T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, March 7, 2008, Vol. 9, Issue 48 Headlines A U S T R A L I A CAMDEN SHEET: Liquidator to Present Wind-Up Report on March 11 CHRYSLER: Can Have Unlimited Access to Daimler AG's Technology CUMBERLAND PAINTING: Final Meeting Slated for March 14 GAZELLE PHOTOGRAPHICS: Members & Creditors' Meeting on March 14 GREG SHAW: Final Meeting Slated for March 14 HIGH RISE: Final Meeting Slated for March 11 INSURANCE TECHNICAL: Commences Liquidation Proceedings NORTHERN BEACHES: Placed Under Voluntary Liquidation PI DIRECT: To Declare First Interim Dividend on April 8 RON H ALLARS: Members to Receive Wind-Up Report on March 31 SELMON OYSTERS: Members Resolve to Liquidate Business WOJO LIMITED: Members to Receive Wind-Up Report on April 29 C H I N A & H O N G K O N G & T A I W A N AMERON (HONG KONG): Members Meeting Fixed for March 31 BERRY PLASTICS: B. Scheu Takes Helm at Rigid Closed Top Division CROWN WORLDWIDE: Moody's Puts Ba2 Ratings on Proposed Notes FAR EAST REFFRACTORIES: Members Meeting Fixed for March 31 HEGEL LIMITED: Members Meeting Fixed for March 31 IIYAMA HONG KONG: Members & Creditors To Meet on April 2 KINGSMILL NUTRACEUTICAL: Commences Liquidation Proceedings LANANG INVESTMENTS: Commences Liquidation Proceedings ONE CREATOR: Members Meeting Fixed for April 2 PROFIT (CHINA-H.K.): Creditors Meeting Fixed for March 25 POLIMIDE PLASTIC: Members Meeting Fixed for March 25 PROMITEX LIMITED: Creditors Meeting Fixed for March 17 SUNCOLE LIMITED: Members Meeting Fixed for April 2 TAILOR PLUS: Commences Liquidation Proceedings TECFORM LIMITED: Members Meeting Fixed for April 2 I N D I A AES CORP: Defaults on Debt Facilities due to Misrepresentation EXIDE TECHNOLOGIES: Moody's Affirms Caa1 Rating; Outlook Pos. ICICI BANK: Says No Material Exposure to U.S. Sub-Prime Credit QUEBECOR WORLD: WEB Printing Backs Suppliers' Objections QUEBECOR WORLD: Reaches Settlement with Utility Providers QUEBECOR WORLD: Wants Banc of America Aircraft Lease Rejected TATA MOTORS: Presents 4 Vehicles Including Nano at Geneva Show TATA MOTORS: Won't Flip Jaguar, Ratan Tata Says TATA MOTORS: To Raise US$3 Bil. for Jaguar-Land Rover Purchase I N D O N E S I A BANK INT'L: Government Denies China Bank's Takeover Bids GOODYEAR TIRE: Fitch Lifts Issuer Default Rating to BB- LIPPO KARAWACI: Bosowa Group Acquires Hotel Imperial for US$17MM MEDCO ENERGI: to Purchase Natuna Shares MEDCO ENERGI: Discloses Gas Flow Incident in Sembakung Block * INDONESIA: European Union to Discuss Flight Ban in July J A P A N ALITALIA SPA: Lazio Court Says Exclusive Sale Talks Legitimate DELPHI CORP: Court Extends Lease Decision Deadline to March 31 DELPHI CORP: Court Extends Deadline to Remove Civil Actions K O R E A ACTUANT CORP: Acquires Superior Plant Services for US$57 Million KENERTEC: Converts Third Convertible Bonds into Shares KOREA EXPRESS: Investor Sells 3.43% Stake MIJU MATERIAL: Declares Annual Cash Dividend M A L A Y S I A ELECTRONIC DATA: M. Blackburn Replaces M. Koehler as EMEA Head PAXELENT CORP: Trading of Securities to be Suspended on March 12 PECD BERHAD: Triggers Practice Note 17 Criteria SOLUTIA INC: Flexsys Unit Raises Prices to Ensure Reinvestment SOLUTIA: Settlement Gives GE Betz US$255,575 in Allowed Claim SOLUTIA INC: To Issue 7,450,000 Shares for Employee Plans TAP RESOURCES: Bourse to De-List Securities on March 14 WWE HOLDINGS: Classified as Affected Listed Issuer Under PN 17 N E W Z E A L A N D BLUE JAY: Appoints Meltzer, Heath & Hayward as Liquidators BLUE SKY: Creditors' Proofs of Debt Due on March 18 BRADSHAW LIMITED: Taps Meltzer, Heath & Hayward as Liquidators CENTRAL OTAGO: Faces Fulton Hogan's Wind-Up Petition DENBY LIMITED: Requires Creditors to File Claims by March 18 DESIGNAKIT BUILDINGS: Court to Hear Wind-Up Petition on March 10 DUKE STREET: Taps Fatupaito & McCloy as Liqudators GUTTER CLEAN: Wind-Up Petition Hearing Set for April 1 ILMINSTER LIMITED: Requires Creditors to File Claims by March 18 MHS NEW ZEALAND: Fixes May 14 as Last Day to File Claims P H I L I P P I N E S LEPANTO CONSOLIDATED: Discloses Details of Stock Rights Offer PHIL. LONG DISTANCE: To Convert Some Preferred Stock on June 5 UNIWIDE HOLDINGS: Chief Information Officer Leaves S I N G A P O R E NOVELTY ENGINEERING: Court to Hear Wind-Up Petition on March 14 SIFINVEST OVERSEAS: To Pay First Dividend on March 17 TOH TECK: Wind-Up Petition Hearing Set for March 14 VALEANT PHARMA: To Restate Financial Statements Due to Errors VALEANT PHARMA: Incurs US$20.2 Million Net Loss in Fourth Qtr. T H A I L A N D * THAILAND: Government Cuts Taxes to Revive Economy * Beard Group's Cross-Border Insolvencies Audio Primer * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= CAMDEN SHEET: Liquidator to Present Wind-Up Report on March 11 -------------------------------------------------------------- Camden Sheet Metal Pty. Limited will hold a final meeting for its members and creditors at 12:00 noon on March 11, 2008. During the meeting, the company's liquidator, Michael G. Jones at Jones Partners, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Michael G. Jones c/o Jones Partners Insolvency & Business Recovery Australia Telephone:(02)9251 5222 About Camden Sheet Camden Sheet Metal Pty Limited is involved with sheet metal work. The company is located at Smeaton Grange, in New South Wales, Australia. CHRYSLER: Can Have Unlimited Access to Daimler AG's Technology -------------------------------------------------------------- Daimler AG granted Chrysler LLC a no-frills access to its advanced technology, Mike Spector of The Wall Street Journal reports. Chrysler can use the technology in order to pursue and enhance fuel-economy and mileage on its products, says WSJ, citing Chrysler vice chairman Jim Press at a Geneva auto convention. Chrysler previously streamlined its production by rejecting the "car cloning" practice, and instead will focus on selling its remaining, unique car models. As reported in the Troubled Company Reporter on Feb. 27, 2008, the company's streamlining measures came after it lost its tooling battle with Plastech Engineered Products Inc. The U.S. Bankruptcy Court for the Eastern District of Michigan denied the company's request to pull out tooling equipment from Plastech's plants. 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 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. CUMBERLAND PAINTING: Final Meeting Slated for March 14 ------------------------------------------------------ Cumberland Painting Services Pty. Ltd. will hold a final meeting for its members and creditors at 11:00 a.m. on March 14, 2008. During the meeting, the company's liquidator, Michael G. Jones at Jones Partners, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Michael G. Jones c/o Jones Partners Insolvency & Business Recovery Australia Telephone:(02)9251 5222 About Cumberland Painting Cumberland Painting Service Pty Ltd is a distributor of paintings and paper hangings. The company is located at Wedderburn, in New South Wales, Australia. GAZELLE PHOTOGRAPHICS: Members & Creditors' Meeting on March 14 --------------------------------------------------------------- Gazelle Photographics Pty. Ltd. will hold a final meeting for its members and creditors at 10:00 a.m. on March 14, 2008. During the meeting, the company's liquidator, Chris Chamberlain at Chamberlain's SBR, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Chris Chamberlain c/o Chamberlain's SBR Chartered Accountants PO Box 852 Wagga Wagga, New South Wales 2650 Australia About Gazelle Photographics Gazelle Photographics Pty Ltd provides business services. The company is located at Wagga Wagga, in New South Wales, Australia. GREG SHAW: Final Meeting Slated for March 14 -------------------------------------------- Greg Shaw Pty. Ltd. will hold a final meeting for its members and creditors at 11:00 a.m. on March 14, 2008. During the meeting, the company's liquidator, Chris Chamberlain at Chamberlain's SBR, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Chris Chamberlain c/o Chamberlain's SBR Chartered Accountants PO Box 852 Wagga Wagga, New South Wales 2650 Australia About Greg Shaw Greg Shaw Pty Ltd, which is also trading as Burnley Take Away, operates restaurants. The company is located at Richmond, in Victoria, Australia. HIGH RISE: Final Meeting Slated for March 11 -------------------------------------------- High Rise Air Conditioning Pty. Limited will hold a final meeting for its members and creditors at 11:00 a.m. on March 11, 2008. During the meeting, the company's liquidator, Michael G. Jones at Jones Partners, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Michael G. Jones c/o Jones Partners Insolvency & Business Recovery Australia Telephone:(02)9251 5222 About High Rise High Rise Air Conditioning Pty. Limited provides plumbing, heating, and air-conditioning services. The company is located at Smeaton Grange, in New South Wales, Australia. INSURANCE TECHNICAL: Commences Liquidation Proceedings ------------------------------------------------------ Insurance Technical Support Pty. Ltd.'s members agreed on February 1, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed S. Naidenov to facilitate the sale of its assets. The liquidator can be reached at: S. Naidenov c/o NAIDENOV Insolvency & Business Advisors Level 5, 49 Market Street Sydney, New South Wales 2000 Australia About Insurance Technical Insurance Technical Support Pty. Ltd. provides business- consulting services. The company is located at Hunters Hill, in New South Wales, Australia. NORTHERN BEACHES: Placed Under Voluntary Liquidation ---------------------------------------------------- Northern Beaches Financial Planning Pty. Limited's members agreed on January 18, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Evan Philip Groombridge to facilitate the sale of its assets. The liquidator can be reached at: Evan Philip Groombridge Chartered Accountant 21 Cornwall Avenue Turramurra, New South Wales Australia About Northern Beaches Northern Beaches Financial Planning Pty Limited is involved with functions related to deposit banking. The company is located at Mona Vale, in New South Wales, Australia. PI DIRECT: To Declare First Interim Dividend on April 8 ------------------------------------------------------- PI Direct Pty Limited, which is in liquidation, will declare first interim dividend on April 8, 2008. Creditors are required to file their proofs of debt by March 12, 2008, to be included in the company's dividend distribution. The company's liquidator is: M. F. Cooper Frasers Insolvency Advisory 99 Elizabeth Street, Level 5 Sydney, New South Wales 2000 Australia Telephone:(02) 9223 2300 Facsimile:(02) 9223 3855 About PI Direct PI Direct Pty Limited is a distributor of durable goods. The company is located at Crows Nest, in New South Wales, Australia. RON H ALLARS: Members to Receive Wind-Up Report on March 31 ----------------------------------------------------------- Ronald George Palmer, Ron H Allars Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on March 31 at 9:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Ronald George Palmer c/o Palmers Chartered Accountants 13-15 Francis Street, Suite 5 Dee Why, New South Wales 2099 Australia About Ron H Allars Ron H Allars Pty. Ltd. provides services to insurance agents and brokers. The company is located at Stones Corner, in Queensland, Australia. SELMON OYSTERS: Members Resolve to Liquidate Business ----------------------------------------------------- Selmon Oysters Pty Ltd's 's members agreed on February 4, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Philip A. Bonny to facilitate the sale of its assets. The liquidator can be reached at: Philip A. Bonny c/o Powe Partners Pty Ltd 1/1095 Old Princes Highway Engadine, New South Wales 2233 Australia Telephone:(02) 9520 2655 About Selmon Oysters Selmon Oysters Pty Ltd is a distributor of shellfish. The company is located at Taren Point, in New South Wales, Australia. WOJO LIMITED: Members to Receive Wind-Up Report on April 29 ----------------------------------------------------------- K. J. Crawford, Wojo Limited's appointed estate liquidator, will meet with the company's members on April 29, 2008, at 9:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: K. J. Crawford Bromley Crawford Pty Limited 71-73 Archer Street, Level 5 Chatswood, New South Wales 2067 Australia About Wojo Limited Located at Dural, in New South Wales, Australia, Wojo Limited is an investor relation company. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== AMERON (HONG KONG): Members Meeting Fixed for March 31 ------------------------------------------------------ The members of Ameron (Hong Kong) Limited will have their final general meeting on March 31, 2008, at 20th Floor, Prince's Building, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Rainer Hok Chung Lam 20th Floor Prince's Building Central, in Hong Kong BERRY PLASTICS: B. Scheu Takes Helm at Rigid Closed Top Division ---------------------------------------------------------------- Berry Plastics Corp. announced on March 3, 2008 an organizational change involving one of its operating segments. Ben Scheu has accepted the role of president of Rigid Closed Top Division. Randy Hobson, who formerly served as president of Rigid Closed Top Division, has assumed the corporate role of executive vice president for Commercial Development. The company did not provide any additional information. About Berry Plastics Based in Evansville, Indiana, Berry Plastics Corporation -- http://www.berryplastics.com/-- manufactures and markets rigid plastic packaging products. Berry Plastics provides a wide range of rigid open top and rigid closed top packaging as well as comprehensive packaging solutions to over 12,000 customers, ranging from large multinational corporations to small local businesses. The company has 25 manufacturing facilities worldwide, including in Italy, England and Hong Kong, and employs more than 6,800 employees. * * * As reported in the Troubled Company Reporter on Feb. 14, 2008, Moody's Investors Service affirmed the B3 Corporate Family Rating of Berry Plastics Corporation and downgraded certain instrument ratings. Moody's said the outlook is stable. CROWN WORLDWIDE: Moody's Puts Ba2 Ratings on Proposed Notes ----------------------------------------------------------- Moody's Investors Service, on March 6, assigned a provisional (P)Ba2 corporate family rating to Crown Worldwide Holdings Ltd and a provisional (P)Ba2 rating to the company's proposed US$125 million to US$150 million 5-year senior notes. The outlook on both ratings is stable. The bond proceeds will be used to refinance a US$85m bridge loan due March 24, with the remainder to be used for capital expenditure. This is the first time that Moody's has assigned ratings to Crown, and the rating agency expects to affirm the ratings and remove them from their provisional status upon successful completion of the bond issuance. Failure to do so or arrange appropriate long term funding will result in a lower rating in view of the high refinancing risk faced by Crown. "The (P)Ba2 ratings recognise Crown's strong brand recognition in Asia and, to a lesser extent, the UK, its diversified and strong customer base, and its long operating track record. The stability and profitability of its document storage business provide further support to the ratings," says Elizabeth Allen, Moody's lead analyst for Crown. "While the company's core businesses are very cash generative, Crown's strategy to strengthen its portfolio of self-owned facilities is likely to result in fairly high capital spending in the coming two years, " adds Allen. "As a result, free cash flow could turn negative and any improvement in credit ratios would then have to come from improvement in profit generation." Furthermore, as part of Crown's expansion strategy, small to medium-sized acquisitions in selected businesses and locations are also likely. Crown reported adjusted debt/EBITDA of 4.5x and adjusted EBITDA interest coverage of 3.9x for FY2007. Moody's expects these ratios to stay at similar levels in the next two years. While such a financial profile is slightly on the weak side, the ratings are supported by the company's relatively stable business profile, low execution risk associated with its growth strategy, and competitive position in its core markets. The rating further incorporates the privately owned nature of Crown and its parent group (Crown & Grace Group), the existence of closely-related businesses owned by the parent, and intra- group transactions. Such a group structure also limits transparency and corporate governance, and disclosure standards are generally inferior to listed companies. However, Moody's draws comfort from Crown's long operating track record, the absence of dividend payment in the last few years and good reputation in the market. A rating upgrade will be considered if the company: 1) adheres to strong financial discipline as it continues to expand; 2) improves transparency and corporate governance; and/or 3) strengthens its financial profile such that adjusted debt/EBITDA falls below 3-3.5x and/or adjusted EBITDA interest coverage exceeds 4.5-5x on a sustainable basis. On the other hand, downward rating pressure could emerge if: 1) there is evidence of material diversion of funds to related group companies; 2) the company adopts an aggressive acquisition strategy; and/or 3) there is a material deterioration in its financial profile including adjusted debt/EBITDA exceeding 4.5-5x and adjusted EBITDA interest coverage falling below 2.5-3x. Headquartered in Hong Kong, Crown offers relocation and mobility services (R&M) as well as record storage and management services to multinational organizations and private individuals. It also offers value-added logistics services in a number of areas. Crown was founded by Mr James Thompson, Group Chairman and CEO, and is ultimately owned by a trust, beneficially owned by him and his family members. The company has a global footprint of more than 200 offices in over 50 countries and is the flagship company of the privately-held Crown & Grace Group. FAR EAST REFFRACTORIES: Members Meeting Fixed for March 31 ---------------------------------------------------------- The members of Far East Refractories 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 liquidator can be reached at: Iain Fegurson Bruce 8th Floor, Gloucester Tower The landmark, 15 Queen's Road Central in Hong Kong HEGEL LIMITED: Members Meeting Fixed for March 31 ------------------------------------------------- The members of Hegel Limited will have their final general meeting on March 31, 2008, at Office B, 26th Floor, United Centre, 95 Queensway, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Cheng Mo Kit, Katherine Office B, 26th Floor United Centre, 95 Queensway Hong Kong IIYAMA HONG KONG: Members & Creditors To Meet on April 2 -------------------------------------------------------- Iiyama Hong Kong Limited will hold a joint meeting for its members and creditors at 10:30 a.m. and 10:45 a.m. respectively on April 2, 2008. During the meeting, the company's liquidator, Chan Sek Kwan Rays, at Units E & F, 12th Floor, Seabright Plaza, 9-23 Shell Street, North Point, in Hong Kong, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Chan Sek Kwan Rays Units E & F 12th Floor Seabright Plaza 9-23 Shell Street North Point Hong Kong KINGSMILL NUTRACEUTICAL: Commences Liquidation Proceedings ---------------------------------------------------------- Kingsmill Nutraceutical (Holdings) Limited's members agreed February 22, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Heng Poi Cher to facilitate the sale of its assets. The liquidator can be reached at: Heng Poi Cher 43rd Floor China Resources Building Wanchai, Hong Kong LANANG INVESTMENTS: Commences Liquidation Proceedings ----------------------------------------------------- Lanang Investments Limited's members agreed February 11, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Bruno Arboit and Simon Richard Blade to facilitate the sale of its assets. The liquidators can be reached at: Bruno Arboit Simon Richard Blade Baker Tilly Hong Kong 12th Floor, China Merchants Tower Shun Tak Centre Hong Kong ONE CREATOR: Members Meeting Fixed for April 2 ---------------------------------------------- The members of One Creator Company Limited will have their final general meeting on April 2, 2008, at 12th Floor, V Heun Building, 138 Queen's Road, Central in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Choy man Yick 12th Floor V Heun Building 138 Queen's Road Central in Hong Kong PROFIT (CHINA-H.K.): Creditors Meeting Fixed for March 25 --------------------------------------------------------- The creditors of Profit (China-H.K.) Limited will have their final general meeting on March 25, 2008, at 27th Floor, Tung Wai Commercial Building, 111 Gloucester Road, Wanchai, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company liquidator's informations were not disclosed. POLIMIDE PLASTIC: Members Meeting Fixed for March 25 ---------------------------------------------------- The members of Polimide Plastic Manufactory Limited will have their final general meeting on March 25, 2008, at Room 1701, Olympia Plaza, 255 King's Road, North Point, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidators can be reached at: Lui Wan Ho To Chi Man Room 1701 Olympia Plaza 255 King's Road North Point, Hong Kong PROMITEX LIMITED: Creditors Meeting Fixed for March 17 ------------------------------------------------------ The creditors of Promitex Limited will have their final general meeting on March 17, 2008, at Suite 2018, 20th Floor, Tower 3, China in Hong Kong City to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator's informations were not disclosed. SUNCOLE LIMITED: Members Meeting Fixed for April 2 -------------------------------------------------- The members of Suncole Limited will have their final general meeting on April 2, 2008, at 12th Floor, V Heun Building, 138 Queen's Road, Central in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Choy man Yick 12th Floor V Heun Building 138 Queen's Road Central in Hong Kong TAILOR PLUS: Commences Liquidation Proceedings ---------------------------------------------- Tailor Plus Company Limited's members agreed February 22, 2008 to voluntarily liquidate the company's business. In line with this goal, the company has appointed Kwok Cheung, Bernard to facilitate the sale of its assets. The liquidator can be reached at: Kwok Cheung, Bernard Flat B, 16th Florr, Empire Land Commercial Centre, 81-85 Lockhart Road Wanchai, Hong Kong TECFORM LIMITED: Members Meeting Fixed for April 2 -------------------------------------------------- The members of Tecform Limited will have their final general meeting on April 2, 2008, at 12th Floor, V Heun Building, 138 Queen's Road, Central in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Choy man Yick 12th Floor V Heun Building 138 Queen's Road Central in Hong Kong ========= I N D I A ========= AES CORP: Defaults on Debt Facilities due to Misrepresentation -------------------------------------------------------------- The AES Corporation is in default under its senior secured credit facility and its senior unsecured credit facility due to a breach of representation related to its financial statements as set forth in the credit agreements. As a result, US$200 million of the debt under the company's senior secured credit facility will be classified as current on the balance sheet as of Dec. 31, 2007. There are no outstanding borrowings under the senior unsecured facility. The company will seek a waiver of these defaults from its lenders under these facilities. The company may not borrow additional funds under either of these facilities until it obtains the waiver. The company would delay the filing of its 2007 Annual Report on Form 10-K with the Securities and Exchange Commission. The company discloses that it is still preparing its financial statements as a result of its efforts to remediate the disclosed material weaknesses. In addition, the company relates that financial statements for the years ended Dec. 31, 2005, and 2006, of the company's independent registered public accounting firm, Deloitte & Touche LLP, could no longer be relied upon. Although the company provides no assurance that it will able to file its 2007 Form 10-K within the 15 calendar day extension period it relates that the Form 10-K will be filed within the extension period. About AES Corporation AES Corporation -- http://www.aes.com/-- a global power company, operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * As reported in the Troubled Company Reporter on Nov. 21, 2007, the. (AES: B1 Corporate Family Rating) has completed its offer to purchase up to $1.24 billion of outstanding senior notes. While no ratings changed as a result, the LGD point estimate on its senior secured credit facilities were revised to LGD 1, 2%, from LGD 1, 3%, its second priority secured notes to LGD 3, 38% from LGD 3, 41% and its senior unsecured notes to LGD 4, 53% from LGD 4, 57%. EXIDE TECHNOLOGIES: Moody's Affirms Caa1 Rating; Outlook Pos. ------------------------------------------------------------- Moody's Investors Service affirmed the Corporate Family Rating at Caa1 for Exide Technologies, Inc. but changed the outlook to positive from stable. Moody's also raised the rating on the company's asset based revolving credit facility to Ba3 from B1. Moody's also affirmed ratings of the senior secured term loans, at B1; and the senior secured junior-lien notes, at Caa1. The Probability of Default remains Caa1. The Caa1 Corporate Family Rating continues to reflect Exide's weak credit metrics balanced against operating performance that is improving as a result of cost reduction initiatives and successful pricing actions. While Exide benefits from its geographic and customer diversity, the company remains exposed to cyclical industry conditions, weather uncertainties, and commodity pricing pressures. The positive outlook reflects the company's progress in applying customer price increases and improved operational efficiencies which are reflected in the company's recent quarterly performance. The company's recent performance further indicates that price increases have taken hold and should further improve the company's operating performance. The company's capacity to generate free cash flow in the near term should be helped by softer global lead pricing due to softer global economic conditions. For the LTM period ending Dec. 30, 2007 DEBT/EBITDA (using Moody's standard adjustments) was approximately 6.2x and interest coverage approximated 0.7x. Exide had US$71 million of cash on hand at 12/31/2007 and US$79 million of availability under its revolving credit. A fixed charge covenant 1.1 becomes effective if availability falls below US$40 million. Ratings affirmed: Exide Technologies, Inc. -- Caa1 Corporate Family Rating; -- Caa1 Probability of Default; -- Caa1 (LGD3, 45%) rating of US$290 million of senior secured junior-lien notes due March 2013; Exide Technologies, Inc. and its foreign subsidiary Exide Global Holdings Netherlands CV: -- B1 (LGD2, 16%) to the US$130 million senior secured term loan at Exide Technologies, Inc.; -- B1 (LGD2, 16%) to the US$165 million senior secured term loan at Exide Global Holdings Netherlands CV.; Ratings raised: Exide Technologies, Inc. -- US$200 million asset based revolving credit facility, to Ba3 from B1. The last rating action was on April 26, 2007 when the senior secured bank debt was rated. In a January 2008 Special Comment, Moody's outlined the changes to its Loss-Given-Default methodology to recognize the favorable recovery experience of asset-based loans relative to other types of senior secured first-lien loans. The terms of Exide's ABL meet the eligibility requirements outlined in the Special Comment and, therefore, its rating is Ba3, which is one notch higher than would otherwise have been indicated by the LGD waterfall. Exide, headquartered in Alpharetta, Georgia, is one of the largest global manufacturers of lead acid batteries, with net sales approximating US$3.5 billion. The company manufactures and supplies lead acid batteries for transportation and industrial applications worldwide. The company has operations in 89 countries, including, Australia, India, Finland, Poland, New Zealand, among others. ICICI BANK: Says No Material Exposure to U.S. Sub-Prime Credit -------------------------------------------------------------- ICICI Bank Ltd. has no material direct or indirect exposure to U.S. sub-prime credit, the bank said in a media release after reports of the company losing US$264 million on account of the sub-prime crisis. According to ICICI Bank, the widening of credit spreads in the international markets have resulted in a negative mark-to-market impact on the credit derivatives and fixed income investment portfolios of the bank and its overseas banking subsidiaries, while there has been no significant deterioration in actual credit quality of the underlying investments. ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of US$2.2 billion in credit derivatives, the release noted. As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$155 million of which US$88 million had been provided for in the financial statements of the bank and its subsidiaries for the nine months ended December 31, 2007. In addition, ICICI Bank and its overseas banking subsidiaries have fixed income investment portfolios, which have a mark-to- market negative due to widening of credit spreads. As of January 31, 2008, this negative was about US$108 million of which US$101 million had been accounted for in the financial statements as of December 31, 2007. This includes mark-to- market on the available for sale portfolio, which has been accounted for in the shareholders' equity. The release added that unrealized gains on ICICI Bank's other investment portfolio has not been considered in above. 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. QUEBECOR WORLD: WEB Printing Backs Suppliers' Objections -------------------------------------------------------- WEB Printing Company, Inc., supports the objection raised by Packaging Corporation of America; and Abitibi Consolidated Sales Corp., Abitibi-Consolidated US Funding Corp., and Bowater America Inc. regarding the reclamation procedures proposed by Quebecor World Inc. and its debtor-affiliates. WEB Printing also asks the U.S. Bankruptcy Court for the Southern District of New York to require the Debtors to: (a) provide liquid collateral, in the form of irrevocable letters of credit in a amount at least equal to 125% of the reclamation claims; and (b) preclude the necessity of the Debtors obtaining the approval of any DIP Lender, the U.S. Trustee, or the Unsecured Creditors Committee to the resolution of any reclamation claim. As reported in the Troubled Company Reporter on Feb. 25, 2008, in separate filings Abitibi Consolidated Sales Corp., Abitibi- Consolidated US Funding Corp., Bowater America Inc. and Bowater Inc.; Packaging Corporation of America; Catalyst Pulp and Paper Sales Inc., and Catalyst Paper (USA) Inc.; Rock-Tenn Company; Midland Paper Company; and Day International Inc., objected to the Debtors' proposed claims treatment procedures. The initial objectors demanded the return of supplies worth more than US$30 million. The Suppliers asserted that the proposed Reclamation Procedures will effectively deny their right of reclamation stating that after a 120-day stay has expired, the Suppliers' goods will have almost certainly been entirely consumed by the Debtors. The Suppliers believe that they have satisfied the requirements of Section 546(c), which gives them an absolute right to reclaim the goods they sold to the Debtors which was received 45 days before the bankruptcy filing. These 22 suppliers filed notices of demand for reclamation from Feb. 5, 2008, to March 2, 2008, to recover goods supplied to the Debtors with 45 days before the bankruptcy filing: Claimant Claim Amount -------- ------------ Forbo Adhesives $106,684,453 Abitibi Consolidated Sales Corp. 15,109,949 Bowater America Inc. 7,554,670 Bowater Inc. unspecified Catalyst Paper (USA) Inc. 8,388,821 NewPage Corporation 3,553,262 Midland Paper 3,070,833 Packaging Corporation of America 1,454,988 Day International 1,225,783 AEP Industries, Inc. 1,099,710 A.T. Clayton & Company 721,305 Rock-Tenn Company 387,380 MSC Industrial Supply Co. 327,402 ACTEGA Kelstar, Inc. 325,711 Goss International 293,642 C&W Pressroom Products 182,170 Roosevelt Paper Company 74,226 WEB Printing Controls Company, Inc. 50,482 Holliston LLC 45,967 Valley Industrial Rubber Products Co. 25,610 WESCO 19,544 Newsweek, Inc. unspecified 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 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 US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Reaches Settlement with Utility Providers --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved five stipulations entered into by Quebecor World Inc. and its debtor-affiliates and certain utility providers to resolve objections to the Utility Motion. Consolidated Edison Company of New York, Inc., Duke Energy Ohio, Inc., Duke Energy Carolinas, LLC, New York State Electric and Gas Corporation, The Commonwealth Edison Company, PECO Energy Company, Piedmont Natural Gas Company and Virginia Electric and Power Company, d/b/a Dominion Virginia Power, CenterPoint Energy Arkansas Gas, CenterPoint Energy Gas Transmission, Inc., and Merced Irrigation District entered into a letter agreement dated Feb. 20, 2008, with the Debtors pursuant to which the Debtors will provide certain adequate assurance of payment for future utilities services to the Utilities. The parties agreed that upon delivery of the adequate assurance by the Debtors pursuant to the Letter Agreement, the Utilities will be deemed to be adequately assured of payment for future utility services within the meaning of Section 366 of the Bankruptcy Code. The amount of adequate assurance was not disclosed. BP Canada Energy Marketing Corp., BP Energy Company, IGI Resources, Inc., Hess Corporation formerly known as Amerada Hess Corporation and the Debtors have engaged in negotiations to resolve their Objections and seek an adjournment of a hearing on the Objection to continue those efforts. The parties agreed that the hearing on the Objections is adjourned to March 20, 2008. Pending the hearing and resolution or adjudication of the Objections, BP and Hess will be excluded from the definition of Utility Provider and none of the parties will be included on the Utility Service List, and the Debtors, Hess and BP reserve their rights. Hess waives any and all objections to (a) the Proposed Adequate Assurance for Utility Providers proposed in the Motion, provided, however, Hess's Objection is preserved to the extent that it seeks adequate assurance in the manner and form that existed pre-petition, viz. posting of a $1,500,000 letter of credit by the Debtors with Hess as beneficiary and (b) the Adequate Assurance Procedures and the procedures for opting out of Adequate Assurance Procedures. The Debtors also entered into a letter agreement with Integrys Energy Services of Canada Corp. and Integrys Energy Services, Inc. The parties agreed that the Debtors agree not to assert in their chapter 11 cases that Integrys is a "utility" within the meaning and subject to the application of Section 366 of the Bankruptcy Code. The Debtors further agree that Integrys is not subject to the Utility Motion, or any related orders. Integrys withdraws with prejudice, and will not seek Bankruptcy Court consideration of, its Objection. The parties also agree that Integrys US is authorized to apply the prepetition deposit in its possession to the net, outstanding prepetition balances owed to Integrys US. The Debtors ask the Court to enter an order (i) determining that utility providers have been provided with adequate assurance of payment within the meaning of Section 366 of the Bankruptcy Code; (ii) approving proposed procedures for granting adequate assurance payments to certain utility providers; and (iii) prohibiting utility providers from altering, refusing or discontinuing services on account of prepetition amounts owed. Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, proposed counsel for the Debtors, tells the Court that the Debtors operate 78 printing facilities in 29 states. As an indispensable part of those operations, the Debtors obtain electric, gas, water, sewer, telephone and other similar utility services provided by 200 utility companies. The Debtors pay utility providers, on average, about $10,000,000 per month for services rendered. The Debtors, pursuant to an Energy Sourcing and Management agreement, transfer $3,000,000 every week to Summit Energy Systems, Inc., which then transmits payment to majority of the Debtors' utility providers. Mr. Canning avers that uninterrupted utility services are essential to the Debtors' ongoing operations and, therefore, to the success of the Debtors' reorganization. BP Canada Refused to Supply U.S. Plants As reported in the Troubled Company Reporter on Feb. 7, 2008, Craig W. Wolfe, Esq., at Kelley Drye & Warren, LLP, in New York asserted that the Debtors' request for supply should be denied as it relates to BP Canada, BPEC and IGI. He argues that BP Canada, BPEC and IGI are not "utilities," and are thus not subject to Section 366 of the Bankruptcy Code. Mr. Wolfe asserts that BP Canada, BPEC and IGI do not have a monopoly over the sale of natural gas to the Debtors. There are numerous other providers of natural gas that are available to the Debtors, including the local distribution company, he points out. For purposes of the Interim Order, BP Canada, BPEC, IGI, BP Energy Marketing Corp., and National Fuel Resources Inc., will be excluded from the definition of Utility Provider. More Objections (1) Consolidated Edison Company, et al. Consolidated Edison Company of New York, Inc., Duke Energy Ohio, Inc., Duke Energy Carolinas, LLC, New York State Electric and Gas Corporation, The Commonwealth Edison Company, PECO Energy Company, Piedmont Natural Gas Company, and Virginia Electric and Power Company doing business as Dominion Virginia Power asked the Court to deny the Debtors' request and award them postpetition adequate assurance of payment pursuant to Section 366 of the Bankruptcy Code. Jil Mazer-Marino, Esq., at Rosen Slome Marder LLP, in Uniondale, New York, related that Dominion Virginia Power maintained a letter of credit on the Debtors' prepetition accounts totaling US$331,938. New York State Electric and Gas maintained security deposits on the Debtors' prepetition accounts totaling US$85,000. CenterPoint Energy Arkansas Gas requested a two-month deposit of US$9,640, while CenterPoint Energy Gas Transmission seeks a 90- day deposit of US$12,375. (2) Clearwater Enterprises Clearwater Enterprises, L.L.C., asked the Court to determine that the Interim Order does not apply to Clearwater and that the rights set forth in Section 556 of the Bankruptcy Code are applicable to Clearwater. According to Osman Dennis, Esq., at Peter Axelrod & Associates, P.C., in New York, the Debtors sought to compel Clearwater to continue to provide natural gas to the Debtors' Stillwater Oklahoma Facility under a certain Base Contract by deeming Clearwater as a utility. (3) Merced Irrigation District Merced Irrigation District proposed two alternative methods of providing adequate assurances. The first method is for the Debtors to post a two-month deposit of US$1,006,098. The second method requires the Debtors to provide Merced a two-week deposit of $232,176, involves changing the billing cycle from monthly to weekly, requires the Debtors to pay weekly invoice timely, among others. (4) Franklin Electric, et al. Franklin Electric Plant Board; Cumberland Electric Membership Corporation; Memphis Light, Gas & Water Division of the City of Memphis, Tennessee; Covington Electric System; City of Covington; Nashville Electric Service; Trenton Light & Water Department of the City of Trenton, Tennessee; Dyersburg Electric System; City of Dyersburg, Tennessee; Dickson Electric System; Alcorn County Electric Power Association; Clarksville Department of Electricity; and Northcentral Electric Power Association asked the Court to require the Debtors to post a security deposit within 30 days of the Petition Date satisfactory to Franklin Electric, et al., in an amount not less than 250% of the highest month's usage for each of the Municipal and Cooperative Utilities during the 12-month period preceding the Petition Date, as adjusted by an additional proportionate increase associated with the anticipated increases in the cost of supplying electricity and natural gas, among others. The Debtors' highest monthly utility consumption during the 12 months preceding the Petition Date total US$2,407,533. Franklin Electric, et al., also asserted US$2,083,485 prepetition claims against the Debtors. Stipulation With SCANA In a Court-approved stipulation, the Debtors and SCANA Energy Marketing have agreed that (a) the Debtors will not assert that SCANA is a "utility" within the meaning and subject to the application of Section 366 of the Bankruptcy Code; and (b) the Debtors agree that SCANA is not subject to the Utility Motion and orders related to it, and SCANA will not be listed on the schedule of utilities attached to the Final Order. Court's Final Order Judge James Peck issued a final order determining adequate assurance of payment for future utility services. The Court ordered that utilities identified by the Debtors are forbidden to discontinue, alter or refuse service on account of any unpaid prepetition charges, or require additional adequate assurance of payment other than the Debtors' adequate assurance. A copy of the Utility Service List is available for free at: http://bankrupt.com/misc/Quebecor_FinalUtilityServiceList.pdf 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: Wants Banc of America Aircraft Lease Rejected ------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to reject an aircraft lease agreement with Banc of America Leasing and Capital, LLC. The Debtors further ask the Court to lift the automatic stay so that Banc of America can exercise its rights to the Aircraft Lease Agreement, which includes one Bombardier CL-601-3A aircraft, two General Electric CF34-3A engines and certain appliances, parts, instruments, appurtenances, accessories, furnishings, seats and other equipment incorporated to the aircraft. The Aircraft Lease expired on January 18, 2008. The Debtors want to reject the Aircraft Lease effective as of the Petition Date out of an abundance of caution, and to confirm that their bankruptcy estates do not retain any equitable interest in the aircraft or the Aircraft Lease. In addition, the Debtors request clarification that Banc of America's exercise of remedies under the Aircraft Lease and actions to take possession of the aircraft will not be construed as a violation of the automatic stay under Section 362 of the Bankruptcy Code. As of Jan. 7, 2008, the Debtors owe US$12,218,351 under the Lease. According to Michael Canning, Esq., at Arnold & Porter LLP, in New York, the aircraft is not operational and is hangered in Montreal, Canada. The Debtors are also continuing to incur costs associated with its storage and insurance. The Debtors have determined that the fair market value of the aircraft is significantly less than the US$12,218,351 payment amount. Based on an Aircraft Appraisal Report prepared by Aeronautical Systems, Joseph T. Zulueta, ASA, dated Jan. 28, 2008, the fair market value of the aircraft is at an estimated US$9,633,000. Mr. Canning relates that Banc of America desires to retake possession of the aircraft as soon as possible, and has agreed to waive any and all postpetition claims, as well as any rejection damages arising from the Debtors' rejection of the Aircraft Lease. Accordingly, the Debtors have entered into discussions with Banc of America regarding the Aircraft Lease rejection and relief from the automatic stay. 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 $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 US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. TATA MOTORS: Presents 4 Vehicles Including Nano at Geneva Show -------------------------------------------------------------- Tata Motors Ltd. presented Tuesday at the 78th Geneva Motor Show the Tata Nano, the People's Car, and three other vehicles, the new generation Indica, the new Safari DICOR 2.2 VTT and the Xenon. The Nano will first be launched in India later in 2008. The new generation Indica will be launched in the latter part of 2008 in international markets. The Safari DICOR 2.2 VTT and the Xenon have just been introduced in select markets. Speaking on the occasion at the Geneva Motor Show, Ratan N. Tata, Chairman of the Tata Group and Tata Motors said, "1998, when we displayed the Indica at Geneva, marked our entry into passenger cars. The last decade has been a period of significant development in Tata Motors' capabilities. The display of the Nano, which is a first for the global automobile industry, and the new generation Indica signifies this in-house progression." The Nano The Nano is designed as an all-weather, safe family car at an affordable price. When launched in India, the car will be available in both standard and deluxe versions. The standard version has been priced at INR100,000 (about US$2,500/EUR1,700), excluding VAT and transportation cost. The Nano can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. It has a rear-wheel drive, all-aluminium, two-cylinder, 623 cc, 24.6 kW, multi point fuel injection petrol engine. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency of the car results in low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. The New Indica The new generation Indica has been given a complete makeover. The new Indica is bigger than the current Indica with a length of 3,795 mm (existing 3,675 mm), width of 1,695 mm, height of 1550 mm and wheelbase of 2,470 mm (existing 2,400 mm). The rear sloping wind screen also increases the sense of spaciousness in the passenger cabin. The new Indica will be available with a new range of world class diesel and petrol engines and transmissions with a new suspension. The car will be offered with the new 1.3 litre Quadra-Jet Common Rail Direct Injection Diesel engine and 1.2 and 1.4 litre Safire MPFI VVT Petrol engines, in addition to existing Tata powertrains. The new engines will be manufactured at the new Tata-Fiat joint venture plant in India. The New Safari DICOR 2.2 VTT The Safari is powered by a 2.2 litre 103 kW common rail direct injection Euro IV compliant diesel engine. The new styling and comfort features are complemented by convenience and safety features, such as ABS and airbags. The Xenon The Xenon is also equipped with a 2.2 litre 103 kW common rail direct injection Euro IV compliant diesel engine. With superior styling, comfort and safety features this is a versatile pick up truck suited for business as well as leisure applications. It is offered in single cabin, double cabin and space cabin versions in 4x2 as well as 4x4 configurations. Superior fuel mileage and better payload capacity make it a profitable choice for commercial and personal usage. While continuing to be manufactured in India, the Xenon will also be manufactured in Thailand and will be marketed in Tata's existing European, Asean and African markets. The Tata range has been selling in select European markets since 1993 and has continued to gain increasing response year after year. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. TATA MOTORS: Won't Flip Jaguar, Ratan Tata Says ----------------------------------------------- Tata Group Chairman Ratan Tata said that Tata Motors Ltd. won't flip Jaguar, denying speculations that the bus maker may sell the unit quickly after closing a deal with Ford Motor Co., Mike Spector and Edward Taylor of The Wall Street Journal reports. "I don't think that's been our style," The Journal quoted Mr. Tata as saying. "We haven't flipped companies that we've been involved in." Tata Motors further assured the workers at Jaguar and Land Rover that the company won't introduce drastic changes to the business structure of the two brands, The Journal stated. "These are two iconic brands . . . the plan would be to retain the image and not to tamper it in any way," Reuters quoted an Tata spokesperson as telling reporters at the Geneva auto show on Tuesday. According to the unnamed spokesperson, Tata intends to "nurture and grow" the brands. A Financial Times report on Wednesday said that Mr. Tata expects Jaguar and Land Rover's management to integrate with Tata Motors' but he promises they would not get involved with Indianising the company. Tata Motors became the front-runner to buy Ford's Jaguar and Land Rover, outbidding Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. Deal Delayed The Troubled Company Reporter-Asia Pacific reported on Feb. 27, 2008, that the announcement of the sale of the two luxury brands to Tata Motors is expected to on March 6 or 7. The Journal, citing an unnamed person briefed on the negotiations, said talks were likely to extend beyond this week. According to the Indo-Asian News Service, the purchase has been delayed by more than 10 days. "We have been told that the memorandum of sales will now take place in the week beginning March 17, after the Geneva Motor Show is over," IANS quotes a spokesman for Unite workers' as saying. Ford noted in its U.S. Securities and Exchange Commission annual report filing that the sale deal with Tata Motors for the two units is expected to close in the second quarter. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. TATA MOTORS: To Raise US$3 Bil. for Jaguar-Land Rover Purchase -------------------------------------------------------------- Tata Motors Ltd. is seeking US$3 billion in loans fund its planned acquisition of Ford Motor Co.'s Jaguar and Land Rover brands, Joe Leahy writes for the Financial Times. The FT report, citing people familiar with the matter, said that Tata Motors has already tapped Citigroup and JPMorgan to, among others, arrange the financing with various banks including Standard Chartered, State Bank of India, Bank of Tokyo and Mitsubishi UFJ, Mizuho Financial Group and Calyon. Tata Motors became the front-runner to buy Ford's Jaguar and Land Rover, outbidding Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. A deal for the sale is expected to be announced since yesterday, but recent reports say it will be delayed by more than 10 days. According to the Indo-Asian News Service, a memorandum of sales will now take place in the week beginning March 17, after the Geneva Motor Show is over. The Troubled Company Reporter-Asia Pacific reported on Feb. 26, 2008, that Tata Motors Ltd. has kick-started the process of raising US$2.5 billion by giving the mandate to various local and foreign banks. Merrill Lynch analysts originally evaluated Jaguar and Land Rover at around US$1.5 billion but later consultants estimate it to cost between US$2 billion to US$3 billion, the Economic Times said. According to FT, Tata is entering the market at a difficult time for acquisition financing, with companies facing higher prices in raising high-yield bonds for takeovers and banks keen to spread their exposure to such debt. The news agency expects the loan to be mostly short-term bridge financing but fails to gave out details saying they are still being ironed out. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. ================= I N D O N E S I A ================= BANK INT'L: Government Denies China Bank's Takeover Bids -------------------------------------------------------- Indonesia's central bank denied rumors that the Industrial and Commercial Bank of China and China Construction Bank have submitted a bid for a controlling stake in PT Bank Internasional Indonesia Tbk, Reuters reports. According to the report, three Indonesian newspapers on February 4, reported that the central bank had confirmed that ICBC and CCB had applied to buy a stake in Bank Internasional from Singapore investor Temasek Holdings. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 28, 2008, Temasek Holdings may decide to sell its controlling stake in the Bank Internasional, driven by an Indonesian central-bank policy. Under Bank Indonesia's single- presence policy, foreign parties cannot own a controlling stake in more than one Indonesian bank and must submit statements of compliance to this rule. Bank Indonesia set an end-2007 deadline for affected bank owners to decide on how they would comply with the rule. Foreigners controlling Indonesian banks have three options to comply with the single presence policy introduced by Bank of Indonesia, the TCR-AP related: -- merge the banks, -- set up a holding company for the banks, or -- sell down their stakes. Temasek's Fullerton Financial Holdings Pte Ltd. since 2003 has owned 75% of the shares of Sorak consortium, which in turn owns a 55.85% stake in BII. Fullerton also holds a 59% majority share in Bank Danamon. "We have not received letters from ICBC and CCB. What we have is only Temasek saying that they are planning to sell and they never said to whom," Halim Alamsyah, director for research and banking administration at Bank Indonesia, was quoted by Reuters as saying. Adriana Nina Kusuma and Harry Suhartono of Reuters writes that the newspapers had quoted Alamsyah as the source confirming that the central bank had indeed received proposals from the two Chinese banks. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on March 3, 2008, Fitch Ratings has affirmed PT Bank Internasional Indonesia Tbk's(BII) long-term foreign currency Issuer Default Rating at 'BB', following Fullerton Financial Holdings' announcement of its intentions to pursue the sale of its interest in BII. FFH is a wholly owned subsidiary of Temasek Holdings. On October 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk. -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2 -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of Bank Internasional as follows: * Long-term foreign currency IDR at 'BB-' with a Positive Outlook, * Short-term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)'. GOODYEAR TIRE: Fitch Lifts Issuer Default Rating to BB- ------------------------------------------------------- Fitch Ratings upgraded The Goodyear Tire & Rubber Company's Issuer Default Rating and senior unsecured debt rating as: The Goodyear Tire & Rubber Company: -- IDR to 'BB-' from 'B+'; -- Senior unsecured debt to 'B+' from 'B-/RR6'. In addition, Fitch has affirmed these ratings: The Goodyear Tire & Rubber Company: -- US$1.5 billion first lien credit facility at 'BB+'; -- US$1.2 billion second lien term loan at 'BB+'. Goodyear Dunlop Tires Europe B.V. (GDTE): -- EUR505 million European secured credit facilities at 'BB+'. The ratings cover approximately US$4.1 billion of outstanding debt. The Rating Outlook is Stable. Furthermore, Fitch is withdrawing its ratings for GT's third lien senior secured debt following repayment of the debt. The two-notch rating difference between GT's secured debt and its IDR reflect the benefit of significant collateral support. GT's first lien credit facility and the second lien term loan are given the same rating due to Fitch's opinion that the collateral package provides sufficient coverage to both facilities even in the case of the first lien revolver being fully drawn. The one-notch difference between the unsecured debt and the IDR reflects the unsecured debt's junior position in the capital structure, as well as credit concerns described below. The rating upgrades reflect the positive impact on GT's balance sheet from its continued debt reduction, significant cost reduction in the past year, and a successful strategic shift to selling more premium-priced products. The senior unsecured debt also benefits from the reduced amount of secured debt in the capital structure after GT redeemed US$650 million of senior secured third lien notes on March 3. Combined with the expected repayment of US$100 million of 6-3/8% notes that mature on March 17, 2008, GT will have reduced its debt by US$3.2 billion since the beginning of 2007. The ratings and Stable Outlook for GT reflect an improving cost structure, a more focused marketing strategy, growing international sales, and a solid liquidity position. GT has exited low-margin segments of the wholesale private label tire business and expanded its higher margin premium tire business. Results in GT's North American operations, while improving, remain weaker than its international operations, and GT remains exposed to declining vehicle sales in the U.S. and an uncertain economy. An increasing proportion of sales outside the U.S. should help alleviate this concern over the long term. Other rating concerns also include high raw material costs, competitive pricing in certain international markets and cash requirements for capital expenditures and pension contributions. Further upside changes in the ratings or Outlook will depend on GT's ability to extend its recent progress in addressing operating challenges and in building stronger credit metrics. Cash flow from operations continued to be weak in 2007 due to large pension contributions and higher working capital requirements as GT recovered from the labor strike in late 2007. In 2008, cash flow will remain challenging but should be favorably affected by reduced pension contributions, a better working capital position, and lower interest expense related to debt reduction. Cost pressures from raw materials, including rubber, which GT estimates may rise 7%-9% in 2008, could be mitigated by GT's ongoing cost-reduction program. At the end of 2007, GT had achieved more than half of its US$1.8 billion-US$2 billion four-year cost reduction goal. The program involves cost savings from higher productivity, a reduction in GT's global footprint, and a further transition to low-cost sourcing. GT has been effective at reducing the negative impact of high raw material costs by raising prices and emphasizing higher- margin premium tires. At the end of 2007, GT had a liquidity position of approximately US$4.9 billion, consisting of US$3.5 billion of cash and US$1.8 billion of credit facility availability, less US$396 million of short-term debt and current maturities. Year-end cash balances were used to execute the debt reduction mentioned above, and they will be utilized to fund the planned US$1 billion contribution to GT's Voluntary Employees' Beneficiary Association trust. The transaction would significantly reduce OPEB liabilities and associated cash requirements in future years. Other cash requirements in 2008 will include pension contributions, though at a much lower level than previous years, increased capital expenditures, and modest debt reduction. GT's debt-to-EBITDA ratio has declined from an unusually high level one year ago and stood at 3 times as of Dec. 31, 2007. The company's long-term target for debt/EBITDA is 2.5x as measured by its bank facilities and differs somewhat from Fitch's calculation. EBITDA-to-Interest coverage improved to 3.4x at the end of 2007 compared to 2.4x at the end of 2006. All previously assigned Recovery Ratings have been withdrawn as a result of the IDR upgrade to 'BB-'. Fitch assigns explicit RR's only for companies with an IDR of 'B+' or below. Notching for companies with IDR's above 'B+' continues to be heavily influenced by broader historical recovery patterns LIPPO KARAWACI: Bosowa Group Acquires Hotel Imperial for US$17MM ---------------------------------------------------------------- Bosowa Group, through PT Makassar Hotel Network, has acquired PT Lippo Karawaci Tbk's Hotel Imperial Aryaduta Makassar, Reuters Investing Keys reports. According to the report, the Imperial Hotel's whole assets were priced at US$17 million. The transaction, the report relates, was signed in December 2007 and it will be concluded in February 2008 at the latest. Bosowa paid a partial of US$4 million and will pay the rest in the near future, the same report adds. PT Lippo Karawaci Tbk -- http://www.lippokarawaci.co.id/-- is one of the largest property developers in Indonesia with a market capitalization of over USD550 million. As of end-2005, it possessed a huge land bank reserve of 2,079 hectares. The Company also operates four hospitals and four hotels in Indonesia. The Troubled Company Reporter-Asia Pacific reported on Nov. 24, 2006, that Moody's Investors Service changed to negative from stable its outlook on PT Lippo Karawaci Tbk's B1 corporate family rating and the B1 senior unsecured bond rating of Lippo Karawaci Finance BV and guaranteed by LK. Standard & Poor's Ratings Services said its ratings on PT Lippo Karawaci Tbk. (B+/Stable/--) was not affected by the company's decision to sell its entire interest in a property development project in Singapore. MEDCO ENERGI: to Purchase Natuna Shares --------------------------------------- PT Medco Energi Internasional Tbk is interested in purchasing the Natuna gas field, owned by ExxonMobil and Pertamina, Tempo Interactive reports. Owner of Medco E&P Indonesia Arifin Panigoro said he is not sure yet of the rumored acquisition plan, but if he was asked to work with Pertamina, then the company might be interested in buying the shares. However, he explained that if Medco purchased the shares, the number of shares to be purchased will still depend on the project structure, he added. Sorta Tobing of Tempo writes that Mr. Panigoro also said if it is pure LNG (Liquid Natural Gas) the shares will be very expensive. About Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). MEDCO ENERGI: Discloses Gas Flow Incident in Sembakung Block ------------------------------------------------------------ PT Medco Energi Internasional Tbk said a gas flow incident occurred at its Sembakung well no. 60 in Sembakung Block, Reuters Investing Keys reports. According to the report, The block, which was operated by the company's unit PT Medco E&P Indonesia (MEPI), experienced natural gas flowing at its wellhead on January 27, 2008. MEPI took all necessary measures to surmount the incident, including the halting of drilling operations and shutting down of wells in the vicinity of the Sembakung well, the report relates. The company explained to Reuters that the incident does not present any danger to the local people or to the environment since the well's location is far from any residential areas. About Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). * INDONESIA: European Union to Discuss Flight Ban in July --------------------------------------------------------- The European Union will convene in July 2008 to discuss its flight ban on 51 Indonesian Airlines. The discussion was originally scheduled for April, but an EU consultant needed time additional time to verify aviation safety standards in Indonesia, Antara News reports, citing Transportation Minister Jusman Syafii Djamal. The European Commission banned 51 Indonesian airline companies from flying to European Union member countries as of July 6, 2007, due to flight safety concerns, the report recounts. Since then the Indonesian government intensively lobbied the EU to lift it, while requiring Indonesian airline companies to improve their flight safety conditions, Antara relates. Jean Piere Ambrosini, EU consultant on Indonesia-European Union partnership for aviation safety, will collect data for six months in Indonesia and submit a recommendation for the evaluation of the flight ban on Indonesian airlines, the report explains. Mr. Ambrosini would observe Indonesia`s Road Map to Safety program and monitor the work of the directorate general of air communications in supervising the operations of Indonesian airlines, Antara relates. Indonesia had asked the European Union to focus on PT Garuda Indonesia, PT Mandala Airlines, PT Premi Air and PT Air Fast in order to speed up the lifting of the flight ban on them, the report adds. ========= J A P A N ========= ALITALIA SPA: Lazio Court Says Exclusive Sale Talks Legitimate -------------------------------------------------------------- The Italian Regional Administration Court of Lazio has confirmed the legitimacy of the exclusive talks to sell the Italian government's 49.9% stake in Alitalia S.p.A. to Air France-KLM S.A., various reports say. The ruling rejected an appeal filed by AirOne S.p.A. to the Feb. 20, 2008 decision by the Italian Regional Administration Court of Lazio that rejected its petition to declare null and void a Dec. 28, 2007 decision of Italy's Ministry of Economy and Finance to commence exclusive talks with Air France. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. Air France said it will seek approval from the new Italian government chosen following the April 13-14, 2008, snap elections, for any agreement to acquire Italy's stake in Alitalia. Air France managing director Pierre Henri Gourgeon that the exclusive talks may go beyond the April elections due to various procedural steps, Radiocor relates. AirOne said it would present a binding offer once it wins its appeal, adding that its offer would be financially backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc. TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera may join AirOne in its Alitalia bid. Reuters said MyChef may also participate in the offer. AirOne chairman Carlo Toto is inviting businessmen from the Lombardy region to join the airline's bid. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/ -- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. DELPHI CORP: Court Extends Lease Decision Deadline to March 31 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York to further extended the time within Delphi Corp. and its debtor- affiliates may assume or reject unexpired leases of nonresidential real property through and including the earlier of: (a) the Effective Date of the Debtors' confirmed First Amended Joint Plan of Reorganization; and (b) May 31, 2008. If the Debtors file a subsequent motion to extend the Lease Decision Deadline before the expiration of the applicable deadline for a particular lease, and that motion is set for hearing on the next omnibus hearing date that is at least 20 days away or is filed in accordance with Rule 6006-1(c) of the Local Bankruptcy Rules for the U.S. Bankruptcy Court for the Southern District of New York, the Debtors' deadline to assume or reject the underlying lease is automatically extended until the later of: -- the date set forth in any subsequent Court order; -- three business days after the Court enters an order ruling on the Subsequent Motion; and -- May 31, 2008. As reported in the Troubled Company Reporter on Feb. 11, 2008, the Debtors are lessors or lessees with respect to roughly 80 unexpired leases of nonresidential real property, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates. Certain of the Real Property Leases, he noted, are among the Debtors' primary assets and are vital to their business. The First Amended Plan provides for the assumption of all of the Real Property Leases on the Plan Effective Date. The Debtors' Lease Decision Deadline expired Feb. 29, 2008. The Proposed Lease Decision Deadline will be subject to the terms of the Plan and Plan Confirmation Order, Mr. Butler assured the Court. The Proposed Deadline, he added, coincides with the Debtors' current deadline to solicit acceptances of a reorganization plan. The Debtors have remained and fully intend to remain current with respect to all outstanding postpetition rental obligations under the Real Property Leases, Mr. Butler continues. The non- debtor parties to the Real Property Leases will not be prejudiced by the proposed extension because the Debtors are making payments under the Real Property Leases as they come due, he said. If the Lease Decision Deadline is not extended, the Debtors may face uncertainty with respect to their ability to assume or reject the Real Property Leases if the Plan does not become effective by the current Feb. 29, 2008 Lease Decision Deadline, Mr. Butler maintained. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As previously reported in the Troubled Company Reporter-Europe, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. Moody's said the outlook is stable. Standard & Poor's Ratings Services in the meantime said it expects to assign its 'B' corporate credit rating to Delphi upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Court Extends Deadline to Remove Civil Actions ----------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York extended Delphi Corp. and its debtor-affiliates' deadline to remove pending judicial and administrative proceedings through the earlier of: (a) 30 days after the effective date of the Debtors' Joint Plan of Reorganization; and (b) 30 days after the Court enters an order terminating the automatic stay with respect an action. As reported in the Troubled Company Reporter on Feb. 11, 2008, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, related, the Debtors are parties to more than 200 judicial and administrative actions pending in various courts or administrative agencies throughout the United States. The Debtors' deadline to remove Actions in accordance with Section 1452 of the Judiciary and Judicial Procedure Code and Rule 9027 of the Federal Rules of Bankruptcy Procedure expired on Feb. 29, 2008. The Debtors expect to emerge from Chapter 11 during the first quarter of the year. An extension, Mr. Butler asserted, was necessary in the event that the Debtors' bankruptcy emergence date is delayed beyond Feb. 29, 2008. An extension, he added, will afford the Debtors an opportunity to make fully informed and prudent decisions concerning the possible removal of the claims and causes of action in the Actions, thus protecting the Debtors' valuable right to adjudicate the Actions economically if current or future circumstances warrant their removal. The Debtors' request will not prejudice any party whose proceeding is removed from seeking remand under Section 1452(b) of the Bankruptcy Code, Mr. Butler pointed out. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As previously reported in the Troubled Company Reporter-Europe, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. Moody's said the outlook is stable. Standard & Poor's Ratings Services in the meantime said it expects to assign its 'B' corporate credit rating to Delphi upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. ========= K O R E A ========= ACTUANT CORP: Acquires Superior Plant Services for US$57 Million ---------------------------------------------------------------- Actuant Corporation has acquired Superior Plant Services, LLC, for approximately US$57 million in cash. Funding for the completed transaction came from the company's revolving credit facility. SPS will operate as part of Hydratight, within Actuant's Industrial Segment. Brian Kobyl