T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, March 5, 2008, Vol. 9, Issue 46 Headlines A U S T R A L I A BUILD CAPITAL: Liquidator to Give Wind-Up Report Today FOREST PRODUCTS: Members to Receive Wind-Up Report on March 26 GANDA I. T.: Liquidator to Present Wind-Up Report on March 12 GM ACCEPTANCE (AUSTRALIA): Fitch Cuts Long-term IDR to BB GOLDSMITH FAMILY: Joint Meeting Slated for March 12 NORPAK PTY: Placed Under Voluntary Liquidation RAFTONY PTY: Members and Creditors to Meet on March 13 RG GROUP: Liquidator to Give Wind-Up Report on March 20 SCOLAROS CONCRETE: Members & Creditors Meeting Set for March 20 SILVER CEDAR: Final Meeting Slated for March 20 TROMBONIST LIMITED: Members and Creditors to Meet on March 14 WATERWISE DISTRIBUTORS: Members & Creditors Meeting on March 5 WLOSSAK PTY: Placed Under Voluntary Liquidation ZINIFEX: Fitch Puts BB+ IDR on Watch Positive Over Oxiana Merger C H I N A & H O N G K O N G & T A I W A N ASIAN STOCKBROKERS: Creditors' Proofs of Debt Due on March 28 ASIA VIEW: Creditors Meeting Fixed for April 7 ASSCALADE COMMUNICATIONS: Files for Creditor Protection A.S. WATSON: Commences Liquidation Proceedings BIO-RAD LABS: Earns US$12.3MM for 2007 4th Quarter Ended Dec. 31 BOMBARDIER INC: S&P Keeps Positive Watch on BB Rating CHINA MINSHENG: Gets Approval To Buy UCBH Stake for US$95 Mil. CHINA MINSHENG: Posts CNY6.34 Billion Net Profit in 2007 CHINA MINSHENG: To Sell 3.26% Stake in Haitong Securities DARRACOTT LIMITED: Commences Liquidation Proceedings EPIPHANY CAPITAL: Commences Liquidation Proceedings FUTEC PACKAGING: Commences Liquidation Proceedings GIAN ANDREA: Commences Liquidation Proceedings MICHINOKU FINANCE: Commences Liquidation Proceedings NIHON (HONG KONG): Liquidators Quit Posts NINGBO BIRD: To Sell 50% Stake in Sagem Joint Venture RIL SECURITIES: Commences Liquidation Proceedings SEFAIR BROKERS: Liquidators Quit Post SERONO HONG KONG: Creditors' Proofs of Debt Due on March 31 TAILOR PLUS: Commences Liquidation Proceedings TOYOTA TSUSHO: Liquidators Quit Post I N D I A DRESSER-RAND: UBS Keeps Neutral Rating on Firm's Shares FIAT SPA: Government Approves Equal Partnership with Tata Motors NOVELL INC: Earns US$16.8 Million in Fiscal First Quarter 2008 TATA MOTORS: Likely to Close Sale Deal with Ford in 2nd Qtr. * INDIA: Moody's Says Structured Finance Market Growth Robust I N D O N E S I A ARPENI PRATAMA: To Cut Bond Issue to IDR600 Billion ARPENI PRATAMA: To Buy Six Bulk Carriers for US$88 Million BANK CENTRAL ASIA: Fitch Ups Long-Term IDR to BB BANK INTERNASIONAL: Chinese Banks to Buy Temasek's 55.97% Stake BANK MANDIRI: Fitch Upgrades Long-Term IDR to BB BAKRIE SUMATERA: Acquires 37.5% of Menthobi Makmu for IDR500,000 BAKRIE SUMATERA: To Get US$224 Million in Loans INDAH KIAT: Expects 2008 Revenue to Grow by 10% to 20% INDAH KIAT: Federal New-York Court Rules Against the Company J A P A N ALITALIA SPA: Hikes Net Debt to EUR1.28 Billion in January 2008 BANK OF IKEDA: Fitch Assign BB+ Rating on Subordinated Notes GMAC LLC: JCR Pares Foreign Currency Long-Term Rating to BB- HERBALIFE LTD: Canaccord Adams Reaffirms Buy Rating on Firm JAPAN AIRLINES: Announces Changes in Board Membership JAL: Expands Code Share Agreements with European Airline Cos. K O R E A KOREAN EXPRESS: Kumho-Asiana Inks KRW4.1-Tril. Deal to Buy Stake M A L A Y S I A ARK RESOURCES: SC OK's Variation to Principal Terms of RCSLS ARK RESOURCES: Shareholders Okay All Resolutions During Meeting LITYAN HOLDINGS: Default Totals MYR27.53 Million as of Feb. 29 LITYAN HOLDINGS: Creates Risk Management Committee LITYAN HOLDINGS: Dec. 31 Balance Sheet Upside-Down by MYR87 Mil. MANGIUM INDUSTRIES: Bursa Grants Until May 26 to Submit Plan MANGIUM INDUSTRIES: Posts MYR3MM Net Loss. in Qtr. Ended Dec. 31 MANGIUM INDUSTRIES: Unit Defaults on MYR17.77MM as of Jan. 31 PANGLOBAL BERHAD: Dec. 31 Balance Sheet Upside-Down by MYR566MM SOLUTIA INC: S&P Lifts Rating to B+ from D on Bankruptcy Exit TAP RESOURCES: Securities Agency Junks Appeal for Reform Plan N E W Z E A L A N D ART APARTMENTS: Fixes March 18 as Last Day to File Claims ART PROPERTIES: Taps Meltzer, Heath & Hayward as Liquidators BAY MORTGAGE: Wind-Up Petition Hearing Set for March 10 BECROFT LIMITED: Names Meltzer, Heath & Hayward as Liquidators BLACK LIGHT: Faces Blue Star's Wind-Up Petition DUCT INSTALLATION: Creditors' Proofs of Debt Due on May 18 GM ACCEPTANCE (NEW ZEALAND): Fitch Pares Long-Term IDR to BB HFC LIMITED: Requires Creditors to File Claims by May 14 HIGHCLERE DEVELOPMENTS: Subject to CIR's Wind-Up Petition MAINLY CHAIRS: Appoints Fatupaito & McCloy as Liquidators SOLIDPI HOLDINGS: Court to Hear Wind-Up Petition on March 10 TE KOROWAI: Court to Hear Wind-Up Petition on March 10 P H I L I P P I N E S DEL MONTE: Reports US$53.3 Mil. Net Income in Third Quarter 2008 FEDDERS: Wants Exclusive Plan Filing Period Moved to April 14 IPVG CORP: Clarifies Report on Plan to Buy Two Call Center Firms PHIL TELEGRAPH: Books PHP219.99-Mil. Loss in Qtr. Ended Dec. 31 PRC LLC: Obtains Final Court Okay to Use Cash Collateral PRC LLC: Gets Final Court Nod on US$30 Million DIP Financing PRC LLC: Wants to Reject Four Austin & Plantation Pacts SAN MIGUEL: Discloses Updates to Unit's Planned IPO S I N G A P O R E ARMSTRONG WORLD: Completes Strategic Review Following Evaluation ARMSTRONG WORLD: S&P Changes Outlook to Stable; Holds BB Rating LI PIN: To Pay Preferential Dividend on March 7 SCOTTISH RE: May Sell Life Reinsurance & Wealth Management Units SEA CONTAINERS: Wants to Employ Navigant as Consultants SIN TYE: Pays First and Final Dividend to Preferential Creditors T.J. CONSTRUCTION: Creditors' Proofs of Debt Due on March 7 T H A I L A N D PICNIC CORP: Clarifies World Gas Forced Share Transfer * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= BUILD CAPITAL: Liquidator to Give Wind-Up Report Today ------------------------------------------------------ Build Capital Pty. Ltd. will hold a joint meeting for its members and creditors at 10:30 a.m. today. During the meeting, the company's liquidator, John Lindholm, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: John Lindholm Ferrier Hodgson 600 Bourke Street, Level 29 Melbourne, Victoria 3000 Australia Telephone:(03) 9600 4922 Facsimile:(03) 9642 5887 About Build Capital Build Capital Pty. Ltd. is a distributor of durable goods. The company is located at Carnegie, in Victoria, Australia. FOREST PRODUCTS: Members to Receive Wind-Up Report on March 26 -------------------------------------------------------------- Simon A. Wallace-Smith and Timothy B. Norman, Forest Products Australia Pty. Ltd.'s appointed estate liquidators, will meet with the company's members at 10:30 a.m. on March 26, 2008, to provide them with property disposal and winding-up reports. Forest Products will also declare final dividend on March 12, 2008. Only creditors who were able to file their proofs of debt by March 5, 2008, will be included in the company's dividend distribution. The liquidators can be reached at: Simon A. Wallace-Smith Timothy B. Norman c/o Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About Forest Products Forest Products Australia Pty. Ltd. is a distributor of wood household furnitures. The company is located at Kew, in Victoria, Australia. GANDA I. T.: Liquidator to Present Wind-Up Report on March 12 ------------------------------------------------------------- Ganda I. T. Solutions Pty. Ltd. will hold a joint meeting for its members and creditors at 9:00 a.m. on March 12, 2008. During the meeting, the company's liquidator, R. A. Sutcliffe, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: R. A. Sutcliffe Ground Floor 192-198 High Street Northcote, Victoria 3070 Australia Telephone:(03) 9482 6277 About Ganda I. T. Ganda I. T. Solutions Pty. Ltd. provides computer related services. The company is located at Glen Waverley, in Victoria, Australia. GM ACCEPTANCE (AUSTRALIA): Fitch Cuts Long-term IDR to BB --------------------------------------------------------- Fitch Ratings has downgraded and removed from Rating Watch Negative the long-term Issuer Default Rating GMAC LLC and related subsidiaries to 'BB' from 'BB+'. Fitch has also affirmed the 'B' short-term ratings. Fitch originally placed GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating Outlook is Negative. Approximately US$100 billion of unsecured debt is affected by this action. The downgrade of GMAC's LT IDR reflects in part the company's financial support for its wholly owned subsidiary ResCap, which generated considerable losses in 2007. In addition, the downgrade reflects Fitch's view that some of the operating momentum, in the form of increased business diversification from General Motors, that was expected from GMAC's separation from GM has lessened due to the broad challenges the company is facing. The Negative Outlook reflects the more challenging economic and financing environment that GMAC will face throughout 2008. Fitch believes that while the automotive finance and insurance businesses produced acceptable results in 2007, this will likely weaken in 2008 due to increased funding and credit costs, and lower new car sales. Rising funding cost primarily reflect weaker execution from securitization transactions, while rising credit costs reflect Fitch's view that both default frequency and loss severity will increase in the retail automotive finance portfolio. Fitch may downgrade ratings further if automotive credit quality were to weaken beyond historical averages for GMAC or if GMAC were to provide additional and material financial support to ResCap. Fitch has downgraded these ratings and removed them from Rating Watch Negative: GMAC LLC GMAC International Finance B.V. GMAC Bank GmbH GMAC Canada Ltd. General Motors Acceptance Corp. of Canada Ltd. General Motors Acceptance Corp. of Australia -- Long-term IDR to 'BB' from 'BB+'; -- Senior debt to 'BB' from 'BB+'. General Motors Acceptance Corp. (N.Z.) Ltd. -- Long-term IDR to 'BB' from 'BB+'. Fitch has also affirmed these ratings: GMAC LLC GMAC International Finance B.V. GMAC Bank GmbH General Motors Acceptance Corp. of Canada Ltd. General Motors Acceptance Corp. of Australia GMAC Australia (Finance) Ltd. General Motors Acceptance Corp. (U.K.) Plc General Motors Acceptance Corp. (N.Z.) Ltd. -- Short-term IDR 'B'; -- Short-term debt 'B'. GMAC Canada Ltd. -- Short-term IDR 'B'. GOLDSMITH FAMILY: Joint Meeting Slated for March 12 --------------------------------------------------- Goldsmith Family Supermarket Pty. Ltd. will hold a joint meeting for its members and creditors at 9:00 a.m. on March 12, 2008. During the meeting, the company's liquidator, Robert M. H. Cole at Robert M. H. Cole & Co. , will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Robert M. H. Cole Robert M. H. Cole & Co Chartered Accountants 6 Moorabool Street Geelong, Victoria 3220 Australia About Goldsmith Family Goldsmith Family Supermarkets Pty Ltd operates miscellaneous food stores. The company is located at Deniliquin, in New South Wales, Australia. NORPAK PTY: Placed Under Voluntary Liquidation ---------------------------------------------- Norpak Pty. Ltd. members agreed on January 21, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Glenn A. Crisp at RSM Bird Cameron to facilitate the sale of its assets. The liquidator can be reached at: Glenn A. Crisp c/o RSM Bird Cameron 525 Collins Street, Level 8 Melbourne, Victoria 3000 Australia Telephone:(03) 9286 1800 Facsimile:(03) 9286 1899 About Norpak Pty. Norpak Pty. Ltd. is a distributor of non-durable goods. The company is located at Marrickville, in New South Wales, Australia. RAFTONY PTY: Members and Creditors to Meet on March 13 ------------------------------------------------------ Raftony Pty. Ltd. will hold a final meeting for its members and creditors at 9:30 a.m. on March 13, 2008. During the meeting, the company's liquidators, Robyn Erskine and Peter Goodin, will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone:(03) 9882 6666 About Raftony Pty. Raftony Pty. Ltd., which is also trading as Raffaele's Classic Italian Restaurant, operates restaurants. The company is located at Lilydale, in Victoria, Australia. RG GROUP: Liquidator to Give Wind-Up Report on March 20 ------------------------------------------------------- RG Group Pty. Ltd. will hold a final meeting for its members and creditors at 9:30 a.m. on March 20, 2008. During the meeting, the company's liquidator, K. L. Sutherland, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne, Victoria 3004 Australia About RG Group RG Group Pty. Ltd. is a distributor of furnitures. The company is located at East Bentleigh, in Victoria, Australia. SCOLAROS CONCRETE: Members & Creditors Meeting Set for March 20 --------------------------------------------------------------- Scolaros Concrete Constructions Pty. Ltd. will hold a final meeting for its members and creditors at 10:15 a.m. on March 20, 2008. During the meeting, the company's liquidator, K. L. Sutherland, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne, Victoria 3004 Australia About Scolaros Concrete Scolaros Concrete Constructions Pty. Ltd. is involved with highway and street construction. The company is located at Werribee, in Victoria, Australia. SILVER CEDAR: Final Meeting Slated for March 20 ----------------------------------------------- Silver Cedar Pty. Ltd. will hold a final meeting for its members and creditors at 11:15 a.m. on March 20, 2008. During the meeting, the company's liquidator, K. L. Sutherland, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne, Victoria 3004 Australia About Silver Cedar Located at Balwyn North, in Victoria, Australia, Silver Cedar Pty Ltd is an investor relation company. TROMBONIST LIMITED: Members and Creditors to Meet on March 14 ------------------------------------------------------------- Trombonist Limited will hold a final meeting for its members and creditors at 11:00 a.m. on March 14, 2008. During the meeting, the company's liquidator, Anthony R. Cant at Romanis Cant, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Anthony R. Cant Romanis Cant Chartered Accountants 106 Hardware Street Melbourne, Victoria 3000 Australia About Trombonist Limited Trombonist Limited, which is also trading as Hooker Cockram Limited, is a general contractor of industrial buildings and warehouses. The company is located at Hawthorn, in Victoria, Australia. WATERWISE DISTRIBUTORS: Members & Creditors Meeting on March 5 -------------------------------------------------------------- Waterwise Distributors Pty. Ltd. will hold a joint meeting for its members and creditors at 9:00 a.m. today, March 5, 2008. During the meeting, the company's liquidator, Michael Griffin, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Michael Griffin Worrells Solvency & Forensic Accountants 102 Adelaide St., 8th Floor Brisbane, Queensland 4000 Australia Telephone:(07) 3225 4383 Facsimile:(07) 3225 4311 Web site: http://www.worrells.net.au About Waterwise Distributors Waterwise Distributors Pty. Ltd. is a distributor of pumps and pumping equipments. The company is located at Kelvin Grove, in Queensland, Australia. WLOSSAK PTY: Placed Under Voluntary Liquidation ----------------------------------------------- Wlossak Pty. Limited's members agreed on January 22, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Terrence John Rose and Terry Grant van der Velde to facilitate the sale of its assets. The liquidators can be reached at: Terrence John Rose Terry Grant van der Velde Garden City Office Park, Building 10 2404 Logan Road Eight Mile Plains Queensland 4113 New Zealand About Wlossak Pty. Located at Raby Bay, in Queensland, Australia, Wlossak Pty. Limited is an investor relation company. ZINIFEX: Fitch Puts BB+ IDR on Watch Positive Over Oxiana Merger ---------------------------------------------------------------- Fitch Ratings has placed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating on Rating Watch Positive, following the announcement of a merger proposal with Oxiana Limited, whereby both companies will own 50% each of a new company yet to be named. The rating watch is expected to be resolved within six months by which time the structure of the merged entity, including its debt structure, will be clearer. "Fitch regards the merger as positive for Zinifex's ratings. The diversification from Zinifex's historic narrow zinc and lead focus into copper, following the merger with Oxiana, is positive and follows the imminent acquisition of nickel producer, Allegiance Mining NL," says Maurice O'Connell, director in Fitch's corporate team based in Sydney. "The merged entity will have a strong balance sheet and credit metrics which will allow it to expand and diversify further in a manner that is likely to remain favourable for its credit rating and outlook," added Maurice O'Connell. Zinifex, with a market capitalization of AUD5.6 billion, is the world's third largest zinc producer, supplying approximately 5% of global zinc concentrate and about 1% of global demand for lead. Its major assets are the Century and Rosebery mines. Zinifex is also in the process of acquiring nickel producer, Allegiance Mining NL, for approximately AUD860 million. Oxiana, with a market capitalisation of AUD5.7 billion, is predominantly a copper, zinc and gold miner with operations both in Australia and Laos. The merger will take place via a Scheme of Arrangement whereby Zinifex shareholders will receive 3.1931 Oxiana shares for each Zinifex share. Zinifex has shown very strong cash flow generation in the last two years as a consequence of buoyant zinc and lead prices. Its cash flow was further enhanced by the divestment of its smelting operations in October 2007, when Zinifex combined its smelting operations with those of Umicore SA to form Nyrstar NV. Zinifex currently has over AUD2.2 billion cash on its balance sheet, while Oxiana has a low net debt of AUD174 million. Oxiana is not rated by Fitch. ================================================ C H I N A & H O N G K O N G & T A I W A N ================================================ ASIAN STOCKBROKERS: Creditors' Proofs of Debt Due on March 28 ----------------------------------------------------------- The creditors of Asian Stockbroker's Awards Limited are required to file their proofs of debt by March 28, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 22, 2008. The company's liquidator is: Kenneth Raymond Deayton 38th Floor, Tower One, Lippo Centre 89 Queensway Hong Kong ASIA VIEW: Creditors Meeting Fixed for April 7 ----------------------------------------------- The creditors of Asia View Holdings Limited will have their final general meeting on April 7, 2008, at 1st Floor, 18 Russell Street, Causeway bay, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Zhang Yun 1st Floor, 18 Russell Street Causeway Bay Hong Kong ASSCALADE COMMUNICATIONS: Files for Creditor Protection ------------------------------------------------------- Ascalade Communications Inc. intends to seek protection from creditors under the Companies' Creditors Arrangement Act with the British Columbia Supreme Court. Ascalade's Board of Directors has determined that seeking creditor protection is in the interests of the company, its creditors, shareholders, employees, customers and other stakeholders. These actions are necessary because of the Company's inability to fund operations to meet customer demand. This is as a result of significant operational challenges due to difficulty hiring and retaining workers, continued labor and material cost increases, sustained competitive price pressures and foreign exchange variations impacting the business. "Following the results of our previously announced operational and strategic review, our Board of Directors has concluded that seeking CCAA protection is in the best interest of the Company and its stakeholders. In addition, we are exploring the sale in whole or in part of Ascalade's assets as a key step in executing our stakeholder value strategy," said John Kim, Ascalade's Lead Director. "We anticipate working with our advisors and interested parties to execute this strategy successfully," he added. In conjunction with the application for creditor protection the Company announced the following updates: -- The resignation from the Board of Directors of Mr. Brian Barry and Mr. Frankie Li. The resignations took effect on February 29, 2008. -- The formation of a Special Committee by the Board of Directors for the purpose of exploring restructuring alternatives to maximize creditor and shareholder value, including transactions involving the sale of all or part of the assets of the Company. -- The retention of Deloitte & Touche Inc. as asset recovery and restructuring advisors and to support management in ensuring creditor and shareholder value is maximized. -- The formation of an executive project team to manage the restructuring process. Under the leadership of Greg Allen, the following executives have been retained to work on the restructuring project - Greg Allen, Troy Bullock, Eric Ho and Fred Li. -- Ascalade Communications Limited, our Hong Kong subsidiary, will be preparing to put forward a Scheme of Arrangement under the Hong Kong laws for the consideration by its creditors. See below for additional information on a Scheme of Arrangement. -- We plan to reduce the number of employees in our Canada, UK and Hong Kong offices over the next three month period. Greg Allen, Ascalade's President said: "Today's filing is a result of the completion of our operational and strategic review and difficulties in funding operations due to continued significant operational and business challenges. Allen added "The company believes it has valuable assets located throughout the world and we believe that seeking CCAA protection will allow the company time to restructure its assets and operations and find alternatives that are in the best interest of the company's stakeholders." The intent of the CCAA filing is to enable Ascalade to continue its day to day operations for as long as possible or until its CCAA status changes. The implications for Ascalade's shareholders will not be able to be determined until the end of the restructuring process and will depend on the terms of the restructuring plan approved by the affected stakeholders. The Company does not intend to file, on a timely basis, its annual financial statements and related regulatory filings. Scheme of Arrangement A scheme of arrangement is an arrangement entered into between a company and its creditors or any class of its creditors under Section 166 of the Companies Ordinance of Hong Kong. It becomes legally binding on all creditors, including those voting against the scheme and those not voting, if the requisite majority (representing more than 50% in number and also not less than 75% in value of the claims of creditors who - either in person or by proxy - attend a meeting of creditors convened with the leave of the Court) vote in favor of the scheme and the Court then approves it. A scheme becomes effective and legally binding when the order of the Court sanctioning it is filed with the Registrar of Companies for registration. About Ascalade Ascalade Communications Inc. is an innovative product company that designs, develops and manufactures digital wireless and communication products. Ascalade products have been distributed under customers' well-known brand names in over 35 countries and under 80 regional brands. Ascalade has design, manufacturing and distribution facilities in Richmond, British Columbia (head office), Qingyuan (China), Hong Kong and a sales office in Hertfordshire, (United Kingdom). A.S. WATSON: Commences Liquidation Proceedings ---------------------------------------------- A.S. Watson (Trading Hong Kong) Limited's members agreed February 15, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Ying Hing Chui and Chung Miu Yin, Diana to facilitate the sale of its assets. The liquidators can be reached at: Ying Hing Chui Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong BIO-RAD LABS: Earns US$12.3MM for 2007 4th Quarter Ended Dec. 31 ---------------------------------------------------------------- Bio-Rad Laboratories Inc. reported net income for the 2007 fourth quarter was US$12.3 million compared to US$16.6 million during the fourth quarter of the prior year. For the full 2007 fiscal year, the company's net income is US$92.9 million, compared to US$103.2 million net income for 2006. These results reflect non-cash charges of US$12.9 million, which includes a one-time charge of US$7.7 million for purchased in- process R & D, and approximately US$5.2 million in amortization of intangibles related to DiaMed. Including the DiaMed acquisition, fourth-quarter basic earnings from operations were US$0.46 per share, compared to US$0.63 during the same period last year. Fourth-quarter gross margin was 50.8% compared to 54.1% during the same quarter last year. The lower margin in the most recent quarter reflects the impact of the DiaMed acquisition including foregone profit margin and the amortization of intangibles. Fourth-quarter revenues were US$459.6 million, up 34% compared to US$343.0 million reported for the fourth quarter of 2006. For the full year, sales grew by 14.7% to US$1,461.0 million compared to US$1,273.9 million in 2006. Excluding revenue from the DiaMed acquisition, Bio-Rad sales grew by 9.8%, or 5.2% after normalizing for the impact of currency effects. Full-year gross margin was 54.2% compared to last year's figure of 55.9%. Revenues, earnings, and gross margin for 2006 were all favorably impacted by one-time additional revenue of US$11.7 million which was the result of a licensing settlement agreement reached with bioMerieux SA in 2006. This increase was due to a combination of organic growth across Bio-Rad's two main product areas, the Life Science and Clinical Diagnostics segments, as well as the addition of DiaMed Holding AG products to the company's portfolio in the fourth quarter, which resulted in additional revenue of US$62.0 million and impacted fourth-quarter and full-year results. Excluding the revenue from the DiaMed acquisition, fourth-quarter revenues were up 15.9%, or 9.0% on a currency-neutral basis, compared to the same quarter last year. "Operationally, 2007 was another year of progress for Bio-Rad and one of investment as we welcomed DiaMed Holding AG into our organization," Norman Schwartz, Bio-Rad president and chief executive officer, said. "As 2008 moves forward, we will continue to explore opportunities to expand our business and improve our operational efficiencies." As of Dec. 31, 2007, the company's balance sheet reflected a total assets of US$1,971.5 million, total liabilities of US$999.9 million resulting to a total stockholders' equity of US$971.6 million. About Bio-Rad Laboratories Headquartered in Hercules, California, Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb) -- http://www.bio-rad.com/-- is a multinational manufacturer and distributor of life science research products and clinical diagnostics. It serves more than 85,000 research and industry customers worldwide through its global network of operations. The company employs over 5,000 people globally and had revenues of nearly USUS$1.3 billion in 2006. Aside from the United State, the company maintains operations in Bulgaria, Canada, Denmark, Greece, India, Philippines, Taiwan, and The Netherlands, Brazil, El Salvador, Mexico and Puerto Rico. * * * Bio-Rad Laboratories continues to carry Moody's Investor's Service's 'Ba2' corporate family rating and 'Ba3' senior subordinate debt rating, assigned in July 2003. BOMBARDIER INC: S&P Keeps Positive Watch on BB Rating ----------------------------------------------------- Standard & Poor's Ratings Services said its ratings, including the 'BB' long-term corporate credit rating, on Montreal-based Bombardier Inc. remain on CreditWatch with positive implications, pending a review of the company's future business and financial plans. S&P placed the ratings on CreditWatch Dec. 3, 2007, following the company's announcement to repurchase approximately US$1.1 billion of unsecured bonds on Nov. 28, 2007. The debt reduction came into effect on Jan. 17, 2008. "The combination of reduced debt, improved cash flow from all business segments, and significant backlog should enhance the company's financial risk profile and improve its credit measures," said Standard & Poor's credit analyst Greg Pau. S&P expects adjusted debt to EBITDA to improve to 3.2x for the year ended Jan. 31, 2008, from 4.6x from the preceding fiscal year, and funds from operations to debt to increase to 20% from 14%. In the next few weeks, Standard & Poor's will review the company's business and financial plans and discuss them with Bombardier management. This should allow S&P time to assess the implications of Bombardier's new business initiatives, including those related to the progress of its C-series aircraft development, its medium-term business, and financial risk profile. S&P expects to complete the assessment and resolve the CreditWatch before March 31, 2008. Headquartered in Canada, Bombardier Inc. (TSE: BBD) -- http://www.bombardier.com/-- is a manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. The company also has offices in the U.S., Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, Austria, Australia and China. CHINA MINSHENG: Gets Approval To Buy UCBH Stake for US$95 Mil. -------------------------------------------------------------- China Minsheng Banking Corporation Ltd. has received approval from the China Banking Regulatory Commission to buy a 4.9% stake in the US-based UCBH Holdings under a US$95 million deal, The Financial Express reports. The bank had completed the remittance approval procedure in China's State Administration of Foreign Exchange. According to the report, China Minsheng had said in October last year that it would pick up a 20% stake in UCBH Holdings, the holding company of the US-based United Commercial Bank, which primarily serves the Chinese communities and American companies doing business in China. UCBH Holdings said the deal was the first strategic investment in a banking institution in the US by a Chinese mainland bank, Financial Express says. The deal is expected to help the mid-sized Chinese bank to improve its asset management and develop a full range of financial services, Financial Express says. China Minsheng Banking Corporation Ltd's principal activity is the provision of commercial banking services that include absorbing public deposits, providing short term, medium term, and long term loans, making domestic and international settlement, discounting bills and issuing financial bonds. On July 16, 2007, the Troubled Company Reporter - Asia Pacific reported that on July 13, 2007, Fitch Ratings upgraded China Minsheng Banking Corp.'s individual rating to "D" from "D/E" while it affirmed its support rating at "4". CHINA MINSHENG: Posts CNY6.34 Billion Net Profit in 2007 -------------------------------------------------------- China Minsheng Banking Corporation Ltd. posted a net profit of CNY6.34 billion in 2007 under Chinese accounting standards, up 69% year-on-year, due to higher revenues and reduced costs. The lender's operating revenues were up 45% year-on-year at CNY25.3 billion in 2007. Of the total, net interest income rose 40% to CNY22.6 billion, while non-net interest income jumped 112% to CNY2.7 billion, the bank said in a statement. China Minsheng said it has improved its investment structure and expanded its intermediate businesses like wealth management and assets management amid tightened macro-economic controls and the subprime crisis in the United States. Earnings per share stood at CNY0.48 in 2007, compared with CNY0.31 a year earlier. The cost to income ratio decreased to 46.26% last year from 47.71% a year ago. The non-performing loan ratio stood at 1.22% at the end of 2007, against 1.25% at end-2006, the bank said. Looking ahead, the company expects to realize a net profit of CNY9 billion this year with the NPL ratio seen at around 2%. Deposits are expected to reach CNY796 billion at end-2008 from CNY671.2 billion end-2007, while loans is projected to hit CNY651 billion, against CNY555 billion at the end of 2007. China Minsheng Banking Corporation Ltd's principal activity is the provision of commercial banking services that include absorbing public deposits, providing short term, medium term, and long term loans, making domestic and international settlement, discounting bills and issuing financial bonds. On July 16, 2007, the Troubled Company Reporter - Asia Pacific reported that on July 13, 2007, Fitch Ratings upgraded China Minsheng Banking Corp.'s individual rating to "D" from "D/E" while it affirmed its support rating at "4". CHINA MINSHENG: To Sell 3.26% Stake in Haitong Securities --------------------------------------------------------- China Minsheng Banking Corporation Ltd. will sell via an auction a 3.26% stake in Haitong Securities, China's third-largest listed brokerage, Reuters reports. Citing Shanghai Securities News, Reuters relates that the deal could generate a net after-tax gain of CNY3.3 billion for China Minsheng and that the deal was expected to be booked in the first half of the year. The disposal of the stake, which China Minsheng acquired as a repayment of debt, had been required under Chinese banking rules, Shanghai Securities News said. China Minsheng told Reuters that it would auction 134 million Haitong shares using as a reference point the price of a share placement last November, which the Shanghai Securities News said was CNY35.88 each, and based on market conditions. China Minsheng Banking Corporation Ltd's principal activity is the provision of commercial banking services that include absorbing public deposits, providing short term, medium term, and long term loans, making domestic and international settlement, discounting bills and issuing financial bonds. On July 16, 2007, the Troubled Company Reporter - Asia Pacific reported that on July 13, 2007, Fitch Ratings upgraded China Minsheng Banking Corp.'s individual rating to "D" from "D/E" while it affirmed its support rating at "4". DARRACOTT LIMITED: Commences Liquidation Proceedings ---------------------------------------------------- Darracott Limited's members agreed February 22, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Chan Wai Chun, Heather and Wong Man Ching to facilitate the sale of its assets. The liquidators can be reached at: Chan Wai Chun, Heather Wong Man Ching Room 1101, 11th Floor China Insurance Group Building 141 Des Voeux Road Central Hong Kong EPIPHANY CAPITAL: Commences Liquidation Proceedings --------------------------------------------------- Epiphany Capital Managment Limited's members agreed February 20, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Leung Hok Lim and Leong Ting Kwok, David to facilitate the sale of its assets. The liquidators can be reached at: Leung Hok Lim Leong Ting Kwok, David 26th Floor, Citicorp Centre 18 Whitfield Road Causeway Bay Hong Kong FUTEC PACKAGING: Commences Liquidation Proceedings -------------------------------------------------- Futec Packaging Limited's members agreed February 22, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Leung Hok Lim and Leong Ting Kwok, David to facilitate the sale of its assets. The liquidator can be reached at: Leung Hok Lim Leong Ting Kwok, David 26th Floor, Citicorp Centre 18 Whitfield Road Causeway Bay Hong Kong GIAN ANDREA: Commences Liquidation Proceedings ---------------------------------------------- Gian Andrea Campanile Limited's members agreed Feb. 15, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Liu Chi Tan Stephen to facilitate the sale of its assets. The liquidator can be reached at: Liu Chi Tan Stephen Room B, 3rd Floor Grand Progress Building 58 D' Aguilar Street Hong Kong MICHINOKU FINANCE: Commences Liquidation Proceedings ----------------------------------------------------- Michinoku Finance (Hong Kong) Limited's members agreed February 15, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Rainer Hok Chung Lam and John James Toohey to facilitate the sale of its assets. The liquidators can be reached at: Rainer Hok Chung Lam John James Toohey 22nd Floor, Prince's Building Central, Hong Kong NIHON (HONG KONG): Liquidators Quit Posts ----------------------------------------- On February 29, 2008, Lai Kar Yan (Derek) and Darach E. Haughey stepped down as liquidators for Nihon (Hong Kong) Company Limited. NINGBO BIRD: To Sell 50% Stake in Sagem Joint Venture ----------------------------------------------------- Ningbo Bird Co., Ltd., will sell its 50% joint venture stake to French partner Sagem for CNY159 million, China Daily reports. In 2005, Ningbo Bird collaborated with Paris-based Sagem to build Ningbo Bird Sagem Electronics, China Daily says. The joint venture had registered capital of US$25.4 million to develop and produce cellphones for domestic sales and exports. The agreed selling price was based on the net asset value of Ningbo Bird Sagem as of Dec. 31, 2007, Ningbo Bird said in a statement to the Shanghai Stock Exchange, as intercepted by China Daily. An extraordinary shareholders' meeting will be held on March 17, 2008, to ratify the proposed transaction, Ningbo Bird added. "It's just an ordinary capital adjustment for us," said Li Fujiong, Ningbo Bird's deputy general manager for marketing. "Our core business won't be affected at all after the sale of our stake in the joint venture." Shen Zixin, director of telecom research at Pday Research, opined to China Daily that it makes sense for Ningbo Bird and other local cellphone makers to boost their capital base because he said "the global cellphone manufacturing industry is likely to slow." According to China's Ministry of Information Industry, 548 million cellphones were made in China in 2007, up 14% from 2006, but phone prices have dropped an average 85%. "It's not only a domestic problem, the industry is facing the same issue worldwide," Mr. Shen told China Daily. Chinese cellphones account for more than 70% of those produced globally, the Ministry of Information said. Based in Ningbo, Zhejiang Province, Ningbo Bird Co., Ltd. -- http://www.birdintl.com/main.html-- is principally engaged in the development, manufacture and sale of mobile communications products. The company offers mobile phones and accessories, communications system equipment, personal digital assistants (PDAs), office equipment and other electronics products, under the brand name of Bird. The company also exports its products to over 60 countries, including the United States, Mexico, Argentina, and France, among others. Xinhua Far East China Ratings gave the company a BB- issuer credit rating on April 5, 2006. RIL SECURITIES: Commences Liquidation Proceedings ------------------------------------------------- Ril Securities Limited's members agreed February 15, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Nathalia K M Seng and Susan Y H Lo to facilitate the sale of its assets. The liquidators can be reached at: Nathalia K M Seng Susan Y H Lo Level 28, Three Pacific Place 1 Queens Road East Hong Kong SEFAIR BROKERS: Liquidators Quit Post ------------------------------------- On February 21, 2008, Ho Hoi Lam and Man Fung Ying stepped down as liquidators for Sefair Brokers Limited. SERONO HONG KONG: Creditors' Proofs of Debt Due on March 31 ----------------------------------------------------------- The creditors of Serono Hong Kong Limited are required to file their proofs of debt by March 31, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 22, 2008. The company's liquidator is: Luk Sai Yan 12th Floor, Lockhart Road Wanchai, Hong Kong TAILOR PLUS: Commences Liquidation Proceedings ---------------------------------------------- Tailor Plus Company Limited's members agreed February 22, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Ng Kwok Cheung, Bernard to facilitate the sale of its assets. The liquidator can be reached at: Kwok Cheung, Bernard Flat B, 16th Floor Empire land Commercial Centre 81-85 Loackhart Road Wanchai, Hong Kong TOYOTA TSUSHO: Liquidators Quit Post ------------------------------------- On February 29, 2008, Moriyama Tsunenaga and Murakami Yoshishiro stepped down as liquidators for Toyota Tsusho (Hong Kong) Company Limited. ========= I N D I A ========= DRESSER-RAND: UBS Keeps Neutral Rating on Firm's Shares ------------------------------------------------------- UBS analysts have kept their "neutral" rating on Dresser-Rand Group's shares, Newratings.com reports. Newratings.com relates that the target price for Dresser-Rand's shares was decreased to US$40 from US$44. UBS said in a research note that Dresser-Rand's fourth quarter earnings per share didn't reach estimates and the consensus. UBS told Newratings.com that the "shortfall was on account of delayed Aftermarket orders." The earnings per share estimates for 2008 was decreased to US$2.00 from US$2.05, Newratings.com states. Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). The 'BB+' rating, and '1' recovery rating, indicate expectation of very high (90%-100%) recovery in the event of a payment default. FIAT SPA: Government Approves Equal Partnership with Tata Motors ---------------------------------------------------------------- Partners Fiat Group Automobiles S.p.A and Tata Motors Ltd.'s joint venture, Fiat India Automobiles Pvt. Ltd., have been given permission by the Maharashtra Government to restructure the present 51:49 equity to an equal partnership with each one holding a 50:50 share. Fiat SpA and Tata Motors have committed to invest an estimated amount of RS4,000 crore to be delivered in phases depending on the requirements. The project aims to manufacture cars for the two companies, Fiat engines and power trains for the local market and for the global market in the future. 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 compay also carries B short- term rating. S&P said the outlook is stable. NOVELL INC: Earns US$16.8 Million in Fiscal First Quarter 2008 -------------------------------------------------------------- Novell Inc.'s net profit increased to US$16.8 million in its fiscal first quarter 2008 ended Jan. 31, 2008, compared to a US$19.9 million net loss in the same period last year. For the quarter, Novell reported net revenue of US$231 million. This compares to net revenue of US$218 million for the first fiscal quarter 2007. Income from operations for the first fiscal quarter 2008 was US$8 million, compared to a loss from operations of US$21 million for the first fiscal quarter 2007. Income from continuing operations in the first fiscal quarter 2008 was US$15 million, or US$0.04 per share. This compares to a loss from continuing operations of US$12 million, or US$0.04 loss per share, for the first fiscal quarter 2007. Foreign currency exchange rates favorably impacted revenue and unfavorably impacted operating expenses by US$7 million and did not materially impact income from operations year-over-year. On a non-GAAP basis, income from operations for the first fiscal quarter 2008 was US$24 million. This compares to non-GAAP loss from operations of US$1 million in the year-ago quarter. Non- GAAP income from continuing operations for the first fiscal quarter 2008 was US$29 million, or US$0.08 per share. This compares to non-GAAP income from continuing operations of US$3 million, or US$0.01 per share, for the first fiscal quarter 2007. For the first fiscal quarter 2008, Novell reported US$30 million of revenue from Open Platform Solutions of which US$28 million was from Linux Platform Products, up 65% year-over-year. Revenue from Identity and Security Management was US$32 million of which Identity and Access Management was US$28 million, up 15% year-over-year. Revenue from Systems and Resource Management was US$37 million, up 5% year-over-year. Workgroup revenue of US$90 million was up 1% year-over-year. "We are very pleased with our results this quarter. We delivered product revenue growth across all business units and continued expense control this quarter," said Ron Hovsepian, President and CEO of Novell. "These results are indicative that our strategic initiatives are yielding tangible results and that we are on the right path to achieve long-term, sustainable profitability." Cash, cash equivalents, and short-term investments were US$1.8 billion at Jan. 31, 2008, consistent with the year-ago quarter. Days sales outstanding in accounts receivable was 51 days at the end of the first fiscal quarter 2008, down from 57 days at the end of the year-ago quarter. Total deferred revenue was US$723 million at the end of the first fiscal quarter 2008, down from US$728 million at the end of the year-ago quarter. Cash flow from operations was a negative US$26 million for the first fiscal quarter 2008, which includes US$31 million in special interest and restructuring payments. This compares to cash flow from operations of US$348 million in the first fiscal quarter 2007 which includes the US$348 million payment from Microsoft and US$8 million in special interest payments. As a result of our acquisition of PlateSpin and our first fiscal quarter 2008 performance, Novell's management issued this financial guidance for the full fiscal year 2008: -- net revenue is expected to be between US$940 million and US$970 million exceeding previously stated guidance of between US$920 million and US$945 million. -- Non-GAAP operating margin is expected to be between 7% and 9%, excluding all acquisition-related intangible asset amortization. Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq: NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise. Novell provides desktop to data center operating systems based on Linux and the software required to secure and manage mixed IT environments. The company has offices in Australia, Argentina, Austria, Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Philippines, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand and United Kingdom. * * * Novell Inc.'s subordinated debt carries Moody's Investors Service's B1 rating. TATA MOTORS: Likely to Close Sale Deal with Ford in 2nd Qtr. ------------------------------------------------------------ The sale deal between Tata Motors Ltd. and Ford Motor Co. for the latter's Jaguar and Land Rover units is expected to close in the second quarter, according to Ford's U.S. Securities and Exchange Commission annual report filing. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 27, 2008, the announcement of the sale of the two Ford marque brands to Tata Motors is expected to be made on March 6 or 7. The transaction is speculated to be at a US$1.5 billion to US$2 billion range. According to the Economic Times, both parties are still in talks over issues relating to supply of engines, platforms and technologies. As previously reported in the TCR-AP, Tata Motors and Ford met with British union leaders, last month, to resolve final details before drawing up a memorandum of understanding for the sale. The union is satisfied with Tata Motors assuring them, among others, of keeping employment in the United Kingdom at its current level. Ford committed to sell Jaguar and Land Rover to restructure its core Automotive operations and build liquidity, the SEC filing stated. 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. * INDIA: Moody's Says Structured Finance Market Growth Robust ------------------------------------------------------------- Moody's Investors Service and ICRA Ltd, its Indian affiliate, say that the Indian structured finance market growth has been robust as the sector has essentially been unaffected by the fallout from the sub-prime crisis. "India remains a domestic market with local issuance more than doubling to US$14.6 billion in 2007 from US$6.7 billion in 2006," says Moody's Dominique Gribot-Carroz and ICRA's Kalpesh Gada, the authors of a just-released review and outlook of the sector. The vigorous growth of 2007 was dominated by numerous small deals, each averaging USD37 million, slightly below the USD41 million of 2006, the report says. The expansion was mainly driven by single loan CLO and ABS, while there were no public cross-border deals in 2007. Gribot-Carroz is an Assistant Vice President with Moody's in Hong Kong and heads the company's business development activities for structured finance in Asia, while Gada is Head of Structured Finance Products for ICRA. Their joint report looks at a host of issues, including an analysis of the market's asset classes, the regulatory environment and ratings performance. "The growth for 2007 shows that the Indian domestic market was quite insulated from the global credit environment," says Gribot-Carroz, adding, "Growth was well sustained in the last quarters. " "When explaining the expansion, it must be mentioned that compared to some of the more advanced Western capital markets, Indian domestic securitization transactions have far lower structural complexity," says Gribot-Carroz. "In addition, the ratings of securitized debt have been largely stable in India, and together these factors may have helped retain investor confidence." "Looking at the rest of 2008, the prospects for single loan CLO seems favourable and another year of growth is likely, while domestic ABS volumes should also grow as a number of players in retail finance adopt the originate-to-securitize model," says Gada. "Implementation of the Basel II framework-which offers the prospect of capital relief on securitization-could be another motivating factor for banks to securitize some of their assets," says Gada. Last year also saw several steps by both the Reserve Bank of India and the Securities and Exchange Board of India towards a more favourable regulatory environment, although the outcome of their reforms is still awaited, the report says. The report, entitled Growth Continues can be found at http://www.moodys.comand http://www.icraratings.comand is part of a series on Asian Structured Finance -- 2007 Year in Review and 2008 Outlook. The series is divided into 6 reports: -- Asian Structured Finance: Will the Year of the Rat be More Favorable for Cross-Border Markets? -- Structured Finance in South Korea: Growth Driven by CDO -- Structured Finance in India: Growth Continues -- Structured Finance in Taiwan, China and Hong Kong: Low Activity in 2007, Progressive Pickup Expected in 2008 -- Structured Finance in Southeast Asia: Cautious Environment But Growth Seen in Malaysian Domestic Market -- Regional Derivatives in Asia: Will 2008 Mirror 2007? ================= I N D O N E S I A ================= ARPENI PRATAMA: To Cut Bond Issue to IDR600 Billion --------------------------------------------------- PT Arpeni Pratama Ocean Line Tbk has lowered its March bond offering to IDR600 billion from the initial plan of IDR750 billion, Reuters Investing Keys reports. Arpeni Pratama plans to use proceeds from the sale to repay debt and for working capital. According to Reuters, the company offers the interest rate of 12% for its five-year bonds and 12.5% for its seven-year bonds. The company, the report relates, has cut the offered bonds as it has obtained loan offering with the lower interest rate, as much as 1.5% to 1.7% above London interbank offered rate (Libor). This gives the offered loan the interest rate of between 4.5% and 4.75%. About Arpeni Pratama PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is a marine shipping company. The company's activities include bulk and liquid transportation services. Arpeni operates a fleet of general-purpose specialist, such as their tweendecker MV Alas, which is designed to transport dry cargoes such as plywood and agricultural products. * * * As reported in the Troubled Company Reporter - Asia Pacific on Jan. 30, 2008, Fitch Ratings affirmed the 'BB-' Long-term foreign and local currency Issuer Default Ratings, and the 'A+(idn)' National Long-term rating of PT Arpeni Pratama Ocean Line Tbk. The Outlook on the ratings has been revised to Negative from Stable. At the same time, Fitch has affirmed the 'BB-' rating on Arpeni's US$160 million senior notes due 2013. The TCR-AP also reported on April 24, 2006, that Standard & Poor's Ratings Services assigned its B+ corporate credit rating to PT Arpeni, with a stable outlook. At the same time, Standard & Poor's assigned its 'B+' rating to the proposed US$160 million seven-year senior unsecured notes to be issued by the company. The company intends to use a part of the net proceeds -- about US$93 million -- for refinancing existing debt, and the balance for capital expenditure and vessel financing. ARPENI PRATAMA: To Buy Six Bulk Carriers for US$88 Million ---------------------------------------------------------- PT Arpeni Pratama Ocean Line Tbk plans to buy six bulk carriers at a price of US$88 million in 2008 to meet growing demand for cargo transport, Reuters Investing Keys reports. According to the report, the company indicated that the demand for commodity transport such as coal transport to power plants is expected to grow in 2008. The new ships will be used for the transport of nickel, oil and other mining products, the report adds. PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is a marine shipping company. The company's activities include bulk and liquid transportation services. Arpeni operates a fleet of general-purpose specialist, such as their tweendecker MV Alas, which is designed to transport dry cargoes such as plywood and agricultural products. * * * As reported in the Troubled Company Reporter - Asia Pacific on Jan 30, 2008, Fitch Ratings affirmed the 'BB-' Long-term foreign and local currency Issuer Default Ratings, and the 'A+(idn)' National Long-term rating of PT Arpeni Pratama Ocean Line Tbk. The Outlook on the ratings has been revised to Negative from Stable. At the same time, Fitch has affirmed the 'BB-' rating on Arpeni's US$160 million senior notes due 2013. The TCR-AP also reported on April 24, 2006, that Standard & Poor's Ratings Services assigned its B+ corporate credit rating to PT Arpeni. The outlook is stable. At the same time, Standard & Poor's assigned its 'B+' rating to the proposed US$160 million seven-year senior unsecured notes to be issued by the company. The company intends to use a part of the net proceeds -- about US$93 million -- for refinancing existing debt, and the balance for capital expenditure and vessel financing. BANK CENTRAL ASIA: Fitch Ups Long-Term IDR to BB ------------------------------------------------ Fitch Ratings has upgraded PT Bank Central Asia Tbk's long-term issuer default rating to BB with a stable outlook. At the same time, Fitch affirmed the company's B short-term issuer default rating, and AA+(IDN) national long term rating with stable outlook. BANK INTERNASIONAL: Chinese Banks to Buy Temasek's 55.97% Stake --------------------------------------------------------------- Industrial and Commercial Bank of China and China Construction Bank plan to buy Temasek Holdings' 55.97% stake in Bank Internasional Indonesia, various reports say. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 28, 2008, Temasek Holdings may decide to sell its controlling stake in the Bank Internasional, driven by an Indonesian central-bank policy. Under Bank Indonesia's single- presence policy, foreign parties cannot own a controlling stake in more than one Indonesian bank and must submit statements of compliance to this rule. Bank Indonesia set an end-2007 deadline for affected bank owners to decide on how they would comply with the rule. Foreigners controlling Indonesian banks have three options to comply with the single presence policy introduced by Bank of Indonesia, the TCR-AP related: -- merge the banks, -- set up a holding company for the banks, or -- sell down their stakes. Temasek's Fullerton Financial Holdings Pte Ltd. since 2003 has owned 75% of the shares of Sorak consortium, which in turn owns a 55.85% stake in BII. Fullerton also holds a 59% majority share in Bank Danamon. XFN-ASIA notes that Bank Internasional's stake is expected to sell for at least US$1 billion. According to The Post, Bank Indonesia Director for Research and Banking Administration Halim Alamsyah confirmed that central bank had received proposals from the two banks for the shares. However, they haven't decided anything, and is still studying the proposals, the report relates. Mr. Alamsyah, The Post relates, said the central bank had no reservations about accepting the proposal from the foreign banks. However, he said he would have been "glad" if it was a local bank. Tempo Interactive recounts that the government earlier gave state-owned banks the opportunity to buy BII. Sofyan Djalil, the State-owned enterprises (SOEs) State Minister, said the interested state-owned banks had to convey their reasons and analysis to the SOEs Minister, the Coordinating Minister for the Economy and the Finance Minister to be discussed further, Tempo adds. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on March 3, 2008, Fitch Ratings has affirmed PT Bank Internasional Indonesia Tbk's(BII) long-term foreign currency Issuer Default Rating at 'BB', following Fullerton Financial Holdings' announcement of its intentions to pursue the sale of its interest in BII. FFH is a wholly owned subsidiary of Temasek Holdings. On October 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk. -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2 -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of Bank Internasional as follows: * Long-term foreign currency IDR at 'BB-' with a Positive Outlook, * Short-term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)'. BANK MANDIRI: Fitch Upgrades Long-Term IDR to BB ------------------------------------------------ Fitch Ratings has upgraded the local currency and long-term issuer default ratings of PT Bank Mandiri (Persero) Tbk to BB, with a stable outlook. At the same time, Fitch affirmed the B short-term issuer default rating and AA+(IDN) national long term rating. Also, Fitch raised the support rating floor to BB-. BAKRIE SUMATERA: Acquires 37.5% of Menthobi Makmu for IDR500,000 ---------------------------------------------------------------- PT Bakrie Sumatera Plantations Tbk has acquired 375 shares in PT Menthobi Makmur Lestari and the same amount of shares in PT Menthobi Mitra Lestari at the par value of IDR500,000, Reuters Investing Keys reports. After the transaction, the report relates, the company holds 37.5% equity stake each in PT Menthobi Makmur Lestari and PT Menthobi Mitra Lestari (target companies). The company's subsiadiary, PT Bakrie Sentosa Persada, holds 62.5% equity stake each in the target companies, the report adds. Headquartered in Sumatra, Indonesia, PT Bakrie Sumatera Plantations Tbk is Indonesia's third largest largest publicly traded plantation company. It is 54% owned by PT Bakrie & Brothers Tbk, and its products include crude palm oil, palm kernel oil and latex. It was listed in 1990 on the Jakarta Stock Exchange. BSP carries Standard & Poor's Ratings Services' 'B' corporate credit rating. The outlook is stable. The Troubled Company Reporter-Asia Pacific reported on Sept. 28, 2007, that Standard & Poor's Ratings Services affirmed its 'B' corporate credit ratings on Indonesia's PT Bakrie Sumatera Plantations Tbk. S&P said the outlook is stable. On Sept. 27, 2007, Moody's Investors Service has changed to positive from stable the outlook for Bakrie Sumatera Plantations Tbk's B2 corporate family rating and secured bond rating on its US$160 million notes. BAKRIE SUMATERA: To Get US$224 Million in Loans ----------------------------------------------- PT Bakrie Sumatera Plantations Tbk will get US$224 million in loans to expand its oil palm plantation, Reuters Investing Keys reports. According to the report, the company will sign a loan agreement at the end of February 2008. Headquartered in Sumatra, Indonesia, PT Bakrie Sumatera Plantations Tbk is Indonesia's third largest largest publicly traded plantation company. It is 54% owned by PT Bakrie & Brothers Tbk, and its products include crude palm oil, palm kernel oil and latex. It was listed in 1990 on the Jakarta Stock Exchange. BSP carries Standard & Poor's Ratings Services' 'B' corporate credit rating. The outlook is stable. The Troubled Company Reporter-Asia Pacific reported on Sept. 28, 2007, that Standard & Poor's Ratings Services affirmed its 'B' corporate credit ratings on Indonesia's PT Bakrie Sumatera Plantations Tbk. S&P said the outlook is stable. On Sept. 27, 2007, Moody's Investors Service has changed to positive from stable the outlook for Bakrie Sumatera Plantations Tbk's B2 corporate family rating and secured bond rating on its US$160 million notes. INDAH KIAT: Expects 2008 Revenue to Grow by 10% to 20% ------------------------------------------------------ PT Indah Kiat Pulp & Paper Tbk expects its fiscal year 2008 revenue to grow by 10% to 20%, Reuters Investing Keys reports. According to the report, the company said that the target could be possible if the supply of raw material meets the company's need. Headquartered in Jakarta, Indonesia, PT Indah Kiat Pulp & Paper Tbk is a manufacturing company engaged in the production of paper and pulp. Finance Asia said on Nov. 13, 2006, that Indah Kiat, a subsidiary of Asia Pulp & Paper, had defaulted on US$14 billion of debt and is "one of the world's largest defaulters, if not certainly Asia's." The Widjaja family, the controllers of Asia Pulp, have been struggling with their creditors since they ceased all payments on their debt in 2001. Indonesian ratings company Pefindo gave the company's long-term debt an idD rating, effective on April 14, 2001. Additionally, Reuters reports that Indah Kiat delayed filing its first quarter 2006 financials, and that the company will not pay dividends for FY2005. INDAH KIAT: Federal New-York Court Rules Against the Company ------------------------------------------------------------ A federal court in New York City has ruled in favor of the Export-Import Bank of the United States (Ex-Im Bank) and granted summary judgment in the bank's civil suit against PT Indah Kiat Pulp & Paper Tbk and others, Reuters Investing Keys reports. Ex-Im Bank, the report recounts, filed a civil suit to recover US$52.43 million from the company claiming that Indah Kiat has defaulted on the loans granted by Ex-Im Bank. The summary judgement will be given in March 2008, the report adds. According to Reuters, The Indah Kiat has decided to appeal against the summary judgement. The company and others had invited Ex-Im Bank to participate in a discussion in an attempt to reach a restructuring solution and avoid litigation but Ex-Im Bank decided to bring the case to court, the report notes. About Indah Kiat Headquartered in Jakarta, Indonesia, PT Indah Kiat Pulp & Paper Tbk is a manufacturing company engaged in the production of paper and pulp. Finance Asia said on Nov. 13, 2006, that Indah Kiat, a subsidiary of Asia Pulp & Paper, had defaulted on US$14 billion of debt and is "one of the world's largest defaulters, if not certainly Asia's." The Widjaja family, the controllers of Asia Pulp, have been struggling with their creditors since they ceased all payments on their debt in 2001. Indonesian ratings company Pefindo gave the company's long-term debt an idD rating, effective on April 14, 2001. Additionally, Reuters reports that Indah Kiat delayed filing its first quarter 2006 financials, and that the company will not pay dividends for FY2005. ========= J A P A N ========= ALITALIA SPA: Hikes Net Debt to EUR1.28 Billion in January 2008 --------------------------------------------------------------- The Alitalia Group's net debt as of Jan. 31, 2008, amounted to EUR1.28 billion, showing an increase in net indebtedness of EUR81 million compared to the situation on Dec. 31, 2007, this trend is due to the typical seasonality of this month's proceeds and payments, which are substantially in line with Budget targets. The net debt of the parent Alitalia S.p.A. including short-term financial credits for subsidiaries on Jan. 31, 2008, including short-term financial credits of subsidiaries, amounted to EUR1.265 billion showing an increase of EUR78 million compared to net debt as of Dec. 31, 2007. The Group's cash-to-hand and short-term financial credits as of Jan. 31, 2008, at the Group level and for Alitalia, amounted to EUR282 million and EUR297 million respectively (the corresponding figures on Dec. 31, 2007 were EUR367 million and EUR379 million). It should be noted that as of Jan. 31, 2008, there were several leasing contracts at the Group level (referring almost entirely to fleet aircraft mostly held by the parent company amounting to EUR82 million) whose capital share, including lease closure value, amounted to EUR94 million (of which EUR12 million represent the current capital share falling due within 12 months of the reference date, with EUR10 million held by the parent company). By comparison, the same figure as of Dec. 31, 2007, amounted to EUR95 million (of which EUR12 million falling due in the 12 months from the reference date); the corresponding figures for the parent company on Dec. 31, 2007, amounted to EUR82 million and EUR10 million respectively. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During Jan. 2008, repayments were made of medium/long-term financing amounting to about EUR3 million. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on Jan. 31, 2008, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, decisions are still pending for the petitions filed by Alitalia regarding: * an injunction related to supposed different pricing policies, issued by a carrier for EUR6 million (two decrees); * injunction issued by a supplier of on-board movies for EUR1.2 million (two decrees); * injunction issued by an IT services supplier for EUR812,000; * injunction issued by an Italian subsidiary of an air carrier bankruptcy for EUR288,000; * injunction has been issued by a maintenance services supplier for EUR492,000; * injunction issued by the special manager of a firm for presumed debts relating to air ticket sales, for EUR3.2 million; * injunction issued by a fuel supplier for EUR1 million; * injunction issued by an airport management company for limited failure to pay handling fees for EUR375,000; * injunction issued by three suppliers, for EUR76,000. There are no other injunction orders or executive actions undertaken by creditors notified as of Jan. 31, 2008, nor are there any threats by suppliers to suspend operations. Furthermore, it should be noted that the Company, in its ordinary running of the business, constantly focuses on maintaining commercial relations with its clients and suppliers that -- absent particular issues or operational distress -- offer enough financial flexibility to support its liquidity. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it -- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina and Japan. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. BANK OF IKEDA: Fitch Assign BB+ Rating on Subordinated Notes ------------------------------------------------------------ Fitch Ratings has assigned BB+ rating on the Bank of Ikeda's subordinated notes: -- JPY15,000,000,000, due Feb. 23, 2015 -- JPY15,000,000,000, due Sept. 29, 2016 -- JPY5,000,000,000, due March 17, 2017 Headquartered in Osaka, The Bank of Ikeda, Ltd. -- http://www.ikedabank.co.jp/-- operates in four main business segments. The Banking segment provides banking, loan, stock investment and currency exchange services through a network of 66 branches and five offices. The Leasing segment is engaged in the leasing of industrial machinery, construction machinery, computers and office equipments, among others. The Credit Guarantee segment provides credit guarantee services for housing loans. The Card segment is engaged in the credit card-related business. Other businesses include venture capital business, investment consulting business, the development and sale of computer software, as well as the provision of information services. The Bank of Ikeda has 11 subsidiaries and one associated company. GMAC LLC: JCR Pares Foreign Currency Long-Term Rating to BB- ------------------------------------------------------------ Japan Credit Rating Agency has downgraded GMAC LLC foreign currency long-term senior debts rating to #BB- from #BB+. The rating remains under Credit Monitor (Negative). The downgrade reflects Residential Capital, LLC (ResCap), GMAC's mortgage operations' deteriorating earning prospects and difficult funding environment. If level of liquidity or equity capital of ResCap will be substantially weakened, GMAC's rating will be further downgraded. 1. Although ResCap used to be a substantial contributor to GMAC's operating performance in the past, its operation is increasingly pressured by recent mortgage market conditions. In 2007 ResCap reported a substantial net loss mainly because of credit and market related charges and write-downs, resulting in US$2.3 billion consolidated annual net loss of GMAC. 2. In an increasingly challenging operating environment, JCR sees a growing possibility that ResCap should continue to record losses in coming quarters. In this case, ResCap could breach its financial covenant which requires it to maintain a minimum consolidated tangible net worth of US$5.4 billion. The tangible net worth of ResCap at the end of 2007 was US$6.0 billion. 3. In recent years, GMAC's auto finance and insurance have been performing well. However, JCR thinks it likely that operating environment of auto finance business in North America become weaker in the coming quarters. In addition, GMAC's profitability and liquidity will remain under risk due to challenging operating environment surrounding ResCap. GMAC's borrowing cost is rising recently, mainly reflecting market's perceptions of ResCap's deteriorating credit standing. 4. Continuation of Credit Monitor (Negative) reflects possibility of additional downgrades going forward. If level of liquidity or equity capital of ResCap will be substantially weakened, GMAC's rating will be further downgraded. HERBALIFE LTD: Canaccord Adams Reaffirms Buy Rating on Firm ----------------------------------------------------------- Canaccord Adams analyst Scott Van Winkle has reaffirmed his "buy" rating on Herbalife Ltd.'s shares, Newratings.com reports. Newratings.com relates that the one-year target price for Herbalife's shares was increased to US$57 from US$54. Mr. Winkle said in a research note that Herbalife's fourth quarter 2007 results were strong, with revenues and earnings per share surpassing the consensus. Mr. Winkle told Newratings.com that Herbalife continues to benefit from the daily consumption models the company and its distributors deployed. According to Newratings.com, Canaccord Adams said that Herbalife's new selling concept would prop up its long-term prospects "as it gains traction in other markets, including South America and China." Newratings.com says that Herbalife's earnings per estimate for 2008 was increased to US$3.30 from US$3.20. Meanwhile, Wedbush Morgan analysts have reaffirmed their "buy" rating on Herbalife's shares and increased the target price to US$50 from US$47, Newratings.com states. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- Herbalife, now in its 26th year, conducts business in 62 countries. The company does business with several manufacturers worldwide and has its own manufacturing facility in Suzhou, China as well as major distribution centers in Venray, Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., Guadalajara, Mexico, and El Salvador. The company also has operations in Venezuela. * * * As reported in the Troubled Company Reporter on April 5, 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Los Angeles-based Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. The board indicated that although it views Whitney's bid as too low, it would consider an improved offer. JAPAN AIRLINES: Announces Changes in Board Membership ----------------------------------------------------- The Japan Airlines Group has announced changes to the boards of directors and executive officers of Japan Airlines Corporation and Japan Airlines International, the Group's main operating airline for FY2008, the fiscal year ending March 31, 2009. The JAL Group is currently making consolidated efforts to restructure its business according to its Medium Term Revival Plan. In FY2008, the airline group will continue pushing forward with the various measures that are already underway and strive to achieve the targets set. In order to do this, JAL has decided to reappoint the executive directors who were appointed last fiscal year, and keep changes down to a minimum. The changes announced today are effective April 1, although some of them are subject to the approval of the annual general meeting of shareholders in late June when proposed new board members announced can be formally elected. New executive officers do not have board-voting rights and their appointments do not require shareholder approval. Mr. Haruka Nishimatsu remains as President and CEO of the JAL Corporation and JAL International. As already announced on Feb. 8, 2008, Toshiyuki Shinmachi will retire on March 31, 2008, from his position as board chairman of both companies. He will be joined by Mr. Takao Fukuchi who will retire from his post as Senior Vice President, Cargo and Mail also at the end of March. The post of JAL chairman will remain vacant, and Mr. Fukuchi will be replaced by Mr Kunio Hirata. Promoted to the position of Senior Vice President, Finance, Accounting, Purchasing will be Mr. Yoshimasa Kanayama. Mr. Hirata and Mr. Kanayama will remain in their current positions of Executive Officer from April 1, up until their new titles are approved at the annual general meeting of shareholders. Promotions within the ranks of the current board of members will result in President Nishimatsu being supported by two Vice Presidents, one Senior Managing Director and three Managing Directors. A slight change to the power of Senior Executive Officer will enable the Group to strengthen its corporate governance. A "Corporate Climate Reform Committee" will be established chaired by the President with an executive director appointed in charge. The committee will carry out activities that will cut across departments and job types helping to firmly establish within the Group a corporate culture founded on the pillars of safety and customer satisfaction. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. JAL: Expands Code Share Agreements with European Airline Cos. ------------------------------------------------------------- Japan Airlines has strengthened its Europe route network by expanding bilateral code share agreements with Air France and British Airways. Through the agreements JAL adds four European cities to its network: Lyons, Nice, Vienna and Zurich. As a result, including code shares, JAL will connect Japan to 24 cities in Europe (as of April 1, 2008). From March 30, 2008, JAL will be able to place its 'JL' code number on daily flights operated by Air France between Paris - Lyon and Paris - Nice. The flights provide convenient connections for passengers travelling on services offered by JAL between Japan and Paris. Reservations for these new intra- European code share flights go on sale from February 28, 2008. JAL currently operates daily flights to France on both the Tokyo-Paris and Nagoya-Paris routes. From July 1, 2008 JAL will increase frequency on the Tokyo-Paris route to 11 flights per week. The airline also code shares on flights operated by Air France between Tokyo - Paris and Osaka - Paris. At present, JAL passengers flying from Japan to Europe can connect via Paris to nine cities in Europe using intra-European code share flights operated by Air France. This will increase to 11 cities with the new code share flights. On February 18, 2008, JAL and British Airways -- both members of the oneworld alliance -- agreed to code share on flights operated by British Airways between London - Vienna and London - Zurich. The flights provide smooth connections for passengers travelling on JAL's daily services between Tokyo - London and Osaka - London. Since February 12, 2004, JAL has had a code share agreement on British Airways operated flights between London- Hamburg and London Stuttgart. From April 1, 2008, including code shares JAL will connect Japan to 24 cities in Europe: Amsterdam, Barcelona, Berlin, Budapest, Copenhagen, Dusseldorf, Frankfurt, Hamburg, Helsinki, London, Lyons, Madrid, Milan, Moscow, Munich, Nice, Rome, Paris, Prague, Stockholm, Stuttgart, Vienna, Warsaw and Zurich. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. ========= K O R E A ========= KOREAN EXPRESS: Kumho-Asiana Inks KRW4.1-Tril. Deal to Buy Stake ---------------------------------------------------------------- Kumho-Asiana Group, a South Korean transportation conglomerate, has signed a formal deal to buy a controlling stake in Korea Express Co. for KRW4.1 trillion, Yonhap News reports. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 21, 2008, Korea Express named Kumho-Asiana through affiliates Asiana Airlines Ltd. and Daewoo E & C, as the preferred bidder for a controlling stake in the company. The TCR-AP noted that Korea Express, which has been under court receivership since November 2000, plans to find a new owner by selling new shares equal to 50% of enlarged capital plus one share. Kumho-Asiana, the TCRAP noted, won the bid for Korea Express beating Hanjin Group, STX Group and Hyundai Heavy Industries Co. For the transaction, Yonhap relates, Korea Express is selling 24 million new shares, equivalent to 60% of its enlarged capital. Daewoo Engineering & Construction Co., the group's construction unit, will buy 9.62 million new shares of Korea Express for KRW1.6 trillion, and Asiana will buy 8.17 million new shares for KRW1.4 trillion won, Yonhap explains. The remaining stake will be purchased by partners of Kumho- Asiana, Yonhap adds. About Korea Express Co. Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/-- provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. Korea Express Bank has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Korea Express President Lee Kook- Dong will decide with a Seoul court about when to sell the company, which has a market value of US$601 million. In the company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. Korea Investors Service gave the company a BB rating. =============== M A L A Y S I A =============== ARK RESOURCES: SC OK's Variation to Principal Terms of RCSLS ------------------------------------------------------------ In relation to ARK Resources Berhad's Proposed Debt Restructuring Exercise, the Securities Commission has approved the variation to the principal terms and conditions of the redeemable convertible secured loan stock, where the proposed Debt Restructuring will involve the proposed issuance of up to MYR11,034,536 loan stock as compared to the proposed issuance of up to MYR10,355,311 loan stock that was previously approved. ARK Resources Berhad, formerly known as Lankhorst Berhad -- http://www.lankhorst.com.my/-- is an investment holding company with headquarters in Shah Alam, Malaysia. Through its subsidiaries, the Company provides civil and geotechnical engineering On April 24, 2006, Lankhorst was classified as an affected listed issuer under the Bourse's Practice Note 17/2005. It was, therefore, required to submit and implement a plan to regularize its financial condition category. ARK RESOURCES: Shareholders Okay All Resolutions During Meeting --------------------------------------------------------------- During the court-convened meeting and extraordinary general meeting held on February 28, 2008, the shareholders of ARK Resources Berhad approved all the resolutions passed, which comprises: * Proposed Corporate Restructuring, which involves: and -- Proposed Capital Reduction; -- Proposed Debt Restructuring; -- Proposed Rights Issue; and -- Proposed Placement. * Proposed Award of Sub-Contract ARK Resources Berhad, formerly known as Lankhorst Berhad -- http://www.lankhorst.com.my/-- is an investment holding company with headquarters in Shah Alam, Malaysia. Through its subsidiaries, the Company provides civil and geotechnical engineering On April 24, 2006, Lankhorst was classified as an affected listed issuer under the Bourse's Practice Note 17/2005. It was, therefore, required to submit and implement a plan to regularize its financial condition category. LITYAN HOLDINGS: Default Totals MYR27.53 Million as of Feb. 29 -------------------------------------------------------------- In a regulatory filing with the Bursa Malaysia Securities Bhd, Lityan Holdings Berhad disclosed the status of its default to credit facilities as of February 29, 2008. As of end-February 2008, Lityan Holdings owes its creditors MYR27.54 million in aggregate: Total Principal and Lender Type of Facility Interest in Default ------ ---------------- ------------------- RHB Bank Berhad Overdraft Facility MYR322,069.49 of MYR225,000/- RHB Bank Berhad Overdraft Facility 645,379.47 of MYR450,000/- Bank Islam Malaysia Letter of Credit 15,752,150.56 Berhad Labuan Facility/ Murabah Offshore Branch Working Capital (Formerly known as Financing/ Revolving Bank Islam (L) Ltd) Al-Bai-Bithaman-Ajil Facility of US$10-Mil. (Secured) Bank Islam Malaysia Revolving Al-Bai- 9,369,628.19 Berhad Labuan Bithaman-Ajil Facility Offshore Branch of US$5 million (secured) Ambank Berhad Overdraft Facility 1,420,246.43 of MYR1 million ---------------- MYR27,536,474.14 The three subsidiaries of Lityan, namely Lityan Systems Sdn. Berhad, Digital Transmission Systems Sdn. Bhd. and Lityan (L) Incorporated who have defaulted in various credit facilities to the financial institutions are not major subsidiaries of the company. Lityan is in the midst of submitting its Proposed Restructuring Scheme to the authorities for approval, looking into other business opportunities within its core activities to address its PN17 status. Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services. The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines. On May 10, 2005, the company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category. On January 16, 2006, the Company entered into a conditional Restructuring Agreement to undertake the Proposed Restructuring Scheme with the intention of restoring itself onto stronger financial footing via an injection of new viable businesses. LITYAN HOLDINGS: Creates Risk Management Committee -------------------------------------------------- Lityan Holdings Berhad, on February 29, 2008, established a Risk Management Committee, which composes of: * Dato' Syed Sidi Idid bin Syed Abdullah Idid - Chairman; * Dato' Mohd Hanafiah bin Omar - Member; * Encik Mohamed Ridza bin Mohamed Abdulla - Member; and * Encik Adi Azuan bin Abdul Ghani - Member At the same time, the company has appointed Mr. Abdullah Idid as the new member of its Audit Committee. Thus, the company's Audit Committee now composes of: * Encik Mohamed Ridza bin Mohamed Abdulla - Chairman; * Dato' Mohd Hanafiah bin Omar - Member; * Encik Adi Azuan bin Abdul Ghani - Member; and * Dato' Syed Sidi Idid bin Syed Abdullah Idid - Member Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services. The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines. On May 10, 2005, the company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category. On January 16, 2006, the Company entered into a conditional Restructuring Agreement to undertake the Proposed Restructuring Scheme with the intention of restoring itself onto stronger financial footing via an injection of new viable businesses. LITYAN HOLDINGS: Dec. 31 Balance Sheet Upside-Down by MYR87 Mil. ---------------------------------------------------------------- Lityan Holdings Berhad's unaudited balance sheet as of Dec. 31, 2007, went upside down by MYR87.78 million, on total assets of MYR77.19 million and total liabilities of MYR164.98 million. As of December 31, 2007, the company's balance sheet showed strained liquidity with current assets of MYR48.22 million available to pay MYR162.22 of current liabilities coming due within the next twelve months. For the fourth quarter ended December 31, 2007, the company posted a net profit of MYR1.85 million on MYR16.44 million of revenues, as compared with a net loss of MYR9.85 million on MYR10.70 million of revenues in the same quarter of 2006. Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services. The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines. On May 10, 2005, the company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category. On January 16, 2006, the Company entered into a conditional Restructuring Agreement to undertake the Proposed Restructuring Scheme with the intention of restoring itself onto stronger financial footing via an injection of new viable businesses. MANGIUM INDUSTRIES: Bursa Grants Until May 26 to Submit Plan ------------------------------------------------------------ The Bursa Malaysia Securities Berhad had given Mangium Industries Bhd. a time extension of three months or until May 26, 2008, to submit its regularization plan to the Securities Commission and other relevant authorities. In the event the company submits its regularization plans to the Approving Authorities within May 26, Bursa Securities will aw