T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, March 19, 2008, Vol. 9, Issue 56 Headlines A U S T R A L I A ALAN THOMPSON: Joint Meeting Slated for March 27 CABINET FABRICATIONS: Members Opt to Liquidate Business CENTRO PROPERTIES: Advises Shareholders to Reject Pelorus Offer CHEZANN PTY: Liquidator to Present Wind-Up Report on March 26 EGNOPS HOLDINGS: Joint Meeting Slated for April 8 FRANCHI BROTHERS: Members & Creditors Meeting Set for April 8 GILLESPIE INVESTMENTS: Members to Hear Wind-Up Report on April 4 JOHN VORRATH: Members' Final Meeting Set for March 28 PIE H PTY: Liquidator to Give Wind-Up Report on March 27 ROCKHAMPTON WRECKING: Placed Under Voluntary Liquidation PSIVIDA LTD: Posts US$5.8 Mil. Net Loss in Qtr. Ended Dec. 31 SCO GROUP: Bankruptcy Court Sets April 21 as Claims Bar Date VERMONT VALUE: Members to Receive Wind-Up Report on March 27 WESTPOINT GROUP: Court Extends Asset Preservation of Execs C H I N A & H O N G K O N G & T A I W A N 1 UNION TRAVEL: Commences Liquidation Proceedings CHINA EASTERN: Drop in H-Share Price Makes CNAHC Bid Attractive CHINA LINK: Pays Dividend to Ordinary Creditors CITIC SECURITIES: Pulls Out Investment Plans with Bear Stearns COSMOTRON: Creditors' Proofs of Debt Due on April 7 DARRID ENGINEERING: Declares Dividend for Creditors GRAND HEAVEN: Creditors & Contributors to Meet on March 19 GRAND TOYS: Names Matthew Baile as Hong Kong Toy Centre CEO GRAND TOYS: Receives Nasdaq Letter for Non-Compliance HEALTHCARE SERVICES: Members Meeting Fixed for April 14 HUAXIA BANK: Plans CNY11.56-Billion Private Shares Placement INFINITY SERVICES: Commences Liquidation Proceedings MITSUBISHI BUSINESS: Creditors' Proofs of Debt Due on April 4 PETROLEOS DE VENEZUELA: Reports Financial Results for 2007 SHENYIN WANGOU: Members Meeting Fixed for April 28 TOWNGAS CHINA: Moody's Reviews Ba1 Rating for Likely Upgrade ZTE CORP: Inks Network Building Contract with Pakistan Telecom * CHINA: Moody's Says Structured Finance to Pick Up This Year I N D I A TATA MOTORS: Signs US$3-Billion Loan with Citigroup, JPMorgan TATA STEEL: Mulls Raising INR4,000 Crore Overseas I N D O N E S I A ADAM AIR: Loses Half of its Fleet After Default DIRECTED ELECTRONICS: Posts 4Q & FY 2007 Financial Results PARKER DRILLING: Discloses Resolution of Kazakhstan Tax Case PARKER DRILLING: 2007 Revenue Up 12% to US$654.6 Million PERUSAHAAN GAS: Plans to Build Gas Pipeline in North Sumatra J A P A N ALITALIA SPA: Board Accepts Air France-KLM's Binding Offer ALITALIA SPA: Board Approves 2008-2010 Industrial Plan DELPHI CORP: Moody's Holds (P)B2 Rating on US$3.7-Bln Term Loans GOODWILL GROUP: Incurs a Net Loss of JPY759MM for 6-Month Period MITSUBISHI MOTORS: To Offer Low-Emission Diesel Cars in Japan MITSUBISHI MOTORS: Signs Supply Deal with Nissan Motor K O R E A ARROW ELECTRONICS: Court Directs Return of US$12MM to Bridge HYNIX SEMICONDUCTOR: LG Electronics Denies Takeover Plan M A L A Y S I A APL INDUSTRIES: Submits Applications for Approval of Proposals MERGE ENERGY: Unit Receives Offer for MYR90MM Contract Project PAXELENT: Anwardi Bin Jamil Quits as Audit Committee Member N E W Z E A L A N D AUTOVALUE LTD: Creditors' Proofs of Debt Due on April 25 COLLINS PAPER: Wind-Up Petition Hearing Set for April 1 F.E.B. LTD: Court to Hear Wind-Up Petition on March 27 GFL FUND: Shareholders Resolve to Liquidate Business HENRY J PHILLIPS: Fixes April 25 as Last Day to File Claims IMRAN TRANSPORT: Subject to CIR's Wind-Up Petition PGL INDUSTRIES: Shareholders Opt to Liquidate Business ULTIMAX LTD: Fixes March 30 as Last Day to File Claims UNO WHERE: Commences Liquidation Proceedings XJL CARTAGE: Subject to CIR's Wind-Up Petition P H I L I P P I N E S ATLAS CONSOLIDATED: Unit Inks Power Supply Deal with Napocor MANILA ELECTRIC: Books PHP4.04 Billion Net Income in 2007 PRC LLC: Court Fixes May 1 as General Claims Bar Date PRC LLC: Has Until April 1 to File Disclosure Statement PRC LLC: Can Employ Weil Gotshal as Bankruptcy Counsel PRC LLC: Wants to Employ Regis McElhatton as CEO PSI TECHNOLOGIES: Reports US$3.3 Mil. Fourth Quarter Net Loss VULCAN INDUSTRIAL: Signs Exploration Deal with Ninety Niners S I N G A P O R E COB TECHNOLOGY: Wind-Up Petition Hearing Set for March 28 J MORITA (S): Court to Hear Wind-Up Petition on March 28 SCOTTISH RE: NYSE Regulation Suspends Shares from Trading SPACE TECHNOLOGIES: Subject to W Y Steel's Wind-Up Petition STATS CHIPPAC: Shareholders Approve US$813 Mil. Capital Payout T H A I L A N D DOLE FOOD: Posts US$57.5 Million Net Loss in Year Ended Dec. 29 * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= ALAN THOMPSON: Joint Meeting Slated for March 27 ------------------------------------------------ Alan Thompson Motors Pty. Ltd. will hold a joint meeting for its members and creditors at 9:45 a.m. on March 27, 2008. During the meeting, the company's liquidator, Paul Vartelas at B.K. Taylor & Co., will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Paul Vartelas B.K. Taylor & Co. Certified Practising Accountants 8/608 St Kilda Road Melbourne, Victoria 3004 Australia About Alan Thompson Alan Thompson Motors Pty. Ltd. is an automotive dealer. The company is located at Ringwood, in Victoria, Australia. CABINET FABRICATIONS: Members Opt to Liquidate Business ------------------------------------------------------- Cabinet Fabrications Pty. Ltd.'s members agreed on Feb. 8, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Robert Eugene Murphy and David James Hambleton to facilitate the sale of its assets. The liquidators can be reached at: Robert Eugene Murphy David James Hambleton R.E. Murphy & Co., Chartered Accountants 46 Edward Street, Level 9 Brisbane, Queensland 4000 Australia About Cabinet Fabrications Cabinet Fabrications Pty. Ltd. is a distributor of wood products. The company is located at Enoggera, in Queensland, Australia. CENTRO PROPERTIES: Advises Shareholders to Reject Pelorus Offer --------------------------------------------------------------- Centro MCS, Centro Properties Group's syndicate, claims that it does not support the resolutions proposed by Money Managers Limited and Pelorus Property Group Limited, Niraj Shah at Egoli News reports. Also, Centro MCS said it did not convene the Centro MCS 19 NZ/Institutional meeting to be held on April 2, writes Mr. Shah. The company, which has a strong track record of performance, does not believe the proposals put forward by Money Managers and Pelorus are in the best interests of its investors. In addition, Centro MCS advises that funding for the syndicate was at risk if it was removed as the responsible entity. Eli Greenblat, at The Age, reports that Pelorus has partnered with Money Managers, which won enough shareholder support to challenge Centro's control of Centro MCS 19 NZ/I by grabbing the management rights and the fees that flow from them. The Pelorus-Money Managers tandem, according to The Age, will ask unit holders to remove the debt-ridden Centro as manager at a meeting slated for April 10. Centro MCS, through a letter to its investors, recommends that they vote against the resolutions, Egoli adds. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a Melbourne, Australia-based company that comprises the operations of Centro Property Trust and its entities, which are engaged in property investment, property management, property development and funds management. The company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust, Heritage Property Investment Trust and Galileo Funds Management, as well as assumed full ownership of its United States management operations. The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CHEZANN PTY: Liquidator to Present Wind-Up Report on March 26 ------------------------------------------------------------- Chezann Pty. Ltd. will hold a joint meeting for its members and creditors at 11:30 a.m. on March 26, 2008. During the meeting, the company's liquidator, R. G. Mansell at R.G. Mansell & Associates, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: R. G. Mansell R.G. Mansell & Associates 118 Queen Street Melbourne, Level 3 Australia Telephone:(03) 9603 0090 Facsimile:(03) 9603 0099 About Chezann Pty. Chezann Pty. Ltd. is involved with trusts, except educational, religious, and charitable trusts. The company is located at Glen Iris, in Victoria, Australia. EGNOPS HOLDINGS: Joint Meeting Slated for April 8 ------------------------------------------------- Egnops Holdings Pty. Ltd. will hold a joint meeting for its members and creditors at 10:00 a.m. on April 8, 2008. During the meeting, the company's liquidator, Gregory J. Shilton at Gregory J Shilton & Co., will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Gregory J. Shilton Gregory J Shilton & Co. 58 Dow Street, Suite 4 South Melbourne, Victoria 3205 Australia About Egnops Holdings Egnops Holdings Pty. Ltd. is a distributor of metalworking machineries. The company is located at Thornbury, in Victoria, Australia. FRANCHI BROTHERS: Members & Creditors Meeting Set for April 8 ------------------------------------------------------------- Franchi Brothers Pty. Ltd. will hold a joint meeting for its members and creditors at 9:30 a.m. on April 8, 2008. During the meeting, the company's liquidator, Gregory J. Shilton at Gregory J Shilton & Co., will provide the attendees with property disposal and winding-up reports. The company commenced liquidation proceedings on Oct. 8, 2007. The liquidator can be reached at: Gregory J. Shilton Gregory J Shilton & Co. 58 Dow Street, Suite 4 South Melbourne, Victoria 3205 Australia About Franchi Brothers Franchi Brothers Pty. Ltd. provides plumbing, heating and air- conditioning services. The company is located at Toorak, in Victoria, Australia. GILLESPIE INVESTMENTS: Members to Hear Wind-Up Report on April 4 ---------------------------------------------------------------- Peter J. Moran, Gillespie Investments Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on April 4, 2008, at 11:30 a.m. 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 Dec. 14, 2007. The liquidator can be reached at: Peter J. Moran Moran Accountants 584 Nicholson Street, Carlton North Victoria 3054 Australia About Gillespie Investments Located at Hawthorn, in Victoria, Australia, Gillespie Investments Pty. Ltd. is an investor relation company. JOHN VORRATH: Members' Final Meeting Set for March 28 ----------------------------------------------------- Sule Arnautovic, Geoff Ridgeway and Rod Sutherland, John Vorrath Pty. Ltd.'s appointed estate liquidators, will meet with the company's members on March 28, 2008, at 11:00 a.m. to provide them with property disposal and winding-up reports. The Troubled Company Reporter-Asia Pacific reported that the company commenced liquidation proceedings on January 10, 2008. The liquidators can be reached at: Sule Arnautovic Geoff Ridgeway Rod Sutherland Jenkins Peake Chartered Accountants PO Box 1570 Geelong, Victoria 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 About John Vorrath John Vorrath Pty. Ltd. provides health and allied services. The company is located at Geelong, in Victoria, Australia. PIE H PTY: Liquidator to Give Wind-Up Report on March 27 -------------------------------------------------------- Pie H Pty. Ltd. will hold a joint meeting for its members and creditors at 10:30 a.m. on March 27, 2008. During the meeting, the company's liquidator, M. G. Mccann at Grant Thornton Chartered Accountants, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: M. G. Mccann Grant Thornton Chartered Accountants Ground Floor, 102 Adelaide Street Brisbane, Queensland 4000 Australia About Pie H Pty. Pie H Pty. Ltd. provides accounting, auditing, and bookkeeping services. The company is located at Labrador, in Queensland, Australia. ROCKHAMPTON WRECKING: Placed Under Voluntary Liquidation -------------------------------------------------------- Rockhampton Wrecking Company Pty. Ltd.'s members agreed on February 6, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Mark Swaffield to facilitate the sale of its assets. The liquidator can be reached at: Mark Swaffield c/o Cooper Grace Ward Lawyers GPO Box 834 Brisbane, Queensland 4001 Australia Telephone:(07) 3231 2565 Facsimile:(07) 3231 8565 About Rockhampton Wrecking Rockhampton Wrecking Company Pty. Ltd. operates automotive repair shops. The company is located at Rockhampton, in Queensland, Australia. PSIVIDA LTD: Posts US$5.8 Mil. Net Loss in Qtr. Ended Dec. 31 ------------------------------------------------------------- pSivida Limited reported a US$5.8 million net loss for the second quarter ended Dec. 31, 2007, compared to a US$10.6 million net loss for the same period ended Dec. 31, 2006. Revenue decreased by US$380,000, or 75%, to US$128,000 for the three months ended Dec. 31, 2007, from US$508,000 for the three months ended Dec. 31, 2006. The decrease was primarily attributable to a US$189,000 reduction of revenue related to evaluation agreements for certain of the company's drug delivery technologies and a US$191,000 decrease in royalty income earned from Bausch & Lomb on its sales of Retisert. Loss from operations was US$8.0 million, a US$464,000 decrease, when compared to loss from operations of US$8.5 million in the corresponding three months ended Dec. 31, 2006. The decrease is primarily due to the decrease in research and development and selling, general and administrative expenses. The company recorded income of US$1.8 million during the three months ended Dec. 31, 2007, as a result of the change in fair value of derivatives related to warrants issued in financing transactions denominated in AUUS$, compared to income of approximately US$4.1 million for the three months ended Dec. 31, 2006, related to embedded conversion features of its convertible notes. Interest income increased by approximately US$148,000, or 379%, to US$187,000 for the three months ended Dec. 31, 2007, from US$39,000 for the three months ended Dec. 31, 2006. Interest and finance costs decreased by approximately US$2.9 million, or 95%, to US$151,000 for the three months ended Dec. 31, 2007, from approximately US$3.1 million for the three months ended Dec. 31, 2006. Loss on extinguishment of debt totaled approximately US$3.3 million for the three months ended Dec. 31, 2006. In December 2006, the company entered into a second amendment agreement in connection with the Sandell convertible note. The terms of the second amendment agreement met the criteria that required the previously amended note to be accounted for as an extinguishment of debt and the second amended note to be accounted for as the issuance of a new convertible debt instrument. The terms of the amendment included issuance to Sandell of additional warrants to purchase (valued at US$1.7 million using the Binomial Tree Model). The calculation of the loss on extinguishment included the value of this non-cash consideration issued to Sandell. Other income for the three months ended Dec. 31, 2007, totaled US$361,000 and consisted of approximately US$405,000 of income attributable to a revenue sharing arrangement with the provider of the company's ADS program, partially offset by net foreign currency exchange losses. Deferred income tax benefit decreased to US$16,000 for the three months ended Dec. 31, 2007, from US$586,000 for the three months ended Dec. 31, 2006. The primary reason for the smaller benefit in the current period is that since June 30, 2007, valuation allowances have been required to offset essentially all net operating loss carryforwards created during the current period, which was not the case for the earlier period. The limitation on the ability to record deferred tax assets since June 30, 2007, was primarily attributable to the significant impairment write-down (and resulting decrease in the deferred tax liabilities) recorded in June, 2007 related to the Retisert intangible asset. At Dec. 31, 2007, the company's consolidated balance sheet showed US$107.7 million in total assets, US$13.0 million in total liabilities, and US$94.7 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2007, are available for free at http://researcharchives.com/t/s?2882 Going Concern Disclaimer Deloitte Touche Tohmatsu, in Perth Australia, expressed substantial doubt about pSsivida Limited'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 ponted to the company's recurring losses from operations and negative cash flows from operations. About pSivida Ltd. Headquartered in Perth, Australia, pSivida Limited (NASDAQ: PSDV) -- http://www.psivida.com/-- is a global drug delivery company committed to the biomedical sector and the development of drug delivery products. Retisert(R) is FDA approved for the treatment of uveitis. Vitrasert(R) is FDA approved for the treatment of AIDS-related CMV Retinitis. Bausch & Lomb owns the trademarks Vitrasert(R) and Retisert(R). pSivida has licensed the technologies underlying both of these products to Bausch & Lomb. The technology underlying Medidur(TM) for diabetic macular edema is licensed to Alimera Sciences and is in Phase III clinical trials. pSivida has a worldwide collaborative research and license agreement with Pfizer Inc. for other ophthalmic applications of the Medidur(TM) technology. pSivida conducts its operations from facilities near Boston in the United States, Malvern in the United Kingdom and Perth in Australia. SCO GROUP: Bankruptcy Court Sets April 21 as Claims Bar Date ------------------------------------------------------------ The United States Bankruptcy Court for the District of Delaware established April 21, 2008, as deadline for creditors of The SCO Group Inc. and its debtor-affiliates to file proofs of claim. All entities, including governmental units, which assert any prepetition claims against the Debtors, must deliver proofs of claim with Epiq Bankruptcy Solutions, LLC, the claims, noticing and balloting agent of these Chapter 11 cases. Original proofs of claims must submitted no later than 4:00 p.m., Eastern Time, at: The SCO Group Inc. c/o Epiq Bankruptcy Solutions LLC FDR Station P.O. Box 5012 New York, NY 10150-5012 Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. The Debtors exclusive period to file a Chapter 11 plan expires on May 11, 2008. VERMONT VALUE: Members to Receive Wind-Up Report on March 27 ------------------------------------------------------------ G. S. Andrews, Vermont Value Vet Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on March 27, 2008, at 3:00 p.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: G. S. Andrews G S Andrews & Associates 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Vermont Value Vermont Value Vet Pty. Ltd. provides veterinary services for livestock. The company is located at Vermont, in Victoria, Australia. WESTPOINT GROUP: Court Extends Asset Preservation of Execs ---------------------------------------------------------- The Australian Securities & Investments Commission has obtained orders and undertakings from the Federal Court of Australia in Perth that continue to preserve the assets of Norman Phillip Carey, Graeme Rundle and other entities associated with the Westpoint Group of companies (Richstar Enterprises Pty. Ltd., Bowesco Pty. Ltd., Keypoint Developments Pty. Ltd. and Silkchime Pty. Ltd.) These orders and undertakings will expire on June 30, 2008. The undertakings prevent the relevant defendants from dissipating assets or transferring those assets outside of Australia. The undertakings also prevent the relevant Westpoint entities from dealing or otherwise transacting with related entities or persons. In relation to Mr. Carey and the other Westpoint entities, these undertakings replace existing receivership/supervisory orders. Under the previous orders the receivers or supervisors oversaw how the defendants spent money and dealt with assets. The previous orders were originally sought so any relevant assets could be identified and preserved for creditors. As the process of asset identification is largely complete, the new undertakings can now relate specifically to those identified assets to ensure they are preserved for creditors in compensation proceedings. The assets subject to the new undertakings still cannot be dissipated or transferred offshore without the approval of the Court. The undertakings were accepted by both ASIC and the Court as being appropriate to protect the interests of relevant parties. Section 1323 of the Corporations Act 2001 only empowers the Court to make orders in various circumstances, including where ASIC is carrying out an investigation under the Australian Securities and Investments Commission Act 2001 or the Corporations Act 2001. In view of this, ASIC informed the Court at the hearing on March 12, 2008 that ASIC would not, in these proceedings, seek to extend asset preservation orders against Messrs Carey, Rundle, Dixon and Beck and the other Westpoint entities beyond June 30, 2008 on the basis that ASIC's relevant investigations into these defendants were likely to be substantially complete by June 30, 2008. Instead, ASIC will consider whether steps to preserve the property beyond June 30, 2008, should be taken in any civil proceedings issued against the relevant defendants. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== 1 UNION TRAVEL: Commences Liquidation Proceedings ------------------------------------------------- 1 Union Travel (Hong Kong) Limited's members agreed Feb. 29, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Yui Cho Yan and Lui Chi Tat Stephen to facilitate the sale of its assets. The liquidators can be reached at: Yui Cho Yan Lui Chi Tat Stephen Room 1702, 17th Floor Asian House 1 Hennessy Road Wanchai, Hong Kong CHINA EASTERN: Drop in H-Share Price Makes CNAHC Bid Attractive --------------------------------------------------------------- The recent drop in China Eastern's H-share price is to make the acquisition bid proposal of Air China's parent China National Aviation Holding Company more attractive to investors, Xihua News reports, citing CITICS Analyst Li Lei. H shares refer to the shares of companies incorporated in mainland China that are traded in the Hong Kong Stock Exchange. Many companies float their shares simultaneously in the Hong Kong market and one of the two mainland Chinese stock exchanges. According to the report, China Eastern's H-share price fell below 3.8 Hong Kong dollars, the bid price of Singapore Airlines to China Eastern, March 11, 2008, affected by the weak performance of stock market in Hong Kong. Li Lei believed that the H-share price's fall doesn't mean it is favorable to the proposal of Singapore Air, the report notes. The report relates that the analyst noted in the meantime that the purchase proposal to be selected is yet subject to approval of regulatory authorities. Latest report of Citigroup also deemed that the chance for China National to have a share participation in China Eastern depends on the attitude of relevant authorities on aviation industry restructuring and founding of large-scale airline company, the same report says. Earlier, Kong Dong, vice general manager of China National noted that even if the H-share price of China Eastern drops below HK$5, CNAHC will keep its offer, the report adds. 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 LINK: Pays Dividend to Ordinary Creditors ----------------------------------------------- China Link Oil Company Limited, which is in liquidation, paid 0.14% dividends to its ordinary creditors on March 7, 2008. The company's liquidator is: Kenny King Ching Tam Nan Fung Tower Room 908, 9th Floor 173 Des Voeux Road Central Hong Kong CITIC SECURITIES: Pulls Out Investment Plans with Bear Stearns -------------------------------------------------------------- Citic Securities formally acknowledged it had pulled out of a planned US$1 billion investment in Bear Stearns Cos., following JP Morgan's purchase of the troubled Wall Street firm, The Financial Times reports. Citic told the news agency that it had cancelled all negotiations over business co-operation with Bear Stearns, but would continue to look for other opportunities to expand overseas. "The basis and preconditions for strategic co-operation with Bear Stearns no longer exist," Citic told Financial Times. According to the report, the collapse of the Bear Stearns deal is another blow to Beijing's plan of internationalizing the nation's state-owned financial institutions through overseas acquisitions. In 2007, Chinese financial groups made a series of high-profile offshore investments. But most of them are now deeply in the red and officials in Beijing appear to be turning cautious. Bear Stearns and Citic announced a deal in Nov. 2007, in which the Chinese brokerage would first give Bear Stearns US$1 billion for about 6% of the US firm, Financial Times notes. Bear Stearns would eventually return the money for about 2% of Citic. But after shares in Bear Stearns and Citic fell more than 50%, the firms re-started talks in Feb. to increase the size of their stakes in each other, Financial Times reports. The two sides were also planning an Asia-wide investment banking joint venture. Wang Dongming, chairman of Citic Securities, told the Financial Times recently that he and other top financial officials were keenly aware of the experience of Japan in the 1980s, when that country's firms went on a buying spree in the west. Mr. Wang said Chinese firms were keen to avoid mistakes made by Japanese investors by better localising their businesses and utilizing talent in their target markets, Financial Times relays. In the case of Bear Stearns, Citic narrowly avoided getting burnt in part because of the long and laborious approval process imposed by Chinese regulators who were yet to sign off on the deal, Financial Times reports. State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services said that it had removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. COSMOTRON: Creditors' Proofs of Debt Due on April 7 --------------------------------------------------- The creditors of Cosmotron Manufacturing Company Limited are required to file their proofs of debt by April 7, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 29, 2008. The company's liquidator is: Lau Vui Cheong 7th Floor Hong Kong Trade Centre 161-167 Des Voeux Road Central Hong Kong DARRID ENGINEERING: Declares Dividend for Creditors --------------------------------------------------- Darrid Engineering Limited, which is in liquidation, declared its dividend for its creditors. Only creditors who were able to file their proofs of debt by December 25, 2007, were included in the company's dividend distribution. The company's liquidator is: E.T. O'Connell Official Receiver's Offices 10th Floor, Queensway Government Offices 66 Queensway, Hong Kong GRAND HEAVEN: Creditors & Contributors to Meet on March 19 ---------------------------------------------------------- Grand Heaven Footwear Company Limited will hold a joint meeting for its creditors and contributors at 10:30 a.m. and 11:30 a.m., on March 19, 2008. During the meeting, the company's liquidator, E.T. O'Connell at Official Receiver's Offices, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: E.T. O'Connell Official Receiver's Offices 10th Floor, Queensway Government Offices 66 Queensway, Hong Kong GRAND TOYS: Names Matthew Baile as Hong Kong Toy Centre CEO ----------------------------------------------------------- Grand Toys International Limited (Nasdaq: GRIN) announced the appointment of Matthew T. Baile as the Chief Executive Officer of Hong Kong Toy Centre Limited, the subsidiary responsible for sourcing and international sales for the Group, effective from March 17, 2008. Mr. Baile has served as a director of Grand Toys since July 2007. He has 20 years experience in consumer electronics product development, manufacturing and sales. As well as running his own product development consultancy firm, Centaurus Limited, he has worked with companies such as Philips, BMW and Rover Group as well as established consumer electronics brands such as Franklin and Lexibook. He has undertaken diverse management roles including product management, outsourcing consultancy, chief operating officer of Lexibook and Vice President of Product Development at Franklin Electronic Publishers Inc. He specializes in strategic planning, rapid product development and outsourcing. In his spare time he collaborates with the Hong Kong Government and the University of Science and Technology in research into micro fuel cells. Jeff Hsieh, Grand's Chief Executive Officer, commenting on the appointment, said "It is great news for Grand that Matthew is joining our team as he brings with him considerable expertise. We are all looking forward to working with him as we continue to develop the Group and add value to our shareholders." Grand Toys International licenses and distributes toys for various toy makers through a number of subsidiaries. In addition, the company's Hua Yang subsidiary manufactures pop-up, novelty, and board books. Through its Kord brand, the company makes party and paper products such as party hats, banners, paper plates, and costumes. The company is undergoing a restructuring to focus on its most profitable units. Going Concern Doubt After auditing Grand Toys International Limited's annual report for the period ended Dec. 31, 2006, its independent auditor, BDO McCabe Lo Limited, raised substantial doubt on the company's ability to continue as a going concern, citing its loss from operations for the year and substantial cumulative losses and working capital deficiency. The company has incurred recurring losses since 2004. The company's net loss from continuing operations (as restated) for the years ended December 31, 2006, and 2005 amounted to US$11.3 million and US$0.9 million, respectively. The company's cumulative losses as of December 31, 2006, and 2005 were US$48.0 million and US$25.5 million, respectively. Further, the company's working capital deficiency amounted to US$9.3 million as of December 31, 2006. GRAND TOYS: Receives Nasdaq Letter for Non-Compliance ----------------------------------------------------- Grand Toys International Limited (Nasdaq: GRIN) announced said in a filing with the SEC that it has received a letter from The Nasdaq Stock Market indicating that, for the last 30 consecutive trading days, the company's American Depositary Shares have not maintained a minimum market value of publicly held shares of US$1,000,000 as required for continued inclusion on Nasdaq by Marketplace Rule 4310(c)(7). Therefore, in accordance with Marketplace Rule 4310(c)(8)(B), the company will be provided 90 calendar days, or until May 1, 2008, to regain compliance. The Nasdaq letter states that, if at any time before May 1, 2008, the minimum market value of publicly held shares of the company's ADS is US$1,000,000 or more for a minimum of ten consecutive trading days, Nasdaq staff will provide written notification that the company complies with the MVPHS Rule. The Nasdaq letter also states that, if the company does not regain compliance with the MVPHS Rule by May 1, 2008, Nasdaq staff will provide written notification that the company's securities will be delisted. At that time, the Nasdaq Marketplace Rules would permit the company to appeal the Nasdaq staff's determination to delist its securities to a Nasdaq Listing Qualifications Panel. The company also announced that it has received a letter from The Nasdaq Stock Market indicating that, for the last 30 consecutive business days, the bid price of the company's ADS has closed below the minimum US$1.00 per share requirement for continued inclusion under Marketplace Rule 4310(c)(4). Therefore, in accordance with Marketplace Rule 4310(c)(9)(D), the Company will be provided 180 calendar days, or until July 30, 2008, to regain compliance. The Nasdaq letter states that, if, at any time before July 30, 2008, the bid price of the company's ADS closes at US$1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq staff will provide written notification that it has achieved compliance with the Minimum Bid Price Rule. The Nasdaq letter also states that, if the company does not regain compliance with the Minimum Bid Price Rule by July 30, 2008, Nasdaq staff will provide written notification that the company's securities will be delisted. Both letters have no effect on the listing of the company's ADS at this time. Grand Toys International licenses and distributes toys for various toy makers through a number of subsidiaries. In addition, the company's Hua Yang subsidiary manufactures pop-up, novelty, and board books. Through its Kord brand, the company makes party and paper products such as party hats, banners, paper plates, and costumes. The company is undergoing a restructuring to focus on its most profitable units. Going Concern Doubt After auditing Grand Toys International Limited's annual report for the period ended Dec. 31, 2006, its independent auditor, BDO McCabe Lo Limited, raised substantial doubt on the company's ability to continue as a going concern, citing its loss from operations for the year and substantial cumulative losses and working capital deficiency. The company has incurred recurring losses since 2004. The company's net loss from continuing operations (as restated) for the years ended December 31, 2006, and 2005 amounted to US$11.3 million and US$0.9 million, respectively. The company's cumulative losses as of December 31, 2006, and 2005 were US$48.0 million and US$25.5 million, respectively. Further, the company's working capital deficiency amounted to US$9.3 million as of December 31, 2006. HEALTHCARE SERVICES: Members Meeting Fixed for April 14 ------------------------------------------------------- The members of Healthcare Services Limited will have their final meeting on April 14, 2008, at 2701, 27th Floor, Wing On House, 71 Des Voeux, Road Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Yu Kwong Man 2701, 27th Floor Wing On House 71 Des Voeux Road Central, Hong Kong HUAXIA BANK: Plans CNY11.56-Billion Private Shares Placement ------------------------------------------------------------ Huaxia Bank Co Ltd. plans to issue CNY11.56 billion worth of new shares with three institutions in a private placement, Reuters reports. According to the report, this bank move will be subject to shareholder and regulatory approvals, and is aimed to boost the core capital. Germany's Deutsche Bank, Chinese steelmaker Shougang Group and power grid operator State Grid Corp will subscribe to the shares in the private placement, the report notes. Edmund Klaman of Reuters writes that the shares will be priced at 90% of the average price over the past 20 trading days. Moreover, the bank posted a 44% increase in net profit for 2007, the report adds. Headquartered in Beijing, Hua Xia Bank Co., Limited -- http://www.hxb.com.cn-- is a commercial bank that offers financial services to both corporate and individual clients. At the end of 2005, it has 27 branches and 257 offices nationwide. On September 21, 2005, Deutsche Bank entered into a preliminary agreement to purchase a holding of about 10% in Huaxia Bank, a medium-sized Beijing-based lender, for about US$200 million. People close to the situation said Deutsche had teamed up with another European financial institution to buy a total of about 15 per cent in Shanghai-listed Huaxia for more than US$300 million -- a slight premium to its market value. Fitch Ratings affirmed on September 5, 2006, Hua Xia Bank's Individual D/E and Support 4 ratings. Hua Xia Bank's Individual D/E rating reflects its weak capital position, inadequate profitability, and potential asset quality risks stemming from very rapid loan growth. Total loans expanded 29% in 2005, the second fastest growth among local peers. INFINITY SERVICES: Commences Liquidation Proceedings ---------------------------------------------------- 1 Union Travel (Hong Kong) Limited's members agreed March 7, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Tang Yau Sing and Pang Fung Ming to facilitate the sale of its assets. The liquidators can be reached at: Tang Yau Sing Pang Fung Ming Suites 2406-7 Man Yee Building 68 Des Voeux Road Central Hong Kong MITSUBISHI BUSINESS: Creditors' Proofs of Debt Due on April 4 ------------------------------------------------------------- The creditors of Mitsubishi Business (H.K.) Limited are required to file their proofs of debt by April 4, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 4, 2008. The company's liquidator is: Ng Kit Yui Flat E 5th Floor Block 3, Royal Ascot Shatin, New Territories Hong Kong PETROLEOS DE VENEZUELA: Reports Financial Results for 2007 ---------------------------------------------------------- Petroleos de Venezuela SA and its affiliates reported US$99.23 billion in revenues in 2007, compared to US$99.26 billion in revenues in 2006, according to El Universal. Of the almost US$100 billion in revenues last year, domestic gross income from exports and the domestic market accounted for US$66.01 billion -- about 19.4% or US$10.74 billion greater than in 2006, El Universal says, citing Petroleos de Venezuela's 2007 Annual Report the Ministry of Energy and Petroleum submitted to the National Assembly. El Universal notes that the increase in the gross income wasn't reflected in net profits. According to El Universal, Petroleos de Venezuela's domestic profit decreased for the second straight year. In 2006 Petroleos de Venezuela's domestic profit declined 65.7%, in 2007 it dropped 8.6% to US$1.81 billion. Petroleos de Venezuela's domestic net profits over the last two years decreased 68.6%, or US$3.9 billion. Petroleos de Venezuela kept 2.74% of its domestic revenues in 2007, while it kept 3.58% of its domestic revenues in 2006, the report says. El Universal relates that Petroleos de Venezuela's 2007 Report indicates that operational costs increased 22.2% or US$1.8 billion to US$9.89 billion in 2007, compared to 2006. Expenses totaled US$19.02 billion in 2007. Petroleos de Venezuela's consolidated "sales, management and overhead expenses" increased 65% in 2007, from 2006, El Universal says. Petroleos de Venezuela's global assets increased 33% to US$107.34 billion in 2007, with a part of such growth due to a 272% increase in restricted cash and a 106% increase in long- term accounts to collect. The accounts comprise the outstanding bills related to energy accords for oil supply and the bills to collect from related bodies and they increased to US$7.5 billion in 2007, compared to US$3.65 billion in 2006, El Universal relates. El Universal notes that regarding liabilities, accounts payable to suppliers rose 64% to US$10.46 billion in 2007, from US$6.37 billion in 2006. Petroleos de Venezuela's total liabilities increased 95% to US$53.51 billion. After social expenses and income tax both in Venezuela and abroad, the consolidated net profits of Petroleos de Venezuela and its affiliates decreased 35.4% to US$3.51 billion in 2007, compared to from US$5.45 billion in 2006, accounting for 3.5% of gross revenues, El Universal states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. SHENYIN WANGOU: Members Meeting Fixed for April 28 -------------------------------------------------- The members of Shenyin Wangou Charitable Limited will have their final meeting on April 28, 2008, at 28th Floor, Citibank Tower, Citibank Plaza, 3 Garden Road, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Wong Che Keung, Leslie 28th Floor Citibank Tower Citibank Plaza 3 Garden Road Central, Hong Kong TOWNGAS CHINA: Moody's Reviews Ba1 Rating for Likely Upgrade ------------------------------------------------------------ Moody's Investors Service has placed on review for possible upgrade the Ba1 corporate family and senior unsecured bond ratings of Towngas China Company Limited. "The review has been prompted by Moody's assessment of the company's improving operating fundamentals, due in turn to the operational and financial support provided by its largest shareholder, Hong Kong and China Gas (HKCG)," says Jennifer Wong, Moody's lead analyst for Towngas China. "Since the closing of the transaction in March 2007, whereby HKCG became the largest shareholder, HKCG has demonstrated strong evidence of providing stated support to Towngas China, such as the US$25 million shareholders loan and its pro-rata subscription to the right issue of US$90 million," says Wong. "Many key functions have already been integrated, including finance and treasury, internal auditing, as well as the marketing and health and safety departments, while corporate governance and risk management practices have seen an improvement," says Wong. Currently, Towngas China's ratings have been uplifted from its fundamental rating of Ba2 and the review will assess whether additional uplift is justified, based on the strong support provided by HKCG. The review will also focus on Towngas China's financial results for FY2007 and whether this translates into a turnaround over the results for FY2006, which were weak for its fundamental rating. Moody's will also evaluate its ability to sustain its improved operating and financial profile. Furthermore, the review will focus on the funding platform for the company's intended acquisitions and expansion plan in the next 1-2 years and the resultant rating impact. Towngas China, listed on the Hong Kong Stock Exchange, is primarily engaged in the downstream sale and distribution of natural gas and liquid petroleum gas in Mainland China. Its main operations include the provision of piped natural gas, the construction of gas pipelines, the sale of LPG in bulk and cylinders, and, to a lesser extent, the sale of LPG household appliances. ZTE CORP: Inks Network Building Contract with Pakistan Telecom -------------------------------------------------------------- ZTE Corporation won a tender from Pakistan Telecommunication Company Limited to build part of the country's largest WDM backbone transmission network. The project, an expansion of the PTCL 400G WDM backbone network also exclusively won by ZTE last year, will involve the deployment of a WDM ring in Quetta and a WDM chain from Rawalpindi to Mensehra. Upon completion of the two new projects, PTCL will have the most comprehensive WDM backbone network capable of providing the widest range of telecom services in the country. The network coverage will span up to 6000km running through most of the major cities and regions, carrying more than 60% of long haul data, voice, internet and other services in Pakistan. PTCL is Pakistan's largest fixed-line carrier with the biggest all-optical network in the country. To address increasing market demand for transmission bandwidth, PTCL commissioned ZTE last year to build a 400G WDM backbone network comprising ultra long-haul (ULH) and large-capacity Dense Wavelength Division Multiplexing (DWDM) as well as new- generation Multiple Spanning Tree Protocol (MSTP) telecom platforms. The entire network is based on advanced IP over DWDM solution to run PTCL's core IP backbone network using DWDM equipment. PTCL was very impressed with ZTE's highly efficient deployment expertise and outstanding performance of its network solutions resulting in the company awarding the two new WDM backbone network projects to ZTE. "It is a great opportunity to again partner with PTCL in developing their two new WDM backbone network projects," says Yang Jun, General Manager of Global Marketing, ZTE Transmission and Power Supply Products. "In a very competitive telecom market like Pakistan, we manage to provide customized services as well as our professional technical support to PTCL, based on PTLC's business requirements and future growth over the next couple of years." ZTE's expertise in network deployment has earned the trust of many renowned international carriers. The company helped built large-scale national backbone transmission networks for BSNL India, CableTel Bulgaria, AR Telecom Portugal, MTN Rwanda's MTN, Tunisie Telecom Tunisia, and national WDM/DWDM backbone transmission networks for Paktel Pakistan, GTS Central Europe, and Orbitel Columbia. About ZTE Corp. Headquartered in Shenzhen, China, ZTE Corp's principal activities are the production and sale of general system and communication terminal equipments. The group operates both in the domestic and international market. The Troubled Company Reporter-Asia Pacific reported on Dec. 1, 2006, that Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. Fitch said the rating outlook is stable. * CHINA: Moody's Says Structured Finance to Pick Up This Year ------------------------------------------------------------- A new report from Moody's Investors Service and its Beijing- based affiliate, CCXI, says that structured finance activity in Greater China in 2007 was low, and that any recovery is likely to be only gradual due to uncertainty in the global credit markets. The report, which covers Hong Kong, China and Taiwan, notes that total issuance in Greater China fell by 46% during 2007, or from US$9.6 billion in 2006 to US$5.2 billion last year. "China's market conditions were not favorable to domestic transactions during 1H07, and no cross-border deals closed during the year either. A total of four pilot deals did close in Q3 and Q4, but yearly issuance was still below the RMB60 billion (US$8 billion) expected by the market," says Moody's Assistant Vice President and co-author of the report, Dominique Gribot-Carroz, who also heads the company's business development activities for structured finance in Ex-Japan Asia. Nevertheless, the report also says that Chinese commercial banks will seek to securitize their existing assets this year so they can release their lending quotas; therefore, subject to official approval and market conditions, issuance from financial institutions is likely to rise in 2008. For non-financial institutions, new selective asset management plan regulations should be promulgated in 2008, and issuance may resume as a result. In Taiwan, issuance was dominated by five collateralised bond obligations out of the total 11 deals, all of which were domestic, which closed in 2007 -- though there were no deals closed in Q4 2007. "Of note, in Taiwan there were two asset-backed securitisation deals closed in 2007 with new types of underlying asset to the Taiwan market; namely the first equipment lease and ground lease receivables ABS," says Cheryle Chang, a Moody's analyst and also a co-author of the report. Meanwhile, Hong Kong's abundant liquidity provided alternative sources of funding and there were no deals closed during the year; market conditions may have also prevented activity towards the end of the year. "As and when global debt capital market conditions normalize, Moody's sees potential for new cross-border securitizations from China and a few RMBS in Hong Kong," says Gribot-Carroz, adding, "In Taiwan, RMBS and CLO could emerge if market conditions improve, while new CBO are likely even though we expect decreased numbers of issuances." The report, entitled "2007 Year-in Review and 2008 Outlook: Structured Finance in Taiwan, China and Hong Kong: Low Activity in 2007; Progressive Pick-up Expected in 2008," can be found at http://www.moodys.comand http://www.ccxi.com.cn/ It is part of a six-part series, called "Asian Structured Finance -- 2007 Year in Review and 2008 Outlook": -- Asian Structured Finance: Will the Year of the Rat be More Favorable for Cross-Border Markets? -- Structured Finance in South Korea: Growth Driven by CDO -- Structured Finance in India: Growth Continues -- Structured Finance in Taiwan, China and Hong Kong: Low Activity in 2007, Progressive Pickup Expected in 2008 -- Structured Finance in Southeast Asia: Cautious Environment But Growth Seen in Malaysian Domestic Market -- Regional Derivatives in Asia: Will 2008 Mirror 2007? ========= I N D I A ========= TATA MOTORS: Signs US$3-Billion Loan with Citigroup, JPMorgan -------------------------------------------------------------- Tata Motors Ltd. has signed a one-year US$3 billion bridging loan with Citigroup Inc. and JPMorgan Chase & Co. for the purchase of Ford Motor Co.'s Jaguar and Land Rover units, Dow Jones Newswires reports citing an unnamed person familiar with the deal. Citigroup and JPMorgan are Tata Motors' financial advisers on the acquisition, the report relates. As reported on Monday, the State Bank of India was tapped as lead manager in raising the funds. Tata Motors became the front-runner to buy Jaguar and Land Rover, outbidding Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. The announcement for a deal between Tata Motors and Ford is expected since Monday. According to a Reuters report, the company is already keen to close the Jaguar/Land Rover deal by the end of this month with the rising borrowing costs. "It's just a matter of time now ... Tata will obviously want to do the deal by March 31 so they can account for it this fiscal," Reuters quoted PriceWaterhouseCoopers Partner Abdul Majeed, as saying. The close of the 2007/08 fiscal year is on March 31, 2008. With the global credit crunch, a deal now would be more expensive than what was initially planned for, Mr. Majeed pointed out. 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 STEEL: Mulls Raising INR4,000 Crore Overseas ------------------------------------------------- Tata Steel Ltd. is eyeing raising INR4,000 crore by issuing non- fungible global depositary receipts that are not convertible into equity shares, The Economic Times reports. Tata Steel reportedly needs the money to part-finance its acquisition of Corus. Tata Steel bought Corus for US$12.9 billion in January last year, contributing US$4.1 billion to fund the purchase, raising US$6.14 billion of loans, and raising another US$2.66 billion as bridge finance, ET relates. The financial daily, citing unnamed merchant banking sources, Tata Steel has already initiated talks with institutional investors regarding the prospect of launching the instrument. The GDRs will not carry voting rights assuring non-dilution of the promoters' stake, ET notes. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. ================= I N D O N E S I A ================= ADAM AIR: Loses Half of its Fleet After Default ----------------------------------------------- Adam Air may face temporary closure after a leasing firm seized more than half its fleet when the airline defaulted on payments, various reports say, citing Company President Director Adam Suherman. According to Reuters, the shortage of available planes forced the airline to cut back several scheduled flights. Transportation Minister Jusman Djamal told The Associated Press that the airline has sliced its number of routes from 52 to 12. It has three weeks to prove it is economically viable, he added. Mr. Djamal also said that if the airline cannot meet its financial obligations, "its operating license will be revoked. Mr. Suherman told Reuters that the airline's 22 planes are all in default but he still trying to work out a way to restructure the payments. The firm needed a cash injection and faced a deadline later this week over insurance payments, he added. The Press notes that Mr. Suherman said there were no plans to file for bankruptcy. "There is a possibility starting on March 21 Adam Air will temporarily cease operations until there is a decision from the shareholders regarding the insurance premium. I have informed the shareholders that the company needs a cash injection," Mr. Suherman was quoted as saying. According to The Press, Global Transport Service and Bright Star Perkasa -- which together control 50% stake in Adam Air -- decided to sell their shares back to the owner citing financial mismanagement. Adam Air's "life expectancy is less than a month," said GTS director Gustiono Kustianto told Forbes. The airline has outstanding debt of US$14 million to aircraft leasing companies and free capital of just US$4.8 million, he said. Moreover, PT Bhakti Investama Tbk, an investment firm, which indirectly owns 50% of Adam Air, will sell its stake in the airline back to MR. Suherman, for IDR100 billion, Reuters relates citing Bhakti Lawyer Hotman Paris Hutapea. Bhakti has injected as much as IDR157 billion in the airline, since it agreed in April 2007 to buy a 50% stake, Hutapea added. Nury Sybli of Reuters writes that aside from the airline's financial problem, it is also facing safety issues. About Adam Air Adam Air, (incorporated as PT. Adam SkyConnection Airlines) -- http://www.adamair.co.id/-- is a privately owned airline based in Jakarta, Indonesia. It operates scheduled domestic services to over 20 cities and international services to Penang and Singapore. Its main base is Soekarno-Hatta International Airport, Jakarta. Although sometimes referred to as a low-cost carrier, it markets itself as an airline, which straddles between low-cost and traditional carriers by offering on-board service with meals, but at competitive prices, similar to the model adopted by Singapore-based Valuair. Prior to the crash of flight 574, it was the fastest growing low-cost carrier in Indonesia. DIRECTED ELECTRONICS: Posts 4Q & FY 2007 Financial Results ---------------------------------------------------------- Directed Electronics, Inc. disclosed financial results for the fourth quarter and year ended December 31, 2007. Fourth Quarter Financial Highlights: -- Q4 net sales and adjusted EBITDA of US$152 million and US$29 million, respectively -- Paid down US$40 million of term debt as compared to 2007 requirement of US$3 million resulting in 4.5x leverage, well within December 31, 2007, debt compliance ratio -- Pro forma EPS of US$0.41 per share, excluding US$146 million, net of tax,of non-cash impairment charges related to goodwill and intangibles. These results included US$0.05 of non-cash charges related to early debt retirement and certain tax expenses. Excluding these non-cash items, pro forma EPS was US$0.46 per share -- Including non-cash impairment charges, GAAP net loss for the fourth quarter of 2007 was (US$136.0) million, or (US$5.25) per diluted share Recent Operating Highlights: -- Expanded distribution with Polk Audio adding Best Buy and Apple Stores -- Renegotiated debt agreement increasing total leverage covenant -- Reduced risk in satellite radio business with amended SIRIUS agreement -- Appointed Kevin Duffy to the role of Chief Financial Officer -- Implementing plan to reduce US$5 million of annualized operating expenses -- Improved cash flow from working capital and operating improvements "In the fourth quarter, we accomplished most of our goals including strong sales and EBITDA performance, as well as paying down US$40 million in term debt bringing our full year 2007 debt down by US$75 million, or 22%," commented James E. Minarik, Directed's President and Chief Executive Officer. "For the full year of 2007, we experienced a sizeable sales mix shift as our higher margin, branded security and entertainment business increased by 30% due to a number of factors including our acquisition of Polk Audio, single digit increases in security and convenience, and continued strong performance of our Definitive Technology home audio speakers, while our satellite radio sales declined by 46%. This shift caused our security and entertainment business to increase from 51% of our sales in 2006 to 72% of our sales in 2007 while also driving our gross margins upwards by over 600 basis points to 35%. "Despite the strong fundamentals of our business including approximately US$59 million in adjusted EBITDA and over US$400 million in net sales for 2007, we have taken a non-cash impairment charge of US$146 million, net of tax, related to goodwill and intangibles resulting in a GAAP net loss of US$140 million. This was due primarily to the decline in our stock price as compared to our book value. However, while this is a large number, I want to emphasize that this was a non-cash charge and does not affect our on-going operations. "While the current economic environment and our market conditions may be more difficult than in the recent past, we expect the combination of our expanded distribution of home audio products at Best Buy and Apple Stores, our improved debt position, and our focus on cost cutting initiatives will ultimately lead to a stronger company." Fourth Quarter 2007 Versus Fourth Quarter 2006 Sales Net sales in the fourth quarter of 2007 were US$152.0 million compared with net sales of US$210.3 million in the fourth quarter of 2006. The fourth quarter sales decline was largely driven by lower satellite radio sales. Gross sales of security and entertainment products were US$101.2 million in the fourth quarter of 2007 compared with US$103.6 million for the same period in 2006. Security and convenience, as well as home audio sales, increased in Q4 driven by higher sales of remote start due to cold weather and successful new product introductions. These increases were offset by a decline in mobile video and an approximate US$4 million decrease in Directed-designed satellite radio accessories, which are included in mobile audio sales, due to the overall slowdown in the retail satellite radio market. As expected, fourth quarter 2007 gross sales of satellite radio products decreased 51.0% to US$56.2 million from US$114.0 million in the fourth quarter of 2006. Gross Profit For the fourth quarter of 2007, pro forma gross margin increased 610 basis points to 34.6% compared with 28.5% in the prior year. GAAP gross margin increased 850 basis points to 34.3% compared with 25.8% in the prior year. The increase during the period was due to the sales mix shifting to higher-margin security and entertainment product sales. Operating Expenses Pro forma operating expenses were US$26.3 million in the fourth quarter of 2007, or 17.3% of revenue, compared with US$27.4 million, or 13.0% of revenue, in the prior year. The company initiated a program in the first quarter of 2008 to improve operating efficiency and expects to save approximately US$5 million on an annualized basis. GAAP operating expenses were US$221.1 million in the fourth quarter of 2007 compared with US$28.8 million in the fourth quarter of 2006. The company's 2007 fourth quarter GAAP operating expenses included a US$194.8 million non-cash goodwill and intangible impairment charge. EBITDA and Net Income (Loss) Fourth quarter 2007 pro forma EBITDA (earnings before interest, taxes, depreciation and amortization, including goodwill and intangibles impairment) was US$28.8 million compared with US$34.7 million in the comparable prior year period. Adjusted EBITDA, which includes adjustments as defined by the company's lending agreement, was US$29.1 million in the fourth quarter. A quantitative reconciliation from the company's GAAP results to its pro forma and adjusted results is provided in the accompanying tables. Pro forma operating income was US$26.3 million in the fourth quarter of 2007 compared to US$32.5 million in the fourth quarter of 2006. Pro forma net income was US$10.7 million, or US$0.41 per diluted share, in the fourth quarter of 2007 compared with US$15.4 million, or US$0.59 million per diluted share, in the prior year period. Fourth quarter 2007 pro forma net income included US$0.02 per diluted share related to the write-off of non-cash financing fees associated with the company's US$39.2 million prepayment of debt, as well as US$0.03 of non-cash tax expense related to the delivery of previously scheduled RSU's. Excluding these non-cash charges, fourth quarter 2007 pro forma net income was US$0.46. GAAP net loss for the fourth quarter of 2007 was (US$136.0) million, or (US$5.25) per diluted share, compared with net income of US$10.8 million, or US$0.41 per diluted share, in the prior year. Full Year 2007 Versus Full Year 2006 Sales Net sales were US$401.1 million for the full year of 2007, a decrease of 8.4% compared with net sales of US$437.8 million for the full year of 2006. Gross sales of security and entertainment products were US$298.1 million for the full year of 2007, an increase of 29.9% compared with US$229.4 million for the full year of 2006. Gross sales of satellite radio products were US$117.9 million for the full year of 2007, a decrease of 46.4% compared with US$220.1 million for the full year of 2006. Gross Profit Pro forma gross profit increased 11.4% to US$143.1 million for the full year of 2007 compared withUS$128.5 million for the full year of 2006. Pro forma gross margin increased to 35.7% in 2007 from 29.4% in 2006. GAAP gross profit increased 15.6% to US$141.7 million for the full year of 2007 compared with US$122.6 million for the full year of 2006. GAAP gross margin increased to 35.3% in 2007 from 28.0% in 2006. The gross margin improvement was primarily due to increased sales of higher margin Polk Audio and Definitive Technology products combined with reduced sales of lower margin satellite radio receivers. Operating Expenses Pro forma operating expenses were US$95.2 million, or 23.7% of net sales, for the full year of 2007 compared with US$67.2 million, or 15.4% of net sales, in 2006. For the full year, operating expenses increased due to the full year inclusion of Polk Audio and the acquisition of Trilogix. GAAP operating expenses were US$295.5 million in 2007 compared withUS$71.0 million in 2006. The company's 2007 GAAP operating expenses included a US$194.8 million non-cash goodwill and intangible impairment charge and US$5.5 million related to the settlement of previously disclosed patent litigation. EBITDA and Net Income (Loss) For the full year of 2007, pro forma EBITDA was US$57.6 million compared with US$68.0 million for the full year of 2006. Adjusted EBITDA, which includes adjustments as defined by the company's lending agreement, was US$58.7 million in 2007. Pro forma operating income was US$47.9 million for the full year of 2007 compared with US$61.3 million for the full year of 2006. Pro forma net income for the full year of 2007 was US$10.7 million, or US$0.41 per diluted share. Full year 2007 pro forma net income included US$0.02 per diluted share related to the write-off of non-cash financing fees associated with the company's US$39.2 million prepayment of debt, as well as US$0.05 of non-cash tax expense related to the delivery of previously scheduled RSU's. GAAP net loss for 2007 was (US$140.0) million, or (US$5.40) per diluted share, compared with GAAP net income of US$21.0 million, orUS$0.81 per diluted share, in 2006. Balance Sheet and Cash Flows The company generated US$87.0 million of operating cash flow for the full year of 2007, compared with (US$20.2) million of operating cash used for the full year of 2006. The company primarily used operating cash flow to repay US$75.3 million of debt, including US$42.3 million of term debt, and to acquire Trilogix Systems. As of December 31, 2007, debt totaled US$266.9 million. The company was in compliance with all of its debt covenants as of December 31, 2007. The company recently renegotiated its term debt lending agreement including changes to the following key terms: -- Increased allowable total leverage ratio to 5.25x through Q1 2009 stepping down to 4.95x through Q4 2009 with step- downs thereafter consistent with the previous lending agreement. Prior to the amendment, the company's total allowable leverage ratio was 4.85x with step-downs to 4.60x as of June 30, 2008 and 3.95x as of June 30, 2009. -- Modified loan pricing to LIBOR plus 350 basis points when the company is under 4.5x of leverage and LIBOR plus 400 basis points when the company is over 4.5x of leverage. Previously, the company's debt was priced at LIBOR plus 250 basis points. Taking into account the increased interest rate margin, the company still expects interest expense to decline in 2008 as compared to 2007 due to carrying lower levels of debt, as well as due to a decline in LIBOR. -- Modified other terms including revolver availability, prepayment requirements, right to execute accounts receivable sale/securitization, and permitted add-backs to adjusted EBITDA. "For the latter part of 2007 and going forward, we are increasing our focus on improving our overall balance sheet and operating expense structure," stated Kevin Duffy, Chief Financial Officer. "Specifically, we have made improvements in our use of working capital by improving our accounts payable terms and implementing tighter A/R and inventory controls, which should ultimately translate into increased debt retirement. Additionally, with the support of our lenders, we have successfully amended our debt agreement to provide greater strategic and financial flexibility. "Over the last several months, we have also analyzed and identified cost savings across our operations. In the first quarter of 2008, we began implementing cost-cutting initiatives which we ultimately expect to generate US$5 million in annualized savings consisting of attrition, reduction in temporary labor, and operating efficiencies." During the fourth quarter of 2007, the company conducted its annual impairment testing required by SFAS No. 142, "Goodwill and Other Intangible Assets," for fiscal 2007. As a result of the evaluation, the company determined that the carrying amount of the goodwill exceeded its implied fair value, and recognized a non-cash impairment charge to goodwill and intangibles in the amount of US$146.4 million, net of tax. The goodwill impairment charge was primarily the result of the decline in the company's stock price. Guidance The company has elected to discontinue providing guidance for 2008 due to a number of factors including the historical volatility of satellite radio sales and the pending merger between SIRIUS and XM, which has also caused SIRIUS to suspend guidance. These factors, along with the slowing economy, have increased the difficulty of accurately predicting net sales and earnings. Conference Call and Webcast Directed Electronics will host a conference call and webcast to discuss its financial results today at 5:00 p.m. Eastern Time. The conference call may include forward-looking statements. This call will be webcast live on the Investor Relations section of the company's website at http://www.directed.comand will be archived and available for replay approximately three hours after the live event. The audio replay will be available through 11:59 p.m., March 31, 2008. The Company's financial results are also available online at http://www.directed.com/ To participate in the conference call, investors should dial 800-762-8779 ten minutes prior to the call. International callers should dial 480-248- 5081. A telephone replay of the call will be available through 11:59 p.m. Eastern Time on March 31, 2008, by calling 800-406-7325 (passcode: 3853738). International callers should dial 303-590-3030 and use the same passcode. About Directed Electronics Directed Electronics, Inc. (Nasdaq: DEIX) -- http://www.directed.com/-- is the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales and a major supplier of home audio, mobile audio and video, and satellite radioproducts. Directed offers a broad range of products, including security, remote start, hybrid systems, GPS tracking and navigation, and accessories, which are sold under its Viper(R), Clifford(R), Python(R), and other brand names. In the home audio market, Directed designs and markets Definitive Technology(R) and a/d/s/(R) premium loudspeakers. Directed's mobile audio products include speakers, subwoofers, and amplifiers. Directed also markets a variety of mobile video systems under the Directed Video(R), Directed Mobile Media(R) and Automate(R) brand names. Directed also markets and sells certain SIRIUS- branded satellite radio products, with exclusive distribution rights for such products to Directed's existing U.S. retailer customer base. The company has Asian Sales offices, including in Indonesia, Japan, Malaysia, Singapore, Korea and Thailand. The Troubled Company Reporter-Asia Pacific reported on Dec. 3, 2007, Moody's Investors Service downgraded Directed Electronics' corporate family rating to B2 from B1 and the probability of default rating to B3 from B2 following continued softness in the company's operating performance. At the same time, the ratings on the senior secured credit facility (term loan and revolver) were also downgraded to B2 from B1 and the ratings were placed under review for further possible downgrade. LGD assessments are also subject to change. Oct. 13, 2006, Standard & Poor's Ratings Services lowered its ratings on consumer electronics maker Directed Electronics Inc. following its acquisition of Polk Audio Inc., a provider of loudspeakers and audio equipment for homes and cars, for US$136 million in cash. The corporate credit rating was lowered to B+' from 'BB-', and was removed from CreditWatch negative where it was placed on Aug. 25. PARKER DRILLING: Discloses Resolution of Kazakhstan Tax Case ------------------------------------------------------------ Parker Drilling Company disclosed US$20 million reduction in the interest assessment in accordance with the recent ruling of the Kazakhstan court. The payment of the reduced assessment of US$13 million is the final resolution of the pending Kazakhstan tax case and will result in the company recognizing net income of approximately US$11 to US$12 million. Mr. Robert L. Parker Jr., chairman and chief executive officer said: "We are pleased to report that this long-pending matter in Kazakhstan has been resolved." Separately, the company stated that a subsidiary is currently engaged in negotiations with its Saudi Arabian partner regarding the subsidiary's interest in the joint venture, including terms for the subsidiary to no longer provide funds to the joint venture. The company can provide no assurances that the negotiations will result in an agreement or transaction with the Saudi Arabian partner. Kazakhstan Tax Case History The final resolution of the amount of interest payable relates to the tax case that originated in 2001 when the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan assessed income taxes on the Kazakhstan branch of the company's subsidiary, based on reimbursements that the subsidiary received from its customer for performing modifications to barge rig 257 prior to its mobilization into Kazakhstan. The branch objected to this assessment and the Supreme Court of Kazakhstan ruled in favor of the branch on two occasions, holding that the income tax assessments were improper under the U.S.-Kazakhstan Tax Treaty as U.S. taxes had already been paid on these improvements. In October 2005 MinFin re-assessed income taxes on the branch, based on the same reimbursements and the SCK ultimately ruled in favor of MinFin in July 2007. As previously reported, when efforts to resolve the matter pursuant to the mutual agreement procedure of the Treaty were not successful, in December 2007 the branch paid US$26 million in income taxes to the Republic of Kazakhstan pursuant to a previously reported tax assessment. The payment was exclusive of interest and net of estimated taxes previously paid of approximately US$12 million. The company will receive a foreign tax credit for this payment against future tax payments, which would otherwise be paid to the United States Treasury, excluding any currency exchange losses. In response to the appeal by the branch of the interest assessed, in February 2008 the Atyrau Economic Court ruled that interest was only payable from and after the date of the October 2005 assessment, instead of the original 2001 assessment date. About Parker Drilling Headquartered in Houston, Texas, Parker Drilling Company -- http://www.parkerdrilling.com/-- provides contract drilling and drilling-related services worldwide. The company has rigs located in Indonesia, New Zealand, Colombia and Mexico, among others. The Troubled Company Reporter-Asia Pacific reported on July 4, 2007, that Standard & Poor's Ratings Services assigned its 'B-' rating to contract drilling and rental tool provider Parker Drilling Co.'s proposed US$115 million convertible senior notes due 2012. At the same time, S&P affirmed the 'B' corporate credit rating on Parker and the 'B-' rating on its US$150 million senior floating rate notes due 2010 and US$225 million senior notes due 2013. The outlook is positive. On Oct. 12, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors last week, the rating agency confirmed its B2 Corporate Family Rating for Parker Drilling Company, as well as it B2 rating on the company's 9.625% Senior Unsecured Guaranteed Global Notes Due 2013, and Senior Unsecured Guaranteed Floating Rate Global Notes Due 2010. Moody's assigned those debentures an LGD4 rating suggesting note holders will experience a 55% loss in the event of default. PARKER DRILLING: 2007 Revenue Up 12% to US$654.6 Million -------------------------------------------------------- Parker Drilling Company reported strong financial and operating results for the three and twelve months ended December 31, 2007. Highlights for 2007 include: * Record company revenues of US$654.6 million, a 12% increase over the prior year; * Record earnings before interest, taxes, depreciation and amortization (EBITDA) of US$261.8 million, a 28% increase over the prior year; * Record net income of US$104.1 million, a 28% increase over the prior year; * Record EBITDA for U.S. barge rig operations of US$128.7 million, a 23% increase over 2006; * Record EBITDA for Quail Tools of US$83.7 million for the year, an 11% increase over 2006, and record quarterly EBITDA of US$25.0 million; * Fourth quarter 2007 international land rig utilization of 83%, nearly double the 46% in the fourth quarter last year; and * A company-best safety mark of 0.81 Total Recordable Incident Rate (TRIR) for 2007, below last year's record 0.86 TRIR. TRIR is a workplace safety indicator standard used in the drilling industry. Robert L. Parker Jr., chairman and chief executive officer of Parker Drilling, said: "Parker delivered another solid quarter and outstanding results for the year 2007, our fifth consecutive year of rising revenues, net income and EBITDA, driven by strong performances across our diverse businesses of contract drilling, project management and rental tool services. Our ability to anticipate the geographic and technological needs of our customers continues to be a key contributing factor in our success, and will be the principal driver of our long-term strategies." For the year ended December 31, 2007, Parker reported revenues of US$654.6 million and net income of US$104.1 million or US$0.94 per diluted share. This compares to revenues of US$586.4 million and net income of US$81.0 million or US$0.75 per diluted share for the year ended December 31, 2006. Non- routine items in 2007 resulted in a net benefit of US$9.1 million or US$0.08 per diluted share and included after-tax gain of US$0.07 per diluted share from the sale of two workover barge rigs in January, a non-cash FIN 48 tax benefit of US$0.18 per diluted share related to the Kazakhstan tax payment in December, a US$0.16 per diluted share reserve relating to the joint venture operations in Saudi Arabia and after-tax charges of US$0.01 per diluted share for debt extinguishment and other items. Net income for 2006 included income from non-routine items of US$0.14 per diluted share. The details of the non- routine items for the year and the quarter are available on Parker's website and can be viewed or downloaded by going to "Investor Relations" and then to "Reconciliation of Non-Routine Items." For the year ended December 31, 2007 total EBITDA was US$261.8 million, a 28% increase over the US$205.0 million reported for 2006. The details of the EBITDA calculation, a non-GAAP financial measure, for the current and prior periods are defined and reconciled later in this press release to their most directly comparable GAAP financial measure. Capital expenditures for the year ended December 31, 2007, totaled US$242.1 million. The company's cash and cash equivalents totaled US$60.1 million and total debt was US$373.7 million at December 31, 2007. Fourth Quarter Earnings and Financial Review For the three months ended December 31, 2007, Parker reported earnings of US$34.6 million, or US$0.31 per diluted share, on revenues of US$180.8 million. This compares to revenues of US$146.3 million and net income of US$37.2 million or US$0.34 per diluted share for the fourth quarter of 2006. Net income in the fourth quarter 2007 included a loss of US$8.4 million or US$0.07 per diluted share related to the financial results from operations of the Saudi Arabia joint venture. It also included net non-routine income of US$0.08 per diluted share or US$8.6 million, consisting of a US$17.6 million reserve relating to the joint venture operations in Saudi Arabia and a US$25.6 million FIN 48 tax benefit. Net income in the fourth quarter of 2006 included net non-routine income of US$0.12 per diluted share or US$12.8 million, of which US$12.6 million was non-cash deferred taxes. EBITDA was US$69.7 million for the fourth quarter of 2007, 35% higher than the US$51.7 million reported in the fourth quarter of 2006. Higher utilization and dayrates resulted in a 91% EBITDA improvement for international operations. Quail Tools, Parker's drilling and production rental tools subsidiary, achieved record EBITDA of US$25.0 million, which exceeded the record set in the third quarter of 2007 by 20%. Average utilization for barge rigs drilling in the Gulf of Mexico transition zone for the fourth quarter 2007 of 83% remained unchanged from the third quarter 2007 and was a substantial increase from the 68% reported for the fourth quarter 2006. Current barge rig utilization is 75%. The company's deep drilling barge dayrates in the Gulf of Mexico averaged US$43,900 per day for the fourth quarter 2007, down nine% from the third quarter. The average utilization of international land rigs for the fourth quarter 2007 increased to 83%, up from the 75% reported for the third quarter 2007 and nearly doubling the 46% in the fourth quarter 2006. Current international utilization is 79%. As previously disclosed in our periodic filings, the joint venture operations in Saudi Arabia have experienced delays and unanticipated costs. Due to these issues, contractual deadlines regarding the commencement of drilling operations for the rigs have not been met. In addition, the joint venture has incurred and continues to incur significant capital costs and equipment rental fees to expedite commissioning and continued operation of the rigs and is in discussions with its customer, Saudi Aramco, to resolve the timing and cost issues associated with the project. Kazakhstan Tax Update Parker's Kazakhstan subsidiary received notice yesterday of a decision from the Atyrau Economic Court canceling the previous assessment of approximately US$33 million of interest dating back to 2000 and requiring a recalculation of the interest assessment from October 12, 2005, through December 12, 2007, the date the principal amount of the tax was paid. Although the subsidiary believes that there is factual and legal support for this decision, it is anticipated that the Ministry of Finance will appeal this decision. Summary Parker continued, "We continue to realize the substantial benefits of repositioning our international land fleet to long- term contracts with strong margins in markets with long-term visibility for growth. Demand in international land markets is solid, and we expect continued strength from this business, considering the fourth quarter announcement of new contracts in Mexico and Kazakhstan. "Quail Tools continued its outstanding performance, as fourth quarter EBITDA significantly exceeded third quarter's record results. Quail is reaping substantial benefits from the increasing deepwater activity in the Gulf of Mexico, and is also seeing an upswing in contributions from its Williston Basin and Barnett Shale markets. We continue to remain confident in the strength of this segment. "Our U.S. barge rig segment completed the fourth quarter of 2007 with strong results. In the near term, we expect our U.S. barge segment to remain active. Deep barge dayrates have leveled off and 90% of the deep barge fleet is committed through the first quarter. We expect our intermediate barge rig segment to experience some weakness in the first half of 2008. As we enter 2008, we will continue to lead the industry in innovation with our new rig designs, will push our operational performance to new heights in efficiency and safety, and will grow in accordance with our disciplined strategic plan. This constant evolution of our high-performance drilling solutions is the hallmark of Parker Drilling's ability to anticipate the needs of our customers around the world. I am confident that this level of performance will result in strong returns across our operating segments." About Parker Drilling Headquartered in Houston, Texas, Parker Drilling Company -- http://www.parkerdrilling.com/-- provides contract drilling and drilling-related services worldwide. The company has rigs located in Indonesia, New Zealand, Colombia and Mexico, among others. The Troubled Company Reporter-Asia Pacific reported on July 4, 2007, that Standard & Poor's Ratings Services assigned its 'B-' rating to contract drilling and rental tool provider Parker Drilling Co.'s proposed US$115 million convertible senior notes due 2012. At the same time, S&P affirmed the 'B' corporate credit rating on Parker and the 'B-' rating on its US$150 million senior floating rate notes due 2010 and US$225 million senior notes due 2013. S&P said the outlook is positive. On Oct. 12, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors last week, the rating agency confirmed its B2 Corporate Family Rating for Parker Drilling Company, as well as it B2 rating on the company's 9.625% Senior Unsecured Guaranteed Global Notes Due 2013, and Senior Unsecured Guaranteed Floating Rate Global Notes Due 2010. Moody's assigned those debentures an LGD4 rating suggesting note holders will experience a 55% loss in the event of default. PERUSAHAAN GAS: Plans to Build Gas Pipeline in North Sumatra ------------------------------------------------------------ Perusahaan Gas Negara Tbk plans to build a 664-kilometer gas transmission pipeline linking Sumatra's towns of Duri, Dumai and Medan, Thomson Financial reports. The company, the report notes, said the construction of the pipe, with a capacity of carrying 250-300 million standard cubic feet per day, will begin in 2009 and will completed in 2011. According to the report, gas will be supplied by ConocoPhillips' gas fields in North Sumatra, Moreover, the company has been appointed by the government as project leader to build an LNG receiving terminal in West Java, with the help of PT Perusahaan Listrik Negara and PT Pertamina, the report relates. The LNG terminal, Thomson says, will have a capacity of 3.0 million tons of LNG per year or 400 mmscfd. Gas will be supplied from the Bontang LNG project developed by Total, as well as from the Tangguh LNG project developed by BP, the report adds. About Perusahaan Gas Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk -- http://www.pgn.co.id/-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or- pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 26, 2007, that Standard & Poor's Ratings Services has raised its corporate credit ratings on PT Perusahaan Gas Negara (Persero) Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable. At the same time, Standard & Poor's has raised the rating on the senior unsecured debt issued by PGN Euro Finance 2003 Ltd. (guaranteed by PGN) to 'BB-' from 'B+'. On Jan. 18, 2007, Moody's Investors Service affirmed the Ba2 corporate family rating of PT Perusahaan Gas Negara (Persero) Tbk. At the same time, Moody's affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The ratings outlook is stable. This affirmation followed the recent announcement of a delay in the South Sumatera West Java gas commercialization. On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. ========= J A P A N ========= ALITALIA SPA: Board Accepts Air France-KLM's Binding Offer ---------------------------------------------------------- Alitalia S.p.A.'s Board of Directors resolved unanimously on March 15, 2008, in favor of Air France-KLM's proposal and decided to give the mandate to Chairman Maurizio Prato to sign the acceptance letter. The offer is subject to a number of effectiveness conditions to be fulfilled by March 31, 2008. The Board has carried out its evaluation of the Binding Offer also in light of the worsened airline sector and macro economic scenario, as well as considering the critical situation of the Company and available alternatives. The Board believes that such proposal offers the appropriate solution to preserve the Company's assets and to promote its rapid and stable restructuring and its development in the long- term, also in light of the benefits coming from the synergies deriving from the integration with the global leader of the airline industry. Consistently with the resolution taken, the Chairman signed the acceptance letter of the Agreement. Strategic Premises The scenario and the competitive environment of the air transport sector are rapidly moving towards forms of integration and consolidation involving a very limited number of hub carriers, which enable the achievement of some important benefits: * Higher critical mass, which allows to benefit from relevant economies of scale in terms of costs and revenues, and decreases the carrier's vulnerability to the high cyclicality and volatility that characterize the industry; * Access to very significant and stable synergies, which cannot be achieved through traditional alliances amongst airlines. In this environment, there is an emerging trend in the industry to leave only niche positioning to traditional carriers, which although operating efficiently, have a limited size and operate on a stand-alone basis. The airline industry is currently facing a cyclical downturn, worsened by the steep increase in fuel costs during these last months and by the general deterioration of the macro economic scenario. Alitalia is going through a highly critical situation, causing a progressive erosion of its liquidity position worsened by the aforementioned economic and industrial scenario. The Company has confirmed on a number of occasions, including when it approved the 2008 Budget, the need of a significant capital increase and to reduce in a sizeable manner its losses and the erosion of its equity through strategic actions marked by strong discontinuity with the past. The Plan for Survival/Transition, approved by the Company in September 2007, already included such actions of discontinuity through the new network design, the suspension of flights recording significantly negative economic results, and the subsequent downsizing of the fleet. Key strategic premise to that plan was the impossibility to pursue a stand alone positioning of the Company outside an industrial and financial integration with a strong carrier able to generate synergies. Following the approval of the Plan, the Company initiated a process aimed at identifying a partner who would share the need to favor the restructuring, the re-launch and the development of the Company. On Dec. 6, 2007, Air France-KLM presented a non-binding offer for the potential integration with Alitalia. On Dec. 21, 2007, the Board of Directors resolved in favur of Air France-KLM's proposal considering it appropriate to offer to the Company the adequate solution to preserve the Company's assets and to promote its rapid and stable restructuring, giving mandate to the Chairman to start a period of exclusive negotiations. The Industrial Plan 2008-2010, prepared during the exclusivity period -- Jan. 18, 2008, to March 14, 2008, ended the and assumes the execution of a EUR1billion rights issue. Such Plan is the platform on which to add the synergies deriving from the integration of the Company with the Air France-KLM group. For Air France-KLM the approval of such plan represents an essential condition for the integration of Alitalia in the French-Dutch Group. 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: Board Approves 2008-2010 Industrial Plan ------------------------------------------------------ Alitalia S.p.A.'s Board of Directors has approved a new three year industrial plan (2008-2010). This plan was prepared by Alitalia starting from the Plan for Survival Transition as a basis and incorporating the outcomes of the exclusivity negotiations completed with Air France-KLM SA for the Company's restructuring and relaunch in the context of the integration with the Franco-Dutch group. Assumptions The Industrial Plan 2008-2010, which maintains a close continuity with the Plan of Survival/Transition approved in September 2007 and is in line with the 2008 Budget, envisages: * an initial restructuring phase -- pursued through a shrinking of the fleet, suspend flights with strongly negative economic results, an increase in the efficiency of the cost structure and a significant recovery in productivity; and * A re-launch and development phase from 2010, through the renewal of the fleet. The new strategic positioning Alitalia confirms its historical mission: a carrier, which serves Italy, focusing on Italy as the center of its network, offering better schedules and connections from all the most important Italian cities to the rest of the world and vice versa. The new Alitalia's industrial mission hinges on: * choosing Roma Fiumicino as reference hub, pivotal to the Italian market and a natural traffic basin, to maximize exploitation of Fiumicino's characteristics; * focusing on Milan as a key gateway, with point-to-point activity from/to international and intercontinental destinations; * suspending flights with negative economic results and increasing connections and frequencies; * re-launching Alitalia's brand in Italy and all over the world, in line with the new network positioning; * focusing product and marketing investments on the most important origin/destination markets from and to Italy: United States, Canada, Japan, South America and Mediterranean basin. Key Strategic Actions Hub and Spoke There will be a single "hub and spoke" network organization, offering a financially sound portfolio of international and intercontinental destinations to Italian customers as well as to customers from foreign countries. The choice of Rome as Alitalia's single hub is consistent with the features of point- to-point traffic to Rome, mainly inbound, which is better and more efficiently served with a hub and spoke network organization, on a single airport concentrating strong services to major medium and short haul destinations. Milan as Gateway Milan will be a strong gateway, with services to and from international ci