T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, April 15, 2008, Vol. 11, No. 74 Headlines A U S T R A L I A AJ KITCHEN: Liquidator Presents Wind-Up Report ALLBUILT FRAMES: Undergoes Liquidation Proceedings ALLCO FINANCE: To Sell U.S. & German Properties for US$1.2 BB BESTCOA PTY: Placed Under Voluntary Liquidation COMMERCIAL CONCRETE: Placed Under Voluntary Liquidation DAVID COLLEY: Inability to Pay Debts Prompts Wind-Up EASTCOAST BUSINESS: Creditors Resolve to Liquidate Business ELLBAR PTY: Members Agree on Voluntary Liquidation MERV WEBB: Final Meeting Slated for April 18 MIDWAY STUDIOS: Liquidator to Present Wind-Up Report on April 18 OPES PRIME: ASIC Says Director's Resignation Was Backdated OPES PRIME: Solicitor Chris Murphy's Involvement Scrutinized REFERRAL MARKETING: Placed Under Voluntary Liquidation ST. GEORGE BANK: Loses AU$117 Million Tax Case Against ATO SANOFI-SYNTHELABO: To Declare Dividend on April 25 YI DA ENTERPRISE: To Declare First Dividend on May 8 C H I N A & H O N G K O N G & T A I W A N ADPON DEVELOPMENT: Members & Creditors to Meet on May 6 ASAHI DYNAMIC: Creditors' Proofs of Debt Due April 18 ASIA INTELLECTUAL: Creditors' Proofs of Debt Due May 20 CFC CONSTRUCTION: Members & Creditors to Meet on May 8 CFM GLOBAL: Appoints New Liquidators CHINA CONSTRUCTION: To Issue CNY40 Billion in Subordinated Bonds CHINA CONSTRUCTION: Posted 49% Increase in 2007 Net Profit EMI GROUP: Citigroup Cancels Sale of US$4.9BB Company Loans CHESAPEAKE CORPORATION: Annual Meeting Scheduled for April 23 CHESAPEAKE CORPORATION: S&P Lowers Corporate Credit Rating to B+ DAIWA SECURITIES: Creditors' Proofs of Debt Due May 2 DFS MACAU: Liquidators Quit Post EASE WAY: Liquidator Quits Post FOUNDATION OF ZHONGSHAN: Members' Final Meeting Set for May 8 GOLD PLANET: Commences Liquidation Proceedings JJH GRANITE & MARBLE: Members & Creditors to Meet on May 8 PETROLEOS DE VENEZUELA: Exxon Still Operates Chalmette Plant PETROLEOS DE VENEZUELA: Discloses Strategy at London Congress REUTERS BASIS: Creditors' Proofs of Debt Due April 30 SHANGHAI PUDONG: Reports 180% Increase in Q1 Net Profit I N D I A DECCAN AVIATION: Creditors & Shareholders to Consider Scheme DECCAN AVIATION: Board to Consider Q3 Results on April 22 ITI LTD: BIFR Brings In C. K. Koshy to Firm's Board QUEBECOR: Wants Lease Assumption Period Extended to Aug. 18 QUEBECOR WORLD: Seeks 4-Month Extension of Plan Filing Period QUEBECOR WORLD: Want Claims Removal Period Extended to July 21 STATE BANK OF INDIA: Moves Closing Date of Scheme to April 30 TATA STEEL: Joins Race to Buy Brazil's AVG Mineracao TATA STEEL: Expects Steel Prices to Increase I N D O N E S I A BERLIAN LAJU: Covenant Failure Doesn't Affect Fitch's B+ Ratings GARUDA INDONESIA: European Union Retains Flying Ban J A P A N ELPIDA MEMORY: To Report JPY20 Bln Operating Loss, Nikkei Says GAP INC: March 2008 Net Sales Decrease 12% at US$1.37 Billion IHI CORP: Posts JPY20BB Net Income for Fiscal Year Ended Mar. 31 SOLO CUP: Brian O'Connor Replaces Peter W. Calamari as Director K O R E A KOREAN EXPRESS: Asiana Airline & 13 People Buy 24 Million Shares KRISPY KREME: Lenders Approve Modifications in Credit Facilities NDCORP: To Issue 152,600 Shares of Common Stock Worth KRW1.9BB M A L A Y S I A CNLT (FAR EAST): Court Rejects Extension of Restraining Order FOAMEX INT'L: D.E. Shaw to Backstop US$115MM Rights Offering FOAMEX INTERNATIONAL: Inks Amendments to Two Credit Agreements GOLD BRIDGE: Intends to Submit 2007 Annual Report by May 31 HALIFAX CAPITAL: Bourse Extends Plan Filing Period to May 18 LITYAN HOLDINGS: Inks Major Contract With PCCW MEGAN MEDIA: Bourse to Delist Securities on April 23 SHAW GROUP: Earns US$8.9 Million in Quarter Ended Feb. 29 SOLUTIA INC: Air Liquide Seeks Allowance of US$1,059,228 Claim N E W Z E A L A N D 3 DOGS DOWN: Taps Shephard and Dunphy as Liquidators ACCOUNTANTS & BROKERS: Fixes April 16 as Last Day to File Claims ARCH HILL: Creditors' Proofs of Debt Due April 20 ASH & JOY: Creditors' Proofs of Debt Due April 16 BLUE CHIP NEW ZEALAND: Commences Voluntary Liquidation CLEAR CHANNEL: Tex. Court Rejects Banks' Request to Dismiss Suit CLEAR CHANNEL: Banks Ask NY Court for Summary Judgment on Deal HARRIS FLOOR: Shareholders Opt to Liquidate Business LIFESTYLE MARINE: Appoints Cain and Hollis as Liquidators MARUBENI AUTO: Appoints Robert James Taylor as Liquidator MITEX HYGIENICS: Creditors' Proofs of Debt Due April 16 MR HAPPY DAYS: Court to Hear Wind-Up Petition on May 7 WEST PRINTING: Subject to Agfa-Gevaert's Wind-Up Petition ZED GROUP: Fixes May 10 as Last Day to File Claims P H I L I P P I N E S SAN MIGUEL: Partners With State Pension Fund for Hotel Project S I N G A P O R E CHIN HONG: Court to Hear Wind-Up Petition on April 18 FISHERMAN'S VILLAGE: Wind-Up Petition Hearing Set for April 18 ROTHSCHILD ASSET: Requires Creditors to File Claims by May 11 WEE HENG: Wind-Up Petition Hearing Set for April 18 T H A I L A N D DOLE FOOD: To Sell Properties to Avoid Default on US$350MM Bonds TOTAL ACCESS: Fitch Removes 'BB+' Rating From Negative Watch * BOND PRICING: For the Week 14 April to 18 April 2008 - - - - - ================= A U S T R A L I A ================= AJ KITCHEN: Liquidator Presents Wind-Up Report ---------------------------------------------- AJ Kitchen Creations Sydney Pty Limited held a final meeting for its members and creditors on April 9, 2008. At the meeting, the company's liquidator, Jamieson Louttit at Jamieson Louttit & Associates, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: Jamieson Louttit Jamieson Louttit & Associates 88 Pitt Street, Level 15 Sydney, New South Wales 2000 Australia Telephone:(02) 9231 0505 Facsimile:(02) 9231 0303 About AJ Kitchen AJ Kitchen Creations Sydney Pty. Limited is a general contractor of non-residential buildings, other than industrial buildings and warehouses. The company is located at Blacktown, in New South Wales, Australia. ALLBUILT FRAMES: Undergoes Liquidation Proceedings -------------------------------------------------- Allbuilt Frames & Trusses Pty. Limited's members agreed on Feb. 22, 2008, to voluntarily liquidate the company's business. The company has appointed Rowena Margaret Sigelski and Raymond George Tolcher to facilitate the sale of its assets. The liquidators can be reached at: Rowena Margaret Sigelski Raymond George Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West, New South Wales 2302 Australia Web site: http://www.lawlerpartners.com.au About Allbuilt Frames Allbuilt Frames & Trusses Pty. Limited is a distributor of structural wood members. The company is located at Wyee, in New South Wales, Australia. ALLCO FINANCE: To Sell U.S. & German Properties for US$1.2 BB ------------------------------------------------------------- Allco Finance Group Ltd. is looking to sell a portfolio of German and U.S. properties leased to Deutsche Telekom and the U.S. government for US$1.2 billion, Reuters reports. According to Reuters, Allco said Record Realty Trust -- a listed property fund it manages -- was looking to sell 22 U.S. properties with an asset value of US$653 million. The U.S. properties are spread across 17 U.S. states and leased to several government agencies, including the Federal Bureau of Investigation, U.S. Army, and Drug Enforcement Agency, notes Reuters. Allco, relates Reuters, also said it wants to sell a portfolio of seven German properties valued at US$553.7 million and leased to Deutsche Telekom until December 2019. 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. BESTCOA PTY: Placed Under Voluntary Liquidation ----------------------------------------------- Bestcoa Pty. Limited's members agreed on March 4, 2008, to voluntarily liquidate the company's business. Bestcoa Pty. Limited provides business services. The company is located at San Isidore, in New South Wales, Australia. COMMERCIAL CONCRETE: Placed Under Voluntary Liquidation ------------------------------------------------------- Commercial Concrete Constructions Pty. Ltd.'s members agreed on March 5, 2008, to voluntarily liquidate the company's business. The company has appointed Peter Paul Krejci to facilitate the sale of its assets. The liquidator can be reached at: Peter Paul Krejci GHK Ferrier Green Krejci Silvia 1 Castlereagh Street, Level 13 Sydney, New South Wales 2000 Australia About Commercial Concrete Commercial Concrete Constructions Pty. Ltd. operates employment agencies. The company is located at Peakhurst, in New South Wales, Australia. DAVID COLLEY: Inability to Pay Debts Prompts Wind-Up ---------------------------------------------------- Members of David Colley & Associates Pty. Ltd. met on Feb. 19, 2008, and resolved to voluntarily wind up the company's operations due to its inability to pay its debts. The company's liquidator is: Geoffrey McDonald c/o Hall Chadwick 31 Market Street, Level 29 Sydney, New South Wales 2000 Australia About David Colley David Colley & Associates Pty. Ltd. operates advertising agencies. The company is located at Killara, in New South Wales, Australia. EASTCOAST BUSINESS: Creditors Resolve to Liquidate Business ----------------------------------------------------------- Eastcoast Business Equipment Pty. Ltd.'s creditors agreed on March 5, 2008, to voluntarily liquidate the company's business. The company has appointed Gavin Moss and Angus Gordon to facilitate the sale of its assets. The liquidators can be reached at: Gavin Moss Angus Gordon Macquarie Gordon & Co 179 Elizabeth Street, Level 11 Sydney, New South Wales 2000 Australia About Eastcoast Business Eastcoast Business Equipment Pty. Ltd. operates miscellaneous retail stores. The company is located at Waterloo, in New South Wales, Australia. ELLBAR PTY: Members Agree on Voluntary Liquidation -------------------------------------------------- Ellbar Pty Limited's members agreed on March 5, 2008, to voluntarily liquidate the company's business. The company has appointed Chris Wykes to facilitate the sale of its assets. The liquidator can be reached at: Chris Wykes c/o Lawler Partners Chartered Accountants 1 O'Connell Street, Level 9 Sydney, New South Wales 2000 Australia About Ellbar Pty. Ellbar Pty. Limited provides business services. The company is located at Manly, in New South Wales, Australia. MERV WEBB: Final Meeting Slated for April 18 -------------------------------------------- Merv Webb Auto Body Repairs Pty. Ltd. will hold a final meeting for its members and creditors at 10:00 a.m. on April 18, 2008. During the meeting, the company's liquidator, Roderick MacKay Sutherland at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Roderick MacKay Sutherland Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Merv Webb Merv Webb Auto Body Repairs Pty. Ltd. operates general automotive repair shops. The company is located at Wickham, in New South Wales, Australia. MIDWAY STUDIOS: Liquidator to Present Wind-Up Report on April 18 ---------------------------------------------------------------- Midway Studios - Australia Pty. Ltd. will hold a final meeting for its members and creditors at 10:00 a.m. on April 18, 2008. During the meeting, the company's liquidator, John Melluish at Ferrier Hodgson, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: John Melluish Ferrier Hodgson GPO Box 4114 Sydney, New South Wales 2001 Australia About Midway Studios Midway Studios - Australia Pty. Ltd. provides computer related services. The company is located at Adelaide, in South Australia, Australia. OPES PRIME: ASIC Says Director's Resignation Was Backdated ---------------------------------------------------------- Adele Ferguson of The Australian writes that Opes Prime Group Ltd. director Anthony Blumberg signed off the resignation of another director, which was backdated by almost two weeks. According to the report, ten minutes before receivers were appointed to take charge of Opes Prime, Mr. Blumberg signed off the resignation of Alun Stevens, which was backdated by almost two weeks. The Australian Securities and Investments Commission revealed that an electronic lodgement was made at 5:19 p.m. on March 27, almost an hour after administrators were appointed and 11 minutes before receivers were appointed. The document filed with the ASIC was backdated to March 18, notes Ms. Ferguson. Mr. Stevens told The Australian he could not comment on whether he had backdated his resignation or not. Mr. Stevens also told The Australian he had nothing to do with the sale of Opes Prime's 90% stake in the business assets of Trader Dealer, which was sold two weeks ago to the listed financial advice and technology company MDS, of which Mr. Stevens holds about 10% of shares. According to the report, Mr. Stevens was also a director of the company a few weeks ago. Mr. Stevens was also the managing director of Trader Dealer, which is the platform Opes used for online trading. Ms. Ferguson quotes Mr. Stevens as saying "I can't comment on MDS because it is related to Opes Prime. Anyone associated with Opes Prime is being interviewed by ASIC and others, so all matters are confidential." Mr. Stevens said he had no part to play in the sale of Trader Dealer to a company he has a major shareholding in, relates The Australian. Mr. Stevens, adds The Australian, is also a director of Green Frog, which as a nominee company could hold Opes clients' shares. There is speculation that some of the directors of Opes may have put some of their assets into Green Frog in the weeks leading up to its administration, relates The Australian. About Opes Prime Opes Prime Group Ltd is an Australian unlisted public company providing a range of financial services and products for high net worth individuals, stockbrokers and financial advisors, asset managers, banks and other firms, both for themselves and their clients. The Group conducts business via a number of operating subsidiaries based in Melbourne, Sydney and Singapore: 1) Opes Prime Stockbroking Limited is a full Market Participant of the Australian Stock Exchange Ltd, and holds an Australian Financial Services Licence (#247408) which enables it to deal and advise in financial services and products to retail and wholesale clients. The company was first registered on 10 March 1999, and started business with its current shareholders in 2005. Opes Prime Stockbroking is a specialist provider of securities lending and equity financing services. In Singapore, the firm operates through Opes Prime Group's wholly owned subsidiary, Opes Prime International Pte Ltd. In Australia, Opes Prime Stockbroking has granted Authorized Representative status to Trader Dealer Pty Ltd, an on-line non-advisory trading execution service for the semi- professional and professional trader. 2) Opes Prime Structured Products Pty Ltd develops, manages and markets specialized leveraged products for the high net worth market, providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008 that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group's affairs to quantify the likely liability to OPSL's clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. OPES PRIME: Solicitor Chris Murphy's Involvement Scrutinized ------------------------------------------------------------ Opes Prime Group Ltd. provided favorable treatment for Sydney solicitor Chris Murphy after the lawyer traded AU$4 billion in Telstra shares that earned Opes millions of dollars in brokerage, Chris Merritt writes for The Australian. The Australian quotes Mr. Murphy as saying, "I can understand why Opes treated me well." The Telstra trades were spread over two years and earned Opes about AU$2.4 million in commission, relates The Australian. According to Mr. Merritt, Opes also allowed Mr. Murphy to borrow up to 95% of the value of his shares, which is well above industry standards. "I was treated favorably by Opes, and why wouldn't I be?" Mr. Murphy said. He said his Telstra trading would have been "a nice piece of business for any broker," relates The Australian. Mr. Murphy adds, ""I can understand why Opes treated me well. In a recent two-year period, I traded 900 million Telstra shares worth about AU$4billion." The Australian notes that Mr. Murphy's shares was just one of the 15 separate stocks that he had been trading through Opes, which charged him a commission of about 0.05 per cent. Mr. Murphy denied reports that Opes had kept him trading when his account was in the red. "I never traded a single share when my total collaterized equity was less than the value of my shares. I did not trade 'in the red'," Mr. Murphy told The Australian. Adele Ferguson of The Australian, in a separate report, obtained the share portfolio statements of Mr. Murphy. The portfolio statements were provided by former underworld boss Mick Gatto and associate John Khoury to The Australian. According to Ms. Ferguson, the portfolio statements reveal Mr. Murphy, through two of his companies: Sarah Brown and Cardiac Jolt, was hit with margin calls after losing almost all the equity in his AU$20 million share portfolio even as the share market was near a peak in July. The documents show that Mr. Murphy was allowed to borrow 95% of the value of his share portfolio, which included blue-chip stocks, such as a AU$13 million stake in Telstra and a AU$45 million stake in the James Packer-backed Challenger Financial Group, as well as smaller companies such as Ebet, Heartware and Australian Pharmaceutical Industries, notes Ms. Ferguson. According to Ms. Ferguson, these high loan-to-valuation ratios on margin loans are extremely rare; the usual level is about 65 percent on blue-chip stocks and much less on mid-capitalised stocks. About Opes Prime Opes Prime Group Ltd is an Australian unlisted public company providing a range of financial services and products for high net worth individuals, stockbrokers and financial advisors, asset managers, banks and other firms, both for themselves and their clients. The Group conducts business via a number of operating subsidiaries based in Melbourne, Sydney and Singapore: 1) Opes Prime Stockbroking Limited is a full Market Participant of the Australian Stock Exchange Ltd, and holds an Australian Financial Services Licence (#247408) which enables it to deal and advise in financial services and products to retail and wholesale clients. The company was first registered on 10 March 1999, and started business with its current shareholders in 2005. Opes Prime Stockbroking is a specialist provider of securities lending and equity financing services. In Singapore, the firm operates through Opes Prime Group's wholly owned subsidiary, Opes Prime International Pte Ltd. In Australia, Opes Prime Stockbroking has granted Authorized Representative status to Trader Dealer Pty Ltd, an on-line non-advisory trading execution service for the semi- professional and professional trader. 2) Opes Prime Structured Products Pty Ltd develops, manages and markets specialized leveraged products for the high net worth market, providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008 that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group's affairs to quantify the likely liability to OPSL's clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. REFERRAL MARKETING: Placed Under Voluntary Liquidation ------------------------------------------------------ Referral Marketing Services Pty. Ltd.'s creditors agreed on March 7, 2008, to voluntarily liquidate the company's business. The company has appointed David Anthony Hurst and Andrew Hugh Jenner Wily to facilitate the sale of its assets. The liquidators can be reached at: David Anthony Hurst Andrew Hugh Jenner Wily Armstrong Wily Chartered Accountants 75 Castlereagh Street, Level 5 Sydney, New South Wales 2000 Australia About Referral Marketing Referral Marketing Services Pty. Ltd. provides business services. The company is located at Torrens Park, in South Australia, Australia. ST. GEORGE BANK: Loses AU$117 Million Tax Case Against ATO ---------------------------------------------------------- St. George Bank Ltd. will recognize a AU$117 million charge in its upcoming interim result after losing a tax case in the Federal Court, the Australian Associated Press reports. The AAP notes that St. George has been in a long-standing dispute with the Australian Taxation Office over interest deductions it claimed for the tax years 1998 to 2003 in respect of the subordinated debentures. In a statement, St. George said "St. George is reviewing the judgment carefully with its legal counsel to determine if it will appeal. In the meantime St. George will recognize a AU$117 million charge to its profit and loss for the half year ended March 31, 2008," relates the AAP. According to the report, St. George will register the sum as a significant item and will not need to raise any additional capital to cover the liability. About St. George Bank Headquartered in Kogarah, New South Wales, Australia -- http://www.stgeorge.com.au-- St. George Bank Limited is a banking company. The Company operates in four business segments: Retail Bank (RB), Institutional and Business Banking (IBB), BankSA (BSA) and Wealth Management (WM). RB is responsible for residential and consumer lending, provision of personal financial services including transaction services, call and term deposits, small business banking and financial planners. This division manages retail branches, call centers, agency networks and electronic channels, such as electronic funds transfer at point of sale (EFTPOS) terminals, automated teller machines (ATMs) and Internet banking. On September 28, 2007, it disposed of its 100% interest in Scottish Pacific Business Finance Holdings Pty. Limited. * * * The Troubled Company Reporter-Asia Pacific reported on March 28, 2008, that Fitch Ratings assigned a 'B' rating on the AU$1.0 million Class E bond of St. George. A subsequent TCR-AP report on April 2, 2008, said Fitch Ratings rated St. George's AU$1.7 million Class D bond a 'BB'. SANOFI-SYNTHELABO: To Declare Dividend on April 25 -------------------------------------------------- Sanofi-Synthelabo Australia Pty. Limited will declare dividend on April 25, 2008. Only creditors who were able to file their proofs of debt by April 8, 2008, will be included in the company's dividend distribution. The company's liquidator is: Geoffrey Reidy Rodgers Reidy 333 George Street, Level 8 Sydney, New South Wales 2000 Australia About Sanofi-Synthelabo Sanofi-Synthelabo Australia Pty. Limited is a distributor of drugs, proprietaries, and sundries. The company is located at Macquarie Park, in New South Wales, Australia. YI DA ENTERPRISE: To Declare First Dividend on May 8 ---------------------------------------------------- Yi Da Enterprise (Australia) Pty Ltd., which is in liquidation, will declare its first and final dividend on May 8, 2008. Only creditors who were able to file their proofs of debt by April 8, 2008, will be included in the company's dividend distribution. The company's liquidator is: R. M. Sutherland Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Yi Da Enterprise Yi Da Enterprise (Australia) Pty. Ltd. is a distributor of durable goods. The company is located at Strathfield South, in New South Wales, Australia. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== ADPON DEVELOPMENT: Members & Creditors to Meet on May 6 ------------------------------------------------------- Adpon Development Limited will hold a joint meeting for its members and creditors at 10:00 a.m. and 10:30 a.m. respectively, on May 6, 2008. At the meeting, the company's liquidator, Lui Wan Ho will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Lui Wan Ho Olympia Plaza, Room 1701 225 King's Road North Point, Hong Kong ASAHI DYNAMIC: Creditors' Proofs of Debt Due April 18 ----------------------------------------------------- Creditors of Asahi Dynamic Appliances Limited are required to file their proofs of debt by April 18, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 27, 2008. The company's liquidator is: Lam Shu Yan Hei King House, Room 1404 King Ming Court Junk Bay, Kowloon ASIA INTELLECTUAL: Creditors' Proofs of Debt Due May 20 ------------------------------------------------------- Creditors of Asia Intellectual Property Council Company Limited are required to file their proofs of debt by May 20, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 26, 2008. The company's liquidator is: Ngan Sim Sim Wing Hang Insurance Building, Room B, 19th Floor 11 Wing Kut Street Central, Hong Kong CFC CONSTRUCTION: Members & Creditors to Meet on May 8 ------------------------------------------------------ CFC Construction Engineering and Machinery Company Limited will hold a joint meeting for its members and creditors at 10:00 a.m. and 10:15 a.m. respectively, on May 8, 2008. At the meeting, the company's liquidators, Joseph K.C. Lo and Dermot Agnew, will provide the attendees with property disposal and winding-up reports. The company's liquidators can be reached at: Joseph K.C. Lo Dermot Agnew One Pacific Place, 35th Floor 88 Queensway, Hong Kong CFM GLOBAL: Appoints New Liquidators ------------------------------------ Members of CFM Global Manufacturing Limited appointed John Robert Lees and Column Sebastian Joseph as the company's liquidators. The liquidators can be reached at: John Robert Lees Column Sebastian Joseph 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong CHINA CONSTRUCTION: To Issue CNY40 Billion in Subordinated Bonds ---------------------------------------------------------------- China Construction Bank will issue up to CNY40 billion (US$5.7 billion) in subordinated bonds with a maturity of no less than 10 years, Edmund Klamann of Reuters reports. The bonds will be issued in the interbank market within 24 months of receiving shareholder approval, with the coupon set in line with market conditions, Mr. Klamann says. Mr. Klamann notes that the proceeds will be used to bolster the bank's capital and boost its capital adequacy ratio. China Construction told Reuters it would set up a committee including its chairman, president and several board members to make decisions on overseas acquisition investments. Chairman Guo Shuqing said, in a briefing on his bank's results announcement, that the bank was actively seeking appropriate opportunities for overseas acquisitions, the report relates. According to Reuters, its sources with direct knowledge of the situation said last month that China Construction had turned down nearly 30 proposals for possible acquisitions over the past year, including an opportunity to buy a stake in troubled U.S. home mortgage lender Countrywide Financial Corp. that it considered too risky. About China Construction The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954, under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. The Troubled Company Reporter-Asia Pacific reported on Nov. 20, 2006, that Fitch Ratings affirmed the bank's 'D' individual rating. On May 4, 2007, Moody's Rating Agencies rates Construction Bank Corporation's Bank Financial Strength Rating at D-. Moody's said the BFSR outlook is stable. CHINA CONSTRUCTION: Posted 49% Increase in 2007 Net Profit ---------------------------------------------------------- China Construction Bank Corp. posted a growth of 49% in net profit in 2007 due to increased investment returns and commission fees, China Knowledge reports. Net profit for the 2007 fiscal year climbed to RMB69.05 billion (US$9.86 billion), compared with RMB46.32 billion a year earlier, the bank disclosed in a statement to the Hong Kong Stock Exchange, according to China Knowledge. It put aside US$630 million to cover the devaluation of its subprime-related securities, China Knowledge says. Net interest income soared 37% year-on-year to RMB192.78 billion in the same period, and net earnings from commission fees climbed to RMB31.31 billion, more than doubled from RMB13.57 billion in 2006, China Knowledge relates. Citing the updated international financing report standards, China Knowledge reports that the bank's non-performing loan ratio dropped to 2.6% by the end of 2007, against 3.29% at the end of 2006; the capital adequacy ratio rose to 12.58%, up 0.47 percentage points from a year ago. China Construction's board proposed a final dividend of RMB0.065 apiece, lower than RMB0.092 in 2006, China Knowledge says. About China Construction The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954, under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. The Troubled Company Reporter-Asia Pacific reported on Nov. 20, 2006, that Fitch Ratings affirmed the bank's 'D' individual rating. On May 4, 2007, Moody's Rating Agencies rates Construction Bank Corporation's Bank Financial Strength Rating at D-. Moody's said the BFSR outlook is stable. EMI GROUP: Citigroup Cancels Sale of US$4.9BB Company Loans ----------------------------------------------------------- Citigroup Inc., the bank that sponsored Terra Firma Capital Partners Ltd.'s buyout of EMI Group PLC, withdrew plans to sell off to outside investors about US$4.9 billion of loans provided for the transaction, according to various reports. The reports say Citigroup deemed the EMI loans not fit for sale because capitalists fear over EMI's reorganization fate. EMI's current restructuring includes elimination of 1,500 jobs and consolidation of certain business operations. Various reports relate that Citigroup's difficulty in marketing the loans has weighed down the bank's balance sheets with bulky write-downs. Citigroup intends to lessen its letdown by selling a huge portion of US$43 billion debts to a group of private- equity companies. Writedowns of leverage loans caused Citigroup stocks to dropped 21% in New York trading this year, Bloomberg relates. Citigroup expects an increase to its US$24 billion losses on mortgages, bonds and corporate loans. The Wall Street Journal's Ethan Smith and David Enrich relate that EMI's restructuring remains a work in progress, and the company's future shape remains an open question. WSJ says Citigroup worried that the uncertainty would add to the squeamishness of the already-jittery debt investors it is trying to lure. About Citigroup Inc. New York-based Citigroup Inc. (NYSE: C) -- http://www.citigroup.com/-- is a diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers. The company is a bank holding company. Its segments include Global Consumer Group, Corporate and Investment Banking (CIB), Global Wealth Management and Alternative Investments (AI). Citigroup has more than 200 million customer accounts and does business in more than 100 countries. About EMI Group plc Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. CHESAPEAKE CORPORATION: Annual Meeting Scheduled for April 23 ------------------------------------------------------------- Chesapeake Corp. disclosed that annual shareholders meeting will be held on Wednesday, April 23, 2008 at 9:30 a.m. in the SunTrust Bank, Piedmont Room, 4th Floor, 919 East Main Street in Richmond, Virginia. Headquartered in Richmond, Virginia, Chesapeake Corp. (NYSE: CSK) -- http://www.chesapeakecorp.com/-- protects and promotes the world's great brands as a leading international supplier of value-added specialty paperboard and plastic packaging. The company is one of Europe's premier suppliers of folding cartons, leaflets and labels, as well as plastic packaging for niche markets. Chesapeake has 45 locations in Europe, North America, Africa and Asia and employs approximately 5,400 people worldwide. The company's Europe facilities are located in the United Kingdom, France, Belgium, Spain and Germany while its Asian facilities are located in China. CHESAPEAKE CORPORATION: S&P Lowers Corporate Credit Rating to B+ ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings for Richmond, Va.-based Chesapeake Corp., including the corporate credit rating, which was lowered to 'B+' from 'BB-'. At the same time, S&P assigned a recovery rating of '6' to the company's existing subordinated notes, indicating our expectation for negligible (0% to 10%) recovery in the event of a payment default. All ratings were removed from CreditWatch, where they were placed with negative implications on Dec. 18, 2007. The outlook is negative. "The downgrade reflects the company's weaker-than-expected operating performance during 2007 due to lower results than expected in certain segments, start-up production costs for a new product line, and expenses for process-improvement initiatives," said Standard & Poor's credit analyst Andy Sookram. "As a result, credit metrics have weakened materially to a level no longer consistent with the former ratings." In addition, S&P expects that earnings may continue to be weak over the next several quarters, which would pressure credit measures and potentially tighten liquidity. Chesapeake supplies specialty paperboard packaging (about 83% of sales) and plastic packaging for pharmaceutical, health care, spirits, confectionery, cosmetics, food, tobacco, household, and chemical products. The company is one of the largest virgin- fiber-based folding carton producers in Europe. Headquartered in Richmond, Virginia, Chesapeake Corp. (NYSE: CSK) -- http://www.chesapeakecorp.com/-- protects and promotes the world's great brands as a leading international supplier of value-added specialty paperboard and plastic packaging. The company is one of Europe's premier suppliers of folding cartons, leaflets and labels, as well as plastic packaging for niche markets. Chesapeake has 45 locations in Europe, North America, Africa and Asia and employs approximately 5,400 people worldwide. The company's Europe facilities are located in the United Kingdom, France, Belgium, Spain and Germany while its Asian facilities are located in China. DAIWA SECURITIES: Creditors' Proofs of Debt Due May 2 ----------------------------------------------------- Creditors of Daiwa Securities SMBC Futures (Asia) Limited are required to file their proofs of debt by May 2, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 25, 2008. The company's liquidators are: Thomas Andrew Corkhill Iain Fegurson Bruce Gloucester Tower, 8th Floor The Landmark, 15 Queen's Road Central, Hong Kong DFS MACAU: Liquidators Quit Post -------------------------------- On April 3, 2008, Ying Hing Chui and Chung Miu Yin, Diana stepped down as liquidators for DFS Macau Limited. EASE WAY: Liquidator Quits Post ------------------------------- On March 25, 2008, Tsui Man See stepped down as liquidator for Ease Way Holdings Limited. FOUNDATION OF ZHONGSHAN: Members' Final Meeting Set for May 8 ------------------------------------------------------------- Members of Foundation of Zhongshan University Advanced Research Centre Company Limited will have their final general meeting on May 8, 2008, at New World Tower, 2nd Floor, 18 Queen's Road, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Leong Huon Kit New World Tower, 2nd Floor 18 Queen's Road Central, Hong Kong GOLD PLANET: Commences Liquidation Proceedings ---------------------------------------------- Gold Planet Development Limited's members agreed on March 26, 2008, to voluntarily liquidate the company's business. The company has appointed J. R. Lees to facilitate the sale of its assets. The liquidator can be reached at: J R Lees 1904 Hong Kong Club Building 3A Charter Road Central, Hong Kong JJH GRANITE & MARBLE: Members & Creditors to Meet on May 8 ---------------------------------------------------------- JJH Granite & Marble (Hong Kong) Company Limited will hold a joint meeting for its members and creditors at 10:45 a.m. and 11:00 a.m. respectively, on May 8, 2008. At the meeting, the company's liquidators, Joseph K.C. Lo and Dermot Agnew, will provide the attendees with property disposal and winding-up reports. The company's liquidators can be reached at: Joseph K.C. Lo Dermot Agnew One Pacific Place, 35th Floor 88 Queensway, Hong Kong PETROLEOS DE VENEZUELA: Exxon Still Operates Chalmette Plant ------------------------------------------------------------ Exxon Mobil Corp. told Dow Jones that it continues to operate the Chalmette Refining LLC it jointly owns with Petroleos de Venezuela SA. As reported in the Troubled Company Reporter-Latin America on April 11, 2008, Petroleos de Venezuela will seek to replace Exxon Mobil as operator of the Chalmette plant in Louisiana. The Venezuelan government wants a new operator for the Chalmette oil refinery. Exxon Mobil spokesperson Margaret Ross commented to Dow Jones Americas, "ExxonMobil is aware that PdVSA [Petroleos de Venezuela] is considering its option to exercise its rights under the Chalmette Refining LLC, operating agreement to remove ExxonMobil Oil Corp. as operator of the refinery. It is our policy not to comment in detail on the specifics of our contracts." Exxon Mobil is still open to discussion with Petroleos de Venezuela, Dow Jones states, citing Ms. Ross. 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: Discloses Strategy at London Congress ------------------------------------------------------------- Petroleos de Venezuela SA has disclosed its strategy on oil sovereignty and social responsibility at the World Congress of National Oil Companies in London, Prensa Latina reports. According to Luis Verma, PDVSA vice president for exploration and production, the national laws defended state-run oil prospect and production, while costs and risks can be shared in ventures, the report adds. The report states that Mr. Verma has discussed the regional energy integration and diversification under the rules of the Organization of Petroleum Exporting Countries. The discussion was involved with the definition of the role of national companies in world oil potential, including, reserves, production, human resources and technology. Companies National Iranian Oil Company, Abu Dhabi National Oil Company (United Arab Emirates, Sonangol (Angola), Qatar Petroleum (Qatar), Petrobras (Brazil), PEMEX (Mexico), Statoil, ChevronTexaco and Shell (US) and TOTAL (France) were present during the Congress. 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. REUTERS BASIS: Creditors' Proofs of Debt Due April 30 ----------------------------------------------------- Creditors of Reuters Basis Point Publishing Limited are required to file their proofs of debt by April 30, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 31, 2008. The company's liquidator is: Ho Lam Fat Greatmany Centre, 14th Floor 109-115 Queen's Road East Wanchai, Hong Kong SHANGHAI PUDONG: Reports 180% Increase in Q1 Net Profit ------------------------------------------------------- Shanghai Pudong Development Bank said its first quarter net profit rose at least 180% from a year earlier, Edmund Klamann of Reuters reports. The bank, according to Reuters, attributed the gains to asset growth, rising interest margins, growth in non- interest income and a lower effective corporate tax rate. Mr. Klamann relates, citing the bank's statement, net profit in the year-ago period was CNY980 million (US$139.9 million), or CNY0.225 per share. Listed Chinese companies are required to make preliminary estimates if they expect to report large swings in earnings. Shanghai Pudong President Fu Jianhua told shareholders in March that he was confident the bank could boost net profit by at least 50% this year if it carried out a plan to raise up to CNY20 billion to bolster its capital adequacy ratio, Reuters relates. Mr. Fu also said the bank would strive to boost net profit to CNY10 billion this year, Mr. Klamann reports. Headquartered in Shanghai, China, Shanghai Pudong Development Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial bank involved in personal banking, corporate banking, and inter- bank business. The bank also offers Internet banking and telephone banking. Fitch Ratings on March 12, 2007, upgraded the Support ratings of Shanghai Pudong Development Bank to 3 from 4, reflecting the improved ability of the government to support domestic financial institutions and the close relationship between the bank and the central and local governments. At the same time, the agency affirmed the bank's individual rating at D. The bank, as of May 4, 2007, also carried Moody's Investors Service's Ba1 financial strength rating. ========= I N D I A ========= DECCAN AVIATION: Creditors & Shareholders to Consider Scheme ------------------------------------------------------------ Deccan Aviation Ltd disclosed in a regulatory filing with the Bombay Stock Exchange that shareholders and creditors will consider on April 17, 2008, the composite scheme of arrangement between the company, Deccan Charters Ltd and Kingfisher Airlines Ltd. Pursuant to to an order of the High Court of Karnataka, separate meetings of the shareholders, secured creditors and unsecured will be held on April 17 for them to consider and approve the arrangement embodied in the scheme. Bangalore, India-based Deccan Aviation Limited -- http://www.deccanair.com/-- is a charter aviation company in the private sector. Deccan Aviation provides company charters, tourism, medical evacuation, off-shore logistics and a host of other services. In the financial year ended June 30, 2007, Deccan Aviation reported a net loss of INR4.2 billion, up 23% from the INR3.41 billion loss incurred in FY 2006. DECCAN AVIATION: Board to Consider Q3 Results on April 22 --------------------------------------------------------- Deccan Aviation Ltd's board of directors will hold a meeting on April 22, 2008, inter alia, to consider and take on record the unaudited financial results for the third quarter ended March 31, 2008. In the same quarter in 2007, Deccan Aviation posted a net loss of INR2.1 billion on net sales of INR4.38 billion. Bangalore, India-based Deccan Aviation Limited -- http://www.deccanair.com/-- is a charter aviation company in the private sector. Deccan Aviation provides company charters, tourism, medical evacuation, off-shore logistics and a host of other services. In the financial year ended June 30, 2007, Deccan Aviation reported a net loss of INR4.2 billion, up 23% from the INR3.41 billion loss incurred in FY 2006. ITI LTD: BIFR Brings In C. K. Koshy to Firm's Board --------------------------------------------------- ITI Ltd informed the Bombay Stock Exchange that the Board for Industrial and Financial Reconstruction, in a letter dated March 25, 2008, appointed C. K. Koshy as special director on the company's board pursuant to Section 16(4) of the Sick Industrial Companies (Special Provisions) Act, 1985. ITI also disclosed that K. K. Khurana has been appointed as director-HR of the company by the Government of India. He assumed office on April 4, 2008. ITI Limited -- http://www.itiltd-india.com/-- is a telecom company, which manufactures a range of telecom equipment, including switching products; transmission systems, such as satellite communication systems, optical line terminating equipments and digital microwave systems; access products, such as fixed wireless local loop systems and digital local loop carriers; terminal equipment, such as telephones, integrated services digital network products and video conferencing systems; microelectronic products and software; information technology products and telecom products for the defense sector, and other products, including solar power systems and bank mechanizing products. It also provides value- added services, such as shared hub very-small aperture terminal services, and public mobile radio trunked services and turnkey solutions. Its customers include The Department of Telecommunications, defense, railways, oil sector and corporates in India, and certain African and South Asian nations. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 23, 2007, Credit Analysis & Research Ltd. revised the rating assigned to the 'L' series long term bond issue of ITI Limited to CARE D (SO) [Single D (Structured Obligation)] from CARE AAA (SO) [Triple A (Structured Obligation))] with Credit Watch. The rating revision took into account the delay in the interest payment of the bond issue. The TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned final National ratings of 'D(ind)(SO)' to ITI's INR550 million 'J-1' Series long-term bonds. ITI incurred losses for at least two consecutive years -- INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06. The company is a sick company as per provisions of India's Sick Industrial Companies Act 1985. QUEBECOR: Wants Lease Assumption Period Extended to Aug. 18 ----------------------------------------------------------- Section 365(d)(4) of the Bankruptcy Code, as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which became effective on Oct. 17, 2005, provides that Quebecor World Inc. and its debtor-affiliates have 120 days from the bankruptcy filing, or until May 20, 2008, to assume or reject unexpired leases of nonresidential real property. Certain of the Debtors are lessees or sublessees under approximately 50 unexpired leases and subleases of nonresidential real property. The Unexpired Leases primarily relate to the Debtors' plants, warehouse and storage facilities, and distribution facilities. As of April 7, 2008, the Unexpired Leases remain in effect and have not expired or terminated according to their terms. Thus, each of the Unexpired Leases may constitute an "unexpired lease" subject to assumption or rejection under Section 365 of the Bankruptcy Code. The Debtors ask the U.S. Bankruptcy Court for the Southern District of New York to extend their time to assume or reject the 50 unexpired leases by an additional of 90 days until Aug. 18, 2008. Jeremy Roberts, senior vice president for Corporate Finance and Treasurer of Quebecor World (USA) Inc., relates that since the bankruptcy filing, the Debtors have been called upon to respond to numerous complex issues to stabilize their operations and ensure the viability of their businesses, including, among other things: -- obtaining final approval of a secured postpetition financing facility; -- maintaining relations with customers, employees and vendors; -- reviewing the Debtors' obligations under dozens of leases of real and personal property; -- working to prepare each of the Debtors' schedules of assets and liabilities and statements of financial affairs; -- responding to various information and due diligence requests from the Creditors' Committee and other creditor groups; and -- obtaining Court approval of emergency relief requested in the first day motions. According to Mr. Roberts, the Debtors will continue to spend considerable time and resources in the near future toward related tasks so as to ensure that the restructuring process moves forward in an efficient manner. Mr. Roberts reminds Judge James M. Peck that the Debtors operate at approximately 96 locations throughout the United States, and lease a large number of the premises that are used to operate their businesses. Determining which leases to assume and which to reject will be an integral part of the Debtors' restructuring process, with important ramifications to the overall reorganization. The Debtors are still analyzing all of their leases, and do not expect to be ready to make final decisions concerning all of the Unexpired Leases by May 20, 2008, Mr. Roberts says. In connection with the analysis of their real estate issues, the Debtors obtained the Court's permission to employ Prime Locations, LLC, George Comfort & Sons, Inc. and the Core Network to provide real estate consulting services to the Debtors. Mr. Roberts says the Debtors need more time to: -- prepare this analysis and complete their review, -- consult with key parties, -- discuss with lessors concerning possible renegotiation of over market rental rates and other material terms of the Unexpired Leases; and -- consider the possible assumption, rejection or sale for value of the Unexpired Leases. As an initial matter, Mr. Roberts says, the Unexpired Leases are undeniably important assets of the Debtors' bankruptcy estates. The Debtors believe that the decision to assume or reject these leases must be made, to the fullest extent possible, consistent with the strategies and initiatives being developed as part of the Debtors' business and restructuring plan. "The Debtors are in the early process of developing that plan, and until the process is farther along, the Debtors cannot make an adequately informed evaluation of all of the Unexpired Leases," Mr. Roberts says. "If the Debtors are forced to make a decision to assume or reject all of the Unexpired Leases within the next few weeks, the Debtors run the risks associated with prematurely making decisions with respect to the Unexpired Leases, before athorough analysis has been completed. Specifically, the Debtors might inadvertently elect to assume certain Unexpired Leases that they later determine to be burdensome, creating potential administrative claims if the Debtors later sought to reject or terminate such previously assumed leases. In the alternative, the Debtors might prematurely reject certain Unexpired Leases that the Debtors later discover are critical to the success of their reorganization efforts," Mr. Roberts explains. Additional time, Mr. Roberts asserts, will allow the Debtors to thoroughly assess their real estate needs in the context of their reorganization, thereby mitigating the risk of making premature and uninformed decisions to the detriment of the Debtors, their creditors and the success of their reorganization efforts. Mr. Roberts assures the Court that pending their election to assume or reject each of the unexpired leases, the Debtors will continue to perform all of their obligations arising under the unexpired leases since the bankruptcy filing in a timely fashion. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Seeks 4-Month Extension of Plan Filing Period ------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusive period to: (i) file a plan or plans of reorganization by approximately four months up to Sept. 30, 2008; and (ii) solicit acceptances of that plan by approximately 60 days up to Nov. 28, 2008. The Debtors' motion is pursuant to Section 1121(b) of the Bankruptcy Code establishes an initial period of 120 days after the commencement of a chapter 11 case during which only a debtor may file a plan of reorganization. If the debtor files a plan within the 120-day period, Section 1121(c)(3) extends the exclusivity period to 180 days after the commencement of a chapter 11 case to permit the debtor to garner support for that plan. Section 1121(d) permits a court to extend a debtor's exclusive periods upon a demonstration of cause subject to certain limitations. Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, points out that the Debtors' chapter 11 cases qualify as complex cases. The Debtors are one of the two largest commercial printers in the United States and constitute a complex and sophisticated operation. The Debtors consist of 53 different entities with operations in 29 states that encompass numerous forms of printing and binding, direct mail operations, and freight and transportation services. The Debtors employ approximately 19,500 employees, of which approximately 4,380 are represented by labor unions. In addition to the geographic reach of the Debtors' operations and the variety of services that they provide to their customers, each of the Debtors' printing and mailing facilities is a complicated business operation. The Debtors believe that it is important that they devote their resources to reducing and eliminating inefficiencies, stabilizing their postpetition business operations, and solidifying their relationships with customers, vendors, employees, lessors, service providers and other key constituencies. According to Mr. Canning, the Debtors are currently working to fulfill their obligations under the Bankruptcy Code. Mr. Canning relates that during the first three months of the Debtors' Chapter 11 cases, the Debtors have made substantial progress in addressing a number of major issues they are facing as of the Petition Date. According to Mr. Canning, the fact that the Debtors have been largely devoted to these issues during the first few months of the Chapter 11 Cases justifies the requested extension of the exclusive periods. An extension of the exclusive periods is warranted based on the Debtors' good faith efforts and progress toward reorganization, Mr. Canning says. He adds that the Debtors have been successful in stabilizing numerous aspects of their business operations by anticipating and addressing concerns from customers, employees, vendors and others; and the Debtors have also been cooperative with all of the key stakeholders in their chapter 11 cases. Mr. Canning tells the Court that an extension of the exclusive periods will give the Debtors the flexibility and time necessary to continue in their creditor negotiations. Mr. Canning assures Judge James M. Peck that the Debtors are not seeking an extension to pressure their creditors into accepting the their reorganization demands. "The purpose of the Debtors' present request for an extension . . . [is] to ensure that the Debtors have an opportunity to respond to and address the concerns of all creditor groups in formulating restructuring proposals and the plan of reorganization," Mr. Canning says. Mr. Canning asserts that only after the Debtors address these contingencies will they be in a position to formulate a viable plan for their chapter 11 cases: (a) preparation and filing of their Schedules of Assets and Liabilities and Statements of Financial Affairs; (b) establishment of a claims bar date; (c) a complete review of their unexpired leases and executory contracts; (d) consideration of potential dispositions of certain assets; and (e) development and implementation of restructuring initiatives across the Debtors' lines of business. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Want Claims Removal Period Extended to July 21 -------------------------------------------------------------- Pursuant to Section 1452 of the Judiciary Code and Rules 9006(b) and 9027 of the Federal Rules of Bankruptcy Procedure, Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to extend their time to remove prepetition actions by an additional 90 days up to July 21, 2008. Michael J. Canning. Esq., at Arnold & Porter LLP, in New York, relates that as of the Petition Date, the Debtors were parties to various civil actions pending in other courts and tribunals. The Debtors are evaluating whether they may seek to remove a certain number of the civil actions from state to federal court and subsequently to transfer some or all of those civil actions to the Southern District of New York or the Bankruptcy Court. Mr. Canning says that absent an extension of the removal period, the Debtors risk making premature removal decisions or waiving rights before they have an opportunity to complete an evaluation of these issues. Given the number of civil actions pending and the press of business incident to the commencement of their Chapter 11 cases, the Debtors require additional time to complete their evaluation of these issues. The Debtors have begun the process of determining whether removal is appropriate with respect to the Actions. According to Mr. Canning, this analysis requires review of the facts and the procedural posture of each individual Action, and often must involve coordination with the separate local counsel who represent the Debtors in connection with the Actions. This analysis also includes an evaluation of whether or not an Action could be resolved in connection with a plan of reorganization or settlement, Mr. Canning adds. The Debtors submit that the proposed extension of the Removal Period will provide sufficient additional time to complete this analysis. Mr. Canning assures the Court that an extension of the removal period will not prejudice the right of the adverse parties pursuant to the stayed civil actions because the adverse parties may not prosecute the civil actions absent relief from the automatic stay. According to Mr. Canning, if the Debtors remove any civil action to federal court, the affected adverse party will retain its right to seek remand of the removed civil action back to state court under Section 1452(b). About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. STATE BANK OF INDIA: Moves Closing Date of Scheme to April 30 ------------------------------------------------------------- State Bank of India has extended the closing date of its Employee Share Purchase Scheme for 2008 from April 15, 2008, to April 30, 2008, the bank said in a filing with the Bombay Stock Exchange. According to the bank, all other terms and conditions of the scheme remains the same. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on June 18, 2007, assigned its 'BB' issue rating to the State Bank of India's proposed US$225 million Hybrid Tier I perpetual notes under its US$5 billion MTN program. The Hybrid Tier I notes will be perpetual notes with a call option 10 years from the date of issue. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, Ba2/Not Prime on Financial Strength Rating in June 2006. TATA STEEL: Joins Race to Buy Brazil's AVG Mineracao ---------------------------------------------------- According to various media reports, Tata Steel Limited has offered to acquire AVG Mineracao, which is owned by MMX Mining and Metallics S.A. The reports didn't disclose how much Tata Steel offered for the Brazilian iron ore mining firm but The Economic Times estimated that the transaction could cost the Indian company around INR1,000 crore. There will be a deal if Tata Steel agrees to set up a car manufacturing facility on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro, the Steel Business Briefing quoted MMX President Eike Batista as saying. AVG, which currently has annual production capacity of 2.3 million tonnes, was purchased by MMX in 2007 for US$224 million. AVG's assets include a producing mine in the area known as Serra Azul, Minas Gerais, and some mining rights and leases in the Serra Azul area. The Serra Azul Mines reportedly produced around 1.6 million tons of iron ore in 2006 and approximately 1 million tons of iron ore in the first five months of 2007. MMX put AVG on the block recently after selling two iron ore projects in Brazil to Anglo American for US$5.5 billion in cash, the Steel Guru Web site relates. Also interested to buy AVG are Nucor, POSCO, Techint and Rio Tinto, reports say. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. TATA STEEL: Expects Steel Prices to Increase -------------------------------------------- Tata Steel Limited expects steel prices to increase due to rising cost of iron ore and coal, Reuters reports. According to the report, Tata Steel Managing Director B Muthuramanm said that they are already planning to increase their prices despite the Indian government's efforts to keep them in check in the face of soaring inflation. "Ultimately, I believe market forces will prevail, and there is very little one can do to arrest what will happen as to market forces. The Indian prices, I believe, will also go up (with) . . . international prices," Mr. Muthuramanm was quoted by Reuters as saying. Mr. Muthuraman, the report notes, said the company expects to pass 100% of the increase in costs to customers. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. ================= I N D O N E S I A ================= BERLIAN LAJU: Covenant Failure Doesn't Affect Fitch's B+ Ratings ---------------------------------------------------------------- Fitch Ratings said that Indonesia-based Berlian Laju Tanker's Long-term foreign and local currency Issuer Default Ratings of 'B+' with Stable Outlooks, and the senior unsecured rating of 'B+' on its USD400 million notes due in 2014, are not immediately affected by its failure to meet a gearing-related covenant on domestic bonds amounting to IDR1,300 billion. The company failed to meet the 2.5x debt-to-equity ratio requirement on the affected IDR bonds as per the audited local currency financial statements released for the fiscal year ended December 2007. The affected debt amounts to approximately 8% of BLT's total debt as at 31 December 2007. Meanwhile, the trustees of the affected bonds have provided the company a cure period of 120 days to 180 days from 17 March 2008. As far as Fitch is aware, no other debt of the company is affected by this event. BLT intends to retire IDR400 billion of the bonds in concern, which are due in May 2008 anyway. The company believes that it will be in a position to achieve compliance with the covenant before the end of the cure period, partly due to a change in the Indonesian GAAP that it will adopt in 2008. Furthermore, BLT appears to have other options that could remedy the situation, including negotiating for a higher gearing ratio, benchmarking against its USD financial statements prepared based on IFRS or a waiver. As a last resort, the company can utilise its cash reserves to pre-pay the remaining affected bonds amounting to IDR900 billion. The company had cash reserves and marketable securities of IDR2,661 billion as at 31 December 2007 (excluding restricted cash of USD29.2 million). As part of its deleveraging plan following the debt funded acquisition of Chembulk Tankers LLC in 2007, the company is in the midst of completing several vessel disposals and sale-and- lease-back transactions. The company had sold three of the five vessels identified for disposal in December 2007 and intends to complete the remaining transactions within a short period with negotiations underway. The company also intends to pre-pay the USD250 million bridging loan obtained in December 2007 for the acquisition of Chembulk, mid this year. Fitch is of the view that BLT is in a position to resolve the issues arising from its failure to meet the covenant and will continue to maintain an acceptable liquidity position thereafter. In addition, the agency takes comfort from BLT's committed credit facilities of IDR550 billi0n. However, BLT's ratings can be negatively affected if the company fails to continue to deleverage, with net adjusted debt to operating EBITDAR ratio falling below 5.0x at the end of 2008 and 4.5x at the end of 2009. GARUDA INDONESIA: European Union Retains Flying Ban --------------------------------------------------- The European Union has retained its flying ban on PT Garuda Indonesia due to lack of concrete safety improvements, The Australian News reports citing EU officials. The flight ban prohibits Garuda from flying to any European destinations. The Troubled Company Reporter-Asia Pacific reported on July 17, 2007, that the European Union sent safety experts to Indonesia to review an EU ban on Indonesian airlines. Fifty-one Indonesian airlines, including Garuda, have been barred due to safety concerns. Indonesian officials asserted that EU failed to account the improvements made this year. China View News relates that Garuda Indonesia was surprised to hear the European Commission's decision to extend the ban on the airline since the EU claimed earlier it had carried out the necessary measures to improve safety. According to China View, Garuda spokesman Pudjobroto said the EU decision was unexpected, especially after a Garuda delegation had informed the EU Commission on transportation earlier this month on the progress it had made in its safety commitment. "They acknowledged our changes and were happy we were about to receive a safety certificate from the IATA (International Air Transport Association)," he said, China View notes citing the English-language daily. In a statement, the EU said: "In the case of Garuda Indonesia, the airline was heard by the Commission and the Air Safety Committee composed of Member States experts. The airline has made progress in the implementation of corrective measures, yet this is not sufficient. Furthermore the authorities of Indonesia have still to demonstrate that they have completed the corrective actions. Pending both this demonstration and the completion of remedial action by Garuda and the other airlines it was decided that none of the Indonesian carriers can be withdrawn at this stage from the Community list [of airlines subject to an operating ban in the European Union]." The Australian relates that Indonesia had asked the EU to remove the airline from its blacklist so that President Susilo Bambang Yudhoyono could conduct a state visit to the Netherlands in April. The EU adopted last week its seventh update of the "blacklist". The Commission is imposing a ban on all operations of an additional Ukrainian airline (Ukraine Cargo Airways) as well as on all operations of the Congolese carrier Hewa Bora Airways. At the same time, the Commission is closely monitoring the progress of corrective actions by carriers such as Mahan Air from Iran, TAAG Angola Airlines and all Indonesian carriers, all of which at this stage, remain on the list. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sept. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. ========= J A P A N ========= ELPIDA MEMORY: To Report JPY20 Bln Operating Loss, Nikkei Says -------------------------------------------------------------- Elpida Memory Inc. is expected to post a group operating loss of more than JPY20 billion in January-March, erasing three quarters of profit, Mayumi Negishi writes for Reuters, citing the Nikkei business daily. Nikkei, relates Reuters, said Elpida sales are likely to have stood at about JPY400 billion, down about 18% from the previous year. Elpida Memory, Inc. is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The Company offers its DRAM products to companies in the server, digital consumer electronics, mobile phone, personal computer (PC) and foundry markets. Elpida Memory has two domestic subsidiaries, which are engaged in the manufacture of DRAM products, and five overseas subsidiaries, which specialize in the sale of DRAM products to the Company's overseas customers, in the United States, Europe, Singapore, Taiwan and Hong Kong. Through its associated company, Tera Probe, Inc., Elpida Memory is engaged in the wafer testing process. Headquartered in Tokyo, the Company has seven subsidiaries and one associated companies. The Troubled Company Reporter-Asia Pacific reported on Dec. 10, 2007, that Standard & Poor's Rating Services assigned a BB- for Elpida Memory Inc.'s long-term corporate credit rating with a stable outlook reflecting the company's heavy financial burden, which is required to make regular large investments to maintain and improve its competitiveness. GAP INC: March 2008 Net Sales Decrease 12% at US$1.37 Billion ------------------------------------------------------------- Gap Inc. reported net sales of US$1.37 billion for the five-week period ended April 5, 2008, which represents a 12% decrease compared with net sales of US$1.55 billion for the same period ended April 7, 2007. The company's comparable store sales for March 2008 decreased 18% compared with a 6% increase for March 2007. Comparable store sales by division for March 2008 were: * Gap North America: negative 14% versus positive 4% last year; * Banana Republic North America: negative 8% versus positive 8% last year; * Old Navy North America: negative 27% versus positive 10% last year; and * International: negative 3% versus negative 5% last year. "Overall March traffic and sales results across our brands were disappointing, particularly at Old Navy," Sabrina Simmons, chief financial officer of Gap Inc., said. "With our continued inventory discipline across the brands, we delivered merchandise margins above last year. As we execute our strategy of delivering healthier earnings through improved margins and cost management, we remain comfortable with our previously communicated 2008 annual earnings per share guidance of US$1.20- US$1.27." Year-to-date net sales of US$2.28 billion for the nine weeks ended April 5, 2008, dropped 7% compared with net sales of US$2.46 billion for the nine weeks ended April 7, 2007. The company's year-to-date comparable store sales decreased 13% compared with a 2% increase in the prior year. The company reiterated that it expects diluted earnings per share of US$1.20 to US$1.27 for fiscal year 2008. The company will report April sales on May 8, 2008. Headquartered in San Francisco, California, Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * Moody's Investor Service placed Gap Inc.'s corporate family, senior unsecured debt and probability of default ratings at 'Ba1' in February 2007. The ratings still hold to date with a stable outlook. IHI CORP: Posts JPY20BB Net Income for Fiscal Year Ended Mar. 31 ---------------------------------------------------------------- IHI Corp. reports a net income of JPY20 billion for the fiscal year ended March 31, 2007, Masumi Suga writes for Bloomberg News. According to the report, the net income result was 23% short from IHI's forecast. IHI, in a statement said the smaller-than- predicted full-year profit was because of delays in delivering nuclear equipment and a stronger yen eroded the value of overseas earnings. IHI had a JPY4.6 billion loss earlier, while sales rose 8% to JPY1.32 trillion, unchanged from the forecast, relates Bloomberg. Operating loss, states Bloomberg, widened to JPY18 billion for the year from a previous loss estimate of JPY15 billion and the JPY5.6 billion loss reported a year earlier. Bloomberg quotes IHI's finance director Makoto Serizawa as saying, "As steel and other material costs rose, we had to finally accept the cost estimates of vendors to meet schedules." IHI said the Japanese currency's 15% gain against the dollar eroded earnings from operations by JPY2 billion. About IHI Corp. Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp -- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a Japan-based company engaged in six business segments. The Logistics and Steel segment offers concrete products, automated storages, loaders and others. The Machinery segment offers plastic processing machines, industrial boilers, pumps and others. The Energy Plant segment develops waste incineration facilities, nuclear power plants, thermal power plants and process plants, water treatment plants, renewable power plants and other facilities. The Aerospace segment produces aircraft engine parts and provides aircraft maintenance services. The Ship and Offshore segment builds container ships, bulk carriers, tankers and other ships, as well as develops marine equipment and machinery and provides design and engineering services. The Others segment provides real estate, financial and insurance services. The Troubled Company Reporter-Asia Pacific reported on Feb. 14, 2008, that Standard & Poor's Ratings Services revised its outlook on the long-term corporate credit rating on IHI Corp. to negative from stable, reflecting growing expectations that the company's steady earnings recovery would be delayed, following the Tokyo Stock Exchange's announcement that it will place the company's stock on "alert status." The outlook change also reflects concerns that the company's financial flexibility will be constrained to some extent by this action. At the same time, Standard & Poor's affirmed its 'BB+' long-term corporate credit and 'BBB-' long-term senior unsecured issue ratings on the company. SOLO CUP: Brian O'Connor Replaces Peter W. Calamari as Director --------------------------------------------------------------- Effective March 31, 2008, Peter W. Calamari, a director of the Solo Cup Company designated by Vestar Capital Partners, resigned his position as a director of the company. The company said that Mr. Calamari did not resign due to any disagreement with the company on any matter relating to the company's operations, policies or practices. Mr. Calamari was replaced by Brian P. O'Connor, effective April 3, 2008. Mr. O'Connor has also been named to the company's audit committee. In August 2000, Mr. O'Connor joined Vestar and most recently has served there as vice president since December 2006. Prior to joining Vestar, Mr. O'Connor was a member of the Merchant Banking group at Donaldson, Lufkin & Jenrette from August 1998 to June 2000. Vestar Capital Partners, together with certain of its affiliates, own 32.7% of Solo Cup Investment Corporation, the company's parent. About Solo Cup Company Headquartered Highland Park, Illinois, Solo Cup Company -- http://www.solocup.com/-- is a a privately owned, publicly reporting company exclusively focused on the manufacture of single-use products used to serve food and beverages for the consumer/retail, foodservice and international markets. Solo has broad expertise in paper, plastic and foam disposables and creates brand name products under the Solo and Sweetheart names. The company was established in 1936 and has a global presence with facilities in Japan Canada, Europe, Mexico, Panama and the United States. At Dec. 31, 2007, the company's consolidated balance sheet showed US$1.182 billion in total assets, US$1.096 billion in total liabilities, and US$86.1 million in total shareholders' equity. * * * Solo Cup company continues to carry Moody's Investor Service's 'Caa2' senior subordinate rating, which was placed in March 2007. ========= K O R E A ========= KOREAN EXPRESS: Asiana Airline & 13 People Buy 24 Million Shares ---------------------------------------------------------------- Asiana Airline Inc. and 13 individuals have acquired 24,000,000 shares of common stock of Korea Express Co. Ltd, Reuters reports. According to the report, as a result, Asiana Airline and the individuals now hold a 65.38% stake of the company. "It has increased by a 51.37% since February 29, 2008," Reuters relates. Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/-- provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. Korea Express Bank has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Korea Express President Lee Kook- Dong will decide with a Seoul court about when to sell the company, which has a market value of US$601 million. In the company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. Korea Investors Service gave the company a BB rating. KRISPY KREME: Lenders Approve Modifications in Credit Facilities ---------------------------------------------------------------- Krispy Kreme Doughnuts Inc. obtained amendments to the company's secured credit facilities which, among other things, relax certain financial covenants. Those covenants were scheduled to become more stringent during fiscal 2009. The amendments also provide that the interest rate on the loans outstanding under the facilities will increase from LIBOR plus 3.50% to LIBOR plus 5.50%, with a minimum LIBOR rate of 3.25%, and fees on letters of credit outstanding under the facilities will increase from 3.75% to 5.75%. As of Feb. 3, 2008, the outstanding balance of the term loan was US$76.1 million and outstanding letters of credit were US$20.3 million. There were no amounts drawn under the revolving facility, which was reduced from US$50 million to US$30 million. The term loan balance reflects a prepayment of US$10.9 million made on February 1 in connection with the completion of the sale of the company's mix manufacturing and distribution facility in Effingham, Illinois. US$160,000,000 Credit Facility Krispy Kreme Doughnut Corporation, a wholly owned subsidiary of Krispy Kreme Doughnuts, Inc., entered into a US$160 million credit agreement, dated as of February 16, 2007, with Credit Suisse, Cayman Islands Branch, as administrative agent, collateral agent, issuing lender and swingline lender, and the lenders party. The credit facility comprises a US$110 million term loan and a US$50 million revolving loan. The term loan amortizes in quarterly installments of US$275,000 beginning in April 2007 with a final payment of the remaining term loan