T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, March 26, 2008, Vol. 11, No. 60 Headlines A U S T R A L I A ABC LEARNING: Continues Talks With Morgan Stanley on Asset Sale ACCESS GAMING SYSTEMS: Placed Under Voluntary Liquidation ACCESS GAMING SYSTEMS ASIA: Members Opt to Liquidate Business ALLBUILT FRAMES: Members Opt to Liquidate Business ALLCO FINANCE: Debt Extension Approval Causes Shares to Rise ALLCO FINANCE: Hires Marathon Capital for Energy Business Sale ALLCO FINANCE: Unit Appoints Stephen Davey as AHI's New CEO BEAVER NEST: Undergoes Liquidation Proceedings BOWLES INVESTMENTS: Placed Under Voluntary Liquidation CREDIT SUISSE: Members' Final Meeting Slated for April 4 GOODWILL GROUP: Rejects Partnership with United Technology IS KDBOWLES: Commences Liquidation Proceedings QUALITY FORMWORKS: Supreme Court Enters Wind-Up Order WARNER LAMBERT CONSUMER: Members Opt to Liquidate Business WARNER LAMBERT PTY: Members Resolve to Liquidate Business C H I N A & H O N G K O N G & T A I W A N BANK OF CHINA: Cooperates With Seabank for Int'l Payments CHINA EASTERN: To Ink Code Sharing Agreement with Japan Airlines CHINA SOUTHERN: To Open Chengdu-Zhengzhou-Ordos Flights CHINA TEAM XXI: Creditors' Proofs of Debt Due April 18 CITIC SECURITIES: Pulls Out Investment Plans with Bear Stearns FOREST BOARD: Creditors' Meeting Set for March 27 HAINAN AIRLINES: To Add 17 Aircraft to Fleet This Year HONG KONG YOSHITOKU: Members' Meeting Set for April 16 KARALEE LIMITED: Members' Meeting Set for April 18 LANDWIDE DEVELOPMENT: Members' Meeting Set for April 8 ORIENTAL SUN: Creditors' Proofs of Debt Due April 21 PARONAMA MANAGMENT: Members' Meeting Set for April 18 PETROLEOS DE VENEZUELA: Migrates Sincor Project Senior Debt RUSHMORE ENTERPRISES: Members' Meeting Set for April 16 SHANGHAI PUDONG: Shareholders Approve Plan to Raise CNY20 Bil. SHANGHAI PUDONG: Says Share Sale Will Hike Net Profit by 50% SHEEN FAITH: Members and Creditors to Meet on April 18 SHENZEN DEVELOPMENT BANK: Raises CNY6.5 Billion From Bond Sale TAI SHING: Commences Liquidation Proceedings UNICOMMU ADVERTISING: Commences Liquidation Proceedings I N D I A AXIS BANK: Plans to Sell MYR1 Billion in Bonds BHARTI AIRTEL: Won't Make Aggressive Tariff Cuts, Executive Says GMAC LLC: Michael Rossi Resigns as ResCap Chairman QUEBECOR WORLD: Seeks Nod to Pay Prepetition Wages to Managers TATA MOTORS: Fiat JV Increases India Investment by INR2,341 Cr. TATA POWER: Competes for 1,320-MW Punjab Thermal Power Project TATA TELESERVICES: Brings In Two Directors to Board I N D O N E S I A ADAM AIR: Air Transport Ministry Suspends Operations CA INC: Ample Cash Flow Prompts S&P's Positive CreditWatch GOODYEAR: S&P Lifts Rating on Class A-1 and A-2 Certs. to BB- SEMEN GRESIK: Q4 Profit Jumps 87% to IDR503.5 Billion TUPPERWARE: To Hold First Quarter Conference Call on April 23 J A P A N AMR CORP: S&P Revises Outlook to Negative on Expected Loss BANK OF IKEDA: Business Integration With Senshu to Start in 2009 GOODWILL GROUP: United Technology Acquires 30% Stake JAPAN AIRLINES: Mitsubishi Corp. Buys 60 Mln. Preferred Shares JAPAN AIRLINES: Expands Code Share With China Eastern Airlines PRIMUS FINANCIAL: Fitch Puts 'B' Rating Under Positive Watch XERIUM TECHNOLOGIES: Moody's Cuts Ratings on High Default Risk XM SATELLITE: Merger w/ Sirius is Not Anti-Competitive, DOJ Says K O R E A CHONGKUNDANG CORP: Wins Drug Patent on March 12 DAEHAN PULP: Yuhan-Kimberly Corporation Drops Patent Lawsuit DAEWOO ELECTRONIC: Korean Firm Holds Largest Stake at 11% DURA AUTOMOTIVE: Reveals Liquidation Analysis Under Ch. 11 Plan DURA AUTOMOTIVE: Ad Hoc Committee Seeks to Inspect Records M A L A Y S I A MANGIUM: FIC Approves MPSB's Proposed Share Disposal to GEMFI N E W Z E A L A N D 323 DISTRIBUTION: Shareholders Agree on Voluntary Liquidation ADVANCED TECHNOLOGY: Commences Liquidation Proceedings AQUA GLASS: Fixes March 25 as Last Day to File Claims AUK HOLDINGS: Taps Nellies & Deuchrass as Liquidators CALEB H CONTRACTING: Court Enters Wind-Up Order IVY (NZ): Fixes March 31 as Last Day to File Claims JOHN T BUILDERS: Shareholders Opt to Liquidate Business L G ENTERPRISES: Taps Nellies & Deuchrass as Liquidators NORTHBROOK DOWNS: High Court Directs Wind-Up Order QT HOSPITALITY: Fixes April 18 as Last Day to File Claims P H I L I P P I N E S IPVG CORP: Unit Ties Up With Korean Game Developer EST Soft IPVG CORP: To Issue as Much as 38 Million Shares to Employees GEOGRACE: In Talks With South American Firm for Copper Project S I N G A P O R E SPECTRUM: Sets 2008 Annual Shareholders Meeting on April 29 STATS CHIPPAC: Intends to Terminate Its Level I ADR Program T H A I L A N D DOLE FOOD: S&P Downgrades Corporate Credit Rating to 'B-' * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Continues Talks With Morgan Stanley on Asset Sale --------------------------------------------------------------- ABC Learning Centres Ltd. says it is still in discussions with Morgan Stanley Private Equity about the sale of 60% of its U.S. assets. The company said the exclusivity period for the negotiations with Morgan Stanley expired on March 25, New York time, but the discussions are continuing. According to Reuters, the sale proceeds, estimated to be AU$750 million, will be used to pay the company's debt. The report relates that the deal was subject to approval from ABC's banks. However, should the sale not push through, ABC claims that it will still be able to meet its financial covenants under its existing banking facilities, Reuters relates. About ABC Learning A.B.C. Learning Centres Limited provides childcare services and education. The company operates in Australia, New Zealand, the United States and the United Kingdom. The company's subsidiaries include A.B.C. Developmental Learning Centres Pty Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier Early Learning Centres Pty Ltd, A.B.C. Developmental Learning Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centres Australia Ltd. On September 25, 2006, the company acquired Hutchison Child Care Services Ltd. On September 7, 2006, it acquired The Children's Courtyard LLP. On December 18, 2006, it acquired Busy Bees Group Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. As reported by the Troubled Company Reporter-Asia Pacific on February 29, 2008, the company's Sydney trading on Feb. 26, plunged 43% after a slump in earnings raised concerns it may struggle to repay debt. The drop to AU$2.14 triggered margin calls on stakes held by some directors. Consequently, stock trading was halted as the company entered talks on "indications of interest" for parts of its business. More than 96% of the remaining 21.9 million ABC Learning shares owned by directors, equivalent to 4.6% of stock outstanding, are held in margin lending arrangements that may result in forced sales. ACCESS GAMING SYSTEMS: Placed Under Voluntary Liquidation --------------------------------------------------------- Access Gaming Systems Pty Limited's members agreed on February 19, 2008, to voluntarily liquidate the company's business. The company has appointed Chris Wykes to facilitate the sale of its assets. The liquidator can be reached at: Chris Wykes Lawler Partners Chartered Accountants 1 O'Connell Street, Level 9 Sydney, New South Wales 2000 Australia About Access Gaming Access Gaming Systems Pty. Limited is a distributor of prepackaged software. The company is located at North Sydney in New South Wales, Australia. ACCESS GAMING SYSTEMS ASIA: Members Opt to Liquidate Business ------------------------------------------------------------- Access Gaming Systems Asia Pacific Pty. Ltd.'s members agreed on February 19, 2008, to voluntarily liquidate the company's business. The company has appointed Chris Wykes to facilitate the sale of its assets. The liquidator can be reached at: Chris Wykes Lawler Partners Chartered Accountants 1 O'Connell Street, Level 9 Sydney, New South Wales 2000 Australia About Access Gaming Systems Access Gaming Systems Asia Pacific Pty. Ltd. is involved with computer integrated systems design. The company is located at North Sydney in New South Wales, Australia. ALLBUILT FRAMES: Members Opt to Liquidate Business -------------------------------------------------- Allbuilt Frames & Trusses Pty. Limited's members agreed on February 22, 2008, to voluntarily liquidate the company's business. The company has appointed George Tolcher and Rowena Margaret Sigelski to facilitate the sale of its assets. The liquidators can be reached at: Paul Andrew Billingham Garth Desmond Olling c/o Grant Thornton 383 Kent Street, Level 17 Sydney, New South Wales 2000 Australia About Allbuilt Frames Allbuilt Frames & Trusses Pty. Limited is a distributor of structural wood members. The company is located at Wyee in New South Wales, Australia. ALLCO FINANCE: Debt Extension Approval Causes Shares to Rise ------------------------------------------------------------ Allco Finance Group Ltd.'s shares rose after two of its funds were granted more time to repay debts, Stuart Kelly writes for Bloomberg News. Allco, states Bloomberg, doubled to 42.5 Australian cents at the 4:10 p.m. close of trading in Sydney on March 25. Bankers for Rubicon Japan Trust and Allco Commerical Real Estate Investment Trust, both managed by Allco Finance, agreed to extend maturity dates for loans and currency hedging arrangements, easing concern Allco Finance will be unable to refinance debt, relates Bloomberg. Rubicon Japan, which invests in property, said National Australia Bank Ltd. agreed to extend the maturity date for a loan and currency-hedging arrangements by 12 months to March 31 next year. Daryl Loo of Reuters reports that Allco Commercial received approval for a 17-month extension of the maturity date for its AU$390 million debt. According to the report, Allco REIT's manager "is currently reviewing the terms and conditions of the extension and will execute binding documentation as soon as practicable," adding that the due date has been extended from July 31 this year to December 2009. Reuters relates that another SGD70 million of debt due to mature on November 22, 2008 will be repaid in full with the proceeds from its sale of the Allco Wholesale Property Fund. About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid puttings its operations in the hands of administrators. According to The Age, Allco board is faced with four problems: -- Meeting a fast-approaching deadline to refinance at least US$250 million in debt. -- Ensuring there is enough cash to cover its continuing, and much larger, loan commitments. -- Renegotiating or pulling out of a recently announced joint venture deal to buy US$1.7 billion of US power stations, of which Allco would fund half by debt and equity. -- Signing the company's accounts, for which they will be personally liable, that would allow the suspension on Allco's beleaguered shares to be lifted. ALLCO FINANCE: Hires Marathon Capital for Energy Business Sale -------------------------------------------------------------- Allco Finance Group has retained Marathon Capital, LLC to assist it in the sale of its global wind energy business, Allco Wind Energy. AWE owns, or has rights to, a portfolio of investments in wind energy projects totaling approximately 4,000 MW in the United States, Europe and Australasia and features one of the largest wind development projects in the world -- the 3,100 MW Tehachapi project in California. AWE can also boast a well established and recognized global team of 23 wind energy specialist staff with over 150 years of experience in originating, developing, constructing, financing and operating wind and energy projects. Commenting on AWE, Ted Brandt, chief executive officer of Marathon stated, "Allco Wind Energy's gigantic Tehachapi project in California is the Crown Jewel of the US and global wind industry. It is the largest single location development project available in the world today and is supported by a very conducive wind energy environment and the largest utility-backed wind energy Power Purchase Agreement in the US market. The successful acquirer of this vast and highly attractive project will gain an unrivalled renewables platform in California, the U.S.'s largest and most energy hungry state." Key parts of the AWE portfolio, which may be sold as a single global business or in three separate geographic parts, include: (1) USA/Tehachapi: Covering 50 square miles in predominately Kern County, California a proven wind area in the US, the Tehachapi project creates a unique opportunity for a potential buyer to gain immediate scale in the US wind energy market. This project has a multi-year development and power purchase agreement (PPA) with Southern California Edison for 1,550 MW, (this agreement is the largest ever signed, providing power for over a million households) and a 24 MW installed and soon to be operating "behind the meter" contract with California Portland Cement Company. Further, beyond the initial land required for the PPA, the project company has additionally secured both the key land agreements and the transmission queue positions for the additional expansion capacity. These critical development milestones are particularly valuable in a US state that has high renewable energy standards, scarcity of appropriate land for wind energy and where investors place a very high value on PPAs. (2) Australasia: Approximately 1,600 MW involving 8 projects in Australia of 1,114MW and 6 projects in New Zealand for 538 MW (3) Europe: Approximately 100MW created by 6 operational wind farms located in Germany and 4 wind projects in construction and pre-construction (2 in France and 2 in Germany) Commenting on the potential sale Steen Stavnsbo, chief executive officer & managing director of Allco Wind Energy, said, "This is a unique opportunity to secure a significant strategic stake in the all important Californian energy market, as well as a network and international portfolio in a sector whose long term growth is supported by the increasing global demand for clean energy. In addition, the AWE team's exceptional knowledge of the industry puts it at the forefront of this growth opportunity as it creates a high quality pipeline of future deals and advanced procurement of equipment." About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid puttings its operations in the hands of administrators. According to The Age, Allco board is faced with four problems: -- Meeting a fast-approaching deadline to refinance at least US$250 million in debt. -- Ensuring there is enough cash to cover its continuing, and much larger, loan commitments. -- Renegotiating or pulling out of a recently announced joint venture deal to buy US$1.7 billion of US power stations, of which Allco would fund half by debt and equity. -- Signing the company's accounts, for which they will be personally liable, that would allow the suspension on Allco's beleaguered shares to be lifted. ALLCO FINANCE: Unit Appoints Stephen Davey as AHI's New CEO ----------------------------------------------------------- Allco HIT Limited, which is majority owned by Allco Finance Group Limited, underwent some personnel reshuffling, Niraj Shah of Egoli News reports. According to the report, Allco appoint Steven Davey as the new chief executive officer. Neil Lewis, who was a non-executive director of AHI, would become the chairman of the board while former chairman Christopher West would remain as an executive director. John Drabble would no longer be carrying on his duties as managing director. No further details were provided by Mr. Shah as to Mr. Drabble's plans. About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid puttings its operations in the hands of administrators. According to The Age, Allco board is faced with four problems: -- Meeting a fast-approaching deadline to refinance at least US$250 million in debt. -- Ensuring there is enough cash to cover its continuing, and much larger, loan commitments. -- Renegotiating or pulling out of a recently announced joint venture deal to buy US$1.7 billion of US power stations, of which Allco would fund half by debt and equity. -- Signing the company's accounts, for which they will be personally liable, that would allow the suspension on Allco's beleaguered shares to be lifted. BEAVER NEST: Undergoes Liquidation Proceedings ---------------------------------------------- Beaver Nest Pty. Limited's members agreed on February 22, 2008, to voluntarily liquidate the company's business. The company has appointed Raymond George Tolcher to facilitate the sale of its assets. The liquidator can be reached at: Raymond George Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West, New South Wales 2302 Australia About Beaver Nest Beaver Nest Pty. Limited is involved with non-residential construction. The company is located at Lambton in New South Wales, Australia. BOWLES INVESTMENTS: Placed Under Voluntary Liquidation ------------------------------------------------------ Bowling Investments Pty. Ltd.'s members agreed on June 27, 2007, to voluntarily liquidate the company's business. The company has appointed Paul Andrew Billingham and Garth Desmond Olling to facilitate the sale of its assets. The liquidators can be reached at: Paul Andrew Billingham Garth Desmond Olling c/o Grant Thornton 383 Kent Street, Level 17 Sydney, New South Wales 2000 Australia About Bowling Investments Located at Peppermint Grove, in Western Australia, Australia, Bowling Investments Pty. Ltd. is an investor relation company. CREDIT SUISSE: Members' Final Meeting Slated for April 4 -------------------------------------------------------- Keiran Hutchison, Credit Suisse First Boston Pacific Finance Limited's appointed estate liquidator, will meet with the company's members on April 4, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Keiran Hutchison Ernst & Young 680 George Street, Level 37 Sydney, New South Wales 2000 Australia Telephone:(02) 9248 4991 About Credit Suisse Credit Suisse First Boston Pacific Finance Limited is involved with functions related to deposit banking. The company is located at Sydney in New South Wales, Australia. GOODWILL GROUP: Rejects Partnership with United Technology ---------------------------------------------------------- Goodwill Group Inc. rejected a business partnership proposal by its biggest shareholder, United Technology Holdings Co., reports Neil Roland at Bloomberg News, citing the Nikkei English News. Mr. Roland relates that Goodwill had warned United Technology that if it continuesto buy the staffing company's shares it would lead to confusion over the chip foundry's partnership plan. Goodwill President Shinichi Horji was scheduled to meet United Technology President Yoichi Wakayama, says Bloomberg. Nikkei, according to Bloomberg, states that United Technology sought talks with Cerberus Capital Management LP, but may have suggested that United Technology talk instead with Goodwill. About Goodwill Group Japan-based The Goodwill Group, Inc. -- http://www.goodwill.com/gwg/english/index.html -- is a involved in five business segments. The Staffing segment offers recruitment services for technicians, senior workers and others. The Human Resources-related segment provides employee-hiring support services to corporate clients, counseling services to workers and outplacement services to retired and retiring workers. The Nursing-care and Medical Support segment is engaged in the provision of home-care services, care services in facilities and dental examination services at home, as well as the sale of nursing-care goods and equipment, among others. The Senior Residence and Restaurant segment operates nursing home under the name THE BARRINGTON HOUSE, and also operates restaurant in both domestic and overseas markets. The Others segment is engaged in the planning, designing and management of pet care facilities, the operation of pet care shops, the operation and management of nurseries, the provision of baby- sitting services and others. The Troubled Company Reporter-Asia Pacific reported on June 14, 2007, that Goodwill Group is thinking of selling its home nursing-care services division after the Japanese government banned it from renewing its licenses due to its involvement in a fraud scandal. The article conveys that the firm allegedly obtained some of the licenses for nursing-care service operators certified under a public insurance program through fraudulent applications, including those with an inflated number of employees. IS KDBOWLES: Commences Liquidation Proceedings ---------------------------------------------- IS Kdbowles Pty. Ltd.'s members agreed on June 27, 2007, to voluntarily liquidate the company's business. The company has appointed Paul Andrew Billingham and Garth Desmond Olling to facilitate the sale of its assets. The liquidators can be reached at: Paul Andrew Billingham Garth Desmond Olling c/o Grant Thornton 383 Kent Street, Level 17 Sydney, New South Wales 2000 Australia About IS Kdbowles IS Kdbowles Pty. Ltd. is a distributor of metal doors, sash, and trim. The company is located at Mortdale in New South Wales, Australia. QUALITY FORMWORKS: Supreme Court Enters Wind-Up Order ----------------------------------------------------- On February 22, 2008, the Supreme Court of New South Wales entered an order to have Quality Formworks Pty. Limited's operations wound up. D. I. Mansfield was appointed as liquidator. The liquidator can be reached at: D. I. Mansfield Moore Stephens Chartered Accountants 460 Church Street, Level 6 Parramatta, New South Wales 2150 Australia About Quality Formworks Quality Formworks Pty. Limited is involved with residential construction. The company is located at Merrylands in New South Wales, Australia. WARNER LAMBERT CONSUMER: Members Opt to Liquidate Business ---------------------------------------------------------- Warner Lambert Consumer Healthcare Pty. Limited's members agreed on January 21, 2008, to voluntarily liquidate the company's business. The company has appointed Simon J. Cathro and David J. F. Lombe to facilitate the sale of its assets. The liquidators can be reached at: Simon J. Cathro David J. F. Lombe Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Warner Lambert Consumer Warner Lambert Consumer Healthcare Pty. Limited is involved with pharmaceutical preparations. The company is located at Caringbah in New South Wales, Australia. WARNER LAMBERT PTY: Members Resolve to Liquidate Business --------------------------------------------------------- Warner Lambert Pty Ltd's members agreed on January 21, 2008, to voluntarily liquidate the company's business. The company has appointed Simon J. Cathro and David J. F. Lombe to facilitate the sale of its assets. The liquidators can be reached at: Simon J. Cathro David J. F. Lombe Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Warner Lambert Warner Lambert Pty. Ltd. is involved with pharmaceutical preparations. The company is located at Caringbah in New South Wales, Australia. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== BANK OF CHINA: Cooperates With Seabank for Int'l Payments --------------------------------------------------------- Bank of China Limited has agreed to cooperate with the Southeast Asian Bank in international payments, TradingMarkets.com reports. Under the agreement, Bank of China will transfer funds to the Chinese market for Seabank as well as provide letters of credit and handle orders of payment in US dollars. Seabank leaders say China is a promising market for Vietnamese businesses, and in order to meet growing client demands the bank has had to establish relations with a major local bank like Bank of China, TradingMarkets.com reports. The two banks' cooperation will also help Seabank expand its service network and cooperation with other banks over the world. Beijing-based Bank of China Limited -- http://www.bank-of- china.com/en/static/index.html -- is a Chinese bank that has presence in all major continents. The company offers financial services through its global network of over 560 overseas offices in 25 countries and regions. In Hong Kong and Macao, Bank of China is one of the local note issuing banks. Traditional commercial banking constitutes the majority of Bank of China's business, which is composed of corporate banking, retail banking and banking with financial institutions. The company has branches in Singapore, Japan, Kazakhstan, London, Grand Cayman, and the United States. Moody's Investors Service gave the bank a bank financial strength rating of D- on May 4, 2007. The Troubled Company Reporter-Asia Pacific reported that Fitch Ratings affirmed the bank's D individual rating on Dec. 14, 2006. CHINA EASTERN: To Ink Code Sharing Agreement with Japan Airlines ---------------------------------------------------------------- From March 30, 2008, Japan Airlines will start code sharing on six additional routes operated by China Eastern Airlines between China and Japan. The new code share agreement will enable Japan Airlines to place its "JL" designator on China Eastern's flights operating between Shanghai - Kagoshima, Shanghai - Matsuyama, Shanghai- Niigata, Shanghai - Okinawa (Naha) Qingdao - Fukuoka, and Qingdao - Nagoya (Chubu). With this code share expansion, Japan Airlines' Japan-China network will serve 13 cities in China on 36 routes with a total of 318 flights per week. Of these flights Japan Airlines operates some 180 flights per week to 10 airports in China. From the point of customer convenience, Japan Airlines is expanding flight frequency between Japan and the high growth market of China and offers the largest network between the two countries. Japan Airlines and China Eastern have been code share partners since September 2002. The new agreement increases to 15 the number of routes on which the airlines code share. Furthermore, Japan Airlines inaugurated a reciprocal frequent flyer program agreement with China Eastern, on Feb. 1, 2008. Members of Japan Airlines' frequent flyer program, JAL Mileage Bank, can now accumulate mileage when traveling on China Eastern flights and redeem award tickets on China Eastern flights. About Japan Airlines Asia's largest airline group, the JAL Group serves 213 airports in 33 countries and territories, including 61 airports in Japan. The Group network extends over 235 international passenger, 39 international cargo, and 160 domestic routes. Altogether, the nine airlines of the JAL Group make a total of over 1,200 flights a day, and in fiscal year 2006 carried nearly 58 million passengers. JAL Group operates a fleet of 276 aircraft including 64 Boeing 747s and 39 state-of-the-art B777s and is gradually introducing more fuel efficient medium and small-size aircraft such as the new high-tech Boeing 787 and B737 New Generation. For more information, please visit http://www.jal.com/ About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA 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. CHINA TEAM XXI: Creditors' Proofs of Debt Due April 18 ------------------------------------------------------ Creditors of China Team XXI Limited are required to file their proofs of debt by April 18, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 6, 2008. The company's liquidator is: Cheung Po Kwan Euro Trade Centre, 20th Floor 21-23 Des Voeux Road Central, Hong Kong CITIC SECURITIES: Pulls Out Investment Plans with Bear Stearns -------------------------------------------------------------- Citic Securities formally acknowledged it had pulled out of a planned US$1 billion investment in Bear Stearns Cos., following JP Morgan's purchase of the troubled Wall Street firm, The Financial Times reports. Citic told the news agency that it had cancelled all negotiations over business co-operation with Bear Stearns, but would continue to look for other opportunities to expand overseas. "The basis and preconditions for strategic co-operation with Bear Stearns no longer exist," Citic told the Financial Times. According to the report, the collapse of the Bear Stearns deal is another blow to Beijing's plan of internationalizing the nation's state-owned financial institutions through overseas acquisitions. In 2007, Chinese financial groups made a series of high-profile offshore investments. But most of them are now deeply in the red and officials in Beijing appear to be turning cautious. Bear Stearns and Citic announced a deal in Nov. 2007, in which the Chinese brokerage would first give Bear Stearns US$1 billion for about 6% of the US firm, the Financial Times notes. Bear Stearns would eventually return the money for about 2% of Citic. But after shares in Bear Stearns and Citic fell more than 50%, the firms re-started talks in Feb. to increase the size of their stakes in each other, the Financial Times reports. The two sides were also planning an Asia-wide investment banking joint venture. Wang Dongming, chairman of Citic Securities, told the Financial Times recently that he and other top financial officials were keenly aware of the experience of Japan in the 1980s, when that country's firms went on a buying spree in the west. Mr. Wang said Chinese firms were keen to avoid mistakes made by Japanese investors by better localizing their businesses and utilizing talent in their target markets, the Financial Times relays. In the case of Bear Stearns, Citic narrowly avoided getting burnt in part because of the long and laborious approval process imposed by Chinese regulators who were yet to sign off on the deal, the Financial Times reports. State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services said that it had removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. FOREST BOARD: Creditors' Meeting Set for March 27 ------------------------------------------------- Members of Forest Board and Paper Limited will have their final meeting on March 27, 2008, at the 14th Floor of the Hong Kong Club Building, 3A Charter Road in Central, Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. HAINAN AIRLINES: To Add 17 Aircraft to Fleet This Year ------------------------------------------------------ Hainan Airlines Co. plans to add 17 new aircraft to its fleet this year, including 12 Boeing 737-800 jets, two Airbus A330s and three Airbus A340s, Reuters reports. The company, the report notes, also reported a 290% increase in its 2007 net profit to CNY651.39 million, lower than its forecast of a 300% increase. The company's sales rose 6% to CNY13.56 billion, the report relates. Edmund Klamann of Reuters writes that the company, in 2008, will buy the 10 B737-800s at a total price of about CNY3.5 billion, and will lease the remaining seven aircraft. About Hainan Airlines Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. The airline currently holds Xinhua Far East China Rating's CC issuer credit rating that was placed on October 31, 2005. HONG KONG YOSHITOKU: Members' Meeting Set for April 16 ------------------------------------------------------ Members of Hong Kong Yoshitoku Company Limited will have their final meeting on April 16, 2008, on the 35th Floor of One Pacific Place at 88 Queensway in Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidators are: Lain Kar Yan (Derek) Darach E. Haughey One Pacific Place, 35th Floor 88 Queensway, Hong Kong KARALEE LIMITED: Members' Meeting Set for April 18 -------------------------------------------------- Members of Karalee Limited will have their final meeting on April 18, 2008, on the 23rd Floor of Wheelock House at 20 Pedder Street in Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator is: Kevin Chung Ying Hui Wheelock House, 23rd Floor 20 Pedder Street, Hong Kong LANDWIDE DEVELOPMENT: Members' Meeting Set for April 8 ------------------------------------------------------ Members of Landwide Development Company Limited will have their final meeting on April 8, 2008, in Room 403 on the 4th Floor of Wing On House at 71 Des Vouex Road, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidators are: Tse Chiang Kwok, Nassar Tam Chun Wan Wing On House, Room 403, 4th Floor 71 Des Vouex Road Central, Hong Kong ORIENTAL SUN: Creditors' Proofs of Debt Due April 21 ---------------------------------------------------- Creditors of Oriental Sun Industrial Limited are required to file their proofs of debt by April 21, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 14, 2008. The company's liquidator is: Wong Pong Kwok Ivan Lippo Sun Plaza, Unit 1110 28 Canton Road Tsimshatsui Kowloon, Hong Kong PARONAMA MANAGMENT: Members' Meeting Set for April 18 ----------------------------------------------------- Members of Paronama Management Company Limited will have their final meeting on April 18, 2008, on the 23rd Floor of Wheelock House at 20 Pedder Street, in Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator is: Kevin Chung Ying Hui Wheelock House, 23rd Floor 20 Pedder Street, Hong Kong PETROLEOS DE VENEZUELA: Migrates Sincor Project Senior Debt ----------------------------------------------------------- Petroleos de Venezuela S.A. has achieved a successful migration of the senior debt of the Sincor project to the new empresa mixta (mixed company), Petrocedeno, S.A., created to carry on the project in accordance with the applicable legislation governing the Venezuelan petroleum industry. Corporacion Venezolana del Petroleo, S.A. (CVP), a subsidiary of PDVSA, holds a 60% interest in Petrocedeno, which assumed the senior debt obligations while PDVSA guaranteed 60% of the bank debt. Total (France) and Statoil (Norway) are the foreign shareholders in Petrocedeno, holding 30.33% and 9.67% interests, repectively. Prior to the migration of the project debt, the senior debt consisted of bank loans in the aggregate amount of US$620 million and loans from affiliates of the project sponsors, PDVSA, Total and Statoil, in the aggregate amount of US$1,338 million, adding up to a total of US$1,958 million. Following the prepayments made in connection with the migration, the total outstanding debt is US$1,419 million. The negotiations were conducted with JPMorgan Chase, the administrative agent, and a steering committee of major international banks, including BNP Paribas, Calyon, Royal Bank of Scotland, Societe Generale and WestLB. Other participating banks were Banco Bilbao Vizcaya Argentaria, S.A., Banco Provincial, S.A. Banco Universal, Santander Investment Bank Ltd., Barclays Bank Plc, Bayerische Hypo-und Vereinsbank AG, Bayerische Landesbank, IXIS Corporate & Investment Bank, Banque Federale des Banques Populaires, Natixis, Credit Industriel et Commercial, DekaBank Deutsche Girozentrale, Deutsche Bank AG London Branch, Dexia Bank Belgium S.A., Lispenard Street Credit (Master) Ltd., DnB NOR Bank ASA, Export Development Canada, Industrial & Commercial Bank of China, ING Belgium S.A., Succursale en France, ING Bank N.V., LRP Landesbank Rheinland- Pfalz, Mizuho Corporate Bank (USA), Nordea Bank Finland Plc, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation. With the migration of the Petrocedeno debt, the confidence and support of the financial community to PDVSA and the migration process of the extinct association agreements of the Faja of the Orinoco to the new empresa mixta, under the Full Oil Sovereignity policy carried by the Government of the Bolivarian Republic of Venezuela is consolidated. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. RUSHMORE ENTERPRISES: Members' Meeting Set for April 16 ------------------------------------------------------- Members of Rushmore Enterprises Limited will have their final meeting on April 16, 2008, on the 20th Floor of Prince's Building in Central, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidators are Lain Kar Yan (Derek) and Darach E. Haughey. SHANGHAI PUDONG: Shareholders Approve Plan to Raise CNY20 Bil. -------------------------------------------------------------- Shareholders of Shanghai Pudong Development Bank Co., Ltd. has approved a plan to raise no more than CNY20 billion (US$2.83 billion) via a sale of new shares to boost its capital base, Reuters reports. Shareholders representing about 80% of the bank's shares voted to approve the fund-raising plan. According to Reuters, Shanghai Pudong announced in late February it planned to issue up to 800 million new shares to raise about CNY25 billion, down from an initial plan for around CNY40 billion. But Shanghai Pudong's Chairman Ji Xiaohui has told shareholders at a meeting in Shanghai to vote on the bank's plan to raise at most CNY20 billion, a further reduction from its original target, Reuters relates, citing shareholders who attended the meeting. Mr. Ji said that the timing for implementing the fund-raising plan would depend mainly on market conditions, and that all proceeds raised by the new share issuance would be used to boost the bank's capital adequacy ratio, Reuters says. The bank hopes to increase its capital adequacy ratio to 11% after the share sale, compared with 9.15% at the end of 2007 and the minimum regulatory requirement of 8%, Reuters reports. Mr. Ji told Reuters in an interview in Bejing early this month that the bank would not need to tap capital markets for a major fund-raising for another three years after the planned sale of new shares. Headquartered in Shanghai, China, Shanghai Pudong Development Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial bank involved in personal banking, corporate banking, and inter- bank business. The bank also offers Internet banking and telephone banking. Fitch Ratings on March 12, 2007, upgraded the Support ratings of Shanghai Pudong Development Bank to 3 from 4, reflecting the improved ability of the government to support domestic financial institutions and the close relationship between the bank and the central and local governments. At the same time, the agency affirmed the bank's individual rating at D. The bank, as of May 4, 2007, also carried Moody's Investors Service's Ba1 financial strength rating. SHANGHAI PUDONG: Says Share Sale Will Hike Net Profit by 50% ------------------------------------------------------------ Shanghai Pudong Development Bank Co., Ltd. said the bank can boost its net profit 50% or more in 2008 if it completes its planned sale of new shares within the year, reports Fang Yan of Reuters. The bank's president Fu Jianhua told shareholders at a meeting that he was confident of boosting net profit by at least 50% this year if the bank carries out its plan to raise up to CNY20 billion, Mr. Fang relates. Shanghai Pudong reported a net profit of CNY5.5 billion for 2007. According to the report, Mr. Fu also told shareholders that the bank will strive to boost net profit to CNY10 billion this year. The new share plan was already approved by shareholders. Headquartered in Shanghai, China, Shanghai Pudong Development Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial bank involved in personal banking, corporate banking, and inter- bank business. The bank also offers Internet banking and telephone banking. Fitch Ratings on March 12, 2007, upgraded the Support ratings of Shanghai Pudong Development Bank to 3 from 4, reflecting the improved ability of the government to support domestic financial institutions and the close relationship between the bank and the central and local governments. At the same time, the agency affirmed the bank's individual rating at D. The bank, as of May 4, 2007, also carried Moody's Investors Service's Ba1 financial strength rating. SHEEN FAITH: Members and Creditors to Meet on April 18 ------------------------------------------------------ Sheen Faith Limited will hold a joint meeting for its members and creditors at 4:00 p.m. on April 18, 2008. During the meeting, the company's liquidator, Kwan Pak Kong at Room 1304, C C Wu Building, 302-8 Hennessy Road, Wanchai, in Hong Kong, will provide the attendees with property disposal and winding-up reports. SHENZEN DEVELOPMENT BANK: Raises CNY6.5 Billion From Bond Sale -------------------------------------------------------------- Shenzhen Development Bank sold CNY6.5 billion in 10-year bonds, Reuters reports citing sole underwriter UBS. According to the report, the bank, through UBS Securities, sold lower Tier 2 fixed-rate bonds, with a 10-year maturity and not callable for five years at a 6.10% coupon, and a floating-rate tranche at 140 basis points over SHIBOR. UBS Securities said both coupons will increase by 300 basis points if the instruments are not called, the news agency reported. Based in Shenzhen, Guangdong, People's Republic of China, Shenzhen Development Bank Company Ltd.'s -- http://www.sdb.com.cn/-- provides local and foreign currency deposits and loan services. Other activities include foreign currencies exchanging, foreign currency deposit and remittances, acts as an agent for issuing foreign currency value-bearing securities, management of letters of credit and operation of both an international and a domestic discounting service. The Troubled Company Reporter-Asia Pacific reported that Moody's Investors Service, on May 4, 2007, assigned a bank financial strength rating of E+. The long-term Foreign Currency Deposit Rating is Ba3. The short-term Foreign Currency Deposit Rating is NP. Moody's said the outlook for all ratings is positive. TAI SHING: Commences Liquidation Proceedings -------------------------------------------- Tai Shing Trading Company Limited's members agreed on March 12, 2008, to voluntarily liquidate the company's business. The company has appointed Yeung Chung Hung to facilitate the sale of its assets. The liquidator can be reached at: Yeung Chung Hung 105 Portland Street, Ground Floor Kowloon, Hong Kong UNICOMMU ADVERTISING: Commences Liquidation Proceedings ------------------------------------------------------- Unicommu Advertising Limited's members agreed on March 5, 2008, to voluntarily liquidate the company's business. The company has appointed Leung Chi Wing to facilitate the sale of its assets. The liquidator can be reached at: Leung Chi Wing Kiu Fu Commercial Building, Room B, 4th Floor 300 Lockhart Road Wan Chai, Hong Kong ========= I N D I A ========= AXIS BANK: Plans to Sell MYR1 Billion in Bonds ---------------------------------------------- Axis Bank is considering to raise MYR1 billion through bonds in 2008, Reuters reports citing people familiar with the development. According to the report, one of its sources said the first tranche of 500 million ringgit-denominated bonds is expected in the coming months, and the timing will depend on global market conditions. "We are talking with banks. The overall programme is for 1 billion ringgits of bonds," he said. Headquartered in Mumbai, India, Axis Bank Ltd, formerly known as UTI Bank Limited, -- http://www.axisbank.com/-- is engaged in treasury and other banking operations. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. Revenues of the treasury services segment primarily consist of fees and gains or losses from trading operations and interest income on the investment portfolio. Other banking operations principally comprise the lending activities (corporate and retail) of the bank. The corporate lending activity includes providing loans and transaction services to corporate and institutional customers. The retail lending activity includes raising of deposits from customers and providing loans and advisory services to customers through branch network and other delivery channels. The bank currently holds Moody's Investors Service's Ba2 rating that was placed on July 1, 2005. BHARTI AIRTEL: Won't Make Aggressive Tariff Cuts, Executive Says ---------------------------------------------------------------- A Bharti Airtel Ltd. joint managing director told Reuters in an interview last week that the company does not expect to make aggressive tariff cuts to keep its share in the market. There may be some tariff reduction to save on cost but Bharti Airtel won't make any aggressive cuts, the director reportedly said. The telecom industry may have become extremely competitive but Bharti Airtel managed a record number of customers. In a Feb. 13 filing with the Bombay Stock Exchange, the company disclosed that it has achieved the 60 million customer mark. Headquartered in New Delhi, India, -- Bharti Airtel Limited's -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services and Enterprise Services. * * * Fitch Ratings, on Nov. 19, 2007, affirmed Bharti Airtel Limited's Long-term foreign currency Issuer Default Rating at 'BB+'. Fitch said the outlook on the rating is stable. GMAC LLC: Michael Rossi Resigns as ResCap Chairman -------------------------------------------------- GMAC LLC said in a regulatory filing with the U.S. Securities and Exchange Commission Friday that Michael Rossi, chairman of Residential Capital LLC, has resigned for medical reasons effective March 17, 2008. No immediate replacement has been appointed. James Jones will continue to serve as ResCap chief executive officer. Mr. Rossi was chairman of ResCap since September 2007. In 1993, Mr. Rossi was named Bank of America's vice chairman and senior credit officer. He served as vice chairman until his retirement in 1997. Mr. Rossi later became an adviser for Cerberus Capital Management and a senior member of the firm's operations team. In 2004, he was named a director of Japan-based Aozora Bank. In early 2005, Mr. Rossi was appointed chairman and chief executive officer at Aozora Bank and held that post until February 2007. About Residential Capital Headquartered in Minneapolis, Minnesota, Residential Capital LLC -- http://www.rescapholdings.com/-- is the home mortgage unit of GMAC Financial Services, which is in turn wholly owned by GMAC LLC. As reported in the Troubled Company Reporter on March 5, 2008, Fitch Ratings downgraded Residential Capital LLC's long-term Issuer Default Rating to 'BB-' from 'BB+'. In addition, the ratings remain on Rating Watch Negative by Fitch. About GMAC LLC 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 currently employs about 31,000 people worldwide. At Dec. 31, 2006, GMAC held more than US$287 billion in assets and earned net income for 2006 of US$2.1 billion on net revenue of US$18.2 billion. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. As reported in the Troubled Company Reporter on March 5, 2008, Fitch Ratings downgraded and removed from Rating Watch Negative the long-term Issuer Default Rating of GMAC LLC and related subsidiaries to 'BB' from 'BB+'. Fitch also affirmed the 'B' short-term ratings. Fitch originally placed GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating Outlook is Negative. QUEBECOR WORLD: Seeks Nod to Pay Prepetition Wages to Managers -------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to pay 376 managers prepetition payments due under certain incentive plans for the second half of 2007, which will become due and owing on March 31, 2008. According to Michael Canning, Esq. at Arnold & Porter LLP, in New York, the Debtors maintain two annual incentive plans for its management employees: the Management Incentive Compensation Plan and the Plant Based Incentive Plan. Mr. Canning notes that these Incentive Plans are integral components of how the Debtors reward and encourage their important managerial employees. Approximately 238 employees are participants in the MICP, and 348 employees are participants in the PBIP. Of these employees, approximately 376 are owed or will be owed prepetition incentive payments. Mr. Canning says that of the 376 employees, 135 are owed under MICP and 241 under PBIP. Mr. Canning adds that 80% of these employees have earned less than US$150,000 in 2007. The total amount of incentive compensation due prepetition to the approximately 135 employees under the MICP is US$2,627,776, which, on average, represents an average incentive bonus of approximately US$20,000 per employee. Mr. Canning says that the amount of an employee's incentive bonus is based on the satisfaction of one or more performance criteria. In any given year, this criteria may include these targets: (1) Earnings Before Interests and Taxes (2) Return on Capital Employed (3) Return on Average Shareholder Equity (4) Cost of Capital (5) Earnings per Share The total amount of incentive compensation due prepetition to approximately 241 individuals under the PBIP is US$1,949,760, which, on average, represents an average incentive bonus of approximately US$8,000 per employee. According to Mr. Canning, the PBIP program is based on performance indicators that allow for the assessment of managers by using objectives set for the managers at the beginning of each year. These performance indicators address five main areas: (1) Capacity (2) Productivity (3) Quality (4) Health and Safety (5) Earnings Before Interests and Taxes (EBIT) The incentive bonus payable for each employee varies since it is expressed under the PBIP as a percentage of base salary earned by the employee and is determined based on performance measured against certain pre-established criteria. Mr. Canning believes that the failure to grant the Debtors' request with regard to these incentive payments, even for a brief period of time, could have a material adverse impact on the Debtors' businesses operations and their reorganization efforts, and would run afoul of the rehabilitative nature of the Bankruptcy Code. 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. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 9; 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. TATA MOTORS: Fiat JV Increases India Investment by INR2,341 Cr. --------------------------------------------------------------- Fiat India Automobiles, the 50:50 joint venture between Tata Motors Ltd. and Fiat Group Automobiles, has entered into a memorandum of understanding with the Maharashtra government for an additional investment of INR2,341 crore as part of the JV's plan to expand capacity, The Economic Times reports. This makes the investment of Fiat India aggregate INR4,020 crore, ET notes. According to the report, the Tata Motors-Fiat JV plans to expand production capacity of its Ranjangaon facility in Pune. As reported by the Troubled Company Reporter-Asia Pacific on Oct. 21, 2007, Fiat Group and Tata Motors signed a definitive agreement for the establishment of the industrial joint venture to manufacture passenger cars, engines and transmissions for the Indian and overseas markets. The JV will manufacture Fiat's premium cars, Grande Punto and Linea (respectively in the B and C segments), its successful 1.3 litre Multijet diesel engine, its 1.2 and 1.4 litre Fire gasoline engine and matching transmissions. The JV will also manufacture one of Tata's next generation vehicles. ET, citing CEO Rajeev Kapoor, says the additional INR2,341 crore investment will be a boost to the JV's launching of Grande Punto and Linea, which will roll out from the Ranjangaon facility later this year. By 2012, the plant's annual capacity would be expanded to: two lakh cars, three lakh diesel engines, and three lakh spare parts and accessories, Mr. Kapoor told ET. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. TATA POWER: Competes for 1,320-MW Punjab Thermal Power Project -------------------------------------------------------------- Tata Power Company Ltd. is among those in the race for the 1,320-MW Rajpura Thermal Power Project in Punjab, The Hindu reports. According to the report, the company has submitted a Request for Qualification for the Punjab project, which project will involve an investment of INR5,000-6,000 crore. Other companies vying for the project reportedly include Reliance Power Limited, Sterlite Industries, Larsen & Toubro, Essar, Lanco Infratech, Bhilwara Energy, Indiabulls Power Projects, consortium of JSW and IDFC, and a consortium of Union Fenosa International, Isolux Corse and Emco Ltd. The Hindu, citing unnamed sources, said the eligible bidders will be named next month after the technical evaluation As reported by the Troubled Company Reporter-Asia Pacific on March 18, 2008, Tata Power also bid for a hydropower project in Thailand. Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. S&P said the outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds has been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's downgraded its senior unsecured bond rating to B1 from Ba2. Moody's said the ratings outlook is negative. TATA TELESERVICES: Brings In Two Directors to Board --------------------------------------------------- Tata Teleservices Maharashtra Ltd. has appointed two new directors: 1. Anil Sardana as Non-Executive Director, and 2. Nadir Godrej as an Independent Director. The appointments took effect on March 12, 2008. A subsidiary of Tata Sons Limited, Tata Teleservices (Maharashtra) Limited, is an Indian company engaged in the business of providing telecommunication services. The company provides services in about 357 towns and cities in the States of Maharashtra and Goa through its telephone exchanges. The company has incurred at least two years of consecutive net losses -- INR3.15 billion in fiscal year ended Mar. 31, 2007, and INR5.41 billion in FY2006. ================= I N D O N E S I A ================= ADAM AIR: Air Transport Ministry Suspends Operations ---------------------------------------------------- The Department of Transportation canceled Adam Air's airline operations starting March 19 due to failure to comply with the agency's safety standards, various reports say. According to Tempo Interactive, the decision came after the transport ministry conducted its quarterly safety aspects audit. Director General of Air Transportation Budhi Mulyawan Suyitno said the audit concluded that Adam Air had made several violations in its operations that could endanger flight safety, Tempo reports. Adam Air's violations related to aspects of plane operation and maintenance, as well as human resources training, Tempo notes. The airline, Antara News relates, would be grounded until it passes it scheduled evaluation three months from now. The airline's air operator certificate, a separate safety certification, will also be permanently removed if no improvements were found, that could result to an ultimate closure, Antara reports. Adam Air was involved in a string of serious safety incidents since its launch in 2003, Antara recounts. The Ministry's decision also came after the airline's latest safety incident, wherein an Adam Air Boeing 737-400 with 175 people on board skid off the runway in foul weather in Batam, Antara relates. The accident also prompted a private consortium led by PT Bhakti Investama to unload its 50% stake in the airline, citing dissatisfaction with its safety performance, leading the cash- strapped airline to cut the number of flights it was operating down to a fraction of usual, Antara says. Antara adds that Adam Air President Adam Aditya Suherman said it will all depend on the shareholders, as to the airline's plans to improve its safety standards in the next three months to head off closure. About Adam Air Adam Air, (incorporated as PT. Adam SkyConnection Airlines), -- http://www.adamair.co.id/-- is a privately owned airline based in Jakarta, Indonesia. It operates scheduled domestic services to over 20 cities and international services to Penang and Singapore. Its main base is Soekarno-Hatta International Airport, Jakarta. Although sometimes referred to as a low-cost carrier, it markets itself as an airline, which straddles between low-cost and traditional carriers by offering on-board service with meals, but at competitive prices, similar to the model adopted by Singapore-based Valuair. Prior to the crash of flight 574, it was the fastest growing low-cost carrier in Indonesia. As reported by the Troubled Company Reporter - Asia Pacific on March 19, 2008, Adam Air may face temporary closure after a leasing firm seized more than half its fleet when the airline defaulted on payments. Transportation Minister Jusman Djamal said that that if the airline cannot meet its financial obligations, "its operating license will be revoked." CA INC: Ample Cash Flow Prompts S&P's Positive CreditWatch ---------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit and senior unsecured debt ratings on Islandia, New York- based CA Inc. on CreditWatch with positive implications. The CreditWatch listing reflects the company's prospects for sustained profitability and cash flow and capacity to fund moderate-size share repurchases and acquisitions. Free cash flow in fiscal 2007 totaled about US$800 million, and S&P expects it could increase to the US$1 billion area over time as improvements in CA's expense structure are realized. As of Dec. 31, 2007, cash and securities totaled about US$2 billion, and funded debt amounted to about US$2.6 billion. Additionally, the company had US$250 million available under its US$1 billion revolving credit facility expiring in August 2012. The CreditWatch placement also incorporates the dismissal of all pending charges against the company by the U.S. Attorney's Office for the Eastern District of New York and CA's fulfillment of the terms of its deferred prosecution agreement. CA also has remedied all prior outstanding accounting issues and material weaknesses. "We will meet with management to review CA's strategic direction and financial policy before resolving the CreditWatch," said Standard & Poor's credit analyst Phil Schrank. "Any upgrade likely will be limited to one notch because we expect that CA will still use its balance sheet strength to support acquisitions and share repurchases." Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 19, 2007, Fitch Ratings affirmed these ratings of CA, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured revolving credit facility at 'BB+'; -- Senior unsecured debt at 'BB+'. Additionally, Fitch revised the Rating Outlook on CA Inc. to Stable from Negative. Fitch's actions affect approximately US$2.8 billion of total debt, including the company's US$1.0 billion revolving credit facility. GOODYEAR: S&P Lifts Rating on Class A-1 and A-2 Certs. to BB- ------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on the class A-1 and A-2 certificates from the $46 million Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34 Trust to 'BB-' from 'B'. The upgrades reflect the March 19, 2008, raising of the rating on the 7% notes due March 15, 2028, issued by Goodyear Tire & Rubber Co. to 'BB-' from 'B'. Corporate Backed Trust Certificates Goodyear Tire & Rubber Note- Backed Series 2001-34 Trust is a pass-through transaction, the ratings on which are based solely on the rating assigned to the underlying collateral, Goodyear Tire & Rubber Co.'s 7% notes due March 15, 2028 ('BB-'). About The Goodyear Tire & Rubber Company Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world, including Indonesia, Australia, China, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,and Thailand. Goodyear employs more than 80,000 people worldwide. SEMEN GRESIK: Q4 Profit Jumps 87% to IDR503.5 Billion ----------------------------------------------------- PT Semen Gresik Tbk's fourth-quarter net profit increased 87% to IDR503.5 billion from IDR268.7 billion on building boom and more efficient operations, Reuters reports. "Our sales this year will be largely in line with the overall industry, hopefully we can reach 7% sales growth assuming (more) infrastructure projects will kick off and consumer purchasing power increases," Company President Director Dwi Soetjipto was quoted by Reuters as saying. According to the report, the company's revenues climbed 11.8% in the quarter to IDR2.51 trillion, as its sales volume for the period climbed 35% to 3.9 million tonnes, outpacing a 6.1% rise in national consumption. Analysts polled by Reuters Estimates forecast that the company's revenues will increase around 12% to IDR10.8 trillion in 2008. Harry Suhartono and Nury Sybli of Reuters write that the company plans to construct new factories and power plants to boost annual capacity by 5 million tonnes, to meet anticipated higher demand for cement. The investment is expected to total up to US$1.5 billion. Moreover, Gresik plans to seek alternative fuel sources to cushion the impact of higher oil prices, including by securing a long-terms coal supply contract for 70% of its total consumption, Reuters says. The report adds that the company aims to boost its capacity by 40% to 22.9 million tonnes by 2013. About Semen Gresik PT Semen Gresik Tbk is the largest cement player in Indonesia with a 46% market share. It has a total production capacity of 16.9 mtpa with facilities located in Tuban, Padang and Tonasa. As of June 2007, SGG was 51% owned by the government and 24.9% by the Rajawali Group, with the remaining shares publicly held. The Troubled Company Reporter-Asia Pacific reported on Oct. 2, 2007, that Moody's Investors Service assigned a Ba2 local currency corporate family rating to PT Semen Gresik (Persero) Tbk. At the same time, Moody's assigned the company a national scale rating of Aa2.id. The outlook for both ratings is stable. TUPPERWARE: To Hold First Quarter Conference Call on April 23 ------------------------------------------------------------- Tupperware Brands Corporation will hold its quarterly conference call to discuss First Quarter 2008 Earnings on Wednesday, April 23, 2008 at 9:30 a.m. Eastern Time. This call is being webcast by Thomson/CCBN and can be accessed at: http://www.tupperwarebrands.com/ To participate in the call, please dial 719-325- 4927, Code: 7924184 The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com-- Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents -- http://www.streetevents.com/ Headquartered in Orlando, Florida, Tupperware Brands Corporation (NYSE: TUP)-- http://www.tupperware.com/-- is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.0 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for consumers through the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company has operations in Indonesia, Argentina, Australia, Bahamas, Brazil, China, France, Germany, Philippines, Spain, and Sweden, among others. ========= J A P A N ========= AMR CORP: S&P Revises Outlook to Negative on Expected Loss ---------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the long-term ratings on AMR Corp. (B/Negative/B-3) and subsidiary American Airlines Inc. (B/Negative/--) to negative from positive. S&P also lowered its short-term rating on AMR to 'B-3' from 'B-2' and affirmed all other ratings on AMR and American. "The outlook revision and short-term rating downgrade are based on the expected impact of much higher jet fuel prices and a weakening U.S. economy, which we believe will cause AMR to report a loss this year," said Standard & Poor's credit analyst Philip Baggaley. "AMR's earnings, cash flow, and credit protection measures are likely to be materially lower in 2008 than last year, though the company continues to have adequate liquidity and projects $4.4 billion of unrestricted cash and short-term investments at March 31, 2008," the credit analyst continued. Ratings on Fort Worth, Texas-based AMR and subsidiary American Airlines reflect participation in the competitive, cyclical, and capital-intensive airline industry; a heavy debt and pension burden; and substantial capital spending needs to modernize the airline's fleet. Satisfactory liquidity, with $4.5 billion of unrestricted cash and short-term investments at Dec. 31, 2007, and substantial market positions in the U.S. domestic, trans- Atlantic, and Latin American markets (though a minimal presence in the Pacific) are positives. American, like other large U.S. airlines, reported much improved earnings in 2006 and 2007, benefiting from cost-cutting and a more favorable balance of supply and demand, particularly on international routes. Fully adjusted EBITDA interest coverage improved to 2.0x and funds flow to debt to 11%, compared with 1.8x and 8% in 2006. However, the recent surge in fuel prices and rapidly weakening U.S. economy (which Standard & Poor's economists believe is already in a recession) are likely to result in materially worse results in 2008. If crude oil averages about $97 per barrel, as S&P currently forecasts, and further fare increases become progressively more difficult to achieve because of the weak economy, AMR could lose more than $1 billion this year. AMR currently has adequate liquidity, with unrestricted cash and short-term investments of $4.5 billion (none of which is invested in auction-rate securities) at Dec. 31, 2007, and $4.4 billion forecast (by the company) for March 31, 2008. American has access to an undrawn $255 million revolving credit that matures June 17, 2009, part of a credit facility that includes also a $440 million term loan due June 17, 2010. Key financial covenants under that facility include a quarterly cash flow coverage test (AMR consolidated EBITDAR divided by interest and rentals, on a 12-month rolling basis), of 1.4 to 1, stepping up to 1.5 to 1 in the second quarter of 2009. S&P estimates that a pretax loss that exceeds about $450 million to $500 million would trip the coverage covenant. Accordingly, if high fuel prices persist, the company may seek to amend or obtain a waiver of that covenant. Alternatively, American could borrow against unencumbered aircraft or use cash to pay down the remaining $440 million term loan. Very high fuel prices and a weak economy could cause material losses and a potential covenant problem this year. S&P could lower ratings if it appears that a deep or prolonged downturn will erode liquidity or the company's financial profile. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. - - http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia, including Belgium, Brazil, Japan, among others. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. BANK OF IKEDA: Business Integration With Senshu to Start in 2009 ---------------------------------------------------------------- Bank of Ikeda Ltd. and Senshu Bank Ltd. made official their plans for business integration by spring 2009, Reuters Key Development reports. In a separate report, Reuters relates that Bank of Ikeda and Senshu Bank hopes to better deal with intensifying competition in the Kansai region of western Japan. Senshu Bank is a unit of Tokyo-Mitsubish UFJ, Ltd. Headquartered in Osaka, The Bank of Ikeda, Ltd. -- http://www.ikedabank.co.jp/-- operates in four main business segments. The Banking segment provides banking, loan, stock investment and currency exchange services through a network of the leasing of industrial machinery, construction machinery, 66 branches and five offices. The Leasing segment is engaged in computers and office equipments, among others. The Credit Guarantee segment provides credit guarantee services for housing loans. The Card segment is engaged in the credit card-related business. Other businesses include venture capital business, investment consulting business, the development and sale of computer software, as well as the provision of information services. The Bank of Ikeda has 11 subsidiaries and one associated company. On March 5, 2008, the Troubled Company Reporter-Asia Pacific reported that Fitch Ratings assigned a BB+ rating on the Bank of Ikeda's subordinated notes: -- JPY15,000,000,000, due Feb. 23, 2015 -- JPY15,000,000,000, due Sept. 29, 2016 -- JPY5,000,000,000, due March 17, 2017 GOODWILL GROUP: United Technology Acquires 30% Stake ---------------------------------------------------- United Technology Holdings Co. has bought 30% of Goodwill Group Inc. for US$120 million, setting the stage for a potential battle with U.S. fund Cerberus Partners LP and Morgan Stanley for control of the firm, Taiga Uranaka writes for Reuters. Takahiko Hyuga of Bloomberg News reports that Cerberus and Morgan Stanley will buy loans to Goodwill from Mizuho Financial Group Inc. On March 12, 2008, Troubled Company Reporter Asia-Pacific reported that Mizuho, the main bank of Goodwill, will sell about JPY100 billion worth of loans to both U.S. firms potentially becoming the top shareholders in the company. Bloomberg relates that Cerberus and Morgan Stanley will convert JPY15.5 billion of loans to preferred shares and will also buy JPY4.5 billion of new shares that Goodwill will issue. In a report by Jiji Press, Goodwill asked United Technology, through a letter, not to buy additional shares without consent as it will cause trouble because Goodwill is in the midst of reconstruction with support from Cerberus and Morgan Stanley. United Technology, relates Reuters, admits it had not contacted Goodwill, Cerberus, and Morgan Stanley before buying the shares on the open market. "We are a small company and not famous. We had doubts that our proposals would ever make it to the table unless we showed a big commitment," Reuters quoted United Technology spokesman Kuninori Akita as saying. Jiji Press relates that a spokesman for United Technology said that it has no plans to buy additional shares without consent as the company does not intend to cause trouble. United Technology, Jiji Press says, will present its tie-up proposals to Goodwill Group's management and capital partners. About Goodwill Group Japan-based The Goodwill Group, Inc. -- http://www.goodwill.com/gwg/english/index.html -- is a involved in five business segments. The Staffing segment offers recruitment services for technicians, senior workers and others. The Human Resources-related segment provides employee-hiring support services to corporate clients, counseling services to workers and outplacement services to retired and retiring workers. The Nursing-care and Medical Support segment is engaged in the provision of home-care services, care services in facilities and dental examination services at home, as well as the sale of nursing-care goods and equipment, among others. The Senior Residence and Restaurant segment operates nursing home under the name THE BARRINGTON HOUSE, and also operates restaurant in both domestic and overseas markets. The Others segment is engaged in the planning, designing and management of pet care facilities, the operation of pet care shops, the operation and management of nurseries, the provision of baby- sitting services and others. The Troubled Company Reporter-Asia Pacific reported on June 14, 2007, that The Goodwill Group is thinking of selling its home nursing-care services division after the Japanese government banned it from renewing its licenses due to its involvement in a fraud scandal. The article conveys that the firm allegedly obtained some of the licenses for nursing-care service operators certified under a public insurance program through fraudulent applications, including those with an inflated number of employees. JAPAN AIRLINES: Mitsubishi Corp. Buys 60 Mln. Preferred Shares -------------------------------------------------------------- Mitsubishi Corp. purchased 60 million preferred shares, worth about JPY15 billion, issued by Japan Airlines International Co., Ltd. from UBS Securities Japan Ltd., Thomson Financial reports. According to Thomson Financial, Mitsubishi seeks to explore the possibility of entering new business areas by capitalizing on a strengthening partnership with JAL. JAL issued the shares as part of its recapitalization efforts. Last month, the company said it would raise about JPY150 billion in fresh capital by selling new shares. The Troubled Company Reporter-Asia Pacific reported on March 5, 2008, that the JPY150 billion will be used for the upgrade of JAL's planes. 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 issuer 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. 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. JAPAN AIRLINES: Expands Code Share With China Eastern Airlines -------------------------------------------------------------- Starting March 30, 2006, Japan Airlines International Co., Ltd. will start code sharing on 6 additional routes operated by China Eastern Airlines between China and Japan. The new code share agreement will enable JAL to place its "JL" designator on China Eastern Airlines' flights operating between Shanghai - Kagoshima, Shanghai - Matsuyama, Shanghai- Niigata, Shanghai - Okinawa (Naha) Qingdao - Fukuoka, and Qingdao - Nagoya (Chubu). With this code share expansion, JAL's Japan-China network will serve 13 cities in China on 36 routes with a total of 318 flights per week. Of these flights JAL operates some 180 flights per week to 10 airports in China. From the point of customer convenience, JAL is expanding flight frequency between Japan and the high growth market of China and offers the largest network between the two countries. JAL and China Eastern have been code share partners since September 2002. The new agreement increases to 15 the number of routes on which the airlines code share. Furthermore, JAL inaugurated a reciprocal frequent flyer program agreement with China Eastern Airlines, on February 1, 2008. Members of JAL's frequent flyer program, JAL Mileage Bank, can now accumulate mileage when traveling on China Eastern Airlines flights and redeem award tickets on China Eastern Airlines flights. For more details on the new code share routes, you can visit JAL's Web site: http://press.jal.co.jp/en/release/200803/000885.html 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 issuer 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. 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. PRIMUS FINANCIAL: Fitch Puts 'B' Rating Under Positive Watch ------------------------------------------------------------ Fitch Ratings placed the Long-term and Short-term Issuer Default Ratings of PRIMUS Financial Services, both at 'B', on Rating Watch Positive, following the announcement by Sumitomo Mitsui Banking Corporation on its plans to acquire a major stake in PRIMUS in March 2008 SMBC (Long-term IDR 'A+'/Stable; Short-term IDR 'F1') plans to acquire a 41% interest in PRIMUS, which is currently a subsidiary of Ford Motor Credit Company LLC (Ford Motor Credit, Long-term IDR 'B'/Negative; Short-term IDR 'B') via Ford Credit International Inc. Ford Motor Credit is in turn 100%-owned by Ford Motor Company (Ford Motor, Long-term IDR 'B'/Negative). Fitch will resolve the Rating Watch after reviewing the new organisation and financial prospects of PRIMUS, as well as SMBC's commitment to the company. Upon approval from Japan's Financial Services Agency, SMBC will acquire the 41% stake and consolidate PRIMUS from 1 April 2008. An additional 15% is planned to be acquired by a SMBC affiliate, Central Finance Co. A further 40% of PRIMUS, which provides loans to sales agents as well as purchasers of cars made by Mazda and Ford group, will be acquired by Mazda, currently 33%- owned by Ford Motor; FCI will keep the remaining stake (4%) in PRIMUS. Fitch notes that the change in ownership will not affect PRIMUS's business lines. This is a strategic acquisition by SMBC to further add to the banking group's franchise in the non-bank consumer finance business. The group acquired a 25% stake in Central Finance in 2007, with which the bank plans to merge its other non-bank finance affiliates -- OMC Card (purchased in 2007) and Quoq -- in 2009. Adding PRIMUS, SMBC will have the largest market share in auto loans in Japan. Separately, the bank has a consumer finance affiliate, Promise Co., Ltd, which in 2007 acquired another consumer finance company, Sanyo Shinpan Finance Co., Ltd, and became the largest consumer finance company in Japan in terms of assets. XERIUM TECHNOLOGIES: Moody's Cuts Ratings on High Default Risk -------------------------------------------------------------- Moody's Investors Service downgraded Xerium Technologies, Inc.'s ratings due to the company's recent announcement that it expects to be non-compliant with its financial covenants in the first quarter of 2008 and future periods, without an amendment to its credit facility. Moody's specifically downgraded the company's corporate family rating to Caa1 from B2, its senior secured credit facilities to Caa1 from B2, its probability of default rating to Caa2 from B2, and its speculative grade liquidity rating to SGL-4 from SGL-3. The rating outlook is negative. The rating action reflects the heightened risk of a default under the company's credit agreement and the possibility of a bankruptcy filing if management is unsuccessful in obtaining financial covenant amendments from its lenders. The company is also in discussions with potential investors to raise equity securities that would be used to pay down debt. In addition, the company is in the process of assessing a potential impairment to its goodwill related to its roll covers business but may not be able to complete its analysis before the filing deadline for its Form 10-K. Moody's believes that the delayed filing of its Form 10-K may trigger a default under its credit agreement if the annual report is not filed by April 1, 2008. These matters create a high level of uncertainty surrounding Xerium's liquidity and the potential for triggering an event of default and, therefore, Moody's lowered the company's Probability of Default rating to Caa2, indicating an estimated 30% probability of default over a one-year time horizon. Xerium's corporate family rating and its senior secured debt ratings were lowered to Caa1 based on Moody's belief that creditors' recovery, in the event of default, would be relatively high. Moody's last rating occurred on Feb. 8, 2007, when Moody's downgraded the long-term debt and corporate family ratings of Xerium to B2 from B1 and maintained a stable outlook. Moody's continues to believe that Xerium's operating performance will remain weak. Xerium's customers continue to struggle operationally due to a slowdown in global paper production and significant overcapacity, especially in newsprint and fine paper. Moody's believes that this trend will continue with the closure of additional mills and further downtime at existing facilities in North America and Europe, Xerium's primary markets. Moody's also anticipates that previous volume losses will take longer than expected to recover and that recent investments in developing economies will take several years before they have a meaningful positive impact on cash flow. Downgrades: Issuer: Xerium Technologies, Inc. -- Corporate Family Rating, Downgraded to Caa1 from B2 -- Senior Secured Term Loan, Downgraded to Caa1 from B2 (LGD3, 33%) -- Senior Secured Revolving Credit Facility, Downgraded to Caa1 from B2 (LGD3, 33%) -- Probability of Default Rating, Downgraded to Caa2 from B2 -- Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3 Outlook Actions: Issuer: Xerium Technologies, Inc. -- Outlook, Changed To Negative from Stable Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. XM SATELLITE: Merger w/ Sirius is Not Anti-Competitive, DOJ Says ---------------------------------------------------------------- The U.S. Department of Justice has informed SIRIUS Satellite Radio Inc. and XM Satellite Radio Holdings Inc. that it has ended its investigation into the pending merger of SIRIUS and XM without taking action to block the transaction. This decision means the DOJ has concluded that the merger is not anti- competitive and it will allow the transaction to proceed. SIRIUS and XM each obtained stockholder approval for the deal in November 2007. The pending merger is still subject to approval of the Federal Communications Commission. About SIRIUS Satellite Based in New York, SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) -- http://www.sirius.com/ -- provides sports radio programming, broadcasting play-by-play action of more than 350 pro and college teams. SIRIUS features news, talk and play-by-play action from the NFL, NASCAR, NBA, NHL, Barclays English Premier League soccer, UEFA Champions League, the Wimbledon Championships and more than 125 colleges, plus live coverage of several of the year's top thoroughbred horse races. SIRIUS also features programming from ESPN Radio and ESPNews. About XM Headquartered in Washington, D.C., XM Satellite Radio Inc. (Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned subsidiary of XM Satellite Radio Holdings Inc. XM has been publicly traded on the NASDAQ exchange since Oct. 5, 1999. XM's 2006 lineup includes more than 170 digital channels of choice from coast to coast: the most commercial-free music channels, plus premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information. XM has broadcast facilities in New York and Nashville, and additional offices in Boca Raton, Florida; Southfield, Michigan; and Yokohama, Japan. * * * As reported in the Troubled Company Reporter on March 6, 2008, Standard & Poor's Ratings Services revised the CreditWatch implications of the ratings on XM Satellite Radio Holdings Inc. and XM Satellite Radio Inc. (CCC+/Watch Developing/--) to developing from positive. S&P initially placed the ratings on CreditWatch, with positive implications, on Feb. 20, 2007, based on the company's definitive agreement to an all-stock "merger of equals" with Sirius Satellite Radio Inc. (CCC+/Watch Developing/--). ========= K O R E A ========= CHONGKUNDANG CORP: Wins Drug Patent on March 12 ----------------------------------------------- Chongkundang Corp. has been awarded a patent on March 12, 2008, covering pharmaceutical compositions containing bisphosphonate for improving oral absorption, Reuters Investing Keys reports. Chongkundang Pharmaceutical Corporation -- http://www.ckdpharm.com/-- manufactures and distributes pharmaceutical products. The company produces medical drugs in the fields of systemic anti-infective, cardiovascular system, alimentary tract, metabolism, and sensory organs. Chongkundang Pharmaceutical also constructs apartments and factories. Korea Investors Service gave Chong Kun Dang's senior unsecured debt a BB+ rating, while its commercial paper merited a B rating. DAEHAN PULP: Yuhan-Kimberly Corporation Drops Patent Lawsuit ------------------------------------------------------------ Yuhan-Kimberly Corporation has dropped a lawsuit against Daehan Pulp Co., Ltd., and agreed to accept the first court judgment, Reuters Investing Keys reports. Yuhan-Kimberly Corporation, the report recounts, appealed to Seoul High Court against the first judgment for the patent infringement lawsuit filed against the Company, on November 21, 2005. Based in Seoul, South Korea, Daehan Pulp Co., Ltd. -- http://www.dhpulp.co.kr/-- specializes in the provision of paper products. The company categorizes its products under industrial and hygienic paper. Its industrial paper includes manila paperboard used in commercial packaging; ivory paperboard for tissue paper production; royal ivory used for tissue paper production; cup liner used in the production of paper cups; carrier boards used to make cardboard carriers for beverages and frozen food, and kraft boards used in the production of book covers and laminated paper. Its hygienic paper includes toilet paper, paper towels, facial tissues, wet wipes, sanitary napkins and baby and adult diapers. The company's convertible bonds wi