T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, March 4, 2008, Vol. 9, Issue 45 Headlines A U S T R A L I A AIR NEW ZEALAND: First-Half Profit Up 58% to US$94 Million ALCOPANEL AUSTRALIA: To Declare Dividend on March 5 ALLCO FINANCE: Chairman & Two Executive Directors Resign AUTHENTIC VILLAGE: Commences Liquidation Proceedings BRICK INDUSTRY: Commences Liquidation Proceedings CEDAR SKI: Members' Final Meeting Set for March 11 COLONIAL INTERNATIONAL: Members' Meeting Slated for March 14 COEUR D'ALENE: Discloses 2007 Exploration Program Results CYMBIS FINANCE: Fitch Affirms B Issuer Default Rating GRAEME HANLY: Placed Under Voluntary Wind-Up J & F MARKETING: Members & Creditors to Meet on March 13 KENDLE INT'L: Net Income Increases to US$18.7 Million in 2007 KENTONVALE PTY: Undergoes Liquidation Proceedings RED SEAL: Placed Under Voluntary Wind-Up SECURITY SERVICES: Members Opt to Shut Down Firm SYMBION HEALTH: Moody's Withdraws Ba1 Issuer Rating VICTORIAN BOAT: To Declare Priority Dividend on March 26 ZINIFEX: Enters Into AU$12-Bil. Merger Agreement with Oxiana C H I N A , H O N G K O N G & T A I W A N CHINA EASTERN: Regional Airline With AVIC I Approved HANS ENERGY: Inks Oil Tanker Terminal Project with Taishan City JIANGXI COPPER: Seeks To Buy 4.2% Stake in Nanchang Bank PETROLEOS DE VENEZUELA: Court May Rule on Asset Freeze This Week SHENZHEN SEG: To Implement Share Merger Reform I N D I A FIAT SPA: India Plant to Start Linea Line Production in August GENERAL MOTORS: Idles More Plants as Supplier's UAW Talks Resume IFCI LTD: 53% of Employees Avail of Voluntary Retirement Scheme IFCI LTD: Gov't Budget Provides INR433 Crore for Restructuring MYLAN INC: Books US$1.27-Bil. Loss in Three Mos. Ended Dec. 31 MYLAN INC: J. Dore' Joins as Matrix Labs CEO & Managing Director MYLAN INC: Forest Labs Will Assume Rights on Hypertension Drug SHAW GROUP: Unit to Provide Engineering Services in India TATA MOTORS: Unit to Manufacture Floor Beams for Boeing 787 TATA MOTORS: Reduction in Excise Duties Cues Firm to Cut Prices * INDIA: Gov't Budget a Political & Fiscal Balance, Moody's Says * INDIA: Fitch Says Fiscal Improvement in Place I N D O N E S I A CA INC: Will USPay $0.04 Per Share Dividend on March 28 GARUDA INDONESIA: Plans to Provide Airline Service to Kendari KERETA API: To Form Joint Venture with Tambang Batubara PT INCO: 2007 Net Profit Doubles to US$1.17 Billion TELKOM INDONESIA: To Cut Telephone Tariffs by 20% J A P A N FLOWSERVE CORP: Reports US$255.7 Million Net Income in FY 2007 FLOWSERVE CORP: To Repurchase US$300-Million Common Stock FORD MOTOR: Navistar Re-Files Breach of Contract Lawsuit JAPAN AIRLINES: Plans New Share Issuance to Upgrade Planes JAPAN AIRLINES: Discloses Revival Plan for 2008 to 2010 JAPAN AIRLINES: Moody's Changes Ba3 Rating Outlook to Positive MITSUBISHI MOTORS: Expands Supply Agreement with Nissan Motor MITSUBISHI MOTORS: Discloses Step Up 2010 Mid-Term Business Plan MITSUBISHI MOTORS: Reports January Production, Sales & Export TOM GROUP: S&P 'BB+' Ratings Remain on Watch Negative K O R E A FRESH DEL MONTE: Earns US$179.8 Million in Fiscal Year 2007 M A L A Y S I A ARK RESOURCES: Dec. 31 Balance Sheet Upside-Down by MYR8.85 Mil. CNLT (FAR EAST): Incurs MYR13.7MM Net Loss in Qtr. Ended Dec. 31 PAXELENT CORPORATION: SC Rejects Appeal for Revised Revamp Plan SOLUTIA INC: Judge Beatty OKs Bank of New York Settlement Pact SOLUTIA INC: Court Approves Bayer & Lanxess Claims Settlement SOLUTIA: Moody's Designates B2 Rating on US$400 Mil. Facility WONDERFUL WIRE: Posts MYR9.98 Net Loss in Qtr. Ended Dec. 31 N E W Z E A L A N D 1208979 LIMITED: Appoints John Michael Gilbert as Liquidator ARMOUR ROOFING: Taps John Francis Managh as Liquidator ART APARTMENTS: Creditors' Proofs of Claims Due by March 18 AUCKLAND RESIDENTIAL: Creditors' Proofs of Debt Due on March 18 BLUES CONTRACTING: Commences Liquidation Proceedings BRIBANC PROPERTY: Fixes March 18 as Last Day to File Claims DREAM PROPERTY: Court Appoints Levin as Liquidator MARBLE MAGIC: Creditors' Proofs of Debt Due on March 6 MASTER BUTCHERS: Fixes March 14 as Last Day to File Claims MICHEL'S PATISSERIE: Wind-Up Petition Hearing Set for March 6 NIPPON MEAT: Shares Place Company Under Voluntary Liquidation PHOENIX LINNINGS: Court to Hear Wind-Up Petition on March 13 RISQY LTD: ASIC Receives Court Approval for Closure WANAKA GAS: Subject to CIR's Wind-Up Petition P H I L I P P I N E S CHIQUITA BRANDS: To Hold Annual Shareholders' Meeting on May 22 S I N G A P O R E CD-BIZ DIRECTORIES: Creditors' Proofs of Debt Due on March 14 CROWN HOLDINGS: Discloses Revisions in Tax Valuation Allowance HIANGKIE INDUSTRIES: Creditors' Meeting Set for March 20 LAZARD LTD: Gets Okay for Additional US$100 Mln Share Repurchase TRAD TECHNOLOGY: Creditors' Proofs of Debt Due on March 14 S R I L A N K A INDUSTRIAL FINANCE: Fitch Cuts Rating to BB-(Ika); Outlook Neg. T H A I L A N D TUNTEX (THAILAND): Inks MOU To Sell Assets to Indorama Thailand * BOND PRICING: For the Week 03 March to 07 March 2008 - - - - - ================= A U S T R A L I A ================= AIR NEW ZEALAND: First-Half Profit Up 58% to US$94 Million ---------------------------------------------------------- Air New Zealand Ltd.'s first-half profit increased 58% to US$94 million, compared to the same period last year, amid high fuel costs and increased competition, The Associated Press reports. The company's profit before unusual items and tax was up 62% to US$130 million. However, The AP relates, the company said that due to oil price volatility, a forecast for a better full-year result is less certain. "Fuel is our largest operational expense and although we have a hedging program in place designed to protect the business from short-term volatility in the market, continued high fuel costs remain a concern," Deputy Chairman Roger France was quoted by the news agency as saying. With no easing of oil prices in the near term, the airline's investment in more fuel-efficient aircraft and decisions on destinations they fly to will be increasingly important, Mr. France added. According to The AP, Chief Executive Rob Fyfe noted that at current prices, fuel costs in the second half of the company's financial year will be "substantially higher." The company was 80% hedged for fuel costs for the second half, the report notes. For the six-month period Air New Zealand's operating revenue was up 9.6% at US$1.9 billion, boosted by additional capacity on both domestic and long-haul services and higher passenger numbers per flight, The AP relates. The airline, the report adds, increased long-haul capacity by 9.1% and passenger loads by 5.7%, but this was partly offset by the strength of the New Zealand dollar. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand Ltd is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. Moody's Investors Service, on Sept. 4, 2007, affirmed Air New Zealand Limited's Ba1 senior unsecured issuer rating. At the same time, it has changed the outlook on the rating to positive from stable. ANZ carries Standard & Poor's Ratings Services' 'BB' corporate credit rating, with stable outlook. ALCOPANEL AUSTRALIA: To Declare Dividend on March 5 --------------------------------------------------- Alcopanel Australia Pty. Ltd., which is in liquidation, will declare first and final dividend on March 5, 2008. Only creditors who were able to file their proofs of debt by February 27, 2008, will be included in the company's dividend distribution. The company's liquidator is: P. Newman HLB Mann Judd Chartered Accountants 160 Queen Street, Level 1 Melbourne, Victoria 3000 Australia About Alcopanel Australia Alcopanel Australia Pty Ltd operates retail nurseries and lawn and garden supply stores. The company is located at Mornington, in Victoria, Australia. ALLCO FINANCE: Chairman & Two Executive Directors Resign -------------------------------------------------------- Allco Finance Group's Chairman David Coe stepped down from the board of directors, Bloomberg News reports. In addition, Gordon Fell and David Turnbull also resigned as executive directors. All three would remain involved with the management of the group's businesses, while the Board would look for a new independent chairman, Reuters relates. Shares in Allco have slumped this year and fell more than 60% on Feb. 25 2008, on concern over its high debt levels, triggering problems with its lenders, Reuters says. Allco told Reuters that it was in "constructive discussions" with its lenders to restructure debt. Reuters also shares that Allco plans to sell some assets as it tries to meet debt-refinancing deadlines. The company's market value has shrunk to just one-tenth of its value last May, prompting banks to call in loans. About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid puttings its operations in the hands of administrators. According to The Age, Allco board is faced with four problems: -- Meeting a fast-approaching deadline to refinance at least US$250 million in debt. -- Ensuring there is enough cash to cover its continuing, and much larger, loan commitments. -- Renegotiating or pulling out of a recently announced joint venture deal to buy US$1.7 billion of US power stations, of which Allco would fund half by debt and equity. -- Signing the company's accounts, for which they will be personally liable, that would allow the suspension on Allco's beleaguered shares to be lifted. AUTHENTIC VILLAGE: Commences Liquidation Proceedings ---------------------------------------------------- The Authentic Village Baker (Toorak) Pty. Ltd.'s creditors agreed on January 30, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Brendan John Marchesi at Bent & Cougle Pty. Ltd. to facilitate the sale of its assets. The liquidator can be reached at: Brendan John Marchesi Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne, Victoria 3004 Australia About Authentic Village The Authentic Village Baker (Toorak) Pty. Ltd. operates restaurants. The company is located at Toorak, in Victoria, Australia. BRICK INDUSTRY: Commences Liquidation Proceedings ------------------------------------------------- Brick Industry Group Training Company Pty. Ltd.'s members agreed on January 24, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Richard Judson to facilitate the sale of its assets. The liquidator can be reached at: Richard Judson Members Voluntarys Pty. Ltd. P.O. Box 819 Moorabbin, Victoria 3189 Australia About Brick Industry Brick Industry Group Training Company Pty. Ltd. operates vocational schools. The company is located at Redfern, in New South Wales, Australia. CEDAR SKI: Members' Final Meeting Set for March 11 -------------------------------------------------- Gideon Rathner, Cedar Ski Club Pty. Ltd.'s appointed estate liquidator, will meet with the company's members at 10:00 a.m. on March 11, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Gideon Rathner 5 St Kilda Road St. Kilda, Victoria 3182 Australia About Cedar Ski Cedar Ski Club Pty. Ltd. operates membership sports and recreation clubs. The company is located at Mount Buller, in Victoria, Australia. COLONIAL INTERNATIONAL: Members' Meeting Slated for March 14 ------------------------------------------------------------ Neil R. Cussen and Simon Cathro, Colonial International Factors Pty. Limited's appointed estate liquidators, will meet with the company's members at 10:00 a.m. on March 14, 2008, to provide them with property disposal and winding-up reports. The company will also declare dividend on March 5, 2008. Creditors are required to file their proofs of debt by March 4, 2008, to be included in the company's dividend distribution. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on Feb. 27, 2007. The liquidators can be reached at: Neil R. Cussen Simon Cathro Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Colonial International Colonial International Factors Pty Limited is a distributor of durable goods. The company is located at Melbourne, in Victoria, Australia. COEUR D'ALENE: Discloses 2007 Exploration Program Results --------------------------------------------------------- Coeur d'Alene Mines Corporation reported significant results from its US$14.9 million exploration program during 2007. Coeur's exploration strategy continued to focus on cost- effectively adding new mineralization at its existing properties while continuing to expand the company's greenfields initiatives. Due to this success and the addition of the Palmarejo Project in late 2007, the company has increased its 2008 exploration budget to a record US$27.6 million, with almost a third of that amount allocated to Palmarejo, where production is expected to commence next year at annualized levels of approximately 10.4 million ounces of silver and 115,000 ounces of gold. Highlights of the 2007 program include: * High-grade drill results from Guadalupe Norte at Palmarejo, Mexico and from the new Los Bancos target north of Guadalupe. * Nearly eleven million new silver mineral resource ounces defined in two of five new veins discovered in the Cerro Bayo District, Chile. * Discovery of the new Betty Sur high-grade silver veins in the Martha District, Argentina. * New silver, gold and base metal mineralization at the Rochester mine, Nevada. * Favorable results from exploration on the company's properties in the Lake Victoria Gold Belt of Tanzania. "These positive results confirm our ability to continue to grow the Company through exploration on our large land positions around our existing mines and development projects," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. "Because of these recent successes and the completion of the transactions that resulted in the addition of the Palmarejo project to Coeur, we have increased our exploration program by over 80% this coming year, with almost a third of the total targeted for our newly acquired Palmarejo silver and gold development property, where production will begin within twelve months, and where our extensive land holdings hold great potential for additional exploration success." Palmarejo Drilling in December at the company's newly acquired Palmarejo project in the state of Chihuahua, Mexico returned positive results from the Guadalupe zone and also continued to confirm the prospective nature of the nearby Los Bancos structure. Palmarejo is under construction with production expected to begin in the first quarter of 2009. The site is located in Mexico's premier silver-gold district in Chihuahua and the Sierra Madre belt, with land holdings covering more than 12,100 hectares. A feasibility study is nearing completion to define the first proven and probable mineral reserve on this large prospective property. The company believes the Palmarejo District holds tremendous exploration potential and has committed over US$8.3 million in 2008 to discover new mineral resources and define new mineral reserves. In recent drilling at Guadalupe, assay results confirmed the extension of the Guadalupe Norte Clavo, which remains open to the north and at depth. Very significant results were received from several holes - notably TGDH-218D and 222D. At the Los Bancos target, located north of Guadalupe, reverse circulation drill hole LBDH-025, the deepest hole drilled to date, intercepted a 36.6-meter thick high-grade horizon. Previous shallow drilling had intersected anomalous mineralization with high silver-to-gold ratios, suggesting that this earlier drilling intersected the veins high in the paleo-epithermal system and above ore grade mineralization. Hole 25 confirmed our geologic model. Drilling recommenced in January on Guadalupe with two core drills to tighten the existing drill spacing to upgrade current inferred and indicated mineral resources to indicated and measured confidence and further extend the Guadalupe Norte zone. Drilling will resume at Los Bancos and around the main Palmarejo area later this quarter. Cerro Bayo (Chile) At year-end, a total of 16,800 meters of core drilling was completed in 87 drill holes on the five new ore-bearing structures discovered in June. Most of this drilling was conducted on the Dagny and Fabiola veins where mineralization has now been defined over a NW-SE strike of 700 meters and a vertical height of 120 to 150 meters, and remains open for expansion in the SE direction on both veins. Mineral resources estimated from this extensive drilling program on just two of the five new veins are shown in the following table. They are now subject to engineering and economic analyses to establish an initial mineral reserve. Permitting commenced in the fourth quarter and development for underground access is expected to commence in the third quarter of this year. Martha (Argentina) In the high-grade Martha silver and gold district in southern Argentina, surface exploration was successful in discovering mineralization in new structures using detailed stratigraphic, structural and alteration mapping. Late in the year, drilling on one of the new structures - Betty Sur - encountered high- grade silver mineralization north of the main Martha mine. Betty Sur, exposed as thin veinlets and faults over an east-west strike length of over 0.7 km, is very significant due to the high-grade nature of the mineralization and because it is hosted in rocks similar to those of the Martha Mine. Four core holes were drilled into Betty Sur in 2007 with the following results. Argentina Greenfields The company conducted an extensive greenfields program in 2007 in Argentina, focused on five new properties in the province of Santa Cruz. Late in the year, a program of eight core holes was completed at the wholly owned Cisne property which borders the Company's Lejano property northwest of the Martha mine in western Santa Cruz. Core length is believed to be true width as mineralization occurs in sub-horizontal zones. Very encouraging results were obtained from core holes C-03 and C-06, which intersected moderate-grade silver mineralization over significant drill widths. Additional drilling is planned in 2008. Rochester (Nevada) During the last quarter of 2007, a program of trenching and core drilling was conducted in the bottom of the main Rochester pit, designed to test the extension of two high-grade vein systems beyond the pit limits, termed the Pump and Corner structures. All holes encountered significant precious and base metal mineralization with particularly encouraging Ag and Au mineralization intersected in holes 4, 5, 6 and 7. Additional exploration is planned for 2008 on the Pump and Corner structures in the Rochester mine and other structural zones and vein systems within the district. Tanzania During the year activities were focused on three project areas: Kiziba Hill, Saragurwa and Bunda, all located within the Lake Victoria Gold Belt. At Kiziba Hill, a property controlled 100% by the company, which lies west of the Geita gold mine, a drill program was completed that consisted of 6,100 meters of reverse circulation drilling and 1,100 meters of core drilling. The holes were drilled along widely spaced fences across 4 kilometers of strike length. Gold mineralization occurs in multiple east-west striking shear zones. Over 35 drill intervals with gold mineralization have been intercepted at Kiziba in these zones. To date, all drilling has been performed on fences spaced 400 meters apart in an east-west direction and 70 meter north to south. In-fill drilling is planned to confirm mineralization continuity. Drill hole IDs with KC prefix are core holes and holes with KR prefix are reverse circulation holes. True widths are not yet known. At Saragurwa, which the company controls under an option agreement with a private Tanzanian entity, a core-drilling program was completed during 2007 totaling 2,800 meters. A detailed soil-sampling program was carried out in conjunction with the drill program and a total of 271 samples were collected. Gold mineralization is being intercepted and results from the 2007 soil survey at Saragurwa have identified two additional parallel zones of anomalous gold with strike lengths of over one kilometer. All core holes. True widths are not yet known. About Coeur d'Alene Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's Ratings Services B- rating. CYMBIS FINANCE: Fitch Affirms B Issuer Default Rating ----------------------------------------------------- Fitch Ratings has affirmed Cymbis Finance Australia Limited's long-term foreign currency issuer default rating at B, short- term foreign currency IDR at B, individual at D, support at 5 and support rating floor at 'No Floor.' Simultaneously, the ratings have been removed from rating watch negative and a negative outlook assigned to the long-term foreign currency IDR. CFAL's ratings were placed on RWN in November 2007 following the appointment of receivers to a closely associated NZ finance company, Capital + Merchant Finance Limited, by the latter's senior creditor, Fortress Credit Corporation. Prior to C+M's failure, the owners of both CFAL and C+M were linked, while there were also some operational relationships. In Fitch's opinion, CFAL appears to have withstood the initial impact of C+M's failure. However, CFAL's ratings have been removed from RWN and assigned a Negative Outlook to reflect comments made by the receiver that it intends to investigate specific transactions and activities relating to C+M. The outcome of these investigations may potentially have a negative impact on CFAL's ratings and would need to be resolved to the satisfaction of Fitch in order to revise the Negative Outlook. CFAL is a privately owned finance company established in August 2004 and is domiciled in Queensland, Australia. It lends primarily for property development projects in Queensland, although it is slowly expanding interstate. GRAEME HANLY: Placed Under Voluntary Wind-Up -------------------------------------------- Graeme Hanly Pty. Ltd.'s members agreed on January 29, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Samuel Richwol at O'Keeffe Walton Richwol to facilitate the sale of its assets. The liquidator can be reached at: Samuel Richwol O'Keeffe Walton Richwol 431 Burke Road Glen Iris, Victoria 3146 Australia Telephone:(03) 9822 9823 About Graeme Hanly Graeme Hanly Pty. Ltd., which is also trading as Richardson & Wrench Taree, is involved with real estate agents and managers. The company is located at Taree, in New South Wales, Australia. J & F MARKETING: Members & Creditors to Meet on March 13 -------------------------------------------------------- J & F Marketing Services Pty. Ltd. will hold a final meeting for its members and creditors at 10:00 a.m. on March 13, 2008. During the meeting, the company's liquidator, Stan Traianedes at McLean Delmo Hall Chadwick, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Stan Traianedes c/o McLean Delmo Hall Chadwick Accountants & Business Advisers 459 Collins Street, Level 12 Melbourne, Victoria 3000 Australia About J & F Marketing J & F Marketing Services Pty. Ltd., which is also trading as Crackajack Couriers and the Parcel Specialists, provides courier services except by air. The company is located at Hallam, in Victoria, Australia. KENDLE INT'L: Net Income Increases to US$18.7 Million in 2007 ------------------------------------------------------------- Kendle reported financial results for the fourth quarter and full year ended Dec. 31, 2007. Net service revenues for fourth quarter 2007 were approximately US$104.3 million, an increase of 21 percent over net service revenues of approximately US$86.4 million for fourth quarter 2006. Income from operations for fourth quarter 2007 was approximately US$15.2 million, or 14.6 percent of net service revenues, compared to a loss of approximately US$1.8 million in fourth quarter 2006. Net income was approximately US$6.4 million in fourth quarter 2007 compared to a loss of US$4.7 million in the fourth quarter of 2006. Net service revenues by geographic region for the fourth quarter of 2007 were 50 percent in North America, 40 percent in Europe, 6 percent in Latin America and 4 percent in the Asia/Pacific region. The top five customers based on net service revenues accounted for 29 percent of net service revenues for fourth quarter 2007 compared to 26 percent of net service revenues for fourth quarter 2006. New business awards were US$174 million for fourth quarter 2007, which represents a 6 percent increase over the same quarter last year. Contract cancellations for the quarter were approximately US$32 million. Total business authorizations amounted to US$869 million at Dec. 31, 2007, up 5 percent from Sept. 30, 2007, and an all-time company high. "2007 was a year of significant growth for Kendle highlighted by record backlog and a strong increase in revenues and operating margin," said Chairperson and Chief Executive Officer, Candace Kendle, PharmD. "Demonstrating our continued focus on project delivery and operational excellence in support of our customers' clinical development goals, we grew above the market for the fourth consecutive year. In particular, our increased scale and competitiveness in winning and executing megatrials was a significant contributor to our success and positions us well to deliver improved earnings and profitability for our shareholders as we move forward." Reimbursable out-of-pocket revenues and expenses were approximately US$50.4 million for fourth quarter 2007 compared to approximately US$31.7 million in the same quarter a year ago. Cash flow from operations for fourth quarter of 2007 was approximately US$23.8 million compared with US$462,000 for the same period of the prior year. Cash and marketable securities at Dec. 31, 2007 totaled approximately US$46.4 million, including US$844,000 of restricted cash, compared with US$22.3 million, which included US$2.4 million of restricted cash, at Dec. 31, 2006. Days sales outstanding in accounts receivable were 33 days for fourth quarter 2007, compared with 46 days for the same period of the prior year, and capital expenditures for fourth quarter 2007 totaled US$5.4 million, compared with US$2.7 million for the same period of the prior year. Full Year Results Net service revenues for the year ended Dec. 31, 2007, were approximately US$397.6 million, an increase of 40 percent over net service revenues of US$283.5 million for the year ended Dec. 31, 2006. Interest expense in the year ended Dec. 31, 2007, was approximately US$14.9 million, primarily related to debt incurred to finance the CRLCS acquisition, compared to interest expense of approximately US$6.8 million in the year 2006. Income from operations for the year ended Dec. 31, 2007, was approximately US$52.8 million, or 13.3 percent of net service revenues, compared with US$20 million or 7.1 percent of net service revenues for the same period of the prior year. Excluding the amortization charge referenced previously, proforma income from operations for the year ended Dec. 31, 2007 was approximately US$57 million or 14.3 percent of net service revenues. Excluding the amortization charge, acquisition- related expenses and the intangible impairment charge referenced previously, in the year ended Dec. 31, 2006, proforma income from operations was US$31.7 million, or 11.2 percent of net service revenues. Net income for the year 2007 was approximately US$18.7 million compared to net income of approximately US$8.5 million in the year 2006. Excluding the amortization of acquired intangibles and the write-off of deferred financing costs, net income for the year 2007 was approximately US$24 million. Excluding the amortization of acquired intangibles, acquisition-related expenses and intangible impairment charge in 2006, net income was approximately US$15.9 million. Net service revenues by geographic region for the year ended Dec. 31, 2007, were 50 percent in North America, 42 percent in Europe, 5 percent in Latin America and 3 percent in the Asia/Pacific region. The top five customers based on net service revenues accounted for 25 percent of net service revenues for the year 2007 compared to 28 percent of net service revenues for the year 2006. Cash flow from operations for the year ended Dec. 31, 2007, was US$61.9 million, compared with a positive US$17.6 million for the same period of 2006. Capital expenditures for the 12-month period ended Dec. 31, 2007 totaled US$16.2 million, compared with US$8.8 million for the 12-month period in 2006. 2008 Guidance For the full year 2008, the company is projecting net service revenues in the range of US$450 to US$460 million and earnings per share on a GAAP basis of US$1.90 to US$2.07. About Kendle Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) -- http://www.kendle.com/-- is a global clinical research organization and provides Phase II-IV clinical development services worldwide. The company's global clinical development business is focused on five regions - North America, United Kingdom, Asia/Pacific, Africa and Latin America including Brazil. * * * In December 2007, Standard & Poor's Rating Services revised its outlook on Kendle International Inc. to positive from stable. S&P also revised its issue rating on the company's amended US$53.5 million revolver to 'BB' with a recovery rating of '1', indicating the expectation of very high (90%-100%) recovery of principal in the event of default. At the same time, S&P affirmed all existing ratings, including its 'B+' corporate credit rating, on the company. KENTONVALE PTY: Undergoes Liquidation Proceedings ------------------------------------------------- Kentonvale Pty. Limited's members agreed on January 24, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Richard Judson to facilitate the sale of its assets. The liquidator can be reached at: Richard Judson Members Voluntarys Pty. Ltd. P.O. Box 819 Moorabbin, Victoria 3189 Australia About Kentonvale Pty. Kentonvale Pty. Limited operates investment offices. The company is located at St Kilda, in Victoria, Australia. RED SEAL: Placed Under Voluntary Wind-Up ---------------------------------------- Red Seal Investments Pty. Ltd.'s members agreed on Jan. 24, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Richard Judson to facilitate the sale of its assets. The liquidator can be reached at: Richard Judson Members Voluntarys Pty. Ltd. P.O. Box 819 Moorabbin, Victoria 3189 Australia About Red Seal Red Seal Investments Pty. Ltd. operates holding companies. The company is located at Hastings, in Victoria, Australia. SECURITY SERVICES: Members Opt to Shut Down Firm ------------------------------------------------ Security Services (Bendigo) Armoured Car Division Pty. Ltd.'s members agreed on January 29, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Stirling L. Horne and Petr Vrsecky to facilitate the sale of its assets. The liquidators can be reached at: Stirling L. Horne Petr Vrsecky c/o Draper Dillon 440 Collins Street, Level 12 Melbourne, Victoria 3000 Australia About Security Services Security Services (Bendigo) Armoured Car Division Pty. Ltd. provides miscellaneous personal services. The company is located at Bendigo, in Victoria, Australia. SYMBION HEALTH: Moody's Withdraws Ba1 Issuer Rating --------------------------------------------------- Moody's Investors Service, on March 3, withdrew the Ba1 issuer rating of Symbion Health Limited. The rating has been withdrawn for business reasons. Symbion Health Ltd, headquartered in Melbourne, is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. It also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. The company is now majority-owned by Primary Healthcare Ltd, a listed healthcare company which operates medical centres, pathology centres and provides health technology. VICTORIAN BOAT: To Declare Priority Dividend on March 26 -------------------------------------------------------- Victorian Boat Co. Pty. Ltd., which is in liquidation, will declare first and final dividend on March 26, 2008. Creditors are required to file their proofs of debt by March 6, 2008, to be included in the company's dividend distribution. The company's liquidator is: Peter Vince c/o Ferrier Hodgson 600 Bourke Street, Level 29 Melbourne, Victoria 3000 Australia About Victorian Boat Victorian Boat Co. Pty. Ltd. operates manufacturing industries. The company is located at Ringwood, in Victoria, Australia. ZINIFEX: Enters Into AU$12-Bil. Merger Agreement with Oxiana ------------------------------------------------------------ Oxiana Ltd. and Zinifex Limited agreed to merge to establish AU$12 billion-mining company, making it the world's second- largest zinc producer and Australia's third-largest diversified miner, The Financial Times reports. After 12 months of intense negotiations, the parties have reached a deal where gold and copper miner Oxiana will buy zinc and lead producer Zinifex for AU$6.2 billion (US$5.8 billion), the FT relates. Under the deal, which requires approval from 75% of Zinifex shareholders, Oxiana will offer 3.2 of its shares for each Zinifex share and the new company will be equally owned by Oxiana and Zinifex shareholders. "The merged entity would be very well positioned to benefit from the strength of demand for commodities we see stretching out for many years," Zinifex Chief Executive Andrew Michelmore told the FT. The two companies have largely complementary asset portfolios and development pipelines. If the transaction is approved, Mr. Michelmore will head up the merged company, the same report says. Owen Hegarty, Oxiana chief executive, will stay on as a director and run the integration. The FT adds that Zinifex directors have unanimously recommended shareholders vote in favor of the proposed merger, in the absence of a superior offer, and said they plan to vote all of the shares they own in favor of the scheme. However, some fund mangers are concerned the deal is vision- rather than value-driven, noting that while Oxiana market capitalization is higher, Zinifex has a much stronger balance sheet and at AU$1.3 billion its net profit is almost double Oxiana's, the FT relates. But Mr. Michelmore assured Financial Times that the size of the merged group and its growth prospects would ensure long-tem value for shareholders. On the other hand, Mr. Hegarty said the merged group could take on larger projects with greater geographical diversity. The new company will have combined earnings before interest, tax, depreciation and amortisation of AU$1.7 billion and a net cash balance of AU$1.9 billion, providing a strong platform for both organic growth and acquisitions, the FT says. Zinifex's recommended AU$852 million takeover offer for Australian nickel group Allegiance Mining will not be affected by the Oxiana proposal, the company told the FT. About Oxiana Ltd. Oxiana Ltd. is a mining and exploration company. During the year ended Dec. 31, 2007, the principal activities of Oxiana consisted of production of gold and copper cathode at Sepon in Laos; production of zinc, copper and precious metal concentrates at Golden Grove in Western Australia; feasibility evaluation of the Martabe gold project in Indonesia; exploration for further resources at Sepon, Golden Grove and Prominent Hill; exploration activities in other parts of Laos, Indonesia, China, Thailand, Cambodia, Vietnam and Australia, and evaluation of other exploration and business development opportunities. It has six business segments: Sepon Gold operations, Sepon Copper operations, Oxiana Golden Grove operations, Oxiana Prominent Hill, Martabe and other, which includes revenues and expenses associated with general corporate office activities. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating, following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). Fitch said the outlook is stable ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ CHINA EASTERN: Regional Airline With AVIC I Approved ---------------------------------------------------- China Aviation Industry Corp. I, known as AVIC I, and China Eastern Airlines Corp. have won approval to set up a new regional carrier named Xingfu Airline, Irene Shen at Bloomberg News reports. China Aviation will own a controlling 60% stake of the regional venture while China Eastern will hold the rest, Bloomberg says, citing China's General Administration of Civil Aviation. Xingfu Airline will use AVIC I's 60-seat MA60 and the ARJ21, which accommodates 70 to 110 passengers. According to the report, the joint venture between the two state-owned companies underlines the Chinese Government's efforts to promote Chinese aircraft. AVIC I's planes will compete with those made by Brazil's Empresa Brasileira de Aeronautica SA and Canada's Bombardier, Inc., as China's fleet is forecast to quadruple to 4,000 planes by 2020. "The right to make major decisions like aircraft purchasing is important for AVIC I as a newcomer to the airline industry," said Li Lei, a Beijing-based analyst at China Securities Co. "The regional carrier can also help complete China Eastern's existing network." China Eastern, which flies to all of China's major cities, may be able to start flights to smaller cities in the country with the new joint venture, Mr. Lei told Bloomberg. Xingfu Airline will have a registered capital of CNY1 billion (US$141 million), Bloomberg noted. AVIC I will invest CNY600 million yuan in cash. 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. HANS ENERGY: Inks Oil Tanker Terminal Project with Taishan City --------------------------------------------------------------- Hans Energy Company Limited has signed a non-binding framework agreement with the municipal government of Taishan, a city 100 km. west of Macau, China, to build a terminal on Shangchuan Island with seven berths capable of handling oil tankers of 30,000 to 300,000 deadweight-tons, China Business News reports. Mainlander David An, Hans Energy's chairman, plans to build what he claims to be the Mainland's largest crude oil receiving terminal and southern China's largest oil storage facilities, reported the South China Morning Post. However, it may be difficult for Hans Energy to push the project forward because its targeted customers and financial backers, like the China Petroleum and Chemical Corp. (Sinopec), have already planned their own storage facilities, Business News says. While not disclosing the estimated investment cost of the latest project, Mr. An told Business News that the average land cost in the Pearl River Delta was RMB150,000 to RMB200,000 per mu, and that the project would need 4,000 mu of land. Estimates put the land and storage tanks costs at RMB2.7 billion. Such an investment may be a tall order for Hans Energy, which had only HK$212.81 million cash at the end of last year, Business News opines. Hans Energy Company Limited, formerly known as Wisdom Venture Holdings Limited, is involved in the transshipment and storage facilities and port income. Other activities include provision of administrative services and investment holding. Operations are carried out in Hong Kong and China. As reported by the Troubled Company Reporter-Asia Pacific on Aug. 14, 2007, Hans Energy has total assets of US$85.00 million and stockholders' equity deficit of US$0.49 million. JIANGXI COPPER: Seeks To Buy 4.2% Stake in Nanchang Bank -------------------------------------------------------- Jiangxi Copper Co. will buy a 4.2% stake in Nanchang City Commercial Bank for CNY280 million in cash, China Daily reports. It will buy 100 million new shares to be issued by Nanchang Bank at CNY2.8 apiece, Jiangxi Copper told the Shanghai Stock Exchange, as cited by China Daily. The equity purchase still needs regulatory approval and would make Jiangxi Copper the bank's second largest single shareholder. "Although the stake is small, it demonstrates that Jiangxi Copper is flush with cash due to rising prices and strong demand for copper products in the past year," Liu Chao, an analyst at Xiangcai Qinian Futures Co. in Shanghai, told China Daily. "Investment by listed companies like Jiangxi Copper will help inject more capital to finance commercial banks' further development," Liu Chao of Xiangcai Qinian Futures related to China Daily. Experts also told China Daily that the mining company's capital injection into a commercial bank in the same province will also benefit the provincial economy. Nanchang is the capital city of Jiangxi province. Jiangxi Copper Company Limited -- http://www.jxcc.com/-- is an integrated producer of copper in the People's Republic of China. The company's operations consist of copper mining, milling, smelting and refining to produce copper cathode and other related products, including pyrite concentrates, sulphuric acid and electrolytic gold and silver. It also provides smelting and refining services pursuant to tolling arrangements for customers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. PETROLEOS DE VENEZUELA: Court May Rule on Asset Freeze This Week ---------------------------------------------------------------- John Fordham, Petroleos de Venezuela's legal representative and head of commercial litigation at law firm Stephenson Harwood, told Tom Bergin at Reuters that a U.K. court may rule on the freeze order on the company's assets this week. As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2008, Petroleos de Venezuela asked the London High Court to revoke an injunction freezing the company's US$12- billion assets. Petroleos de Venezuela is barred from taking or disposing of up to US$12 billion in petroleum assets worldwide after courts in Britain and the U.S. ordered freezing of those assets. Reuters relates that the asset-freeze order against Petroleos de Venezuela was made so that Exxon Mobil Corp. would be able to extract compensation should it win arbitration it has sought over the fields. Petroleos de Venezuela has appealed the asset-freeze order. A hearing was scheduled to start on Thursday, Reuters says, citing Mr. Fordham. Reuters notes that Petroleos de Venezuela is arguing that the U.K. court didn't have the authority to award the injunction because the case involved U.S. and Venezuelan firms. "The arbitration would be held in New York, under the auspices of a unit of the World Bank," Reuters says. Mr. Fordham told Reuters that a U.K. judge could rule as early as Friday but was more likely to do so next week. "He has allocated two and a half days to hear the case, so if it runs its course, it will be Thursday afternoon, Friday and Monday," the lawyer commented to Reuters. The judge could even delay his ruling for another week, Reuters says, citing Mr. Fordham. "It is an important case for our freezing order jurisdiction so he might think he needs to give a considered judgment," Mr. Fordham told Reuters. Venezuelan Oil Vice Minister Bernard Mommer told Dow Jones Newswires that the country will find a way to defeat Exxon Mobil and that the ongoing dispute is "not a big deal for either party". "We will not leave London cowing from a loss, because if Exxon wins it would set a bad legal precedent," Mr. Mommer told Venezuelan news daily El Universal. Mr. Mommer told Dow Jones that Exxon Mobil first rejected an offer as a minority partner in Venezuelan operations because the new contracts gave no allowance for arbitration overseas. "I want to reiterate that the disagreement with Exxon wasn't economic, it was because Exxon didn't want to accept that there was no arbitration clause included in the new companies," Mr. Mommer explained to Dow Jones. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. The company also has offices in London and Holland. RUHR OEL GMBH, a German refinery in 50% run by PDVSA. The company has a one million-barrel refining capacity per day, of which around 250,000 belong to the Venezuelan corporation. The company also provides the German market with 20% of its by- products and petrochemicals needs. PDVSA runs 50 % of this company in association with Veba Oel, which has four refineries, that makes it the biggest company refining oil products in Germany. It has a one million-barrel refining capacity per day, of which around 250,000 belong to the Venezuelan corporation. Besides this, RUHR OEL GMBH provides the German market with 20% of its by-products and petrochemicals needs. PDVSA and the Finnish Neste Corporation are partners, with a share 50% each of the corporation AB NYNAS PETROLEUM, which runs refineries in Sweden, Belgium and The United Kingdom. * * * To date, Petroleos de Venezuela SA carries Fitch's BB- long term issuer default rating and local currency long term issuer default rating. Fitch said the ratings outlook is negative. SHENZHEN SEG: To Implement Share Merger Reform ---------------------------------------------- Shenzhen Seg Samsung Glass Co., Ltd., plans to implement the share merger reform, in which the company will be using additional paid-in capital to fund an issue of new shares to shareholders, China Business News reports. Business News relates that the tradable shares holders will be given 3.1605 shares for every 10 shares held. Two non-tradable shares holders, which are affiliates of the Samsung Corning Investment Co. Ltd. and Samsung Corning (Malaysia) SDN BHD, will be given 0.1758 shares for every 10 shares held. The reform was delayed due to a difficulty encountered in determining the price, Business News says. Shenzhen Seg can implement this reform plan after domestic and foreign shareholders finally decided on the share price. The company will adopt the standard locking period stated by the regulator for its share merger reform. The report notes that Samsung Corning Co. Ltd. is the largest and also the controlling shareholder of Shenzhen Seg with a 35.46% stake. Headquartered in Shenzhen, China, Shenzhen Seg Samsung Glass Co., Ltd. -- http://www.ssg.com.cn/-- is principally engaged in the manufacture and sale of colored glass substrates for color televisions and computer display panels. The company offers its products under two categories: color picture tube (CPT) glass substrates, including 20-inch, 21-inch and 25-inch models, and cathode ray display terminal (CDT) glass substrates, including 14-inch, 15-inch and 17-inch models. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on October 28, 2005. ========= I N D I A ========= FIAT SPA: India Plant to Start Linea Line Production in August -------------------------------------------------------------- Fiat India Chief Executive Officer Rajeev Kapoor said that the company's Linea family car will start production in August 2008 at its joint venture plant in Ranjangaon, India, Thomson Financial News reports. The plant is a 50:50 joint venture between Fiat and Tata Motors Ltd's and has a 100,000-car and 200,000-engine and transmission parts manufacturing capacity. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * In November 2007, Moody's Investors Service changed the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate Family Rating to positive from stable and affirmed its Ba3 long-term senior unsecured ratings as well as the short-term non-Prime rating. In October 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The company also carries B short- term rating. S&P said the outlook is stable. GENERAL MOTORS: Idles More Plants as Supplier's UAW Talks Resume ---------------------------------------------------------------- Two more General Motors Corp. plants are likely to shutter this week as supplier American Axle & Manufacturing Inc. continues to negotiate with United Auto Workers union workers on strike, Tom Krisher of The Associated Press reports. As reported in the Troubled Company Reporter on Feb. 29, 2008, GM's production of Chevrolet Silverado and GMC Sierra pickups at the Pontiac Assembly Center, which has 2,500 hourly and salaried employees, in Michigan, ceased after the first shift Thursday. On Friday, GM production factories in Flint, Michigan, Fort Wayne, Indiana, and Oshawa, Ontario, were idled after the second shift, displacing a total of 9,503 hourly and salaried workers. A list of impacted facilities is available at: http://bankrupt.com/misc/GMImpactedPlants_5pm_feb29.pdf As previously reported, UAW president Ron Gettelfinger and Vice President James Settles disclosed that members at American Axle began an unfair labor practices strike at 12:01 a.m. on Feb. 26, 2008, following expiration of a four-year master labor agreement. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. IFCI LTD: 53% of Employees Avail of Voluntary Retirement Scheme --------------------------------------------------------------- More than half of IFCI Limited's workforce chose to avail of the Voluntary Retirement Scheme offered by the company to help it restructure and attract another partner, the Press Trust of India reports. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 13, IFCI offered the scheme to its employees to cut costs and sustain business in the medium term. "There are about 470 people in IFCI and our current business size requires not more than 150 people," the Business Standard quoted IFCI Chief Executive Officer Atul Kumar Rai as saying. The CEO asserted that the VRS would give space to the company to redesign the business model. PTI, citing unnamed sources, said that about 250 of the 470 employees opted for the scheme, which will help IFCI save INR27 crore. The scheme, which offer closed on Feb. 29, offered relief of up to INR15 lakh over and above the normal retirement benefits. According to PTI's sources, the rightsizing would cost IFCI about INR45 crore, but it would not negatively impact the number of executives in specialized disciplines. As previously reported in the Troubled Company Reporter-Asia Pacific, IFCI called off plans to induct a strategic investor after its board of directors rejected the 26%-stake-sale proposal submitted by the consortium of Sterlite Industries and Morgan Stanley Co, saying that the conditional offer is unacceptable. IFCI's net profit soared in the three months ended Dec. 31, 2007 -- more than doubled to INR3.19 billion from the INR1.29-billion profit booked in the corresponding quarter in 2006. The CEO believes the company will go back into losses unless they reduce wage costs. We will be better off if we have right kind of people," Mr. Rai told the Business Standard. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. IFCI LTD: Gov't Budget Provides INR433 Crore for Restructuring -------------------------------------------------------------- Finance Minister Palaniappan Chidambaram has made a provision of INR433 crore in the Government of India's 2008-09 budget for restructuring old liabilities of IFCI Ltd.'s old liabilities, media reports say. According to Reuters, GoI's previous budget (2007/08) made an allocation of INR1,300 crore and later revised it to INR100 crore. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. MYLAN INC: Books US$1.27-Bil. Loss in Three Mos. Ended Dec. 31 -------------------------------------------------------------- Mylan Inc. reported its financial results for the three and nine months ended Dec. 31, 2007, provided an update on its synergy targets for the Merck Generics acquisition, and disclosed a number of strategic and operational initiatives. Financial Highlights -- Adjusted diluted cash EPS of US$0.11 and US$0.92 for the three and nine months ended Dec. 31, 2007, respectively, both of which exclude the impact of purchase accounting items related to the Matrix acquisition completed in January 2007 and the acquisition of Merck Generics completed in October 2007, as well as other non-recurring items as discussed in detail below; -- Total revenues of US$1.16 billion for the three months ended Dec. 31, 2007, an increase of US$753.6 million over the same prior year period; -- Total revenues of US$2.18 billion for the nine months ended Dec. 31, 2007, an increase of US$1.05 billion over the same prior year period; -- On a GAAP basis, a loss per diluted share of US$5.04 and US$4.49 for the three and nine months ended Dec. 31, 2007, respectively, as a result of purchase accounting adjustments including the write-off of US$1.27 billion of acquired in-process research and development, which was recorded without tax effect. Mylan's Vice Chairperson and Chief Executive Officer, Robert J. Coury commented: "The strength of this first quarter as a consolidated company showcases Merck Generics' contribution to our growth. The strong performance of Merck Generics bolstered the solid nine-month results of the legacy Mylan operations. Further, these strong results were achieved while tremendous progress was made, both on the integration and on achieving our targeted synergies. Looking forward, we will continue to execute on our strategies and leverage the additional opportunities and benefits that we see from the global platform created by the combination of Mylan, Merck Generics and Matrix." Synergy Update Mylan confirmed that it expects to realize its stated US$100 million synergy target for the Merck Generics acquisition for 2008 and it is on track to meet or exceed the targeted recurring annual synergies of US$300 million by the end of 2010, as outlined by the company during its investor day on Oct. 3, 2007. To achieve these results, the company announced that it has initiated the necessary actions within research and development (R&D) and manufacturing. The actions are expected to yield 75% of the overall US$300 million annual synergy target by the end of 2010. Chief Operating Officer and Chief Integration Officer, Heather Bresch said: "We are well ahead of our implementation schedule. Our efforts to date extend across all areas of the new combined company, including strengthening our leadership and organizational infrastructure, ensuring effective separation from Merck KGaA, building Mylan's brand equity globally and, most importantly, realizing value from the New Mylan by delivering on our synergy targets." Specific steps being taken to rationalize and optimize our global manufacturing and research and development platforms include: -- Discontinue manufacturing and R&D at Genpharm in Canada. The Commercial Operations, Packaging Unit, Quality Control Laboratory, Biopharm Department, Supply Chain Functions, and Regulatory Affairs at Genpharm will continue operation. -- Discontinue manufacturing of non-high potency products at Mylan's Puerto Rico location. High potency manufacturing operations will remain and be expanded in Puerto Rico, creating a "center of excellence" for high potency manufacturing at this facility. -- Discontinue R&D activities at Gerard Laboratories in Ireland. -- Discontinue R&D activities in Spain. -- Scale down R&D activities at Generics UK. Executive Vice President and Head of Global Technical Operations, Rajiv Malik commented: "The actions announced today will allow us to leverage the scale of our expanded global assets and optimize our operations. We expect that our new streamlined, consolidated and integrated R&D and manufacturing platforms will not only deliver the promised synergies, but also enable us to even more effectively execute on the growth strategy for our global business." Strategic Initiatives Mylan reported a number of key initiatives to enhance its strategic focus, specifically: -- Mylan has reached a definitive agreement with Forest Laboratories whereby Mylan will sell its rights to Nebivolol, a FDA approved product for the treatment of hypertension which is marketed by Forest under the brand name Bystolic(TM). Mylan will receive a one-time cash payment of US$370 million and will retain royalties for the product through 2010. -- Mylan will pursue strategic alternatives for Dey, including the potential sale of the business, Mylan's specialty pharmaceutical business acquired as part of the Merck Generics transaction. Dey is a leader in the nebulized respiratory and severe allergy markets with fully integrated capabilities in R&D, manufacturing and marketing and sales. -- The Board of Directors of Mylan's majority owned subsidiary, Matrix Laboratories, has authorized its management to explore strategic alternatives for Docpharma, its commercial operations in the Benelux region (Belgium, the Netherlands and Luxemburg), including a potential divestiture of the asset. -- Mylan has exercised its option with respect to Merck Generics' operations in Central and Eastern Europe, including such high-growth markets as Poland, Slovakia, Hungary, the Czech Republic and Slovenia. Mr. Coury added: "After conducting a further review of our global portfolio of businesses following the completion of the Merck Generics acquisition, we have decided to pursue several initiatives that will allow us to leverage the power of our global generics platform, focus on the successful execution of our integration, and meet our commitments to de-levering our balance sheet." "More specifically, during our recent post-closing review of Dey, it became clear that the launch of Perforomist(TM), which occurred concurrently with the closing of the Merck Generics acquisition, requires a redefined strategic approach. While Dey is already in the process of addressing this issue, the delay will result in slower growth and a longer timeframe to reach peak sales than was originally anticipated from this product. While we continue to believe that the Dey business, as a whole, represents a very exciting opportunity in specialty pharmaceuticals, we believe that our resources would be better allocated toward our core generics business. As a result, we have decided to consider a sale of Dey," Mr. Coury continued. The slower than expected launch of Perforomist(TM) is expected to have approximately a US$0.20 to US$0.25 negative impact on Mylan's diluted earnings per share in 2008, 2009 and 2010. Although the company is not in a position to update or revise guidance at this time, it will do so in conjunction with its 2008 first quarter earnings announcement. Mr. Coury said: "Notwithstanding the timing issue associated with the slower uptake of Perforomist(TM), the results of our initial quarter with Merck Generics continues to give us great confidence in the growth potential of our core generics business around the world. We continue to see strong performance across our global generics business and we expect that the further integration of our businesses will result in even greater potential opportunities for growth going forward." Detailed Financial Summary Mylan previously had two reportable segments, the "Mylan Segment" and the "Matrix Segment." With the acquisition of Merck Generics, Mylan now has three reportable segments: Generics Segment, Specialty Segment (or "Specialty") and the Matrix Segment. The former Mylan Segment is included within the Generics Segment. Additionally, certain general and administrative and research and development expenses not allocated to the segments, as well as litigation settlements and non-operating income and expenses, are reported in Corporate/Other. Total revenues for the quarter ended Dec. 31, 2007, increased by 188% or US$753.6 million to US$1.16 billion from US$401.8 million in the same prior year period. Approximately US$793.5 million represents amounts contributed through acquisitions. Generics Segment revenues are derived from sales in Europe, the Middle East & Africa (EMEA), North America and Asia Pacific. Revenues from North America were US$416.3 million for the three months ended Dec. 31, 2007, compared to US$401.8 million for the same prior year period, representing an increase of US$14.5 million or 4%. Revenues of approximately US$54.4 million were realized in North America as a result of the acquisition of Merck Generics. Revenues from EMEA and Asia Pacific, as well as revenues from the Specialty Segment, were all the result of the acquisition of Merck Generics. For EMEA, revenues for the quarter ended Dec. 31, 2007, were US$373.1 million, the majority of which are derived from the three largest markets; France, the United Kingdom and Germany. Revenues from Asia Pacific were US$170.9 million for the three months ended Dec. 31, 2007, and were derived from Mylan's newly acquired operations in Australia, Japan and New Zealand. For the Specialty Segment, total revenues for the three months ended Dec. 31, 2007, were US$102.1 million. The Specialty Segment consists of the Dey business that focuses on the development, manufacturing and marketing of specialty pharmaceuticals in the respiratory and severe allergy markets. The Matrix Segment reported total revenues of US$107.1 million, of which US$92.9 million represents sales to third parties. Gross profit for the three months ended Dec. 31, 2007, was US$356.1 million and gross margins were 30.8%. The decrease in gross margins is due primarily to the effects of purchase accounting items recorded during the quarter of approximately US$117.7 million, which consisted primarily of amortization related to purchased intangible assets and the amortization of the inventory step-up associated with the acquisition of Merck Generics. Excluding such items, gross margins were 41% compared to 55.9% for the three months ended Dec. 31, 2006. The company reported a loss from operations of US$1.27 billion for the three months ended Dec. 31, 2007. This loss from operations for the quarter included a US$1.27 billion one-time charge to write-off acquired in-process research and development, which is recorded without a tax effect, and excludes the US$117.7 million of purchase accounting items discussed above. Excluding these amounts, earnings from operations would have been US$118.5 million, a decrease of US$65.1 million from the prior year. Research and development (R&D) expense for the three months ended Dec. 31, 2007 was US$80.8 million compared to US$22.9 million in the same prior year period. R&D expense includes approximately US$53.9 million related to newly acquired entities, all of which was incremental to the comparable prior year period. The acquisition of Merck Generics and Matrix added US$170 million of incremental selling, general and administrative (SG&A) expense to the current period. Excluding this amount, SG&A expense increased by US$53.1 million or 101% to US$105.7 million compared to US$52.6 million in the comparable prior year period. The majority of this increase was realized by Corporate and Other and is the result of costs, such as professional and consulting fees, associated with the integration of Merck Generics, as well as higher payroll and related costs principally attributable to the build-up of additional corporate infrastructure as a direct result of the Merck Generics acquisition. Interest expense for the current quarter totaled US$133.4 million compared to US$10.5 million for the three months ended Dec. 31, 2006. The increase is due to the additional debt incurred to finance the acquisition of Merck Generics. Other (expense) income, net was expense of US$43.9 million for the three months ended Dec. 31, 2007 compared to income of US$32.4 million in the same prior year period. The most significant item in the current period was US$57.2 million related to the early repayment of certain debt and expensing certain financing fees, partially offset by other income attributable to interest and dividends. For the nine months ended Dec. 31, 2007 total revenues were US$2.18 billion compared to US$1.12 billion during the comparable nine-month period of the prior year. Approximately US$964.8 million of revenues for the nine-month period were contributed through acquisitions. For the nine-months ended Dec. 31, 2007, the Matrix Segment reported total revenues of US$293.8 million, of which US$264.2 million represented third party sales. As Mylan began consolidating the results of Matrix beginning on Jan. 8, 2007, all of this revenue is incremental to the results of the prior year. Gross profit for the nine months ended Dec. 31, 2007, was US$874.4 million and gross margins were 40.1%. The decrease in gross margins is due primarily to the effects of purchase accounting items of approximately US$148.9 million. Excluding such items, gross margins were 47% compared to 54.1% for the nine months ended Dec. 31, 2006. The loss from operations for the nine months ended Dec. 31, 2007 was US$988.3 million as a result of the purchase accounting items discussed above and the one-time charge to write-off acquired in-process research and development. Excluding these amounts, earnings from operations would have been US$429.7 million for the nine-month period, a decrease of US$5.7 million from the prior year. R&D expense for the nine months ended Dec. 31, 2007, excluding that incurred by newly acquired entities, was US$74.9 million compared to US$66.8 million in the same prior year period, an increase of US$8.1 million or 12%. SG&A expense, also excluding amounts contributed by new entities, increased by US$95.1 million or 62% to US$247.9 million compared to US$152.8 million in the comparable prior year period. The majority of this increase was realized by Corporate and Other, and is the result of costs, such as professional and consulting fees, associated with the integration of Merck Generics, as well as higher payroll and related costs principally attributable to the build-up of additional corporate infrastructure as a direct result of the Merck Generics acquisition. Interest expense for the nine months ended Dec. 31, 2007, totaled US$179.4 million compared to US$31.3 million for the nine months ended Dec. 31, 2006. The increase is due to the additional debt incurred to finance the acquisition of Merck Generics. Other income (expense), net was income of US$86.6 million for the nine months ended Dec. 31, 2007, compared to income of US$39.8 million in the same prior year period. The most significant items in the current period are net foreign exchange gains consisting mainly of US$85 million on a contract related to the acquisition of Merck Generics and US$57.2 million of expense related to the early repayment of certain debt and expensing certain financing fees as discussed previously, with the remainder of the other income attributable to interest and dividends. About Mylan Inc. Mylan Inc., formerly known as Mylan Laboratories Inc. (NYSE: MYL), -- http://www.mylan.com/-- is a global pharmaceutical company with market leading positions in generic pharmaceuticals, transdermal technology and unit dose packaged products. Mylan operates through three principal subsidiaries: Mylan Pharmaceuticals, a world leader in generic pharmaceuticals; Mylan Technologies, the largest producer of generic and branded transdermal patches for the U.S. market; and UDL Laboratories, the top U.S.-supplier of unit dose pharmaceuticals. Mylan also owns a controlling interest in Matrix Laboratories Limited of India. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Moody's Investors Service assigned B1 ratings to the new senior secured credit facilities of Mylan Inc. In addition, Moody's lowered Mylan's Corporate Family Rating to B1 from Ba1, concluding a rating review for possible downgrade initiated on May 14, 2007 and lowered the speculative grade liquidity rating to SGL-2 from SGL-1. MYLAN INC: J. Dore' Joins as Matrix Labs CEO & Managing Director ---------------------------------------------------------------- Mylan Inc. has appointed Jagdish Viswanath Dore' as Chief Executive Officer and Managing Director of Matrix Laboratories Limited. Mr. Dore' will assume the responsibilities of Rajiv Malik who became Executive Vice President and Head of Global Technical Operations for Mylan in October 2007 and has been serving as interim CEO for Matrix, a majority-owned subsidiary of Mylan. Mr. Malik will relocate to the United States in connection with his employment by Mylan. Mr. Dore' joins Matrix after a distinguished 29 year career with Sandoz most recently as Managing Director and India Country Head. In this role, Mr. Dore' was responsible for all of Sandoz's operations in India including global development and manufacturing; local and export sales; day-to-day operations; and technical operations in the Asia Pacific region. He was previously responsible for business operations in the Asia Pacific cluster and involved in the startup of Novartis Enterprises Private Limited (now Sandoz), Novartis Consumer Health India Private Limited and Master Builders Technology India Private Limited, India. Matrix Chairperson and Mylan Vice Chairperson and Chief Executive Officer, Robert J. Coury said: "Jagdish's impressive industry reputation is well known, and I believe he will be a huge asset to Matrix as it continues to expand its integral role in support of Mylan's global platform. I have every confidence that Jagdish will ensure that Matrix continues its strong growth and supports Mylan in becoming the world's leading, fully- integrated generic pharmaceuticals company." Matrix's Vice Chairperson, N. Prasad commented, "I have known Jagdish for some time, and I am absolutely delighted that he will be assuming Rajiv's role as CEO of Matrix. During his tenure at Sandoz, Jagdish was responsible for managing the company's 1,800 employees based in India along with developing a rapidly growing business across the Asia Pacific region. He brings a great deal of experience on a strategic and operational level that will be invaluable to Matrix as it strengthens its leadership in active pharmaceutical ingredients (API), further develops its finished dosage form (FDF) capabilities and continues to grow its antiretroviral (ARV) business." Mr. Dore' said: "Matrix is an established, highly respected and high-quality company in the pharmaceuticals industry both in India and world-wide. Being part of Mylan only enhances it. I look forward to leading Matrix into the next phase of its growth and working with the Mylan and Matrix senior management teams to further align our organizations and leverage the opportunities available to us in the global generics market." Mr. Dore' earned a Bachelor of Technology degree from the Indian Institute of Technology, Chennai, and a postgraduate degree in business management from the Xavier Institute in Jamshedpur specializing in marketing. About Mylan Inc. Mylan Inc., formerly known as Mylan Laboratories Inc. (NYSE: MYL), -- http://www.mylan.com/-- is a global pharmaceutical company with market leading positions in generic pharmaceuticals, transdermal technology and unit dose packaged products. Mylan operates through three principal subsidiaries: Mylan Pharmaceuticals, a world leader in generic pharmaceuticals; Mylan Technologies, the largest producer of generic and branded transdermal patches for the U.S. market; and UDL Laboratories, the top U.S.-supplier of unit dose pharmaceuticals. Mylan also owns a controlling interest in Matrix Laboratories Limited of India. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Moody's Investors Service assigned B1 ratings to the new senior secured credit facilities of Mylan Inc. In addition, Moody's lowered Mylan's Corporate Family Rating to B1 from Ba1, concluding a rating review for possible downgrade initiated on May 14, 2007 and lowered the speculative grade liquidity rating to SGL-2 from SGL-1. MYLAN INC: Forest Labs Will Assume Rights on Hypertension Drug -------------------------------------------------------------- Mylan Inc. said that Forest Laboratories Holdings, Ltd., a wholly owned subsidiary of Forest Laboratories, Inc., has amended its January 2006 agreement to commercialize, develop and distribute the novel beta blocker Bystolic(TM) (nebivolol), which is currently approved in the United States for the treatment of hypertension. The companies have agreed that Forest Laboratories will assume Mylan's commercial rights for Bystolic in the United States and Canada including, but not limited to, the elimination of Mylan's option to co-promote the product. Forest will be responsible for all future Bystolic development expenses as well as all sales and marketing expenses for the product. Under the terms of this amendment, Forest Laboratories Holdings, Ltd. (Ireland) will make a one-time cash payment of US$370 million to Mylan. Forest Labs will continue to pay the company its contractual royalties for three years, through calendar 2010. Mylan Vice Chairperson and Chief Executive Officer, Robert J. Coury commented: "We are very proud of the role Mylan has played to date in Bystolic's development and commercialization in the U.S. and believe that today's agreement with Forest is evidence of the value we have created through this product. Today's announcement is just one of the many initiatives we have announced to enhance our strategic focus and ensure we are ideally positioned to maximize the significant opportunities of our world leading generics assets." About Bystolic Bystolic (nebivolol) is a novel beta blocker that was approved by the FDA in December 2007 and is approved and marketed in more than 65 countries outside of North America. Mylan licensed the U.S. and Canadian rights to Bystolic from Janssen Pharmaceutical N.V. in 2001, and obtained Janssen's consent to sub-license Bystolic to Forest Laboratories in those territories in an initial agreement completed in January 2006. Bystolic is a cardio-selective beta-1 blocker, with vasodilation properties and a favorable tolerability profile. Upon FDA approval, Bystolic has received five years of marketing exclusivity under the Hatch Waxman legislation. In addition there is an issued U.S. pharmaceutical composition of matter patent that expires in 2021, which may offer additional exclusivity. About Mylan Inc. Mylan Inc., formerly known as Mylan Laboratories Inc. (NYSE: MYL), -- http://www.mylan.com/-- is a global pharmaceutical company with market leading positions in generic pharmaceuticals, transdermal technology and unit dose packaged products. Mylan operates through three principal subsidiaries: Mylan Pharmaceuticals, a world leader in generic pharmaceuticals; Mylan Technologies, the largest producer of generic and branded transdermal patches for the U.S. market; and UDL Laboratories, the top U.S.-supplier of unit dose pharmaceuticals. Mylan also owns a controlling interest in Matrix Laboratories Limited of India. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Moody's Investors Service assigned B1 ratings to the new senior secured credit facilities of Mylan Inc. In addition, Moody's lowered Mylan's Corporate Family Rating to B1 from Ba1, concluding a rating review for possible downgrade initiated on May 14, 2007 and lowered the speculative grade liquidity rating to SGL-2 from SGL-1. SHAW GROUP: Unit to Provide Engineering Services in India --------------------------------------------------------- The Shaw Group Inc.'s Energy & Chemicals Group has been selected by Guru Gobind Singh Refineries Limited to provide technology, engineering and procurement services for a Deep Catalytic Cracking unit at the grassroots Punjab Refinery Project in Punjab, India. The value of Shaw's contract, which has been included in the company's previously announced backlog, was not disclosed. "Shaw's ability to incorporate Deep Catalytic Cracking technology into the Punjab Refinery Project will facilitate the most cost-effective and commercially proven option for the production of polymer grade propylene from the refining process," said Lou Pucher, president of Shaw's Energy & Chemicals Group. DCC technology, originally developed by SINOPEC Research Institute of Petroleum Processing (RIPP), is a proprietary technology for the production of light olefins, particularly propylene and isobutylene, from a variety of hydrocarbon feedstock inputs. As primary building blocks for other downstream petrochemicals, light olefins produced using DCC technology are a value-added product of the refining process. Shaw is the exclusive licensed provider of DCC technology outside of China, and together with RIPP has licensed 11 DCC units around the world. The first DCC complex designed and engineered by Shaw was successfully commissioned for Thai Petrochemical Industries in 1997. GGSRL is a joint venture company between Hindustan Petroleum Corporation Limited and Mittal Energy Investment Pte Limited. About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. TATA MOTORS: Unit to Manufacture Floor Beams for Boeing 787 ----------------------------------------------------------- The Boeing Company has entered into an agreement with India- based TAL Manufacturing Solutions Ltd., a wholly owned subsidiary of Tata Motors Ltd., for manufacturing structural components for Boeing's 787 Dreamliner airplane program. Under the agreement, TAL Manufacturing Solutions will build floor beams for the 787 using new technology with advanced titanium and composite materials. These floor beams will be used on the 787 Dreamliner and provide for a best-value solution and significant weight savings. Financial terms of the agreement were not disclosed. "Boeing is proud to welcome Tata into its family of world-class aerospace suppliers and we are confident that this partnership will help Boeing and Tata leverage mutual best-value capabilities" said Carolyn Corvi, vice president and general manager of Airplane Programs for Boeing Commercial Airplanes. "This partnership between Boeing and Tata will further increase the value of the 787 to our customers, helping make it the world's leading commercial airplane" The floor beams for the 787 airplane will be produced at TAL's new facility in Nagpur, India, and then transported to Boeing partners in Japan, Italy and the United States for further assembly. "The production of Boeing's structural components by TAL indicates technical and manufacturing excellence within the Group" said Ravi Kant, chairman, TAL and managing director, Tata Motors Ltd. "We believe that this agreement has the potential to develop into a more broad-based alliance that would enable both organizations to utilize the best and most competitive resources within themselves and thereby offer greater value to customers" "TAL already has an established reputation in state-of-the-art precision engineering. The agreement with Boeing allows us to open yet another frontier" said Atam P Arya, managing director, TAL. "This would be a turning point for the Indian manufacturing industry to gain a footprint in the global aerospace business" "The Boeing-Tata partnership is strong and growing, and forms an important part of our ongoing efforts to strengthen both our presence in India and our strategic relationships with Indian industry" said Ian Thomas, president, Boeing India. "We are pursuing a host of growth and productivity initiatives in India and remain deeply committed to the success of India's aerospace sector" The Boeing 787 Dreamliner, the world's first mostly composite commercial airplane, will use 20 percent less fuel per passenger than similarly sized airplanes, produce fewer carbon emissions, and will have quieter takeoffs and landings. To date, the 787 has logged more than 855 orders from more than 55 customers worldwide since program launch in 2004, making the Dreamliner the most successful commercial airplane launch in history. Boeing's history in India reaches back more than 60 years, marked by success in working with airline customers, parts suppliers, research institutes and others to provide products and services. Boeing Commercial Airplanes' annual Current Market Outlook projects that India will need approximately $86 billion worth of aircraft over the next 20 years. In December 2003, Boeing established a wholly-owned subsidiary, Boeing International Corporation India Private Limited (BICIPL), to support the growing demands of India's aviation, aerospace and defense industries. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. TATA MOTORS: Reduction in Excise Duties Cues Firm to Cut Prices --------------------------------------------------------------- Tata Motors Ltd. will reduce the prices of its small cars and commercial vehicles (including buses, bus chassis and bus body), in view of the reduction of excise duties announced in the Union Budget, a Feb. 29 press release stated. The new applicable prices, the release said, will be announced in the next few days, after the company has studied the details of the policy changes. According to Reuters, Finance Minister Palaniappan Chidambaram proposed last Friday to cut excise duties: * on small cars, as well as buses and their chasses, to 12% from 16%; and * on hybrid cars to 14% from 24%. Tata Motors, however, is still undecided to include in the price cut the price of the Tata Nano, dubbed as the world's cheapest car at INR1 lakh (US$2,500), Indo-Asian News Services points out. It's too early to say whether this would have a bearing on the prices of the Nano, IANS quoted a company spokesperson as saying. Launched in January this year, the Nano is expected to be sold in India in October. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. * INDIA: Gov't Budget a Political & Fiscal Balance, Moody's Says ---------------------------------------------------------------- Moody's Investors Service says that India's budget for 2008-2009 tries in the run up to national elections to tenuously balance short-term political imperatives with long-term developmental needs, while also trying to be consistent with key fiscal targets set forth in the "Fiscal Responsibility and Budget Management Act." "The budget is also particularly interesting as it marks not only the last for the Congress-led United Progressive Alliance government which is serving its final year, but also because it comes in the terminal year of the FRBMA," says Aninda Mitra, a Moody's VP/Senior Analyst. FRBMA was designed to institutionally underpin an improvement in India's fiscal fundamentals. Mitra, who is part of Moody's Sovereign Risk Unit in Singapore, made his remarks in conjunction with the release of his special comment on the budget, which was announced on February 29. His report is entitled "India's 2008-09 Budget Aims to Balance Politics and Fiscal Responsibility." "Additionally, the government does not make a more explicit provision for the Sixth-Pay Commission's expected hikes of public sector salaries, nor does it establish a clearer mechanism or time-frame for transferring above the line -- much less reducing or eliminating -- sizeable off-budget liabilities (especially, oil and fertilizer subsidies)," says Mitra. "As a result, the true extent of fiscal risk is substantially higher than nominally apparent," says Mitra. "Nevertheless, despite the budget's populist tone, and its clear downside risks, Moody's overall view is that continued revenue buoyancy could still underpin a level of fiscal performance that is consistent with incremental improvements in debt ratios," says Mitra. Furthermore, the budget's emphasis on poor, less educated rural dwellers should boost agricultural incomes in a relatively in- expensive fashion, and at a politically expedient time. "The projected growth in the central government's budget expenditure looks extremely conservative, and this could very well be designed to make headroom for meeting additional expenses related to the Sixth Pay Commission's public sector wage recommendations," adds Mitra in his analysis. "However, it is too soon to conclusively assess the impact without precisely knowing the full extent of the recommendations, or incorporating state-level budget impacts, responses and provisions," he says. "But what is clear is that in the coming months, on account of less discretionary control over its employees' salaries, the central government's credit fundamentals will grow increasingly dependent on the momentum of GDP growth and the buoyancy of tax revenues," Mitra says in his report. The budget's revenue assumptions also remain strong (and actual out-turns could be stronger), with direct (individual and corporate) taxes expected to grow sizably, Mitra says. Meanwhile, the broadening of the service tax base has also rapidly begun adding to the overall tax take. Moody's views the annual budget as a key component of its assessment of the Indian government's fiscal and debt metrics which are the main drivers of its Ba2 local-currency and Baa3 foreign-currency debt ratings. Mitra's report can be found at http://www.moodys.com * INDIA: Fitch Says Fiscal Improvement in Place ----------------------------------------------- Fitch Ratings has commented, on the back of India's Union Budget announcement for 2008/2009 from the Finance Minister, that the budget suggests the country's fiscal improvement remains firmly in place. The central government forecasts its revenue deficit would decline further to 1% of GDP in the coming fiscal year, from 1.4% in the previous year. At the same time, its fiscal deficit is forecast to drop to 2.5% of GDP, from 3.1% in 2007/2008. The agency notes however that the pace of fiscal improvement is slower than expected. In fact, the government missed one of the targets set out in the Fiscal Responsibility and Budget Management Act, which targets a zero revenue deficit by 2008/2009. The government now says it needs an extra year to achieve its target. "The Indian government needs to implement additional measures if it is to meet the FRBMA target in FY09/10, and to continue catching up on the fiscal front with its rating peers," said Franklin Poon, Director in Fitch's Asia Sovereign ratings team. The government's failure to achieve the revenue deficit target is partly due to the increase in education, health and social spending. For example, education and health expenditures are expected to increase by 10%-15%, respectively. The government is also giving debt waivers to farmers, amounting to INR600 billion (1.3% of GDP). At the same time, the tax exemption limit is to be raised to INR150,000. All these could be seen as populist measures ahead of the election year in 2009. The government has not proposed any concrete measures in the budget to deal with some of the "fiscal stress points." On off- budget liabilities like food and oil bonds, while the government acknowledged the problem in the budget it stopped short of mentioning corrective accounting actions. Also, the government is not going to implement the nationwide Goods and Services Tax in the coming year, although the central sales tax will be cut further from 3% to 2%, and the CENVAT to 14% from 16%. No measures were announced for expanding the country's narrow tax base, while the possible impact of the Sixth Pay Commission was not discussed. Fitch also notes that India's fiscal indicators are still lagging behind its peer rating group (sovereigns rated 'BBB-', 'BBB' or 'BBB+'). The country has a higher general government deficit (5.5% of GDP vs the group median of 1.6% in 2007), a much heavier interest service burden (25% of revenue vs 7.2%), and a significantly higher general government debt (77% of GDP vs 29%). Despite the nominal high tax rates, India is a low-tax country and has a narrow tax base (revenues account for 21% of GDP, lower than the group median of 35%). Overall, Fitch views the budget as slightly disappointing, on the back of failure to achieve its zero revenue deficit target in the coming year (which had already been widely expected), the introduction of populist measures, as well as lack of concrete measures to tackle the fiscal stress points. Nevertheless, Fitch would like to highlight that the country's fiscal improvement is still firmly in place. At the same time, its general government balance, interest service burden, and general government revenue (which are albeit still worse than its peer rating group) are slowly converging towards the medians. In fact, India's rating strengths include its strong growth story, high domestic savings rate and very strong external public debt position. ================= I N D O N E S I A ================= CA INC: Will USPay $0.04 Per Share Dividend on March 28 ------------------------------------------------------- CA Inc.'s Board of Directors has declared a regular, quarterly cash dividend of US$0.04 per share. The dividend will be paid on March 28, 2008, to stockholders of record at the close of business on March 14, 2008. Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * In December 2007, Fitch Ratings affirmed these ratings of CA Inc.: Issuer Default Rating at 'BB+'; Senior unsecured revolving credit facility at 'BB+'; and Senior unsecured debt at 'BB+'. Additionally, Fitch revised the Rating Outlook on CA Inc. to Stable from Negative. Fitch's actions affect approximately US$2.8 billion of total debt, including the company's US$1.0 billion revolving credit facility. GARUDA INDONESIA: Plans to Provide Airline Service to Kendari ------------------------------------------------------------- Garuda Indonesia plans to provide airline services from Makassar to Kendari at least once a day in June at the latest, Antara News reports. Andi Ichsan Tahir, Garuda marketing executive, told the news agency that the airline has conducted a survey to which Kendari Monginsidi Airport passed the requirements for wide-bodied planes to land. Southeast Sulawesi is home to the world's most beautiful coral coast has also encouraged Garuda to