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 Thursday, March 6, 2008, Vol. 9, Issue 47 Headlines A U S T R A L I A ABC LEARNING: Close To Selling U.S. Assets AUTOMATION SUPPLIES: Members Opt to Shut Down Firm ANGAS SECURITIES: S&P Assigns 'B+/B' Issuer Credit Rating CHRYSLER LLC: Corrects Erroneously Reported US$2.7-Billion Loss CHRYSLER LLC: Will Appeal Bankruptcy Court's Tooling Decision CHRYSLER LLC: February 2008 Sales Down 14%, Fleet Sales Reduced E.S.W. AUSTRALIA: Placed Under Voluntary Liquidation HUTCHISON TELECOMMUNICATIONS: Launched Aussie's First 3G Network KU-RING-GAI: Commences Liquidation Proceedings LIFESTYLE CARE: Placed Under Voluntary Liquidation MACQUARIE FORTRESS: Suffers AU$35 Million Loss ORCHARD ADMINISTRATION: Members Resolve to Close Business RIVERTON GARDENS: Commences Liquidation Proceedings STOWPORT CONTRACTING: To Declare First Dividend on March 12 STUMPLEE PTY: Members to Hear Wind-Up Report on March 10 STYLE IMPORTS: Creditors to Receive Wind-Up Report on March 14 ZINIFEX: Assures No Job Losses in Century Mine C H I N A , H O N G K O N G & T A I W A N CHINA EASTERN: Strategic Investors Quest Continues CHINA EASTERN: China National Responds to Proposal Rejection CHINA MINSHENG: Holds US$10 Million Subprime Investments CIRCUS HOLDINGS: Creditors Meeting Fixed for March 10 FINESTYLE MARITIME: Members & Creditors' Meeting on April 1 JIANGXI COPPER: To Step Up Smelting to Achieve Production Goal KENSON PROPERTIES: Members Final General Meeting on March 18 MID-ASIA: Members Meeting Fixed for March 31 PROFIT CENTURY: Creditors Meeting Fixed for March 31 TEXBLOOM LIMITED: Creditors' Proofs of Debt Due on March 31 UNIWAY ASSETS: Creditors' Proofs of Debt Due on March 31 WEALTH DRAGON: Creditors' Proofs of Debt Due on March 29 XINHUA FINANCE: China Works To Settle Row YAU FUNG TOURS: Members & Creditors' Meeting on March April 1 I N D I A DECCAN AVIATION: Lists Agenda of March 18 Shareholders Meeting ESSAR OIL: Unit Bags E&P Block in Vietnam; To Invest US$60 Mil. HDFC BANK: Shareholders to Consider Centurion Merger on March 27 ICICI BANK: Incurs US$50 Mil. in Investment Losses This Quarter ICICI BANK: Opens First New York Branch PRIDE INTERNATIONAL: Earns US$784.3 Million in 2007 PRIDE INTERNATIONAL: Uncovers Evidence of Bribery QUEBECOR WORLD: Creditors' Committee Taps Mesirow as Advisor QUEBECOR WORLD: Creditors' Panel Wants Jefferies & Co. as Banker I N D O N E S I A ANEKA TAMBANG: 2007 Net Profit Jumps 230% to IDR5.121 Trillion BEARINGPOINT INC: Bags US$115 Million Contract from U.S. Army BERAU COAL: Expects Rise in China Coal Exports GOODYEAR TIRE: Redeems US$650 Million Senior Notes Due 2011 PERUSAHAAN GAS: To Build 3 LNG Receiving Terminals for US1.67BB PERUSAHAAN LISTRIK: Government Delays Launch of Billing System TOBA PULP: Hires Dedy Sutanto as President Commissioner TOBA: Pinnacle Company Completes Tender Offer to Acquire Stake J A P A N ALITALIA SPA: Air France-KLM Eyes Stake in Flight & Ground Units FORD MOTOR CREDIT: R&I Cancels BB- Rating FORD MOTOR: Discloses Plans to Return to Profitability by 2009 FORD MOTOR: February 2008 Sales Decreases 7% to 196,681 JAPAN AIRLINES: S&P Revises Outlook from Negative to Positive JAPAN AIRLINES: R&I Says Pref. Shares Issue Has Little Impact K O R E A ARROW ELECTRONICS: Appoints Michael Long as President & COO ARROW ELECTRONICS: Gail Hamilton Joins Board of Directors BOE HYDIS: PVI To Take Over Production Lines in April SSANGYONG MOTOR: Prosecutors Investigate Alleged Technology Leak M A L A Y S I A AMINVESTMENT BANK: Fitch Puts BB+ Rating on Watch Positive IDAMAN UNGGUL: Triggers Amended Practice Note 17 Criteria MANGIUM INDUSTRIES: Shareholders OK Proposed Disposal of Unit MEGAN MEDIA: Defaults on MYR899.96 Million Banking Facilities SOLUTIA INC: Posts US$208 Mil. Net Loss for Year Ended Dec. 31 SOLUTIA INC: Provides Status of Adversary Proceedings SOLUTIA INC: DuPont Disputes Need to Reexamine BDO's Report N E W Z E A L A N D AHCHAIL MULTICULTURAL: Subject to CIR's Wind-Up Petition EE JAY MARKETERS: Appoints Mark van Rossem as Liquidator EXPRESS CONSTRUCTION: Taps Fatupaito & McCloy as Liquidators LLOYD & STEVENSON: Wind-Up Petition Hearing Set for March 12 RSM NEW ZEALAND: Wind-Up Petition Hearing Set for March 27 SS SERVICE: Appoints Fatupaito & McCloy as Liquidators T EDGECOMBE: Court to Hear Wind-Up Petition on March 17 TANNER PROPERTIES: Faces CIR's Wind-Up Petition TASMAN CLEANING: Subject to CIR's Wind-Up Petition VTL GROUP: Reports NZ$14-Mln Loss in 14 Mos. Ended Aug. 31, 2007 VTL GROUP: Schedules Annual Meeting on March 19 WINGSFIELD LIMITED: Creditors' Proofs of Debt Due on May 14 P H I L I P P I N E S FEDDERS: Court OKs Bidding Procedure of Sale of Units' Assets PHIL. LONG DISTANCE: Net Profit Up 2% to PHP36 Bil. in 2007 S I N G A P O R E ATOP HOLDINGS: Commences Liquidation Proceedings E-FREIGHT CENTRE: Creditors' Proofs of Debt Due on March 30 FLEXTRONICS: To Report 4Q & Fiscal Year 2008 Results on April 29 FLEXTRONICS: To Ramp Up Notebook Production Capacity HERRENKNECHT PIPE: Creditors' Proofs of Debt Due on March 29 LOONG GUAN: Court Enters Wind-Up Order STATS CHIPPAC: Seeks Shareholder Approval of Capital Reduction T H A I L A N D DAIDOMON GROUP: Seeks Until March 11 To File Rehabilitation Plan DAIDOMON GROUP: Faces Delisting in Local Stock Exchange MANAGER MEDIA: May be Delisted from Stock Exchange * Fitch Says Global Airport Credit Quality May Decline in 2008 - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Close To Selling U.S. Assets ------------------------------------------ ABC Learning Centres Ltd. has entered a memorandum of understanding with Morgan Stanley Private Equity for the sale of a 60% interest in its U.S. business, reflecting a value of US$775 million for 100% of the U.S. business. The transaction will result in cash proceeds on completion of about AU$750 million with an additional US$30 million payable after June 30, 2009. ABC Learning CEO Eddy Groves said, "At a multiple of 14.1 times EBITDA for the preceding 12-month period ending 31 December 2007, the sale of a 60% interest allows us to realise significant value from our US business, retain a material ongoing presence in this important market, and substantially strengthen our capital structure. "We continue to believe that the US represents a significant growth-and-return opportunity for ABC. "I am delighted that Morgan Stanley Private Equity will become our strategic partner in the US. "Morgan Stanley Private Equity shares our vision for the business and supports the existing management team to deliver it." ABC Learning has agreed with Morgan Stanley to exclusively negotiate final documentation by March 24, 2008, with completion expected to occur by the end of April. The parties have also agreed that, conditional on completion of the sale transaction, Morgan Stanley will also subscribe for senior notes, convertible at the option of Morgan Stanley into 10% of the fully diluted share capital in ABC (being 11% of undiluted ordinary share capital). Pricing terms of the convertible notes, including the conversion price and the coupon rate, will be agreed, having regard to ABC Learning's pro-forma credit profile and the option value. ABC Learning will use the net proceeds from the sale transaction and the issue of convertible notes to partially repay its senior debt under its syndicated bank facility. The company's existing syndicated bank debt is expected to reduce by AU$750 million. ABC Learning requires the consent of the majority of its banks to proceed with the sale transaction. The company notes that at no point has it been in breach of its banking covenants, nor are these initiatives in response to "any pressure or suggestion" from its banks. Shares in ABC Learning were reinstated after this announcement. About A.B.C. Learning A.B.C. Learning Centres Limited provides childcare services and education. The company operates in Australia, New Zealand, the United States and the United Kingdom. The company's subsidiaries include A.B.C. Developmental Learning Centres Pty Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier Early Learning Centres Pty Ltd, A.B.C. Developmental Learning Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centres Australia Ltd. On September 25, 2006, the company acquired Hutchison Child Care Services Ltd. On September 7, 2006, it acquired The Children's Courtyard LLP. On December 18, 2006, it acquired Busy Bees Group Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. As reported by the Troubled Company Reporter - Asia Pacific on February 29, 2008, the company's Sydney trading last Feb. 26, plunged 43% after a slump in earnings raised concerns it may struggle to repay debt. The drop to AU$2.14 triggered margin calls on stakes held by some directors. Consequently, stock trading was halted as the company entered talks on "indications of interest" for parts of its business. More than 96% of the remaining 21.9 million ABC Learning shares owned by directors, equivalent to 4.6% of stock outstanding, are held in margin lending arrangements that may result in forced sales. AUTOMATION SUPPLIES: Members Opt to Shut Down Firm -------------------------------------------------- Automation Supplies International Pty. Limited's members agreed on Feb. 5, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Henry Kazar to facilitate the sale of its assets. The liquidator can be reached at: Henry Kazar Sims Partners Chartered Accountants 6 Lonsdale Street, Level 1 Braddon ACT 2612 Australia About Automation Supplies Automation Supplies International Pty. Limited operates investment offices. The company is located at Maddington, in Western Australia, Australia. ANGAS SECURITIES: S&P Assigns 'B+/B' Issuer Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services had assigned its 'B+/B' issuer credit ratings to Angas Securities Ltd., a small, niche provider of commercial property and development finance in Australia. The outlook is stable. "The strengths of Angas underpinning the ratings are its very good credit loss record--albeit over a relatively short eight- year operating history--and its exclusive focus on first- mortgage lending that has been conducted according to manageable loan-to-value criteria," Standard & Poor's credit analyst Gavin Gunning said. "Furthermore, the company has experienced acceptable earnings relative to its risk, although its earnings profile lacks depth and diversity given the company's narrow focus and short operating history." The rating is moderated by Angas' capitalization, which is considered weak on a risk-adjusted and an absolute basis, its business concentration in the higher-risk property segment, its undiversified funding profile, and its high concentration in large lending exposures relative to capital. "The stable outlook reflects Standard & Poor's expectation that, in the short-to-medium term, Angas will be able to manage its asset quality within expectations through a continued good credit loss record," said Mr. Gunning. Headline earnings are expected to remain adequate relative to risk, which should assist Angas' internal generation of capital. Upward rating momentum is not anticipated in the medium term, but in the longer term, the ratings may be raised if Angas could continue to grow loans under management while maintaining a good credit loss record and improving other financial metrics. The rating could be lowered if there were to be a deterioration in asset quality resulting in material net charge-offs, or should material funding or liquidity difficulties emerge. About Angas Securities Angas Securities Limited is an Australia-based company whose activities include raising of funds from the public through the issue of debenture securities principally for first mortgage lending, as well as for other investments, including property investment. On May 31, 2007, the Company purchased a housing loan mortgage origination and management business from API Lifestyle Home Loans Pty Ltd. The retail mortgage business operates under the trading name API Home Loans. CHRYSLER LLC: Corrects Erroneously Reported US$2.7-Billion Loss --------------------------------------------------------------- Several media outlets have erroneously reported a loss of approximately US$2.7 billion by Chrysler LLC between Aug. 4, 2007, and Sept. 30, 2007, the company said. In fact, the company continued, from an operating earnings standpoint, Chrysler was profitable during this time period. Also, Chrysler lost significantly less than what was reported during the course of the full year. Chrysler believes any differences are attributable due to U.S. Generally Accepted Accounting Principles versus International Financial Reporting Standards accounting rules. These differences include pension accounting for the UAW settlement and restructuring and purchases accounting. Daimler's Annual Report After Chrysler was taken private by Cerberus Capital Management LP and has stop making its financial statements public, the annual report of former parent and 19.9% shareholder Daimler AG provides a glimpse of Chrysler's loss of EUR1.94 billion or US$2.94 billion in an eight-week period between Aug. 4 and Sept. 30, 2007, Edward Taylor and Josee Valcourt of The Wall Street Journal report. Daimler also disclosed that it gave Tom LaSorda, who is now Chrysler's president and vice chairman, a EUR10.4 million bonus and EUR2.13 million salary as a member of DaimlerChrysler AG board of directors, the Journal says. The Wall Street Journal suggests that these figures may spur disapproval from the United Auto Workers union, which agreed to a cost-saving deal last year to help Chrysler. About Chrysler Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CHRYSLER LLC: Will Appeal Bankruptcy Court's Tooling Decision ------------------------------------------------------------- Chrysler LLC, Chrysler Motors Company LLC, and Chrysler Canada Inc., took an appeal under 28 U.S.C. Section 158(a) before the U.S. District Court for the Eastern District of Michigan from the orders of the Honorable Phillip Shefferly of the U.S. Bankruptcy Court for the Eastern District of Michigan that denies: i) the lifting of the automatic stay to allow Chrysler to regain possession of tooling located in Plastech Engineered Products Inc. and its debtor-affiliates' plants; and ii) the issuance of a preliminary injunction in connection with the proposed recovery of the tooling equipment. As reported in the Troubled Company Reporter on Feb. 22, 2008, Judge Shefferly said in a court opinion that the Debtors needed to keep the tooling equipment to faciliate them in their reorganization. The balancing of interests favored Plastech, the Court said. The Court affirmed the Debtors' contentions that the automatic stay applies to both the tooling paid by Chrysler and the tooling that Chrysler has not paid for. "Even assuming that the Debtor has only a possessory interest in the tooling paid for by Chrysler, that is a sufficient interest by itself to cause the application of the automatic stay," Judge Shefferly said. In addition, the Court was convinced that if Chrysler takes immediate possession of the tooling, the Debtor will not be able to continue to provide parts uninterrupted to its other major customers and therefore any prospect of an effective reorganization will be lost. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CHRYSLER LLC: February 2008 Sales Down 14%, Fleet Sales Reduced --------------------------------------------------------------- Chrysler LLC reported total February 2008 sales of 150,093 units which is 14% below the same period last year. This includes a significant reduction in fleet and reflects the company's ongoing commitment to reduce daily-rental fleet vehicle sales. All sales figures are reported as unadjusted. "While the auto industry is experiencing the impact of slow economic growth, Chrysler LLC February results reflect progress within each brand," Vice Chairman and President Jim Press said. "The positive numbers for Dodge cars, the all-new Chrysler Town & Country and the Jeep(R) Patriot prove our renewed focus on consumer feedback, such as the demand for good fuel economy, is resonating-and translating into sales of our New Day Value Packages. "While becoming a more agile company, we're developing a more personalized relationship with our customers and strengthening collaboration with our dealer partners. It's the sum total of their feedback that will guide the evolution of our dynamic product lineup and really make it a New Day-and a new era-at Chrysler LLC." February sales highlight strong core products like the Dodge Caliber-offering good mileage at a low price. Increased sales of Dodge Caliber (up 10%), and Dodge Avenger (up 60%), demonstrate Chrysler's strong positioning in the all-important car market, offering customers what they are looking for now more than ever-vehicles with high quality, great performance and tremendous value. Chrysler brand truck sales were led by the Chrysler Town & Country, which posted sales of 11,952 units for February, representing a 1% increase versus the same period last year. Chrysler Aspen sales increased 31% with 2,879 units compared with February 2007 when sales were 2,202 units. The all-new Jeep Patriot set a new sales record for the month of February with 5,195 units sold. The vehicle is one of Chrysler's recently introduced models that achieve 28 miles per gallon or better in highway driving. Chrysler LLC and its Dealer Advertising Association launched the New Day Celebration campaign last month in 55 regional markets. Solid February sales of the 12 vehicles featuring New Day Value Packages, including the Dodge Caliber, Dodge Avenger, and Chrysler Sebring-all developed in response to input from customers and dealers-affirm Chrysler's new direction to listen intently, move quickly and offer the best value in the American market. The all-new 2009 Dodge Journey continues to arrive in showrooms in March. Dodge Journey is a global vehicle that meets life's changing demands by offering five or seven passenger seating and a choice of four or six cylinder engines. Dodge Journey arrives to market with a starting U.S. Manufacturer's Suggested Retail Price of US$19,985 (including US$625 destination). The Company finished the month with 436,399 units of inventory, or a 73-day supply. Inventory is down by 11% compared with February 2007 when it was at 492,230 units. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. E.S.W. AUSTRALIA: Placed Under Voluntary Liquidation ---------------------------------------------------- E.S.W. Australia Pty. Ltd.'s members agreed on Feb. 5, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Michael John Morris Smith to facilitate the sale of its assets. The liquidator can be reached at: Michael John Morris Smith Smith Hancock 88 Phillip Street, Level 4 Parramatta, New South Wales 2150 Australia About E.S.W. Australia E.S.W. Australia Pty Ltd operates miscellaneous retail stores. The company is located at Coogee, in New South Wales, Australia. HUTCHISON TELECOMMUNICATIONS: Launched Aussie's First 3G Network ---------------------------------------------------------------- Hutchison Telecommunications (Australia) Limited launched Australia's first 3G network and service 3. Services include E-mail, broadband and mobile web. 3 offers content through its portal Planet 3 including: live and on demand mobile TV, audio and video music tracks and other services like news, sport, finance, weather, location-based classifieds, movie previews, eBay and transport. The radio access assets of the 3G network are shared with Telstra through an infrastructure sharing agreement, with both companies conducting their retail 3G businesses independently of each other. In March 2007, the 3G network was upgraded to HSDPA mobile broadband standard across Sydney, Campbelltown, Wollongong, Melbourne, Werribee, Geelong, Frankston, Brisbane and the Gold Coast, Canberra, Perth and Adelaide. Also in 2007, Hutchison launched X-Series -- a new Internet applications suite, handset range and pricing structure. Hutchison subscriber base continues to climb sharply, rising by 22% in the year ended December 2007. Headquartered in New South Wales, Australia, Hutchison Telecommunications (Australia) Limited -- http://www.hutchison.com.au/-- is engaged in the ownership and operation of wideband code division multiple access (W-CDMA), third-generation (3G) mobile network (branded 3) across the five mainland capital cities and national capital, Canberra; the ownership and operation of a code division multiple access (CDMA) network (branded Orange) mobile in and around Sydney and Melbourne, and a national paging and messaging service under the Orange brand. 3 is part of the global telecommunication operations of Hutchison Whampoa Limited. In February 2006, Hutchison re-branded its CDMA network to 3 CDMA. 3 CDMA provides customer with voice and basic messaging services. 3 also provides a range of paging, messaging and portable information services. The Troubled Company Reporter-Asia Pacific, on Feb. 29, 2008, included in its "Large Companies With Insolvent Balance Sheets" Column Hutchison Telecommunication, with US$1443.69 million in stockholders' equity deficit. The company recorded a AU$759.4-million net loss for the 2006 fiscal year, compared with a AU$547.3-million loss for 2005. KU-RING-GAI: Commences Liquidation Proceedings ---------------------------------------------- Ku-Ring-Gai Animal Hospital Pty. Ltd.'s members agreed on Feb. 6, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Mark Waterhouse to facilitate the sale of its assets. The liquidator can be reached at: Mark Waterhouse Einfeld Symonds Vince Chartered Accountants 55 Market Street, Level 18 Sydney, New South Wales 2000 Australia About Ku-Ring-Gai Ku-Ring-Gai Animal Hospital Pty Ltd provides veterinary services for animal specialties. The company is located at Turramurra North, in New South Wales, Australia. LIFESTYLE CARE: Placed Under Voluntary Liquidation -------------------------------------------------- Lifestyle Care Providers Pty. Ltd.'s members agreed on Jan. 14, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Robert Eugene Murphy and David James Hambleton to facilitate the sale of its assets. The liquidators can be reached at: Robert Eugene Murphy David James Hambleton R.E. Murphy & Co., Chartered Accountants 46 Edward Street, Level 9 Brisbane, Queensland 4000 Australia About Lifestyle Care Lifestyle Care Providers Pty. Ltd. provides management services. The company is located at Shailer Park, in Queensland, Australia. MACQUARIE FORTRESS: Suffers AU$35 Million Loss ---------------------------------------------- The Macquarie Fortress Australia Notes Trust has reported a AU$35 million first-half loss and said there were doubts about its ability to remain a going concern, Sydney Morning Herald says. The listed fund, which is one of three highly geared Macquarie Fortress funds, posted a AU$35.02 million loss for the half year ended Dec. 31, 207, compared to an AU$8.4 million profit in the previous first half. According to the report, the Fortress funds, including a fund listed in New Zealand and an unlisted Australian fund, were hurt by the credit crunch in the US even if they were not directly invested in US subprime mortgage debt. The trustee of the funds, Macquarie Fortress Investments, told Morning Herald that the price volatility in the locally listed trust's portfolio of credit investments was not related to defaults. Instead, volatility was caused by "supply/demand imbalances" in the senior loan market as well as recent interest rate cuts in the US. "The directors continue to view the trust as a going concern and the financial report has been prepared on that basis," Macquarie Fortress said to Morning Herald. "However, there are material uncertainties that may raise doubt about the trust's ability to continue as a going concern. Macquarie Fortress further told Morning Herald that any refinancing of the trust's portfolio would result in a significant increase in funding costs, which would effect interest payments, "if any", of the Fortress Notes. The Macquarie Fortress Australia Notes Trust paid interest to noteholders for the first half of 5.58c per note, up from 5.26c in the previous corresponding period. Macquarie Fortress earlier announced that it had breached loan covenants for the third time this month, forcing it to sell loans at a loss, Morning Herald says. Macquarie Fortress Investments Limited is a wholly owned subsidiary of Macquarie Bank Limited. Macquarie Fortress Investments Limited is the Trustee of the Macquarie New Zealand Fortress Notes Trust. The Trust is engaged in making investments in unlisted notes issued by a Cayman Island entity, the return on which is linked to a leveraged portfolio of the United States dollar denominated senior secured loans. ORCHARD ADMINISTRATION: Members Resolve to Close Business --------------------------------------------------------- Orchard Administration Services Pty. Limited's members agreed on Feb. 5, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Henry Kazar to facilitate the sale of its assets. The liquidator can be reached at: Henry Kazar Sims Partners Chartered Accountants 6 Lonsdale Street, Level 1 Braddon ACT 2612 Australia About Orchard Administration Orchard Administration Services Pty Limited provides business services. The company is located at Maddington, in Western Australia, Australia. RIVERTON GARDENS: Commences Liquidation Proceedings --------------------------------------------------- Riverton Gardens Hotel-Motel (1997) Pty. Ltd.'s members agreed on Jan. 25, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Angela Ann Gaffney to facilitate the sale of its assets. The liquidator can be reached at: Angela Ann Gaffney c/o RSM Bird Cameron 8 St Georges Terrace, 4th Floor Perth, Western Australia 6000 Australia About Riverton Gardens Riverton Gardens Hotel-Motel (1997) Pty Ltd operates hotels and motels. The company is located at Riverton, in Western Australia, Australia. STOWPORT CONTRACTING: To Declare First Dividend on March 12 ----------------------------------------------------------- Stowport Contracting Pty. Ltd. will declare first dividend for its priority creditors on March 12, 2008. Priority creditors are required to file their proofs of debt by March 11, 2008, to be included in the company's dividend distribution. The company's liquidator is: R. G. Shoobridge Deloitte Touche Tohmatsu Chartered Accountants 22 Elizabeth Street Hobart, Tasmania 7000 Australia Telephone:(03) 6237 7000 About Stowport Contracting Stowport Contracting Pty. Ltd. provides business services. The company is located at Stowport, in Tasmania, Australia. STUMPLEE PTY: Members to Hear Wind-Up Report on March 10 -------------------------------------------------------- Robert Caldwell, Stumplee Pty. Ltd.'s appointed estate liquidator, will meet with the company's members at 10:00 a.m. on March 10, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Robert Caldwell Caldwell Business Partners Jetty Village Shopping Centre, Suite 12 361 Harbour Drive Coffs Harbour, New South Wales 2450 Australia About Stumplee Pty. Stumplee Pty. Ltd. is a distributor of burls and wood. The company is located at Gloucester, in New South Wales, Australia. STYLE IMPORTS: Creditors to Receive Wind-Up Report on March 14 -------------------------------------------------------------- P. A. Lucas, Style Imports Pty. Ltd.'s appointed estate liquidator, will meet with the company's members at 11:00 a.m. on March 14, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: P. A. Lucas P. A. Lucas & Co., Chartered Accountants 100 Edward Street, Level 8 Brisbane, Queensland Australia About Style Imports Style Imports Pty Ltd provides business services. The company is located at Underwood, in Queensland, Australia. ZINIFEX: Assures No Job Losses in Century Mine ---------------------------------------------- Zinifex Limited told ABC News that there should not be any job losses at the Century mine in northwest Queensland, Australia, as a result of its announced merger with Oxiana Limited. The friendly deal between the two mining companies will see the new company as the world's second largest zinc producer, ABC News says. Both companies are recommending shareholders support for the deal, the report says. The general manager in Century, John Lamb, told ABC News that 1,200 people are employed at the site and the deal will only mean more opportunities for staff to progress in a larger company. "On the operating mines, particularly the big ones like Century, it's business as usual," Mr. Lamb said to ABC News. "The merger for most of our people is unlikely to change their roles at all." Mr. Lamb added that Century is Zinifex's largest asset and it will still be the largest asset in the combined company, ABC News reports. 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. * * * As reported on Mar 5, 2008, 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. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ CHINA EASTERN: Strategic Investors Quest Continues -------------------------------------------------- China Eastern Airlines Corp. will continue seeking strategic investors to make its air transport business more competitive, Xinhua News Agency reports. The airline company is actively pursuing cooperation opportunities with Shanghai Airlines and Eva Airways Corp. of Taiwan. "Our goal remains unchanged. China Eastern is persistent in bringing in strategic investors to upgrade corporate management, improve capital structure and make the company more competitive," Li Jun, China Eastern's vice-president, told Xinhua News. "It's an evitable option that goes in line with the development trend and requirements of domestic aviation industry." China Eastern rejected a wide-ranging alliance proposal from China National Aviation Corp. (Group) in Feb. 26, a move analysts said could close the door for an alliance between China Eastern and Air China, Xinhua News recalls. Xinhua News also notes that in Jan. 8, China National Aviation successfully blocked China Eastern's proposed sale of 1.88 billion H shares, or a 24% stake, to Singapore Airlines and Lentor Investments, a unit of Singapore government investment arm Temasek Holdings. The recaptilization of China Eastern has caused widespread attention and speculation in China and abroad since it signed a preliminary deal with the Singapore side last September, Xinhua News says. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA EASTERN: China National Responds to Proposal Rejection ------------------------------------------------------------ After days of silence, China National Aviation Corp. (Group) has responded to China Eastern Airlines Corp.' rejection of its offer to buy into the Shanghai-based carrier, Xinhua News Agency reports. A China National source told Xinhua News that it has always been "sincere about the possible establishment of a strategic partnership" with China Eastern, and "hopes the CEA board to study the proposal earnestly and consider it prudently." Earlier reports said that observers believed China Eastern's rejection could close the door for an alliance between China Eastern and Air China Ltd., China's largest airlines by fleet size. Responding to the rejection, China National said the reason why the China Eastern board made such a decision was that the two sides had not yet had the chance to hold wide-ranging and deep discussions on the bid, Xinhua News relates. China National invited China Eastern to discuss every detail of the proposed equity cooperation so as to finalize the related scheme, Xinhua News says. A source with the board of China Eastern's listing arm told Xinhua News that it "is willing to study any sincere bid that conforms with legal procedures and is better than Singapore Airlines offer". But, Xinhua News recalls that in a much earlier statement China Eastern said, "In the whole process of proposal-making and with the communications method, China National has never showed any sincerity and deep and thorough planning for our cooperation". China National also said to Xinhua News that when it prescribed its bidding price, it took into consideration China Eastern's financial status and the possible collaboration effect of the proposed alliance between the two airlines. CNAC believed upon the implementation of the proposal, China Eastern's financial situation would be improved and operation of both companies would be optimized, Xinhua News reports. The Hong Kong-based CNAC is the wholly owned subsidiary of China National Aviation Holding Co., parent of Air China Ltd. About China National China National Aviation Company Ltd., is a Hong Kong-based investment holding company that, through its subsidiaries, is principally engaged in the airline operations, airport ground handling services, airline catering services, logistics and other businesses. The company and its jointly controlled entities operate in three geographical areas, including China mainland, Taiwan and other regions (Macau, Thailand and Philippines). The airline operation business is operated in places in China mainland, Taiwan and other regions. The airline catering business is operated in China mainland. Some of its wholly owned subsidiaries include Air Macau Company Limited, China National Aviation Corporation (Macau) Company Limited, Skylink Global Limited, Kingston International Limited, Queenston International Limited, Serfil Limited, Skyrise Limited, Wington Limited and China National Aviation Logistics Company Limited. About Air China Air China Ltd., is a provider of air passenger, air cargo and airline related services in China. The company has a network of domestic and international routes serving approximately 70 domestic and 36 international destinations. The company operates in four segments: the airline operations segment, which comprises the provision of air passenger and air cargo services; the engineering services segment, providing aircraft engineering services, like aircraft maintenance, repair and overhaul services; the airport terminal services segment, offering ground services that include check-in services, boarding services, premium class lounge services, ramp services, luggage handling services, loading and unloading services, cabin cleaning and transit services, and the others segment, which comprises the provision of air catering services and other airline-related services. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA MINSHENG: Holds US$10 Million Subprime Investments -------------------------------------------------------- China Minsheng Banking Corporation Ltd. said it held US$10 million of securities backed by U.S. subprime loans at the end of last year, Bloomberg News reports. The securities, rated A or higher, represented 0.05% of the company's outstanding bond investments, Bloomberg says, quoting Minsheng Bank during its annual report. The impact on full-year profit was almost "negligible" as interest and payments on the investments are "normal" and ratings are unchanged. Minsheng Bank, founded by 59 private investors including pig- feed tycoon Liu Yonghao, is China's first privately owned bank, Bloomberg notes. The bank expects loan growth to slow to 17% this year from 18% in 2007 as the government clamps down on lending after identifying overheating and inflation as big economic risks. Meanwhile, Lehman Brothers analyst Lucy Feng cut Minsheng Bank's target price to CNY15.85 from CNY17.36 to reflect lower loan growth assumptions due to tight monetary policy in 2008, Bloomberg says. Minsheng Bank, with 327 outlets in China, plans to add about 60 new branches on the mainland this year and set up representative offices in Tokyo, London and Singapore within two years, the bank told Bloomberg. About China Minsheng 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". CIRCUS HOLDINGS: Creditors Meeting Fixed for March 10 ----------------------------------------------------- The creditors of Circus Holdings Limited will have their meeting on March 10, 2008, at Room 602, 447 Lockhart Road, in Hong Kong to hear the liquidator's report on the company's wind- up proceedings and property disposal. The liquidator's name and address were not disclosed. FINESTYLE MARITIME: Members & Creditors' Meeting on April 1 ----------------------------------------------------------- Finestyle Maritime Services Limited will hold a joint meeting for its members and creditors at 11:00 a.m. on April 1, 2008. During the meeting, the company's liquidators, Stephen Lui Yiu Keung and Robert Armor Morris at 18th Floor, Two International Finance Centre, 8 Finance Street, Central, in Hong Kong, will provide the attendees with property disposal and winding-up reports. The company's liquidators can be reached at: Stephen Lui Yiu Keung Robert Armor Morris 18th Floor Two International Finance Centre 8 Finance Street Central, Hong Kong JIANGXI COPPER: To Step Up Smelting to Achieve Production Goal -------------------------------------------------------------- Jiangxi Copper Co. will speed up smelting to redeem lost output caused by the harshest winter weather in five decades, Chairman Li Yihuang told China Knowledge. Mr. Li said the full-year target was set to produce up to 700,000 tons of copper, up 26% from the previous year, to satisfy the surging demand in the world's largest copper consumer, China Knowledge reports. According to the report, the snow crisis in South China was estimated to have reduced production of refined copper by as much as 40,000 tons. Jiangxi Copper has forced to cut smelting capacity and close several mines last month due to a lack of power and transportation delays of raw materials. In 2007, China totally consumed 4.56 million tons copper, accounting for 25.2% of the global consumption, China Knowledge says. Jiangxi Copper Company Limited -- http://www.jxcc.com/-- is an integrated producer of copper in the People's Republic of China. The company's operations consist of copper mining, milling, smelting and refining to produce copper cathode and other related products, including pyrite concentrates, sulphuric acid and electrolytic gold and silver. It also provides smelting and refining services pursuant to tolling arrangements for customers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. KENSON PROPERTIES: Members Final General Meeting on March 18 ------------------------------------------------------------ The members of Kenson Properties Limited will have their final general meeting on March 18, 2008, at Rooms 1621-33, 16th Floor, Sun Hung Kai Centre, 30 Harbour Road, 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: Ng Hoi Yue Herman Rooms 1621-33, 16th Floor Sun Hung Kai Centre 30 Harbour Road, in Hong Kong MID-ASIA: Members Meeting Fixed for March 31 -------------------------------------------- The members of Mid-Asia Union Investment Limited will have their final general meeting on March 31, 2008, at Unit 2006, 20th Floor, One Pacific Place, 88 Queensway, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: Stephen Liu Yiu Keung Robert Armor Morris Unit 2006, 20th Floor One Pacific Place 88 Queensway, in Hong Kong PROFIT CENTURY: Creditors Meeting Fixed for March 31 ---------------------------------------------------- The creditors of Profit Century Finance No. 2 Limited will have their final general meeting on March 31, 2008, at 8th Floor, Gloucester Tower, The Landmark, 15 Queen's Road Central, 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: Iain Fegurson Bruce 8th Floor, Gloucester Tower The Landmark 15 Queen's Road Central Hong Kong TEXBLOOM LIMITED: Creditors' Proofs of Debt Due on March 31 -------------------------------------------------------- The creditors of Texbloom 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. 21, 2008. The company's liquidators are: Au Wing Fai Ng Wai Hong Rooms 903-908 9th Floor Kai Tak Commercial Building 317-319 Des Voeux Road Central, Hong Kong UNIWAY ASSETS: Creditors' Proofs of Debt Due on March 31 -------------------------------------------------------- The creditors of Uniway Assets 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. 18, 2008. The company's liquidators are: Lai Tak Shing Jonathan Chan Yuen Bik 31st Floor, Gloucester Tower The Landmark 11 Pedder Street, Central, Hong Kong WEALTH DRAGON: Creditors' Proofs of Debt Due on March 29 -------------------------------------------------------- The creditors of Wealth Dragon Trading Limited are required to file their proofs of debt by March 29, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 15, 2008. The company's liquidator is: Chan Wing Kit Flat A, 16th Floor United Centre 95 Queensway, Hong Kong XINHUA FINANCE: China Works To Settle Row ----------------------------------------- China will work within World Trade Organization rules to settle complaints that foreign financial information providers are being unfairly treated, Shanghai Daily reports. The European Union and the U.S. complained to the WTO that foreign information suppliers like the Reuters Group, Dow Jones and Bloomberg are unfairly treated in China. In 2006, China introduced rules requiring foreign data providers to run their business through the Xinhua news agency, the EU and the US told Shanghai Daily. It was against WTO principles that Xinhua was both the judge and an industry player, they added. "As a WTO member, China respects the choice of other WTO members," China's Ministry of Commerce said on its Website. "China will seriously study the consultation request and deal with it according to WTO procedures." Under WTO rules, both sides should try to resolve the complaint within 60 days, Shanghai Daily notes. Otherwise, the EU and the US can ask the WTO to establish an investigative panel. "Xinhua is a news agency. Unlike the government, it cannot take restrictive actions or measures," said Liu Binjie, the director of China's General Administration of Press and Publications, as quoted by Shanghai Daily. About the Company Xinhua Finance Limited is China's premier financial information and media service provider and is listed on the Mothers Board of the Tokyo Stock Exchange (symbol: 9399) (OTC ADRs: XHFNY). Bridging China's financial markets and the world, Xinhua Finance's proprietary content platform, comprising Indices, Ratings, Financial News, and Investor Relations, serves financial institutions, corporations and re-distributors worldwide. Through its subsidiary Xinhua Finance Media Limited, XFL leverages its content across multiple distribution channels in China including television, radio, newspaper, magazine and outdoor media. Founded in November 1999, XFL is headquartered in Shanghai, with offices and news bureaus spanning 11 countries worldwide. * * * Moody's Investors Service upgraded Xinhua Finance Limited's corporate family rating and senior unsecured bond rating to B1 from B2. This concludes the review for possible upgrade, which began on March 15, 2007. Moody's said the outlook for both ratings is stable. YAU FUNG TOURS: Members & Creditors' Meeting on March April 1 ------------------------------------------------------------- Yau Fung Tours & Transportation Company Limted will hold a joint meeting for its members and creditors at 11:00 a.m. and 11:30 respectively, on April 1, 2008. During the meeting, the company's liquidator, Leung Mun Yee Ruby at 5th Floor, Ho Lee Commercial Building, 38-44 D'Aguilar Street, Central, in Hong Kong, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Leung Mun Yee Ruby Ho Lee Commercial Building 38-44 D'Aguilar Street Central, in Hong Kong ========= I N D I A ========= DECCAN AVIATION: Lists Agenda of March 18 Shareholders Meeting -------------------------------------------------------------- As previously reported by the Troubled Company Reporter-Asia Pacific, Deccan Aviation Ltd. scheduled an Extraordinary General Meeting of its members on March 18, 2008. Deccan Aviation said that during the meeting, it will seek the shareholders' approval for further issue of capital, increase in authorized share capital, and consequential amendments to the Memorandum of Association. In an update, Deccan Aviation listed the specific businesses the shareholders will transact on March 18. According to the carrier, the shareholders will consider approving the board of directors' proposal to: -- raise INR1,600 crore through the issuance or allotment of securities in the domestic or foreign market. -- increase the company's authorized share capital from INR150 crore to INR500 crore. Bangalore, India-based Deccan Aviation Limited -- http://www.deccanair.com/-- is a charter aviation company in the private sector. Deccan Aviation provides company charters, tourism, medical evacuation, off-shore logistics and a host of other services. In the financial year ended June 30, 2007, Deccan Aviation reported a net loss of INR4.2 billion, up 23% from the INR3.41- billion loss incurred in FY 2006. ESSAR OIL: Unit Bags E&P Block in Vietnam; To Invest US$60 Mil. --------------------------------------------------------------- Essar Oil Ltd.'s proposed subsidiary Essar Exploration & Production Ltd, Mauritius, has been awarded an Offshore block in the Song Hong basin, Vietnam, by the Government of Vietnam. The block was offered under the recent Licensing Round offering 7 offshore blocks. Admeasuring approximately 5925 sq km, it is a shallow water block with average water depth of 60 to 70 meters, Essar Oil relates. According to the company, the minimum work program for the block envisages detailed geological and geophysical studies, reprocessing of selected existing 2D seismic data, acquisition, processing and interpretation of fresh 3D seismic of 1000 sq km, and drilling of two exploratory wells with 3500 m target depth. The exploration phase is estimated to last five years and the investment for this program will be approximately US$60 million. As previously reported by the Troubled Company Reporter-Asia Pacific, Essar Oil has decided to consolidate its upstream exploration production activities under the proposed unit. The move is aimed at building a strong fully integrated oil company having upstream, refining, and downstream marketing activities. Currently, the company is still in the process of consolidating the activities. The company says that after the exercise, it will have eight Oil & Gas blocks and one Coal Bed Methane block. This includes onshore blocks in Madagascar; an offshore block in Nigeria; on shore block in Mehsana, Gujarat; a Coal Bed Methane block in Raniganj, West Bengal; the offshore field Ratna & R Series and two onshore blocks in Assam. About Essar Oil Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. HDFC BANK: Shareholders to Consider Centurion Merger on March 27 ---------------------------------------------------------------- HDFC Bank Ltd.'s shareholders will hold an an Extraordinary General Meeting on March 27, 2008, to consider approving the proposed merger between the bank and Centurion Bank of Punjab Ltd. The Scheme of Amalgamation between the two banks, among others, proposes for a 1:29 share swap ratio -- one equity share of INR10 each of HDFC Bank for every 29 shares of INR1 each held in Centurion Bank of Punjab. The ratio was determined by by Ernst & Young Pvt. Ltd. and M/s. Dalal & Shah, Chartered Accountants in their joint valuation report. After due diligence, HDFC Bank's board of directors and that of Centurion Bank reaffirmed the swap ratio . Shareholders will also consider, at the meeting, approving the issue , on preferential basis, 2,62,00,220 equity shares and/or other instruments (e.g., warrants convertible into equity shares) at INR1,530.13 to: -- Housing Development Finance Corporation Ltd., -- HDFC Investments Ltd and/or HDFC Holdings Ltd., and/or -- Home Loan Services India Private Ltd. HDFC Bank's board proposed the preferential issue to maintain its promoter's shareholding percentage in the bank. On March 27, the shareholders are also scheduled to give their accord on the proposed increase of HDFC Bank's Authorised Share Capital from INR450,00,00,000 divided into 45,00,00,000 equity share of INR10 each, to INR550,00,00,000 divided into 55,00,00,000 equity shares of INR10 each, ranking pari-passu with the existing equity shares issued by the bank. Headquartered in Mumbai, India, HDFC Bank Limited -- http://www.hdfcbank.com/-- is a private sector bank that offers a range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank operates in three segments: retail banking, wholesale banking and treasury services. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking segment provides loans and transaction services to corporate and institutional customers. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 22, 2008, Standard & Poor's Ratings Services assigned these ratings to HDFC Bank's proposed debt issues under the US$1-billion medium-term notes program: -- 'BB+' rating to the lower Tier II subordinated notes to be issued; and -- 'BB' rating to the upper Tier II subordinated and hybrid Tier I notes to be issued. ICICI BANK: Incurs US$50 Mil. in Investment Losses This Quarter --------------------------------------------------------------- ICICI Bank Ltd. Joint Managing Director Chanda Kochhar said that the bank incurred US$50 million of investment losses this quarter in addition to the US$70 million provided for in the prior quarter. According to various reports, the government said ICICI Bank lost US$264 million on account of the sub-prime crisis. Bloomberg News quoted Junior Finance Minister Pawan Kumar Bansal as saying, '"Following the subprime crisis overseas, ICICI Bank's overseas operations had reported marked-to-market losses of [US]$264.34 million on account of its exposure to credit derivatives and investments as on" Jan. 31, 2008." The bank doesn't have direct exposure to any sub-prime assets, moneycontrol.com quoted Ms. Kochnar as saying in reaction to the statement. At the current quarter, the bank incurred market-to- market loss of US$50 million from investments in Indian corporates, Ms. Kochnar explained. According to Reuters, the Joint Managing Director further added, "The rest of the amount that is calculated is actually notional and not going to hit the profit and loss account." Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. ICICI BANK: Opens First New York Branch --------------------------------------- ICICI Bank Limited has inaugurated its New York branch in midtown Manhattan. This is consequent to the bank's approval from the U.S. regulators to commence operations as a Federal branch in New York City. The New York branch, subject to applicable guidelines, will offer a suite of banking services including working capital, acquisition finance, trade service and treasury solutions to corporates and savings products to qualified individuals. K. V. Kamath, Managing Director and CEO, ICICI Bank Limited, said, "India's growth momentum and its trade relationship with U.S. has reached an inflexion point. ICICI Bank's entry into the U.S. market provides it with a great platform to service the various opportunities arising from this paradigm shift." Sonjoy Chatterjee, Executive Director, responsible for Corporate & International Banking, at ICICI Bank Limited said, "The New York branch completes our strategy to be present across all major financial centres. Our initial focus will be on corporate cross border opportunities and the local banking needs of Indians coming to work in the U.S. This is an exciting period for the Bank as it pursues its aspiration to be a truly global bank." The branch is well positioned to channel investment activities of Indian companies in the U.S. and vice-versa of U.S. companies in India. The bank is simultaneously planning to leverage its presence in New York to significantly ramp up its India based NRI services to Non-Resident Indians residing in the U.S. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. PRIDE INTERNATIONAL: Earns US$784.3 Million in 2007 --------------------------------------------------- Pride International Inc. reported net income of US$135.0 million for the three months ended Dec. 31, 2007, compared to net income of US$68.9 million for the same period in 2006. Results for the fourth quarter of 2007 included income from discontinued operations of US$17.3 million primarily representing three tender-assist rigs that the company agreed to sell in August 2007 for US$213 million in cash. The sale of the three units was completed during the first quarter of 2008. In the fourth quarter of 2006, income from discontinued operations was US$36.9 million. For the full year of 2007, net income was a record US$784.3 million. The results reflected a gain of US$268.6 million resulting from the sale of the company's Latin America Land and E&P Services segments in August 2007. Cash flow from operating activities totaled US$685.0 million for the 12 months ended Dec. 31, 2007, while capital expenditures were US$656.4 million, including US$315.9 million invested in two advanced capability, ultra-deepwater drillships currently under construction. The company expected capital expenditures for the 12 months ended Dec. 31, 2008 to be US$995 million, with an estimated US$610 million relating to the ultra-deepwater drillship construction projects, including a third project announced in January 2008. Total debt at Dec. 31, 2007 was US$1,191.5 million, while net debt (total debt less cash and cash equivalents of US$890.4 million) was US$301.1 million. Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., stated, "We achieved record financial performance in 2007, with continued excellent operational execution and safety results. Equally important, and specific to our transition to a pure focus offshore drilling company, we achieved a number of strategic initiatives during 2007 and early 2008, including the disposal of approximately US$1.3 billion of non-strategic assets and the addition of three ultra-deepwater drillships currently under construction, which are expected to be available in 2010 and 2011. With the three projects, the company has now committed approximately US$2.8 billion since 2005 to the expansion of its deepwater presence. In addition, we have secured attractive, multi-year contracts on two of our new drillships. "We believe our investments in the deepwater market sector are timely, as we continue to witness exceptional activity levels with growing evidence that suggests the strong industry demand for deepwater capacity could remain well beyond 2010. Since the beginning of 2008, we have secured or extended contracts for four rigs representing revenues in excess of US$3.3 billion, inclusive of performance bonus opportunities, and totaling 22 rig years. With the recent contract extensions for the semisubmersible rigs Pride Rio de Janeiro and Pride Portland, we now have earnings visibility to 2017 and our total backlog of contracts is approaching a record US$8 billion, before performance bonus opportunities, representing an estimated 140 percent of our current market capitalization. This revenue backlog and the resulting expected cash flow represents a solid financial base to support further growth initiatives and offers the company valuable flexibility as we evaluate and execute strategies that increase shareholder value." Offshore Drilling Segment Results The company's Offshore Drilling Segment reported revenues for the three months ended December 31, 2007 of US$473.8 million, compared to US$509.7 million in the third quarter of 2007, while earnings from operations were US$202.3 million, compared to US$212.2 million over the same comparative period. Results for the quarter were negatively impacted by planned out-of-service time, repairs and maintenance involving several rigs in the company's deepwater, midwater and jackup fleets, resulting in a slight decline in fleet utilization to 72 percent in the fourth quarter of 2007 from 75 percent in the previous quarter of 2007. The earnings decline was partially offset by lower operating costs, which fell to US$242.9 million in the fourth quarter of 2007, from US$250.4 million in the third quarter of 2007. The three percent decline was attributable to reduced activity in both the company's jackup rig fleet, resulting in part from the mobilizations of two jackup rigs to Mexico from the U.S. Gulf, and the midwater rig fleet, resulting from shipyard programs on two rigs. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. PRIDE INTERNATIONAL: Uncovers Evidence of Bribery ------------------------------------------------- Pride International Inc. has found evidence that company officials, from 2001 through 2005, made improper payments to government officials of some countries, including Mexico and, Venezuela, to handle customs, immigration and tax issues, published reports say. According to a U.S. Securities and Exchange Commission filing, the payments were used to clear jack-up rig and equipment through customs in Mexico and to get extensions on drilling contracts in Venezuela, Bloomberg News reports. The Venezuelan and Mexican payments amounted to less than US$1 million. Tom Fowler of Houston Chronicle relates that the company also discovered evidence suggesting that payments totaling less than US$2 million were directly or indirectly made from 2001 to 2005 to government officials in Saudi Arabia, Kazakhstan, Brazil, Nigeria, Libya, Angola, and the Republic of the Congo. Reports say that Pride's management and the audit committee deemed that senior operations management knew or should have known the improper payments. The company's former COO quit his job in 2006, and will stay as a worker during the investigation to assist inquiries and answer questions. Others have been terminated, resigned, or placed on leave. The company would likely face fines, and civil and criminal penalties Civil penalties under anti-bribery provisions; and fines and sanctions from foreign jurisdictions, reports state. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. QUEBECOR WORLD: Creditors' Committee Taps Mesirow as Advisor ------------------------------------------------------------ The Official Committee of Unsecured Creditors in the bankruptcy case of Quebecor World Inc. and its debtor-affiliates seeks permission from the U.S. Bankruptcy Court for the Southern District of New York to retain Mesirow Financial Consulting, LLC, as its financial advisors, nunc pro tunc to Feb. 1, 2008. According to Madeleine Fequeire, director of Abitibi- Consolidated Sales Corp. and co-chairperson of the Committee, the panel needs assistance in collecting and analyzing financial and other information in relation to the Debtors' chapter 11 cases. Mesirow is a financial services firm headquartered in Chicago, and is a primarily employee-owned, private company with more than 1,100 employees working across the USA and Puerto Rico. As financial advisor to the Committee, Mesirow is expected to: (a) review reports or filings required by the Court or the Office of the United States Trustee, including schedules of assets and liabilities, statements of financial affairs and monthly operating reports; (b) review and analyze legal entity relationships, including analyzing issues, which may be raised regarding substantive consolidation and accounting for intercompany transactions and balances; (c) review the Debtors' financial information, including analyzing cash receipts and disbursements, financial statement items and proposed transactions for which Bankruptcy Court approval is sought; (d) review and analyze report regarding cash collateral and any debtor-in-possession financing arrangements and budgets; (e) evaluate potential employee retention and severance; (f) assist in identifying and implementing potential cost containment opportunities; (g) assist with identifying and implementing asset redeployment opportunities; (h) analyze assumption and rejection issues regarding executory contracts and leases; (i) review and analyze the Debtors' proposed business plans and their business and financial condition generally; (j) review and critique the Debtors' financial projections and assumptions; (k) assist in preparing documents necessary for confirmation; (1) advise and assist the Committee in negotiations and meetings with the Debtors, the bank lenders and other stakeholders; (m) advise on the tax consequences of proposed plans of reorganization; (n) assist with the claims resolution procedures, including analyses of creditors' claims by type and entity; (o) provide litigation consulting services and expert witness testimony regarding confirmation issues, avoidance actions or other matters; and (p) provide any other functions as may be requested by the Committee or its counsel to assist the Committee in the Debtors' Chapter 11 cases. Mesirow's current normal and customary hourly rates are: Level Hourly Rates ----- ------------ Senior Managing Director, Managing Director and Director $650 - $690 Senior Vice-President $550 - $620 Vice President $450 - $520 Senior Associate $350 - $420 Associate $190 - $290 Paraprofessional $150 The Committee wants the Debtors to indemnify Mesirow from liabilities and claims related to its engagement, except those arising from the firm's gross negligence and willful misconduct. Leon Szlezinger, managing director of Mesirow, says that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, and does not hold or represent any interest adverse to the Debtors' estates or of any class of creditors or equity security holders. The firm can be reached at: Leon Szlezinger, Managing Director Mesirow Financial Consulting, LLC 350 North Clark Street Chicago, IL 60610 Tel: (800) 453-0600 http://www.mesirowfinancial.com/ About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of $5,554,900,000, total liabilities of $3,964,800,000, preferred shares of $175,900,000, and total shareholders' equity of $1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related $600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Creditors' Panel Wants Jefferies & Co. as Banker ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in the bankruptcy case of Quebecor World Inc. and its debtor-affiliates seeks permission from the U.S. Bankruptcy Court for the Southern District of New York to employ Jefferies & Company, Inc., as its investment banker, nunc pro tunc to Feb. 5, 2008. The Committee believes that the services of an investment banker are necessary and appropriate to enable it to evaluate the complex financial and economic issues raised by the Debtors' reorganization proceedings and to effectively fulfill its statutory duties. Madeleine Fequeire, director of Abitibi- Consolidated Sales Corp. and co-chairperson of the Committee, says that the Committee chose Jefferies because of the firm's global expertise in providing investment banking services to debtors and creditors in restructurings and distressed situations. Jefferies & Company, Inc., is an investment banking firm with its principal office located at 520 Madison Avenue, 12th Floor in New York. Together with its subsidiaries, Jefferies Group has approximately 2,500 employees in 30 offices around the world. Under an engagement letter dated Feb. 5, 2008, Jefferies is expected to: (a) become familiar with and analyze the Debtors' business, business plan operations, assets, strategic plan, financial condition and prospects; (b) provide a valuation analyses of the Debtors if requested, the form of which will be as agreed upon by Jefferies and the Committee, and provide expert testimony relating to any valuation; (c) advise the Committee on the current state of the restructuring and capital markets; (d) assist and advise the Committee in examining and analyzing any potential or proposed strategy for restructuring or adjusting the Debtors' outstanding indebtedness or overall capital structure, whether pursuant to a plan of reorganization, capital raise, M&A transaction, a sale of assets or equity under section 363 of the Bankruptcy Code, a liquidation, or otherwise, assisting the Committee in developing its own strategy for accomplishing a restructuring; (e) assist and advise the Committee in evaluating and analyzing the proposed implementation of any restructuring, including the value of the securities, if any, that may be issued under any plan of reorganization; and (f) render other investment banking services as may from time to time be agreed upon by the Committee and Jefferies, including providing expert testimony on valuation, and other expert testimony and investment banking support related to DIP and exit financing, M&A and asset sale processes. Jefferies will charge a $150,000 monthly fee. The firm will also seek a $3,500,000 transaction fee, which will be earned in full upon substantial consummation of a chapter 11 plan that is supported by the Committee. Jefferies will credit 50% of all monthly fees paid in excess of $900,000 against the transaction fee. Jefferies will seek reimbursement of all out-of-pocket expenses. The Committee wants the Debtors to indemnify Jefferies from liabilities and claims related to its engagement, except those arising from the firm's gross negligence and willful misconduct. Steven Strom, managing director of Jefferies, says that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, and does not hold or represent any interest adverse to the Debtors' estates or of any class of creditors or equity security holders. The firm can be reached at: Steven Strom, Managing Director Jefferies & Company, Inc. 520 Madison Avenue, 12th Floor New York, New York 10022 Tel; (212) 284-2300 http://www.jefferies.com/ About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the $400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related $600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. ================= I N D O N E S I A ================= ANEKA TAMBANG: 2007 Net Profit Jumps 230% to IDR5.121 Trillion -------------------------------------------------------------- PT Aneka Tambang Tbk's 2007 net profit jumped 230% to IDR5.121 trillion from a year earlier on higher sales, Antara News reports. According to the report, the company's sales climbed 1135 to IDR12.008 trillion in 2007 from IDR5.629 trillion the year before. The company's operating profit jumped 168% to IDR4.65 trillion from IDR1.737 trillion in 2006, the report notes. In 2007, Antam allocated 40% of its net profit to pay a dividend of IDR325.58 per share, Antara adds. PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 17, 2008, Moody's Investors Service has upgraded PT Aneka Tambang (Persero) Tbk's corporate family rating to Ba3 from B1. This concludes the review for possible upgrade which commenced on October 22, 2007. On Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long-term corporate credit rating on Indonesian state-owned miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. BEARINGPOINT INC: Bags US$115 Million Contract from U.S. Army ------------------------------------------------------------- BearingPoint Inc. has been awarded a contract to support the U.S. Army Medical Research and Materiel Command (MRMC), along with eight other firms. BearingPoint's contract is for one year with four annual options, and has a maximum first year value of US$21.7 million and an initial five year ceiling of US$115 million. The MRMC's mission is to deliver the best possible medical solutions to protect, treat and heal U.S. service members. BearingPoint will support this mission through proven enterprise resource planning (ERP) and project management competencies focused on the following areas: * medical research and logistics * information technology * product support * scientific and technological assessment support The majority of the initial contract work will be performed at Fort Detrick, Md., where MRMC is headquartered. BearingPoint currently supports MRMC in a variety of ways including advising MRMC on how best to meet certain requirements mandated by the Base Realignment and Closure Commission, and Oracle system implementations. "We're proud of our ongoing work for the Army, providing world- class medical and technology consulting services," said Roger Foxhall, managing director for BearingPoint's Defense Healthcare team. "We have the personnel and the track record to help MRMC successfully meet its military medical readiness objectives." Headquartered in McLean, Virginia, BearingPoint Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations including in Indonesia, Australia, Austria, China, India, Japan, Mexico, Portugal, Singapore and Thailand. * * * As reported in the Troubled Company Reporter-Latin America Dec. 11, 2007, Moody's Investor Service confirmed BearingPoint Inc.'s B2 corporate family rating and assigned a negative rating outlook. The rating agency also downgraded the company's US$250 million Series A Subordinated Convertible Notes to Caa1 from B3 (LGD5, 86%) and US$200 million Series B Subordinated Convertible Notes to Caa1 from B3 (LGD5, 86%). BERAU COAL: Expects Rise in China Coal Exports ---------------------------------------------- PT Berau Coal expects to increase it china coal export to due to surging demand, Dow Jones Newswires reports citing Marketing Director Michiaki Furusho. Mr. Furusho told the news agency that the company will produce about 15 million (metric) tons this year from 12 million tons (in 2007) and export about 60% of it, same as last year. Gurdeep Singh of Dow Jones writes that Wang Xianzheng, deputy director of the State Administration of Work Safety, said China may see seasonal and regional coal shortages this year, with coal prices likely to stay at high levels. His comments add to concerns that parts of China will suffer blackouts if power companies can't secure enough supplies to run their plants at maximum capacity, the same report relates. China is still recovering from a power crisis after snowstorms brought down power lines and prevented delivery trucks from moving coal supplies around the country, the report adds. About Berau Coal Headquartered in East Kaliman, PT Berau Coal -- http://www.beraucoal.co.id/-- is Indonesia's fifth largest producer and exporter of thermal coal. It operates three active mines at a single site in East Kalimantan. It has estimated resources of 654.2 million tons with probable reserves estimated at 61.6mt and proven mineable reserves of 127.6mt. The Troubled Company Reporter - Asia Pacific reported on Feb. 7, 2008, Fitch Ratings has affirmed PT Berau Coal's 'B+' Long-term foreign and local currency Issuer Default Ratings, and 'A(idn)' National Long-term rating. The Outlooks for all ratings remain Stable. At the same time, Fitch affirmed the 'B+' senior unsecured rating of Berau's US$325 million senior notes due in 2011. On Dec. 27, 2006, that Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to PT Berau Coal (Berau), a coal mining company in Indonesia. The outlook is stable. At the same time, Standard & Poor's assigned its 'B' rating to the US$325 million guaranteed senior secured notes issued by Berau's wholly owned subsidiary, Empire Capital Resources Pte. Ltd. The notes are unconditionally and irrevocably guaranteed by Berau. On Dec. 15, 2006, Moody's Investors Service assigned a final B1 corporate family rating to PT Berau Coal. At the same time Moody's assigned a final B1 rating to the US$325 million bonds issued by Empire Capital Resources Pte Limited and guaranteed by Berau. This follows the completion of a US$325 million bond issuance, consisting of US$100 million five-year amortizing senior secured floating rate notes and US$225 million five-year bullet senior secured fixed rate bonds. Moody's said the rating outlook is stable. GOODYEAR TIRE: Redeems US$650 Million Senior Notes Due 2011 ----------------------------------------------------------- The Goodyear Tire & Rubber Company has completed the redemption of its outstanding US$650 million of senior secured notes due 2011. The redemption will result, as previously indicated, in annualized interest expense savings of approximately US$75 million to US$80 million, of which about US$65 million will be realized in 2008. "Eliminating this high-cost debt is an important step in our debt reduction plan," said Goodyear's vice president and treasurer, Damon J. Audia. "Since January 2007, we have removed more than US$3 billion in debt from our balance sheet." The senior secured notes were comprised of US$450 million of fixed rate notes, which bore interest at 11.25%, and US$200 million of floating rate notes, which bore interest at LIBOR plus 825 basis points. Mr. Audia also confirmed the company's previously announced intention to repay US$100 million in 6 3/8 % notes when they mature on March 17, 2008. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear's operations are located in Argentina, Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica, Peru, Russia, among others. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. The ratings still apply to date. PERUSAHAAN GAS: To Build 3 LNG Receiving Terminals for US1.67BB --------------------------------------------------------------- PT Perusahaan Gas Negara is planning to build three liquified natural gas (LNG) receiving terminals at a combined cost of US1.67 billion, Antara News reports, citing Company President Sutikno. According to the report, the company will build one LNG receiving terminal in West and East Java, and in North Sumatra's town of Medan, which will cost approximately US$650 million, US574 million, and US446 million, respectively. The West Java terminal, the report relates, will be build in three stages -- the first stage with a capacity to store 200 million standard cubic feet per day of gas is expected to be completed in 2012. The second stage with the same capacity is expected to be completed in 2018, while the third stage with a capacity to store 400 mmscfd is expected to be completed in 2024, the same report notes. Antara reports that the West terminal will be be constructed in two stages -- the first stage with a capacity to store 200 mmscfd of gas is expected to be completed in 2011 and the second stage with a capacity of 200 mmscfd would be finalized in 2017. Moreover, the last terminal in North Sumatra's town of Medan will have a capacity to store 200 mmscfd of gas, and is expected to start commercial operations in 2011, pending the completion of a gas pipeline linking the towns Duri and Medan, the report says. Mr. Sutikno told the news agency that the company plans to buy gas from the Bontang LNG project in East Kalimantan as well as West Papua's Tangguh LNG project, which will be piped to the above mentioned LNG receiving terminals. Sutikno also said PGN expects its gas sales volume to hit 716 mmscfd this year compared to 413 mmscfd at the end of last year, Antara relates. Antara recounts that PGN recently secured contracts to purchase gas from 15 producers, including Pertamina, ConocoPhilips, Lapindo Brantas, BP Muara Karang, Kodeco, Santos Ltd and Husky Oil, with a total volume of 1,063.3 mmscfd. Mr. Sutikno expects the new contracts to begin supplying gas from 2010, the same reports adds. About Perusahaan Gas Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk -- http://www.pgn.co.id/-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or- pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 26, 2007, that Standard & Poor's Ratings Services has raised its corporate credit ratings on PT Perusahaan Gas Negara (Persero) Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable. At the same time, Standard & Poor's has raised the rating on the senior unsecured debt issued by PGN Euro Finance 2003 Ltd. (guaranteed by PGN) to 'BB-' from 'B+'. On Jan. 18, 2007, Moody's Investors Service affirmed the Ba2 corporate family rating of PT Perusahaan Gas Negara (Persero) Tbk. At the same time, Moody's affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The ratings outlook is stable. This affirmation followed the recent announcement of a delay in the South Sumatera West Java gas commercialization. On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. PERUSAHAAN LISTRIK: Government Delays Launch of Billing System -------------------------------------------------------------- PT Perusahaan Listrik Negara has not implemented the 'progressive rate bill' originally planned to take effect this month, various reports say. According to The Post, the Indonesian government ordered the postponement of the system. Purnomo Yusgiantoro, energy and mineral resource minister, said the government has to familiarize the public first before the official launch, the same report relates. Under the new policy, Tempo Interactive explains, electricity consumers who use above 80% of the standard amount-set by the government-will be charged a more expensive tariff, 1.6 times the normal tariff. However, customers will enjoy 20% discount of electricity bill if their use is less than 80% of the standard, Tempo notes. Mr. Purnomo told Tempo that the policy was aimed at directing the subsidy to reach the right target. It is also estimated to help the government save as much as IDR