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, April 2, 2008, Vol. 11, No. 65 Headlines A U S T R A L I A C.M.V. MANAGEMENT: Members to Hear Wind-Up Report on April 21 IMM INTERNATIONAL: Members to Receive Wind-Up Report on April 11 LEETON GOLF: Placed Under Voluntary Liquidation MARETT DESIGN: Commences Liquidation Proceedings MUSWELLBROOK EQUIPMENT: Members' Final Meeting Is Today NICHOLSON REALTY: Members and Creditors to Meet on April 14 OPES PRIME: Corporate Watchdog Investigates Irregularities OPES PRIME: Reco Financial Withdraws Acquisition Deal OZ WRAP (INTERNATIONAL): Commences Liquidation Proceedings PERSONAL INVESTMENT: Final Meeting Set for April 11 SAMSON HYDRAULICS: Members Opt to Liquidate Business ST. GEORGE: Fitch Gives BB Final Rating to AUD1.7M Class D Bonds TIMEJOY PTY: Liquidator to Give Wind-Up Report on April 11 TOUKLEY FURNISHINGS: Undergoes Liquidation Proceedings C H I N A & H O N G K O N G & T A I W A N BALLY TOTAL: Commences Cash Distribution to Former Stockholders BANK OF CHINA: Hired by Country Garden for US$200-Mln Loan BANK OF CHINA: Inks Deal With Deutsche Lufthansa for Two Airbus CENTRAL CHINA: Commences Liquidation Proceedings CENTRAL CHINA I.T.: Commences Liquidation Proceedings CHAINSTOREONLINE.NET: Commences Liquidation Proceedings CHEERWAY INVESTMENT: Commences Liquidation Proceedings CHINA EASTERN: Launches Regional Joint Venture With AVIC 1 CHINA SOUTHERN: Launches New Flight Service to Iran CITIBRIGHT PROPERTIES: Commences Liquidation Proceedings EXCEL TALENT: Commences Liquidation Proceedings HKS MACAU: Creditors' Proofs of Debt Due on April 22 HONOR UNITY: Commences Liquidation Proceedings KAMLEY TRADING: Commences Liquidation Proceedings MANSFIELD LIMITED: Commences Liquidation Proceedings * HONG KONG: Fitch Comments on Non-Life Insurance Sector I N D I A AES CORP: Andres Gluski Buys 6,200 Shares for US16.30 Each ESSAR OIL: Issues and Allots 34,227,018 Shares GENERAL MOTORS: Delphi Wants Indemnification Pact Extended GUJARAT SPICES: Weak Risk Profile Cues CRISIL's BB+ Ratings KHATIMA FIBRES: CRISIL Gives BB Ratings to Bank Facilities MP CHINI: Bank Facilities Get CRISIL's BB & P4 Ratings PHOENIX SOLAR: CRISIL Assigns BB+ Rating to INR2 Bil. Term Loan QUEBECOR WORLD: Court OKs Prepetition Payments to 376 Managers QUEBECOR WORLD: Silvex Seeks Recovery from Insurance Claims QUEBECOR WORLD: Wants to Employ Three Real Estate Consultants VIMAL OIL: Low Profit Margins Cue CRISIL's BB+ Ratings I N D O N E S I A BANK NEGARA: Posts IDR657.8 Bil. Net Loss in Fourth-Quarter 2007 BANK PANIN: To Sell IDR1.5 Trillion Bonds This Month BANK PANIN: 2007 Net Profit Up 30.7% to IDR954.91 Billion BERLIAN LAJU: S&P Lowers Corporate Credit Ratings to 'B' GARUDA INDONESIA: Government Wants to Sell 40% Stake J A P A N ALITALIA SPA: Air France Refuses to Trim Planned Job Cuts AOZORA BANK: Fitch Affirms 'BB+' Support Rating Floor DELPHI: Can Continue Implementing Employee Compensation Plan DELPHI CORP: Wants to Extend Indemnification Agreement With GM ELPIDA MEMORY: To Increase Chip Prices by 20% Starting April SHINSEI BANK: Fitch Maintains BB+ Support Rating Floor XM SATELLITE: State Counsels Balk at DOJ Approval on Sirius Deal K O R E A GENEXEL-SEIN: To Issue 10 Million Shares of Common Stock KAFCO C&I: To Issue Fourth Convertible Bonds M A L A Y S I A MALAYSIAN AIRLINE: To Purchase 55 Narrow-Body Planes From Boeing PAN MALAYSIAN: Appoints Sankar & Yan as Liquidators for Units TECHVENTURE BERHAD: Moves to Another Location N E W Z E A L A N D ABC LTD.: Subject to CIR's Wind-Up Petition ADVANCE INTERIORS: Wind-Up Petition Hearing Set for April 7 ARGENT NETWORKS: Commences Liquidation Proceedings ARTISAN DEVELOPMENTS: Commences Liquidation Proceedings CLEAR CHANNEL: Banks Want NY State Court to Dismiss Lawsuit GLOBAL STRATEGY: Requires Creditors to File Claims by April 21 INTERNATIONAL ENVIRONMENTAL: Faces Emerson's Wind-Up Petition NELSON BUILDING: Fitch Assigns BB Long-Term IDR Rating PRITAM HOLDINGS: Taps Van Delden & Whittfield as Liquidators S M SURFBOARDS LTD: Appoints H. Levin & D. Vance as Liquidators TAG LEASES: Undergoes Liquidation Proceedings TINDERBOX ADVERTISING: Fixes April 11 as Last Day to File Claims P H I L I P P I N E S FEDDERS CORP: Michael Giordano Steps Down as President and CEO S I N G A P O R E HOLA DEVELOPMENT: Pays Dividend to Creditors KNOWLEDGE DIRECTOR: Court Hears Wind-Up Petition S. H. A. HOLDINGS: Requires Creditors to File Claims by April 21 SCOTTISH: S&P Says Notice of Late Filing Won't Affect Ratings T H A I L A N D FEDERAL-MOGUL: Hires Jeff Kaminski as New CFO FEDERAL-MOGUL: Professionals Seek Postpetition Fees and Expenses * THAILAND: Banks Face Another Tough Year in 2008, Fitch Says * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= C.M.V. MANAGEMENT: Members to Hear Wind-Up Report on April 21 ------------------------------------------------------------- Kerry James Hall, C.M.V. Management Pty. Limited's estate liquidator, will meet with the company's members on April 21, 2008, at 10:15 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Kerry James Hall 39 East Esplanade, Suite 505, Level 5 Manly, New South Wales, 2095 Australia About C.M.V. Management C.M.V. Management Pty. Limited provides business services. The company is located at Walcha, in New South Wales, Australia. IMM INTERNATIONAL: Members to Receive Wind-Up Report on April 11 ---------------------------------------------------------------- Ian D. Kellaway, IMM International Media Marketing Pty. Ltd.'s estate liquidator, will meet with the company's members on April 11, 2008, at 10:30 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Ian D. Kellaway Minett & Partners Services Pty. Limited PO Box A173 Sydney, New South Wales 1235 Australia About IMM International IMM International Media Marketing Pty. Ltd. is a distributor of books, periodicals and newspapers. The company is located at Banksmeadow, in New South Wales, Australia. LEETON GOLF: Placed Under Voluntary Liquidation ----------------------------------------------- Leeton Golf Club Ltd.'s members agreed on January 17, 2008, to voluntarily liquidate the company's business. The company has appointed Stephen Jay to facilitate the sale of its assets. The liquidator can be reached at: Stephen Jay Wollundry Chambers Johnston Street, Suite 103, 1st Floor Wagga Wagga, New South Wales 2650 Australia About Leeton Golf Leeton Golf Club Ltd. operates membership sports and recreation clubs. The company is located at Leeton, in New South Wales, Australia. MARETT DESIGN: Commences Liquidation Proceedings ------------------------------------------------ Marett Design Pty. Limited's members agreed on February 28, 2008, to voluntarily liquidate the company's business. The company has appointed Michael John Morris Smith to facilitate the sale of its assets. The liquidator can be reached at: Michael John Morris Smith Smith Hancock 88 Phillip Street, Level 4 Parramatta, New South Wales 2150 Australia About Marett Design Marett Design Pty. Limited is involved with glass and glazing work. The company is located at Gladesville, in New South Wales, Australia. MUSWELLBROOK EQUIPMENT: Members' Final Meeting Is Today ------------------------------------------------------- John Robert Hallett, Muswellbrook Equipment Hire Pty. Ltd.'s estate liquidator, will meet with the company's members today, April 2, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. According to the Troubled Company ReporterAsia Pacific, the company commenced liquidation proceedings on November 23, 2007. The liquidator can be reached at: John Robert Hallett Rose & Partners 109 Liverpool Street, Scone New South Wales 2337 Australia About Muswellbrook Equipment Muswellbrook Equipment Hire Pty. Ltd. provides business services. The company is located at Muswellbrook, in New South Wales, Australia. NICHOLSON REALTY: Members and Creditors to Meet on April 14 ----------------------------------------------------------- Nicholson Realty Pty. Limited will hold a joint meeting for its members and creditors at 10:00 a.m. on April 14, 2008. At the meeting, the company's liquidator, Brent Kijurina at Hall Chadwick, will provide the attendees with property disposal and winding-up reports. As reported by the Troubled Company ReporterAsia Pacific, the company commenced liquidation proceedings on September 25, 2007. The liquidator can be reached at: Brent Kijurina Hall Chadwick 31 Market Street, Level 29 Sydney, New South Wales 2000 Australia About Nicholson Realty Nicholson Realty Pty. Limited deals with real estate agents and managers. The company is located at Katoomba, in New South Wales, Australia. OPES PRIME: Corporate Watchdog Investigates Irregularities ---------------------------------------------------------- The Australian Securities and Investments Commission commenced an investigation into Opes Prime Stockbroking Ltd. A receiver and an administrator were appointed to Opes Prime and it has been suspended as a trading, settlement and clearing participant of the Australian Securities Exchange. ASIC has formed a special team to investigate any potential breaches of the Corporations Act. John Durie of The Australian writes that the ASIC and ASX investigations are focused on transactions involving clients and principals of Opes, including its boss Laurie Emini and just how they related to the firm's capital position. The Australian Associated Press reports that ASIC obtained orders from the Federal Court placing travel restrictions on Opes Chief Executive Lirim "Laurie" Emini. The AAP states that ASIC will not say if it is pursuing more legal action in relation to the firm. A spokesperson for ASIC expressed to the AAP that the company could not comment at this stage whether any other applications had been made to the courts by ASIC in relation to Opes. The AAP quotes the spokesperson as saying, "If we do, we will make that public after the fact, but we're not going to pre-empt anything that we're doing as part of our general investigation." About Opes Prime Opes Prime Group Ltd is an Australian unlisted public company providing a range of financial services and products for high net worth individuals, stockbrokers and financial advisors, asset managers, banks and other firms, both for themselves and their clients. The Group conducts business via a number of operating subsidiaries based in Melbourne, Sydney and Singapore: 1) Opes Prime Stockbroking Limited is a full Market Participant of the Australian Stock Exchange Ltd, and holds an Australian Financial Services Licence (#247408) which enables it to deal and advise in financial services and products to retail and wholesale clients. The company was first registered on 10 March 1999, and started business with its current shareholders in 2005. Opes Prime Stockbroking is a specialist provider of securities lending and equity financing services. In Singapore, the firm operates through Opes Prime Group’s wholly owned subsidiary, Opes Prime International Pte Ltd. In Australia, Opes Prime Stockbroking has granted Authorized Representative status to Trader Dealer Pty Ltd, an on-line non-advisory trading execution service for the semi- professional and professional trader. 2) Opes Prime Structured Products Pty Ltd develops, manages and markets specialized leveraged products for the high net worth market, providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008 that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group’s affairs to quantify the likely liability to OPSL’s clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. OPES PRIME: Reco Financial Withdraws Acquisition Deal ----------------------------------------------------- Reco Financial Services Ltd., which had been intending to acquire Opes Prime Group Ltd., has terminated the deal, the Australian Associated Press reports. In a statement to the Australian Securities Exchange, Reco said, "The appointment of administrators to Opes Prime has come as a complete surprise to Reco and its directors who were led to believe that Opes Prime was a profitable and solvent business." The AAP further quotes Reco as saying, "Reco has reserved its legal rights in relation to the vendors of the shares in Opes Prime, and Opes Prime in relation to the share purchase agreement and the transaction." About Opes Prime Opes Prime Group Ltd is an Australian unlisted public company providing a range of financial services and products for high net worth individuals, stockbrokers and financial advisors, asset managers, banks and other firms, both for themselves and their clients. The Group conducts business via a number of operating subsidiaries based in Melbourne, Sydney and Singapore: 1) Opes Prime Stockbroking Limited is a full Market Participant of the Australian Stock Exchange Ltd, and holds an Australian Financial Services Licence (#247408) which enables it to deal and advise in financial services and products to retail and wholesale clients. The company was first registered on 10 March 1999, and started business with its current shareholders in 2005. Opes Prime Stockbroking is a specialist provider of securities lending and equity financing services. In Singapore, the firm operates through Opes Prime Group’s wholly owned subsidiary, Opes Prime International Pte Ltd. In Australia, Opes Prime Stockbroking has granted Authorized Representative status to Trader Dealer Pty Ltd, an on-line non-advisory trading execution service for the semi- professional and professional trader. 2) Opes Prime Structured Products Pty Ltd develops, manages and markets specialized leveraged products for the high net worth market, providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008 that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group’s affairs to quantify the likely liability to OPSL’s clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. OZ WRAP (INTERNATIONAL): Commences Liquidation Proceedings ---------------------------------------------------------- Oz Wrap (International) Pty. Limited's members agreed on February 26, 2008, to voluntarily liquidate the company's business. The company has appointed Sule Arnautovic to facilitate the sale of its assets. The liquidator can be reached at: Sule Arnautovic Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Oz Wrap (International) Oz Wrap (International) Pty. Limited is involved with deep sea foreign transportation of freight. The company is located at Vincentia, in New South Wales, Australia. PERSONAL INVESTMENT: Final Meeting Set for April 11 --------------------------------------------------- Personal Investment Planners Pty. Ltd. will hold a final meeting for its members and creditors at 10:15 a.m. on April 11, 2008. At the meeting, the company's liquidator, Sule Arnautovic at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Sule Arnautovic Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Personal Investment Located at Chatswood, in New South Wales, Australia, Personal Investment Planners Pty. Ltd. is an investor relation company. SAMSON HYDRAULICS: Members Opt to Liquidate Business ---------------------------------------------------- Samson Hydraulics Pty. Limited's members agreed on February 29, 2008, to voluntarily liquidate the company's business. The company has appointed Sule Arnautovic to facilitate the sale of its assets. The liquidator can be reached at: Sule Arnautovic Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Samson Hydraulics Samson Hydraulics Pty. Limited is a distributor of industrial and commercial machineries and equipments. The company is located at Hexham, in New South Wales, Australia. ST. GEORGE: Fitch Gives BB Final Rating to AUD1.7M Class D Bonds ---------------------------------------------------------------- Fitch Ratings, on March 31, assigned final ratings to St.George Bank Limited's Crusade ABS Series 2008-1 prime auto receivables- backed bonds due March 2015: -- AUD78 million Class A-1: 'F1+'; -- EUR100m Class A-2: 'AAA'; -- AUD70m Class A-3: 'AAA'; -- AUD9.9m Class B: 'A'; -- AUD4.4m Class C: 'BBB'; -- AUD1.7m Class D: 'BB'; and -- AUD1.0m Class E: 'B'. The notes are issued by BNY Trust Company of Australia Limited in its capacity as trustee of Crusade ABS Series 2008-1. They are collateralised by loans and leases over Australian prime auto receivables. All loans and leases were originated by St. George Finance Limited in the ordinary course of business. This transaction represents the first public securitisation in Australia since the emergence of the global liquidity crisis late last year and is the first for 2008. In addition, the transaction provides a welcome diversification for investors away from RMBS and may be representative of the types of asset classes that may be acceptable to investors given the current volatile market conditions. This is the second securitisation of prime auto receivables originated by SGF (the first being in 1999). At the cut-off date of 26 March 2008, the total collateral pool consisted of 18,504 loans and leases totalling approximately AUD337.4m. The final 'F1+' ratings assigned to the Class A-1 notes and the final 'AAA' ratings assigned to the A-2 and A-3 notes are based on: -- the quality of the mortgage loan collateral; -- the 6.5% credit enhancement provided by the subordination of the Class B, C, D, E and seller notes; -- the excess spread available to cover losses; -- the liquidity reserve equivalent to the greater of: (i) 1.0% of the aggregate invested amount of the outstanding notes; or (ii) AUD300,000; -- the interest rate swap provided by St.George Bank Limited (rated 'A+'/'F1'); -- St.George's underwriting and servicing capabilities; and -- a sound legal structure. The final ratings on the Class B, C, D and E notes are based on all the strengths supporting the Class A notes, excluding their credit enhancement levels. TIMEJOY PTY: Liquidator to Give Wind-Up Report on April 11 ---------------------------------------------------------- Timejoy Pty. Limited will hold a final meeting for its members and creditors at 10:40 a.m. on April 11, 2008. At the meeting, the company's liquidator, Adam Shepard at Star Dean-Willcocks, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Adam Shepard 32 Martin Place, Level 1 Sydney, New South Wales Australia About Timejoy Pty. Timejoy Pty Limited operates miscellaneous retail stores. The company is located in Sydney, New South Wales, Australia. TOUKLEY FURNISHINGS: Undergoes Liquidation Proceedings ------------------------------------------------------ Toukley Furnishings Pty. Ltd.'s members agreed on February 28, 2008, to voluntarily liquidate the company's business. The company has appointed Barry Noel Davis to facilitate the sale of its assets. The liquidator can be reached at: Barry Noel Davis All Coast Accounting Services 149 Pacific Highway Charmhaven, New South Wales 2263 Australia About Toukley Furnishings Toukley Furnishings Pty. Ltd. operates floor covering stores. The company is located at Toukley, in New South Wales, Australia. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== BALLY TOTAL: Commences Cash Distribution to Former Stockholders --------------------------------------------------------------- Bally Total Fitness Holding Corporation commenced the process to make an initial cash distribution to former stockholders, in accordance with the terms of Bally's confirmed chapter 11 plan. The initial cash distribution is US$.31 per share of Old Common Stock. Approximately US$3.5 million has been reserved by Bally's disbursing agent, pending disallowance of certain outstanding claims that were filed in Bally's chapter 11 case. These reserved funds may fund a second distribution to holders of Old Common Stock, but such a distribution is subject to satisfactory resolution of the outstanding claims. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre-packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. On Aug. 13, 2007, they filed an Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified Amended Prepackaged Plan. BANK OF CHINA: Hired by Country Garden for US$200-Mln Loan ---------------------------------------------------------- Country Garden Holdings Co. has hired Bank of China Ltd. to arrange a three-year loan for US$200 million that can be drawn in the U.S. and Hong Kong currencies, two people privy to the matter told Bloomberg News. According to Bloomberg, its sources, who declined to be identified because the information isn't public, said Country Garden seeks to raise the amount after higher borrowing costs forced the Chinese developer to cancel an overseas bond sale last year. Patricia Kuo of Bloomberg News relates that the developer sold its first convertible debt in February after scrapping a US$1 billion bond offering in November. The loan will add to the CNY4.3 billion it raised in February from the sale of convertible bonds to invest in projects and refinance debt, Bloomberg reports. About Country Garden Founded in 1997 in China and listed in Hong Kong in April 2007, Country Garden Holdings Co Ltd is one of the leading integrated property developers in China. It has a sizeable land bank of about 50 million square meters gross floor area spreading over 45 projects located in Guangdong, Anhui, Hubei, Hunan, Jiangsu, Inner Mongolia, Liaoning, and Chongqing. On Feb. 21, 2008, the Troubled Company Reporter-Asia Pacific reported that Moody's Investors Service assigned a Ba1 rating to Country Garden Holdings Company Limited's CNY3,595 million five years convertible bonds. Moody's also affirmed Country Garden's corporate family rating of Ba1. The outlook for both ratings remains stable. About Bank of China 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. BANK OF CHINA: Inks Deal With Deutsche Lufthansa for Two Airbus --------------------------------------------------------------- Bank of China Limited has signed agreements with Deutsche Lufthansa AG for the financing of two Airbus A330-300 aircraft under Japanese operating lease structures, Thomson Financial News reports, citing BOC Aviation's statement. The Euro-denominated facilities of about US$154 million are for a term of over 12 years, Thomson Financial relates. The arrangement is the first aircraft debt facility arranged for Lufthansa by a Chinese bank, the report added. BOC Aviation, a wholly owned subsidiary of the bank, acted as the debt arranger, Thomson Financial reports. About Deutsche Lufthansa Deutsche Lufthansa AG is a Germany-based holding company with network of more than 400 subsidiaries and affiliates around the globe that is involved in the aviation sector. It operates in five business segments: Passenger Transportation is the core business segment, in which Lufthansa offers its customers a comprehensive network with its own flight connections to 185 cities; Logistics, the company's second core segment, comprises the sale and execution of air freight transport within the Lufthansa Group; the Maintenance, Repair and Overhaul segment provides engineering services for civil aircrafts; the Catering segment provides airline catering services to international airlines, and the Information Technology services segment provides a range of IT services for the airline and aviation sectors through the Lufthansa Systems group. In 2007, the company sold its Leisure Travel business segment. Deutsche Lufthansa AG is headquartered in Cologne, Germany. About Bank of China 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. CENTRAL CHINA: Commences Liquidation Proceedings ------------------------------------------------ Central China International Limited's members agreed on March 13, 2008, to voluntarily liquidate the company's business. The company has appointed John Robert Lees to facilitate the sale of its assets. The liquidator can be reached at: John Robert Lees 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong CENTRAL CHINA I.T.: Commences Liquidation Proceedings ----------------------------------------------------- Central China I.T. Limited's members agreed on March 13, 2008, to voluntarily liquidate the company's business. The company has appointed John Robert Lees to facilitate the sale of its assets. The liquidator can be reached at: John Robert Lees 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong CHAINSTOREONLINE.NET: Commences Liquidation Proceedings ------------------------------------------------------- Chainstoreonline.net Limited's members agreed on March 13, 2008, to voluntarily liquidate the company's business. The company has appointed John Robert Lees to facilitate the sale of its assets. The liquidator can be reached at: John Robert Lees 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong CHEERWAY INVESTMENT: Commences Liquidation Proceedings ------------------------------------------------------ Cheerway Investment Limited's members agreed March 13, 2008, to voluntarily liquidate the company's business. The company has appointed Ng Kwok Tung and Chan Wai Kee to facilitate the sale of its assets. The liquidators can be reached at: Ng Kwok Tung Chan Wai Room 201-205 Alliance Building, 2nd Floor 130-136 Connaught Road Central, Hong Kong CHINA EASTERN: Launches Regional Joint Venture With AVIC 1 ---------------------------------------------------------- China Eastern Airlines and AVIC I has launched their Joy Air joint venture in Beijing aiming to support the development of domestically produced aircraft and tapping the regional market in western China, Katie Cantle of ATW Daily News reports. According to Ms. Cantle, the new regional carrier celebrated its launch by signing a letter of intent to purchase 10 ARJ21s. Joy Air is based in Xi'an, China and has registered capital of CNY1 billion, the report relates. Ms. Cantle adds that AVIC I is Joy Air's controlling shareholder with a 60% stake and an investment of CNY600 million, while China Eastern will contribute CNY400 million and hold the remaining 40%. China Eastern Chairman Li Fenghua noted to ATW Daily that the new venture will prioritize "cost control" in order to attract more passengers with lower fares. "Joy will establish a broad regional route network in West China, which will be connected with CEA's trunk route network so that passengers can enjoy a more convenient and efficient trip," ATW Daily quotes Mr. Li as saying. "Currently there are more than 100 regional airports in China and the Chinese government is going to construct 45 more regional airports by 2010, which will provide a broad development space for Joy," Mr. Li added, ATW Daily reports. 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: Launches New Flight Service to Iran --------------------------------------------------- China Southern Airlines has launched its new service to Tehran, Iran, offering Sky Pearl Club frequent flyers very special mileage bonuses. China Southern is also starting double daily service between Beijing - Seoul and Beijing - Hong Kong with FFP incentives. 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. CITIBRIGHT PROPERTIES: Commences Liquidation Proceedings -------------------------------------------------------- Citibright Properties Limited's members agreed on March 10, 2008, to voluntarily liquidate the company's business. The company has appointed Robert Osborne Lee to facilitate the sale of its assets. The liquidators can be reached at: Robert Osborne Lee Unit 1507, 15th Floor AXA Centre No. 151 Goucester Road Wanchai, Hong Kong EXCEL TALENT: Commences Liquidation Proceedings ----------------------------------------------- Excel Talent Enterprise Limited's members agreed on March 13, 2008, to voluntarily liquidate the company's business. The company has appointed John Robert Lees to facilitate the sale of its assets. The liquidator can be reached at: John Robert Lees 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong HKS MACAU: Creditors' Proofs of Debt Due on April 22 ---------------------------------------------------- Creditors of HKS Macau Holdings Limited are required to file their proofs of debt by April 22, 2008, to be included in the company's dividend distribution. The company's liquidator is: Chan Sun Kwong Oriental Centre, Room 102, 1st Floor 67-71 Chatham Road Tsimshatsui Kowloon, Hong Kong HONOR UNITY: Commences Liquidation Proceedings ---------------------------------------------- Honor Unity Development Limited's members agreed on March 13, 2008, to voluntarily liquidate the company's business. The company has appointed John Robert Lees to facilitate the sale of its assets. The liquidator can be reached at: John Robert Lees 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong KAMLEY TRADING: Commences Liquidation Proceedings -------------------------------------------------- Kamely Trading Limited's members agreed on March 10, 2008, to voluntarily liquidate the company's business. The company has appointed Robert Osborne Lee to facilitate the sale of its assets. The liquidators can be reached at: Robert Osborne Lee AXA Centre, Unit 1507, 15th Floor No. 151 Goucester Road Wanchai, Hong Kong MANSFIELD LIMITED: Commences Liquidation Proceedings ---------------------------------------------------- Mansfield Limited's members agreed on March 13, 2008, to voluntarily liquidate the company's business. The company has appointed John Robert Lees to facilitate the sale of its assets. The liquidator can be reached at: John Robert Lees 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong * HONG KONG: Fitch Comments on Non-Life Insurance Sector -------------------------------------------------------- In a special report published yesterday, Fitch Ratings provided its latest views on the opportunities and threats facing the Hong Kong non-life insurance sector. Given Hong Kong's relatively small and mature market, Fitch believes that the threats facing the non-life insurers will outweigh the opportunities in the next 12-24 months. The agency expects that price will remain the basis of competition for the vast majority of business lines. There are already signs that premium rates are softening further, potentially leading to shrinking premium volumes. The situation is worrying, as one would expect claim costs to continue to rise in an inflationary environment. The accident and health business, as the agency pointed out back in 2005, remains the single most promising segment, although the positive trend might benefit only the participants with the strongest franchises, distribution channels and operational expertise. Overall, Fitch believes that companies with solid credit profiles continue to have the ability to manage the structural and cyclical challenges facing the industry in the near term. Insurers with ownership and operational ties to stronger financial services or corporate groups would also potentially benefit from parental support, should the need arise. In the agency's view, companies with high premium leverage and risk concentrations in the motor and employees' compensation business will remain the most vulnerable if operating conditions continue to deteriorate. The special report, entitled "The Hong Kong Non-life Sector: Navigating through Structural and Cyclical Challenges", will be available shortly on the agency's Web site http://www.fitchratings.com ========= I N D I A ========= AES CORP: Andres Gluski Buys 6,200 Shares for US16.30 Each ---------------------------------------------------------- AES Corp.'s Executive Vice President and Chief Operating Officer Andres Gluski has purchased 6,200 shares in the company for up to US$16.30 each. The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a power company with operations in South America, Europe, Africa, Asia and the Caribbean. The Company generates 44,000 megawatts of electricity through 124 power facilities, and delivers electricity through 15 distribution companies. AES's business group in Asia & Middle East is comprised of electric utilities and generation plants in China, India, Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka. Fuels include coal, diesel, hydro, gas and oil. AES has been in the region since 1994, when it acquired the Cili generation plant in China. * * * The AES Corporation still carries Moody's Investors Service's Corporate Family Rating and the senior unsecured rating assigned at B1. The company also carries Fitch Ratings' 'BB/RR1' rating on US$500 million issue of senior unsecured notes due 2017. As reported in the Troubled Company Reporter-Latin America on March 7, 2008, AES Corporation is in default under its senior secured credit facility and its senior unsecured credit facility due to a breach of representation related to its financial statements as set forth in the credit agreements. As a result, US$200 million of the debt under the company's senior secured credit facility will be classified as current on the balance sheet as of Dec. 31, 2007. There are no outstanding borrowings under the senior unsecured facility. ESSAR OIL: Issues and Allots 34,227,018 Shares ---------------------------------------------- Essar Oil Ltd. disclosed in a regulatory filing with the Bombay Stock Exchange that it has issued and allotted the first tranche of 34,227,018 equity shares of INR10 each (face value) fully paid up at a price of INR200 per share. The share issuance is pursuant to the company's plans to issue US$2 billion Global Depository Shares to promoters on preferential basis. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 31, Essar Oil wanted to raise up to US$2 billion for its various developmental business activities. The company will raise the funds by issuing debt or equity in the domestic or international markets and/or via qualified institutional placement. According to the BSE filing, the shares were issued and alloted in favor of the overseas depository The Bank of New York represented by 223,706 GDSs aggregating to US$170.787 million. About Essar Oil Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. GENERAL MOTORS: Delphi Wants Indemnification Pact Extended ---------------------------------------------------------- Delphi Corp. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to extend the indemnification agreement between Delphi Corp. and General Motors Corp. with respect to the UAW Benefit Guarantee, dated as of Dec. 22, 1999, for an additional time period of up to 15 days, until April 15, 2008, if GM extends its obligations under the UAW Benefit Guarantee by the same period of time. As reported in the Troubled Company Reporter on June 26, 2007, the United Automobile, Aerospace and Agricultural Implement Workers of America, Delphi, and GM entered into a memorandum of understanding. Among other things, the UAW-Delphi-GM Memorandum of Understanding was designed to enable Delphi's continued transformation to more competitive wage and benefit levels and to address divestiture, work rules, and staffing level issues in the Debtors' workforce. Pursuant to the UAW-Delphi-GM Memorandum of Understanding, the UAW, Delphi, and GM also agreed to the "Term Sheet—Delphi Pension Freeze and Cessation of OPEB, and GM Consensual Triggering of Benefit Guarantee," which facilitates the freezing of Delphi's pension plan and the assumption of billions of dollars of OPEB liabilities by GM, thereby dramatically reducing Delphi's ongoing benefit costs. The UAW-Delphi-GM Memorandum of Understanding was ratified by the UAW membership on June 28, 2007, and approved by the Court on July 19, 2007. The UAW-Delphi-GM Memorandum of Understanding extended the time period for certain of GM's obligations under the Sept. 30, 1999 Benefit Guarantee Agreement between GM and the UAW to March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31, 2007. Delphi and GM also agreed that the eighth anniversary date reference in the Indemnification Agreement would be extended until March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31. The Debtors' Chapter 11 Plan, however, was not confirmed and substantially consummated by Dec. 31. Nonetheless, the UAW-Delphi-GM Memorandum of Understanding additionally provided that the March 31, 2008 UAW Benefit Guarantee extension date would be extended to "such later date as Delphi and GM will agree to extend the Indemnification Agreement expiration." Under the provisions of the Memorandum of Understanding approved by the Court on July 19, 2007, the Debtors believe that they already have authority to extend the Indemnification Agreement for additional time periods. Out of an abundance of caution, however, and as a result of GM's unique role in the Chapter 11 cases, the Debtors seek the Court's authority to extend the Indemnification Agreement. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, asserts that an extension will allow Delphi's indemnification obligations under the Indemnity Agreement to continue uninterrupted until it has emerged from Chapter 11. If the Plan is not consummated, the extension will also provide additional time for the Debtors to consider whether additional extensions are appropriate or viable. The extension, in the exercise of the Debtors' business judgment, is in the best interests of the Debtors' estates, creditors, and other parties-in-interest, including Delphi's employees, Mr. Butler asserts. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 120; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review theratings in light of the extended American Axle (BB/Watch Neg/--)strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. GUJARAT SPICES: Weak Risk Profile Cues CRISIL's BB+ Ratings ----------------------------------------------------------- CRISIL has assigned bank loan ratings of ‘BB+/Stable/P4’ to Gujarat Spices and Oilseeds Growers Co-operative Union’s bank facilities: INR153 Million Cash Credit Limits BB+/Stable INR300 Million Term Loans BB+/Stable INR67 Million Working Capital Demand Loan P4 INR1200 Million Letter of Credit Limits P4 INR130 Million Bank Guarantee P4 The ratings reflect the Union’s weak financial risk profile, and low profit margins due to the commoditised nature of the edible oil refining business, and high working capital requirements. These weaknesses are, however, partially mitigated by incentives provided by the government, favourable location of GSOGCU’s manufacturing facility, and healthy growth in revenues. The consolidated financial risk profile of GSOGCU and Vimal Oil and Foods Ltd is weak, marked by low profitability and net worth, high working capital requirements and gearing, and below average debt protection indicators. For arriving at the rating, CRISIL has combined the financials of GSOGCU and VOFL owing to the extension of guarantees (aggregating INR1.5 billion) by VOFL for loans taken by GSOGCU. The net profitability has been around 1 per cent since 2003-04 (refers to financial year, April 1 to March 31), resulting in a low net worth of INR286 million as on March 31, 2007. Short term borrowings (used to fund working capital levels) have been increasing in line with higher business levels, resulting in adverse gearing levels of nearly 4 times as on March 31, 2007. The net cash accruals to total debt and interest coverage ratios were below average at around 0.11 times and 2.21 times, respectively in 2006-07. In addition, the Union’s financial flexibility is constrained as reflected in its limited ability to raise resources at competitive rates. Also, GSOGCU’s edible oil business is exposed to availability (inputs), regulatory and pricing risks. GSOGCU, however, benefits from sales tax concessions. The Union’s manufacturing facility is strategically located in Kutch (Gujarat), which helps it lower transportation cost of inputs and distribution cost of end products. GSOGCU-VOFL’s combined revenues have registered a healthy compounded annual growth of 35 per cent in the 2004-05 to 2006-07 period, supported by its well diversified geographical presence across Gujarat, Rajasthan Uttar Pradesh, Himachal Pradesh and Assam. The Union proposes to leverage its established brand in these states, and further expand its reach in northern and north-eastern states of India. CRISIL believes that these initiatives, along with healthy demand prospects for branded edible oils, will enable sustenance of healthy growth in revenues over the medium term. Outlook: Stable GSOGCU’s business growth is likely to remain healthy, although the operating margins will remain weak over the medium term. The consolidated financial profile is also expected to remain weak over the medium term, though gearing levels will witness a moderate improvement to about 1.5 times due to better accruals and an equity infusion in 2007-08. The outlook may be revised to ‘Negative’ in case of substantial deterioration in the overall credit profile. Conversely, the outlook may be revised to ‘Positive’ in case of substantial improvement in the overall credit profile. About GSOGCU Gujarat Spices and Oilseeds Growers Co-operative Union is a state-level co-operative federation set up in August 2003 in order to avail of the benefits available under the Gujarat Earthquake Relief Programme. The Union, located in Gujarat is engaged in the business of edible oil refining. It has an installed capacity of 270,000 tonnes per annum for oil refining. GSOGCU’s products are sold under the brand names Shreeji (soya oil), Oscar (palm oil), Lijjat (vanaspati), and Shreehari (palmolein). The Union uses Vimal Oil and Foods Ltd’s marketing network for its sales and pays a proportionate share of the marketing manpower cost. It also has its own small marketing network in states where VOFL does not have a presence. For 2006- 07, the GSOGCU-VOFL combine’s consolidated profit after tax stood at INR92.45 million (INR40.22 million in the previous year) on net sales of INR8.60 billion (INR7.22 billion). KHATIMA FIBRES: CRISIL Gives BB Ratings to Bank Facilities ---------------------------------------------------------- CRISIL has assigned bank loan ratings of 'BB/Stable/P4' to the various bank facilities of Khatema Fibres Ltd: INR358.5 Million Term Loans BB/Stable INR460 Million Cash Credit Limit BB/Stable INR35 Million Letter of Credit Limit P4 The ratings reflect Khatema Fibres' constrained financial flexibility, moderate financial risk profile, and susceptibility of margins to fluctuations in raw material prices. These weaknesses are, however, partially mitigated by the company's operational advantages arising from plant modernisation and state government incentives, and its established position in manufacturing kraft liner boards. Khatema Fibres' business is highly working capital intensive, primarily because of its dependence on imported waste paper and the long lead time between the placing of an order and receipt of raw material. The company maintains a very high inventory level, exceeding 170 days. High working capital requirements, limited flexibility to stretch creditors, and inadequate cash buffers, have led to delays in the repayment of short-term borrowings by two to three days in the past. This was further aggravated by a fire accident in its raw material yard in November 2007, due to which the company had delayed on the interest and principal repayment due on one of its term loans in December 2007; the payments were subsequently regularised, in February 2008. Though the company’s overall cash accruals have been sufficient to meet its term loan repayment requirements, such liquidity mismatches, however, severely impair the company’s financial flexibility. Khatema Fibres’ financial risk profile is marked by a moderate net worth of less than INR500 million, a high gearing level ranging between 1.5 and 1.8 times over the past five years, and moderate debt protection measures. The high gearing is attributed to the large debt-funded capital expenditure in the past. With relatively moderate capex plans going forward, CRISIL expects Khatema Fibres’ gearing to improve gradually; however, its debt protection measures are expected to continue to remain moderate -- net cash accruals to debt ratio of less than 0.2 times and interest coverage of less than 2.6 times -- over the near to medium term. Also, high fragmentation in the domestic industrial paper industry makes it difficult to pass on raw material price increases to end-users. Hence, the company’s margins remain vulnerable to fluctuations in international waste paper prices. Khatema Fibres has, however, consistently modernised and balanced its capacities, since inception. This has resulted in the company attaining a high capacity utilisation, of more than 90 per cent. Also, the recently installed double-loop de-inking system is expected to reduce the cost of raw materials used and, thus, improve the company’s operating margins. The company also benefits from a number of incentives offered by the Uttarakhand government as part of its policy to attract investments in the state. These include subsidised power and income tax exemptions. Khatema Fibres has over 17 years’ experience in manufacturing kraft liners boards. It pioneered the production of three-layered kraft paper in India. Outlook: Stable CRISIL expects Khatema Fibres Ltd’s financial flexibility to remain constrained on account of its high gearing and lapses in managing short-term liquidity mismatches. The rating may have a further negative bias if there is continued delay/default in debt servicing; or if the company undertakes large, debt-funded capex programmes. Conversely, the rating may have a positive bias if Khatema Fibres maintains adequate buffers to fund liquidity mismatches, and its capital structure improves materially from current levels. About Khatema Fibres Khatema Fibres was promoted by R. C. Rastogi in 1985. The company manufactures a range of industrial papers such as bleached and unbleached kraft liner boards, coloured kraft paper for applications such as packaging, electrical insulation, carry bags, and poster paper. It also makes newsprint and speciality papers such as crepe tissue. The company is held closely by the promoter’s family and friends. For the year ended March 31, 2007, Khatema Fibres reported a net profit of Rs.77.9 million on net sales of Rs.1085.2 million, as against a net profit of Rs.93 million on net revenues of Rs.903.8 million in the previous year. MP CHINI: Bank Facilities Get CRISIL's BB & P4 Ratings ------------------------------------------------------ CRISIL has assigned bank loan ratings of ‘BB/Stable/P4’ to MP Chini Industries Limited’s bank facilities: INR403.5 Million Cash Credit* BB/Stable INR22 Million Bank Guarantee P4 * Interchangeable with sub-limits (Documentary Bill Discounted, Overdraft against Discounting and Demand Loans) The ratings take into account the company’s weak financial profile, low integration of its sugar facility, unfavourable location of its plant, and high levels of regulatory risk. These weaknesses, are however, partly mitigated by the company’s high utilization levels and average sugar recovery rate. Sluggish sugar prices and high sugarcane prices have weakened MP Chini’s financial risk profile since the second half of 2006-07 (refers to financial year, April 1 to March 31). Consequently, in 2006-07, the company reported low net profits of INR5.5 million, as against INR74 million in 2005-06. MP Chini’s low net worth (INR206 million as on March 31, 2007) also increases its vulnerability to cyclical downturns in sugar prices, as witnessed at present. Besides, weak debt protection measures and high gearing levels (1.30 times as on March 31, 2007) also limit the company’s ability to undertake sizeable capital expenditure. MP Chini like most of its peers, has reported losses at the operating and net level in the first nine months of 2007-08. To offset the losses and liquidity pressures being faced by domestic manufacturers, the Bihar government has offered subsidy assistance for cane payment for the 2006-07 sugar season (refers to the period, October 1 to September 30) and has lowered sugarcane price for the 2007-08 sugar season, while the government of India also announced buffer stock subsidy assistance as well as interest-free loans for sugar manufacturers to the extent of excise duty paid for 2006-07 sugar season. However, these measures are expected to provide only temporarily relief on the liquidity front, for most players, including MP Chini. This is because though domestic sugar production is estimated to decline to about 26 million tonnes in the 2007-08 sugar season, higher stock levels from the previous season are expected to limit significant improvement in sugar prices in the near term. Also, sugarcane prices are likely to move up as sugar prices start improving, and this could limit any significant improvement in MP Chini’s currently weak financial profile. MP Chini is a standalone sugar manufacturer, and has yet to diversify its operations into co-generation of power (for sale) or distillery operations. Besides, the landlocked nature of its sugar manufacturing facility (in West Champaran, Bihar) and long distance from the Kolkata port, limits its ability to export sugar/import raw sugar for processing. Also, the sugar industry is highly regulated, with the GoI maintaining controls over both pricing and supply of sugarcane and sale of sugar. Consequently, the credit quality of domestic players continues to hinge on sugarcane price regulations, the export-import policy, and GoI’s sugar release mechanism. Notwithstanding the above, MP Chini has maintained high levels of capacity utilisation (over 95 per cent in 2006-07), and has also maintained a base recovery rate of 9 per cent over the past four years, which is at par with those of average players in the industry. Outlook: Stable CRISIL believes sugar prices will register a limited improvement over the near term, as high carryover stocks from the 2006-07 sugar season are expected to partially offset the impact of lower sugar production in the 2007-08 sugar season. CRISIL expects that MP Chini’s overall credit profile, which began deteriorating in the second half of 2006-07, will hence continue to face moderate pressure in the near term. The outlook may be revised to ‘Negative’ should the company’s financial position deteriorate significantly in the near term, leading to inability in meeting debt obligations in a timely manner. Conversely, the outlook may be revised to ‘Positive’ in case of a significant increase in sugar prices, leading to an improved financial position for MP Chini. About MP Chini MP Chini is among the smaller players in the sugar industry, with a licensed capacity of 3500 tonnes of cane crushed per day. The company’s 4 MW bagasse-based co-generation plant suffices to meet its power requirements. MP Chini has around 1,000 acres of agricultural land, around 40 per cent of which is used for cane cultivation and seed trials. For 2006-07, the company reported a net profit of INR5.5 million on sales of INR847 million, as against a net profit of INR74 million on sales of INR627 million in the previous year. PHOENIX SOLAR: CRISIL Assigns BB+ Rating to INR2 Bil. Term Loan --------------------------------------------------------------- CRISIL has assigned a bank loan rating of ‘BB+/Stable’ to Phoenix Solar India Ltd’s INR2 billion term loan. The rating reflects: -- the implementation risk associated with the company’s project, -- the company’s lack of tie-ups with raw material suppliers in a situation where supplies are short, and -- the fact that funding for the project has not been fully arranged. The rating also factors in the healthy prospects of the solar power industry, the promoters’ long experience in running entrepreneurial ventures, and the company’s use of the proven and well-established crystalline wafer technology. Phoenix Solar’s project is technologyintensive. Its order for machinery has been placed, but the machines will arrive only in November 2008, and production is likely to commence from April 2009. Delays in the arrival of machines and stabilisation of production lines could result in production delays. Further, for smooth implementation of the project, the technology needs to be successfully absorbed by the company’s technical team, which is to be recruited over the next 6 to 12 months. The company’s success in getting experienced staff, and the absorption of technology and smooth running of the lines by shop floor employees, will be key rating sensitivity factors. Moreover, Phoenix Solar has not yet tied up with any raw material suppliers for the supply of silicon wafers, the key raw material for photovoltaic (PV) cells. The project will cost around INR3 billion, to be funded at a debt-to-equity ratio of 2:1. The equity portion will be funded by the promoters, but the debt funding has not been tied up yet. Moreover, the working capital requirements of the project will be high because of the need to maintain large inventory; bank lines for working capital are yet to be arranged. These weaknesses are partially offset by the strong demand for PV cells due to government support through subsidies and tax holidays. The promoters, with their long-standing experience behind them, have exhibited their ability to successfully run projects and scale up operations. Moreover, the company will be using crystalline wafer technology, which has been tested and commercially implemented globally by major PV manufactureINR The PV cell lines are being sourced from the Schmid group, Germany, which has given a performance guarantee and will train Phoenix Solar’s staff and provide annual maintenance services. Outlook: Stable The outlook on Phoenix Solar’s proposed PV cells manufacturing project factors in the promoters’ strong entrepreneurial background and their technology tie-up with the Schmid group. The outlook also factors in the expected strong cash accruals from the business, and consequent improvement in capital structure over the medium term. The outlook may be revised to ‘Positive’ if there are no project delays and if the company manages to enter into long-term contracts for the supply of the key input, silicon wafers. Conversely, the outlook may be revised to ‘Negative’ in case of cost overruns or delays. Lower-than-expected profitability will also lend a negative bias to the rating. About Phoenix Solar Phoenix Solar was incorporated in February 2006 by B. K. Gupta and his son H. R. Gupta. The company plans to set up a 70-mega watt capacity plant in Greater Noida to manufacture PV cells using the crystalline wafer technology. QUEBECOR WORLD: Court OKs Prepetition Payments to 376 Managers -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Quebecor World Inc. and its debtor-affiliates to pay the accrued prepetition payments due under their Management Incentive Compensation Plan and Plant Based Incentive Plan. The Debtors sought the Court's permission 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: Prepetition Plan No. of Employees Amount Due ---- ----------------- ---------- MICP 135 US$2,627,776 PBIP 241 US$1,949,760 The Court, however, has not yet given the Debtors permission to continue their Management Incentive Compensation Plan and the Plant Based Incentive Plan postpetition and in the ordinary course of business. The Court will consider the request in the next omnibus hearing. As reported in the Troubled Company Reporter on March 24, 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. About Quebecor World Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. 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. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related $600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Silvex Seeks Recovery from Insurance Claims ----------------------------------------------------------- Silvex Designs, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to lift the automatic stay to allow it to prosecute its lawsuit against Quebecor World Inc. and its affiliates, in order to recover from the Debtors' insurance carrier claims for damages, through trial or settlement. According to Beata Shapiro, Esq., at Wilson, Elser, Moskowitz, Edelman & Dicker LLP, in Stamford, Connecticut, on Aug. 29, 2006, Silvex retained Quebecor World Logistics, Inc., doing business as QW Express, to transport a consignment of 4,009 pounds of sterling silver jewelry from Silvex's office in New York to a trade show in Arizona. Silvex claims that 1,000 pounds of the goods, amounting to US$332,872, were missing upon their consignment in Arizona. The Debtors maintained an insurance policy with Navigators Ins. Co. through Navigators Management (UK) Ltd, which was effective at the time the goods were lost, and which policy affords coverage for Silvex's damages, Ms. Shapiro says. Silvex instituted an action in the U.S. District Court for the Southern District of New York on May 11, 2007, against QW Express and other parties involved in the shipment. About Quebecor World Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. 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. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related $600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Wants to Employ Three Real Estate Consultants ------------------------------------------------------------- Quebecor World Inc. and its affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to employ (a) Prime Locations, LLC, (b) George Comfort & Sons, Inc. and (c) The CORE Network for various real estate consulting services, nunc pro tunc to March 1, 2008. CORE is a non-profit national network of approximately 40 real estate firms and approximately 1,000 individual brokers and consultants. CORE is experienced in representing clients in numerous aspects of chapter 11 business operations and is well qualified to represent the Debtors in the Chapter 11 cases. CORE's national reach enables it to provide services to clients with real estate interests across the United States. Prime is affiliated with CORE's network of real estate firms and is a nationally recognized real estate consulting firm with extensive and specific experience in valuing portfolios, negotiating leases, effecting sales of assets in Chapter 11 and Chapter 7 cases, reduction of landlord claims and expert testimony. Comfort is a national real estate firm, with extensive knowledge of the Debtors' real estate portfolio and vast experience in maximizing value and minimizing liabilities related to leased and owned properties. Under Work Authorization #1, the RE Consultants will prepare a Real Market Valuation report setting forth the market rent or market value for 96 sites identified by the Debtors. The Valuation Services will include, as appropriate: (a) review of all applicable leases, lease summaries, charts, deeds, title documents and related documents provided by the Debtors; (b) communications with real estate professionals and retail operators knowledgeable with respect to the locations of the Debtors' sites; (c) determination of the market value and market rent for each site; and (d) determination of the marketability, financing and disposition potential of the sites based on an analysis of the market and documents provided by the Debtors. With respect to Work Authorization #2, the services to be provided by the RE Consultants relate to lease negotiations and modifications, and, to the extent advisable, arranging for sales of certain of the Debtors' leasehold and fee interests. The Restructuring Services will include: (i) re-negotiating certain of the Debtors' leases; (ii) selling certain leasehold interests and fee interests; and (iii) locating and negotiating leases for replacement locations for existing leases. The Debtors have determined that the joint retention of CORE, Prime and Comfort will enable them to undertake a restructuring of their real estate interests quickly and efficiently, and that access to more than one professional firm will increase the speed with which the Debtors can undertake an analysis of their real estate interests and begin to make decisions regarding restructuring or disposing of certain assets. According to Michael Canning, Esq., at Arnold & Porter LLP, in New York, the need for multiple real estate advisors arises in large part from the fact that the Debtors have a large number of geographically dispersed real estate holdings, and the Debtors believe that there is little risk of duplication of effort by CORE, Prime and Comfort. Nevertheless, the Debtors are mindful of concerns with respect to duplication of efforts when multiple professionals are retained. In this regard, the Debtors, CORE, Prime and Comfort have agreed to communicate regularly and work closely to ensure that no such duplication occurs and, in all events, the Debtors will only be responsible for one fee in connection with each transaction. The Debtors and the RE Consultants have negotiated separate compensation arrangements for each of the Valuation Services and the Restructuring Services. For the Valuation Services, the RE Consultants will charge the Debtors $250 for each of the 96 locations to be the subject of the Real Market Valuation report, for a total fee of $24,000. This fee will be a comprehensive fee for the Valuation Services, with the exception of any travel expenses incurred by the RE Consultants on account of visits to the Debtors at their offices or elsewhere at the Debtors' request. As compensation for the Restructuring Services, the RE Consultants will receive fees based on value realized from successful transactions: (a) 5% of the first US$200,000 in savings realized from each lease renegotiation and 4% of any savings in excess of US$200,000 realized from the lease renegotiation; (b) 5% of the first US$200,000 in cash proceeds realized from the sale of a leasehold interest and 4% of any cash proceeds in excess of US$200,000 realized from the sale of the leasehold interest; (c) 5% of the first US$200,000 of gross cash proceeds realized from the sale of a fee interest and 4% of any gross cash proceeds in excess of US$200,000 realized from the sale of the fee interest; and (d) a flat fee of US$2,500 if the RE Consultants are successful in arranging, at the express request, and to the satisfaction of, the Debtors, a transaction where the additional value is unquantifiable, such as an option to purchase, extend or terminate a lease. The RE Consultants will not be entitled to any fee in the event that the Debtors reject a leasehold interest or do not realize savings or cash proceeds. The Debtors believe that the fee structure will be beneficial to their estates because the ability of the RE Consultants to earn a fee of 4% on all savings realized above US$200,000 creates a strong incentive for the RE Consultants' professionals to maximize the Debtors' savings in each restructuring or asset disposition. With respect to both the Valuation Services and the Restructuring Services, the fees are aggregate fees payable to the RE Consultants collectively. In no event will multiple fees be payable to more than one of the RE Consultants on account of a single valuation or restructuring transaction. The parties do not presently contemplate that the RE Consultants' professionals will be compensated on an hourly basis, other than in the event it becomes necessary for one of the RE Consultants' professionals to provide expert testimony in connection with the RE Consultants' services to the Debtors. To the extent that hourly compensation is applicable, the RE Consultants will be entitled to receive compensation from the Debtors' bankruptcy estates at these rates: Level Rate Per Hour ----- ------------- Managing Directors US$400 to 450 Directors US$300 to 350 Associates US$100 to 250 According to Mr. Canning, CORE and Dana Pike, senior vice president of Comfort, have both performed services for the Debtors in the past. Mr. Pike holds a longstanding relationship with the Debtors and is familiar with their business operations and real estate interests, Mr. Canning adds. Mr. Canning assures the Court that none of the RE Consultants hold any claim against the Debtors on account of any unpaid fees or unreimbursed expenses. Prime, Comfort and CORE are each a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code as modified by Section 1107(b), Mr. Canning asserts. The RE Consultants do not hold or represent any interest adverse to the estate that would impair their ability to objectively perform professional services for the Debtors in accordance with Section 327, Mr. Canning says. About Quebecor World Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. 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. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related $600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. VIMAL OIL: Low Profit Margins Cue CRISIL's BB+ Ratings ------------------------------------------------------ CRISIL has assigned bank loan ratings of ‘BB+/Stable/P4’ to Vimal Oil and Foods Limited’s bank facilities: INR19 Million Term Loans BB+/Stable INR285 Million Cash Credit Limits BB+/Stable INR500 Million Letter of Credit Limits P4 The ratings reflect the company's weak financial risk profile, low profit margins due to the commoditised nature of the edible oil refining business, and high working capital requirements. These weaknesses are partly mitigated by VOFL’s strategically located facility and healthy growth in revenues. The consolidated financial risk profile of VOFL and Gujarat Spices and Oilseeds Growers Co-operative Union’s is weak, marked by low profitability and net worth, high working capital requirements and gearing, and below average debt protection indicators. The net profitability has been around 1 per cent since 2003-04 (refers to financial year, April 1 to March 31), resulting in a low net worth of Rs.286 million as on March 31, 2007. Short term borrowings (used to fund working capital levels) have been increasing in line with higher business levels, resulting in adverse gearing levels of nearly 4 times as on March 31, 2007. The net cash accruals to total debt and interest coverage ratios were below average at around 0.11 times and 2.21 times, respectively in 2006-07. In addition, VOFL’s financial flexibility is constrained as reflected in its limited ability to raise resources at competitive rates. Also, the company’s edible oil business is exposed to availability (inputs), regulatory and pricing risks. The company’s manufacturing facility is strategically located in Mehsana (Gujarat), which helps it lower transportation cost of inputs and distribution cost of end products. VOFL-GSOGCU’s combined revenues have registered a healthy compounded annual growth of 35 per cent in the 2004-05 to 2006-07 period. With overall demand for branded edible oils expected to continue to grow at 5-6 per cent per annum and increased initiatives by VOFL to leverage its ‘Vimal’ brand in the northern states of India, CRISIL expects healthy growth in revenues to continue over the medium term. Outlook: Stable VOFL’s business growth is likely to remain healthy, although the operating margins will remain weak over the medium term. The consolidated financial profile is expected to remain weak over the medium term, though gearing levels will witness a moderate improvement to about 1.5 times due to better accruals and an equity infusion in 2007-08. The outlook may be revised to ‘Negative’ in case of substantial deterioration in the overall credit profile. Conversely, the outlook may be revised to ‘Positive’ in case of substantial improvement in the credit profile. About the Company Incorporated in 1993, Vimal Oil and Foods Limited manufactures edible oils from cottonseed, groundnut, soya, and mustard, in addition to exporting de-oiled cake. The company’s products are sold under the “Vimal” brand. In 2006-07, the VOFL-GSOGCU combine’s consolidated profit after tax stood at INR92.45 million (INR40.22 million in the previous year) on net sales of INR8.60 billion (INR7.22 billion). For arriving at the rating, CRISIL has combined the financials of VOFL and GSOGCU owing to the extension of guarantees (aggregating INR1.5 billion) by VOFL for loans taken by GSOGCU. ================= I N D O N E S I A ================= BANK NEGARA: Posts IDR657.8 Bil. Net Loss in Fourth-Quarter 2007 ---------------------------------------------------------------- PT Bank Negara Indonesia (Persero) Tbk posted a IDR657.8 billion net loss in the fourth quarter 2007, from a IDR520.99 billion net profit a year ago, due to a hit by larger provisioning against bad loans, Reuters reports. BNI President Director Gatot Suwondo told the news agency that the bank was tightening its provisioning as a precaution. "In the past three years, loan provisions were between 50-55%. In 2007, we lifted them to 72% as we anticipate more vulnerable global economic conditions ahead," he added, the report related. "Analysts polled by Reuters Estimates had forecast a full year net profit of IDR2.01 trillion, implying a fourth-quarter forecast of a IDR458.9 billion profit," Reuters reports. About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 25, 2008, Fitch Ratings took these rating actions on PT Bank Negara Indonesia (Persero) Tbk: -- LTFC/LTLC IDRs upgraded to 'BB' from 'BB-'; Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Support Rating Floor upgraded to 'BB-' from 'B+'; -- Individual rating affirmed at 'D'; -- ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA-(idn)'; -- FC subordinated debt upgraded to 'BB-' from 'B+'. On Oct. 19, 2007, Moody's Investors Service raised PT Bank Negara Indonesia (Persero) Tbk.'s foreign currency long-term debt rating to Ba2 from Ba3 and foreign currency long-term deposit rating to B1 from B2. On April 20, 2007, Standard & Poor's Ratings Services raised Bank Negara's long-term counterparty credit ratings to 'BB-' from 'B+'. BANK PANIN: To Sell IDR1.5 Trillion Bonds This Month ---------------------------------------------------- PT Bank Pan Indonesia Tbk will sell IDR1.5 trillion of 10-year bonds this month to expand lending, Bloomberg News reports. According to the report, the bank will offer a fixed 11.6% coupon on the bonds in the first five years. The bonds, the report relates, will give higher coupon starting in the sixth year, and after the fifth year, Panin will have the right to buy back the bonds. Wahyudi Soeriaatmadja of Bloomberg writes that PT Indo Premier Securities, PT Bahana Securities and PT Evergreen Capital are arranging the sale. About Bank Panin Headquartered in Jakarta, Indonesia, PT Bank Pan Indonesia Tbk's -- http://www.panin.co.id-- products and services include individual, which comprises saving products, consumer credit products, electronic products and service products corporate, and corporate, which consist of saving products, financial service products, loan credit, export and import products, electronic products and service products. The bank has investment in several public listed companies, including PT Clipan Finance Indonesia Tbk, PT Asuransi Multi Artha Guna Tbk and PT Panin Sekuritas Tbk. * * * According to a Troubled Company Reporter-Asia Pacific report on Aug. 2, 2007, Moody's Investors Service placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Pan Indonesia Tbk on review for possible upgrade. The Not-Prime short-term deposit and bank financial strength ratings (BFSR) of the bank are unaffected. The detailed ratings are: * B2 foreign currency long-term deposit rating was placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected -- the former two ratings carry a stable outlook, while the BFSR has a positive outlook. BANK PANIN: 2007 Net Profit Up 30.7% to IDR954.91 Billion --------------------------------------------------------- PT Bank Panin Tbk's 2007 net profit increased 30.7% to IDR954.91 billion from IDR730.28 billion in 2006, driven by strong growth in net interest income, Thomson Financial News reports. According to the report, the bank's interest income rose 14% to IDR4.46 trillion while interest charges dropped 9.9% to IDR2.08 trillion, which resulted to an increase in interest income to IDR2.38 trillion from IDR1.60 trillion. Fee income, however, fell 31% to IDR536.84 billion, the report notes. Moreover, the bank's net non-performing loans declined to 1.8% of total loans from 2.6%, while loans as a proportion of deposits increased to 92.4% from 80.5%, Thomson Financial News adds. About Bank Panin Headquartered in Jakarta, Indonesia, PT Bank Pan Indonesia Tbk's -- http://www.panin.co.id-- products and services include individual, which comprises saving products, consumer credit products, electronic products and service products corporate, and corporate, which consist of saving products, financial service products, loan credit, export and import products, electronic products and service products. The bank has investment in several public listed companies, including PT Clipan Finance Indonesia Tbk, PT Asuransi Multi Artha Guna Tbk and PT Panin Sekuritas Tbk. * * * According to a