T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, March 25, 2008, Vol. 11, No. 59 Headlines A U S T R A L I A CENTRO PROPERTIES: Bankers Want Key Assets Sold Quickly CHRYSLER LLC: Agrees to Extend Supply Agreement to April 2 CONSTRUCTION MARKETING: Liquidator Presents Wind-Up Report FULAND DEVELOPMENT: Undergoes Liquidation Proceedings GARVEY & GRAHAM: Commences Liquidation Proceedings MAXIM ADVERTISING: Members & Creditors to Meet on April 2 MICROWAVE SAFE: Members & Creditors Meeting Set for April 11 MORE PROPERTY: Joint Meeting Slated for April 4 ONBECK HOLDINGS: Liquidator to Give Wind-Up Report on April 4 PSIVIDA LTD: Amends Definitive Agreement with Alimera Inc. SYDNEY ENGINEERING: Placed Under Voluntary Liquidation SYDNEY ENGINEERING (SALES): Members Opt to Liquidate Business C H I N A & H O N G K O N G & T A I W A N CHINA SOUTHERN: Inks New Code-Share Pact with Malaysia Airlines CHINA SOUTHERN: To Open Chengdu-Zhengzhou-Ordos Flights CITY TELECOM: To Build Broadband Network With M1 & StarHub FERRO CORP: Posts US$94MM Net Loss for Year Ended Dec. 31, 2007 HUA XIA: Deutsche Bank to Subscribe 265.6 Million New Shares PETROLEOS DE VENEZUELA: Aims to Produce 1.2MM Barrels Daily VISTEON CORP: Elects Alex J. Mandl to Board of Directors ZTE CORP: Posts 2007 Audited Annual Financial Results I N D I A CABLE & WIRELESS: Credit Suisse Downgrades Shares to Neutral GMAC LLC: Financial Unit's Board Names Alvaro de Molina as CEO QUEBECOR WORLD: Can't Timely File Financial Report for 2007 I N D O N E S I A BANK RAKYAT: To Set Up Sharia Bank in June GARUDA: Signs Exclusive Travel Deal with Contiki Holidays ICICI BANK: Jefferies Downgrades Firm from Buy to Underperform MOBILE-8: S&P Affirms 'B' Long-Term Corporate Credit Rating J A P A N DELPHI CORP: Completes Rights Offering for 62,707,305 Shares DELPHI CORP: Court Allows Probe on Alleged Improper Trading IHI CORP: In Talks with Toshiba Corp. Over Nuclear Power Tie-up JAPAN AIRLINES: Sells Stake in Two Subsidiaries MAZDA MOTOR: Names Philip Spender as Executive Vice-President METHANEX CORP: Cuts Chile Work Force by 15% SOJITZ CORP: Gets JPY7.5 Billion Order from Promtractor-Vagon XERIUM TECH: Projected Bankruptcy Filing Spurs S&P's Junk Rating K O R E A EDS CORP: Augments Global Network with Nexagent Assets Buyout GAP INC: Earns US$265 Million in Fourth Quarter Ended February 2 HYNIX: Partners with Fidelix Co. for Foundry Business Expansion HYNIX: To Apply Nanosys' Quantum Dot Flash Memory Technologies RHODIA SA: Yves-Rene Nanot Resigns as Chairman of the Board SHINWA INTEREK: To Set up Plant in Taiwan TRIGEM COMPUTER: Seeks Court Approval of Toshiba Settlement M A L A Y S I A OCI BERHAD: Appoints PM Securities as Advisor to Reform Scheme PROTON HOLDINGS: Unit Appoints Mohamad Shukor Ibrahim as CEO SHAW GROUP: Power Group President Richard F. Gill Passes Away N E W Z E A L A N D BRIDGECORP LTD: Offers Settlement or Court Battle to Advisers BRIGHTON PROPERTY: Court Enters Wind-Up Order CLEAR CHANNEL: Extends Closing of Notes Tender Offer to March 24 D J HAIR DESIGN: Appoints Brown & Rodewald as Liquidators FIVE STAR: Subject to Five Star Debenture's Wind-Up Petition FS & C (2005): Placed Under Voluntary Liquidation GOLDFEVER 2005: Appoints Official Assignee as Liquidator GOLF LINKS: Taps van Delden & Whittfield as Liquidators LONG PLUMBERS: Commences Liquidation Proceedings MECHANICAL SYSTEMS: Wind-Up Petition Hearing Set for April 7 OMANA MEWS: Fixes April 11 as Last Day to File Claims OPENEYE DISPLAYS: Commences Liquidation Proceedings P H I L I P P I N E S GUESS? INC: Co-Founder Wins Legal Battle Against Christie's PRC LLC: Gets Court Nod on Jenner & Block as Special Counsel PRC LLC: Panel Seeks to Retain Blank Rome as Bankruptcy Counsel PRC LLC: Panel Seeks to Employ J.H. Cohn as Financial Advisors PRC LLC: Wants Court to Approve Severance Program S I N G A P O R E CHEMTURA CORP: Posts US$3MM Net Loss in Year Ended Dec. 31, 2007 SEA CONTAINERS: Wants to Ink Two Charter Termination Agreements SINGAPORE CREATIVE: Selling Headquarters for SGD$250 Million VALEANT PHARMA: Posts US$6.2MM Net Loss in Year Ended Dec. 31 T H A I L A N D FEDERAL-MOGUL: Professionals Bill US$323 Mil. in Fees & Expenses * BOND PRICING: For the Week 24 March to 28 March 2008 - - - - - ================= A U S T R A L I A ================= CENTRO PROPERTIES: Bankers Want Key Assets Sold Quickly ------------------------------------------------------- Centro Properties Group's bankers are pressing the company to speed up the sale of its key assets to bring down its liabilities as it fast approaches its debt refinancing deadline, Carolyn Cummins and Danny John of The Sydney Morning Herald report. According to the report, Centro's group lenders and bondholders met the company's recently appointed US chief executive, Glenn Rufrano, in San Francisco, to discuss plans to restore financial confidence in the company's business. Plans include finding buyers for Centro's stakes in its U.S. and Australian unlisted funds that own significant chunks of its retail center property portfolio and injecting equity into the main group itself, the newspaper relates. However, the banks, which are owed AU$4 billion in short-term debt, want to see a greater commitment towards more asset sales. Mr. Rufrano, in a statement last week, said various data rooms were open, with companies representing local and offshore interests granted access in order for them to undertake due diligence, the report states. Ms. Cummins and Mr. John relate that according to brokers, Mirva, Mulpha, GE Capital and Blackstone have expressed interest in conducting further diligence on the business, but were not necessarily the frontrunners. The Herald reports that Centro's bankers are said to be still keen to avoid putting the company into administration given that its complex management and financial structure will take time to unwind and even longer to produce enough cash to go around. 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. CHRYSLER LLC: Agrees to Extend Supply Agreement to April 2 ---------------------------------------------------------- Plastech Engineered Products Inc. and its debtor-affiliates have reached a new interim supply agreement with Chrysler LLC. Pursuant to the deal, the Debtors will continue making parts for Chrysler at least through April 2, 2008, as their prior agreement ended March 17, according to The Associated Press and Erie Times. Pursuant to the initial interim agreement between the parties: -- Plastech will continue to deliver component parts to Chrysler; -- Chrysler is obligated to make certain payments to Plastech in conjunction with the continued production of component parts; and -- The Debtors are to allow BBK, as agents for Chrysler, to have supervised access to Plastech facilities for the purpose of inspecting and conducting an inventory of all tooling used for Chrysler production. Chrysler has filed an appeal before the U.S. District Court for the Eastern District of Michigan, Southern Division, regarding a prior ruling by the Bankruptcy Court barring it from recovering certain equipment from Plastech's plants. Bankruptcy Court Judge Phillip Shefferly had held that while Chrysler held equity in the US$180,400,000 worth of machinery that Plastech uses in its plants, the Debtor would need the machinery in order to continue its operations. The Plastech-Chrysler agreement comes as Plastech has sought another extension, to April 2, on the final hearing to consider approval of a final debtor-in-possession loan. Plastech has announced that it is negotiating the terms of a DIP loan from its major customers, under which the major customers will provide funding to Plastech until June 30 and assume Plastech's debts to Bank of America for the interim DIP financing and the prepetition loans it has provided to Plastech. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CONSTRUCTION MARKETING: Liquidator Presents Wind-Up Report ---------------------------------------------------------- Construction Marketing Services (Aust) Pty. Limited held a final meeting for its members and creditors on March 20, 2008. During the meeting, the company's liquidator, Lester James Haycock, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: Lester James Haycock 15 Blue Street, Level 8 North Sydney, New South Wales 2060 Australia About Construction Marketing Construction Marketing Services (Aust.) Pty. Ltd. provides business services. The company is located at Crows Nest, in New South Wales, Australia. FULAND DEVELOPMENT: Undergoes Liquidation Proceedings ----------------------------------------------------- Fuland Development Pty. Ltd.'s members agreed on February 22, 2008, to voluntarily liquidate the company's business. The company has appointed Roderick Mackay Sutherland to facilitate the sale of its assets. The liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Fuland Development Fuland Development Pty. Ltd. is a land subdivider and developer, except for cemeteries. The company is located at Campsie in New South Wales, Australia. GARVEY & GRAHAM: Commences Liquidation Proceedings -------------------------------------------------- Garvey & Graham Piano Removalists Pty. Ltd.'s creditors agreed on February 21, 2008, to voluntarily liquidate the company's business. The company has appointed Daniel I. Cvitanovic to facilitate the sale of its assets. The liquidator can be reached at: Daniel I. Cvitanovic Daniel I Cvitanovic Chartered Accountant Shop 5 Old Potato Shed 74-76 Hoddle Street Robertson, New South Wales 2577 Australia Telephone:(02) 4885 2500 Facsimile:(02) 4885 2995 About Garvey & Graham Garvey & Graham Piano Removalists Pty. Ltd. is in the business of local trucking without storage. The company is located at Heathcote in New South Wales, Australia. MAXIM ADVERTISING: Members & Creditors to Meet on April 2 --------------------------------------------------------- Maxim Advertising Pty. Limited will hold a final meeting for its members and creditors at 11:00 a.m. on April 2, 2008. During the meeting, the company's liquidator, Geoffrey Reidy at Rodgers Reidy, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Geoffrey Reidy Rodgers Reidy 333 George Street, Level 8 Sydney, New South Wales 2000 Australia About Maxim Advertising Maxim Advertising Pty. Limited is a distributor of heating equipments, except electric. The company is located at Glen Iris in Victoria, Australia. MICROWAVE SAFE: Members & Creditors Meeting Set for April 11 ------------------------------------------------------------ Microwave Safe Australia Pty. Limited will hold a final meeting for its members and creditors at 10:00 a.m. on April 11, 2008. During the meeting, the company's liquidator, P. Ngan at Ngan & Co, will provide the attendees with property disposal and winding-up reports. According to the Troubled Company Reporter-Asia Pacific, the company went into liquidation on June 30, 2006. The liquidator can be reached at: P. Ngan Ngan & Co. 49 Market Street, Level 5 Sydney, New South Wales 2000 Australia About Microwave Safe Microwave Safe Australia Pty. Limited provides business services. The company is located at Croydon, in New South Wales, Australia. MORE PROPERTY: Joint Meeting Slated for April 4 ----------------------------------------------- More Property & Real Estate Pty. Limited will hold a joint meeting for its members and creditors at 9:00 a.m. on April 4, 2008. During the meeting, the company's liquidator, D. M. Morgan at Clout & Associates, will provide the attendees with property disposal and winding-up reports. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on September 17, 2007. The liquidator can be reached at: D. M. Morgan c/o Clout & Associates 144-148 West High Street, Level 1 Coffs Harbour, New South Wales 2450 Australia Telephone:(02) 6652 3288 Facsimile:(02) 6651 9393 About More Property More Property & Real Estate Pty. Limited deals with real estate agents and managers. The company is located at Coffs Harbour in New South Wales, Australia. ONBECK HOLDINGS: Liquidator to Give Wind-Up Report on April 4 ------------------------------------------------------------- Onbeck Holdings Pty. Limited will hold a final meeting for its members and creditors at 10:00 a.m. on April 4, 2008. During the meeting, the company's liquidator, Roderick Mackay Sutherland at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. According to the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on April 11, 2007. The liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland 55 Hunter Street, Level 4 Sydney, New South Wales 2000 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Onbeck Holdings Onbeck Holdings Pty. Limited is a general contractor of single- family houses. The company is located at Condell Park, in New South Wales, Australia. PSIVIDA LTD: Amends Definitive Agreement with Alimera Inc. ---------------------------------------------------------- In a filing with the U.S. Securities and Exchange commission, pSivida, Inc., a wholly owned subsidiary of pSivida Limited, and Alimera Sciences, Inc. amended and restated their license and collaboration agreement relating to Medidur(TM) FA, the companies' Phase III investigative treatment for diabetic macular edema, and certain other products. For consideration of up to approximately AU$78 million to pSivida, Alimera increased its share in the future profits of Medidur FA from 50 to 80 percent and assumed financial responsibility for research and development of Medidur FA. The Amended and Restated Collaboration Agreement between pSivida and Alimera amended and restated the Collaboration Agreement dated February 11, 2005, as amended on February 23, 2005 and May 11, 2005. Alimera also issued a Note to pSivida on March 14, 2008 in connection with the Restated Agreement. Pursuant to the terms of the Restated Agreement, pSivida continues to grant Alimera an exclusive, worldwide license to develop and commercialize certain drug delivery devices, including Medidur FA, designed to deliver a corticosteroid (and no other active ingredient) to the posterior portion of the eye and certain drug delivery devices to treat diabetic macular edema. The field of the license is all eye diseases in humans other than uveitis. The term of the license continues to be the latest of: (a) February 11, 2015, (b) the expiration of the last licensed patent claim, and (c) the last date on which any product is sold anywhere in the world. Alimera may enter into sub-licenses and sub-contracts without pSivida's consent other than sub-licenses and sub-contracts with an affiliate of Alimera or which include bundling of other products or services. Alimera assumes control of, and financial responsibility for, development of licensed products under the Restated Agreement and is required to use commercially reasonable efforts to develop a First Product for at least one indication. pSivida retains certain limited development obligations relating solely to Medidur FA, which extend until December 31, 2009, and Alimera will reimburse pSivida monthly for budgeted or approved development costs actually incurred. Alimera maintains sole responsibility for, and control of, commercialization of licensed products and is required to use commercially reasonable efforts to commercialize a First Product for at least one indication in the United States, the European Union and Japan. Alimera must also satisfy certain specified financial commercialization milestones such as spending minimums. Under the Restated Agreement, pSivida will receive 20% of Net Profits derived from the sale of licensed products by Alimera under the Restated Agreement, and Alimera will receive the remaining 80% of Net Profits. Alimera will also pay to pSivida 20% of royalties received by Alimera pursuant to any third-party agreements relating to the commercialization of the licensed products (after deducting certain commercialization costs) and 33 1/3% of all non-royalty consideration received by Alimera from such third parties (after deducting certain fair market value amounts, if any, paid for equity securities of Alimera and certain reasonable out-of-pocket expenses incurred with respect to securing the third-party arrangement). Alimera paid pSivida AU$12 million in cash upon the execution of the Restated Agreement and agreed to make a AU$25 million milestone payment to pSivida within 30 days after the first FDA approval of the earliest of Medidur FA or certain other defined products. Each party was deemed to have fully paid as of March 14, 2008 all amounts owed by the other party with respect to development activities undertaken under the Original Agreement through and including that date, which included approximately AU$5.3 million (including penalties and accrued interest) owed by pSivida to Alimera as of February 29, 2008. Alimera agreed to pay all future development costs pursuant to the Restated Agreement. In addition, Alimera issued the Note pursuant to which Alimera agreed to pay pSivida AU$15 million upon the occurrence prior to September 30, 2012 of the first of certain defined liquidity events, or series of such events, which result in aggregate proceeds to Alimera of not less than AU$75 million. Alimera has agreed to prepay AU$500,000 of the principal amount of the Note monthly, starting on April 30, 2010 until September 30, 2012 and to pay interest on the amount outstanding quarterly in arrears starting on March 31, 2008 at a rate of 8% per annum until March 31, 2010, and at 20% per annum thereafter. Upon any Interest Payment Default or Scheduled Payment Default, then, automatically and without further action by pSivida or Alimera, pSivida's share of Net Profits under the Restated Agreement shall increase to 50% and pSivida's share of the royalties and non-royalty consideration received by Alimera pursuant to any third-party agreements shall increase to 50%. The Fifty/Fifty Amendments shall apply to all payments due or paid thereafter. In addition, the following events under the Note are each a breach of a material term of the Restated Agreement, for which, if not cured, pSivida may terminate the Restated Agreement: (a) an Event of Default, (b) the failure of a liquidity event to have occurred by September 30, 2012, and (c) the third occurrence of an Interest Payment Default, Scheduled Payment Default or any combination thereof, on different days and not simultaneously. If pSivida terminates the Restated Agreement as a result of a third payment default, or if a liquidity event failure occurs, then the Note shall be canceled and Alimera will have no further obligation to make any principal or interest payments on the Note. In the event that pSivida does not terminate the Restated Agreement following a third payment default, Alimera will not be required to make any monthly principal prepayments or quarterly interest payments but will be required to pay the outstanding principal amount of the Note and all accrued interest thereon upon the occurrence of a liquidity event that occurs prior to September 30, 2012. Either Party may terminate the Restated Agreement in the event of a material breach of the Restated Agreement that is not cured within the applicable cure period or if the other Party enters into bankruptcy or similar proceedings. pSivida may also terminate the rights of Alimera under the Restated Agreement in respect of any licensed product or product candidate which Alimera abandons. Alimera's failure to reimburse budgeted or approved development costs or certain other defined reimbursable costs does not give rise to a right for pSivida to terminate the Restated Agreement but does result in the application of the Fifty/Fifty Amendments to all payments due from or paid by Alimera thereafter. A failure by Alimera to make a Net Profits share payment or to satisfy a commercialization milestone will also result in the application of the Fifty/Fifty Amendments, unless the Fifty/Fifty Amendments already are in effect as a result of a prior Material Payment Failure or otherwise, in which case such a Material Payment Failure will constitute a material breach of the Restated Agreement for which pSivida may, if not cured, terminate the Restated Agreement. About pSivida Ltd. pSivida is a global drug delivery company committed to the biomedical sector and the development of drug delivery products. Retisert is FDA approved for the treatment of uveitis. Vitrasert is FDA approved for the treatment of AIDS-related CMV Retinitis. Bausch & Lomb owns the trademarks Vitrasert and Retisert. pSivida has licensed the technologies underlying both of these products to Bausch & Lomb. The technology underlying Medidur 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 technology (excluding FA). pSivida owns the rights to develop and commercialize a modified form of silicon (porosified or nano-structured silicon) known as BioSilicon, which has applications in drug delivery, wound healing, orthopedics, and tissue engineering. The most advanced BioSilicon(TM) product, BrachySil delivers a therapeutic, P32 directly to solid tumors and is presently in Phase II clinical trials for the treatment of pancreatic cancer. pSivida's intellectual property portfolio consists of 64 patent families, 113 granted patents, including patents accepted for issuance, and over 280 patent applications. pSivida conducts its operations from Boston in the United States, Malvern in the United Kingdom and Perth in Australia. pSivida is listed on NASDAQ, the Australian Stock Exchange and on the Frankfurt Stock Exchange on the XETRA system. pSivida is a founding member of the NASDAQ Health Care Index and the Merrill Lynch Nanotechnology Index. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. SYDNEY ENGINEERING: Placed Under Voluntary Liquidation ------------------------------------------------------ Sydney Engineering & Maintenance Co. Pty. Ltd.'s members agreed on February 22, 2008, to voluntarily liquidate the company's business. The company has appointed David Clement Pratt and Timothy James Cuming to facilitate the sale of its assets. The liquidators can be reached at: David Clement Pratt Timothy James Cuming 201 Sussex Street, Level 15 Sydney, New South Wales 1171 Australia About Sydney Engineering Sydney Engineering & Maintenance Co. Pty. Ltd. provides engineering services. The company is located at Smithfield in New South Wales, Australia. SYDNEY ENGINEERING (SALES): Members Opt to Liquidate Business ------------------------------------------------------------- Sydney Engineering (Sales) Pty. Ltd.'s members agreed on February 22, 2008, to voluntarily liquidate the company's business. The company has appointed David Clement Pratt and Timothy James Cuming to facilitate the sale of its assets. The liquidators can be reached at: David Clement Pratt Timothy James Cuming 201 Sussex Street, Level 15 Sydney, New South Wales 1171 Australia About Sydney Engineering (Sales) Sydney Engineering Sydney Engineering (Sales) Pty. Ltd. provides radio and television broadcasting and communications equipment. The company is located at Smithfield, in New South Wales, Australia. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== CHINA SOUTHERN: Inks New Code-Share Pact with Malaysia Airlines -------------------------------------------------------------- China Southern Airlines has signed a new code share pact with Malaysia Airline System Bhd (MAS). China Southern Airlines Chairman Liu Shaoyong said, "Starting from 27 November 2007, customers of China Southern Airlines and Malaysia Airlines have been enjoying 35 weekly flights between Kuala Lumpur and Guangzhou, Shanghai and Beijing. These seamless connections between the two parties air network enable China Southern Airlines' customers flying into Kuala Lumpur to connect to all domestic points served by Malaysia Airlines." Mr. Liu added that, "At the same time, Malaysia Airlines' customers can travel on China Southern flights to more than 90 destinations in China from Guangzhou and 38 from Beijing. This close cooperation has opened new opportunities in the code-share arrangement between China and Malaysia. We firmly believe that such a strategic partnership will offer travelers more choices and seamless destinations served by the two airlines, further strengthening the two parties' presence both in China and Malaysia and tapping feeder traffic from the domestic routes of the respective countries." China Southern Airlines operates a fleet of 330 Airbus and Boeing jet aircraft and is the largest carrier in The People's Republic of China in terms of fleet, extensive air network and annual passenger traffic. In 2007, China Southern Airlines transported nearly 57 million passengers, ranked #9 worldwide and the only Chinese carrier to enter into the world Top 10 passenger airlines. About China Southern Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. * * * As reported on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. Fitch said the outlook on the ratings remains stable. CHINA SOUTHERN: To Open Chengdu-Zhengzhou-Ordos Flights ------------------------------------------------------- China Southern Airlines is planning to operate the Chengdu-Ordos flight service between March 31st and October 24th this year. It will be the first air route linking Sichuan Province with Inner Mongolia's Ordos. Using Boeing 733 aircrafts, it will be a one-way flight covering a distance of 760 miles. The flight schedule is as below (Beijing Time): Air Route Flight No. Departure Arrival Date Chengdu-Zhengzhou-Ordos CZ6921 13:50 16:05 Mon. Fri. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. As reported on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. Fitch said the outlook on the ratings remains stable. CITY TELECOM: To Build Broadband Network With M1 & StarHub ---------------------------------------------------------- Hong Kong's City Telecom (CTI) and Singapore's M1 and StarHub signed a Memorandum of Understanding (MoU) to jointly form a consortium to design, build and operate the passive infrastructure network capable of delivering ultra high broadband speeds for Singapore. The consortium will jointly submit a bid that will meet all the criteria for the Infocomm Development Authority of Singapore's Request-for-Proposal (RFP) for the Network Company (NetCo). "Currently, CTI, through its wholly owned subsidiary, HKBN's end-to-end network in Hong Kong, supports the widest range of symmetric broadband services from 25Mbps up to 1Gbps, and has launched Hong Kong's first Fibre-to- the-Home residential broadband services. We welcome StarHub to join us in this project, as their experience and diversity complement the strengths of CTI and M1. We are confident that this will create sparkling synergy for the consortium," said Ricky Wong, Chairman of CTI. "The proven expertise and experience that the partners bring to the consortium, backed by their knowledge of the local operating environment and conditions, will ensure a strong and resilient bid. We are committed to the building of a network infrastructure for the future, one that will enable Singaporeans to enjoy high-speed and cutting edge broadband technology in the years to come," said Neil Montefiore, CEO of M1. "This consortium brings to the table a unique set of talented corporate shareholders who have both the vast experience in building ultra-high speed broadband networks as well as the local expertise in managing complex telecoms operations in Singapore. Together, we have the capacity to build and deliver the key elements of an Open Access network for a robust infocommunications service industry, as well as create a resilient platform that can cater to a continuing stream of new broadband technologies for the foreseeable future," said Terry Clontz, CEO of StarHub. The Next Gen NBN is part of Singapore's Next Generation National Infocomm Infrastructure (Next Gen NII), formed to entrench Singapore's Infocomm hub status and open the doors to new business and social growth for the country. Next Gen NII comprises complementary wired and wirelessnetworks to ensure Singaporeans enjoy seamless connectivity. About City Telecom Hong Kong-based City Telecom (H.K.) Limited -- http://www.ctihk.com/-- is engaged in the provision of international telecommunications services (IDD) and fixed telecommunications network services (FTNS) to customers in Hong Kong and Canada. The Company operates in two segments: international telecommunications, which is engaged in the provision of international long-distance calls services, and fixed telecommunications network, which is engaged in the provision of dial up and broadband Internet access services, local voice-over-Internet protocol services and Internet protocol television (IP-TV) services. City Telecom (H.K.) Limited's wholly owned subsidiaries include Attitude Holdings Limited, Automedia Holdings Limited, City Telecom (B.C.) Inc., City Telecom (Canada) Inc., City Telecom Inc., City Telecom International Limited, Credibility Holdings Limited, CTI Guangzhou Customer Services Co. Ltd., CTI Marketing Company Limited, Golden Trinity Holdings Limited, Hong Kong Broadband Network Limited and IDD 1600 Company Limited. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 26, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on City Telecom (H.K.) Ltd. (CTI) to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised its issue rating on CTI's US$125 million senior unsecured notes due 2015 to 'B+' from 'B'. Moody's Investors Service on Feb. 1. 2007, affirmed its B2 corporate family rating and senior unsecured bond rating for City Telecom Ltd, and at the same time has revised the company's rating outlook to positive from stable. On December 22, 2006, TCR-AP reported that Fitch Ratings assigned a Long-termforeign currency Issuer Default rating of 'B+' to Hong Kong-based City Telecom (HK) Limited. The Outlook on the rating isStable. At the same time, Fitch assigned an instrument rating of 'BB-' to the US$125 million senior unsecured notes due 2015 issued by CTI on the expectation of good recovery prospects given default as denoted by the agency's recovery rating of 'RR3'. FERRO CORP: Posts US$94MM Net Loss for Year Ended Dec. 31, 2007 --------------------------------------------------------------- Ferro Corporation filed its financial statements for the quarter and year ended Dec. 31, 2007, in a Form 10-K filing with the U.S. Securities and Exchange Commission. Ferro Corp. posted a net loss of US$94.4 million on net sales of US$2.2 billion for the year ended Dec. 31, 2007, compared to a net income of US$19.3 million on net sales of US$2.0 billion in 2006. Sales for the year ended Dec. 31, 2007, were a record US$2.2 billion, up 8% from 2006. Sales for the fourth quarter were US$570.7 million, an increase of 14.8% from the fourth quarter of 2006. Net sales increased 8% in 2007 primarily as a result of product price increases and favorable changes in foreign currency exchange rates. Compared with 2006, sales increased in the Performance Coatings, Color and Glass Performance Materials, Electronic Materials, and Polymer Additives segments. Sales declined in the Specialty Plastics and Other Businesses segments. Sales to customers outside the United States grew by 16% while sales within the United States fell by 1%. Increased product prices and favorable changes in foreign currency exchange rates were the primary drivers of the increased sales. The effects of lower volume in Specialty Plastics, porcelain enamel products in Performance Coatings, and Polymer Additives partially offset the sales increases. The volume declines were largely the result of weak demand from U.S. markets in automobiles, appliances and residential housing, the company said. Ferro Corp., at Dec. 31, 2007, had total assets of US$1.6 billion, total liabilities of US$1.1 billion, and a stockholders' equity of US$476.2 million, compared to total assets of US$1.7 billion, total liabilities of US$1.2 billion, and a stockholders' equity of US$535.0 million at Dec. 31, 2006. Total debt at the end of 2007 was US$526.1 million, a decrease of US$66.3 million from the end of 2006. The decline in debt during 2007 was primarily the result of lower cash deposit requirements for precious metal consignments. In addition, the company had net proceeds of US$54.6 million from its U.S. accounts receivable securitization program at the end of 2007, compared with US$60.6 million at the end of 2006. The company also had US$42.1 million in net proceeds from similar programs outside the U.S. at the end of the year, compared with US$33.7 million at the end of 2006. The company generated US$144.6 million of net cash from operating activities during 2007. Restructuring charges of US$16.9 million were recorded in 2007, resulting from rationalization programs in the company's European inorganic materials manufacturing facilities and costs associated with discontinuing dielectric materials production at an Electronic Materials manufacturing location in Niagara Falls, New York. The restructuring project in Electronic Materials was completed in 2007, and the restructuring programs in Europe are expected to continue through 2009. 2008 First-Quarter Estimates Sales for the 2008 first quarter, ending March 31, are expected to be approximately US$550 million to US$575 million compared with sales of US$530 million in the first quarter of 2007, reflecting an ongoing mix of business conditions in different regions. Business conditions in the U.S. are expected to be difficult due to continued weak demand from housing, appliances and automotive markets. Earnings for the first quarter are expected to be in the range of US$0.12 to US$0.17 per share. This estimate includes expected charges of approximately US$0.05 per share, primarily from the continuation of manufacturing rationalization activities. Also included in the first quarter estimates are pre-tax charges of US$2 million to US$3 million to complete the restoration of full wastewater treatment capabilities at the company's Bridgeport, New Jersey, manufacturing plant. The company reported income from continuing operations of US$0.14 per share in the first quarter of 2007, including charges of approximately US$0.08 per share. "We continue to build a foundation for the future through aggressive restructuring efforts and organizational change," said Chairman, President and Chief Executive Officer James F. Kirsch. "While we are disappointed by our reported loss for 2007, we are encouraged by strong cash flow from net operating activities and our ability to reduce debt. We will continue to drive cost and expense savings across the business, while investing in our customer relationships and stressing the values and behaviors that support our opportunities to win and enhance value for our shareholders." Kirsch added that the company is on track with the restructuring programs it has initiated over the past 18 months, and that Ferro remains committed to meeting its goal of 10 percent operating margins, as a percent of sales excluding precious metals, in 2010. This will be achieved through organic growth of higher-value products, coupled with incremental savings generated from Ferro's ongoing restructuring programs, aggressive pursuit of manufacturing productivity improvements, improved pricing for value, and expense reductions. About Ferro Corporation Based in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a global producer of an array of specialty chemicals including coatings, enamels, pigments, plastic compounds, and specialty chemicals for use in industries ranging from construction, pharmaceuticals and telecommunications. Ferro operates through the following five primary business segments: Performance Coatings, Electronic Materials, Color and Performance Glass Materials, Polymer Additives, and Specialty Plastics. Revenues wereUS$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * Ferro Corp. carries Moody's Investors Service's B1 corporate family rating assigned on May 2007. Moody's also assigned a B1 rating to the company'sUS$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. HUA XIA: Deutsche Bank to Subscribe 265.6 Million New Shares ------------------------------------------------------------ Germany's Deutsche Bank has agreed to subscribe 265.6 million new shares in Hua Xia Bank Co., Ltd., for CNY3.909 billion, Sinocast News reports. According to the report, Deutsche Bank is waiting for approval from related authorities, and then it will likely increase its holdings in Hua Xia to 13.7% from 9.9%. Hua Xia bank plans a non-public share offering valued at nearly CNY11.6 billion, the report notes. Sinocast News relates that Rainer Neske, a top executive for the German financial services group, said Deutsche Bank's share acquisition indicates the bank's confidence in Hua Xia Bank. The acquisition is expected to further extend reaches to China's individual investment market in the near future, by virtue of the financial platform offered by its partner, he added, the report states. The report recounts that in May 2006, Deutsche Bank Securities bought into Hua Xia Bank for the first time, and nearly one year later, they successfully unveiled a co-branded credit card business in China. The two parties have cooperated in the fields of risk management, capital management, retailing, and corporate banking, the report adds. About Hua Xia Bank 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. According to Fitch, 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. PETROLEOS DE VENEZUELA: Aims to Produce 1.2MM Barrels Daily ----------------------------------------------------------- Petroleos de Venezuela SA wants to bring its oil production to 1.2 million barrels a day in the west by 2013, Dow Jones Newswires reports. The Venezuelan Oil Ministry will concentrate on increasing Petroleos de Venezuela SA's crude production from the country's western region, where mature oil wells are located, Dow Jones notes. Venezuela will drill more wells and use more drill equipment so that production will increase to 937,000 barrels per day in 2008, from 907,000 in 2007, Dow Jones says, citing the ministry's 2007 year-end report. According to Dow Jones, about 485 new wells will be drilled and some 374 oil wells will be repaired. 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 was negative. VISTEON CORP: Elects Alex J. Mandl to Board of Directors -------------------------------------------------------- Alex J. Mandl has been elected to Visteon Corporation's board of directors, effective immediately. Mr. Mandl has nearly 40 years of leadership experience with global companies, including serving as president and chief operating officer of AT&T, and as chairman and chief executive officer of Sea-Land Services, Inc. Since December 2007, he has been non-executive chairman of the board of Gemalto, a global leader in digital security that is a newly merged company between Gemplus International and Axalto. Mr. Mandl had been president and CEO of Gemplus International since September 2002. "[Mr. Mandl] is a highly respected leader who has extensive experience helping guide global companies through strategic transformation and growth," Michael F. Johnston, Visteon chairman and chief executive officer, said. "Visteon will benefit greatly from his experience and insight." From April 2001 through August 2002, Mr. Mandl was a principal in ASM Investments, which focuses on early-stage funding for companies utilizing technology as a differentiator. Before that, he was chairman and CEO of Teligent, a company he started in 1996. Prior to Teligent, Mr. Mandl was with AT&T from 1990 to 1996, serving as group executive and chief financial officer before being named president and COO. Before joining AT&T, Mr. Mandl was chairman and CEO of Sea-Land Services, Inc., a leading global provider of containerized ocean transport and distribution services. He also served as a senior vice president with CSX, after beginning his career with Boise Cascade as a merger and acquisition analyst. Mr. Mandl currently serves on the boards of Gemalto, Dell Computer Corp., Hewitt Associates, Horizon Lines and Wilamette University. He has an MBA from the University of California at Berkeley and a bachelor's degree in economics from Wilamette University. Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company's other corporate offices are in Shanghai, China; and Kerpen, Germany. The company has Latin America offices in Argentina, Brazil and Mexico. The company has facilities in 26 countries and employs approximately 43,000 people. * * * Moody's Investor Service placed Visteon Corp.'s long-term corporate family and probability of default ratings at 'B3' in November 2006. The ratings still hold to date with a negative outlook. ZTE CORP: Posts 2007 Audited Annual Financial Results ----------------------------------------------------- ZTE Corporation posted audited annual results for the year ended December 31, 2007. ZTE recorded a revenue of approximately RMB34,777 million in 2007, representing an increase of 49.8% against 2006. Net profit was RMB1,252 million. Basic earnings per share were RMB1.30. Applying PRC GAAP, for the year under review, the Group's revenue from principal operations was approximately RMB34,777 million. Net profit was RMB1,252 million. Earnings per share amounted to RMB1.30. The Board of Directors recommended payment of a final dividend of RMB2.5 including tax per 10 shares and the Group proposed to increase issued capital by Reserve on a basis of 4 shares for every 10 shares for the year ended 2007. During the year, the Group's revenue from domestic operations amounted to RMB14,687 million, representing a year-on-year growth of 13.8%. The Group continued to implement the strategies of product differentiation and cost leadership heeding development trends in the domestic communications market. At the same time, it strengthened ties with domestic mainstream carriers in China by providing them with quality products and services. The Group's revenue from international principal operations grew 94.8% to RMB20,091 million and accounted for 57.8% of its total revenue, which was 13.4 percentage points higher compared with the previous year. The revenue growth was driven by continued growth of income from emerging markets and increased sales in developed countries. Hou Weigui, Chairman of ZTE, said, "Wireless communications business continues to be our main income source. Sales of the Group's wireless communications products grew rapidly in 2007. As for GSM products, their sales saw significant year-on-year growth, keeping overall market dominance and extending reach to new markets and carrier-customers. The segment broke grounds with high-end operators and quickly gained market share. On the 3G business front, our TD-SCDMA wireless network and core network products secured significant shares of the tenders for the construction of extended trial network for TD-SCDMA large- scale network technology application of carriers. Our WCDMA products also gained grounds in the international market and assumed a more premium market position. Our CDMA products continued to register sales growth. As for the Group at large, it strived to seize opportunities bred by growing broadband services around the world to develop its optical communications business with the aim of improving market coverage." Mr. Hou concluded, "In the coming year, there will be opportunities as well as challenges in the domestic communications market as carriers transform their businesses and competition in the global market intensifies. The Group will step up effort to grow itself into a mainstream global operator, to develop new products and also tighten ties with major domestic carriers in China. It will seek to ride on the China 3G market, the booming handset and optical communications market as well as the strong global market to sustain fast growth." 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+'. The rating Outlook is Stable. ========= I N D I A ========= CABLE & WIRELESS: Credit Suisse Downgrades Shares to Neutral ------------------------------------------------------------ Credit Suisse analyst R. Barker has downgraded Cable & Wireless Plc's shares to "neutral" from "outperform," Newratings.com reports. Newratings.com relates that the target price for Cable & Wireless' shares was decreased to GBP180 from GBP215. Mr. Barker said in a research note that Cable & Wireless' management has "altered the company's basic investment thesis by shifting the strategy from restructuring in the near term to value-creation in the long term." Mr. Barker told Newratings.com that Cable & Wireless' new strategy is not different from those of its rivals. "There is an absence of catalysts" for Cable & Wireless' share price in the "near term," Newratings.com states, citing Credit Suisse. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- operates through two standalone business units -- International and Europe, Asia & US. The International business unit operates integrated telecommunications companies in 33 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers. The company has operations in the United Kingdom, India, China, the Cayman Islands and the Middle East. The Europe, Asia & U.S. business unit provides enterprise and carrier solutions to the largest users of telecoms services across the U.K., U.S., continental Europe and Asia -- and wholesale broadband services in the U.K. * * * As of Feb. 12, 2008, Cable & Wireless Plc carried a Ba3 long- term corporate family rating, a B1 senior unsecured debt rating and a Ba3 probability of default rating from Moody's Investors Service, which said the outlook is stable. The company also carries a BB- long-term local and foreign issuer credit ratings from Standard & Poor's Ratings Services, which said the outlook is stable. S&P rates its short-term local and foreign issuer credit at B. GMAC LLC: Financial Unit's Board Names Alvaro de Molina as CEO -------------------------------------------------------------- The Board of Directors of GMAC LLC subsidiary, GMAC Financial Services, named Alvaro G. de Molina as chief executive officer of the unit, effective April 1, 2008. Mr. de Molina will oversee all GMAC operations and focus on strengthening the core businesses, while positioning the company for long-term growth. Eric Feldstein, currently chief executive officer, will join Cerberus Capital Management L.P., an affiliate of which holds a majority interest in GMAC. In his new role, Mr. Feldstein will advise Cerberus in connection with its large financial services portfolio and with new investment opportunities in financial services and other sectors. "Al brings extensive experience in financial services and banking to the GMAC CEO role, with keen insight into the needs of customers and investors alike," said J. Ezra Merkin, chairman of GMAC's Board of Directors. "We are pleased that he will be able to draw upon the experience and know-how of the senior GMAC team. We are confident that the combination of Al's leadership and the contributions of senior management will enhance the company's efforts to restore profitability and pursue growth opportunities." Mr. de Molina, 50, had a long and successful career with Bank of America before joining GMAC in August 2007. He said: "GMAC's key strength is its strong foundation, which includes a vast dealer network, a global footprint, a large customer base, and a talented team of employees -# all of which are essential to the longer-term success of the business. Looking ahead, we need to align our resources to reflect the current market environment and capitalize on our competitive advantages." During the past year, the GMAC leadership team has maintained the company's strong liquidity position, reduced leverage, tightened underwriting standards, reduced risk, introduced new products for both the automotive finance and insurance businesses, and structured the company for efficient, scalable growth. The company has also enhanced its global risk management function, broadened its marketing focus, and bolstered the leadership team in the mortgage business amid a challenging market environment. GMAC's management team today reflects a complement of seasoned executives with experience at the company and new leaders with expertise in running a global financial services enterprise. Looking forward, GMAC continues to target a return to profitability, while maintaining or improving its global leadership position in its core businesses. Mr. Feldstein served as the chairman and then chief executive officer at GMAC Financial Services since November 2002, and previously served at General Motors Corp. as treasurer and vice president of Finance, among various other executive positions. "We are very pleased to bring Eric on board to the Cerberus team," said Mark Neporent, chief operating officer of Cerberus. "We expect that Cerberus and its investors will benefit from Eric's broad expertise in financial services and other sectors." Background information on Al de Molina Mr. de Molina is a proven leader with experience in effectively managing risk and capital while building strong, talented teams. Before he joined GMAC last year, he spent 17 years at Bank of America, most recently serving as chief financial officer. During his tenure at Bank of America, he also served as chief executive officer of Banc of America Securities, president of global corporate and investment banking, and corporate treasurer. Prior to joining Bank of America, de Molina served in the lead financial role for emerging markets at J.P. Morgan. He began his career in 1979 with PriceWaterhouse. Mr. de Molina serves on the boards of Duke University's Fuqua School of Business, the Foundation for the Carolinas, Florida International University, and the Financial Services Volunteer Corps. Born in Cuba, he holds a bachelor's degree in accounting from Fairleigh Dickinson University, and a master's degree in business administration from Rutgers Business School. About GMAC GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and employs approximately 26,700 people worldwide. Cerberus Capital Management LP bought 51% GMAC LLC stake from General Motors Corp. on December 2006. Its Latin American operations are located in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on March 6, 2008, Fitch Ratings downgraded and removed from Rating Watch Negative the long-term Issuer Default Rating GMAC LLC and related subsidiaries to 'BB' from 'BB+'. Fitch has also affirmed the 'B' short-term ratings. Fitch originally placed GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating Outlook is Negative. Approximately US$100 billion of unsecured debt is affected by this action. As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2008, Standard & Poor's Ratings Services lowered its ratings on Residential Capital LLC and GMAC LLC. Residential Capital LLC was downgraded to 'B/C' from 'BB+/B'. GMAC LLC was downgraded to 'B+/C' from 'BB+/B'. The outlook for both entities is negative. QUEBECOR WORLD: Can't Timely File Financial Report for 2007 ----------------------------------------------------------- Quebecor World Inc. said that, in view of its filing for creditor protection in Canada and the United States, it will delay the release and filing of its consolidated financial statements, management's discussion and analysis and annual information form for the year ended Dec. 31, 2007. Quebecor World expects that it will only be in a position to release and file its 2007 year-end audited consolidated financial statements, management's discussion and analysis and annual information form towards the end of April 2008. Quebecor World is seeking an amendment to the credit agreement with its debtor-in-possession (DIP) lenders in connection with the delay in releasing and filing its 2007 audited financial statements. Due to the late filing, Quebecor World is requesting that the Autorite des Marches Financiers of Quebec impose a management cease trade order precluding Quebecor World's directors and officers from trading in Quebecor World's securities. Quebecor World intends to provide the information required by CSA Staff Notice 57-301 and Ontario Securities Commission Policy 57-603, including the issuance of status update reports every two weeks, for as long as the consolidated financial statements are not filed. About Quebecor World Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX: IQW)(NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in- Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. ================= I N D O N E S I A ================= BANK RAKYAT: To Set Up Sharia Bank in June ------------------------------------------ Bank Rakyat Indonesia plans to set up a sharia bank as its subsidiary by the end of June 2008, Antara News reports citing Bank President Director Sofyan Basir. Mr. Basir told the news agency that the bank had taken over Bank Jasa Artha for IDR61 billion to be developed into a sharia bank called Bank Umum Syariah BRI. Sulaiman Arif, the bank director for small and medium enterprises, said Bank Rakyat was in the process of selecting its officials to sit in the sharia bank's boards of commissioners and directors, Antara News relates. BRI has so far operated one sharia unit, the report adds. Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended Dec. 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. GARUDA: Signs Exclusive Travel Deal with Contiki Holidays --------------------------------------------------------- PT Garuda Indonesia signed a deal with Contiki Holidays to offer discounted fares to travelers who book at Contiki Resort Bali, Indonesia, ASIATraveltips News reports. Nicholas Lim, Contiki Holidays' regional director for Asia, told the news agency that Bali has been a favorite destination for South East Asian tourists for over 40 years. In 2007, Contiki Resort Bali saw a significant increase in the number of reservations made, up 40% from the year before, the report recounts. As part of the exclusive partnership, the report relates, travelers will be able to reserve spot on a value-packed three- day two-night package to Contiki Resort Bali at SGS408, which includes two nights accommodation with return airport transfers and daily brunch and dinner. Contiki Action Planners will also be present to take residents through a variety of free resort activities, the report adds. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sept. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. ICICI BANK: Jefferies Downgrades Firm from Buy to Underperform -------------------------------------------------------------- Equity trading firm Jefferies & Co. have downgraded ICICI Bank Ltd. from "Buy" to "Underperform," according to a March 20 post at StreetInsider.com. Price target dropped from US$87 to US$29, Jefferies pointed out. The Troubled Company Reporter-Asia Pacific previously reported that ICICI Bank Joint Managing Director Chanda Kochhar said that the bank suffered US$50 million of investment losses this quarter in addition to the US$70 million provided for in the prior quarter. According to various reports, the government said that ICICI bank lost US$264 million on account of the sub-prime crisis. But, contrary to the reports, the bank asserted that it has no material direct or indirect exposure to U.S. sub-prime credit. The bank recently repurchased and hence extinguished a total of US$100 million of bonds issued in its Bahrain branch: -- US$50 million out of the US$750 million 5.75% bonds due 2012 issued on Jan. 12, 2007; and -- US$50 million out of the US$2 billion 6.625% bonds due 2012 issued on Oct. 3, 2007. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to the bank's senior unsecured, five-year, fixed-rate U.S. dollar notes. MOBILE-8: S&P Affirms 'B' Long-Term Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Indonesia's wireless operator PT Mobile-8 Telecom Tbk. to negative from stable. At the same time, Standard & Poor's affirmed its 'B' long-term corporate credit rating on the company. "The rating on Mobile-8 reflects the company's aggressive expenditure plan, highly leveraged financial profile, and its position as a small player in a scale-sensitive industry," said Standard & Poor's credit analyst Manuel Guerena. "These strengths are partly offset by Mobile-8's strong subscriber growth and favorable domestic wireless subscriber growth prospects, and good debt maturity profile." Mobile-8's liquidity position is adequately supported by the company's cash balance and short term investments of Indonesian rupiah (IDR) 1.1 trillion as of Dec. 31, 2007, which are sufficient to cover short-term obligations of IDR26 billion. In the medium term, however, capital expenditures will use a large portion of this cash reserve. "The downward pressure on Mobile-8's rating will increase further if: (1) the company doesn't start making up for the network expansion delay through the rest of 2008, (2) average revenue per user, sustained so far, shows a steady decline, or (3) the company's total debt to annualized EBITDA rises above 6x (its annualized ratio was 5.4x in the fourth quarter of 2007). Conversely, the outlook could be revised back to stable if the company expands its network and improves its competitive performance on a sustainable basis, and there is significant improvement in its financial risk such that total debt to EBITDA stays below 5x," Mr. Guerena noted. About Mobile-8 Telecom Headquartered in Jakarta, Indonesia, PT Mobile-8 Telecom Tbk is a part of Bimantara Group. Established in 2002 and commercially launched in 2003 is the fourth largest mobile cellular operator in the country. Its product is Fren, which offers pre-paid and post-paid billing services. The Company's other products and services include Fren Prabayar, Fren Pascabayar, FrenSLI 01068, Layanan, Value Added Services, Fren RingGo, TV MOBI and Fren Mobile Internet. Its subsidiaries, which provide mobile cellular network services, are PT Komunikasi Selular Indonesia, PT Metro Selular Nusantara and PT Telekomindo Selular Raya. As of May 31, 2007, the three subsidiaries have been merged into the Company. ========= J A P A N ========= DELPHI CORP: Completes Rights Offering for 62,707,305 Shares ------------------------------------------------------------ Delphi Corp.'s registration statement regarding subscription rights and warrants to purchase shares of common stock in Reorganized Delphi became effective on March 11, 2008. Prior to the Effective Date of its confirmed Plan of Reorganization, Delphi will initiate a sale and offer of subscription rights to purchase up to 62,707,305 of Reorganized Delphi common stock. After the Effective Date of the Plan, Reorganized Delphi will sell warrants to purchase up to 15,384,616 shares of the company's common stock. The warrants are immediately exercisable from and after the date of issuance until the six- month anniversary of the date of issuance. A full-text copy of Delphi's Registration Statement filed with the U.S. Securities and Exchange Commission is available at: http://ResearchArchives.com/t/s?2944 Rights Offering The Rights Offering is comprised of a Par Rights Offering and a Discount Rights Offering. Under the Par Rights Offering, each holder of Delphi common stock will receive, for each 26 shares of common stock owned of record at 5:00 p.m., New York City time, on Jan. 17, 2008, one nontransferable right to purchase one share of Reorganized Delphi common stock for US$59.61 in cash. Fractional par rights will not be issued. Under the Discount Rights Offering, holders of allowed General Unsecured Claims, Section 510(b) Note Claims, Section 510(b) Equity Claims, or Section 510(b) ERISA Claims, as those claims are defined in the Plan, will receive, for each US$99.07 of their claim, one transferable right to purchase one share of Reorganized Delphi common stock for US$38.39 in cash. To the extent that Delphi's provisional claim allowance or estimation results in a particular claimholder receiving more discount rights than what the claimholder should have received based on the ultimate allowed amount of its claim, and those excess discount rights are transferred or exercised, Delphi, in its sole discretion: (a) will withhold an amount of Reorganized Delphi common stock equal to the value of the Excess Discount Rights from the Overpaid Eligible Holder's ultimate distribution; or (b) require the Overpaid Eligible Holder to return the value of the Excess Discount Rights. To the extent Delphi's provisional claim allowance or estimation results in a particular claimholder receiving fewer discount rights than it should have received based on the ultimate allowed amount of its claim, no subsequent adjustment will be made in respect of the claimholder's Claim. Each discount right entitles a claimholder who fully exercise its basic subscription privilege to subscribe, prior to the expiration date of the Discount Rights Offering, for additional shares of Reorganized Delphi common stock at an exercise price of US$38.64 per full share. If an insufficient number of shares are available to fully satisfy Oversubscription Privilege requests, the available shares, if any, will be allocated pro rata among the applicants. If there is a pro rata allocation of the remaining shares and an applicant receives an larger allocation than it subscribed for under its Oversubscription Privilege, Reorganized Delphi will issue the number of shares subscribed and allocate the remaining shares pro rata among the remaining applicants. There is no Oversubscription Privilege in the Par Rights Offering. The Par Rights and Discount Rights will expire at 5:00 p.m., New York City time, on March 31, 2008. Appaloosa Management L.P. and the other Plan Investors have agreed to backstop the Discount Rights Offering, on the terms and subject to the conditions of their New Equity Purchase and Commitment Agreement with the Debtors. Pursuant to the Backstop Agreement, the Plan Investors will purchase, for the US$38.39 in cash per full share, any shares that are not purchased pursuant to the exercise of Discount Rights. The Plan Investors' Backstop Agreement does not apply to the Par Rights Offering. If all of the Par Rights are not exercised in the Par Rights Offering, the remaining shares of Reorganized Delphi common stock will be issued to certain creditors in partial satisfaction of their claims. Use of Proceeds The Rights Offering is conducted to raise a portion of the funds necessary to consummate the Plan, Rodney O'Neal, Delphi Corp.'s chief executive officer and president, related in Delphi's Registration Statement. On the Effective Date of the Plan, all existing shares of Delphi's common stock, and any options, warrants, rights to purchase shares of Delphi common stock or other outstanding equity securities will be canceled. On or shortly after the Effective Date, Reorganized Delphi will make the distributions provided for in the Plan, including issuing the shares of new common stock for which Par Rights and Discount Rights are exercised in the Rights Offerings. On the Effective Date, Reorganized Delphi will have up to 160,124,155 shares of common stock outstanding assuming: (1) the conversion of up to 35,381,155 shares of Convertible Preferred Stock; (2) no exercise of Par Rights and exercise in full of Discount Rights or the Plan Investors' Backstop Agreement regarding the Discount Rights Offering; (3) the exercise in full of six-month warrants, seven-year warrants and ten-year warrants that are initially exercisable for the purchase of up to 25,113,275 shares of Reorganized Delphi common stock; and (4) the issuance of 17,237,418 shares of Reorganized Delphi common stock to creditors in respect of Trade and Other Unsecured Claims, aggregating approximately US$1,310,000,000. Assuming that all Par Rights are exercised, Delphi anticipates receiving up to US$2,900,000,000 in gross proceeds from the Rights Offerings before deducting fees, including the Plan Investors' backstop commitment fee, and expenses related to the rights offerings: * US$1,600,000,000 from the Discount Rights Offering; and * US$1,300,000,000 from the Par Rights Offering. If any shares of Reorganized Delphi common stock are purchased pursuant to the exercise of Oversubscription Privileges in the Discount Rights Offering, Reorganized Delphi will receive additional gross proceeds of US$0.25 per Oversubscription Privilege share, Mr. O'Neal disclosed. Delphi intends to use the net proceeds from the Rights Offering to make payments and distributions contemplated by the Plan and for general corporate purposes. The net proceeds from the Discount Rights Offering will be used for general corporate purposes, Mr. O'Neal elaborated. On the other hand, the net proceeds from the Par Rights Offering will be used to (i) satisfy certain liquidity requirements and claims asserted by the Debtors' labor unions; (ii) reduce the amount of preferred stock distributed to General Motors Corp.; and (iii) partially satisfy certain unsecured creditors' claims. As of March 10, 2008, the Appaloosa Plan Investors and their affiliates beneficially owned 125,739,448 shares, or 22.3%, of Delphi's existing common stock. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Europe on March 17, 2008, Moody's Investors Service affirmed Delphi Corp.'s Corporate Family Rating of (P)B2 but revised the rating on the company's US$3.7 billon of first lien term loans. Moody's also affirmed Delphi's (P)B3 rating on the company's proposed US$825 million of second lien term loans and its Speculative Grade Liquidity rating of SGL-2. The actions, Moody's said, follow revisions to Delphi's financing arranged for its planned emergence from Chapter 11 bankruptcy protection. Moody's also revised the ratings on Delphi Holdings Luxembourg S.ar.l.'s Euro equivalent of US$200 million first lien term loan, tranche B-1, guaranteed by Delphi Corporation to (P)Ba2 (LGD-2, 17%) from (P)Ba3 (LGD-2, 26%). As reported in the Troubled Company Reporter-Latin America on March 18, 2008, Standard & Poor's Ratings Services still expects to assign a 'B' corporate credit rating to Delphi Corp. if the company emerges from bankruptcy in early April. S&P revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are: -- The US$1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-' (two notches higher than the expected corporate credit rating on Delphi), with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of payment default. -- The US$2 billion "second out" first-lien term loan B-2 is expected to be rated 'B' (equal to the corporate credit rating), with a '4' recovery rating, indicating the expectation of average (30%-50%) recovery in the event of payment default. -- The US$825 million second-lien term loan is expected to be rated 'B-' (one notch lower than the corporate credit rating), with a '5' recovery rating, indicating the expectation of modest (10%-30%) recovery in the event of payment default. DELPHI CORP: Court Allows Probe on Alleged Improper Trading ----------------------------------------------------------- Delphi Corp. and its debtor-affiliates sought and obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to issue subpoenas, pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, directing expedited oral examinations of, and production of documents by, the Debtors' plan investors. The Debtors are working to consummate their confirmed First Amended Joint Plan of Reorganization, which is premised upon consummation of the New Equity Purchase and Commitment Agreement between the Debtors and seven main Plan Investors: * A-D Acquisition Holdings, LLC, and Appaloosa Management, L.P. * Harbinger Del-Auto Investment Company, Ltd., Harbinger Capital Partners Special Situations GP, LLC, and Harbinger Capital Partners Master Fund I, Ltd. * Dolce Investments LLC and Cerberus Capital Management L.P. * Merrill Lynch, Pierce, Fenner & Smith Inc. * UBS Securities LLC and UBS AG * Goldman, Sachs & Co. * Pardus DPH Holding LLC, Pardus Capital Management L.P., Pardus Special Opportunities Master Fund L.P., and Pardus Capital Management LLC Pursuant to the New EPCA, the Plan Investors have agreed to invest up to US$2,550,000,000 of equity financing in reorganized Delphi Corp. The Plan Investors may transfer and assign certain of their rights and obligations under the New EPCA to additional investors. Albert Togut, Esq., at Togut, Segal & Segal LLP, in New York, informs the Court that Delphi recently received information from a stakeholder who "alleged direct knowledge of inappropriate conduct relating to at least one Investor involved with the Debtors' efforts to consummate the Plan." The unnamed Stakeholder's information, Mr. Togut says, included allegations that: (1) one or more Investors may have been trading in or shorting one or more of Delphi's outstanding public securities; (2) the Trading Investors may currently have material unrealized or realized gains on the Illegal Investments; and (3) the Trading Investors may have communicated with Appaloosa, the Debtors' Lead Plan Investor, or Appaloosa's representatives concerning scenarios or courses of conduct pursuant to which the New EPCA will not be consummated or funded to the detriment of the Debtors and their stakeholders. The Debtors have no information that trading activity occurred with the use of material non-public information or that Appaloosa participated in the conduct, Mr. Togut relates. Based on the Debtors' investigation to date, which is in a preliminary stage and remains substantially incomplete, at least six Investors have either acknowledged some short-selling activity or have refused to cooperate with the investigation. An Investor identified by the Stakeholder is included within that group, Mr. Togut notes. The Debtors subsequently wrote to each Investor to request information concerning their activities. Although most Investors cooperated to some degree with the Debtors' investigation, many did not provide complete information, and some Investors refused to cooperate at all. Moreover, many of the Investors objected to providing documents and information because the Debtors do not have formal Court authorization for their inquiries. None of the Lead Plan Investors refused to cooperate with the Debtors' investigation or acknowledged significant short-selling activity for their own account except pursuant to an asserted contractual waiver and behind an ethical wall. The Debtors believe that they are unlikely to obtain the information they need through voluntary cooperation. Judge Drain permits the Debtors to issue subpoenas requiring each Investor to: (a) produce documents concerning their investigation within at least three business days after the date on which an Investor is served with the subpoena; and (b) appear for oral examination under oath within at least two business days after the date on which an Investor is served with the subpoena. Debtors Can File Docs Under Seal Judge Drain also permitted the Debtors to file documents relating to the implementation of the Court's Order under seal if they disclose the name of any Investor. The Court's Order is without prejudice to the Debtors' right to seek additional documents, information and testimony from the Investors or other parties-in-interest concerning their investigation, Judge Drain says. To the extent that any Investor's conduct delays, makes difficult, or interferes with consummation of the Plan in violation of the Investors' contractual or fiduciary duties or duties of good faith, it relates directly to the property, liabilities and financial condition of the Debtors and plainly may affect the administration of the Debtors' estates, Mr. Togut points out. The Debtors, according to him, are not abusing or harassing the Investors. "[T]he Debtors filed this Application reluctantly, and only after determining that the Investors' voluntary cooperation would not suffice to provide the Debtors with the information they need and requested." "[I]f an Investor lacks documents or information concerning inappropriate or apparently inappropriate conduct by itself or another Investor, responding to a subpoena from the Debtors should not be burdensome," Mr. Togut asserts. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 119; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Europe on March 17, 2008, Moody's Investors Service affirmed Delphi Corp.'s Corporate Family Rating of (P)B2 but revised the rating on the company's US$3.7 billon of first lien term loans. Moody's also affirmed Delphi's (P)B3 rating on the company's proposed US$825 million of second lien term loans and its Speculative Grade Liquidity rating of SGL-2. The actions, Moody's said, follow revisions to Delphi's financing arranged for its planned emergence from Chapter 11 bankruptcy protection. Moody's also revised the ratings on Delphi Holdings Luxembourg S.ar.l.'s Euro equivalent of US$200 million first lien term loan, tranche B-1, guaranteed by Delphi Corporation to (P)Ba2 (LGD-2, 17%) from (P)Ba3 (LGD-2, 26%). As reported in the Troubled Company Reporter-Latin America on March 18, 2008, Standard & Poor's Ratings Services still expects to assign a 'B' corporate credit rating to Delphi Corp. if the company emerges from bankruptcy in early April. S&P revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are: -- The US$1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-' (two notches higher than the expected corporate credit rating on Delphi), with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of payment default. -- The US$2 billion "second out" first-lien term loan B-2 is expected to be rated 'B' (equal to the corporate credit rating), with a '4' recovery rating, indicating the expectation of average (30%-50%) recovery in the event of payment default. -- The US$825 million second-lien term loan is expected to be rated 'B-' (one notch lower than the corporate credit rating), with a '5' recovery rating, indicating the expectation of modest (10%-30%) recovery in the event of payment default. IHI CORP: In Talks with Toshiba Corp. Over Nuclear Power Tie-up --------------------------------------------------------------- IHI Corp. and Toshiba Corp. have started negotiations on a comprehensive energy business tie-up, including nuclear power plants, reports The Yomiuri Shimbun. The newspaper's sources disclosed that IHI may spin off a related business and set up a new company that would then be party capitalized by Toshiba. According to The Yomiuri's sources, IHI and Toshiba are considering a plan to integrate their energy business, with Toshiba merging its nuclear power businesses and other related ventures, with the new company at some point in the future. The merger is expected to have a combined annual sales of about JPY1 trillion, surpassing Mitsubishi Heavy Industries, Ltd. Reportedly, Toshiba first sounded out the tie-up and IHI is expected to favor the proposal, but likely will not start full negotiations until after spring, as it is busy revising its accounts due to deteriorating business performance. IHI, aims to reach a tie-up agreement in June at the earliest, after top management is appointed for fiscal 2008. About IHI Corp. Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp -- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a Japan-based company engaged in six business segments. The Logistics and Steel segment offers concrete products, automated storages, loaders and others. The Machinery segment offers plastic processing machines, industrial boilers, pumps and others. The Energy Plant segment develops waste incineration facilities, nuclear power plants, thermal power plants and process plants, water treatment plants, renewable power plants and other facilities. The Aerospace segment produces aircraft engine parts and provides aircraft maintenance services. The Ship and Offshore segment builds container ships, bulk carriers, tankers and other ships, as well as develops marine equipment and machinery and provides design and engineering services. The Others segment provides real estate, financial and insurance services. The Troubled Company Reporter-Asia Pacific reported on Feb. 14, 2008, that Standard & Poor's Ratings Services revised its outlook on the long-term corporate credit rating on IHI Corp. to negative from stable, reflecting growing expectations that the company's steady earnings recovery would be delayed, following the Tokyo Stock Exchange's announcement that it will place the company's stock on "alert status." The outlook change also reflects concerns that the company's financial flexibility will be constrained to some extent by this action. At the same time, Standard & Poor's affirmed its 'BB+' long-term corporate credit and 'BBB-' long-term senior unsecured issue ratings on the company. JAPAN AIRLINES: Sells Stake in Two Subsidiaries ----------------------------------------------- Japan Airlines International's board of directors has decided to sell its 100% shareholding in two of its hotel and travel services subsidiaries -- Asahikawa Resort Development Co., Ltd and Tomakomai Ryokka Kaihatsu Co., Ltd. -- whose main business activity is the management of golf and country clubs located in Japan. JAL's 100% share in Asahikaw Resort, will be sold to Asahi Corporation, while its 100% share in Tomakomai Ryokka will be sold to Sanit Co., Ltd. The JAL Group has stated that it is concentrating its resources on the core air transport business segment in order to achieve sustainable growth. The company is trying to improve asset efficiency by centralizing business resources in the air transport business whilst selling non-core assets. The sale of these two hotel and travel services subsidiaries forms part of this move. The final agreement and share transfer was completed on March 19, 2008. Both the Asahikawa Resort and Tomakomai Ryokka will be removed from the JAL Group's consolidated statement FY2007. Removing the two companies' liabilities from the financial statement will generate special income of about JPY9.0 billion, but JAL's forecast for the current financial will remain unaffected. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. MAZDA MOTOR: Names Philip Spender as Executive Vice-President ------------------------------------------------------------- Mazda Motor Corporation has appointed Philip G. Spender as executive vice president of the company effective April 1, 2008. Mr. Spender has also been appointed as vice president of Ford Motor Company. Mazda's former executive vice president Robert Graziano will resign from his post but will remain a representative director of the board. Mr. Graziano has been appointed as president and CEO of Ford Motor China. Hisakazu Imak, Mazda's chairman of the board, president and CEO said, "Phil Spender brings to Mazda his experience in a wide range of areas, including his 20-year relationship with Mazda which began in the early 1980s," Imaki continued. "Over the years, Spender has cemented and strengthened the close relationship between Ford and Mazda in different operations. This includes his years at Auto Alliance International, a joint venture between Ford and Mazda in North America, as well as presiding over Mazda's investment in Changan Ford Mazda Automobile Co. Ltd. where he was president of the company. We welcome him as a strong addition to our team, and look forward to working closely with him. "We congratulate Bob Graziano on his new appointment. As a leader of Mazda, Graziano has played an integral role in a wide range of areas and was instrumental in the development of the Mazda Advancement Plan and in leading Mazda through the first year of that plan. He worked tirelessly to build the Mazda brand around the world, and to continue to drive further efficiencies throughout the organization. We look forward to working with Graziano in his new role with Ford China." About Mazda Motor Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor Corporation -- http://www.mazda.co.jp/-- together with its subsidiaries and associates, is primarily involved in the manufacture and distribution of automobiles. The company manufactures passenger cars and commercial vehicles. Mazda Motor distributes its products in both domestic and overseas markets. The company has 58 subsidiaries. It has overseas operations in the United States, Canada, Mexico, Germany, Belgium, France, the United Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand, Indonesia and China. The Company has a global network. * * * As reported in the TCR-AP on April 27, 2007, Standard & Poor's Ratings Services raised Mazda Motor Corp.'s long-term corporate credit rating to BB and the company's long-term senior unsecured debt rating to BB+. METHANEX CORP: Cuts Chile Work Force by 15% ------------------------------------------- Methanex Corp. has laid off 15 percent of its Chilean workers after cuts in natural gas supplies from Argentina hindered its ability to operate, Reuters reports. Methanex, since June last year, has not received natural gas from Argentine providers, forcing it to halt operations to about 30 percent capacity in Chile, the report adds. Citing Paul Schiodtz, senior vice president of Methanex for Latin America, Reuters relates that the company has been forced to restructure its Chile operations after nine months without gas from its providers in Argentina and after exhausting all options to re-establish it. About Methanex Corporation Vancouver-based Methanex Corp. (Toronto: MX) (NASDAQGM: MEOH) -- http://www.methanex.com/-- is a publicly-traded company engaged in the production, distribution, and marketing of methanol. The company's stock also trate on foreign securities market of the Santiago Stock Exchange in Chile under the trading symbol "Methanex." * * * Moody's Investor Services' credit ratings for the company's unsecured notes at Sept. 30, 2007, is Ba1. Moody's said the outlook is stable. SOJITZ CORP: Gets JPY7.5 Billion Order from Promtractor-Vagon