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 Thursday, April 10, 2008, Vol. 11, No. 71 Headlines A U S T R A L I A ABC LEARNING: Cuts Down EPS Guidance to 34 Cents for FY 2008 ALLCO FINANCE: To Sell Leasing Unit as Part of Restructuring CHRYSLER: Outsources IT Management Department & Cuts 200 Jobs OPES PRIME: ASIC Says Director Smith May Be Involved in Cover-Up OPES PRIME: Ex-mob Boss to Track AU$1BB Worth of Assets Overseas OPES PRIME: Administrator Says Creditors May Recover 30% PSIVIDA LTD: Orbis Investment Holds 5.19% Equity Stake C H I N A & H O N G K O N G & T A I W A N BALI INTERNATIONAL: Members' Meeting Set for April 29 CHINA SOUTHERN: Reports April Traffic Results CHINA TRADING: Appoints Au Chun Keung as Liquidator CHINA WORLD TRADE: Auditor Raises Going Concern Doubt CHINA WORLD TRADE: Signs Share Exchange Pact With Uonlive GOLD LEADER: Appoints New Liquidator GRAND TOYS: Centralink, et al., Hold 91.2% Equity Stake HUA XIA: Seeking Overseas Listing by 2012, Report Says KATRADE INTERNATIONAL: Members' Meeting Set for May 6 KID CASTLE: Brock Schechter Expresses Going Concern Doubt OASIS AIRLINES: Applies for Voluntary Liquidation PETROLEOS DE VENEZUELA: Eyes 5MM Barrels/Year From Joint Venture PETROLEOS DE VENEZUELA: Mulls Programs to Explore & Produce Oil SANCON RESOURCES: Kabani & Company Expresses Going Concern Doubt SHK FOREXCHANGE: Members' Meeting Set for April 29 SONIE GARMENTS: Members' Meeting Set for May 2 SKY BLUE: Creditors' Meeting Set for May 2 SUCCESS ERA: Appoints New Liquidators SUN LOONG CAPITAL: Members' Meeting Set for April 29 SUN LOONG ON-LINE: Members' Meeting Set for April 29 I N D I A GENERAL MOTORS: Plastech Can Get Funding From Lender Consortium GENERAL MOTORS: Court Extends Indemnification Pact With Delphi GMAC LLC: Buys US$1.2 Billion of Residential Capital's Debt GMAC LLC: To Buy Remaining CARAT 2005-SN1 on April 15 HDFC BANK: To Release Annual Results on April 24 HDFC BANK: Shareholders OK Merger With Centurion Bank of Punjab LML LTD: Incurs INR110.8 Million Net Loss in Qtr. Ended Dec. 31 LLOYDS STEEL: Net Loss Widens to INR404 Mil. in Oct.-Dec. 2007 MODI RUBBER: Posts INR303.92 Mil. Profit in Qtr. Ended Dec. 31 * Fitch Sees Higher Delinquencies in Indian Personal Loan Deals I N D O N E S I A BANK NEGARA: Aims IDR1.8 Trillion Fee-Based Income in 2008 BERAU COAL: To Double Coal Output to 30MM tonnes in 5 years CA INC: Cuts 2,800 Jobs in Expanded 2007 Restructuring Plan FREEPORT-MCMORAN: Strong Liquidity Cues Fitch to Lift Ratings J A P A N ATARI INC: Curtis Solsvig Resigns as Chief Restructuring Officer DELPHI CORP: Court Extends Indemnification Agreement with GM DELPHI CORP: Court Extends Time to Perform Under IRS Waivers ELPIDA MEMORY: Increases Chip Prices 5% to 10% for Module Makers IHI CORP: To Discuss Shipbuilding Tie-Up With JFE Holdings MITSUKOSHI LTD: First Isetan Mitsukoshi Outlet to Open in 2011 FORD MOTOR: Integrates Global Product Dev't and Purchasing Teams FORD MOTOR: Bares 2007 Executive Compensation in Proxy Statement XERIUM TECHNOLOGIES: Obtains Default Waiver Until May 31 K O R E A CHOROKBAEM MEDIA: Moves Spinoff of 2 Units to May 30 COREBRID INC: Co-Chief Executive Officer Seo Myeong Hwan Resigns CORECROSS INC: Kim Tae Wan Resigns as Co-Chief Executive Officer DAEWOO ELECTRONICS: Hires Lee Dong Hui as CEO DURA AUTO: Wants Court Nod on Atwood Capital Adjustment Pact EUGENE SCIENCE: Won't Be Able to File 2007 Annual Report on Time PIXELPLUS LTD: Board Approves Reverse Stock Split M A L A Y S I A ASPEN TECH: ATF II Completes Payments to Key Bank Facility N E W Z E A L A N D AIR NEW ZELAND: Posts US$115 Mil. Net Profit in 2nd Half of 2007 AIR NEW ZELAND: Says Fare Increase May Slow Demand CLEAR CHANNEL: Trial Against Sale Financiers Will Begin May 5 P H I L I P P I N E S PSI TECHNOLOGIES: Marxe and Greenhouse Hold 9.1% Equity Stake PSI TECHNOLOGIES: Greathill, et al., Hold 14.7% Equity Stake S I N G A P O R E ADVANCED MICRO: Expects Revenues to Drop to US$1.5 Billion - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Cuts Down EPS Guidance to 34 Cents for FY 2008 ------------------------------------------------------------ ABC Learning Centres Ltd. slashed its earnings per share guidance for fiscal 2008 from more than 41 cents a share to between 34 and 36 cents per share, Lisa Macnamara writes for The Australian. The Australian quotes ABC company secretary Matther Horton as saying, "Timing issues associated with the slowed pace of the childcare centre acquisition program (in Australia, New Zealand and U.S.) and property disposal program, coupled with other less material profit and loss impacts, have resulted in ABC forming a view that EPS will likely be 34c to 36c per share for FY08." According to The Australian, Mr. Horton explained: "This guidance is prior to any transaction with Morgan Stanley in relation to the US business, the impact of which will be announced if and when such (a) transaction is consummated." The Troubled Company Reporter-Asia Pacific reported on April 8, 2008, that ABC may finalize a deal with Morgan Stanley on the sale of its U.S. assets by the end of this year. ABC, adds The Australian, said its proposal to Morgan Stanley on the sale of its U.S. assets was "ongoing." 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. ALLCO FINANCE: To Sell Leasing Unit as Part of Restructuring ------------------------------------------------------------ Allco Finance Group Ltd. plans to sell its Alleasing business as part of a corporate restructure, Florence Chong writes for The Australian. The Australian relates that in a statement to the Australian Securities Exchange, Allco said it was in the process of appointing corporate advisers to manage a potential sale process. Alleasing, states The Australian, has received "a number of expressions of interest" from potential buyers in Australia and from overseas. Danny John of The Age quotes an Allco spokesman as saying, "There have been 20 interested parties with offers in excess of the debt." A source of The Australian disclosed that the business would be sold to the "appropriate" buyer with the highest offer. The Age notes that any planned disposal of Alleasing will need the backing of investors who hold securities known as "hybrids." Allco's managers are in the process of appointing corporate advisors who would field detailed offers for the business, offers that would be passed on to the holders of the "hybrids" to allow them "to make an informed decision." Alleasing revealed that it had been given an 11-week extension by its senior lender to start repaying AU$40 million of debt, states The Age. The Australian notes that Alleasing generated income totaling AU$37.5 million in the six months to December 31, 2007 -- up 10% on the corresponding period in 2006; but it posted a net loss before tax of AU$7.5 million. About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid puttings its operations in the hands of administrators. According to The Age, Allco board is faced with four problems: -- Meeting a fast-approaching deadline to refinance at least US$250 million in debt. -- Ensuring there is enough cash to cover its continuing, and much larger, loan commitments. -- Renegotiating or pulling out of a recently announced joint venture deal to buy US$1.7 billion of US power stations, of which Allco would fund half by debt and equity. -- Signing the company's accounts, for which they will be personally liable, that would allow the suspension on Allco's beleaguered shares to be lifted. CHRYSLER: Outsources IT Management Department & Cuts 200 Jobs ------------------------------------------------------------- Chrysler LLC completed its multi-year contracts with India-based Tata Consultancy Services and Virginia-based Computer Sciences Corp. to outsource some of its information technology management, maintenance, and support, Reuters reports citing company spokesman Kevin Frazier. According to Reuters, the move will displace 20% of the 1,000 ITM staff, beginning May and completing in the third quarter, Mr. Frazier disclosed. The job cuts are part of the automaker's three-year Recovery and Transformation Plan, which will pursue and implement business strategies critical to the success of The New Chrysler, Reuters relates. 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. OPES PRIME: ASIC Says Director Smith May Be Involved in Cover-Up ---------------------------------------------------------------- The Australian Securities & Investments Commission says Opes Prime Group Ltd. Director Julian Smith may possibly be involved in covering up massive losses for certain clients just before the firm collapsed two weeks ago, Leonie Wood writes for The Sydney Morning Herald. The ASIC, relates Mr. Wood, has also made fresh allegations about what it called "double-counting" of shares, a practice it says shielded a handful of Opes' most favored clients from losing millions of dollars against their rapidly deteriorating portfolios. SMH states that the ASIC obtained urgent orders from Justice Ray Finkelstein in the Melbourne Federal Court forcing Mr. Smith to hand over his passport until April 11. Mr. Smith had previously booked a 10-day holiday in Fiji with his family and was due to leave April 13. Mr. Smith declined to comment about the allegations made by ASIC or the court order, says SMH. SMH relates that ASIC senior investigator Richard Vandeloo outlined how shares held in a particular Opes account, which was identified in court documents only as "EE", were lent to a company called Leveraged Capital Pty Ltd, then routed through a company registered in the British Virgin Islands before being delivered back to Opes in Australia. Leveraged Capital is jointly owned by Opes founder Laurie Emini and Mr. Smith, the report adds. In his affidavit, Mr. Vandeloo said there was some "double-counting" of shares in the EE account, and that the effect of double-counting "was to avoid margin calls on certain client accounts," relates SMH. SMH reports that according to Mr. Vandeloo, Mr. Emini and Mr. Smith were suspected of having "an interest" in another account identified as "BB", which had defaulted on paying AU$38 million. SMH further quotes Mr. Vandeloo as saying, "Mr. Smith may have had knowledge or been involved in the double-counting of stock held by an entity EE and possibly also in the concealing of the true financial position of the client account, BB." 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 , providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008 that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group's affairs to quantify the likely liability to OPSL's clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. OPES PRIME: Ex-mob Boss to Track AU$1BB Worth of Assets Overseas ---------------------------------------------------------------- Former underworld boss Mick Gatto and a group of Melbourne business associates left Australia on April 8 to hunt down more than AU$1 billion worth of assets they believe are hidden by Opes Prime Group Ltd., Adele Ferguson writes for The Australian. According to the report, Mr. Gatto, who now runs a successful crane company and industrial mediation business, said he did not have any personal wealth tied up with Opes, but many of his friends and associates had hundreds of millions of dollars frozen inside Opes Prime. Mr. Gatto would not identify his clients or friends, but it is understood several are company directors, relates The Australian. Mr. Gatto told The Australian he is organizing a class action in a bid to get back money from Opes owed to his friends and associates. Mr. Gatto has held meetings with investors at Society restaurant in Melbourne over the past week. The Australian quotes Mr. Gatto as saying, "The game-plan is to track down missing money overseas. I reckon it's over AU$1 billion, and I have a good track record of tracking things down. You can run but you can't hide, and you can quote me on that." Mr. Gatto, who would not reveal the countries he planned to visit or how long he would be away, told The Australian that a number of associates had given him some leads regarding overseas assets and the purpose of the trip was to piece together information with a view to getting the money back for his clients. The Australian notes that Opes had operations in Singapore and Middle East. Opes also had two arm's-length companies-- Leveraged Capital and Hawkswood -- that dealt with the company through a British Virgin Islands-registered company called Riqueza. ABC News writes that Mr. Gatto will be visiting many offices but Opes Prime will not be one of them because they are looking for the money, "not the company." According to ABC News, Mr. Gatto, who escaped jail after pleading self-defense in the killing of an underworld hitman in 2004, says he will not be using violence in his negotiations. "We never use violence. It's always done amicably and there's no evidence that I've ever used violence ever. I would've been charged in a heartbeat," Mr. Gatto told ABC News. 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 , providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008 that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group's affairs to quantify the likely liability to OPSL's clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. OPES PRIME: Administrator Says Creditors May Recover 30% -------------------------------------------------------- John Lindholm of Ferrier Hodgson, one of the administrators of Opes Prime Group Ltd., said clients may be able to recover 30% of their assets, Richard Gluyas writes for The Australian. The report states that Mr. Lindholm disclosed the news to creditors on April 8 at a creditors meeting. Mr. Lindholm, in a news conference, said he is taking control of Riqueza, a British Virgin Islands-incorporated company that owes Opes AU$101 million, The Australian relates. Riqueza, states Mr. Lindholm, was a "linchpin" in the investigation, due to the company's role as an intermediary in a number of Opes transactions, The Australian adds. The Australian notes that Riqueza is reportedly owned by a Singapore-based businessman Jay Moghe, who is the sole director. Riqueza, reports The Australian, transacted with two other Opes group companies -- Hawkswood Investments and Leveraged Capital -- both of which are owned by Mr. Emini in combination with one or both of his fellow Opes directors, Julian Smith and Anthony Blumberg. According to the report, Mr. Lindholm attributed Opes' demise to a series of irregular transactions, with a number of them carried out through Riqueza. Colin Kruger of The Sydney Morning Herald relates that Leveraged Capital owed Riqueza AU$43 million and Hawkswook owed Riqueza AU$142 million. SMH reports that while a higher return than 30 cents on the dollar may be possible, it is dependent on a number of factors: * the recovery of debts totaling AU$253 million from at least one company associated with Opes and "problem" accounts; and * the recoveries available if the company is put into liquidation. 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 , 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. PSIVIDA LTD: Orbis Investment Holds 5.19% Equity Stake ------------------------------------------------------ Orbis Investment Management (Australia) Pty Limited disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that it may be deemed to beneficially own 37,983,297 shares or 5.19% of pSivida Limited's common stock. pSivida is a global drug delivery company committed to the biomedical sector and the development of drug delivery products. Retisert is FDA approved for the treatment of uveitis. Vitrasert is FDA approved for the treatment of AIDS-related CMV Retinitis. Bausch & Lomb owns the trademarks Vitrasert and Retisert. pSivida has licensed the technologies underlying both of these products to Bausch & Lomb. The technology underlying Medidur for diabetic macular edema is licensed to Alimera Sciences and is in Phase III clinical trials. pSivida has a worldwide collaborative research and license agreement with Pfizer Inc. for other ophthalmic applications of the Medidur technology (excluding FA). pSivida owns the rights to develop and commercialize a modified form of silicon (porosified or nano-structured silicon) known as BioSilicon, which has applications in drug delivery, wound healing, orthopedics, and tissue engineering. The most advanced BioSilicon(TM) product, BrachySil delivers a therapeutic, P32 directly to solid tumors and is presently in Phase II clinical trials for the treatment of pancreatic cancer. pSivida's intellectual property portfolio consists of 64 patent families, 113 granted patents, including patents accepted for issuance, and over 280 patent applications. pSivida conducts its operations from Boston in the United States, Malvern in the United Kingdom and Perth in Australia. pSivida is listed on NASDAQ, the Australian Stock Exchange and on the Frankfurt Stock Exchange on the XETRA system. pSivida is a founding member of the NASDAQ Health Care Index and the Merrill Lynch Nanotechnology Index. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte noted that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== BALI INTERNATIONAL: Members' Meeting Set for April 29 ----------------------------------------------------- Members of Bali International Finance (Nominees) Limited will have their final general meeting on April 29, 2008, at Units 1201-10 & 14-16, CITIC Tower, 12th Floor, 1 Tim Mei Avenue, 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: Lo Wai On Units 1201-10 & 14-16 CITIC Tower, 12th Floor 1 Tim Mei Avenue, Central Hong Kong CHINA SOUTHERN: Reports April Traffic Results --------------------------------------------- China Southern Airlines Co. Ltd. carried 4.86 million passengers in March, up 5.9% year-on-year, tradingmarkets.com reports. According to the report, in a statement on its Web site, the airline said it carried 75,620 tons of cargo last month, up 2.7% year-on-year. The passenger load factor in March was 74.5%, up 0.9 percentage point from a year earlier, while the overall load factor was up 1.4 percentage points at 66.3%, the airline said, tradingmarket.com relates. The report adds that in the first quarter ended March, the airline carried 13.98 million passengers, up 11.2% year-on-year, and 214,570 tons of cargo, up 12.6%. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. As reported on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. Fitch said the outlook on the ratings remains stable. CHINA TRADING: Appoints Au Chun Keung as Liquidator --------------------------------------------------- Members of China Trading International Limited appointed Au Chun Keung as the company's liquidator. The liquidator can be reached at: Au Chun Keung Flat B, 4th Floor Village Gardens 17 Fa Po Street Yau Yat Chuen Kowloon, Hong Kong CHINA WORLD TRADE: Auditor Raises Going Concern Doubt ----------------------------------------------------- In a letter dated March 28, 2008, to the board of directors and Shareholders of China World Trade Corporation, Child, Van Wagoner & Bradshaw, PLLC, of Salt Lake City, Utah, raised substantial doubt about the company's ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended December 31, 2007, and 2006. The auditor notes that the company has suffered losses from operations during the year. As of December 31, 2007, the Company had net loss of US$2,285,036. A year earlier, the Company posted a net loss of US$10,090,975. In a regulatory filing with the U.S. Securities and Exchange Commission, China World Trade said: "Continuation of the Company as a going concern is dependent upon obtaining additional working capital through additional equity funding and attaining profitable operations in the future. Management has developed a strategy, which they believe can be accomplished and will enable the Company to operate in the future. However, there can be no assurance that the Company will be successful with their efforts to attain profitable operations. The inability of the Company to secure additional financing and attain profitable operations in the near term could adversely impact the Company�s business, financial position and prospects." The company's balance sheet as of December 31, 2007, showed illiquidity with US$1,753,028 in total current assets available to pay US$2,001,269 total current liabilities. The company, however, is solvent with total assets of US$10,005,181, total liabilities of US$2,001,269, and total stockholders' equity of US$8,003,912. A full-text copy of China World Trade's annual report is available for free at http://researcharchives.com/t/s?2a5a Headquartered in Guangzhou, People�s Republic of China, China World Trade Corporation was incorporated under the laws of the State of Nevada on January 29, 1998, as Weston International Development Corporation. On July 28, 1998, the name was changed to Txon International Development Corporation. On September 15, 2000, CWTC changed to its existing name. CWTC acts as an investment holding company. Its existing business plan involves the pursuit of three distinct lines of business including: (1) Business Clubs: Beijing World Trade Center Club and Guangzhou World Trade Center Club are located in Beijing and Guangzhou respectively. Each business club is indirectly associated with the World Trade Center Association, by which the company has positioned itself as a platform to facilitate trade between China and the world markets. The company also operates CEO Clubs China chapter in Beijing under this business sector. (2) Tourism & Hotel Management: The company provides hotel management services, including hotel design, pre-opening and hospitality management services in China under this business sector through CWT Hotel Management Limited. (3) Investment & Consultancy Services: The company provides technology and infrastructure expertise and investment to China-based development projects in key cities through CWT Investment Services Limited. CHINA WORLD TRADE: Signs Share Exchange Pact With Uonlive --------------------------------------------------------- On March 28, 2008, China World Trade Corporation entered into a Share Exchange Agreement with: -- William Chi Hung Tsang, China World Trade Chairman and President; -- Hong Kong-based Uonlive Limited; -- Tsun Sin Man Samuel, Chairman of Uonlive; -- Hui Chi Kit, Chief Financial Officer of Uonlive; and -- Parure Capital Limited, parent of Uonlive. Mr. Tsun and Mr. Hui are holders of all of the outstanding capital stock of Parure Capital. Upon closing of the share exchange transaction, Messrs. Tsun and Hui transferred all of their share capital in Parure Capital to China World Trade in exchange for 150,000,000 shares of common stock and 500,000 shares of Series A Convertible Preferred Stock of China World Trade, which is convertible after six months from the date of issuance into 100 shares of common stock, thus causing Parure Capital to become a direct wholly owned subsidiary of China World Trade. In a regulatory filing with the Securities and Exchange Commission, China World Trade disclosed that pursuant to the terms and conditions of the Exchange Agreement: (1) On the Closing Date, the current officers of China World Trade resigned and the persons chosen by Uonlive were appointed as the officers of China World Trade, notably: -- Tsun Sin Man Samuel, as Chairman; -- Cheung Chi Ho, as Chief Executive Officer; and -- Wong Kin Yu, as Chief Operating Officer. Mr. Tsang and Zeliang Chen resigned from their positions as directors and officers. CM Chan resigned from his position as CEO, Larry Wei Fan will remain as CFO until further notice, and Messrs. Tsun and Cheung filled the vacancies on the Board created by their resignation. (2) On the Closing Date, the remaining members of the Board, namely Xiao Lei Yang, Chao Ming Luo and Ye Xin Long resigned from their positions as a director and will be replaced by persons designated by Uonlive, notably Carol Kwok, Zeng Yang and Wong Kin Yu. (3) On the Closing Date, China World Trade paid and satisfied all of its �liabilities.� (4) As of the Closing, the parties consummated the remainder of the transactions contemplated by the Exchange Agreement, including the transfer of all of China World Trade's subsidiaries to Top Speed Technologies Limited, a British Virgin Islands corporation owned by William Tsang, pursuant to a sale and purchase agreement in consideration of cancellation of indebtedness owed by CWTD to William Tsang. Headquartered in Guangzhou, People�s Republic of China, China World Trade Corporation was incorporated under the laws of the State of Nevada on January 29, 1998, as Weston International Development Corporation. On July 28, 1998, the name was changed to Txon International Development Corporation. On September 15, 2000, CWTC changed to its existing name. CWTC acts as an investment holding company. Its existing business plan involves the pursuit of three distinct lines of business including: (1) Business Clubs: Beijing World Trade Center Club and Guangzhou World Trade Center Club are located in Beijing and Guangzhou respectively. Each business club is indirectly associated with the World Trade Center Association, by which the company has positioned itself as a platform to facilitate trade between China and the world markets. The company also operates CEO Clubs China chapter in Beijing under this business sector. (2) Tourism & Hotel Management: The company provides hotel management services, including hotel design, pre-opening and hospitality management services in China under this business sector through CWT Hotel Management Limited. (3) Investment & Consultancy Services: The company provides technology and infrastructure expertise and investment to China-based development projects in key cities through CWT Investment Services Limited. The company's independent auditor, Child, Van Wagoner & Bradshaw, PLLC, of Salt Lake City, Utah, raised substantial doubt about the company's ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended December 31, 2007, and 2006. The auditor noted that the Company has suffered losses from operations during the year. As of December 31, 2007, the Company had net loss of US$2,285,036. A year earlier, the Company posted a net loss of US$10,090,975. GOLD LEADER: Appoints New Liquidator ------------------------------------ Members of Gold Leader Investment Limited appointed Eric Hil Lan Chung as the company's liquidator. The liquidator can be reached at: Eric Hil Lan Chung Marina House, Room 2001 68 Hing Man Street Sai Wan Hon Hong Kong GRAND TOYS: Centralink, et al., Hold 91.2% Equity Stake ------------------------------------------------------- In a regulatory filing with the U.S. Securities and Exchange Commission, Centralink Investments Limited, Cornerstone Beststep International Limited, and Cheng Hsieh disclosed that they may be deemed to beneficially own 9,741,157 shares or 91.2% of Grand Toys International Limited's common stock. The amount includes 145,454 American Depositary Shares that they would beneficially own if they exchanged the 727,272 ordinary shares of pSivida Limited beneficially owned by them for ADSs. Centralink Investments and Cornerstone Beststep are limited companies organized under the laws of the British Virgin Islands and have their principal businesses are in Hong Kong. The sole director and executive officer of both companies is Mr. Hsieh. Headquartered in Hong Kong, Grand Toys International Limited -- http://www.grand.com/-- licenses and distributes toys for various toy makers through a number of subsidiaries. In addition, the company's Hua Yang subsidiary manufactures pop-up, novelty, and board books. Through its Kord brand, the company makes party and paper products such as party hats, banners, paper plates, and costumes. The company is undergoing a restructuring to focus on its most profitable units. Going Concern Doubt After auditing Grand Toys International Limited's annual report for the period ended Dec. 31, 2006, its independent auditor, BDO McCabe Lo Limited, raised substantial doubt on the company's ability to continue as a going concern, citing its loss from operations for the year and substantial cumulative losses and working capital deficiency. In a reported dated October 12, 2007, the auditor noted that the company incurred recurring losses since 2004. The company's net loss from continuing operations (as restated) for the years ended December 31, 2006, and 2005 amounted to US$11.3 million and US$0.9 million, respectively. The company's cumulative losses as of December 31, 2006, and 2005 were US$48.0 million and US$25.5 million, respectively. Further, the company's working capital deficiency amounted to US$9.3 million as of December 31, 2006. HUA XIA: Seeking Overseas Listing by 2012, Report Says ------------------------------------------------------ Hua Xia Bank Co. Ltd. is seeking an overseas listing by 2012, the 21st Century Business Herald reports citing the bank's development plan for 2008-2012. The bank may also issue additional A-shares and introduce domestic financial institutions as strategic investors during the period, the report adds. Thomson Financial News relates, citing the 21st Century Business Herald, these exercises are intended to boost Hua Xia Bank's capital adequacy ratio to over 10% by the end of 2012, from 8.27% in 2007. The bank also plans to bring down its non- performing loan ratio to less than 2% by 2012, the report relates. According to the Herald, Hua Xia Bank booked 2007 net profit of CNY2.1 billion, up 44.2%; the NPL ratio was 2.25% at end-2007. 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. KATRADE INTERNATIONAL: Members' Meeting Set for May 6 ----------------------------------------------------- Members of Katrade International Limited will have their final general meeting on May 6, 2008, at Unit A, JCG Building, 14th Floor, 16 Mongkok Road, Mongkok, Kowloon, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. KID CASTLE: Brock Schechter Expresses Going Concern Doubt --------------------------------------------------------- Brock, Schechter & Polakoff, LLP, in Buffalo, N.Y., raised substantial doubt about the ability of Kid Castle Educational Corporation to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor reported that the company has suffered previous losses from operations and has small capital equity. The company posted a net income of US$1,877,149 on total revenues of US$11,236,612 for the year ended Dec. 31, 2007, as compared with a net loss of US$46,211 on total revenues of US$9,711,583 in the prior year. At Dec. 31, 2007, the company's balance sheet showed US$11,161,285 in total assets, US$10,478,940 in total liabilities, US$162,343 in minority interest and US$520,002 in stockholders' equity. A full-text copy of the company's 2007 annual report is available for free at: http://ResearchArchives.com/t/s?2a41 About Kid Castle Kid Castle Educational Corporation, (Other OTC: KDCE.PK) -- http://www.kidcastle.com -- through its Kid Castle Language Schools, teaches English to some 1 million Chinese children age two to 12. Kid Castle has about 350 franchised schools in Taiwan and China; more than 5,000 schools use its materials, which include CDs, tapes, and other multimedia; Chinese and English textbooks; and English magazines. Its after-school language classes, many of which are taught by foreign native English- speakers, focus on spoken, rather than written skills. The company recruits teachers from universities in English-speaking countries. Directors Min-Tang Yang and Suang-Yi Pai own 37% and 19%, respectively. Kid Castle Educational Corporation is headquartered in Taipei, Taiwan, Republic of China. OASIS AIRLINES: Applies for Voluntary Liquidation ------------------------------------------------- Oasis Hong Kong Airlines Ltd., a 17-month-old budget carrier, stopped flying on April 9, 2008, Bloomberg News reports. The carrier has applied for a voluntary liquidator and is seeking new investors, Chief Executive Officer Stephen Miller said at a Hong Kong press conference, as intercepted by Bloomberg. Quoting from an earlier report by the Hong Kong Economic Times, Bloomberg relates that Oasis Airlines had accumulated losses of as much as HK$1 billion (US$128 million) and was losing more than HK$1 million a flight. The carrier became the fourth airline worldwide to halt operations in less than two weeks amid surging fuel costs, Bloomberg notes. Oasis Airlines followed ATA Airlines Inc., Aloha Airgroup, Inc., and Skybus Airlines, Inc., which ceased operations since March 31, Bloomberg adds. "The competition among airlines is fierce in Hong Kong," Edward Wong, an aviation analyst at Quam Ltd., told Bloomberg. "The rising oil price affects carriers globally." Oasis began flying to London in October 2006 and added services to Vancouver about a year ago, Bloomberg says. It initially offered tickets to Gatwick for as little as HK$1,000 one-way, less than 20% the price then charged by Cathay Pacific Airways Ltd. for flights to Heathrow, the report relates. According to Bloomberg, the airline was set up by Chairman Raymond Lee, a minister and property investor. Mr. Lee and his wife were among backers who committed US$100 million in funds to the airline before it began flying, Bloomberg says. Unlike low- cost short-haul carriers, Oasis offered passengers free meals and in-flight entertainment, as well as business-class seats, the report notes. Oasis passengers with bookings should call the airline's hotline, Mr. Miller said at the press conference, Bloomberg says. KPMG will act as the liquidator, the report discloses. Bloomberg recalls that Oasis said last month it was in talks with investors as it sought funds to help start as many as three new routes this year. PETROLEOS DE VENEZUELA: Eyes 5MM Barrels/Year From Joint Venture ---------------------------------------------------------------- Petroleos de Venezuela SA's Exploration and Production Vice President Luis Vierma said that the company's joint venture with China National Petroleum Corp. Service and Engineering Ltd. will produce five million barrels oil oil per year in 2015. As reported in the Troubled Company Reporter-Latin America on April 7, 2008, Petroleos de Venezuela would form a joint venture with CNPCSE for oil operations and services. The joint venture will strengthen the Venezuelan operations through the use of Chinese personnel and technology to consolidate the formers sovereignty in energy. The joint venture should handle 30% of oil activities in Venezuela. Petroleos de Venezuela said that it would fulfill its plan to increase production to 5.8 million barrels per day by 2012, Steven Bodzin at Bloomberg News relates. 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: Mulls Programs to Explore & Produce Oil --------------------------------------------------------------- Petroleos de Venezuela SA's board has examined programs to explore and produce oil, Prensa Latina reports, citing company sources. Prensa Latina's unnamed sources said the board is also analyzing the firm's 2007 results. Prensa Latina relates that the stages of the Mariscal Sucre Project were evaluated: -- exploitation plan, -- leasing of drills, -- underwater systems, -- objectives, and -- progress. The board also discussed the boat drill Neptune Discoverer's upcoming arrival to Venezuela. The boat will drill the first wells Costa Afuera in the fields of Dragon and Patao, and then transport the gas to the Industrial Complex Gran Mariscal de Ayacucho, Prensa Latina states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. SANCON RESOURCES: Kabani & Company Expresses Going Concern Doubt ---------------------------------------------------------------- Kabani & Company, Inc., in Los Angeles, California, raised substantial doubt about Sancon Resources Recovery Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's accumulated deficit of US$284,558 as of Dec. 31, 2007, and working capital deficiency of US$489,589. The company posted a net loss of US$167,843 on total revenues of US$6,070,830 for the year ended Dec. 31, 2007, as compared with a net income of US$17,902 on total revenues of $3,447,402 in the prior year. At Dec. 31, 2007, the company's balance sheet showed US$1,587,936 in total assets, US$1,575,309 in total liabilities, US$153,220 in minority interest and US$140,593 in total stockholders' deficit. A full-text copy of the company's 2007 annual report is available for free at: http://researcharchives.com/t/s?2a64 About Sancon Resources Sancon Resources Recovery Inc. (OTC BB: SRRY.OB) -- http://www.sanconinc.com/-- is an industrial waste recycling company with operations based in Hong Kong, China and Australia. Sancon currently exports more than 25,000 tons of recycled industrial waste material annually to its processing partners and manufacturers in China. SHK FOREXCHANGE: Members' Meeting Set for April 29 -------------------------------------------------- Members of SHK Forexchange Management Limited will have their final general meeting on April 29, 2008, at Units 1201-10 & 14-16, CITIC Tower, 12th Floor, 1 Tim Mei Avenue, 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: Lo Wai On Units 1201-10 & 14-16 CITIC Tower, 12th Floor 1 Tim Mei Avenue, Central Hong Kong SONIE GARMENTS: Members' Meeting Set for May 2 ---------------------------------------------- Members of Sonie Garments Manufacturing Company Limited will have their final general meeting on May 2, 2008, at Wing Yee Commercial Building, 2nd Floor, 5 Wing Kut Street, 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: Lam Hoo Sum Wing Yee Commercial Building, 2nd Floor 5 Wing Kut Street Central, Hong Kong SKY BLUE: Creditors' Meeting Set for May 2 ------------------------------------------ Creditors of Sky Blue Management Limited will have their meeting on May 2, 2008, in Room 2601, The Centrium, 26th Floor at 60 Wyndham Street, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. SUCCESS ERA: Appoints New Liquidators ------------------------------------- Members of Success Era Investments Limited appointed Chui Wai Hon and Lau Wai Ming as the company's liquidators. The liquidator can be reached at: Chui Wai Hon Lau Wai Ming Rooms 603-4 Hang Seng Wanchai Building, 6th Floor 200 Hennessy Road, Wanchai Hong Kong SUN LOONG CAPITAL: Members' Meeting Set for April 29 ---------------------------------------------------- Members of Sun Loong Capital Limited will have their final general meeting on April 29, 2008, at Units 1201-10 & 14-16, CITIC Tower, 12th Floor, 1 Tim Mei Avenue, 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: Lo Wai On Units 1201-10 & 14-16 CITIC Tower, 12th Floor 1 Tim Mei Avenue, Central Hong Kong SUN LOONG ON-LINE: Members' Meeting Set for April 29 ---------------------------------------------------- Members of Sun Loong On-Line Investment Service (H.K.) Limited will have their final general meeting on April 29, 2008, at Units 1201-10 & 14-16, CITIC Tower, 12th Floor, 1 Tim Mei Avenue, 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: Lo Wai On Units 1201-10 & 14-16 CITIC Tower, 12th Floor 1 Tim Mei Avenue, Central Hong Kong ========= I N D I A ========= GENERAL MOTORS: Plastech Can Get Funding From Lender Consortium --------------------------------------------------------------- Crain's Detroit Business and The Detroit Free Press report that the Honorable Phillip Shefferly of the U.S. Bankruptcy Court for the Eastern District of Michigan has granted Plastech Engineered Products, Inc., and its debtor-affiliates authorization to: i) transfer the DIP facility to a new lender selected and formed by their Debtors' major customers General Motors Corporation, Ford Motor Company, Johnson Controls Inc.; and ii) continue to draw under the interim facility provided provide for a continuation of the interim postpetition facility provided by Bank of America, N.A., pending the transfer. A draft amendment, dated March 31, 2008, to the Postpetition Loan and Security Agreement signed by Plastech and Bank of America provides that the maturity date of the revolving credit facility will be extended to April 30, 2008, and the maximum amount available under the facility will be raised to US$51,500,000 equal to: -- US$44,703,000, plus -- additional amounts delivered by the major customers. A full-text copy of the proposed Fifth Amendment to the DIP Agreement is available for free at: http://researcharchives.com/t/s?2a08 Crain's Detroit Business said Judge Shefferly approved the transfer of post-April 30 financing responsibilities to Plastech's major customers -- GM, Ford, Johnson Controls and possibly Chrysler. Details of the agreement remain subject to further negotiation and final judicial approval, according to the report. According to the Detroit Free Press, bankruptcy experts say Plastech's decision to obtain loans from its customers -- and not banks or equity firms -- is an example of the alternatives that reorganizing companies are turning to as more traditional lenders tighten their lending and require more onerous terms for bankruptcy loans. The credit crunch has made it difficult for firms in bankruptcy to find loans to exit court protection, leading to longer stays and greater need for financing while under Chapter 11, it added. The Final DIP Facility is scheduled for hearing on April 30, 2008. The Debtors have filed a budget for the period from March 24, 2008 to May 4, 2008. A copy of the budget is available for free: http://researcharchives.com/t/s?2a09 Parties Now Consent to New Funding Key parties-in-interest, including some objections, in the Chapter 11 cases have signed a statement of consent to an interim order allowing the Debtors' entry into a DIP facility sponsored by the Debtors' major customers. The parties who signed the document, which was posted in the Court's docket on April 3, 2008, include: -- The Steering Committee of First Lien Term Loan Lenders; -- Bank of America -- Goldman Sachs Credit Partners L.P., as Pre-Petition First Lien Term Agent; -- The Official Committee of Unsecured Creditors; -- Asahi Kasei; -- M&I Equipment Finance Company; -- Wells Fargo Equipment Finance, Inc. and The Huntingdon National Bank; -- RBS Asset Finance, Inc.; -- Johnson Controls, Inc.; -- Chrysler, LLC, Chrysler Motors Counsel to General Motors Corporation LLC and Chrysler Canada Inc.; -- Ford Motor Company; and -- U.S. Bancorp Equipment Finance, Inc. Under the proposed transactions, the New DIP Lender will purchase the BofA Facility and provide the Debtors with additional funding pursuant to an US$80,000,000 DIP Financing. About Ford Motor Company Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on March 28, 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) forUS$2.3 billion (beforeUS$600 million of pension contributions by Ford for Jaguar-Land Rover). As reported in the Troubled Company Reporter on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. 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. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 15; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. GENERAL MOTORS: Court Extends Indemnification Pact With Delphi -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York extended an indemnification agreement between Delphi Corp. and General Motors Corp. for an additional 15 days up to April 15, 2008, if GM extends its benefit guarantee agreement with the United Automobile, Aerospace and Agricultural Implement Workers of America by at least the same period of time. As reported in the Troubled Company Reporter on June 26, 2007, the United Automobile, Aerospace and Agricultural Implement Workers of America, Delphi, and GM entered into a memorandum of understanding. Among other things, the UAW-Delphi-GM Memorandum of Understanding was designed to enable Delphi's continued transformation to more competitive wage and benefit levels and to address divestiture, work rules, and staffing level issues in the Debtors' workforce. Pursuant to the UAW-Delphi-GM Memorandum of Understanding, the UAW, Delphi, and GM also agreed to the "Term Sheet#Delphi Pension Freeze and Cessation of OPEB, and GM Consensual Triggering of Benefit Guarantee," which facilitates the freezing of Delphi's pension plan and the assumption of billions of dollars of OPEB liabilities by GM, thereby dramatically reducing Delphi's ongoing benefit costs. The UAW-Delphi-GM Memorandum of Understanding was ratified by the UAW membership on June 28, 2007, and approved by the Court on July 19, 2007. The UAW-Delphi-GM Memorandum of Understanding extended the time period for certain of GM's obligations under the Sept. 30, 1999 Benefit Guarantee Agreement between GM and the UAW to March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31, 2007. Delphi and GM also agreed that the eighth anniversary date reference in the Indemnification Agreement would be extended until March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31. The Debtors' Chapter 11 Plan, however, was not confirmed and substantially consummated by Dec. 31. Nonetheless, the UAW-Delphi-GM Memorandum of Understanding additionally provided that the March 31, 2008 UAW Benefit Guarantee extension date would be extended to "such later date as Delphi and GM will agree to extend the Indemnification Agreement expiration." Under the provisions of the Memorandum of Understanding approved by the Court on July 19, 2007, the Debtors believe that they already have authority to extend the Indemnification Agreement for additional time periods. Out of an abundance of caution, however, and as a result of GM's unique role in the Chapter 11 cases, the Debtors sought the Court's authority to extend the Indemnification Agreement. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, said an extension will allow Delphi's indemnification obligations under the Indemnity Agreement to continue uninterrupted until it has emerged from Chapter 11. If the Plan is not consummated, the extension will also provide additional time for the Debtors to consider whether additional extensions are appropriate or viable. The extension, in the exercise of the Debtors' business judgment, is in the best interests of the Debtors' estates, creditors, and other parties-in-interest, including Delphi's employees, Mr. Butler asserted. Mike Ramsey at Bloomberg News, citing a Deutsche Bank AG analyst, reports that GM may give up cash and preferred shares, and assume more pension liability, to help Delphi leave bankruptcy. Forfeiting the cash and shares would increase Delphi's liquidity and make the company more attractive to investors, analyst Rod Lache said in a research note on Monday, according to Bloomberg. The report said more GM help may be needed after Appaloosa Management LP, which led an investor group that was to provide Delphi with US$2.55 billion in financing, pulled out last week after stating that Delphi failed to meet conditions. Delphi has said it had met all requirements, Bloomberg says. Pursuant to Delphi's confirmed plan of reorganization, Bloomberg notes, GM is to receive preferred shares worth US$1.07 billion and US$175 million in cash, and will assume US$2 billion in first-lien loans and up to US$825 million in second-lien loans. Delphi could eliminate a US$1.25 billion pension contribution required after exit if GM assumed that liability, the analyst's report said, according to Bloomberg. Dropping GM's other claims would give Delphi more cash and lower the effective cost to investors of buying the company, and also could slice the required outside equity investment to US$1.3 billion from US$2.5 billion, Mr. Lache said, according to Bloomberg. It also would lower the effective price of the company to 3.5 times projected earnings before interest, taxes, depreciation and amortization, from the current multiple of 4.9, the research note indicated. Bloomberg says the changes by GM would require Delphi to scrap its bankruptcy plan and create a new one that would need the approval of the U.S. bankruptcy court and creditors. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. GMAC LLC: Buys US$1.2 Billion of Residential Capital's Debt ----------------------------------------------------------- GMAC LLC purchased US$1.2 billion of Residential Capital LLC's notes in open market. The notes have a fair value of approximately US$607,192,000 to ResCap in exchange for 607,192 ResCap Preferred units with a liquidation preference of US$1,000 per unit. ResCap canceled the US$1.2 billion face amount of notes. GMAC may, in its sole discretion, on or before May 31, 2008, contribute up to an additional approximately US$340 million of ResCap notes, having a fair value of approximately US$265,779,000, for additional ResCap Preferred units. The ResCap Preferred ranks senior in right of payment to ResCap's common membership interests with respect to distributions and payments on liquidation, winding-up or dissolution of ResCap. The ResCap Preferred pays quarterly distributions at the rate of 13% of the liquidation preference when, as and if authorized by ResCap's board of directors. ResCap may not pay distributions on its common membership interests if any Preferred Distributions have not been paid, or sufficient funds have not been set aside for such payment, for the then-current quarterly period. Preferred Distributions are not cumulative. ResCap is prohibited by the Operating Agreement between it and GMAC from paying distributions on any of its membership interests. The ResCap Preferred is redeemable at ResCap's option on any Preferred Distribution payment date if approved by ResCap's board of directors, including a majority of the independent directors, in whole or in part for 100% of its liquidation preference plus any authorized but unpaid dividends on the ResCap Preferred being redeemed. The ResCap Preferred is exchangeable at GMAC's option on a unit- for-unit basis into preferred membership interests in IB Financing Holdings LLC at any time on or after Jan. 1, 2009, so long as neither ResCap nor any of its significant subsidiaries was the subject of any bankruptcy proceeding on or before that date. The ResCap Preferred has no voting rights, except as required by law, and is not transferable by GMAC to any party other than a wholly-owned affiliate of GMAC without the consent of ResCap's board, including a majority of the independent directors. IB Finance owns GMAC Bank, an industrial loan corporation. ResCap owns the non-voting common interests and GMAC owns the voting common interests in IB Finance. ResCap and GMAC contribute capital to and share earnings and distributions from IB Finance based on the performance of the mortgage division and the automotive division of GMAC Bank. ResCap, GMAC and IB Finance have entered into an agreement that provides that, if GMAC elects to exchange the ResCap Preferred for IB Preferred, IB Finance will allocate capital attributable to the IB Mortgage Common to the IB Preferred in an amount equal to the liquidation preference of the ResCap Preferred being exchanged, which will then be issued to GMAC. The IB Preferred ranks senior in right of payment to the IB Mortgage Common with respect to distributions and payments on liquidation, winding-up or dissolution of IB Finance. The IB Preferred has no claims to the assets attributable to the IB Automotive Common. The IB Preferred pays quarterly distributions at the rate of 10% of the liquidation preference when, as and if authorized by IB Finance's board out of funds attributable to IB's mortgage finance operations. IB Finance may not pay distributions on the IB Mortgage Common interests if preferred distributions on the IB Preferred have not been paid, or sufficient funds for such payments have not been set aside, for the then-current quarterly period. Preferred distributions on the IB Preferred are not cumulative. The IB Preferred is redeemable at the option of ResCap's independent directors on any preferred distribution payment date in whole, or in part for 100% of its liquidation preference plus any authorized but unpaid distributions on the IB Preferred. The IB Preferred has no voting rights, except as required by law, and is not transferable by GMAC to any party other than a wholly-owned affiliate of GMAC without the consent of ResCap's independent directors. About Residential Capital Headquartered in Minneapolis, Minnesota, Residential Capital LLC -- http://www.rescapholdings.com/-- is the home mortgage unit of GMAC Financial Services, which is in turn wholly owned by GMACLLC. About GMAC LLC GMAC LLC, based in Detroit, is a provider of retail and wholesale auto financing, auto insurance and warranty products, and through its wholly-owned subsidiary Residential Capital LLC, residential mortgage products and services. GMAC reported a preliminary 2007 fourth quarter consolidated net loss of $724 million. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. * * * As reported in the Troubled Company Reporter on March 5, 2008, Fitch Ratings downgraded and removed from Rating Watch Negative the long-term Issuer Default Rating GMAC LLC and related subsidiaries to 'BB' from 'BB+'. Fitch also affirmed the 'B' short-term ratings. Fitch originally placed GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating Outlook is Negative. Approximately US$100 billion of unsecured debt is affected by this action. As reported in the Troubled Company Reporter on Feb. 25, 2008, Standard & Poor's Ratings Services lowered its ratings on Residential Capital LLC and GMAC LLC. Residential Capital LLC was downgraded to 'B/C' from 'BB+/B'. GMAC LLC was downgraded to 'B+/C' from 'BB+/B'. The outlook for both entities is negative. GMAC LLC: To Buy Remaining CARAT 2005-SN1 on April 15 ----------------------------------------------------- GMAC Financial Services will exercise its option to purchase the remainder of Capital Auto Receivables Asset Trust 2005-SN1 on April 15, 2008. This will result in a termination of all of the outstanding CARAT 2005-SN1 Class B-1, B-2, and C asset-backed notes. The Class B-1 and B-2 notes will be purchased atUS$1,000 per US$1,000 face amount, plus accrued interest from March 17, 2008. A total of US$10.0 million Class B-1 4.830 percent asset backed notes, and $70.0 million Class B-2 Libor + 0.750 percent asset backed notes were sold to the public in April 2005, of which US$6,185,994.24 Class B-1 asset backed notes and US$43,301,959.69 Class B-2 asset backed notes remain outstanding. The Class C notes will be purchased at US$1,000 per US$1,000 face amount, plus accrued interest from March 17, 2008. A total of US$70.0 million Class C Libor + 1.250 percent asset backed notes were sold to the public in April 2005. The notes may be presented and surrendered for payment to: Citibank N.A. Agency & Trust Services 15th Floor, 111 Wall Street New York, NY 10005 Interest on the notes will cease to accrue on and after April 15, 2008. About GMAC LLC GMAC LLC, based in Detroit, is a provider of retail and wholesale auto financing, auto insurance and warranty products, and through its wholly-owned subsidiary Residential Capital LLC, residential mortgage products and services. GMAC reported a preliminary 2007 fourth quarter consolidated net loss of $724 million. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. * * * As reported in the Troubled Company Reporter on March 5, 2008, Fitch Ratings has downgraded and removed from Rating Watch Negative the long-term Issuer Default Rating GMAC LLC and related subsidiaries to 'BB' from 'BB+'. Fitch has also affirmed the 'B' short-term ratings. Fitch originally placed GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating Outlook is Negative. ApproximatelyUS$100 billion of unsecured debt is affected by this action. As reported in the Troubled Company Reporter on Feb. 25, 2008, Standard & Poor's Ratings Services lowered its ratings on Residential Capital LLC and GMAC LLC. Residential Capital LLC was downgraded to 'B/C' from 'BB+/B'. GMAC LLC was downgraded to 'B+/C' from 'BB+/B'. The outlook for both entities is negative. HDFC BANK: To Release Annual Results on April 24 ------------------------------------------------ HDFC Bank Ltd's board of directors will hold a meeting on April 24, 2008, inter alia, to consider the annual accounts for the year ended March 31, 2008. The board may also recommend dividend for the year 2007-08. In the previous financial year -- year ended March 31, 2007 -- the bank recorded a net profit of INR11.41 billion, a 131% increase from the INR8.71 billion profit recorded in 2006. Total income increased from INR55.99 billion in FY2005-06 to INR84.05 billion in FY2006-07. Headquartered in Mumbai, India, HDFC Bank Limited -- http://www.hdfcbank.com/-- is a private sector bank that offers a range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank operates in three segments: retail banking, wholesale banking and treasury services. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking segment provides loans and transaction services to corporate and institutional customers. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 22, 2008, Standard & Poor's Ratings Services assigned these ratings to HDFC Bank's proposed debt issues under the US$1-billion medium-term notes program: -- 'BB+' rating to the lower Tier II subordinated notes to be issued; and -- 'BB' rating to the upper Tier II subordinated and hybrid Tier I notes to be issued. HDFC BANK: Shareholders OK Merger With Centurion Bank of Punjab --------------------------------------------------------------- HDFC Bank Ltd's shareholders, at an Extraordinary General Meeting last month, have approved three resolutions: 1. Amalgamation of Centurion Bank of Punjab Ltd with the bank as per the Scheme of Amalgamation, and consequent issue of equity shares to the shareholders of CBoP. 2. Increase in the authorized share capital of the bank. 3. Preferential issue of equity shares and/or warrants to the promoters of the bank. Resolution Nos. 2 and 3 were passed by the shareholders at the EGM by show of hands. To ascertain the requisite majority as per Section 44A of the Banking Regulation Act, 1949, Resolution No. 1 was put to vote by way of a poll, which poll resulted in the Resolution being passed with requisite majority. The amalgamation is still subject to the approval of the Reserve Bank of India. The Scheme of Amalgamation provides for a 1:29 share swap ratio -- one equity share of INR10 each of HDFC Bank for every 29 shares of INR1 each held in CBoP. The ratio was based on the joint valuation report submitted by Ernst & Young Pvt Ltd. and M/s. Dalal & Shah, Chartered Accountants. Headquartered in Mumbai, India, HDFC Bank Limited -- http://www.hdfcbank.com/-- is a private sector bank that offers a range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank operates in three segments: retail banking, wholesale banking and treasury services. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking segment provides loans and transaction services to corporate and institutional customers. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 22, 2008, Standard & Poor's Ratings Services assigned these ratings to HDFC Bank's proposed debt issues under the US$1-billion medium-term notes program: -- 'BB+' rating to the lower Tier II subordinated notes to be issued; and -- 'BB' rating to the upper Tier II subordinated and hybrid Tier I notes to be issued. LML LTD: Incurs INR110.8 Million Net Loss in Qtr. Ended Dec. 31 --------------------------------------------------------------- LML Limited incurred a net loss of INR110.8 million in the quarter ended Dec. 31, 2007, narrowing the INR144.5 million loss booked in the same three-month period in 2006. Total income soared to INR311.2 million in the quarter ended Dec. 31, 2007, from the INR6.2 million the previous Oct.-Dec. period. The huge jump in revenue figures is due to the workers strike that affected the 2006 operations. With the surging revenues, operating expenditures also rose -- INR315.2 million from 2006's INR42.5 million -- leaving the company with an operating loss of INR4 million. In Oct.-Dec. 2007, the company also booked interest charges of INR55 million, depreciation of INR51 million and INR80,000 in taxes. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2a61 Headquartered in Kanpur, India, LML Limited manufactures scooters and motorcycles. The LML NV, manufactured with Piaggio, is a scooter that is loaded with features such as a large taillight, cushioned backrest, improved handlebar design and speedometer, a utility box and a large glove compartment. The Company's motorcycles, which are made in collaboration with Daelim of Korea, feature a three-valve, 109-cubic centimeter engine, a long wheelbase and broad tires. The Energy FX model features a four-speed gearbox, while the Adreno FX sports a five-speed unit. The bikes come in a large variety of colors offer other features such as disc brakes and electronic ignition. LML is currently working for restructuring or revival of its business that includes the possibility of a strategic financial partnership. Since the net worth of the company had become negative, the company has been registered and declared a sick industrial company by the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act,1985. LLOYDS STEEL: Net Loss Widens to INR404 Mil. in Oct.-Dec. 2007 -------------------------------------------------------------- Lloyds Steel Industries Limited's net loss widened to INR404.58 million in the three months ended Dec. 31, 2007, from the INR48.65 million loss incurred in the same quarter in 2006. Total income increased 36% from INR4.19 billion in the quarter ended Dec. 31, 2006, to INR5.703 billion in Oct.-Dec. 2007. Operating expenditures, however, rose more 48% to INR5.700 billion, bringing the company an operating profit of INR2.46 billion. In the Oct.-Dec. 2007, interest charges aggregated INR144.47 million, depreciation and tax totaled INR291.81 million and INR760,000 respectively. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2a62 Headquartered in Mumbai, India, Lloyds Steel Industries Limited -- http://www.lloydsgroup.com/-- is engaged in the business of manufacturing and marketing of iron and steel products, and manufacturing of capital equipments and Tumkey Projects. The company's products include hot rolled products, galvanized products and pipes. The company booked two years of consecutive net losses -- INR681.42 million in FY2007 (March 31, 2007) and INR632.07 million in FY2006 (march 31, 2006). MODI RUBBER: Posts INR303.92 Mil. Profit in Qtr. Ended Dec. 31 -------------------------------------------------------------- Modi Rubber Ltd reported a net profit of INR303.92 million in the three months ended Dec. 31, 2007, a huge improvement compared to the INR44.63 million net profit booked in the same quarter in 2006. In the prior three quarters in 2007, the company reported net losses. The positive bottom line was brought about by surge in other income, which forms part of the entire revenue of the company. In the quarter ended Dec. 31, 2007, the company reported other income of INR342.26 million, about four times the INR84.61 million earned in the Oct.-Dec. 2006 period. The company booked total expenses of INR31.6 million and interest chargers of INR6.51 million. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2a60 Headquartered in Delhi, India, Modi Rubber Limited -- http://www.mepc.com/-- is principally involved in the development, manufacture and distribution of automobile tires, tubes and flaps. The company's financial performance has not been all that impressive, as it continuously reported losses in the past years, which eventually lead to its closure in 2001. The financial health of its subsidiaries was also in question with Modistone being referred to the Board of Industrial and Financial Reconstruction due to the erosion in net worth. Modi Rubber's equity shares were the delisted from the Uttar Pradesh Stock Exhange, Kanpur. The delisting, effective Feb. 22, 2006, came after news that 44% stake in the rubber manufacturer was acquired by a group of financial institutions. The Board for Industrial and Financial Reconstruction on May 23, 2006, declared the company as "Sick Company" and appointed IDBI Bank has been appointed as the operating agency. By BIFR order dated Oct. 9, 2006, the State Bank of India has been appointed as operating agency for the company and was directed to prepare a revival scheme. A revised draft revival scheme of Modi Rubber was submitted to its board of directors at its meeting on March 10, 2007, which board gave unanimous approval. The same has been submitted to SBI and BIFR on March 15, 2007, for further action. Operating Agency has forwarded the modified draft Rehabilitations Scheme to BIFR on October 16, 2007, for its approval. BIFR has cleared the DRS & circulated to secured creditors & Government Authorities on January 21, 2008. * Fitch Sees Higher Delinquencies in Indian Personal Loan Deals --------------------------------------------------------------- Fitch Ratings expects delinquencies in the Indian unsecured personal loan sector to continue to increase, giving an insight into the deterioration in the business environment surrounding retail finance and its effect on personal loan transactions. In July 2007, Fitch noted that delinquencies in the personal loan sector were higher than those seen in other asset classes. Since then, loan performance has continued to deteriorate and recent events have seen some lenders criticised for their recovery strategies, which in some cases may have led to other borrowers wilfully becoming delinquent. In response to the publicity surrounding the engagement of recovery agents, the Reserve Bank of India issued draft guidelines to all scheduled commercial banks in its medium-term review of the annual policy for 2007-2008, published in November 2007. The report summarises Fitch's view on the impact of rising delinquencies in unsecured consumer loans on banks' recovery processes and credit growth. The immediate impact is in declining collection efficiencies in personal loan transactions largely due to banks resorting to a softer recovery approach in the form of legal notices and increased phone calls. In the long run, the regulator is looking at making banks more accountable for their third-party recovery agents. In light of recent controversies surrounding retail finance in India, Fitch believes its report will help market participants understand the effect of the deterioration of credit cycles on personal loan transactions. Personal loans are usually fixed rate loans, and are unsecured in nature. They are not backed by any security, collateral or guarantor. Given their unsecured nature, personal loans are not amenable to the same recovery efforts that are seen in other asset classes where underlying security interests improve recovery prospects. In addition to this, personal loan financing in India is a very competitive business and this may have pushed many institutions to originate loans in riskier segments. ================= I N D O N E S I A ================= BANK NEGARA: Aims IDR1.8 Trillion Fee-Based Income in 2008 ---------------------------------------------------------- PT Bank Negara Indonesia (Persero) Tbk aims a 35% growth in savings to earn IDR1.8 trillion in fee-based income this year, Antara News reports. Felia Salim, bank vice president, told the news agency that in 2007, savings at the bank increased 25% to IDR48.14 trillion from a year earlier. According to the report, to achieve the goal, the bank plans to continue improving its services to its customers. Mr. Salim said the number of electronic transactions at the bank continued to increase, Antara relates. In March alone, transactions through the bank's automated teller machines reached IDR8 trillion, he added, the report relates. Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 25, 2008, Fitch Ratings took these rating actions on PT Bank Negara Indonesia (Persero) Tbk: -- LTFC/LTLC IDRs upgraded to 'BB' from 'BB-'; Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Support Rating Floor upgraded to 'BB-' from 'B+'; -- Individual rating affirmed at 'D'; -- ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA-(idn)'; -- FC subordinated debt upgraded to 'BB-' from 'B+'. On Oct. 19, 2007, Moody's Investors Service raised PT Bank Negara Indonesia (Persero) Tbk.'s foreign currency long-term debt rating to Ba2 from Ba3 and foreign currency long-term deposit rating to B1 from B2. On April 20, 2007, Standard & Poor's Ratings Services raised Bank Negara's long-term counterparty credit ratings to 'BB-' from 'B+'. BERAU COAL: To Double Coal Output to 30MM tonnes in 5 years ----------------------------------------------------------- PT Berau Coal plans to double its coal output to 30 million tonnes in five years funded by an investment of US$100-120 million over the period, Reuters reports. According to the report, Berau Coal President Bob Kamandanu said the company financing is likely to come from their internal resources. The company, which has 299 million tonnes of coal in its reserves, produced and sold 12 million tonnes of coal last year, the report notes. Mr. Kamandanu, Reuters relates, said that in 2008, Berau Coal plans to produce 15 million tonnes and set aside half a million tonnes for stocks. However, Mr. Kamandanu said that current weather conditions are getting unpredictable, and if this will result to a shortage of stock it can be dangerous for the company, Reuters reports. The firm needs to lift its stocks to prepare itself for higher output, he added, the report notes. Harry Suhartono of Reuters writes that the company was currently conducting exploration of its coal resources in the Kelai area of Kalimantan, which could increase its reserves by an additional 100-150 million tonnes. About Berau Coal Headquartered in East Kaliman, PT Berau Coal -- http://www.beraucoal.co.id/-- is Indonesia's fifth largest producer and exporter of thermal coal. It operates three active mines at a single site in East Kalimantan. It has estimated resources of 654.2 million tons with probable reserves estimated at 61.6mt and proven mineable reserves of 127.6mt. The Troubled Company Reporter - Asia Pacific reported on Feb. 7, 2008, Fitch Ratings has affirmed PT Berau Coal's 'B+' Long-term foreign and local currency Issuer Default Ratings, and 'A(idn)' National Long-term rating. The Outlooks for all ratings remain Stable. At the same time, Fitch affirmed the 'B+' senior unsecured rating of Berau's US$325 million senior notes due in 2011. On Dec. 27, 2006, that Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to PT Berau Coal (Berau), a coal mining company in Indonesia. The outlook is stable. At the same time, Standard & Poor's assigned its 'B' rating to the US$325 million guaranteed senior secured notes issued by Berau's wholly owned subsidiary, Empire Capital Resources Pte. Ltd. The notes are unconditionally and irrevocably guaranteed by Berau. On Dec. 15, 2006, Moody's Investors Service assigned a final B1 corporate family rating to PT Berau Coal. At the same time Moody's assigned a final B1 rating to the US$325 million bonds issued by Empire Capital Resources Pte Limited and guaranteed by Berau. This follows the completion of a US$325 million bond issuance, consisting of US$100 million five-year amortizing senior secured floating rate notes and US$225 million five-year bullet senior secured fixed rate bonds. Moody's said the rating outlook is stable. CA INC: Cuts 2,800 Jobs in Expanded 2007 Restructuring Plan ----------------------------------------------------------- CA, Inc. approved additional cost reduction and restructuring actions relating to its Fiscal 2007 Restructuring Plan disclosed in August 2006, meant to improve the company's expense structure and increase its competitiveness. The objectives under the Fiscal 2007 Restructuring Plan now include: (1) a total workforce reduction of approximately 2,800 positions, (2) global facilities consolidations, and (3) other cost reduction initiatives. CA, Inc. expects to incur additional pre-tax restructuring charges of approximately US$75 million to 100 million, bringing the total pre-tax restructuring charges that CA, Inc. expects to incur in connection with the Fiscal 2007 Restructuring Plan to US$275 million to 300 million, including termination costs of approximately US$200 million to US$215 million and global facilities consolidations of approximately US$75 million to US$85 million. Restructuring in August 2006 As reported in the Troubled Company Reporter on Aug. 15, 2006,