 8 million shares in the world's biggest publicly traded owner of child-care centers, about 40% of his stake, for AU$1.85 a share, ABC Learning said in a statement, as intercepted by Bloomberg. His wife Le Neve sold 11 million shares, or 65% of her holding, for AU$1.84 each. In Sydney trading last Feb. 26, ABC Learning plunged 43% after a slump in earnings raised concerns it may struggle to repay debt, Bloomberg notes. The drop to AU$2.14 triggered margin calls on stakes held by some directors. Consequently, stock trading was halted as the company entered talks on "indications of interest" for parts of its business. More than 96% of the remaining 21.9 million ABC Learning shares owned by directors, equivalent to 4.6% of stock outstanding, are held in margin lending arrangements that may result in forced sales, the company further noted to Bloomberg. ABC Learning operates 1,000 centers across the U.S., more than 1,200 in Australia and New Zealand and 112 nurseries in the U.K., having spent about AU$1.06 billion expanding since its first U.S. purchase in November 2005. AGRICULTURAL BANK: Surges in Intermediate Business -------------------------------------------------- The Agricultural Bank of China said that its intermediate business rose 64% last year to JPY25.3 billion (about US$3.54 billion), Xinhua News reports. The bank said that the surge was largely driven by commissions for the sale of finance products as funds. Commission revenues jumped 209% year-on-year in 2007 due to the booming capital market, Agricultural Bank told Xinhua. Traditional intermediate business, including banking card, transaction and insurance sales, surged 22% year-on-year to Y13.7 billion. The bank didn't disclose total revenues, Xinhua says. However, Agricultural Bank's intermediate business income accounted for only about 21% of the big four state commercial banks' total, sources relayed to Xinhua. Agricultural Bank is the only non-listed bank among the big four, whose other members are the China Construction Bank, the Industrial and Commercial Bank of China and the Bank of China. The Agricultural Bank of China -- http://www.abchina.com/en/hq/index.jsp/index.html-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. CHINA EASTERN: Singapore Airlines Reiterates HK$3.80/Share Bid -------------------------------------------------------------- Singapore Airlines Ltd. said that its HK$3.80 a share bid for a stake in China Eastern Airlines Corp. still stands, the Wall Street Journal reports. The statement came after China Eastern rejected a bid from China Aviation Holding Co. "Our proposal for recapitalization of China Eastern Airlines is still on the table," Singapore Airlines spokesman Stephen Forshaw was quoted by the Journal as saying. "It is exactly the same as the one announced in September 2007 and put to shareholders in January 2008; there is no new bid." As reported in the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, nearly 78% of China Eastern shareholders earlier rejected a bid by Singapore Airlines and Temasek Holding Pte Limited to buy a minority stake in China Eastern after rival Air China and its parent, China National Aviation Corp., pledged a higher offer. Despite China Aviation's HK$5 a share bid, China Eastern rejected it on grounds that the proposal did not demonstrate "sincere intention" and thorough planning, the Journal relates. The airline's board also raised antitrust and government support issues. Analyst Damien Hort suggested to the Journal that this official rejection of the higher offer could be a signal that the Chinese government wanted an alliance with Singapore Airlines. In a statement, China Eastern stated that Singapore Airlines is its preferred bidder due to its profitability, customer service reputation, and cost synergies. Other analysts said if China National decides to approach China Eastern's shareholders with their higher bid, despite the board's rejection, Singapore Air would be forced to up its bid. However, Singapore Air previously said that its offer is final and won't change under any circumstances. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. HERCULES INC: Appoints Allan H. Cohen to Board of Directors ----------------------------------------------------------- The board of directors of Hercules Incorporated elected Allan H. Cohen, Ph.D. to the Hercules board of directors effective immediately. With his election, the Hercules board has expanded from nine to ten members. Until August 2007, Dr. Cohen was a managing director with First Analysis Corporation, a research driven investment organization, where he was employed for fifteen years. During his career, he has held executive and senior management positions at The Valspar Corporation and The Enterprise Companies, a unit of Insilco, and planning and chemical research management positions with The Sherwin-Williams Company and Champion International Corp. Dr. Cohen also serves on the boards of directors of Intertape Polymer Group Inc., Doe and Ingalls Management LLC, and IGI Holding Corporation. The board of directors also declared a quarterly cash dividend of five cents per common share, payable on April 18, 2008, to shareholders of record at the close of business on March 28, 2008. Hercules will hold its Annual Meeting of Shareholders on Thursday, April 17, 2008, at its corporate headquarters in Wilmington, Delaware. Shareholders of record on March 3, 2008, will be entitled to vote at the Annual Meeting. About Hercules Inc. Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. * * * Moody's Investor Service placed the company's long-term corporate family rating, senior unsecured debt rating and probability of default rating at Ba2, senior subordinate rating at Ba3, and junior subordinate debt rating at B1 in September 2006. The ratings still hold to date with a positive outlook. NOBLE GROUP: Moody's Affirms Ba1 Ratings; Outlook Stable -------------------------------------------------------- Moody's Investors Service has today affirmed the Ba1 corporate family rating and senior unsecured bond rating of Noble Group Ltd after its FY2007 result announcement. The outlook on both ratings is stable. "Noble's ratings reflects the company's strong and improved business, earnings and geographical diversity, increasing management depth, strengthening risk management processes and solid market position in key sectors," says Elizabeth Allen, Moody's lead analyst for Noble, adding, "However, its improved operating profile has resulted only in a slight strengthening of its financial profile due to an increase in the company's debt to fund a combination of increased working capital requirements, higher fixed-asset investments and stronger revenue growth." "While Noble delivered spectacular growth in 2007, with annual gross profit rising 69% to USD824 million, its reported debt also increased by 62% to USD2.5bn from USD1.6bn as of December 2006. Furthermore, its free cash flow has been negative in the last five years and is expected to remain so in the next few years. Any improvement in credit metrics going forward will be modest, such that retained cash flow/net debt is expected to stay in the mid teens in the near term," says Allen. Moody's acknowledges that Noble's improvement in operating efficiency, more diversified product portfolios, and gradual transformation from a trading company to a more value added asset-medium supply chain manager could partly mitigate the inherently volatile commodity and freight markets. Nonetheless given the existence of uncontrollable external factors, the predictability of future performance is low. Furthermore, the company's strategy to invest further in capex and selected acquisitions could come at the cost of higher debt levels. The rating would experience upward pressure if Noble demonstrates its ability to: 1) maintain its growth in profitability and cash generation, especially through the pricing cycles of its various business lines, in line with its debt funding requirements; and 2) adhere to investment and financial discipline while pursuing its growth strategy, such that retained cash flow/net debt (using Moody's standard adjustments) reaches around 18% - 20% on a sustainable basis. Maintenance of its current risk profile and balance sheet liquidity would also be important factors. Moody's will consider a rating downgrade if: 1) Noble's credit profile deteriorates such that retained cash flow/ net debt is consistently below 10-12% ; 2) it adopts an aggressively debt-funded acquisition/investment plan for new businesses, thereby increasing its overall financial and business risk profile; 3) there is material weakening in the company's balance sheet liquidity; and/or 4) it incurs large trading or credit losses. Noble Group Ltd, headquartered in Hong Kong and listed on the Singapore Stock Exchange, is mainly engaged in the sourcing and distribution of a wide range of commodity products in agriculture, energy and metals as well as the logistics management business. ROYAL CARIBBEAN: Earns US$71 Mil. in Quarter ended Dec. 31, 2007 ---------------------------------------------------------------- Royal Caribbean Cruises Ltd. reported net income for the fourth quarter ended Dec. 31, 2007, of US$70.8 million compared to net income of US$46.6 million in 2006. The company related that revenues were better than expected, driven by stronger close-in bookings, while fuel costs were higher due to rising fuel prices. Revenues for the fourth quarter 2007 increased to US$1.5 billion from revenues of US$1.2 billion in the fourth quarter 2006. Net income for the full year 2007 was US$603.4 million compared to net income of US$633.9 million for the full year 2006. Revenues for the full year 2007 increased to US$6.1 billion from revenues of US$5.2 billion for the full year 2006. "It is very gratifying to see such a strong performance, especially in light of the broader consumer and economic environment," Richard D. Fain, chairman and chief executive officer, said. "We are particularly pleased with the solid yield performance of our brands, which produced such healthy earnings despite significantly higher fuel costs. Higher fuel prices increased operating costs by US$45 million in 2007, which reduced earnings per share by US$0.21." "Despite pressures on consumer spending, yields for the year were consistent with our original expectations, growing 0.3% on a comparable basis, i.e. excluding Pullmantur," Mr. Fain continued. "This is a testament to the strength and momentum of our products." Liquidity and Capital Resources As of Dec. 31, 2007, liquidity was US$1.4 billion, comprising US$0.2 billion in cash and cash equivalents and US$1.2 billion in available credit on the company's unsecured revolving credit facility. At Dec. 31, 2007, the company's balance sheet showed total assets of US$14.98 billion, total liabilities ofUS$8.22 billion and total shareholders' equity of US$6.76 billion. About Royal Caribbean Headquartered in Miami, Royal Caribbean Cruises Ltd. (NYSE: RCL) -- http://www.royalcaribbean.com/-- is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises and Pullmantur Cruises, Azamara Cruises and CDF Croisieres de France. The company has a combined total of 35 ships in service and seven under construction. It also offers unique land-tour vacations in Alaska, Australia, China, Canada, Europe, Latin America and New Zealand. The company has operations in Puerto Rico. * * * Moody's still carries Royal Caribbean Cruises Ltd.'s 'Ba1' long- term corporate family rating assigned on Feb. 22, 2005. Moody's said the outlook is stable. SHANGHAI PUDONG: To Raise CNY32.5 Billion from Share Sale --------------------------------------------------------- Shanghai Pudong Developmetn Bank Co. said in reports that it plans to raise up to CNY32.5 billion (US$4.6 billion) through the issuance of more shares in order to increase capital. As reported yesterday, the bank said in a statement file with the Shanghai Stock Exchange that details of the planned sale will be disclosed after the company's board meeting. The meeting date, however, was not disclosed. According to Bloomberg News, the bank will sell up to 800 million shares within one year after the shareholders' approval of the plan. The Wall Street Journal said that an unnamed source told the paper that the offering was originally for CNY40 billion but lowered it due to the market's "dramatic" reaction to its plan. Bloomberg adds that investor concerns over earnings dilution for the past six days caused the bank's shares to lose 20% of their value. "The market is too skittish and has over-reacted to its share sale over the past few days," Zhu Mingjian, a Shanghai-based analyst at Fortis Haitong Investment Management Co., which manages CNY45 billion yuan, including Pudong Bank shares, told Bloomberg. "Pudong Bank's share sale is justified by its need to finance business growth and sustain profit." Headquartered in Shanghai, China, Shanghai Pudong Development Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial bank involved in personal banking, corporate banking, and inter- bank business. The bank also offers Internet banking and telephone banking. Fitch Ratings on March 12, 2007, upgraded the Support ratings of Shanghai Pudong Development Bank to 3 from 4, reflecting the improved ability of the government to support domestic financial institutions and the close relationship between the bank and the central and local governments. At the same time, the agency affirmed the bank's individual rating at D. The bank, as of May 4, 2007, also carries Moody's Ba1 rating for financial strength rating. ========= I N D I A ========= AXIS BANK: Ties Up with SunTec for Billing Software --------------------------------------------------- Axis Bank partnered with SunTec to consolidate its disparate billing silos, and centralize and streamline the pricing and billing processes, as part of its commitment to deliver continuous value to customers. The solution will further help Axis Bank create personalized product packages or bundles and manage fee billing for Payment and Cash Management, while having a unified view of its customers. "SunTec's solution allowed us to consolidate all our home grown billing-processes. This improved our efficiency in handling the very complex billing function. We deployed the solution in two separate phases for our current accounts, cash credit accounts and savings bank accounts. Going forward, we aim to leverage SunTec features like relationship based pricing and bill modelling. The implementation was remarkably quick," said Subhakanta Satpathy, Axis Bank. SunTec's implementation project for Axis Bank was spread over two different stages. Stage-1 saw SunTec's solution being implemented for the bank's Current and Cash Credit Accounts, which were on a monthly billing cycle. The project began in March 2007 and was completed in July 2007. After this, SunTec's RBP solution was implemented for their Savings Bank Retail Accounts (Quarterly Billing) and the project was completed by December 2007. "Axis Bank is our second banking services client in India, after ICICI Bank. We are proud to have two of the best banks in the country as our customers," said Rajesh Narasimhan, Vice President Sales-BFSI, APAC of SunTec. "We are happy that SunTec could meet Axis Bank's expectations in the stipulated time," said Nanda Kumar, CEO, SunTec. "With an ever-growing customer base like that of Axis Bank, it gets more challenging by the day to deliver consistent and personalized customer experience across every interaction channel. We are proud that they banked on us to deliver on this count." About SunTec SunTec is a pricing and convergent billing solutions company that offers transaction value management solutions for communications, media, entertainment (CME), banking, financial services and insurance (BFSI), and utilities industries. SunTec's product suites and services, TBMS-T for CME, TBMS-F for BFSI, and TBMS-U for utilities, provide comprehensive solutions for measuring and monitoring transaction value, and enabling maximum control of profitability. SunTec is a SEI CMM Level 5 certified company and its client list includes Comcast (NASDAQ: CMCSA), Cable One, Batelco, BSNL and HFCL, ICICI Bank (BSE NSE: ICICI; NYSE: IBN), HSBC (LSE: HSBA; NYSE: HBC), ING Bank (NYSE: ING) and Lloyds TSB (LSE: LLOY). About Axis Bank Headquartered in Mumbai, India, Axis Bank Ltd, formerly known as UTI Bank Limited, -- http://www.axisbank.com/-- is engaged in treasury and other banking operations. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. Revenues of the treasury services segment primarily consist of fees and gains or losses from trading operations and interest income on the investment portfolio. Other banking operations principally comprise the lending activities (corporate and retail) of the bank. The corporate lending activity includes providing loans and transaction services to corporate and institutional customers. The retail lending activity includes raising of deposits from customers and providing loans and advisory services to customers through branch network and other delivery channels. * * * The bank's Foreign Long Term Bank Deposits carry Moody's Investors Service's Ba2 rating, which was placed on July 1, 2005. EASTMAN KODAK: Dennis Strigl Elected to 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, 61, 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. * * * As reported in the Troubled Company Reporter on Sept. 14, 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Eastman Kodak Co. and removed the ratings from CreditWatch, where it has been placed with negative implications on Aug. 2, 2006. S&P said the outlook is negative. ELAN CORP: Moody's Changes Outlook to Positive; Holds B3 Ratings ---------------------------------------------------------------- Moody's Investors Service revised the rating outlook for Elan Corporation, plc and Elan Finance plc to positive from stable. At the same time, Moody's affirmed Elan's existing ratings including the B3 Corporate Family Rating. Moody's last rating action on Elan was an affirmation of the ratings with a stable rating outlook on Nov. 9, 2006 in conjunction with a B3 rating assignment to a senior note offering. "The change in Elan's rating outlook to positive reflects steady market acceptance of Tysabri approximately 18 months after the re-launch," stated Moody's Senior Vice President Michael Levesque. Other positive developments include the recent FDA approval of Tysabri in moderate to severe Crohn's disease, and the initiation of Phase III clinical trials of bapineuzumab in Alzheimer's disease in a collaboration with Wyeth. "However, thee B3 rating remains constrained by uncertainty that Elan will attain positive free cash flow, especially if any additional PML cases arise," continued Levesque. Elan's B3 Corporate Family Rating reflects the criteria outlined in Moody's Global Pharmaceutical Rating Outlook including size and scale (where Elan maps to the "B" category), cash flow relative to debt ("Caa"), and cash coverage of debt ("Ba"). Elan's rate of cash use is still significant, reflecting higher spending on R&D, and generic pressures affecting the Maxipime franchise. A rating upgrade could result from additional market acceptance of Tysabri, leading Moody's to conclude that Elan is on a clear path to generating positive free cash flow. Negative rating pressure could develop if Moody's believes that Elan is unlikely to ever achieve positive earnings and cash flow. Ratings affirmed: Elan Corporation plc: -- B3 Corporate Family Rating -- B2 Probability of Default Rating Elan Finance plc: -- B3 (LGD4, 65%) fixed rate senior notes ofUS$850 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) -- B3 (LGD4, 65%) floating rate senior notes ofUS$300 million due 2011 (guaranteed by Elan Corporation, plc and subsidiaries) -- B3 (LGD4, 65%) fixed rate senior notes due 2013 (guaranteed by Elan Corporation, plc and subsidiaries) Elan Corporation, plc is a specialty biopharmaceutical company headquartered in Dublin Ireland, with areas of expertise in neurological and autoimmune disease, and drug delivery technology. The company reportedUS$759 million of total revenue in 2007. GENERAL MOTORS: Fitch Holds IDR at 'B' with Negative Outlook ------------------------------------------------------------ Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a rating outlook negative. Fitch projects that despite significant cost reduction programs that have occurred at GM's North American operations, negative cash flows at GM are expected to increase in 2008, leading to more pronounced liquidity drains. Weak economic conditions in the U.S., continuing restructuring costs, high commodity costs and supplier issues (including Delphi) will more than offset healthy results from international operations. In the absence of improvement in North American economic conditions or access to additional capital, Fitch projects that GM's liquidity could drop below US$20 billion within the next year. As a result, Fitch expects that further restructuring will be required in addition to the current employee buyout program. The persistent lack of profitability, even with a lower fixed cost base, indicates that GM will have to further prune low-margin vehicles and production capacity. Fitch expects that this will lead to the closure of at least three more assembly plants over the intermediate term than has been announced to date. GM has made very substantial improvement in its North American cost structure and over the past five years has significantly mitigated risks and liabilities associated with its pension and OPEB obligations. The terms of the recent UAW agreement, including the transfer of healthcare cost inflation from GM to the UAW trust, will realize meaningful cash savings beginning in 2010. However, this has come at a cost. GM's debt is expected to total approximately US$45 billion (including US$8.4 billion issued as part of the UAW VEBA trust agreement that will not appear on GM's balance sheet until 2010), up more thanUS$32 billion since year-end 2002, despite a healthy level of asset sales. This figure may increase as GM seeks additional financing opportunities to sustain liquidity. Interest expense will represent an increasing claim on cash flows in 2008 and 2009, while declining income from GM's shrinking cash and securities portfolio will provide less of an offset. GM's loss of market share and sale of assets (GMAC, Allison Transmission) also provide a reduced earnings base with which to meet future debt obligations. As a result, Fitch does not expect GM to be in a position to reduce debt obligations over the next three years. GM retains access to approximately US$7 billion in committed credit lines in the U.S. Although GM has a manageable maturity schedule over the next several years, repayment of maturities from cash holdings would accelerate the expected decline in liquidity. Given the existing state of the capital markets, GM may have limited access to external capital for refinancing purposes. The recent change to the VEBA funding plan, replacing US$4 billion in cash with US$4 billion in a two-year note, will provide a helpful, but temporary boost to liquidity. In the absence of a rebound in second-half economic conditions or access to additional capital, Fitch projects that liquidity could drop below US$20 billion within the next year. Upon a rebound in the U.S. housing market, contribution margins will benefit from improved volume and margins in the key pickup truck market. Fitch forecasts that GM's projected cost savings from the 2007 UAW agreement will be insufficient to reverse consolidated negative cash flows through 2009 without revenue stabilization. Given weak economic conditions, this is not projected to occur in 2008. Despite a string of recent successful product offerings, the decline in the remainder of GM's product portfolio has prevented consolidated improvement. Over the near term, GM's North American strategy currently relies on replacing uncompetitive products with newly competitive products, which will be a severe challenge as GM struggles to find niches for a number of overlapping products and brands. Fitch expects that GM will have to make meaningful reductions in brand/product/segment offerings over the intermediate term. Accordingly, Fitch expects that GM could close an additional 3-4 assembly plants. Shareholder considerations may also encourage a reduction in exposure to the U.S. market, potentially allowing the company's stronger, higher growth international operations to represent a more material component of GM's consolidated valuation. Commodity prices will continue to hurt GM's margins, although the rate of increase is likely to slow in comparison to 2007, allowing more of the company's manufacturing efficiencies to benefit margin performance. However, GM is likely to face escalating costs and required financial support for second and third-tier suppliers that will continue to face bankruptcy (and potential liquidation) from lower Detroit Three production and lack of access to capital. GM's international operations have transitioned into a material positive factor for the ratings. The company's growth in China, Latin America and a number of developing markets provide an increasing offset to the company's North American operations, but also are now producing free cash flow that can be applied to consolidated debt or restructuring obligations. However, the 4th quarter loss in GM's European operations and the extraordinary profitability that the industry has enjoyed in Latin America question the sustainability of 2007 results into 2008. These events could result in a downgrade of GM: -- Consolidated cash drains in excess ofUS$8 billion, which results in liquidity dropping belowUS$20 billion; -- Lack of progress in reducing fixed costs, combined with a reduction in international profitability; -- Double-digit production cuts in North America throughout 2008 resulting from a more severe decline in economic conditions or a deterioration in GM's product competitiveness. Attempts to resolve the Delphi situation have become increasingly extended and expensive to GM. GM took an additionalUS$1.5 billion in reserves in 2007, and will continue to incur expenses over the medium term. With Delphi currently unable to raise the financing required to exit bankruptcy, the situation remains highly uncertain. An extended stay in bankruptcy and increasing costs accruing to GM could result in the event that the agreement with Apaloosa is unable to be closed. Although resolution of GM's price penalty to Delphi represents an opportunity for further cost reductions over the intermediate term, Delphi will remain a meaningful competitive disadvantage. Deteriorating performance at GMAC has materially reduced estimated recovery valuations from this asset. Fitch does not expect that GM will provide additional capital to support GMAC's ResCap operations, given GM's liquidity position and its primary focus on GMAC's auto finance operations. Any additional capital contributed to GMAC by GM would be viewed as a negative. Fitch remains concerned about asset quality deterioration, funding costs and ABS market conditions at GMAC and the industry in 2008. Recovery ratings remain in the same category, although projected recovery valuations have moved modestly lower. Negative movements include a significant deterioration in the asset value of GM's 49% stake in GMAC, and higher debt levels, which are offset by increased valuations for the company's international holdings in Latin America and Asia (primarily China). Fitch has affirmed these ratings: * General Motors -- IDR at 'B'; -- Senior unsecured debt at 'B-/RR5' -- Senior Secured at 'BB/RR1'. * General Motors of Canada -- IDR at 'B'; -- Senior unsecured at 'B-/RR5'. ROLLATAINERS LTD: Allots 90,00,000 Shares to W.L.D. Investments --------------------------------------------------------------- Rollatainers Ltd. has allotted 90,00,000 equity shares of INR10 each, at par, to strategic investor W.L.D. Investments Pvt Ltd., upon conversion of 90,00,000 Optional Fully Convertible Debenture of INR10 each, a regulatory filing with the Bombay Stock Exchange discloses. The allotment is pursuant to a stipulation in Rollatainers' rehabilitation scheme that was approved by the Board for Industrial & Financial Reconstruction via order dated May 15, 2007, and amendment order dated August 6, 2007. Rollatainers Ltd. -- http://www.rolapak.com/-- is a paper manufacturer whose primary products are packaging cartons and polycoated packing material. The company also manufactures duplex paper board, writing and printing paper and packaging and weighing machines. The company has incurred consecutive net losses of INR58.9 million and INR151.6 million for the years ended Sept. 30, 2007 and 2006, respectively. ROLLATAINERS LTD: Books INR4.7 Loss in Oct.-Dec. 2007 ----------------------------------------------------- Rollatainers Ltd.'s net loss dropped to INR4.7 million in the quarter ended Dec. 31, 2007, from the INR34.6-million loss booked in the same period in 2006. The improved bottom line could be attributed to increased revenues and decreased expenses. In the Oct.-Dec. 2007 quarter, Rollatainers booked total revenues of INR129.2 million, up 24% from 2006's INR104.4 million. Operating expenditures decreased from INR128.2 million to INR126.6 million, bringing the company an operating profit of INR2.6 million. Interest expenses slid 77% to INR1.1 million. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2895 Rollatainers Ltd. -- http://www.rolapak.com/-- is a paper manufacturer whose primary products are packaging cartons and polycoated packing material. The company also manufactures duplex paper board, writing and printing paper and packaging and weighing machines. The company has incurred consecutive net losses of INR58.9 million and INR151.6 million for the years ended Sept. 30, 2007 and 2006, respectively. RPG CABLES: Narrows Oct.-Dec. Net Loss to INR17.9 Million --------------------------------------------------------- RPG Cables Ltd. reported a net loss of INR17.9 million in the three months ended Dec. 31, 2007, an improvement compared to the INR64.6-million loss incurred in the same period in 2006. The narrowing loss is brought about by net income that soared to INR1.03 billion in Oct.-Dec. 2007, twice the INR509.2 million earned in the same three-month period in 2006. With operating expenditures totaling INR965.7 million, RPG Cables posted an operating profit of INR66.9 million (INR24.7 million in 2006). The company also booked interest of INR75.7 million, depreciation of INR8.8 million and INR300,000 in taxes. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2894 Headquartered in Mysore, India, RPG Cables Ltd. operates in two segments: Power cables and Telecommunication cables. The company manufactures power and control cables, jelly filled telephone cables, optical cables and housewiring cables. The company's net worth has been eroded as at March 31, 2004. In accordance with the provisions of Sick Industrial Companies (Special Provision) Act, 1985, the company was referred to the Board for Industrial & Financial Reconstruction on July 5, 2004. The State Bank of India, the BIFR-appointed operating agency for the RPG Cables, has prepared a modified rehabilitation scheme for the revival the company and has submitted the same to the BIFR. RPG LIFE: Swings to INR7-Mil. Net Profit in Oct.-Dec. 2007 ---------------------------------------------------------- RPG Life Sciences Ltd. reported a net profit of INR7 million on total revenues of INR308.4 million in the three months ended Dec. 31, 2007. The bottom line is a turnaround from the INR3.4-million net loss booked in the three months ended Dec. 31, 2006, when the company earned total revenues of INR260.4 million. In Oct.-Dec. 2007, the company booked operating expenses of INR262.4 million, leaving the company with an operating profit of INR46 million (INR37.9 million in 2006). The company also booked interest of INR21.2 million, depreciation of INR12.3 million and taxes of INR5.5 million in the three-month period. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2896 Headquartered in Mumbai, India, RPG Life Sciences Ltd., Brabourne Enterprises Ltd. -- http://www.rpglifesciences.com/-- is a full spectrum, world class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of a default in debt servicing obligations towards institutional investors. SPICEJET LTD: Set to Commence Overseas Flights in Three Years ------------------------------------------------------------- SpiceJet Limited is poised to commence flights to the Middle East, China and the South Asian Association for Regional Cooperation countries within the next three years, various reports say. If the government loosens up rules, SpiceJet may fly earlier, otherwise it will start overseas flights by June 2010, the reports quoted SpiceJet Chairman Siddhanta Sharma as saying. According to India's aviation rules a start-up airline has to complete five years of domestic operations to be able to fly abroad. China, the Middle East and SAARC countries reportedly are among those destinations that attract most of India's migrant population. For those overseas flights, SpiceJet intends to deploy 10 aircraft. Gurgoan, India-based SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier. In fiscal 2006, SpiceJet carried over 1.6 million passengers. As of May 31, 2006, the company operated over 60 daily flights covering 13 destinations, including eight Boeing 737-800 aircraft. SpiceJet has integrated with various travel related Websites, such as indiatimes, makemytrip, travelguru and cleartrip. The company has launched a co-branded credit card with State Bank of India in association with MasterCard. In fiscal 2006, SpiceJet entered into a sale and lease back agreement with Babcock & Brown Aircraft Management along with its partner Nomura Babcock & Brown Co. Ltd. covering 16 Boeing 737-800/-900ER aircraft. Spicejet incurred net losses for at least two consecutive years -- INR414.2 million in the year ended May 31, 2006, and INR287.05 million in the year ended May 31, 2005. The company changed its financial year from June-May to April-March. For the ten months ended March 31, 2007, the airline carrier booked a net loss of INR707.43 million. TATA STEEL: Taps SMS Demag to Set Up Converter Shop, CSP Plant -------------------------------------------------------------- Tata Steel Ltd. has tapped SMS Demag Germany to provide the Indian steel firm with an X-Melt converter shop and a CSP plant, the Steel Guru said in its Web site. Commissioning of the plants is expected in late 2010. According to Steel Guru, the supply for the X-Melt steelworks includes two converter vessels as well as the gear units with pneumatic emergency drive, lance equipment and the converter lining facilities. The CSP plant is rated for an annual capacity of 2.4 million tonnes of hot strip 900mm to 1,680mm wide and 10mm to 20mm thick. Tata Steel, Steel Guru said, plans to use the CSP plant for focusing on high-grade products. Beside carbon steels, the product mix includes non-grain oriented electrical steel strip, pipe grades and dual phase steels, the Web site added. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. ================= I N D O N E S I A ================= BANK DANAMON: Shares to Rise on Dismissal of BII Merger ------------------------------------------------------- PT Bank Danamon Indonesia Tbk's shares looks more attractive now after Singapore's Temasek Holdings, the bank's shareholder through Fullerton Financial Holdings Pte. Ltd, dismissed the option of merging Danamon with PT Bank Internasional Indonesia, Antara news reports. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 27, 2008, Fullerton Financial 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 as previously conveyed in FFH's ownership structure adjustment plan in line with the Single Presence Policy in Indonesian Banking. Temasek's Fullerton Financial Holdings Pte Ltd. holds a 59% majority share in Bank Danamon. Since 2003 Fullerton also owned 75% of the shares of Sorak consortium, which in turn owns a 55.85% stake in BII. Under Bank Indonesia's single-presence policy, the report explained, 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. Citigroup analyst Stephan Hasjim, as note to clients, said They believe this news should remove a major overhang on the stock, which has underperformed its peer major banks in Indonesia due to concerns over earnings dilution from a merger with BII. Based on various valuation metrics, Danamon is trading at well below the average multiples of four major banks and at the low end of historical valuation ranges of the past two years, he added. Mr. Hasjim told Antara that st a 2008 price earnings (PE) multiple of just 12 times, Danamon is trading at a steep discount to the market multiple of 17 times. Citigroup has a "buy" call on Danamon with a target price of IDR10,650, the report adds. 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 INTERNASIONAL: Aims More Than 20% Up in Loan This Year ----------------------------------------------------------- PT Bank Internasional Indonesia Tbk would target an increase of more than 20 percent in total loans this year, The Jakarta Post reports. Vice President Sukatmo Padmosukarso said that out of the total credits, 40% will be channeled to small and medium enterprises (SMEs), 31% to consumers and 28 to 29% to corporates. According to the report, the bank increased its total credits from IDR26.26 trillion in 2006 to IDR33.06 trillion in 2007. However, the report notes, its net profit declined by 36% to IDR404.76 billion in 2007, from IDR633.71 billion a year earlier, due to lower net interest income and smaller margins. Mr. Padmosukarso was quoted by the news agency as saying, "The bank will keep focusing on facilitating credits for SMEs and consumers and we will also increase our standard of credits and services," Sukamto said. The bank, the report adds, will also continue giving credits to mining, coal, transportation, telecommunications, manufacturing and CPO businesses. Mr. Padmosukarso told The Post that Temasek Holdings's decision to divest all its shares in the bank will not affect their business. "The growth of the business is relatively good and supported by lower interest rate," he was quoted by The Post as saying. 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 TCR-AP related that Temasek's Fullerton Financial Holdings Pte Ltd. since 2003 has owned 75% of the shares of Sorak consortium, which in turn owns a 55.85% stake in BII. Fullerton also holds a 59% majority share in Bank Danamon, the report adds. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on Feb. 25, 2008, Fitch ratings has taken rating actions on PT Bank Internasional Indonesia Tbk. "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 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'; -- Individual rating affirmed at C/D; -- ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA-(idn)'; -- FC subordinated debt rating upgraded to 'BB-' from 'B+'. On October 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk. -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2 -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of Bank Internasional as follows: * Long-term foreign currency IDR at 'BB-' with a Positive Outlook, * Short-term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)'. ========= J A P A N ========= IHI CORP: Report Says Executives Aware of Losses ------------------------------------------------ The Asahi Shimbun reports that top executives of IHI Corp. were aware of "huge, hidden losses" in April last year before the company made an upbeat earnings report for 2006. The paper asserts that the company's declaration that it became aware of the losses only in July 2007 contradicts documents that proves management knew about the losses in April. Asahi says that IHI President Kazuaki Kama will likely be investigated because he led the in-house investigation that compiled the false investigation report. The same paper relates that IHI reported operating profit of JPY24.6 billion for fiscal year 2006. The company's earnings release, however, did not include a combines JPY7 billion loss from its boiler projects in Kanagawa and Ehime prefectures. After the company concluded its internal investigation, it revised its 2006 report with a consolidated operating loss of JPY5.6 billion after booking an additional loss of JPY30 billion. Meanwhile, the Securities and Exchange Surveillanec Commission plans an investigation on IHI's public offerings made in June and January 2007, suspecting that the offer was based on false financial figures, Asahi relates. Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp -- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a Japan-based company engaged in six business segments. The Logistics and Steel segment offers concrete products, automated storages, loaders and others. The Machinery segment offers plastic processing machines, industrial boilers, pumps and others. The Energy Plant segment develops waste incineration facilities, nuclear power plants, thermal power plants and process plants, water treatment plants, renewable power plants and other facilities. The Aerospace segment produces aircraft engine parts and provides aircraft maintenance services. The Ship and Offshore segment builds container ships, bulk carriers, tankers and other ships, as well as develops marine equipment and machinery and provides design and engineering services. The Others segment provides real estate, financial and insurance services. The Troubled Company Reporter-Asia Pacific reported on Feb 14, 2008, that Standard & Poor's Ratings Services revised its outlook on the long-term corporate credit rating on IHI Corp. to negative from stable, reflecting growing expectations that the company's steady earnings recovery would be delayed, following the Tokyo Stock Exchange's announcement that it will place the company's stock on "alert status." The outlook change also reflects concerns that the company's financial flexibility will be constrained to some extent by this action. At the same time, Standard & Poor's affirmed its 'BB+' long-term corporate credit and 'BBB-' long-term senior unsecured issue ratings on the company. JAPAN AIRLINES: May Shift to A350 on Boeing Delivery Delays ----------------------------------------------------------- Due to production delays to Boeing's new 787 Dreamliner, Japan Airlines Corp. may instead buy Airbus A350 XWB planes, Xinhuanet reports. JAL has planned to purchase 35 units of Boeing's 787 but is now considering the Airbus planes after the aircraft manufacturer pushed delivery dates to 2009, nine months behind schedule, the same report says. "The risk of procuring from one firm for our next-generation planes is large. We should procure from more than one," an unnamed JAL officer told Xinhuanet. Xinhuanet says that delivery delays would add to the problems facing JAL, which lost more than JPY63 billion (US$587 million) in the last two business years, hit particularly hard by high oil prices because of its ageing fleet. The airline company is set on renewing its fleet with smaller but more fuel-efficient planes. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006, with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. NOMURA ALTERNATIVE: 10 Certificates Acquires Moody's Rating Cuts ---------------------------------------------------------------- Moody's Investors Service downgraded 10 certificates and placed on review for possible downgrade 3 classes of certificates from two transactions issued by Nomura Alternative Loan Trust. The transactions are backed by closed-end second lien loans. Substantial pool losses over the last few months have continued to erode credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default. The actions reflect Moody's expectation that the significant delinquency pipelines will have a further negative impact on the credit support for the senior and mezzanine certificates. Complete rating actions are: Issuer: Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series 2005-S3 -- Cl. M-1, Placed on Review for Possible Downgrade, currently Aa2 -- Cl. M-2, Downgraded to Ba3 from A2 -- Cl. B-1, Downgraded to B3 from Baa1 -- Cl. B-2, Downgraded to Ca from B3 -- Cl. B-3, Downgraded to C from Caa2 Issuer: Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series 2007-S1 -- Cl. A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-2, Downgraded to Ba1 from Aa2 -- Cl. M-3, Downgraded to Ba2 from Aa2 -- Cl. M-4, Downgraded to B1 from Aa3 -- Cl. M-5, Downgraded to B3 from Baa3 -- Cl. M-6, Downgraded to Ca from B1 -- Cl. M-7, Downgraded to C from Caa1 SPANSION INC: Fitch Maintains Issuer Default Rating at 'B-' ----------------------------------------------------------- Fitch Ratings affirmed Spansion Inc.'s Issuer Default Rating at 'B-' while downgrading these issue-level ratings due to lower recovery prospects: -- US$175 million senior secured revolving credit facility due 2010 to 'B/RR3' from 'B+/RR2'; -- US$625 million senior secured floating rating notes due 2013 to 'B/RR3' from 'B+/RR2'; -- US$225 million of 11.25% senior unsecured notes due 2016 to 'CCC/RR6' from 'CCC+/RR5'; and -- US$207 million of 2.25% convertible senior subordinated debentures due 2016 to 'CCC-/RR6' from 'CCC/RR6'. The rating outlook remains negative. Approximately US$1.2 billion of debt is affected. The negative outlook mainly reflects Fitch's expectations that: * the company's financial flexibility and liquidity position will remain relatively weak; * Spansion's free cash flow will be negative again in 2008, despite the anticipation of significantly lower capital spending, further pressuring the company's liquidity position or resulting in higher debt levels; and * ongoing industry-wide excess capacity, which continues to pressure average selling prices in all but the highest bit- density products and should constrain the company's ability to meaningfully expand gross margins and, therefore, achieve operating profitability over the near-term. Ratings concerns mainly center on: * substantial ongoing capital spending and research and development requirements, which should exceed 30% of sales in 2008, (at the higher end for the industry), while recognizing that Spansion's capital spending has been accelerated to support solid unit growth prospects and gain a sustainable cost leadership position; * Spansion's current lack of diversification beyond NOR flash memory markets (although emerging products are expected to address certain NAND and DRAM markets), which Fitch believes limits the company's tolerance for shortfalls in the commercial success of its technology roadmap or delays in transitioning to ever smaller circuitry nodes. Fitch notes that Spansion's key competitors have stronger financial flexibility, enabling them to withstand a challenging operating environment over the intermediate- term. The ratings are supported by Fitch's expectations that: * Spansion will continue to outgrow the NOR flash memory market over the next few years, driven by ongoing industry consolidation, including an opportunity to become a second source supplier for customers of Intel Corp. and STMicroelectronics N.V., which are forming a NOR flash memory joint venture currently expected to close March 28, 2008; * beyond the near-term, Spansion's significant recent investments in leading edge manufacturing technology and ongoing transition to smaller circuit geometries, as well as development of foundry partnerships, should enable the company to achieves sustainable operating profitability through a normalized cycle; * Spansion's technology roadmap, including its MirrorBit and ORNAND architectures, will expand the company's addressable market beyond NOR flash memory, potentially strengthening Spansion's longer-term unit growth and profitability prospects. The Recovery Ratings and notching reflect Fitch's expectation that Spansion's enterprise value, and hence recovery rates for its creditors, will be maximized as a going concern rather than as in liquidation under a distressed scenario. The lower recovery ratings incorporate Spansion's meaningful decline in operating EBITDA and increased debt levels over the past several quarters, as well as a greater proportion of secured debt within the capital structure. Fitch's analysis assumes Spansion is not restricted by covenants or borrowing bases to fully draw down on its existing bank credit facilities. Given the erosion of Spansion's profitability to nearly distressed levels over the past several quarters, Fitch has reduced the discount to operating EBITDA (in estimating distressed operating EBITDA) for 2007 to 25% from the previous discount of 55%. Fitch believes of US$800 million of rated senior secured debt, including US$625 million of senior secured floating rate notes and a fully drawn US$175 million U.S. revolving bank credit facility, would recover 51%-70% in a reorganization scenario, resulting in a 'RR3' recovery rating. A waterfall analysis provides 0%-10% recovery for the approximately US$225 million of rated senior unsecured debt and US$207 million of senior subordinated notes, both resulting in a recovery rating of 'RR6'. As of Dec. 31, 2007, Fitch believes Spansion's liquidity was weak but sufficient to meet Fitch's anticipated near-term short- fall in free cash flow and supported by: i) approximately US$416 million of cash and cash equivalents, and ii) approximately US$236 million in total availability under various existing credit facilities (subject to certain borrowing base limitations), including Spansion's undrawn US$175 million senior secured U.S. revolving credit facility expiring 2010. A portion of Spansion's additional availability is related to credit facilities at the company's wholly owned subsidiary, Spansion Japan. Total debt as of Dec. 31, 2007 wasUS$1.4 billion and consisted primarily of: i) approximately US$260 million outstanding under a JPY 48.8 billion (approximately US$400 million as of Dec. 31, 2007) Spansion Japan's, a wholly owned subsidiary of Spansion Inc., senior secured credit facility expiring 2012; ii) approximately US$625 million of floating rate senior secured notes due 2013; iii) approximately US$225 million of 11.25% senior unsecured notes due 2016; iv) US$207 million of 2.25% exchangeable senior subordinated debentures due 2016; and v) approximately US$80 million of other debt, including capital leases. ========= K O R E A ========= DURA AUTOMOTIVE: Creditor Balks at Confirmation of Chap. 11 Plan ---------------------------------------------------------------- Johnson Electric North America, Inc., asked the U.S. Bankruptcy Court for the District of Delaware to deny confirmation of Dura Automotive Systems Inc. and its debtor-affiliates' Joint Plan of Reorganization. Charlene D. Davis, Esq., at The Bayard Firm, in Wilmington, Delaware, says the Plan is unconfirmable because it provides for the assumption of a contract between with Debtors and Johnson Electric without proposing to cure the existing default of US$2,078,859, under the contract. Failure to cure existing default violates Sections 365(b), 1123(b) and 1123(d) of the Bankruptcy Code, thus rendering the Plan unconfirmable, Ms. Davis asserts. Johnson Electric asked that, if the Court confirms the Plan, the Court should compel the Debtors to pay the US$2,078,859 Cure Amount. 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). PHOTRONICS: Moody's Retains B1 Rating; Gives Negative Outlook ---------------------------------------------------------------- Moody's Investors Service affirmed Photronics, Inc.'s B1 corporate family rating, but revised its ratings outlook to negative from stable. The outlook revision reflects Moody's concern over Photronics' liquidity given the pending maturity of the US$150 million convertible subordinated notes on April 15, 2008. Although the company should have the capacity to redeem these notes, the commensurate reduction in cash and increase in revolving credit facility borrowings will likely pressure covenant compliance and diminish the company's financial flexibility at a time when access to new capital is uncertain. The outlook revision also reflects weaker than expected operating performance relative to Moody's expectations. The company has experienced significant margin erosion due to average selling price declines as well as an increased manufacturing base. Moody's notes that high capital spending levels for the U.S. nanofab facility in Boise will likely result in negative free cash flow for the current fiscal year. The rating is supported by the potential for improved operating performance in the remainder of fiscal 2008, the relative stability of business volumes, and the company's moderate leverage with debt-to-EBITDA at 2.5 times for the twelve months ended Jan. 27, 2008; however, Moody's recognizes that a material portion of the company's earnings and cash flows are derived from overseas. These ratings were affirmed: -- Corporate Family Rating at B1; -- Probability of Default Rating at B1; -- US$150 million 2.25% convertible subordinated notes due 2008 at B3 (LGD5, 83%). Point estimate revised from (LGD5, 86%). To the extent Photronics' redeems the full amount of the convertible subordinated notes, Moody's will withdraw the company's ratings. Brookfield, Connecticut-based Photronics, Inc. is a leading manufacturer of photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during front-end fabrication. Sales for the twelve months ended Jan. 27, 2008 were US$419 million. TAEYANG METAL: Declares Annual Cash Dividend -------------------------------------------- Taeyang Metal Industrial Co. Ltd.'s Board of Directors has declared an annual cash dividend of KRW100 per common share and KRW150 per preferred share, Reuters Investing Keys repors. According to the report, the dividend will be payable on April 10, 2008, to shareholders of record on December 31, 2007. The total cash dividend amount is KRW405,416,600, the report adds. With headquarters and factory in Gyeonggi Province, Korea, Taeyang Metal Industrial Co., Ltd. -- http://www.taeyangmetal.com/-- is engaged in the provision of cold-forged automobile products. The company produces two main products: cold forging products and fasteners, including cylinder head bolts, con rod bolts, bearing cap bolts, crank pulley bolts, tie rod pins, ball studs, plug bolts, fly wheel bolts, hub bolts and nuts, hex-stud bolts, hexagon socket head bolts, special bolts and nuts, hose bend screws, self-clinching screws, pins, stator bolts and refrigerator compressor bolts, and cold forging products for automobiles, cylinder head bolts, bearing cap bolts, con rod bolts, pulley lock bolts, hub bolts, tie bolts, washer assemblies hex bolts, flange bolts and stud bolts. Korea Ratings gave the company's commercial papers a B+ rating on Sept. 22, 2006. WOORI TECHNOLOGY: Amends Issuance of Fifth Bonds with Warrants -------------------------------------------------------------- Woori Technology Inc. has made amendments to the issuance of its fifth bonds with warrants, Reuters Investing Keys reports. According to the report, the details of the amendments are: -- issue size KRW105 million -- exercise price of KRW790 per share. Headquartered in Seoul, Korea, Woori Technology Inc. -- http://www.wooritg.com/-- is a manufacturer specialized in the provision of electronic equipment. The company operates its business through information communication and system divisions. Its information communication business division provides audio visual (AV) receivers, set-top boxes (Stubs), board virtual machine environment (VME), digital versatile disc (DVD) players and other related products. Its system business division offers distributed control systems (DCS), monitoring devices used in nuclear power plants and power management systems. In addition, the company provides robots used in home, cleaning and guiding. Korea Ratings gave the company's KRW2.20 billion straight bond private offering a B- rating with a stable outlook. =============== M A L A Y S I A =============== MANGIUM: Subsidiary Receives Writ of Summons from Alliance Bank --------------------------------------------------------------- Mangium Sawmill Sdn Bhd, a wholly owned subsidiary of Mangium Industries Bhd has on, February 26, 2008, received a Writ of Summons together with a Statement of Claim dated from Alliance Bank Malaysia Berhad. The Statement of Claim alleges that Mangium Sawmill had defaulted in repayments of the facilities granted to it by Alliance. The claims made by Alliance against Mangium Sawmill are: a) the sums of MYR17,720,266.63 and MYR1,903,747.76; b) agreed interest on the total outstanding OD facility of MYR17,720,266.63 at the rate of 10.25% per annum from August 31, 2007, to date of payment; c) overdue interest on the total outstanding Bankers Acceptance Facility of MYR1,903,747.76 at the rate of 10.25% per annum from August 31, 2007, to date of payment; d) legal costs of recovering the mentioned outstanding sums on a solicitor/clients basis; and e) other relief that may be deemed fit and proper by the Court. Mangium Sawmill is currently seeking legal advice and will announce further development on this matter as and when necessary. Mangium Industries Berhad's principal activities are the manufacture and trade of timber and timber related products. Other activities include provision of printing services, publisher, printer consultants and advertisers, trading of alcoholic beverages, general trading of office furniture, operation and development of the plantation and investment holding. Operations of the Group are carried out in Malaysia. The TCR-AP reported on May 25, 2007, that Mangium Industries, on May 22, became an affected listed issuer pursuant to the provisions of Amended Practice Note 17/2005, as its shareholders' equity on consolidated basis is less than 25% of its issued and paid-up capital. As an affected listed issuer, Mangium is required to formulate and implement a plan to regularize its financial condition within a timeframe stipulated by relevant authorities. MEGAN MEDIA: Court Appoints Provisional Liquidators for Unit ------------------------------------------------------------ The High Court of Malaya at Kuala Lumpur has appointed Cho Choo Meng and Mohd Anwar bin Yahya of PricewaterhouseCoopers Malaysia as the Provisional Liquidators of Megan Media Holdings Berhad's wholly owned subsidiary, Memory Tech Sdn Bhd. * Events leading to appointment of Provisional Liquidators Pursuant to the Trust Deed dated October 11, 2005, as amended by a Supplementary Trust Deed dated November 9, 2006, between Mayban Trustees Berhad -- the Petitioner and Memory Tech, these Bai Bithamin Ajil Islamic Debt Securities was issued by Memory Tech: a) MYR320 million nominal value of primary bonds; and b) MYR112.27 million nominal value of non-detachable secondary bonds and Hibah Promissory Notes of MYR40.56 million. Following Megan Media's announcements regarding to its inability to honor maturing banking facilities, Mayban Trustees issued a Declaration of Event of Default against Memory Tech, as instructed by the bondholders, on May 30, 2007, followed by a demand for payment against Megan Media as guarantor, for MYR436.11 million on June 5, 2007. Subsequently, the winding-up petition and the Summons in Chambers for the appointment of Provisional Liquidators were served on Memory Tech on September 19, 2007. The company was in continuous discussions with the Creditor Banks to formulate a restructuring scheme since its first PN1 announcement in May 2007. In the meeting convened with creditor banks on January 25, 2008, the majority of creditor banks present reverted in support of the continuance of the Restraining Order but the company was unable to garner the requisite number of support to obtain an extension of the Restraining Order. As the company was unable to secure the requisite support from Scheme Creditors for the extension of the Restraining Order or to pursue a scheme of arrangement with Creditor Banks, the Board had resolved, in good conscience, that it will not resist any winding up action initiated by any creditor. The hearing of the wind-up petition is fixed for March 5, 2008. * Effects in the appointment of Provisional Liquidators The appointment of Provisional Liquidator has significant impact on Megan Media's operations as Memory Tech was the sole manufacturing entity of the Group. Upon losing control of Memory Tech, Megan Media will essentially be a listed holding company with no operating subsidiary, except for Memory Media Sdn Bhd, which is a trading entity for goods manufactured by Memory Tech. Financially, upon losing control of Memory Tech, its financial results will no longer be consolidated into Megan Media's accounts. This is a significant impact as Memory Tech contributed more than 97% of the Group's revenue as at April 30, 2007, and more than 93% of the Group's assets are held under Memory Tech as at April 30, 2007. Memory Tech is principally engaged in the manufacture and sale of data storage products like computer diskettes, videocassette tapes, compact disc recordable and digital versatile disc recordable. Its present authorized share capital is MYR300 million comprising 300 million ordinary shares of MYR1.00 each of which 130 million ordinary shares of MYR1.00 each have been issued and fully paid up. Memory Tech's net liabilities as at April 30, 2007, reached MYR904.49 million. Megan Media Holdings Berhad's principal activities are manufacturing and trading data storage media products like Computer diskettes, video cassette tapes, compact disc recordable (CD-R's) and digital versatile disc recordable (DVD- R's). The Group operates in Malaysia, Singapore and other countries. The Troubled Company Reporter-Asia Pacific reported on June 11, 2007, that the Rating Agency Malaysia downgraded the long-term rating of Memory Tech Sdn Bhd's MYR320 million Bai Bithaman Ajil Islamic Debt Securities (2005/2012) ("BaIDS"), from C3 (with a negative outlook) to D. The BaIDS carries a corporate guarantee from MTSB's holding company, Megan Media Holdings Berhad. Concurrently, RAM has lifted the Rating Watch (with a negative outlook) that had been placed on MTSB on May 9, 2007, following the failure of MTSB and MJC (Singapore) Pte Ltd, another wholly owned subsidiary of Megan Media, to repay their trade facilities amounting to MYR47.36 million. On June 19, 2007, the company was classified as a PN17 company, and was given eight months to submit a substantive plan to regularize its financial condition. SELOGA HOLDINGS: Incurs MYR4.42 Mil. in Qtr. Ended Dec. 31, 2007 ---------------------------------------------------------------- Seloga Holdings Berhad incurred a MYR4.42-million net loss on MYR15.15 million of revenues in the fourth quarter ended Dec. 31, 2007, as compared to a net loss of MYR1.2 million on MYR30.39 million of revenues in the same quarter of 2006. The company's balance sheet as of December 31, 2007, reflected strained liquidity with current assets of MYR78 million available to pay MYR83.42 million of current liabilities coming due within the next 12 months. Seloga's balance sheet as of end-December also showed total assets of MYR136.86 million and total liabilities of MYR109.22 million, resulting in a shareholders' equity of MYR27.64 million. Headquartered in Selangor Darul Ehsan, Malaysia, Seloga Holdings Berhad's -- http://www.seloga.com.my/-- principal activities are the provision of civil engineering contracting services, property development, provision of insurance agency services and investment holding. Other activities include mechanical and electrical engineering contracting services and manufacture of timber moldings. The Group operates predominantly in Malaysia. The company is currently classified under the PN-17 list of Companies under the Bursa Malaysia Securities Bhd. SOLUTIA: May Pay US$5,000,000 to Waive Backstop Commitment Pact -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Solutia Inc. and its debtor-subsidiaries to pay not more than US$5,000,000 to waive conditions to the backstop commitment agreement relating to the US$2,050,000,000 exit financing funded by Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. Under the Backstop Commitment Agreement, investors, comprised of Highland Crusader Holding Corporation, Merrill Lynch, Pierce, Fenner and Smith Incorporated; funds managed by Longacre Fund Management LLC; funds managed by Murray Capital Management, Inc.; Bear, Stearns & Co., Inc., as an assignee of Southpaw Asset Management's interest; and UBS Securities LLC, agreed to backstop Solutia's US$250,000,000 rights offering in exchange for certain fees and the right to purchase 15% -- or US$37,500,000 -- of the rights offering. The Rights Offering is fully subscribed, but Solutia still needs the Backstop Investors, or another party, to purchase the 15% interest that was reserved for the Backstop Investors. Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York, notes that the Backstop Investors can terminate their obligation to purchase the 15% stake of the US$250,000,000 loan based on the occurrence of one of several conditions under the Backstop Commitment Agreement. One of the conditions regarding call protection on the terms loans will not be met under the Exit Financing, he said. Because the Exit Financing does not satisfy the condition regarding the call protection, the Backstop Investors can walk away from their right and obligation to purchase US$37,500,000 of the Rights Offering that Solutia needs upon emergence, Mr. Henes explained. "Accordingly, there is a very good business reason for Solutia to make aUS$5 million payment to remove this final obstacle to a successful reorganization," Mr. Henes said. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)(NYSE:SOA- WI) -- 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. 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. 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. 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. (Solutia Bankruptcy News, Issue No. 119; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). &