T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, April 8, 2008, Vol. 11, No. 69 Headlines A U S T R A L I A ABC LEARNING: Closer to Selling U.S. Assets, Report Says ASCOT EQUIPMENT: Declares Final Dividend BALDONAR PTY: Declares Final Dividend BENDIGO & ADELAIDE: Moody's Rates Bank Financial Strength at C CHRYSLER LLC: Agrees to Extend Plastech Supply Deal to April 30 CO-ORD TRANSPORT: Declares Final Dividend CONSTELLATION: Posts US$610MM Net Loss in Year Ended Feb. 29 FORTESCUE METALS: Transports 1st Ore Train Load From Pilbara JAMES HARDIE: Trial Date Delayed Due to ASIC's Late Filing OPES PRIME: Creditors May Lose Up to Half of Investment PROTEL COMMUNICATIONS: Members Receive Wind-Up Report REDLEDGE PTY: Commences Liquidation Proceedings SCA 246D PTY: Members' Final Meeting Set for April 16 SCW040 PTY: Liquidator to Present Wind-Up Report on April 16 SCW357 PTY: Members to Hear Wind-Up Report on April 16 SRP500 PTY: Members to Receive Wind-Up Report on April 16 SUNSTATE PIPELINES: Placed Under Voluntary Liquidation WESTPOINT GROUP: Investor Wins Case Against Adviser Brannelly C H I N A & H O N G K O N G & T A I W A N AGRICULTURAL BANK: Strengthens Partnership With Diebold BEIJING SHOUGANG: Inks Contracts Worth US$11 Mil. With Liaoning BRUTUS FASHIONS: Commences Liquidation Proceedings CHINA EASTERN: Regulator Investigating Pilots' Protest CHINA HERITAGE: Members' Meeting Set for May 7 CHINASAILS DEV'T: Creditors' Proofs of Debt Due April 30 CHINA TOP: Commences Liquidation Proceedings COMFORT DEVELOPMENT: Creditors' Proofs of Debt Due April 11 COTTEEN INVESTMENT: Creditors' Proofs of Debt Due April 21 EASTERN HARBOUR: Commences Liquidation Proceedings FORDKING DEVELOPMENT: Commences Liquidation Proceedings HUA XIA: Shareholders Approve Private Share Placement Plan JABIL CIRCUIT: S&P Downgrades Senior Unsecured Ratings to 'BB+' MORNING SIGNAL: Members' Meeting Set for April 30 NETTEST (HONG KONG): Liquidator Quits Post PANDOL INTERNATIONAL: Creditors' Proofs of Debt Due May 5 PETROLEOS DE VENEZUELA: May Fail to Maintain Oil Shipments PETROLEOS DE VENEZUELA: Production Costs Increase 21.7% in 2007 PRIME SKILL: Members' Meeting Set for April 30 PROMITEX LIMITED: Commences Liquidation Proceedings ROYAL CARIBBEAN: Fleet Expansion Prompts S&P's Rating Cut to BB+ THE SHOP OF GREEN AND FOUND: Liquidator Quits Post TRANSWORLD PRODUCE: Creditors' Proofs of Debt Due May 5 I N D I A ANDREW YULE: Expects to Complete Rehabilitation by FY2008-2009 ANDREW YULE: Books INR132 Mil. Net Loss in Qtr. Ended Dec. 31 AXIS BANK: Board to Consider Annual and Q4 Results on April 21 QUEBECOR WORLD: Loses Catalog Deal; May Lose Parent Business QUEBECOR: 517,184 Preferred Shares for Conversion on June 1 TATA MOTORS: S&P Lowers Corporate Credit Ratings to 'BB' TATA MOTORS: Hitachi JV to Acquire 60% of Comoplesa Lebrero I N D O N E S I A ALCATEL-LUCENT: Moody's Holds Ratings; Outlook Revised to Neg. BANK PERMATA: Partners With Astra Credit to Expand Services EXCELCOMINDO PRATAMA: To Delay or Cancel Share Offer INDAH KIAT: To Increase Annual Pulp Production by 600,000 Tons INDAH KIAT: Sees 10% to 20% Increase in 2008 Revenue LIPPO KARAWACI: To Start US$1.2 Billion Jakarta Project LIPPO KARAWACI: Won't Pay FY-2007 Dividend MEDCO ENERGI: 2007 Net Profit Drops 82.9% to US$6.5 Million TELKOM INDONESIA: Opens Up Domestic Long Distance Call Service J A P A N DELPHI CORP: Investors Refuse to Participate in Plan Closing JAPAN AIRLINES: Merrill Lynch Cuts Stock Ratings to "Sell" MITSUBISHI MOTORS: U.S. March Vehicle Sales Decrease by 7.7% K O R E A DURA AUTOMOTIVE: Court Approves Revised Disclosure Statement DURA AUTOMOTIVE: Court Sets Plan Confirmation Hearing for May 13 HYUNDAI MOTOR: Business Conditions for U.S. Market "Difficult" M A L A Y S I A GOLD BRIDGE: Auditor Ernst & Young Raises Going Concern Doubt MEGAN MEDIA: Two Directors Resign From Posts PROTON HOLDINGS: Mohammad Zainal Bin Shaari Resigns TAP RESOURCES: Inks MOU to Acquire Lianbang Ventures TENGGARA OIL: Court Grants Restraining Order Until July 1 N E W Z E A L A N D AHCHAIL MULTICULTURAL: Names Brown and Rodewald as Liquidators CGC ENGINEERING: Court to Hear Wind-Up Petition on April 9 HIGHCLERE DEVELOPMENTS: Taps Brown and Rodewald as Liquidators ILMINSTER LIMITED: Creditors Receive Wind-Up Report J.C.M DEVELOPMENTS: Fixes April 17 as Last Day to File Claims JOHN PLOWMAN: Commences Liquidation Proceedings KINGSLEY LIMITED: Liquidator Presents Wind-Up Report LANARK LIMITED: Creditors Receive Wind-Up Report LTS LIMITED: Liquidator Presents Wind-Up Report PENDALE LIMITED: Creditors Receive Wind-Up Report STROWAN LIMITED: Liquidator Gives Wind-Up Report SWADE GENERAL: Fixes April 18 as Last Day to File Claims P H I L I P P I N E S CHIQUITA BRANDS: Board Appoints William H. Camp as Director CHIQUITA: Completes Refinancing With US$350MM Credit Facility IPVG CORP: Turns Around With Consolidated Net Income of PHP159MM S I N G A P O R E COMCREATION PTE: Court to Hear Wind-Up Petition on April 18 GOH HUP HENG: Creditors' Proofs of Debt Due by April 18 GUAN GUAN: To Pay Preferential Dividend on April 16 REGIONAL (FAR EAST): Pays Preferential Dividend RINOL ASIA: Creditors' Meeting Set for Today X-RITE: Pact Violations Cue S&P's Negative Watch on B+ Rating * BOND PRICING: For the Week 07 April to 11 April 2008 - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Closer to Selling U.S. Assets, Report Says -------------------------------------------------------- ABC Learning Centres Ltd. may finalize a deal with Morgan Stanley on the sale of its U.S. assets by the end of this year, a person familiar with the situation told Dow Jones Newswires, relates The Australian. Dow Jones quotes the source as saying, "They're hopeful of finalizing things in a matter of days rather than weeks." According to the report, Morgan Stanley's exclusive due diligence period expired two weeks ago but talks between the two parties continue. ABC, notes The Australian, signed an agreement with Morgan Stanley on March 5 to sell a 60% stake in its U.S. business to raise about AU$750 million to reduce debt. About ABC Learning A.B.C. Learning Centres Limited provides childcare services and education. The company operates in Australia, New Zealand, the United States and the United Kingdom. The company's subsidiaries include A.B.C. Developmental Learning Centres Pty Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier Early Learning Centres Pty Ltd, A.B.C. Developmental Learning Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centres Australia Ltd. On September 25, 2006, the company acquired Hutchison Child Care Services Ltd. On September 7, 2006, it acquired The Children's Courtyard LLP. On December 18, 2006, it acquired Busy Bees Group Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. As reported by the Troubled Company Reporter-Asia Pacific, the company's Sydney trading on Feb. 26, 2008, plunged 43% after a slump in earnings raised concerns it may struggle to repay debt. The drop to AU$2.14 triggered margin calls on stakes held by some directors. Consequently, stock trading was halted as the company entered talks on "indications of interest" for parts of its business. More than 96% of the remaining 21.9 million ABC Learning shares owned by directors, equivalent to 4.6% of stock outstanding, are held in margin lending arrangements that may result in forced sales. ASCOT EQUIPMENT: Declares Final Dividend ---------------------------------------- Ascot Equipment Pty. Ltd., which is in liquidation, declared its final dividend on April 3, 2008. Only creditors who were able to file their proofs of debt by April 2, 2008, were included in the company's dividend distribution. The company's liquidator is: Anthony Stevens Smith Ernst & Young 121 King William Street, Level 12 Adelaide, South Australia 5000 Australia Telephone:(08) 8417 1600 About Ascot Equipment Ascot Equipment Pty. Ltd. is in the business of local trucking, without storage. The company is located at Shepparton, in Victoria, Australia. BALDONAR PTY: Declares Final Dividend ------------------------------------- Baldonar Pty. Ltd., which is in liquidation, declared its final dividend on April 3, 2008. Only creditors who were able to file their proofs of debt by April 2, 2008, were included in the company's dividend distribution. The company's liquidator is: Anthony Stevens Smith Ernst & Young 121 King William Street, Level 12 Adelaide, South Australia 5000 Australia Telephone:(08) 8417 1600 About Baldonar Pty. Baldonar Pty. Ltd. is an operator of non-residential buildings. The company is located at Mount Gambier, in South Australia, Australia. BENDIGO & ADELAIDE: Moody's Rates Bank Financial Strength at C -------------------------------------------------------------- Moody's Investors Service has assigned A2/Prime-1 deposit and debt ratings to Bendigo and Adelaide Bank Limited, and a bank financial strength rating of C. The outlook for all the ratings is stable. "The ratings reflect the new bank's diversified business profile and stable retail franchise, which includes an important retail deposit base," says Marina Ip, a Moody's Analyst, "However, it is constrained by an increased exposure to the wholesale markets through its consolidated entity Adelaide Bank." Bendigo and Adelaide Bank Limited is the result of the merger on November 30, 2007, between two regional banks -- Bendigo Bank Limited and Adelaide Bank Limited. The merger was effected through a scheme of arrangement, whereby Adelaide Bank shares were exchanged for Bendigo Bank shares. However, Adelaide Bank will remain a wholly owned subsidiary of Bendigo Bank until a "transfer of business" is completed. As such, the two banks remain separate trading entities with their own Authorized Deposit-Taking Institution banking licences. "Compared with their stand-alone pre-merger characteristics, the combined Bendigo and Adelaide Bank Limited demonstrates greater geographic and product diversification," says Ip. "However, challenges are also evident, including that of managing a substantially higher level of wholesale funding on Bendigo Bank's historically retail-funded balance sheet due to the consolidation of Adelaide's debt stock," says Ip. Bendigo and Adelaide Bank Limited's long-term global local currency deposit and debt ratings of A2 are based on the moderate probability of systemic support, in case of need. This results in a 1-notch lift above the A3 baseline credit assessment, which encapsulates the bank's stand-alone credit profile. The short-term GLC deposit rating is Prime-1, and is also lifted one notch by systemic support considerations above its baseline credit assessment of Prime-2. "In terms of the positives, the maintenance of separate brands will help with customer retention, while the new entity will now also possess a slightly larger branch network, helping it further source retail deposits," says Ip. The new bank's strong retail division -- inherited from Bendigo Bank -- will focus on attracting retail deposits, which are particularly valuable in the current period of wholesale market turmoil. Its retail strategy will be driven through its expanded branch network. As a newly combined regional bank, it should also benefit from its larger size in competing against its peers. Moreover, the merger is expected to bring cost efficiencies in the medium term, with the chance for cross-selling opportunities to an enlarged customer base. "Moreover, Adelaide's main wholesale business lines will face slower growth due to rising funding costs, while margin lending volumes are likely to be affected by the dramatically falling share market of recent months," says Ip. "An additional factor is the rapid relative decline in the importance of its residential mortgage manufacturing business due to margin pressures." Moody's has also downgraded to C- from C the BFSR of Adelaide Bank -- as indicated, still a separate entity -- and which translates into a baseline credit assessment of Baa1 / Prime-2. The outlook is stable. The BFSR was downgraded to reflect the still separate credit profiles of Adelaide Bank and its parent: the two banks have not merged into one trading entity with a single ADI banking licence within the timeframe Moody's initially envisaged. Adelaide's long-term global local currency deposit rating remains unchanged at A2 and is based on the very high level of support from its parent Bendigo and Adelaide Bank Limited and the low probability of systemic support (Moody's joint default analysis categorization), in case of need, which results in a 2- notch lift from the Baa1 baseline credit assessment. The short- term GLC deposit rating is Prime-1, which is a one-notch lift from the baseline credit assessment of Prime-2. Bendigo and Adelaide Bank Limited, is headquartered in Bendigo, Victoria, and is the result of a merger between two of Australia's regional banks -- Bendigo and Adelaide. It reported assets of AU$49.4 billion (approximately US$43.2 billion) at December 31, 2007. CHRYSLER LLC: Agrees to Extend Plastech Supply Deal to April 30 --------------------------------------------------------------- Plastech Engineered Products Inc., its debtor-affiliates, and Chrysler LLC have agreed to extend their supply agreement until April 30, the Associated Press reports, citing a Chrysler representative's statement. This is the fifth interim supply agreement wherein Plastech will supply parts for Chrysler while the companies continue to squabble over their disputed tooling equipment before the U.S. Bankruptcy Court for the Eastern District of Michigan. Based in Dearborn, Michigan, Plastech Engineered Products, Inc. --http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CO-ORD TRANSPORT: Declares Final Dividend ----------------------------------------- Co-Ord Transport Pty. Ltd., which is in liquidation, declared its final dividend on April 3, 2008. Only creditors who were able to file their proofs of debt by April 2, 2008, were included in the company's dividend distribution. The company's liquidator is: Anthony Stevens Smith Ernst & Young 121 King William Street, Level 12 Adelaide, South Australia 5000 Australia Telephone:(08) 8417 1600 About Co-Ord Transport Co-Ord Transport Pty. Ltd. is involved with local trucking without storage. The company is located at Alice Springs, in NT, Australia. CONSTELLATION: Posts US$610MM Net Loss in Year Ended Feb. 29 ------------------------------------------------------------ Constellation Brands Inc. incurred a net loss of US$610 million for the fiscal year ended Feb. 29, 2008, compared to net income of US$332 million for the prior year. The net loss was driven by an estimated US$822 million of impairment charges primarily related to goodwill and intangible assets associated with the company's Australia and U.K. businesses and a US$52 million deferred tax asset valuation allowance. "These are non-cash, non-recurring charges to earnings and do not impact the company's free cash flow, debt covenants or future operations," said Robert Ryder, Constellation Brands chief financial officer. "For fiscal 2008, we achieved our strategic initiatives and exceeded our key financial goals," stated Robert Sands, Constellation Brands president and chief executive officer. "These include the premiumization of brand portfolios, including the acquisition of SVEDKA Vodka and the Fortune Brands U.S. premium wine portfolio and the sale of the Almaden and Inglenook value wine brands, successful implementation of the Crown Imports transition, reduction of U.S. distributor wine inventory and creation of a strategic joint venture for the company's U.K. wholesale business. "We exceeded our comparable earnings per share estimate for the year and generated record free cash flow of US$376 million, which also exceeded our forecast," added Mr. Sands. "I am confident in our ability to continue to execute our strategy, profitably grow our business and generate strong cash flow." Fiscal 2008 Net Sales Commentary The reported consolidated net sales decrease of 28% primarily reflects the impact of reporting the Crown Imports and Matthew Clark wholesale business joint ventures under the equity method and U.S. distributor wine inventory reduction, partially offset by the benefits of the Vincor, SVEDKA and Fortune Brands U.S. premium wine business acquisitions and favorable foreign currency. Organic net sales increased 1% on a constant currency basis. Branded wine net sales decreased 2% on an organic constant currency basis. For North America, branded wine net sales decreased 3% on an organic constant currency basis, reflecting solid growth in Canada, which was more than offset by the company's initiative to reduce U.S. wine distributor inventory levels during the first half of fiscal 2008. "The North American wine market remains healthy, with consumers continuing the trend of trading up to premium wines such as Clos du Bois and Wild Horse, which we added to our leading premium portfolio that includes consumer favorites such as Simi, Ravenswood, Blackstone, Kim Crawford, and Toasted Head in the U.S., and Jackson-Triggs and Inniskillin in Canada," explained Mr. Sands. "These brands all delivered positive sales and marketplace growth for the year." Organic net sales for branded wine in Europe increased 4% on a constant currency basis, primarily due to higher sales of popular priced wine in mainland Europe and a slight increase in net sales for the U.K. On a constant currency basis, net sales for Australia/New Zealand branded wine decreased 2%. Total spirits net sales increased 26%, primarily due to the March 2007 acquisition of SVEDKA and 9% growth in organic net sales reflecting higher average selling prices and an increase in production services. "SVEDKA continues delivering phenomenal sales performance and remains the fastest growing major imported premium vodka brand in the U.S.," said Mr. Sands. "We are also very pleased with the marketplace growth generated by other premium spirits in our portfolio, including Effen Vodka, the 99 Schnapps line, Ridgemont Reserve 1792 bourbon and Black Velvet Canadian Whisky." The decrease in comparable operating income and the increase in equity earnings for fiscal 2008 were primarily due to the impact of reporting US$255 million of equity earnings from the Crown Imports joint venture under the equity method for the entire 12 months in fiscal 2008, compared to US$39 million in equity earnings for the two months of Crown Imports operations in fiscal 2007. "The U.K. is one of the world's largest import wine markets and wine consumption trends remain robust, while Australia is one of the largest and most progressive producers and exporters of high quality New World Wines," stated Mr. Sands. "We believe in the long-term value of both of these businesses, and are confident we are taking the right measures to improve operating efficiencies and our competitive position in these strategically important markets. We plan to improve operating results in fiscal 2009 and beyond." The company generated record free cash flow of $376 million versus US$121 million in the prior year. The increase in free cash flow was primarily driven by reduced working capital investment, including reduced tax payments, and lower capital spending. The company expects the strong free cash flow generation to continue and is targeting free cash flow in the range of US$310 million to US$340 million for fiscal 2009. "Fiscal 2008 demonstrated our increased focus on free cash flow management and we expect another strong year of cash generation in fiscal 2009," said Mr. Ryder. Fourth Quarter Fiscal 2008 Net Sales Commentary For the fourth quarter ended Feb. 29, 2008, the company incurred a net loss of US$831.9 million on net sales of US$884.4 million, as compared with a net income of US$70.2 million on net sales of US$1.1 billion for the fourth quarter ended Feb. 28, 2007. The reported consolidated net sales decrease of 23% primarily reflects the impact of reporting the Crown Imports and Matthew Clark wholesale business joint ventures under the equity method. The impact of the joint venture reporting was partially offset by the benefits of favorable foreign currency and the SVEDKA and Fortune Brands U.S. wine business acquisitions. Branded wine net sales decreased 2% on an organic constant currency basis. For North America, branded wine net sales decreased 5% on an organic constant currency basis, as the completion of the reduction in U.S. wine distributor inventories earlier in the year resulted in a timing shift for the company's U.S. wine sales. Under new shipment patterns, and after the peak holiday selling period in the third quarter, the company returned to the lower distributor inventory levels achieved at the end of the second quarter, which negatively impacted growth in the fourth quarter. Branded wine organic net sales on a constant currency basis for Europe increased 4% and Australia/New Zealand by 8%. Total spirits net sales increased 31% for the quarter, primarily due to the SVEDKA acquisition and 10% growth in organic net sales. Outlook The table below sets forth management's current diluted earnings per share expectations for fiscal year 2009 compared to fiscal year 2008 actual results, both on a reported basis and a comparable basis. "The expected improvement in comparable earnings for fiscal 2009 includes solid underlying growth of our North America branded wine business and the Crown Imports joint venture, the benefit of completing the reduction in U.S. distributor inventories during fiscal 2008 and anticipated performance improvement for the company's U.K. and Australia branded wine businesses," said Mr. Sands. As of Feb. 29, 2008, the company's balance sheet showed total assets of $10.0 billion, total liabilities of $7.2 billion, and stockholders' equity of $2.8 billion. About Constellation Brands Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE:STZ) -- http://www.cbrands.com/-- has more than 250 brands in its portfolio, sales in approximately 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. The company has a market presence in the U.K., Australia, Canada, New Zealand, and Mexico. Barton Brands Ltd. is the spirits division of Constellation Brands Inc. is a producer, importer and exporter of a wide range of spirits products, including brands such as Black Velvet Canadian Whisky, Ridgemont Reserve 1792 bourbon, and Effen vodka. * * * As reported in the Troubled Company Reporter on Dec. 3, 2007, Fitch Ratings assigned a 'BB-' rating to a note registered by Constellation Brands Inc. to fund the purchase price of Beam Wine Estates Inc., a subsidiary of Fortune Brands Inc: $500 million 8.375% senior unsecured note due Dec. 15, 2014. The rating outlook is negative. FORTESCUE METALS: Transports 1st Ore Train Load From Pilbara ------------------------------------------------------------ The rolling of Fortescue Metal Group's first train load of iron out of the Pilbara and its automated unloading in the now commissioning new port, named the Fortescue Herb Elliott Port, has made Pilbara and Australian resources industry history. The event marks the completion of Fortescue's first major stage of wet commissioning of its new infrastructure and iron ore production facilities. It included a loaded Fortescue iron ore train leaving the company's Hunter Siding, near Cloudbreak, travelling to the Fortescue Herb Elliott Port. Fortescue Chief Executive Officer Andrew Forrest said the loading of ore at Hunter Siding was highly significant. It is the planned access point for other users as an Open Access Siding (185 kilometers from the port), and the point where the proposed spur line out to Fortescue's large Solomon deposit will branch off its main line. It coincided with the week that the connection of the entire rail track between Cloudbreak and the Port will be achieved. The train was fully and automatically unloaded then stacked into stockpile areas by the Port's new train unloading conveyor systems to the iron ore stacking circuits. Known as FOOT (first ore on train) FMG has now fully tested the integrity of Fortescue's railway, rolling stock, train unloading, conveyor and port iron ore stacker systems. Mr. Forrest said the event was a major breakthrough for the company, proving the capacity and capability of Fortescue to quickly design and implement large rail and port infrastructure facilities in the Pilbara. "This historic event represents the fulfilment of the dreams of few, that was then shared by the thousands who built it," Mr. Forrest said. "It will change the face of the Pilbara and the Australian economy forever. "Through this event, we as a nation take a step to a larger more competitive economy and exporter. "This is the first and vital step to commissioning the entire operation. It is the major step towards achieving First Ore on Ship (FOOS), production ramp-up and overall project completion. "It will be followed by prompt expansion as our product is in very strong demand. "The operational commencement of FMG's rail and port heralds the opening up of Australia's, and one of the world's, richest mineral provinces and is a milestone achievement for the Pilbara and Australia. "Today's achievement will multiply far beyond Fortescue and other new Pilbara resource companies, leaving behind the previous stranglehold of Rio Tinto and BHP Billiton. The event will herald a new confidence in the permanence and future of the Pilbara. "In so doing it will assist the growth of the Chinese, Indian and broader Asian regions' economies through their critical steel industries." Mr. Forrest congratulated the designers, engineers, suppliers and thousands of people in the construction workforce who were critical teammates in building the heaviest haul railway line and port in the world. First Ore On Ship remains set for mid-May, once commissioning of the port is completed. The Alannah Mactiernan Express The first Fortescue train to carry ore was named the Alannah MacTiernan Express, after the Western Australian Planning and Infrastructure Minister, Alannah MacTiernan. Minister MacTiernan launched the rail construction just over one year ago, on February 8, 2007. Exactly one year before that on February 8, 2006, Minister MacTiernan also launched the construction of the Port. It was the construction of the Port and the Fortescue/Western Australian Government State Agreement that heralded the largest Greenfield bond project financing in history, the financing that underpinned the project. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past three fiscal years. Net loss for the year ended June 30, 2007, was AU$68.43 million, while net losses for FY2006 was AU$2.15 million and for FY2005 was AU$4.52 million. JAMES HARDIE: Trial Date Delayed Due to ASIC's Late Filing ---------------------------------------------------------- Ean Higgins of The Australian reports that Justice Peter Young in the New South Wales Supreme Court granted procedural extensions relating to the trial of 10 former directors and executives of James Hardie Industries Ltd. because the Australian Securities & Investments Commission has not finished preparing its evidence. Mr. Higgins relates that the ASIC was supposed to file its evidence, witness statements and other documentation early last month. According to the report, the next procedural hearing is set down for April 24. The ASIC brought actions against: * Former chief executive officer Peter Macdonald; * Former general counsel Peter Shafron; * Former chief financial officer Phillip Morley; * Chairman Meredith Hellicar; * Director Michael Brown; * Director Michael Gillfillan; * Board Member Peter Willcox; * Board Member Martin Koffel; * Board Member Greg Terry; and * Dan O'Brien. The Australian relates that the ASIC claims statements prepared by executives and approved by directors in 2001 were false when James Hardie said that an independent compensation trust it established to cover future asbestos disease claims would be "fully funded" with AU$293 million. Former James Hardie officers have denied any wrongdoing, states The Australian. Justice Young has named Ian Gzell as his preferred trial judge. If the parties finds his nominee unacceptable, Justice Young said he might get a judge from New Zealand, relates The Australian. Justice Young selected Justice Gzell partly because he had "computer skills," the report relates. According to The Australian, the choice of judge has proved problematic because many senior lawyers from a variety of firms will be called as witnesses, as will prominent individuals with whom many judges have had connections. Justice Young acknowledged that Justice Gzell did know one of the key players -- Sir Llew Edwards, chairman of the asbestos compensation trust, the Medical Research & Compensation Foundation, adds The Australian. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/ -- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. The company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. As reported by Asbestos Litigation on Feb. 16, 2007, the Australian Securities & Investments Commission has sued James Hardie Industries NV, claiming the Company misled investors over the cost of compensating people sickened by asbestos. The ASIC said that Chairman Meredith Hellicar, former Chief Executive Officer Peter MacDonald and eight other officials face bans from running a public company and fines of more than AU$200,000 or US$160,000. The suit centers on a Feb. 16, 2001, press release when the Company said a newly created AUD293 million fund was "sufficient" to compensate victims of asbestos poisoning. A government inquiry later found the fund would have run out of money in three years and the Company was forced to set up a new AU$1.6 billion compensation fund. OPES PRIME: Creditors May Lose Up to Half of Investment ------------------------------------------------------- Receivers of Opes Prime Group Ltd. says that unsecured creditors could lose up to half of their investment, Ben Sharples and James McCullough write for The Sunday Mail. The advice, reports The Sunday Mail, comes as the Opes Prime fallout continues to unsettle a fragile stock market and more clients seek legal action to prevent the sale of their shares. One of the receivers, Chris Campbell of Deloitte Corporate Reorganisation Group, told Sky News Business, "The unsecured creditors will be lucky to get all their money back, very lucky. Losing half their money -- that might be the case, but at this stage it is too early to call." The report relates that Mr. Campbell said the critical factor in working out how much would be returned to unsecured creditors was the money that could be recovered from the irregular accounts within Opes Prime Stockbroking, and a group of assets outside the stockbroking group. The Troubled Company Reporter-Asia Pacific reported on April 7, 2008 that receivers of Opes Prime discovered up to AU$400 million worth of unexpected assets through account irregularities in the main operation and in the books of the connected investment company, Hawkswood Investments. The Sunday Mail notes that these assets include property, loans against properties, motor vehicles, loans to other corporates and some hedge fund investments. Mr. Campbell is quoted by The Sunday Mail as saying, "We've been approached by a number of other parties that are indicating to us that they will be seeking injunctions. I think at the last count there was something between 26 and 30 legal firms coming at us on behalf of clients, that was across Australia so there is quite a bit of activity there." The Sunday Mail adds that the accounts of up to 1,200 unsecured Opes clients have been frozen. 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. PROTEL COMMUNICATIONS: Members Receive Wind-Up Report ----------------------------------------------------- Protel Communications International Pty. Ltd.'s estate liquidator met with the company's members on April 7, 2008, and provided them with property disposal and winding-up reports. The company's liquidator is: Craig Lehmann Farrow Brentnalls SA Chartered Accountants 255 Port Road Hindmarsh, South Australia 5007 Australia About Protel Communications Protel Communications International Pty. Ltd. provides communications services. The company is located at Doonan, in Queensland, Australia. REDLEDGE PTY: Commences Liquidation Proceedings ----------------------------------------------- Redledge Pty. Ltd.'s members agreed on Feb. 27, 2008, to voluntarily liquidate the company's business. The company appointed Christopher Michael Williamson and Kimberley Andrew Strickland to facilitate the sale of its assets. The liquidators can be reached at: Christopher Michael Williamson Kimberley Andrew Strickland c/o SimsPartners 40 St George's Terrace, Level 12 Perth, Western Australia 6000 Australia About Redledge Pty. Redledge Pty. Ltd. is a distributor of construction and mining machineries. The company is located at Boulder, in Western Australia, Australia. SCA 246D PTY: Members' Final Meeting Set for April 16 ----------------------------------------------------- R. A. Ferguson, SCA 246D Pty. Ltd.'s estate liquidator will meet with the company's members on April 16, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The company's liquidator is: R. A. Ferguson c/o Fergusons Chartered Accountants 115 Grenfell Street, Level 8 Adelaide, South Australia 5000 Australia About SCA 246D SCA 246D Pty. Ltd. is a distributor of industrial supplies. The company is located at Wetherill Park, in New South Wales, Australia. SCW040 PTY: Liquidator to Present Wind-Up Report on April 16 ------------------------------------------------------------ SCW040 Pty. Ltd.'s estate liquidator will meet with the company's members on April 16, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The company's liquidator is: R. A. Ferguson c/o Fergusons Chartered Accountants 115 Grenfell Street, Level 8 Adelaide, South Australia 5000 Australia About SCW040 Pty. SCW040 Pty. Ltd. is a distributor of wines, brandy, and brandy spirits. The company is located at Adelaide, in South Australia, Australia. SCW357 PTY: Members to Hear Wind-Up Report on April 16 ------------------------------------------------------ SCW357 Pty. Ltd.'s estate liquidator will meet with the company's members on April 16, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The company's liquidator is: R. A. Ferguson c/o Fergusons Chartered Accountants 115 Grenfell Street, Level 8 Adelaide, South Australia 5000 Australia About SCW357 Pty. SCW357 Pty. Ltd. operates liquor stores. The company is located at Adelaide, in South Australia, Australia. SRP500 PTY: Members to Receive Wind-Up Report on April 16 --------------------------------------------------------- SRP500 Pty. Ltd.'s estate liquidator will meet with the company's members on April 16, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The company's liquidator is: R. A. Ferguson c/o Fergusons Chartered Accountants 115 Grenfell Street, Level 8 Adelaide, South Australia 5000 Australia About SRP500 Pty. Located at Adelaide, in South Australia, Australia, SRP500 Pty. Ltd. is an investor relation company. SUNSTATE PIPELINES: Placed Under Voluntary Liquidation ------------------------------------------------------ Sunstate Pipelines Pty. Ltd.'s members agreed on Feb. 24, 2008, to voluntarily liquidate the company's business. The company has appointed M. C. Woolcock to facilitate the sale of its assets. The liquidator can be reached at: M. C. Woolcock Woolcock & Associates 6/61 Burnett Street Buderim, Queensland 4556 Australia About Sunstate Pipelines Sunstate Pipelines Pty. Ltd. is in the business of water, sewer, and utility lines. The company is located at Maroochydore, in Queensland, Australia. WESTPOINT GROUP: Investor Wins Case Against Adviser Brannelly ------------------------------------------------------------- The Queensland Court of Appeal dismissed an appeal by financial adviser Paul Brannelly on a decision by District Court Judge Michael Forde in August that favors investor James Delmenico, reports the Australian Associated Press. The report relates that in 2005, James Delmenico invested AU$100,000 in Bayshore Mezzanine. Bayshore (Port Melbourne Pty. Ltd.) is a Westpoint entity under external administration. According to the AAP, Mr. Brannelly wrote to Mr. Delmenico stating that one of the "highlights" of the investment was the guarantee provided by Westpoint. Administrators were appointed to Bayshore on December 6, 2005, and Mr. Delmenico was left out of pocket, notes the AAP. Mr. Delmenico took court action under the ASIC Act, claiming misleading or deceptive conduct by Brannelly Financial, and alternatively, negligence. Judge Forde ruled in favor of Mr. Delmenico for AU$114,736, together with costs of the action. According to the report, Mr. Brannelly appealed the decision, claiming Mr. Delmenico had acted, not on the advice or information of Brannelly Financial, but "upon an erroneous understanding of the structure of the investment for which he alone was responsible". His lawyers also argued it was not open for the judge to find negligence, states the AAP. The court dismissed Mr. Brannelly's appeal saying, "There can be no real doubt that the respondent (Mr. Delmenico) was misled by the appellants as to the structure of the investment and the security of the investment. The appeal should be dismissed," relates the AAP. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== AGRICULTURAL BANK: Strengthens Partnership With Diebold ------------------------------------------------------- With a solution powered by Diebold, Incorporated, customers of the Agricultural Bank of China can now interact effortlessly with their financial institution through an expanded self- service network that includes an additional 1,400 Opteva automated teller machines and Bulk Cash Recyclers. This relationship with Diebold provides Agricultural Bank a greater reach into its widespread customer base, which will benefit from the many new banking services and enhanced accessibility the Opteva 328 ATM offers. "Agricultural Bank of China's partnership with Diebold also furthers the financial institution's efforts to grow its self- service network, assisting in accelerating branch transformation and strengthening market share," said Daniel Hu, Diebold's vice president and managing director, North Asia and China. "Diebold prides itself on offering innovative solutions that will position financial institutions with the necessary resources to meet any end- user need." The launch of the new Diebold Opteva ATM fleet will enable customers to make hassle-free deposits without the need for a banking card. This allows farmers and other agricultural workers to transfer funds without a card to their families, who traditionally live in remote rural areas, for easy withdrawal from Agricultural Bank of China's branches using an ATM card. Diebold's innovative solution will streamline these customers' transactions, improving the nature of banking for China's agriculture industry. Agricultural Bank is among the four largest state-owned commercial banks in China, with more than 31,000 branches and banking offices across the country. Its focus has been on improving productivity and reducing costs while better serving its growing customer base. Abroad, Agricultural Bank is listed as one of the World's Top 500 companies by Fortune. Diebold's well-tailored strategy has assisted the bank in implementing a self-service solution that offers its customers the advanced functionality they require. This partnership also will help the bank build stronger, more lasting relationships with customers, which aligns well with its strategy to improve efficiencies while facilitating growth. "An additional benefit for the financial institution is Diebold's unparalleled service offerings," Mr. Hu said. "These services will provide the support necessary to simplify Agricultural Bank of China's transition to a larger self-service network and will allow the financial institution to optimize its long-term strategy through enhanced accessibility, improved uptime and increased profits." About Diebold Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services. Diebold employs more than 17,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of US$2.9 billion in 2006 and is publicly traded on the New York Stock Exchange under the symbol 'DBD.' About Agricultural Bank Agricultural Bank of China -- http://www.abchina.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. BEIJING SHOUGANG: Inks Contracts Worth US$11 Mil. With Liaoning --------------------------------------------------------------- A-Power Energy Generation Systems, Ltd., said its acquisition candidate, Liaoning International Construction & Engineering Group, has signed two phase 1 construction contracts with Beijing Shougang Co., Ltd., worth a total of US$11 million. Beijing Shougang, founded in 1919, is the fourth largest steel producer in China and is working closely with the People's Republic of China government to relocate all of its heavy polluting steel factories out of Beijing into neighboring provinces prior to the Olympic Games. Mr. Jinxiang Lu, A-Power's Chairman and CEO, commented, "We are looking forward to completing the acquisition of Liaoning International Construction & Engineering Group. The acquisition of LICEG will be a strategic addition and extension of our design, construction, installation and project management capabilities and will expand our business domestically while simultaneously accelerating our entry into the international markets. LICEG reported 2007 revenue of US$93 million (unaudited) and net income of approximately Us$3 million (unaudited). By grafting our processes and control systems onto their contracts we expect to be able to bring their profit margins up to ours over time. "Following the acquisition of LICEG and through its initial contracts with Beijing Shougang, we believe that we will be the only non state-owned company involved in the relocation of large factories from Beijing to neighboring provinces. With the upcoming Olympic Games and the new Clean Air Act, many companies, including Beijing Shougang, are receiving government support to close down and relocate to areas outside of Beijing. We expect these initial contracts to be the beginning of our co- operation with Beijing Shougang and its massive $5 billion relocation process." A-Power Energy Generation Systems, Ltd., formerly Chardan South China Acquisition Corp., through its PRC operating subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of distributed power generation systems in China and will enter into China's wind energy market in 2008. The company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University and the China Sciences Academy in Guangzhou. About Beijing Shougang Based in Beijing, China, Beijing Shougang Co., Ltd. -- http://www.sggf.com.cn/index-1.asp-- is principally engaged in the iron and steel industry. The company mainly produces steel wire rods, square steel billets, steel plates, chemical products, gas, coke, pig iron and granulating slag. The company also provides compact discs, software, color-coated boards and building materials, through its subsidiaries. As of Dec. 31, 2005, the company had three major subsidiaries and three major associates. The company has been widely accused of being one of Beijing's major polluters. Beijing Shougang carries Xinhua Far East China Ratings BB+ issuer credit rating. BRUTUS FASHIONS: Commences Liquidation Proceedings -------------------------------------------------- Brutus Fashions Limited's members agreed on March 14, 2008, to voluntarily liquidate the company's business. The company has appointed Natalia K M Seng and Susan Y H Lo to facilitate the sale of its assets. The liquidators can be reached at: Natalia K M Seng Susan Y H Lo Three Pacific Place, Level 28 1 Queens Road East Hong Kong CHINA EASTERN: Regulator Investigating Pilots' Protest ------------------------------------------------------ The Civil Aviation Administration of China said that the pilots of China Eastern Airlines Corp. who cancelled flights will be punished if they deliberately violated flight schedules, Irene Shen of Bloomberg News reports. China's aviation regulator began an investigation over reports that the pilots had disrupted flights in a protest over pay and conditions, the report relates. According to Bloomberg, citing Xinhua News Agency, a total of 18 China Eastern flights from southwestern Yunnan province turned back midway on March 31, stranding more than 1,000 passengers. China Eastern explained last week that the pilots returned due to poor weather. Chinese newspapers including Guangzhou Daily have said that the pilots disrupted the flights to seek higher salaries and better working conditions, Bloomberg notes. Ms. Shen says China Eastern spokesman Li Jiang didn't return her calls for comment. 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 HERITAGE: Members' Meeting Set for May 7 ---------------------------------------------- Members of China Heritage Arts Foundation Limited will have their final general meeting on May 7, 2008, on the 4th Floor and 5th Floor of Central Tower at 28 Queen's Road Central in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Angus Hamish Forsyth Central Tower, 4th Floor & 5th Floor 28 Queen's Road Central, Hong Kong CHINASAILS DEV'T: Creditors' Proofs of Debt Due April 30 -------------------------------------------------------- Creditors of Chinasails Development Limited are required to file their proofs of debt by April 30, 2008, to be included in the company's dividend distribution. Te company commenced liquidation proceedings on March 28, 2008. The company's liquidator is: Fan Wai Yuen Two Grand Tower, 1404 625 Nathan Road Mongkok, Kowloon CHINA TOP: Commences Liquidation Proceedings -------------------------------------------- China Top Trading Limited's members agreed on March 26, 2008, to voluntarily liquidate the company's business. The company has appointed Chok-Man Yik to facilitate the sale of its assets. The liquidator can be reached at: Chok-Man Yik Manulife Tower, 15th Floor 169 Electric Road North Point, Hong Kong COMFORT DEVELOPMENT: Creditors' Proofs of Debt Due April 11 ----------------------------------------------------------- Creditors of Comfort Development Limited are required to file their proofs of debt by April 11, 2008, to be included in the company's dividend distribution. The company's liquidators are: Paul Jeremy Brough Edward Simon Middleton Alexandra House, 17th Floor 18 Charter Road Central, Hong Kong COTTEEN INVESTMENT: Creditors' Proofs of Debt Due April 21 ---------------------------------------------------------- Creditors of Cotteen Investment Limited are required to file their proofs of debt by April 21, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 20, 2008. The company's liquidator is: Yan Tai Wah Dah Sing Life Building 99-105 Des Vouex Road Central, Hong Kong EASTERN HARBOUR: Commences Liquidation Proceedings -------------------------------------------------- Eastern Harbour Crossing Company Limited's members agreed on March 14, 2008, to voluntarily liquidate the company's business. The company has appointed Paul Jeremy Brough and Patrick Cowley to facilitate the sale of its assets. The liquidators can be reached at: Paul Jeremy Brough Patrick Cowley KPMG Prince's Building, 8th Floor 10 Charter Road Central, Hong Kong FORDKING DEVELOPMENT: Commences Liquidation Proceedings ------------------------------------------------------- Fordking Development Limited's members agreed on March 20, 2008, to voluntarily liquidate the company's business. The company has appointed Cheung Fong Ming to facilitate the sale of its assets. The liquidator can be reached at: Cheung Fong Ming Two International Finance Centre 8 Finance Street, 72-76th Floor Central, Hong Kong HUA XIA: Shareholders Approve Private Share Placement Plan ---------------------------------------------------------- Shareholders of Hua Xia Bank has approved of the private share placement plan, according to SinoCast, allowing the bank to issue certain common shares to three current shareholders, Shougang Group, State Grid Corporation and Deutsche Bank. According to SinoCast, "Shougang Group plans to subscribe for CNY3.94 billion worth of shares, State Grid Corporation CNY3.7 billion shares and the strategic investor of Hua Xia Bank CNY3.9 billion shares." The size of the share placement will be the total sum of the shares that the three have agreed to buy, SinoCast reports citing Hua Xia Bank. The new shares will be priced at 90% of the average in the 20 trading days prior to the base date for pricing, the report adds. Hua Xia Bank will collect CNY11.5 billion from the private share placement, which will be used to replenish its core capital after excluding placement fees, the report relates. About Hua Xia Bank Headquartered in Beijing, Hua Xia Bank Co., Limited -- http://www.hxb.com.cn-- is a commercial bank that offers financial services to both corporate and individual clients. At the end of 2005, it has 27 branches and 257 offices nationwide. On September 21, 2005, Deutsche Bank entered into a preliminary agreement to purchase a holding of about 10% in Huaxia Bank, a medium-sized Beijing-based lender, for about US$200 million. People close to the situation said Deutsche had teamed up with another European financial institution to buy a total of about 15 per cent in Shanghai-listed Huaxia for more than US$300 million -- a slight premium to its market value. Fitch Ratings affirmed on September 5, 2006, Hua Xia Bank's Individual D/E and Support 4 ratings. According to Fitch, Hua Xia Bank's Individual D/E rating reflects its weak capital position, inadequate profitability, and potential asset quality risks stemming from very rapid loan growth. Total loans expanded 29% in 2005, the second fastest growth among local peers. JABIL CIRCUIT: S&P Downgrades Senior Unsecured Ratings to 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured ratings on St. Petersburg, Florida-based Jabil Circuit Inc. to 'BB+' from 'BBB-', following the company's revised outlook for the balance of fiscal 2008. The outlook is stable. At the same time, S&P assigned a '4' recovery rating to the company's $250 million 8.25% notes due 2018 and its $300 million 5.875% notes due 2010, indicating that lenders can expect an average recovery (30% to 50%) in the event of payment default. Jabil lowered its revenue and earnings expectations for the next two quarters, reflecting near-term decreased demand from previously estimated levels, principally in the telecommunications and television display sectors it serves. Prospects for improvement in leverage, currently high for the rating at 2.7x, have been delayed. In addition, the company's exposure to consumer end markets, about 32% of trailing-12-month revenues as of Feb. 29, 2008, could remain under pressure and dampen operating trends. "The rating reflects highly competitive, relatively low-margin industry characteristics, modest customer concentration, and variable profitability metrics, said Standard & Poor's credit analyst Lucy Patricola. "These factors are offset by good liquidity and leverage that is consistent with the rating." Jabil is a leading provider of electronics manufacturing services to such leading original equipment manufacturers as Koninklijke Philips Electronics N.V., Nokia Corp., Cisco Systems Inc., and Hewlett-Packard Co. Jabil had about $1.6 billion in total debt outstanding, including operating leases, pension adjustments, and securitizations, as of Feb. 29, 2008. About Jabil Circuit Jabil Circuit, Inc. (NYSE:JBL) -- http://www.jabil.com/-- is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil Circuit has more than 50,000 employees and facilities in 20 countries, including Brazil, Mexico, Austria, and China. MORNING SIGNAL: Members' Meeting Set for April 30 ------------------------------------------------- Members of Morning Signal Development Limited will have their final general meeting on April 30, 2008, at Flat A, 2nd Floor, Tung Tai Building, Nos. 118-124, Main Street East, Shaukiwan, in Hong Kong to hear the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator can be reached at: Wong Tak Shing Tung Tai Building, Flat A, 2nd Floor Nos. 118-124, Main Street East Shaukiwan, Hong Kong NETTEST (HONG KONG): Liquidator Quits Post ------------------------------------------ On March 27, 2008, Yau Tsz Sang stepped down as liquidator for Nettest (Hong Kong) Limited, which is undergoing liquidation. PANDOL INTERNATIONAL: Creditors' Proofs of Debt Due May 5 --------------------------------------------------------- Creditors of Pandol International Limited are required to file their proofs of debt by May 5, 2008, to be included in the company's dividend distribution. Te company commenced liquidation proceedings on February 18, 2008. The company's liquidators is: Lucy T. Pandol Road 192, Country Line Road Delano, California 93215 United States PETROLEOS DE VENEZUELA: May Fail to Maintain Oil Shipments ---------------------------------------------------------- The Economist relates that Petroleos Venezuela SA may not be able to maintain oil shipments "indefinitely" to nations "lining up" for Venezuela's attendants. According to The Economist, Petroleos de Venezuela's output is decreasing, while domestic oil consumption is increasing. The Economist notes that Petroleos de Venezuela exports one million barrels per day of oil to the U.S. and has to pay full-price sales for its imports. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. PETROLEOS DE VENEZUELA: Production Costs Increase 21.7% in 2007 --------------------------------------------------------------- Petroleos de Venezuela SA's production costs, excluding operational accords, increased 21.7% to US$4.88 per barrel in 2007, compared to US$4.01 per barrel in 2006, Marianna Parraga at El Universal reports. El Universal relates that oil production costs per barrel rose 13.6% to US$4.93 in 2007, from 2006, the highest oil production cost per barrel over the last five years. According to El Universal, Petroleos de Venezuela's' financial statements indicate that the consolidated operational expenses rose to US$14.95 billion in 2007, from US$14.77 billion in 2006. Exploration costs increased to US$154 million in 2007, compared to US$100 million in 2006. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. PRIME SKILL: Members' Meeting Set for April 30 ---------------------------------------------- Members of Prime Skill Limited will have their final general meeting on April 30, 2008, at Flat A, 2nd Floor, Tung Tai Building, Nos. 118-124, Main Street East, Shaukiwan, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Wong Tak Shing Flat A, 2nd Floor Tung Tai Building Nos. 118-124, Main Street East Shaukiwan, Hong Kong PROMITEX LIMITED: Commences Liquidation Proceedings --------------------------------------------------- Promitex Limited's members agreed on March 17, 2008, to voluntarily liquidate the company's business. The company has appointed Luk Wing Hay to facilitate the sale of its assets. The liquidator can be reached at: Luk Wing Hay Surson Commercial Building, 9th Floor 140-142, Austin Road Tsimshatsui, Kowloon ROYAL CARIBBEAN: Fleet Expansion Prompts S&P's Rating Cut to BB+ ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered the corporate credit rating on Miami, Florida-based Royal Caribbean Cruises Ltd. to 'BB+' from 'BBB-'. The rating outlook is stable. "The downgrade reflects our assessment that given its aggressive, partially debt-financed fleet expansion strategy, RCL will not generate sufficient growth in EBITDA to drive its credit metrics to levels we have outlined as consistent with an investment-grade rating over the intermediate term," explained Standard & Poor's credit analyst Ben Bubeck. More specifically, the previous rating incorporated the expectation that leverage, adjusted for operating leases and port commitment fees, would trend to less than 4x. Despite EBITDA growth of 8% in 2007, leverage remains in the mid-4x area, and S&P does not expect RCL to meet the 4x target until at least 2010, primarily due to fleet-related investments. Capital expenditures associated with RCL's fleet expansion are expected to substantially exceed the company's operating cash flow generation over the next few years, precluding the company's ability to drive improvement to its credit metrics via debt repayment. Finally, while cruise industry performance has thus far fared well despite the slowing U.S. economy, economic factors, including rising fuel costs, weigh into S&P's forward view of RCL's performance, though the company affirmed its full- year guidance in its 10-K filed on Feb. 19, 2008. The rating on RCL reflects an aggressive financial risk profile, the capital-intensive nature of the cruise industry, and the sensitivity of the travel and leisure sector to economic cycles. These factors are somewhat offset by RCL's solid brands, a relatively young and high-quality fleet of ships, high barriers to entry in the cruise industry, and an experienced management team. The issue-level rating RCL's senior notes and debentures also was lowered to 'BB+' (at the same level as the corporate credit rating on the company) from 'BBB-'. A recovery rating of '3' was assigned to this debt, indicating that lenders can expect meaningful (50% to 70%) recovery in the event of a payment default. Although S&P's analysis indicates recovery in the 90% to 100% range, the recovery rating has been capped at '3' due to the possibility that RCL may incur additional and potentially secured debt as its credit profile weakens, material enough to reduce S&P's recovery estimate. Typically, as a company with a high-speculative-grade rating transitions down the rating scale, which is the case under S&P's simulated default scenario, incremental debt, often secured, is added to the capital structure. It should be noted, however, that RCL does not currently have any secured debt in its capital structure, and the terms of its existing unsecured facilities limit the amount of secured debt that the company can take on. Based in Miami, Florida, Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com/-- operates a cruise line with more than 170 destinations worldwide including China, Vietnam, Australia, and an array of shore excursions and cruise tour options. The company's ships offer itineraries, activities and amenities designed to appeal to every taste, energy level and age group giving guests the opportunity to create their own adventure. THE SHOP OF GREEN AND FOUND: Liquidator Quits Post -------------------------------------------------- On March 20, 2008, Au Yan Alfred stepped down as liquidator for The Shop of Green and Found Limited, which is undergoing liquidation. TRANSWORLD PRODUCE: Creditors' Proofs of Debt Due May 5 ------------------------------------------------------- Creditors of Transworld Produce Limited are required to file their proofs of debt by May 5, 2008, to be included in the company's dividend distribution. Te company commenced liquidation proceedings on February 18, 2008. The company's liquidator is: Lucy T. Pandol Road 192, Country Line Road Delano, California 93215 United States ========= I N D I A ========= ANDREW YULE: Expects to Complete Rehabilitation by FY2008-2009 -------------------------------------------------------------- The restructuring and rehabilitation exercise of Andrew Yule & Company Ltd is expected to be completed by the end of 2008-09 and is set to earn profit this year, Ambar Singh Roy of Business Line reports. Andrew Yule had been referred to Bureau of Industrial and Financial Reconstruction under Registered Case No. 501/2003. The BIFR, in its order dated Oct. 5, 2004, declared the company sick and appointed IDBI as Operating Agency for finalization of the Draft Rehabilitation Scheme. The BIFR approved the company's rehabilitation scheme on Oct. 30, 2007. As part of the BIFR-approved revival package, Andrew Yule would spin off its electrical and engineering businesses into separate companies, while its tea business would be retained under its own banner, Chairman & Managing Director Kallol Datta told Business Line. The company would also unlock its investments and bond issues in other companies with a view to generating the cash funding that is required under the revival package, Mr. Datta added, the report relates. Andrew Yule intends to divest its equity holdings in associate companies including Phoenix Yule, Tide Water Oil Co (I) Ltd and DPSC Ltd, Business Line said. The company has tapped PricewaterhouseCoopers Ltd to fix the value of its 26% stake in Phoenix Yule, which holding is expected to be offloaded in favour of Phoenix, which has the first right of refusal, the news agency noted. According to a company filing with the Bombay Stock Exchange, the Rehabilitation Scheme provides that in order to reduce the company's accumulated loss, the face value of its equity shares is to be reduced from existing INR10 to INR2. The company's board of directors fixed April 4, 2008, as the Record Date for the capital reduction. As of March 31, 2007, the company had an accumulated loss of INR410 crore, Business Line noted. Headquartered in Kolkata, India, Andrew Yule & Co. Ltd. manufactures and distributes machinery including industrial fans and blowers, air pollution control systems and tea processing machinery. Andrew Yule had been referred to Bureau of Industrial and Financial Reconstruction under Registered Case No. 501/2003. The BIFR, in its order dated Oct. 5, 2004, declared the company sick and appointed IDBI as Operating Agency for finalization of the Draft Rehabilitation Scheme. The BIFR approved the company's rehabilitation scheme on Oct. 30, 2007. ANDREW YULE: Books INR132 Mil. Net Loss in Qtr. Ended Dec. 31 ------------------------------------------------------------- Andrew Yule & Co. Ltd. reported a net loss of INR132.23 million in the three months ended Dec. 31, 2007, an improvement compared to the INR162.81 million loss incurred in the same three-month period in 2006. Total revenues increased from INR423.97 million in the quarter ended Dec. 31, 2006, to INR566.47 million in 2007. With operating expenditures of INR623.53 million, Andrew Yule booked an operating loss of INR57.06 million in the quarter ended Dec. 31, 2007. In Oct.-Dec. 2007, the company also recorded interest charges totaling INR64.02 million, depreciation of INR10.36 million and INR780,000 in taxes. Headquartered in Kolkata, India, Andrew Yule & Co. Ltd. manufactures and distributes machinery including industrial fans and blowers, air pollution control systems and tea processing machinery. Andrew Yule had been referred to Bureau of Industrial and Financial Reconstruction under Registered Case No. 501/2003. The BIFR, in its order dated Oct. 5, 2004, declared the company sick and appointed IDBI as Operating Agency for finalization of the Draft Rehabilitation Scheme. The BIFR approved the company's rehabilitation scheme on Oct. 30, 2007. AXIS BANK: Board to Consider Annual and Q4 Results on April 21 -------------------------------------------------------------- AXIS Bank Ltd. informed the Bombay Stock Exchange that its board of directors will hold a meeting on April 21, 2008, inter alia, to consider and take on record the company's audited annual and unaudited quarterly financial results for the period ended March 31, 2008. The board may also consider declaring a dividend for the financial year 2007-08, if any. Headquartered in Mumbai, India, Axis Bank Ltd, formerly known as UTI Bank Limited, -- http://www.axisbank.com/-- is engaged in treasury and other banking operations. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. Revenues of the treasury services segment primarily consist of fees and gains or losses from trading operations and interest income on the investment portfolio. Other banking operations principally comprise the lending activities (corporate and retail) of the bank. The corporate lending activity includes providing loans and transaction services to corporate and institutional customers. The retail lending activity includes raising of deposits from customers and providing loans and advisory services to customers through branch network and other delivery channels. The bank currently holds Moody's Investors Service's Ba2 rating that was placed on July 1, 2005. QUEBECOR WORLD: Loses Catalog Deal; May Lose Parent Business ------------------------------------------------------------ Quebecor World, Inc., lost its contract with Canadian Tire Corp. when the company decided to switch from print paper catalogs to an online version, the Canadian Press reported. According to Lisa Gibson, spokesperson for Canadian Tire, company research on customer shopping habit found that customers are spending a lot more time online, The Canadian Press said. Quebecor Inc. Business Globe and Mail reported that Quebecor World Inc. is now facing the possibility that its parent, Quebecor Inc., will switch to another printer to handle some of its magazine titles. According to Globe and Mail, a Quebecor spokeman said Publications TVA Inc., Quebec's largest consumer magazine publisher, is considering entering into printing agreements with rivals of Quebecor World for a handful of publications. "Publications TVA is assessing the possibility of letting a minority percentage [of its magazines] go to other printing companies, for practical and logistical reasons," Luc Lavoie told Globe and Mail. The report relates that no final decision has been made yet. Mr. Lavoie told Globe and Mail that Quebecor World will continue to print the "vast majority" of the 50 or so magazines in the TVA stable. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. 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. 11; 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: 517,184 Preferred Shares for Conversion on June 1 ----------------------------------------------------------- Quebecor World Inc. said that, on or prior to March 27, 2008, it received notices in respect of 517,184 of its remaining 3,024,337 issued and outstanding Series 5 Cumulative Redeemable First Preferred Shares (TSX: IQW.PR.C) requesting conversion into the Company's Subordinate Voting Shares (TSX: IQW). In accordance with the provisions governing the Series 5 Preferred Shares, registered holders of the shares are entitled to convert all or any number of their Series 5 Preferred Shares into a number of Subordinate Voting Shares effective as of June 1, 2008, provided holders gave notice of their intention to convert at least 65 days prior to the Conversion Date. The Series 5 Preferred Shares are convertible into that number of the Company's Subordinate Voting Shares determined by dividing CA$25.00 together with all accrued and unpaid dividends on such shares up to May 31, 2008 by the greater of (i) CA$2.00 and (ii) 95% of the weighted average trading price of the Series 5 Preferred Shares on the Toronto Stock Exchange during the period of 20 trading days ending on May 28, 2008. The next conversion date on which registered holders of the Series 5 Preferred Shares will be entitled to convert all or any number of such shares into Subordinate Voting Shares is Sept. 1, 2008, and notices of conversion must be deposited with the company's transfer agent, Computershare Investor Services Inc., on or before June 27, 2008. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. 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. 11; 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. TATA MOTORS: S&P Lowers Corporate Credit Ratings to 'BB' -------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit ratings on India's Tata Motors Ltd. to 'BB' from 'BB+'. At the same time, Standard & Poor's lowered to 'BB' from 'BB+' the ratings on all Tata Motors' rated debt. These ratings remain on CreditWatch with negative implications. This rating action comes after Tata Motors' recent announcement on its agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover, comprising brands, plants, and intellectual property rights. The transfer of ownership to Tata Motors, as announced, is expected to close by the end of the second quarter of 2008, subject to applicable regulatory approvals. Tata Motors will pay a total of approximately US$2.3 billion in cash for Jaguar and Land Rover, out of which Ford will then contribute up to US$600 million to the Jaguar-Land Rover (JLR) pension plans. "The rating action reflects Tata Motors' heightened financial leverage, resulting from the US$3 billion bridge loan mobilized to fund this transaction," said Standard & Poor's credit analyst Anshukant Taneja. "It also reflects a more challenging business environment, both for the company's domestic passenger and commercial vehicle segments in India and for the high-end luxury car segments in the key markets for Jaguar and Land Rover." Tata Motors intends to fund the acquisition with new equity of up to US$1 billion. While the company has demonstrated adequate financial flexibility and benefits from its parentage, Standard & Poor's would factor in the impact of such equity inflows only when they are successfully concluded. While JLR has recently demonstrated some improvement in its profits and cash flows, this trend remains susceptible to changing demand and rising operating costs, both of which are currently vulnerable in prevailing macroeconomic conditions. In this backdrop, Tata Motors also intends to continue with its relatively aggressive capital spending plans for its existing Indian operations as well as the newly acquired JLR operations. "This could result in still higher leverage and a potentially protracted improvement in its credit metrics," Mr. Taneja said. "Nonetheless, the increase in Tata Motors' geographic diversity and presence in uncorrelated business segments, which may add to revenue stability, has been factored in the current ratings." The CreditWatch negative position reflects concerns related more to Tata Motors' long-term financing arrangements for replacing the existing bridge facility and limited details on its plans for the transition of JLR operations. A greater level of certainty addressing these issues would be required for the CreditWatch resolution. Overall, the likelihood of a further lowering of the ratings is relatively low assuming: (1) the bridge facility refinancing risks are addressed, (2) Tata Motors' capital commitments to its domestic operations and to JLR remain broadly at the levels given by the company, and (3) the transition of the JLR assets from Ford proceeds as expected. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia, and the United Kingdom. TATA MOTORS: Hitachi JV to Acquire 60% of Comoplesa Lebrero ----------------------------------------------------------- Telco Construction Equipment Company Limited, a 60:40 joint venture between Tata Motors Ltd. and Japan's Hitachi Construction Machinery Co. Ltd., has signed an agreement with the existing shareholders of Comoplesa Lebrero S.A., Spain, for acquisition of their 60% stake in the company. The balance will be retained by the existing shareholders who will continue to be associated with the venture. Speaking on the occasion of signing the agreement, Ranaveer Sinha, Managing Director of Telcon, said, "This acquisition helps Telcon enhance product offerings in the road and general construction value chain. Telcon, Hitachi and Lebrero will work together to identify opportunities and leverage their presence in the global market." Over the past four years, Lebrero was sourcing components from Telcon for its product. Telcon's acquisition of a stake in Lebrero will strengthen the association further. About Telcon Telcon is the largest manufacturer of construction equipment in India. Telcon was set up in 1999 as a wholly-owned subsidiary of Tata Motors by the spin-off of the Construction Equipment Business Unit of Tata Motors. Subsequently, in 2000, Tata Motors inducted Japan's Hitachi Construction Machinery Co. Ltd. into Telcon by divesting 20% of its shareholding; in 2005, HCMC increased its shareholding to 40%. Telcon is in the business of designing, manufacturing, assembling, selling, distributing and dealing in all services related to earth moving machinery and construction equipment with manufacturing facilities at Jamshedpur and Dharwad and a marketing and service network across India. It has formed a joint venture, Telcon Ecoroad Resurfaces Pvt. Ltd., with HCM, GreenArm Japan, and IVRCL India to promote environment-friendly road resurfacing technology in India. Telcon has also acquired a 79% stake in Serviplem S.A. of Spain, which ranks amongst global top six in transit mixers, dry bulk tankers and pumps. About Comoplesa Lebrero S.A Comoplesa Lebrero S.A. is the market leader in Spain with its Lebrero brand in the manufacturing, marketing and servicing of compaction equipment. It is based in Zaragoza. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. Standard & Poor's Ratings Services recently lowered its corporate credit ratings on India's Tata Motors Ltd. to 'BB' from 'BB+'. At the same time, Standard & Poor's lowered to 'BB' from 'BB+' the ratings on all Tata Motors' rated debt. These ratings remain on CreditWatch with negative implications. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Moody's Holds Ratings; Outlook Revised to Neg. -------------------------------------------------------------- Moody's Investors Service has affirmed the ratings for Alcatel- Lucent which include a Ba3 corporate family rating for Alcatel- Lucent and a Not-Prime for its short term debt, as well as Ba3 ratings for senior and B2 ratings for subordinated debt that was issued originally by the predecessor companies Alcatel S.A. and Lucent Technologies, Inc. The outlook for the ratings was changed to negative to reflect the heightened market risk in the industry and ongoing restructuring challenges to adapt product range and cost structure of the merged company to a very competitive environment. Wolfgang Draack, Senior Vice President and lead analyst for Alcatel-Lucent, summarized: "The rating affirmation reflects our expectation that Alcatel-Lucent has passed in 2007 the trough level of profitability and that the benefits of restructuring should increasingly be realized so that margins and operating cash flow should gradually grow and reach in 2008 a coverage level of interest and debt that is commensurate with the present Ba3 rating. We see several challenges to this endeavour including an outlook for depressed orders from telecom operators leading to stable demand at best, little evidence yet that more selective bidding by certain equipment companies including Alcatel-Lucent has alleviated the severe price pressure in the industry, and the requirement for further extensive headcount adjustments at the company. The concern that these factors may delay the turnaround at Alcatel-Lucent is captured in the negative rating outlook." Alcatel-Lucent's financial metrics for 2007 including an interest coverage level of 0.3-times, net debt/EBITDA (net of restructuring expenses) of 4.2-times and a negative free cash flow of EUR1.2 billion are clearly below expectations for a Ba3 rating even considering the company's scale, diversification and leading, broad technology position. The Ba3 rating was affirmed only on the basis of a clear near term path towards reasonable operating profitability with only modest cash consumption during 2008. This assessment does not rely on business growth, but on internal cost savings that have been initiated in the merger and synergy plan of late 2006. These should become more prevalent in 2008. These effects are expected to (i) improve materially the operating profitability on an LTM basis, (ii) reduce net debt/EBITDA well below 4-times, and (iii) have free cash flow trend towards a positive amount, but not exceed a negative EUR600 million including cash cost for restructuring in 2008; all ratios to include Moody's adjustments. These metrics are more compatible with a Ba3 rating for a company with this business profile and a very strong liquidity position. The negative outlook for the rating reflects relatively high uncertainty about management's ability to execute the restructuring program and to achieve the cash flow and profitability targets noted above in view of adverse demand trends and unclear competitive responses (e.g. pricing strategies) at this stage. The seasonality in the industry, where weak first calendar quarters and strong cash flow receipts in the last quarter of a year are common, may make the progress of restructuring and its benefits visible only in the latter quarters of the year, with the effect of increasing uncertainty. Moody's last rating action for Alcatel-Lucent was the rating downgrade to Ba3 from Ba2 for the corporate family rating and parallel changes for the instrument ratings on Nov. 7, 2007. Headquartered in Paris, France, Alcatel-Lucent is one of the world leaders in providing advanced solutions for telecommunications systems and equipment to service providers, enterprises and governments with sales of EUR17.8 billion in fiscal year 2007. The company has operations in Costa Rica and Indonesia. BANK PERMATA: Partners With Astra Credit to Expand Services ----------------------------------------------------------- PT Bank Permata Tbk has partnered with Astra Credit Companies (ACC) to expand its Host to Host service, which is an online and real time installment payment service, to ACC's customers through its 36 branch offices in Indonesia, Reuters reports. According to the report, ACC will also provide its customers with Permata e-banking services such as: -- PermataBank automatic teller machines (ATM), -- PermataMobile, -- PermataTel, and -- PermataShop through this Host to Host service. In addition, the report relates, ACC's customers will also be able to make online transactions through 256 conventional branches and seven Syariah PermataBank branches throughout Indonesia. About Bank Permata Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's -- http://www.permatabank.com/-- products and services include liabilities, asset, credit card and bancassurance, PermataFOREX, commercial banking, e-channels and preferred banking. The bank has approximately 318 domestic branches, sub branches and cash offices throughout the country. The bank's subsidiaries, which are engaged in the securities industry, the consumer finance and leasing sector, the general insurance business and the banking sector, include PT Bali Securities, PT Bali Tunas Finance, PT Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan Rakyat. As reported by the Troubled Company Reporter-Asia pacific on Feb. 25, 2008, Fitch Ratings revised PT Bank Permata Tbk's outlook to Stable from Positive. The bank's support ratings was upgraded to '3' from '4'. The Support Rating Floors were upgraded to 'BB-' from 'B+' or 'B' previously to reflect the stronger financial ability of the sovereign state to provide support. The bank's individual rating was also affirmed at C/D. On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Permata: -- The foreign currency long-term deposit rating was raised to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D- BFSR were unaffected. EXCELCOMINDO PRATAMA: To Delay or Cancel Share Offer ---------------------------------------------------- PT Excelcomindo Pratama Tbk could delay or even scrap a plan to increase its free market float via a secondary offering if market conditions were not favorable, Reuters reports. As reported by the Troubled Company Reporter-Asia Pacific on