T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, March 11, 2008, Vol. 9, Issue 50 Headlines A U S T R A L I A AALEN PTY: Liquidator to Present Wind-Up Report on March 25 ADVANCED PROCESS: Final Meeting Slated for March 26 AGRICULTURAL BANK: To Separate Rural & Urban Units in IPO AED OIL: Sinopec Stake Buy Prompts Share Price Hike ALLCO FINANCE: Administrators Took Control of Major Shareholder BETTA DENTAL: Liquidator to Give Wind-Up Report on March 26 BROADWAY 96 PTY: Members Receive Wind-Up Report DELUXE HOMES: Members & Creditors Meeting Set for March 20 FITZGERALD GROUP: Placed Under Voluntary Liquidation G & A FISHER: To Declare First Dividend on March 20 JP MORGAN (AUSTRALIA): Fitch Cuts Ratings on Two NCM-04's Notes JP MORGAN (AUSTRALIA): Fitch Junks Rating on Class E Notes LINDSAY G. QUINN: Commences Liquidation Proceedings RUDY LEHMANN: Placed Under Voluntary Liquidation RIMSLOW PTY: Joint Meeting Slated for April 15 TAHA RESEARCH: Members Resolve to Liquidate Business ZINIFEX LIMITED: Sees Major Acquisition Once Merger Sealed C H I N A & H O N G K O N G & T A I W A N BANK OF CHINA: Sees China's Raising of Interest Rates CHINA AOXING: To Restate Financial Statements to Correct Errors CHINA EASTERN: Dubbed as Last Years' Most Punctual Airline CHINA EASTERN: Increases Flights to India CHINA MINSHENG: Seeks to Buy European Rivals CROWN WORLDWIDE: Moody's Assigns Provisional Ba2 Debt Rating ICBC: Makes Sufficient Provisions to Cover Subprime Investments I N D I A BAUSCH & LOMB: Picks Paul Sartori as Corporate Vice President EMCO LTD: Gets INR325-Crore Order from Maharashtra Electricity GENERAL: Closes Wentzville Plant Over Axle Workers' Strike GENERAL MOTORS: 18 Plants to Lay Off Workers Due to Axle Strike GENERAL: Contracts Provide for Union Workers When Laid-Off ICICI BANK: Repurchases US$50MM of US$2BB 6.625% Bonds Due 2012 SHREE RAMA: Board to Discuss Scheme Status on March 15 Meeting SOUTHERN IRON: Fixes March 7, 2008 as Scheme's Effective Date TATA MOTORS: Chairman Eyes Stake in Ferrari, Report Says TATA MOTORS: Sells 54,181 Vehicles in February 2008 I N D O N E S I A BANK INTERNASIONAL: Maybank Leads Bidding for Company Stake CILIANDRA: Fitch Says Ratings UnAffected by Auction Notice CILIANDRA PERKASA: Moody's Revises Rating Outlook to Negative GOLDEN AGRI-RESOURCES: Unit Increases Stake in Langgeng Subur GOLDEN AGRI-RESOURCES: Posts Results for FY Ended December 2007 HILTON HOTELS: Names Steven Goldman as Real Estate President J A P A N ALITALIA SPA: New Gov't to OK Sale if Flagship Status Retained ALITALIA SPA: Foreign Minister Warns of Possible Bankruptcy FORD MOTOR: Luxury Brands Buyer Says It Won't Flip Jaguar SAPPORO HOLDINGS: Steel Partners Ups Bid to JPY875 A Share K O R E A ARROW ELECTRONICS: To Buy Achieva's Components Distribution Biz DURA AUTOMOTIVE: Files Revised Plan of Reorganization DURA AUTOMOTIVE: Wants to Hire SRR as Valuation Consultant KOREA EXPRESS: Regulators Expected to Deny HSBC's Takeover Plan MAGNACHIP: To Work with Elmos for Automotive Semiconductor Dev't * Korean Banks' Overseas Earnings Fall 4.6 % M A L A Y S I A ASPEN INSURANCE: Promotes Mason to Marine & Energy Deputy Head IDAMAN UNGGUL: Incurs MYR34.76MM Net Loss in Qtr. Ended Dec. 31 IDAMAN UNGGUL: Receives MYR349-Mil. Offer for Lambang Pertama SHAW: Wins US$3-BB Worldwide Planning Program & Design Contract TENGGARA OIL: SC Approves Proposed Restructuring Scheme N E W Z E A L A N D ARTZ HAIR: Appoints Brown and Neilson as Liquidators CLEAR CHANNEL: Extends Closing of Notes Tender Offer to March 18 CLC CONSTRUCTION: Taps Brown & Neilson as Liquidators DAVE ORRELL: Appoints Brown & Rodewald as Liquidators FELTEX CARPETS: Shareholders Commence Action in High Court HUMAN COMMERCIALS: Taps Brown & Neilson as Liquidators LANDINGS MANAGEMENT: Creditors' Proofs of Debt Due on March 18 LIFT TRANZ: Appoints Brown & Neilson as Liquidators MEDICTRONIX NEW ZEALAND: Taps Brown & Neilson as Liquidators MINGINUI VILLAGE: Names Brown & Rodewald as Liquidators MOMENTUM MEDIA: Names Brown & Rodewald as Liquidators OCEANFRONT HOLDINGS: Appoints Brown & Rodewald as Liquidators SCORPIC VENTURES: Names Brown & Neilson as Liquidators STROWAN LIMITED: Fixes March 18 as Last Day to File Claims P H I L I P P I N E S FORD MOTOR: Philippine Unit's Shipments Soar in 2007 S I N G A P O R E ATOP HOLDINGS: Creditors' Meeting Slated for April 2 FRANKEL MOTOR: Court Enters Wind-Up Order SCOTTISH RE: May Sell Life Reinsurance & Wealth Management Units ZEN28 PTE: Members to Receive Wind-Up Report on April 8 T H A I L A N D FEDERAL-MOGUL: Inks New Stock Option Pact with CEO Jose Alapont - - - - - ================= A U S T R A L I A ================= AALEN PTY: Liquidator to Present Wind-Up Report on March 25 ----------------------------------------------------------- Aalen Pty. Ltd. will hold a final meeting for its members and creditors at 10:00 a.m. on March 25, 2008. During the meeting, the company's liquidator, D. J. Galgut at Coster Galgut Pty. Ltd., will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: D. J. Galgut Coster Galgut Pty Ltd 39 Clunies Ross Crescent Mulgrave, Victoria Australia About Aalen Pty. Aalen Pty. Ltd. is a special trade contractor. The company is located at West Heidelberg, in Victoria, Australia. ADVANCED PROCESS: Final Meeting Slated for March 26 --------------------------------------------------- Advanced Process Control Pty. Ltd. will hold a final meeting for its members and creditors at 9:45 a.m. on March 26, 2008. During the meeting, the company's liquidator, K. L. Sutherland at Bent & Cougle Pty Ltd, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne, Victoria 3004 Australia About Advanced Process Advanced Process Control Pty Ltd provides computer programming services. The company is located at Wantirna, in Victoria, Australia. AGRICULTURAL BANK: To Separate Rural & Urban Units in IPO --------------------------------------------------------- The Wall Street Journal reports that Agricultural Bank of China will be separating its urban and rural businesses. According to the company's president, Xiang Junbo, the rural business will be made part of a planned joint-stock company that will be sold to investors in an initial public offering. The split is part of the bank's restructuring plan, which has been put off for more than a year, the Journal relates. The delay is caused by the bank's scruples concerning its mission to serve the rural sector while keeping its goal of maximizing profit from its urban business. The Journal says that the bank has long been considered the weakest financial institution in the country. At the end of last year, it has about CNY3.2 trillion (US$478 billion) in loan outstanding with deposits of CNY5.2 trillion. Agricultural Bank of China -- http://www.abchina.com/en/hq/index.jsp/index.html-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. AED OIL: Sinopec Stake Buy Prompts Share Price Hike --------------------------------------------------- John Viljoen at Bloomberg News reports that AED Oil Ltd.'s shares rose as much as 43% to AU$2.65 On Monday after China Petrochemical Group's (Sinopec) unit bought a 60% stake in its largest field. Sinopec International Petroleum Exploration & Production Corp. bought rights in the Puffin and Talbot oil ventures for AU$600 million. Once the purchase is completed, Sinopec will start operating the field, whose output declined in recent months, Bloomberg relates. According to the same paper, China wants secure supplies outside the country to meet rising demand at home. China Petrochemical is the parent of China Petroleum & Chemical Corp., or Sinopec Corp., Asia's largest oil refiner. AED Oil Limited -- http://www.aedoil.com/-- operates solely in the oil production, and oil and gas exploration industry in Australia. The company is engaged in the planning and development of the Puffin Field. The company has incurred net losses of AU$20.56 million, AU$4.53 million and AU$0.91 million for the years ended June 30, 2007, 2006 and 2005. ALLCO FINANCE: Administrators Took Control of Major Shareholder --------------------------------------------------------------- Allco Finance Group Ltd.'s shares shed another 12% in March 10, as administrators took control of its major shareholder, Allco Principal Investments Pty Ltd., the Australian Associated Press reports. According to the report, Allco Finance stock closed six cents, or 11.43%, lower at 46.5 cents as the firm confirmed administrators were now in charge of its senior executives' personal investment vehicle, Allco Principal. Deepening investor concerns about Allco Finance's high debt and complex structure has stripped more than AU$2 billion off its value since it began the year trading around AU$6.20. Allco Finance's all-time high was AU$13.24, recorded in February 2007, and its all-time closing low was 39 cents on March 4, 2008, Australian Associated reports. Meanwhile, in a bizarre twist to shareholder blues over Allco Finance, a mortgage company with a similar name has been forced to issue a public statement distancing itself from the financing firm, Australian Associated relates. Perth-based mortgage broker Australian Finance Group Ltd. says it has received abusive phone calls, emails and letters and even a letter containing a mysterious white powder from some enraged Allco Finance investors. "If people could understand that we are not Allco, that would be fantastic," Australian Finance Group director Kevin Matthews told the news agency. Allco Principal recently appointed Stephen James Parbery, Mark Julian Robinson and Christopher Clarke Hill of PBB [not indicated what's PBB] as administrators, Australian Associated says. The appointment indicated that Allco Principal was likely to go into voluntary administration, after it was unable to secure a standstill agreement with its margin lenders, the news agency notes. Allco Principal's margin lenders are National Australia Bank Ltd. and Bank of Scotland International, Australian Associated says. The same administrators have also been appointed as administrators of 15 Allco Principal subsidiaries, including Allco HIT Holdings Pty Ltd., Allco Aviation Lease Surety Co. Pty Ltd., Allco Principals Property Pty Ltd. and Allco Principals Rail Pty Ltd. However, Australian Associated says there's no administrator appointed to Allco Managed Investment Funds Ltd., which is the responsible entity of Allco Principal. National Australia Bank had provided a AU$110 million loan to Allco Principal secured by shares in the parent company, Australian Associated relates. The proposed standstill agreement fell apart when Allco Financial failed to produce any additional security, Australian Associated says. Australian Associated further relates that National Australia Bank then moved to appoint an agent to possess about 34.48 million Allco Finance shares from Allco Principal and 4.091 million shares in listed fund Allco HIT Ltd. Bank of Scotland has appointed a receiver to 18.34 million Allco Finance shares and 3 million shares in Allco HIT. The total number of shares taken into possession by Allco Finance's margin lenders equate to about 14% of Allco Finance's issued capital. Allco Finance has a May 1, 2008 deadline to refinance a AU$250 million bridge facility, the news agency reports. It is also facing a potential requirement to repay another AU$900 million of senior debt in 90 days, if given notice. BETTA DENTAL: Liquidator to Give Wind-Up Report on March 26 ----------------------------------------------------------- Betta Dental Investments Pty. Ltd. will hold a final meeting for its members and creditors at 10:00 a.m. on March 26, 2008. During the meeting, the company's liquidator, K. L. Sutherland at Bent & Cougle Pty Ltd, will provide the attendees with property disposal and winding-up reports. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on August 24, 2006. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne, Victoria 3004 Australia About Betta Dental Betta Dental Investments Pty. Ltd. is a distributor of dental equipments and supplies. The company is located at Burwood, in Victoria, Australia. BROADWAY 96 PTY: Members Receive Wind-Up Report ----------------------------------------------- Frank John Metzke, Broadway 96 Pty. Ltd.'s appointed estate liquidator, met with the company's members on March 4, 2008, to provide them with property disposal and winding-up reports. In a report by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on June 19, 2007. The liquidator can be reached at: Frank John Metzke 370 Wyndham Street Shepparton, Victoria 3630 Australia About Broadway 96 Pty. Broadway 96 Pty. Ltd. provides plumbing, heating, and air- conditioning services. The company is located at Cobram, in Victoria, Australia. DELUXE HOMES: Members & Creditors Meeting Set for March 20 ---------------------------------------------------------- Deluxe Homes (Victoria) Pty. Ltd. will hold a final meeting for its members and creditors at 9:30 a.m. on March 20, 2008. During the meeting, the company's liquidator, Robyn Erskine and Peter Goodin at Brooke Bird, Insolvency Practitioners, will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone:(03) 9882 6666 About Deluxe Homes Deluxe Homes (Victoria) Pty. Ltd. provides engineering services. The company is located at Dandenong, in Victoria, Australia. FITZGERALD GROUP: Placed Under Voluntary Liquidation -------------------------------------------------------- The Fitzgerald Group Pty. Ltd.'s members agreed on Jan. 31, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed P. L. Rennie to facilitate the sale of its assets. The liquidator can be reached at: P. L. Rennie Bedfords Corporate Recovery & Advisory 695 Burke Road, Level 3 Camberwell, Victoria 3124 Australia About The Fitzgerald Group Located at Upwey, in Victoria, Australia, The Fitzgerald Group Pty Ltd is an investor relation company. G & A FISHER: To Declare First Dividend on March 20 --------------------------------------------------- G & A Fisher Pty. Ltd. will declare its first dividend on March 20, 2008. Creditors are required to file their proofs of debt by March 14, 2008, to be included in the company's dividend distribution. The Troubled Company Reporter-Asia Pacific reported that the company commenced liquidation proceedings on Nov. 27, 2006. The company's liquidator is: P. Newman HLB Mann Judd 160 Queen Street, Level 1 Melbourne, Victoria 3000 Australia About G & A Fisher Located at Mount Eliza, in Victoria, Australia, G & A Fisher Pty. Ltd. is an investor relation company. JP MORGAN (AUSTRALIA): Fitch Cuts Ratings on Two NCM-04's Notes --------------------------------------------------------------- Fitch Ratings has downgraded two and affirmed five classes of notes issued by J.P Morgan Trust Australia Limited as trustee of the Mobius NCM-04 Trust, as: -- AU$266,000,000.00 Class A1 affirmed at 'AAA' -- AU$93,600,000.00 Class A2 affirmed at 'AAA' -- AU$23,300,000.00 Class B affirmed at 'AA' -- AU$27,800,000.00 Class C affirmed at 'A' -- AU$18,900,000.00 Class D affirmed at 'BBB' -- AU$8,600,000.00 Class E downgraded to 'B/DR2' from 'BB' and -- AU$7,700,000 Class F downgraded to 'CC/DR5' from 'B' (removed from Rating Watch Negative) Mobius NCM-04 Trust was originally issued in November 2006 and is collateralized by a pool of non-conforming residential mortgages originated by Mobius Financial Services Pty. Limited. The transaction has paid down from initial liabilities of AU$450 million to current liabilities of approximately AU$271 million. To date, all principal receipts have paid down the Class A notes to approximately 50% of their initial amount. Fitch has reviewed the transaction's performance and modelled forward the prospective outlook for the transaction taking into account the fact that whilst no charge-offs of notes have occurred to date, there are significant 90+ day arrears within the remaining pool that may negatively impact the transaction in future. Loans greater than 90 days past due are currently running at 21% of the portfolio. While the percentage figure is magnified by the reducing balance of the portfolio, which currently exhibits a repayment rate of approximately 45%, Fitch's analysis has focused on the likely realized losses associated with loans currently in arrears. As part of its analysis, Fitch requested and was provided with updated valuations on all loans in the portfolio with arrears greater than 30 days. As many of these valuations were done through automated valuation systems, Fitch took a conservative view of the updated valuations by taking the lower end of any range provided, and by further haircutting any valuations that were done through electronic means. Fitch then extended this analysis to loans for which updated valuations were not available to arrive at an assessment of expected losses under each rating scenario. This analysis shows that class E and F notes are expected to be impacted by losses under these scenarios resulting in downgrades listed above. For other classes of notes, the rapid pay down of the transaction and the sequential pay down structure has strengthened the enhancement. Class A1, A2, B, C and D notes now exhibit subordination levels of 50.7%, 33.4%, 24.8%, 14.5% and 7.5% respectively. The transaction also has a reserve account of AU$1.1 million. In view of this, Classes A1, A2, B, C and D notes have been affirmed. Fitch will continue to closely monitor performance of the transaction. Fitch's Distressed Recovery ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report titled "Structured Finance Distressed Recovery Ratings," which is available on the Fitch Ratings website at http://www.fitchratings.com JP MORGAN (AUSTRALIA): Fitch Junks Rating on Class E Notes ---------------------------------------------------------- Fitch Ratings has taken rating actions on these notes issued by J.P Morgan Trust Australia Limited as trustee of the Mobius NCM- 03 Trust, as: -- AU$385,000,000.00 Class A1 affirmed at 'AAA' -- AU$85,250,000.00 Class A2 affirmed at 'AAA' -- AU$45,100,000.00 Class B affirmed at 'A' -- AU$12,650,000.00 Class C affirmed at 'BBB' -- AU$12,100,000.00 Class D affirmed at 'BB' -- AU$6,600,000.00 Class E downgraded to 'CCC/DR3' from 'B' (removed from Rating Watch Negative) Mobius NCM-03 Trust was originally issued in October 2005 and is collateralized by a pool of non-conforming residential mortgages originated by Mobius Financial Services Pty. Limited. The transaction has paid down from initial liabilities of AU$550 million to current liabilities of approximately AU$167 million. To date, all principal receipts have paid down the Class A notes to approximately 19% of their initial amount. Fitch has reviewed the transaction's performance and modelled forward the prospective outlook for the transaction, taking into account the fact that whilst no charge-offs of notes have occurred to date, there are significant 90+ day arrears within the remaining pool that may negatively impact the transaction in future. Loans greater than 90 days past due are currently running at 16% of the portfolio. While the percentage figure is magnified by the reducing balance of the portfolio, which exhibits a repayment rate of approximately 50% in the past six months, Fitch's analysis has focused on the likely realized losses associated with loans currently in arrears. As part of its analysis, Fitch requested and was provided with updated valuations on all loans in the portfolio with arrears greater than 30 days. As many of these valuations were done through automated valuation systems, the agency took a conservative view of the updated valuations by taking the lower end of any range provided and by further haircutting any valuations that were done through electronic means. Fitch then extended this analysis to loans for, which updated valuations were not available to arrive at an assessment of expected losses under each rating scenario. This analysis shows that class E notes are expected to be impacted by losses under these scenarios resulting in the downgrade listed above. For other classes of notes, the rapid pay down of the transaction and the sequential pay down structure has strengthened the enhancement. Class A, B, C and D notes now exhibit subordination levels of 49.1%, 22.17%, 14.61% and 7.37% respectively. The transaction also has a reserve account of AU$2.4 million. In view of this, Class A, B, C and D notes have been affirmed. Fitch will continue to closely monitor the performance of the transaction. Fitch's Distressed Recovery ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report titled "Structured Finance Distressed Recovery Ratings," which is available on the Fitch Ratings website at http://www.fitchratings.com LINDSAY G. QUINN: Commences Liquidation Proceedings --------------------------------------------------- Lindsay G. Quinn Corporation Pty. Ltd.'s members agreed on December 18, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Michael James Humphries and Laurence Andrew Fitzgerald to facilitate the sale of its assets. The liquidators can be reached at: Michael James Humphries Laurence Andrew Fitzgerald BDO Kendalls Business Recovery & Insolvency (NSW-VIC) Pty. Ltd. Chartered Accountants The Rialto, Level 30 525 Collins Street Melbourne, Victoria 3000 Australia About Lindsay G. Quinn Lindsay G Quinn Corporation Pty. Ltd. provides miscellaneous personal services. The company is located at Melbourne, in Victoria, Australia. RUDY LEHMANN: Placed Under Voluntary Liquidation ------------------------------------------------ Rudy Lehmann and Associates 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 Sinclair Wilson to facilitate the sale of its assets. The liquidator can be reached at: Sinclair Wilson Accountants & Business Advisors 177 Koroit Street Warrnambool, Victoria 3280 Australia About Rudy Lehmann Located at Highton, in Victoria, Australia, Rudy Lehmann and Associates Pty. Ltd. is an investor relation company. RIMSLOW PTY: Joint Meeting Slated for April 15 ---------------------------------------------- Rimslow Pty. Ltd. will hold a joint meeting for its members and creditors at 11:00 a.m. on April 15, 2008. During the meeting, the company's liquidator, Adrian Brown at Ferrier Hodgson, will provide the attendees with property disposal and winding-up reports. According to the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on February 22, 2006. The liquidator can be reached at: Adrian Brown Ferrier Hodgson 600 Bourke Street, Level 29 Melbourne, Victoria 3000 Australia Telephone:(03) 9600 4922 Facsimile:(03) 9642 5887 Australia About Rimslow Pty. Rimslow Pty. Ltd. is a distributor of industrial and commercial machineries and equipment. The company is located at Hallam, in Victoria, Australia. TAHA RESEARCH: Members Resolve to Liquidate Business ---------------------------------------------------- Taha Research and Development Pty. Ltd.'s members agreed on January 25, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Robyn Beverley McKern to facilitate the sale of its assets. The liquidator can be reached at: Robyn Beverley McKern c/o McGrathNicol IBM Centre, Level 8 60 City Road Southbank, Victoria 3006 Australia Telephone:(03) 9038 3100 Web site: http://www.mcgrathnicol.com About Taha Research Taha Research And Development Pty. Ltd. is involved with commercial, physical and biological research. The company is located at Melbourne, in Victoria, Australia. ZINIFEX LIMITED: Sees Major Acquisition Once Merger Sealed ---------------------------------------------------------- Australian miners Zinifex Limited and Oxiana Ltd. will be looking at major acquisitions once their AU$12 billion merger goes through, Zinifex CEO Andrew Michelmore, as quoted by The National. The size of the merged group, which will be the world's second-largest producer of zinc and a substantial producer of copper, lead, gold and silver, would enable it to look at acquisitions of up to AU$4 billion, Mr. Michelmore added. "I think both of us have been looking at how to grow our businesses," Mr. Michelmore told the Australian Broadcasting Corp. "There are some smaller opportunities, but there are some bigger opportunities, and I think they are a big step for each of the companies standing alone. If we put the two companies together, that's a much lower-risk opportunity for us, much better to fit into the portfolio, and I think that's what size does." According to The National, the two companies announced last week they had agreed to a "merger of equals", with shareholders of both miners taking a 50% stake each in the merged entity. The group will be renamed once the merger is approved by shareholders and implemented in June or July. The merged company would be looking to further build its copper and zinc base, but it will look also for other opportunities, The National reports, citing Mr. Michelmore. "We certainly like copper and zinc, we like the futures of them, so we'll continue to build those as our base blocks, Mr. Michelmore told The National. "But we certainly like other metals. Both of us like nickel." The National notes that Zinifex has made a recommended AU$852 million takeover offer for nickel miner Allegiance Mining NL. Both Zinifex and Oxiana have been seen as possible takeover targets by major global miners like Switzerland's Xstrata, and Mr. Michelmore did not rule out the combined company facing a bid. "You can never say never," Mr. Michelmore told The National. "I think one of the things we're seeing as we put information together is that the combined company is an even better opportunity for someone to pick up." About Zinifex Limited As reported on Mar 5, 2008, Fitch Ratings has placed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating on Rating Watch Positive, following the announcement of a merger proposal with Oxiana Limited, whereby both companies will own 50% each of a new company yet to be named. The rating watch is expected to be resolved within six months by which time the structure of the merged entity, including its debt structure, will be clearer. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== BANK OF CHINA: Sees China's Raising of Interest Rates ----------------------------------------------------- Bank of China Limited forecasts that China is likely to raise its interest rates for once or twice in the first half of this year as the country faces inflation caused both by increasing costs and rising demand, Xinhua News Agency reports. Bank of China forecast the consumer price index in February would hit 8.3%. The bank ranked inflation as the top threat to China's economy, which it said already had the preconditions of a demand-driven inflation, though the overall price hikes caused by rising demand were yet to occur, Xinhua relates. If prices remained high for a long period, people would expect further rises and hoard commodity products, further pushing up prices, Bank of China told Xinhua. Xie Fuzhan, head of China's National Bureau of Statistics, acknowledged that the CPI would climb even higher in February because of the severe winter weather that damaged crops, cut power supplies and disrupted traffic in eastern and southern China, Xinhua reports. According to official figures gathered by Xinhua, the inflation indicator reached 7.1 in January, its fastest pace in more than 11 years. Mr. Xie, who is also a member of the central bank monetary policy committee in China, said they were yet to discuss whether to raise interest rates in the near future, but the tight monetary policy would not change, Xinhua notes. Bank of China also noted that the unconventional increase of foreign direct investment in January, saying it signaled more capital inflow into China on anticipation of faster yuan appreciation, Xinhua says. Bank of China advised the central bank to expand exchange elasticity. The Chinese bank also predicted that China's yuan would appreciate faster against the U.S. dollar in the first half, but would gradually slow down, Xinhua relates. Beijing-based Bank of China Limited -- http://www.bank-of- china.com/en/static/index.html -- is a Chinese bank that has presence in all major continents. The company offers financial services through its global network of over 560 overseas offices in 25 countries and regions. In Hong Kong and Macao, Bank of China is one of the local note issuing banks. Traditional commercial banking constitutes the majority of Bank of China's business, which is composed of corporate banking, retail banking and banking with financial institutions. The company has branches in Singapore, Japan, Kazakhstan, London, Grand Cayman, and the United States. Moody's Investors Service gave the bank a bank financial strength rating of D- on May 4, 2007. The Troubled Company Reporter-Asia Pacific reported that Fitch Ratings affirmed the bank's D individual rating on Dec. 14, 2006. CHINA AOXING: To Restate Financial Statements to Correct Errors --------------------------------------------------------------- On Feb. 28, 2008 China Aoxing Pharmaceutical Company Inc. was notified by its independent accountant, Paritz & Co., P.A., that the company's financial statements for the year ended June 30, 2007, should not be relied upon. In addition, the information provided by Paritz & Co. indicated that the financial statements contained in these filings also should not be relied upon: Form 10-QSB for the period ended December 31, 2006; Form 10-QSB for the period ended March 31, 2007; Form 10-KSB for the year ended June 30, 2007; Form 10-QSB for the period ended September 30, 2007; Form 10-QSB for the period ended December 31, 2007. The restatement of China Aoxing's financial statements is necessary to correct the improper accounting treatment for the sale of 1,058,000 units of securities by China Aoxing in the fall of 2006. The units consisted of either one convertible debenture and four common stock purchase warrants or one share of common stock and four common share purchase warrants. About China Aoxing Incorporated in the State of Florida and headquartered in Jersey City, New Jersey, China Aoxing Pharmaceutical Company Inc. (OTC BB: CAXG) is a pharmaceutical company engaged in research, development, manufacturing and marketing of a range of narcotics and pain management pharmaceutical products in generic and formulations. The company's operating subsidiary, Hebei Aoxing Pharmaceutical Co. Inc. is a corporation organized under the laws of the People's Republic of China. * * * Paritz & Company P.A., in Hackensack, New Jersey, expressed substantial doubt about China Aoxing Pharmaceutical Co. Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2007 and 2006. The auditing firm said that the company's current liabilities substantially exceeded its current assets. CHINA EASTERN: Dubbed as Last Years' Most Punctual Airline ---------------------------------------------------------- China Eastern Airlines ranked first last year in on-time performance among the three domestic airline giants, Xinhua News reports citing the General Administration of Civil Aviation (CAAC). According to the report, CAAC said that in 2007, 84.32% of the flights of China Eastern arrived and left as scheduled. General Manager Cao Jianxiong told the news agency that the staff members of the company have made great efforts to provide a punctual, safe flight experience for their customers. The company had set up emergency handling centers at Shanghai's Hongqiao and Pudong airports to ease the pressure of flight delays caused by bad weather and other emergencies, Mr. Jianxiong added. The other top two domestic carriers, the report relates, are Air China and China Southern Airlines. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA EASTERN: Increases Flights to India ------------------------------------------ China Eastern Airlines Corporation Limited has decided to add one more flight to its existing frequency of four flights a week on the Delhi-Beijing route, Travelbiz Monitor reports. The airline plans to start the additional flight in summer this year, and to increase the frequency to daily flights on the route from winter this year. China Eastern will also introduce the A 330 on Indian routes, Travelbiz Monitor says. Currently, the airline is also considering Mumbai and Bangalore as its new destinations. Edward Zhu Xuemin, China Eastern's chief representative in India, told TravelBiz Monitor that the market is growing rapidly. "It is a good time for us to increase our frequency, Mr. Xuemin said. "The move is also on account of the upcoming Olympic Games to be held in Beijing, for which we have found a lot of interest among Indian travelers." China Eastern currently is focused on operating more flights from Indian destinations and adding more frequencies to the existing routes, TravelBiz Monitor says. The airline is working closely with China National Tourist Office in India and have together organized several FAM trips for agents last year. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA MINSHENG: Seeks to Buy European Rivals -------------------------------------------- China Minsheng Banking Corporation Ltd. plans to buy more overseas rivals, in particular in Europe, as part of its strategy to boost its global business, Reuters reports. But the Shanghai-listed bank's long-delayed plans for a Hong Kong listing to help fund its expansion plans could be further postponed after failing to settle on pricing, China Minsheng told Reuters. Dong Wenbiao, the bank's chairman, disclosed to Reuters that Minsheng Bank was in the market to buy banks that have existing branch networks in Hong Kong and Europe. He did not, however, disclose any potential targets, Reuters says. "I think it's a right time to make overseas acquisitions right now," Mr. Dong told Reuters, adding foreign assets are relatively cheaper than previously while investors may be overly worried about the economic impact from the U.S. credit crisis. "We are very keen to expand our business in some developed markets, especially Hong Kong and Europe, through acquisitions," Mr. Dong further added. Last October, Minsheng Bank agreed to buy 9.9% of San Francisco- based UCBH Holdings for more than US$200 million in the first strategic investment by a mainland Chinese bank in a U.S. bank, Reuters recalls. Mr. Dong also told Reuters his bank would not acquire other U.S. banks after the UCBH deal, which would give Minsheng Bank access to UCBH's more than 60-branch network across the United States. China Minsheng Banking Corporation Ltd.'s principal activity is the provision of commercial banking services that include absorbing public deposits, providing short term, medium term, and long term loans, making domestic and international settlement, discounting bills and issuing financial bonds. On July 16, 2007, the Troubled Company Reporter - Asia Pacific reported that on July 13, 2007, Fitch Ratings upgraded China Minsheng Banking Corp.'s individual rating to "D" from "D/E" while it affirmed its support rating at "4". CROWN WORLDWIDE: Moody's Assigns Provisional Ba2 Debt Rating ------------------------------------------------------------ Moody's Investors Service has 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- US$150 million 5-year senior notes. The outlook on both ratings is stable. The bond proceeds will be used to refinance a US$85 million 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 Worldwide, 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 the company. "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 Moody's lead analyst, Elizabeth Allen. "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 Ms. 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 the company's expansion strategy, small to medium-sized acquisitions in selected businesses and locations are also likely. Crown Worldwide reported adjusted debt/EBITDA of 4.5 and adjusted EBITDA interest coverage of 3.9 for Fiscal Year 2007. 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 Worldwide 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 the company'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 3.0-3.5 and/or adjusted EBITDA interest coverage exceeds 4.5-5.0 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- 5.0 and adjusted EBITDA interest coverage falling below 2.5-3.0. Headquartered in Wanchai, Hong Kong, Crown Worldwide Holdings Ltd. -- http://www.crownworldwide.com/-- offers relocation and mobility services as well as record storage and management services to multinational organizations and private individuals. It is the flagship company of the privately-held Crown & Grace Group. It also offers value-added logistics services in a number of areas. The company has a global footprint of more than 200 offices in over 50 countries, including Argentina, Brazil, Chile, Costa Rica and Mexico. ICBC: Makes Sufficient Provisions to Cover Subprime Investments --------------------------------------------------------------- The Industrial and Commercial Bank of China, the world's largest bank by value, has made "sufficient" provisions against U.S. subprime-related investments, Bloomberg News reports. During the National People's Congress in Beijing, President Yang Kaisheng of ICBC told Bloomberg that the bank is also planning more acquisitions overseas, although he did not elaborate more. Citing ICBC Chairman Jiang Jianqing, Xinhua News Agency reported last month that the bank has set aside enough money to cover potential losses for 30% of its US$1.2 billion of subprime securities. Beijing-based ICBC took a CNY429 million charge in the third quarter on subprime losses, Bloomberg relates. The company expects profit last year to have risen by more than 60%, boosted by gains in earnings on commissions from the sale of mutual funds and other products. The Industrial and Commercial Bank of China -- http://www.icbc.com.cn/-- is the largest state-owned commercial bank, and is authorized by the State Council and the People's Bank of China. ICBC conducts operations across China as well as in major international financial centers. On Sept. 18, 2006, the Troubled Company Reporter-Asia Pacific reported that Fitch Ratings affirmed ICBC's Individual D/E rating. On May 4, 2007, with the implementation of the new methodologies, Moody's Investors Service affirmed Industrial & Commercial Bank of China Ltd's Bank Financial Strength Rating at D-. The outlook for BFSR is stable. The long-term Foreign Currency Deposit Rating is A2. The short-term Foreign Currency Deposit Rating is P-1. The outlook for the long-term deposit rating is positive. ========= I N D I A ========= BAUSCH & LOMB: Picks Paul Sartori as Corporate Vice President ------------------------------------------------------------- Bausch & Lomb Inc. has appointed Paul H. Sartori, Ph.D., as its corporate vice president and chief human resources officer effective March 17. Dr. Sartori has more than two decades of experience in the healthcare, pharmaceutical and diagnostic industries. Most recently, he was senior vice president of organizational development and human resources for Boston-based BioTrove, Inc. From 2000 to 2007, he was a partner and principal at CHM Partners International, LLC, the international executive search and management consulting firm. He has also served as executive vice president, External Affairs and Human Resources at Novartis; senior vice president of Human Resources and Communications at CIBA-Geigy; and global vice president of Human Resources at CIBA-Corning Diagnostics. In addition, Dr. Sartori has held teaching and administrative roles at the University of Virginia and James Madison University. "I've known Paul for more than 20 years, and have great respect for his business judgment," said Gerald M. Ostrov, Bausch & Lomb chairman and CEO. "He has the ability to develop superior talent, and a sterling reputation for working with organizations to improve their effectiveness. We're fortunate that he's chosen to join Bausch & Lomb as we enter an extended period of growth." Dr. Sartori received his M.A.T. in history, Ph.D. in education and MBA from the University of Virginia, and his B.A. in history from Northeastern University. He is a member of the Board of Trustees of the Curry School of Education Foundation at the University of Virginia, and a member of the Advisory Board for the University of Virginia's Partnership for Leaders in Education. He and his wife will reside in Rochester, N.Y. David R. Nachbar, current chief human resources officer for Bausch & Lomb, has decided to leave the company after a transition period. He is considering various options including as-yet unnamed public service opportunities. Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * Bausch & Lomb Incorporated still carries Moody's Ba1 Corporate Family Rating, Ba1 Probability of Default Rating and Ba1 ratings on certain existing senior unsecured notes. Moody's revised the rating outlook to stable. EMCO LTD: Gets INR325-Crore Order from Maharashtra Electricity -------------------------------------------------------------- Emco Ltd. has received a prestigious order from the Maharashtra State Electricity Transmission Company Ltd. for execution of three 400kV new substations on turnkey basis at Bhusawal, Chakan, and in Khaparkheda. The substation will be used to evacuate power as MAHAGENCO is building up additional generating capacity of 1,250 MW at these locations for the State of Maharashtra. EMCO's scope involves design, engineering, supply, erection, testing and commissioning of the substations. Total value of the order is about INR325 crore. Commenting on the new order, Rajesh Jain, Emco chairman said, "These Projects are very important for the State of Maharashtra as the evacuation of the entire additional generation capacity being added by MAHAGENCO at these locations are to be done through them. We are happy and feel privileged that MSETCL has selected us for executing these prestigious Projects". Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com-- offers transmission and distribution solutions within the power sector in India. Emco's senior unsecured debt carries Credit Analysis and Research Limited's BB rating, effective May 23, 2007. GENERAL: Closes Wentzville Plant Over Axle Workers' Strike ---------------------------------------------------------- General Motors Corp. on Thursday ceased operations at another plant -- GM's Wentzville, Missouri facility -- over the continuing strike at its supplier, American Axle & Manufacturing Inc., according to various reports. The strike at American Axle is already at its two-week stretch and no agreement has been reached as of press time. American Axle indicated on its Web site that it will resume contract negotiations with the United Auto Workers union at noon on Thursday, March 6, 2008. No further details on the American Axle-UAW negotiation was provided. GM has about 20 facilities affected by the strike at American Axle as the supplier attempts to negotiate with the United Auto Workers. The Wentzville facility is one of the five additional facilities that GM intends to close, apart from the already closed six facilities. The other four facilities will be closed this week, reports relate. The Wentzville facility manufactures Chevrolet Express and GMC Savanna and has 2,000 workers. Around 20%, or more than 20,000, of GM's workers at its North American operations have been affected by the plant closures. Two Plants Idled Over Axle Dispute As reported in the Troubled Company Reporter on March 5, 2008, two additional production facilities in Moraine, Ohio, and Mishawaka, Indiana, have been affected by the labor dispute between the UAW and key supplier American Axle, according to a GM production statement. A Toledo Transmission plant is anticipated to be shutdown on March 10, 2008, and is expected 1,444 hourly and 219 salaried workers to be laid off. The TCR related on March 3, 2008, two more GM plants are likely to shutter this week as supplier American Axle continues to negotiate with UAW union workers on strike. GM's production of Chevrolet Silverado and GMC Sierra pickups at the Pontiac Assembly Center, which has 2,500 hourly and salaried employees, in Michigan, ceased after the first shift on February 28. A day after, GM production factories in Flint, Michigan, Fort Wayne, Indiana, and Oshawa, Ontario, were idled after the second shift, displacing a total of 9,503 hourly and salaried workers. UAW president Ron Gettelfinger and Vice President James Settles disclosed that members at American Axle began an unfair labor practices strike at on Feb. 26, 2008, following expiration of a four-year master labor agreement. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. GENERAL MOTORS: 18 Plants to Lay Off Workers Due to Axle Strike --------------------------------------------------------------- General Motors Corp. disclosed that 18 North American manufacturing facilities will be partially or fully affected by an ongoing labor dispute between GM's key supplier American Axle and Manufacturing Inc. and the United Auto Workers union. Around 16,336 hourly workers and 2,476 salaried employees will be displaced, according to a GM production statement. Plants that are partially affected are those still producing parts for GM facilities not affected by the strike. These plants are: * South Engine plant in Flint, Michigan; * Engine/Components plant in St. Catharines, Ontario; * Transmission plant in Baltimore, Maryland; * Components plant in Bay City, Michigan; * Casting plant in Bedford, Ohio; * Casting plant in Defiance, Ohio; * Components plant in Fredericksburg, Virginia; * Components plant in Parma, Ohio; * Transmission plant in Willow Run, Michigan; * Transmission plant in Ypsilanti, Michigan; * Engine plant in Tonawanda, New York; * Stamping plant in Flint, Michigan; * Stamping plant in Grand Rapids, Michigan; * Stamping plant in Indianapolis, Indiana; * Stamping plant in Mansfield, Ohio; * Stamping plant in Marion, Indiana; and * Stamping plant in Parma, Ohio. An engine plant in Romulus, Michigan will be fully affected by the strike and will cease producing V6 and V8 engines on March 10, 2008. Two Plants Idled Over Axle Dispute As reported in the Troubled Company Reporter on March 5, 2008, two additional production facilities in Moraine, Ohio, and Mishawaka, Indiana, have been affected by the rally of Axle union members. A Toledo Transmission plant is anticipated to be shut down on March 10, 2008, and is expected to lay off 1,444 hourly and 219 salaried workers. UAW president Ron Gettelfinger and Vice President James Settles disclosed that members at American Axle began an unfair labor practices strike at on Feb. 26, 2008, following expiration of a four-year master labor agreement. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/ -- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. GENERAL: Contracts Provide for Union Workers When Laid-Off ---------------------------------------------------------- Tom Wickman, General Motor Corp.'s Global Manufacturing Communications Manager, disclosed that its labor contracts with the United Auto Workers union, the Canadian Auto Workers union and the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers provide compensation for people on a short work week or regular layoff due to the impact of GM facilities on American Axle and Manufacturing Inc.'s workers union strike. In addition, plants listed as "partially impacted"are still producing parts for GM facilities not impacted by the strike. GM's practice, Mr. Wickham relates, is to notify its employees first when a particular plant will be affected by the protest. Once the employee notification occurs, the company provides basic information about the affected plant. Not all plants affected by the strike shuts down completely. Even though production stops, GM requires salaried employees to report to their jobs and may need to retain hourly employees to handle maintenance, sanitation or other work assignments. Some plants may have employees continue reporting to work for training purposes. These are reasons why the automaker is unable to release layoff figures -- numbers vary on a day-to-day basis. Mr. Wickham elaborates that with a handful of assembly plants idled by the strike, the company is experiencing some impact at its Powertrain and Stamping operations. Still, the layoffs are minor in scope as the plants continue to produce parts for other GM assembly plants that have not been impacted by the stike. Mr. Wickham says it's still premature to confirm on the amount of production lost to date and GM's plans of recovery. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. ICICI BANK: Repurchases US$50MM of US$2BB 6.625% Bonds Due 2012 --------------------------------------------------------------- ICICI Bank Ltd. has repurchased and subsequently extinguished bonds aggregating to the face value US$50 million out of the US$2 billion 6.625% bonds due on 2012 issued from its Bahrain Branch on Oct. 3, 2007, on a stand-alone basis. According to a disclosure filed with the Bombay Stock Exchange, the repurchase is carried out through open market purchases by a dealer acting on behalf of ICICI Bank. As reported by the Troubled Company Reporter-Asia Pacific on March 6, ICICI Bank Joint Managing Director Chanda Kochhar said that the bank has suffered US$50 million of investment losses this quarter in addition to the US$70 million provided for in the prior quarter. According to various reports, however, the government said the bank has lost US$264 million on account of the sub-prime crisis. 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. SHREE RAMA: Board to Discuss Scheme Status on March 15 Meeting -------------------------------------------------------------- Shree Rama Multi Tech Ltd.'s board of directors will hold a meeting on March 15, 2008, inter alia, to discuss the present status of the Scheme of Compromise and Arrangement under Section 391 of the Companies Act, a filing with the Bombay Stock Exchange reveals. The company is currently negotiating the Scheme, which is in the nature of compromises and arrangement with its lenders and shareholders. In view of the scheme being pending, the interest of INR392 million on borrowings for six month ended on Dec. 31, 2007, has not been provided in its latest financial statements. Shree Rama Multi-Tech Ltd, an Ahmedabad-based packaging solutions provider. Its products include multilayer film, laminated tubes and laminated webs. The company incurred at least two consecutive net losses -- INR950.8 million in the year ended March 31, 2007, and INR216.9 million in the year ended March 31, 2006. SOUTHERN IRON: Fixes March 7, 2008 as Scheme's Effective Date ------------------------------------------------------------- Southern Iron & Steel Company Ltd. has informed the Bombay Stock Exchange that the effective date of the Scheme of Amalgamation between the company and JSW Steel Ltd. is March 7, 2008. As previously reported by the Troubled Company Reporter-Asia Pacific, the High Court of Judicature at Mumbai sanctioned the Scheme on Feb. 22. Pursuant to the Scheme, the equity shareholders of Southern Iron would be issued shares of transferee company JSW Steel in the ratio of 1:22 -- one fully paid up equity share of INR10 each of JSW Steel will be issued and allotted for every 22 shares of INR10 each held in Southern Iron. The exchange ratio is based on the valuation report and the recommendations made by PriceWaterHouse Coopers, valuers tasked to value the business of the two companies. Headquartered in Salem, India, Southern Iron & Steel Company Limited is engaged in the business of manufacturing pig iron, billets, bars and rods. The company produces these products at its integrated steel plant located in the district of Salem, Tamil Nadu. The plant has a capacity of 0.3 metric tons per annum. Southern Iron and Steel Company Ltd. also has plants for the generation of power and production of oxygen. On July 20, 2006, CRISIL Ratings reaffirmed the outstanding 'D' rating on the INR280 million Non-Convertible portion of the Optionally Convertible Debenture Issue of Southern Iron & Steel indicating that the instrument continues in default. The original instrument has been restructured and is due for redemption in two installments on May 17, 2007, and May 17, 2008. TATA MOTORS: Chairman Eyes Stake in Ferrari, Report Says -------------------------------------------------------- While the world awaits for the announcement of a deal between Ford Motor Co. and Tata Motors Ltd. for the sale of the former's Jaguar and Land Rover units, a report says that Tata Group Chairman is interested in owning shares in Italy's Ferrari S.p.A. According to the Business Standard, Ratan Tata told L'Espresso in an interview, "I have two passions in my life - cars and aircraft. I have always dreamt of being able to be a fighter pilot and I confirm my desire to participate in the shareholding of Ferrari." The interview came after Mr. Tata was invited by Ferrari and Fiat Chairman, Luca Cordero di Montezemolo, to visit Italy, to see what the country offers in terms of business prospects, BS relates. As widely reported, 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. 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 thesale is expected to be announced since last week, 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. 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: Sells 54,181 Vehicles in February 2008 --------------------------------------------------- Tata Motors Ltd. reported a total sale of 54,181 vehicles (including exports) for the month of February 2008, nearly flat compared to 53,707 vehicles sold in February last year. Cumulative sales for the company were flat at 5,15,906 units. Commercial Vehicles The company's sales of commercial vehicles in February 2008 in the domestic market were 31,318 units, a growth of 12.4% compared to 27,859 vehicles sold in February last year. Medium and Heavy Commercial Vehicle sales stood at 16,894 units, a growth of 4% over February 2007, while Light Commercial Vehicle sales were 14,424 units, a growth of 25% over February 2007. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 2,77,378 units, a growth of 3.3% over last year. Cumulative M&HCV sales stood at 1,45,398 units, a decline of 6.6% over last year, while LCV sales for the fiscal were 1,31,980 units, a growth of 17% over last year. Passenger Vehicles The passenger vehicle business achieved total sales of 18,766 vehicles in the domestic market in February 2008, a decline of 12% over 21,322 units sold in February 2007. The Indica reported sales of 10,129 units, a decline of 19.5% over February 2007. The Indigo family registered sales of 3,322 units, a decline of 3.3% over February 2007, but a growth of 15% over January 2008. The Sumo and Safari accounted for sales of 5,315 units, a growth of 0.2% compared to February 2007, but a growth of 9.4% over January 2008. The Safari recorded a 15% growth over February 2007, with sales of 2,302 units in a month. Cumulative sales of passenger vehicles in the domestic market for the fiscal were 1,90,021 units, a decline of 5.5% over the same period last year. Cumulative sales of the Indica at 1,22,600 units, reported a decline of 5%. Cumulative sales of the Indigo family were 26,281 units, a decline of 12%. Cumulative sales of Sumo and Safari were 41,140 units, a decline of 1.5%. The Safari recorded a 22.3% growth with sales of 16,708 units. Exports The company's sales from exports at 4,097 vehicles in February 2008 declined by 9.5% compared to 4,526 vehicles in February 2007. The cumulative sales from exports in the current period at 48,507 units have recorded a growth of 4.3% over the previous 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. ================= I N D O N E S I A ================= BANK INTERNASIONAL: Maybank Leads Bidding for Company Stake ---------------------------------------------------------- Malaysia's Malayan Banking Bhd leads bidder for an indirect stake in Bank Internasional Indonesia Tbk, various reports say. According to Reuters, Singapore state investment firm Temasek plans to sell its 75% stake in Sorak Financial, which owns 55.78% of Bank Internasional. As reported in the Troubled Company Reporter - Asia Pacific on Dec. 26, 2007, under Bank Indonesia's single-presence policy, foreign parties cannot own a controlling stake in more than one Indonesian bank and must submit statements of compliance to this rule. Bank Indonesia, the report noted, set an end-2007 deadline for affected bank owners to decide on how they would comply with the rule. Foreigners controlling Indonesian banks have three options to comply with the single presence policy introduced by Bank of Indonesia, the TCR-AP related: -- merge the banks, -- set up a holding company for the banks, or -- sell down their stakes. 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. An unknown source said that Maybank would probably end up as the buyer since Maybank was prepared to pay a high price, Reuters notes citing The Financial Times. The Star Online News recounts that Maybank's plan acquire stake in BII is its third attempt to have a presence in Indonesia, after failing to acquire a stake in PT Bank Permata Tbk and PT Panin Life Tbk. Maybank said "it has indicated to Fullerton of its interest in acquiring its shareholding" in BII, The Star adds. Reuters relates that South Korea's Kookmin Bank has shown interest for a possible bid for BII. There has been speculation that some of Australia's major banks could be interested in buying Temasek's interest in BII, but sources at Commonwealth Bank of Australia Ltd. and Australia and New Zealand Banking Group Ltd., said they are unlikely to buy the stake, Reuters notes. Moreover, the Industrial and Commercial Bank of China and China Construction Bank have also been ruled out as bidders in the past week, as well as Bank Mandiri, the report adds. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on 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)'. CILIANDRA: Fitch Says Ratings UnAffected by Auction Notice ---------------------------------------------------------- Fitch said that the ratings of P.T. Ciliandra Perkasa are not immediately affected by the announcement made on March 6, 2008, by its holding company, First Resources Limited, that the Corruption Eradication Commission of Indonesia had announced in local newspapers that it will auction some of Ciliandra's assets in relation to a court case of Mr. Martias, a founder and former shareholder of the company. Ciliandra's Long term foreign and local currency Issuer Default Ratings are 'B+' while its National Long-term rating is 'A-(idn)' (A minus (idn)) and its senior unsecured debt rating is 'B+'. The outlook on all the ratings is positive. Ciliandra has indicated that the assets listed in KPK's announcement comprise approximately 16,000 hectares of oil palm plantation, representing roughly 20% of its total planted area. However, no action has been taken by KPK on these assets, and plantation operations are proceeding as usual. Ciliandra believes that there is no legal basis for KPK's actions and intends to challenge them in the Indonesian courts. Fitch will continue to monitor the situation closely and will take the appropriate rating action when more information on KPK's plans becomes available. Established and incorporated in Indonesia in 1992, PT Ciliandra Perkasa is an oil palm upstream operator based in Riau, Sumatera. The company owns 13 oil palm plantations totaling over 80,000 and 100,000 of planted hectares and unplanted hectares respectively as at the end of 2007. The company also has 6 palm oil crushing mills built between 1998 and 2006 with a total annual capacity of 2.1 million tonnes of fresh fruit bunches. CILIANDRA PERKASA: Moody's Revises Rating Outlook to Negative ------------------------------------------------------------ Moody's Investors Service has changed to negative from positive the outlook for PT Ciliandra Perkasa's B2 corporate family rating and secured rating on its US$160 million notes. "This rating action follows the announcement of the Corruption Eradication Commission of Indonesia that it will auction several properties in relation to a court case regarding Martias, one of the founders and former shareholders of First Resources Limited," says Wonnie Chu, an Analyst at Moody's. "Three of the assets mentioned are owned by Ciliandra, including PT Ciliandra Perkasa, PT Panca Surya Agrindo and PT Perkasa Intisawit Perkasa," says Chu, adding, "These assets together represent about 25% of Ciliandra's projected EBITDA contribution for 2008 and three out of six of its crushing mills." "Ciliandra's 2008 credit metrics -- Debt/EBITDA of 5x and EBITDA/Int of 2x -- after factoring in the loss of revenue from the three plantations and Moody's conservative palm oil price assumptions, are comparable with other B2 peers," says Chu. "At the same time, Ciliandra's strong liquidity position and long-dated debt maturity profile would support the B2 rating," says Chu. The negative outlook mainly reflects the uncertainties pertaining to Indonesia's legal system and the negative impacts that it could have on Ciliandra's operations and financial position. Moody's will continue to monitor developments and evaluate the resultant rating impact. Established and incorporated in Indonesia in 1992, PT Ciliandra Perkasa is an oil palm upstream operator based in Riau, Sumatera. The company owns 10 operating subsidiaries and affiliates which together own 13 oil palm plantations totaling 80,526 and 54,234 of planted hectares and unplanted hectares respectively as of June 30 2007. The company also has 6 palm oil crushing mills built between 1998 and 2006 with a total annual capacity of 2.1 million tonnes of fresh fruit bunches. Ciliandra is a private company with only one independent commissioner on its board. Through First Resources Limited (95.5% owner of Ciliandra) and PT Fangiono Perkasa Sejati (4.5% owner), the Fangiono family owns directly and indirectly over 70% of the company subsequent to the recent IPO. GOLDEN AGRI-RESOURCES: Unit Increases Stake in Langgeng Subur ------------------------------------------------------------- Golden Agri-Resources Ltd.'s Board of Directors disclosed that the company's unit PT Purimas Sasmita group has increased its shareholding in PT Langgeng Subur by acquiring 2,125 shares of IDR1,000,000 each at a nominal consideration. Langgeng Subur's book value was (IDR16,606,333,110) equivalent to approximately (SGD2.49 million). Langgeng Subur is incorporated in the Republic of Indonesia and its principal activities are the ownership and cultivation of ornamental plants. GAR"s effective interest in Langgeng Subur is now 95.21%. Golden Agri-Resources Ltd, headquartered in Jakarta, is the largest privately-owned oil palm plantation company in Indonesia. Listed on the Singapore Stock Exchange in 1999, it operates in Indonesia and China and is 48% owned by the Widjaja family. The Troubled Company Reporter - Asia Pacific reported on July 25, 2007, that Moody's Investors Service has affirmed Golden Agri-Resources Ltd's Ba3 corporate family rating. At the same time, Moody's has assigned Aa3.id national scale corporate family rating to GAR. Moody's said the ratings outlook is stable. GOLDEN AGRI-RESOURCES: Posts Results for FY Ended December 2007 --------------------------------------------------------------- Golden Agri-Resources Ltd. disclosed results for the full year and fourth quarter ended December 31, 2007. The Group posted record revenue of US$1.9 billion for the full year, a growth of66% from a year before. EBITDA for the year improved by 149% to US$535 million. This outstanding performance in 2007 was bolstered by record production of palm related products and record CPO prices. Net profit attributable to equity holders crossed the one billion dollar mark for the first time to US$1.2 billion, representing a leap of 148% from a year ago. The Group benefited not only from higher sales, but also a US$812 million gain from changes in fair value of its biological assets (net of income tax and minority interests). The net profit excluding gain from changes in fair value of biological assets for the year has more than tripled to US$353 million. The Group achieved spectacular year-on-year revenue growth of 117% in the fourth quarter, to reach a record US$658 million. EBITDA grew four times to US$171 million from a year ago. The outstanding performance was driven by higher CPO prices and improved weather conditions in the second half of 2007. Franky Widjaja, Group CEO, expressed delight with the overall results. He said: "This is indeed a Golden Era for Golden Agri. The outstanding results reaffirm the strength of GAR's vertically integrated operations and continuous investment in management expertise, R&D and information technology." Operational Highlights With 360,000 hectares of planted area, GAR is the largest plantation company in Indonesia. It also has the largest land bank in the world with 1.3 million hectares available for future expansion. With the largest mature planted area amongst its peers in Indonesia, GAR is favourably positioned to capitalize on the surge in CPO prices. GAR continues to be one of the market leaders in production efficiency. Production for palm related products for the full year reached a record high of close to two million tons, despite the impact of drought in Indonesia that prolonged into the first half of 2007. The average Fresh Fruit Bunch yield for the full year was 23.1 ton per hectare compared to 22.1 ton per hectare for the previous year. The continued growth in FFB yield was in line with the maturing of the plantation profile and improved weather conditions in the second half of 2007, which normalised production yield impacted by El Nino weather conditions during 2006. Financial Position As of December 31, 2007, the Group had total assets of US$5.0 billion and equity amounting to US$3.3 billion, which was an increase of 94% over the previous year. Rising free cash flows from plantation operations and a private placement conducted in April 2007 have also resulted in a lower gearing ratio. With a strong balance sheet and low gearing, the Group has ample flexibility to raise borrowings to fund future expansion. Outlook and Growth Strategy The Group remains well positioned to benefit from positive industry momentum, especially with the continued increase in CPO production, in line with increasing mature hectarage of GAR's plantations. Commenting on the outlook, Mr Widjaja said: "We are extremely excited about 2008. Fundamental demand for palm oil has strengthened to levels never before experienced. The long-term price outlook is very positive, supported by China and India's demand growth, the lower production cost of palm oil compared to other vegetable oils, and the limited supply of other vegetable oils." Going forward, the Group aims to expand its oil palm plantations via planting and acquisitions. It targets an additional planted area of 60,000 hectares in 2008. In addition, it will add downstream refining capacity to capture the increasing demand for palm oil products. Mr Widjaja added: "Our sterling performance is a solid platform for growth. We are committed to operational excellence and executing our expansion program that will regain our position as the world's largest palm oil producer in the next few years." About Golden Agri-Resources Golden Agri-Resources Ltd, headquartered in Jakarta, is the largest privately-owned oil palm plantation company in Indonesia. Listed on the Singapore Stock Exchange in 1999, it operates in Indonesia and China and is 48% owned by the Widjaja family. The Troubled Company Reporter - Asia Pacific reported on July 25, 2007, that Moody's Investors Service has affirmed Golden Agri-Resources Ltd's Ba3 corporate family rating. At the same time, Moody's has assigned Aa3.id national scale corporate family rating to GAR. The ratings outlook is stable. HILTON HOTELS: Names Steven Goldman as Real Estate President ------------------------------------------------------------ Hilton Hotels Corporation has appointed Steven R. Goldman as President, Global Development and Real Estate. Mr. Goldman is currently President and Chief Executive Officer of Sunstone Hotel Investors, a Real Estate Investment Trust that owns upscale hotels operated under various nationally recognized brands. Mr. Goldman will join Hilton as part of its new senior leadership team, which was announced today by Hilton's President and Chief Executive Officer, Christopher J. Nassetta. Mr. Nassetta commented: "I am thrilled to welcome Steve to Hilton at what is a very exciting time in the company's history. Since I joined the company three months ago, I have become even more convinced of the tremendous opportunity we have to drive the company's growth, particularly internationally, to create the global leader in our industry. I am confident that, given Steve's strong experience and impressive track record in the industry, he will be a great asset to our company." Hilton also announced three promotions within the company. Ian Carter, the current CEO of Hilton International, will assume the newly-created role of President, Global Operations, with responsibility for global operations, sales and revenue management. Mark Wang, the current Head of Hilton Grand Vacations, Asia, has been promoted to President, Hilton Grand Vacations, and will oversee all global timeshare operations. Additionally, Tim Harvey will take on an expanded role and in addition to being CIO will now oversee Shared Brand Services. Mr. Nassetta added: "These appointments reflect the great pool of talent we have within the company, as well as our ability to attract best-in-class talent to the business. I am pleased to have the majority of my senior leadership team now in place and I look forward to working together as we position Hilton as the premier global hospitality company." An industry veteran, Steven R. Goldman has been involved in all aspects of real estate acquisition, finance, development, and operations for more than 25 years. He will join Hilton Hotels from Sunstone Hotel Investors, where he has been President, CEO, and a member of the Board of Directors, since March 2007. Prior to Sunstone, Mr. Goldman was Executive Vice President Acquisitions and Development and Chief Investment Officer of Global Hyatt Corporation, where he led the global development efforts and was responsible for capital investment for all Hyatt-owned real estate worldwide. Mr. Goldman has also held senior management positions with Starwood Hotels and Resorts Worldwide, the Walt Disney Company, and Starwood Capital Group, a Connecticut-based private real estate investment firm. Mr. Goldman received his Bachelor of Science from Cornell University and his MBA from the University of Chicago. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Costa Rica, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Moody's Investors Service downgraded Hilton Corporation's Corporate Family Rating and senior unsecured ratings to B3 and Caa1, respectively. ========= J A P A N ========= ALITALIA SPA: New Gov't to OK Sale if Flagship Status Retained -------------------------------------------------------------- The next Italian government will approve the sale of its 49.9% stake in Alitalia S.p.A. to Air-France KLM S.A. if the carrier's national identity is retained, various reports say citing former Prime Minister and opposition leader Silvio Berlusconi. "The idea of an Air France-KLM-Alitalia public company is possible, but by maintaining Alitalia as a flagship carrier, with its own symbol and offices around the world," the former prime was quoted by Reuters as saying. Mr. Berlusconi had been against a possible takeover by Air France over Alitalia. He, however, stressed that an Italian buyer is much preferred, Bloomberg News relates. Mr. Berlusconi also reiterated his stand against downsizing Alitalia's operations in Milan. The former prime minister added that Italian may make a temporary "sacrifice" under exceptional circumstances to save Alitalia, Reuters relates. As reported in the TCR-Europe on Feb. 18, 2008, 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 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. The Forza Italia opposition party, headed by former Prime Minister Silvio Berlusconi and seen to win the upcoming election, said it will respect the possible sale of stake in Alitalia to Air France if it emerges as the victor. "If there were to be a contract already signed, it would be respected," Renato Brunetta, deputy coordinator of Silvio Berlusconi's Forta Italia, was quoted by Bloomberg News as saying. Alitalia and Air France-KLM SA have until mid-March to complete exclusive talks and present a final binding offer to the Italian government, which thereafter will decide whether to sell its stake to the French carrier. 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 carrier serves routes to Asia, Europe, North America and South America. 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. ALITALIA SPA: Foreign Minister Warns of Possible Bankruptcy ----------------------------------------------------------- Alitalia S.p.A. may succumb to bankruptcy if the talks to sell the Italian government's 49.9% stake in the carrier to Air France-KLM SA fails, MF-Dow Jones Newswire reports, citing outgoing foreign minister Massimo D'Alema. According to the report, Mr. D'Alema was commenting on remarks of former prime minister Silvio Berlusconi -- poised to return to power after April's snap election -- that Alitalia should be sold to a group of Italian investors. Alitalia and Air France-KLM SA have until mid-March to complete exclusive talks and present a final binding offer to the Italian government, which thereafter will decide whether to sell its stake to the French carrier. 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 carrier serves routes to Asia, Europe, North America and South America. 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. FORD MOTOR: Luxury Brands Buyer Says It Won't Flip Jaguar --------------------------------------------------------- Ford Motor Co. luxury brands buyer Tata Motors Ltd. denies speculations that it may sell Jaguar after closing the acquisition deal, Mike Spector and Edward Taylor of The Wall Street Journal report. Tata Group Chairman Ratan Tata said that Tata Motors Ltd. won't flip Jaguar, and further assured workers at Ford's Jaguar and Land Rover luxury brands that the company won't introduce drastic changes to the brands' business structure. "These are two iconic brands . . . the plan would be to retain the image and not to tamper it in any way,"Reuters quoted a 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 As reported in the Troubled Company Reporter on Feb 26, 2008, the announcement of the sale of the two luxury brands to Tata Motors is expected to be out on March 6 or 7. WSJ, 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. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. SAPPORO HOLDINGS: Steel Partners Ups Bid to JPY875 A Share ---------------------------------------------------------- Steel Partners Japan Strategic Fund (Offshore), L.P. has upped its offer for Sapporo Holdings Ltd., Bloomberg News reports. In its revised bid, Steel Partners raised its offer to JPY875 a share to raise its stake in the brewery to 33.3%, Bloomberg says. Steel Partners has previously offered JPY825 per share for about 66.6% stake in Sapporo Holdings. The revised bid came after Sapporo Holdings turned down Steel Partner on grounds that the deal is detrimental to stakeholders' interests. A panel formed by Sapporo to study the offer has concluded that Steel Partners is only likely to seek short-term profits. It added that the fund failed to properly outline its turnaround for the brewery. According to Bloomberg, the offer is higher that Sapporo's trading price at 2 pm on Monday. "Steel Partners wants to reach a happy middle ground," said Fumiyuki Nakanishi, an equity strategist at Sumitomo Mitsui Financial Group Inc. in Tokyo told Bloomberg's Tomoko Yamazaki. "They cannot cancel the takeover offer because if they do so, the stock price will plunge, reducing the value of their holdings." About Steel Partners Japan Strategic Fund Steel Partners Japan Strategic Fund (Offshore), L.P., is a Cayman Islands-registered fund management subsidiary of Warren Lichtenstein's Steel Partners and the biggest shareholder (18.6% as of Feb. 2007) of Sapporo Holdings. It submitted a proposal to Sapporo seeking approval to raise its stake to 66.6%. About Sapporo Holdings Sapporo Holdings Limited -- http://www.sapporoholdings.jp/ -- formerly known as Sapporo Breweries, brews beer and operates more than 200 beer halls and restaurants. Sapporo is one of Japan's oldest brewers, and is Japan's third largest brewing company, with brews ranging from its flagship Black Label to the pricier Yebisu. Sapporo also makes the low-malt happoshu brew. The company sells Guinness beer in Japan through its Sapporo Guinness Company and owns a beverage company that makes canned coffee, bottled water, and soft drinks. * * * As of May 16, 2007, the company carries Standard & Poor's Rating Service's 'BB' Long-Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings that were issued on Feb. 6, 2006; and Fitch Ratings' 'B' Short-term Foreign and Local Currency Issuer Default Ratings that were issued on March 14, 2006. ========= K O R E A ========= ARROW ELECTRONICS: To Buy Achieva's Components Distribution Biz --------------------------------------------------------------- Arrow Electronics Inc. signed a definitive agreement pursuant to which Arrow will purchase the components distribution business from parent company Achieva Ltd., a value-added distributor in Asia Pacific. Arrow anticipates the transaction will be immediately accretive to earnings in the first twelve months by US$0.01 to US$0.03 per share and will meet the company's acquisition objectives for return on invested capital. The transaction is subject to approval by the shareholders of Achieva Ltd. and is expected to close in the next 60 to 90 days. "Achieva will further strengthen our position in the ASEAN (Association of Southeast Asian Nations) and greater China markets and enhance our existing demand creation capabilities," said William E. Mitchell, chairman, president and chief executive officer of Arrow Electronics, Inc. "With this acquisition, Arrow will gain strong, established relationships with major semiconductor suppliers that will expand our line card as well as build upon existing partnerships. The Achieva management team is highly experienced and will be an impressive addition of bench strength to position Arrow for continued profitable growth in the Asia Pacific region," added Mr. Mitchell. Achieva is focused on creating value for its partners through technical support and demand creation activities. The company's product range covers semiconductor components such as application specific integrated circuits, programmable logic devices, digital signal processing chips and microchip- controller units. With over 200 employees, the company has a presence in eight countries (Singapore, Taiwan, China, India, Malaysia, Philippines, Thailand, and Korea) and primarily serves small and medium sized customers in the data communications, telecommunications, lighting, industrial and digital consumer end markets. Total 2006 sales were approximately $200 million. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austr