T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, April 16, 2008, Vol. 11, No. 75 Headlines A U S T R A L I A AUSWAY CORPORATION: Liquidator Gives Wind-Up Report CREATIVE HOME: Liquidator Presents Wind-Up Report GREEN TRIANGLE: Placed Under Voluntary Liquidation MRT TRAILERS: Members and Creditors to Meet on April 24 N.B.S. BLIND: Final Meeting Slated for April 21 OPES PRIME: Emini's Former Work Colleague Emerges as Key Link OPES PRIME: ANZ Sells Chris Murphy's Super Assets OPES PRIME: ANZ Chief Mike Smith Will Lead Bank's Investigation OPULENT GROUP: Members and Creditors to Meet Today PETER YOUNG: Commences Liquidation Proceedings RICKPET PTY: Members Resolve to Liquidate Business SHOP AMERICA: To Declare First Dividend on May 6 SPARTAN PAINTERS: Undergoes Liquidation Proceedings C H I N A & H O N G K O N G & T A I W A N ALERIS INT'L: Posts US$128MM Net Loss in Year Ended December 31 BESTNAR MANUFACTURING: Members' Final Meeting Set for May 16 BIG STAR: Members' Final Meeting Set for May 5 CHANCO MANANGMENT: Creditors' Proofs of Debt Due May 3 CHINA EASTERN: Plans to Add 19 Aircraft This Year LINK BILLION: Creditors' Proofs of Debt Due May 5 GALLAS PUBLISHING: Members & Creditors to Meet on May 8 HENG JU: Commences Liquidation Proceedings HUTCHISON HARBOUR ASIA: Members' Final Meeting Set for May 5 HUTCHISON HARBOUR H. K.: Members' Final Meeting Set for May 5 KLASSNO FOODS: Members' Final Meeting Set for May 5 KLASSNO FOOD & BEVERAGES: Members' Final Meeting Set for May 5 MAIN CHANNEL: Creditors' Proofs of Debt Due May 3 OASIS AIRLINES: Cheung Kong Denies Acquisition Offer PACIFIC KINETIC: Members' Final Meeting Set for May 9 PROFIT (CHINA-H.K.): Commences Liquidation Proceedings I N D I A BIRLA VXL: Changes Company Name to "Digjam Ltd" DECCAN AVIATION: To Hike Investments & Inter-Corp. Loans Limits GENERAL MOTORS: Idles Arlington Assembly Plant for Three Weeks QUEBECOR WORLD: Seeks Approval to Hire KPMG (US) as Tax Advisor QUEBECOR WORLD: Wants to Hire KPMG (Canada) as Tax Consultant QUEBECOR WORLD: Wants Ernst & Young as Tax Services Provider TATA MOTORS: Nano May See Rival From Ajanta Group, Report Says I N D O N E S I A FREEPORT-MCMORAN: Indonesia OKs Unit's Plan to Slash Ore Output GARUDA INDONESIA: Records 700,000 Passengers in 2007 MEDCO ENERGI: Inks US$565 Mil. Gas Deal With Perusahaan Listrik PERUSAHAAN GAS: Inks Interim Gas Supply Deal With ConocoPhillips PT INCO: To Release First Quarter 2008 Results on April 25 J A P A N FLOWSERVE CORP: Annual Shareholders' Meeting Set for May 30 FLOWSERVE CORP: Fitch Affirms Issuer Default Rating at BB JVC CORP: To Halt Flat-Panel TV Business in Japan, Nikkei Says JVC CORP: Revises Year Ended March 31 Net Loss to JPY47.8BB SANYO ELECTRIC: Net Income "Slightly" Higher Than Forecast SPANSION INC.: Inks Patent Cross-License Agreement With IBM K O R E A NEXUS INVESTMENT: Appoints Yim Yang Jin as CEO SHINWA INTEREK: Wins Patent on Optical Sheet YOUNGCHANG SILUP: To Raise KRW5.3 Billion From Share Issuance YOUNGCHANG SILUP: To Buy 18% Stake in Microrobot for KRW10 Bil. M A L A Y S I A PAXELENT CORPORATION: Bourse to Delist Securities on April 23 SELOGA: To Include Usage of Share Premium Reserve in Reform Plan SOLUTIA INC: Has 60,766,560 Outstanding Shares at February 29 SOLUTIA INC: Court Approves Settlement Pact With Solvay SOLUTIA INC: Harbinger Entities Disclose 30.1% Equity Stake SUNWAY INFRA: Receives Take-Over Offer From Infra Bumitek TRIPLC BERHAD: Appoints Mohammed Yusuf as Executive Director UBG BERHAD: Seeks Shareholders' Approval for Proposed Amendment N E W Z E A L A N D AQUA TILES: Wind-Up Petition Hearing Set for June 13 AVENUE ONE: Fixes April 18 as Last Day to File Claims BLUE CHIP: Taps Timothy Patrick Ward as Liquidator COMPOUND PROPERTIES: Commences Liquidation Proceedings MARSDEN VILLAS: Faces Artscape Limited's Wind-Up Petition OCTANE CREATIVE: Court to Hear Wind-Up Petition on May 9 PROGRESSIVE MARKETING: Shareholders Opt to Liquidate Business REMUERA DENTAL: Appoints Mark van Rossem as Liquidator SHAUN HALL: Creditors' Proofs of Debt Due April 18 WOODLAND DEVELOPMENTS: Taps Parsons and Kenealy as Liquidators S I N G A P O R E ALTANA PTE: Requires Creditors to File Claims by May 12 BAN HIN: Fixes May 23 as Last Day to File Claims ESPLANADE INVESTMENTS: Creditors' Proofs of Debt Due April 25 SOUNDBUZZ MEDIA: Creditors' Proofs of Debt Due May 12 T H A I L A N D BANK OF AYUDHYA: Firm Created to Resolve Distressed Assets BLOCKBUSTER INC: Makes US$1.3BB Unsolicited Bid for Circuit City * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= AUSWAY CORPORATION: Liquidator Gives Wind-Up Report --------------------------------------------------- Ausway Corporation Pty. Ltd. held a joint meeting for its members and creditors on April 15, 2008. During the meeting, the company's liquidator, Colin R. McDonald, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: Colin R. McDonald Chartered Accountant PO Box 4371 Forster Shopping Village New South Wales 2428 Australia Telephone:(02) 6555 9119 Facsimile:(02) 6555 9190 About Ausway Corporation Ausway Corporation Pty. Ltd. operates used merchandise stores. The company is located at Ashfield, in New South Wales, Australia. CREATIVE HOME: Liquidator Presents Wind-Up Report ------------------------------------------------- Creative Home Concepts Pty. Ltd. held a joint meeting for its members and creditors on April 15, 2008. During the meeting, the company's liquidator, Colin R. McDonald provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: Colin R. McDonald Chartered Accountant PO Box 4371 Forster Shopping Village New South Wales 2428 Australia Telephone:(02) 6555 9119 Facsimile:(02) 6555 9190 About Creative Home Creative Home Concepts Pty. Ltd. operates furniture stores. The company is located at Dandenong, in Victoria, Australia. GREEN TRIANGLE: Placed Under Voluntary Liquidation -------------------------------------------------- Green Triangle Engineering Pty. Ltd.'s members agreed on Feb. 29, 2008, to voluntarily liquidate the company's business. The company has appointed Barry Keith Taylor to facilitate the sale of its assets. The liquidator can be reached at: Barry Keith Taylor B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Green Triangle Green Triangle Engineering Pty. Ltd. is a distributor of fabricated structural metal. The company is located at Kalangadoo, in South Australia, Australia. MRT TRAILERS: Members and Creditors to Meet on April 24 ------------------------------------------------------- MRT Trailers Pty. Ltd. will hold a final meeting for its members and creditors at 9:30 a.m. on April 24, 2008. During the meeting, the company's liquidators, Peter Goodin and Robyn Erskine at Brooke Bird Insolvency Practitioners, will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: Peter Goodin Robyn Erskine Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone:(03) 9882 6666 About MRT Trailers MRT Trailers Pty. Ltd. provides management consulting services. The company is located at Woodend, in Victoria, Australia. N.B.S. BLIND: Final Meeting Slated for April 21 ----------------------------------------------- N.B.S. Blind Supplies Pty. Ltd. will hold a final meeting for its members and creditors at 9:30 a.m. on April 21, 2008. During the meeting, the company's liquidator, Robyn Erskine and Peter Goodin at Brooke Bird Insolvency Practitioners, will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone:(03) 98826666 About N.B.S. Blind N.B.S. Blind Supplies Pty. Ltd. is a distributor of curtains and draperies. The company is located at Dandenong South, in Victoria, Australia. OPES PRIME: Emini's Former Work Colleague Emerges as Key Link ------------------------------------------------------------- Richard Gluyas of The Australian reports that a former work colleague of Opes Prime Group Ltd. chief executive Laurie Emini has emerged as another key link in the complex web of relationships surrounding the collapsed broker. Mr. Gluyas relates that a senior Opes source said Cleo Nanni had a margin lending account with Opes that was managed by the chief executive. Mr. Nanni was at Tricom when Mr. Emini acted as a consultant to the firm about 2002 to build a leveraged financial products business, the report relates. According to The Australian, Mr. Nanni is also a 25 percent shareholder in Dardanelle Capital, a company half-owned by the Opes satellite Leveraged Capital, which, in turn, is a joint venture between Mr. Emini and his Opes co-founder, Julian Smith. Mr. Nanni denied he had been spared margin calls and insisted he was called like everyone else, Mr. Gluyas reports. According to Mr. Gluyas, Mr. Nanni described Dardanelle as a "trading vehicle", but would not quantify his losses or the level of the company's trading activity. "The whole Opes thing has been devastating," he told Mr. Gluyas. In a separate report, Michael Pelly of The Australian relates that the law firm Slater and Gordon won two injunctions last week to stop the ANZ bank selling shares owned by Melewar Steel Ventures and Conquest Mining Managing Director John Terpu. The firm noted that "mum and dad" investors are the forgotten victims in the aftermath of the Opes Prime collapse, The Australian reports. More than 100 people had reportedly called the firm for assistance. Slater and Gordon partner Ken Fowlie told Mr. Pelly that the callers ranged from those who had lost thousands of dollars to those with exposure in the "tens of millions" of dollars. "There is a large range of investors," The Australian quotes Mr. Fowlie as saying. "The impression I get is that you are dealing with very much mums and dads and other people who were trying to build up their asset base and thought shares was the way to do it. . . . These are people who are running their own small businesses, in middle-level management and retirees. It's not like they are people who can afford to lose the money or are colourful racing identities." According to The Australian, Mr. Fowlie noted that administrators Ferrier Hodgson had said 1,200 people were affected. A representative of the firm is on the creditors' committee. 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: ANZ Sells Chris Murphy's Super Assets ------------------------------------------------- Chris Merritt and Adele Ferguson of The Australian report that ANZ Bank has sold off every asset owned by the family superannuation fund of solicitor Chris Murphy in its scramble to recover debts owed by Opes Prime Group Ltd. According to The Australian, the bank seized the Murphy family's superannuation just days after the solicitor refused Opes chief executive Laurie Emini's request to use their superannuation to ease the collateral squeeze on Opes Prime. Mr. Murphy and his wife, Agnes Bruck, are considering resorting to litigation to regain their superannuation. Mr. Merritt and Ms. Ferguson relate that Opes Prime receivers and ANZ Bank declined to comment on the issue. According to Mr. Merritt and Ms. Ferguson, the Murphy family superannuation fund was worth $700,000 and it wasn't the only one that has had its shares seized as collateral by Opes Prime banks ANZ and Merrill Lynch. Documents obtained by The Australian reveal a company called Goldstein Enterprises lost more than $124,966 in cash and a further $304,314 from its super fund, Mr. Merritt and Ms. Ferguson report. In a separate report, Mr. Merritt relates that Mr. Murphy rejected speculation that his massive share trading with Opes Prime was a front for Melbourne gangsters. "The only Melbourne criminal I know is a man called Mick Sayers, who was shot dead 10 years ago," Mr. Murphy told Mr. Merritt. According to The Australian, Mr. Murphy said he traded billions of dollars' worth of shares over a two-year period, but he never traded on behalf of other parties; the only exception was his trading partnership with Opes chief executive Laurie Emini and other Opes partners. "I have been a solicitor since 1972 and I cannot recall that I have ever met or acted for anyone involved in legal or illegal actions in Melbourne. . . . I have no partners in anything except my wife and my only venture ever in a trading partnership was Sarah Brown," The Australian quotes Mr. Murphy. Speculations have been swirling after revelations of his massive trading activities and the involvement of Melbourne underworld figure Mick Gatto in the quest to recover assets for the Opes Prime victims, Mr. Merritt relates. 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: ANZ Chief Mike Smith Will Lead Bank's Investigation --------------------------------------------------------------- ANZ Bank chief executive Mike Smith was forced to take control of an internal investigation of the group's role in the Opes Prime Group Ltd.'s collapse because the bank was concerned by the damage it brought to its reputation, George Lekakis of Herald Sun reports. Mr. Lekakis relates Mr. Smith revealed that ANZ had reviewed its exposures to stockbrokers and margin lenders, including Opes Prime, after another client, Tricom Securities, experienced liquidity issues in late January. "I think these exposures were reviewed but the businesses were seen to be still running OK," Herald Sun quotes Mr. Smith as saying. ANZ's chief of institutional banking and former chief risk officer, Peter Hodgson, will no longer be involved in overseeing the review of securities lending because the bank wants the inquiry to be as objective as possible, the report adds. Instead, Mr. Lekakis relates, two other senior ANZ executives not involved with the institutional division will be seconded to the review -- David Hisco and Chris Page. Former Westpac director and KPMG principal David Crawford has also been appointed to assist the review, Herald Sun notes. According to Herald Sun, Mr. Smith explained: "The review will examine what has transpired, the accountability that ANZ and individual staff members might have for what has occurred, and a remedial program to swiftly address all the issues we identify." Mr. Lekakis notes that a newspaper report earlier suggested the Australian Stock Exchange failed to detect the questionable transactions during an on-site review of Opes' operations in October 2007. ASX spokesman Matthew Gibbs told Mr. Lekakis that he can't comment on the allegations because the Opes Prime matters were before the courts. "At all times ASX's compliance team was adequately resourced to monitor Opes Prime's compliance with ASX operating rules. . . . On-site reviews are quite targeted and only take into account business specific to ASX obligations -- they are not comprehensive audits of a participant's entire business or control structure," Herald Sun quotes Mr. Gibbs. 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. OPULENT GROUP: Members and Creditors to Meet Today -------------------------------------------------- The Opulent Group Pty. Ltd. will hold a final meeting for its members and creditors at 11:00 a.m. today. During the meeting, the company's liquidator, Bruce Mulvaney at Bruce Mulvaney & Co., will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Bruce Mulvaney Bruce Mulvaney & Co. 613 Canterbury Road, 1st Floor Surrey Hills, Victoria 3127 Australia Telephone:(03) 9896 9000 Facsimile:(03) 9896 9001 About The Opulent Group The Opulent Group Pty. Ltd. provides communications services. The company at Bundoora, in Victoria, Australia. PETER YOUNG: Commences Liquidation Proceedings ---------------------------------------------- Peter Young Construction Pty. Ltd.'s members agreed on March 4, 2008, to voluntarily liquidate the company's business. The company has appointed Samuel Richwol to facilitate the sale of its assets. The liquidator can be reached at: Samuel Richwol O'Keeffe Walton Richwol Chartered Accountants 431 Burke Road, Suite 3 Glen Iris VIC 3146, Australia About Peter Young Peter Young Construction Pty. Ltd. provides plastering, drywall, acoustical, and insulation work. The company is located at West Melbourne, in Victoria, Australia. RICKPET PTY: Members Resolve to Liquidate Business -------------------------------------------------- Rickpet Pty. Ltd.'s members agreed on March 5, 2008, to voluntarily liquidate the company's business. The company has appointed Richard John Cauchi and David James Lofthouse to facilitate the sale of its assets. The liquidators can be reached at: Richard John Cauchi David James Lofthouse CJL Partners 180 Flinders Lane, Level 3 Melbourne, Victoria 3000 Australia Telephone:(03) 9639 4779 Facsimile:(03) 9639 4773 About Rickpet Pty. Rickpet Pty. Ltd. is a distributor of wood kitchen cabinets. The company is located at Airport West, in Victoria, Australia. SHOP AMERICA: To Declare First Dividend on May 6 ------------------------------------------------ Shop America (Australasia) Limited, which is in liquidation, will declare first and final dividend on May 6, 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. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on January 25, 2008. The company's liquidator is: John Vouris Lawler Partners GPO Box 5446 Sydney, New South Wales 2000 Australia Telephone:(02) 8346 6000 About Shop America Shop America (Australasia) Limited is a theatrical producer. The company is located at Bellevue Hill, in New South Wales, Australia. SPARTAN PAINTERS: Undergoes Liquidation Proceedings --------------------------------------------------- Spartan Painters Pty. Ltd.'s members agreed on March 4, 2008, to voluntarily liquidate the company's business. The company has appointed Barry Keith Taylor to facilitate the sale of its assets. The liquidator can be reached at: Barry Keith Taylor B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Spartan Painters Spartan Painters Pty. Ltd. provides business services. The company is located at Sydenham, in Victoria, Australia. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== ALERIS INT'L: Posts US$128MM Net Loss in Year Ended December 31 --------------------------------------------------------------- Aleris International Inc. reported results for the fourth quarter and full year ended Dec. 31, 2007. For three months ended Dec. 31, 2007, the company incurred net loss of US$114.0 million compared to net income of US$10.9 million for the same period in the previous year. The loss from continuing operations includes US$51.2 million of special items, including US$21.6 million in restructuring and other charges, US$15.1 million from purchase accounting, and US$11.2 million in unrealized mark-to-market losses on derivative financial instruments. In addition, the fourth quarter results include amortization expense of US$9.2 million as a result of the company's acquisition by Texas Pacific Group, an increase of US$4.0 million from the comparable period of 2006. The continued softness in the North American building and construction and automotive industries well as destocking in the North American and European distribution industries impacted fourth quarter shipment levels and profitability. "Fourth quarter performance was significantly impacted by reduced volumes in our Global Rolled and Extruded Products business," Steven J. Demetriou, chairman and chief executive officer, said. "The U.S. construction and automotive industries continued to weaken and demand in certain European end uses was impacted by customer inventory destocking. We have taken aggressive actions to offset the reduced demand in North America, including the announced closure of our Bedford, Ohio and Toronto, Canada paint facilities, and the temporary reduction of manufacturing at our Richmond, Virginia rolling mill." "The cost performance of our European rolled products business in the fourth quarter was negatively impacted by the complexity and activity associated with the completion of our state-of-the- art 160" hot mill in Koblenz, Germany and the Duffel, Belgium plate project. However, both projects are successfully on-line and production has met our expectations. Over the long-term, the investment of capital into our European rolled products business will allow us to expand our production of aerospace and other heat treat plate and sheet, brazing sheet and other high-end product offerings." For full year 2007, the company has net loss of US$128.6 million compared to net income of US$70.3 million in 2006. The loss from continuing operations contains US$146.2 million of unfavorable special items including US$104.3 million from purchase accounting, US$32.8 million of restructuring and other charges, and US$9.1 million in sponsor management fees. In addition, the 2007 results include amortization expense of US$40.1 million, an increase of US$33.0 million over 2006 as a result of the TPG acquisition. In 2006, Aleris reported revenues of US$4.2 billion and income from continuing operations of US$30.8 million. The 2006 results included US$98.5 million of unfavorable special items. In addition, operating results were negatively impacted by tightening scrap spreads in its North American specification alloy business well as the higher costs of alloys and hardeners used in the manufacturing process, negative effect of metal price lag and approximately US$32 million of out of the ordinary cost including higher absorption, environmental reserves and other items. Free cash flow from continuing operations for 2007 was US$421.7 million, driven by aggressive working capital management that yielded increased turns from 5.2 to 6.6 per year and a decrease in days of working capital from 70 to 56 in 2007 versus 2006. During the fourth quarter, the company recorded US$21.6 million of restructuring and other charges. These charges resulted from the impairment of long-lived assets at the Monterrey, Mexico recycling facility, the Toronto, Ontario paint facility, and the Bedford, Ohio coating facility as a result of the announced closure of those facilities and severance costs related to the departure of certain executive officers. Restructuring and other charges for the full year of US$32.8 million included the fourth quarter charges as well as costs associated with several acquisitions that were not consummated and other facility consolidations. Approximately US$9.5 million of the total restructuring and other charges will result in cash payments, primarily in 2008. Capital expenditures wereUS$191.8 million in 2007, compared with US$119.4 million for the previous year. The increase is primarily attributable to a full year of the Corus Aluminum acquisition and the expansion projects which accounted for US$137.1 million of capital expenditures in 2007. The company ended the year with US$2.7 billion of net debt and US$369 million of liquidity, excluding the impact of the Zinc sale. Pro forma for the application of the net proceeds from the Zinc sale, net debt was US$2.4 billion as of Dec. 31, 2007. Aleris' management has completed its assessment of the effectiveness of the company's internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act of 2002. Based upon its documentation, testing and evaluation, Management has concluded that the company did not have effective internal control over financial reporting as of Dec. 31, 2007; within the context of the framework developed by the Committee of Sponsoring Organizations of the Treadway Commission. At Dec. 31, 2007, the company's balance sheet showed total assets of US$5.117 billion, total liabilities ofUS$4.269 billion and total shareholders' equity of approximatelyUS$0.848 billion. About Aleris International Inc Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. The company has production facilities in China. * * * Moody's Investors Service placed Aleris International Inc.'s long-term corporate family rating at 'B2' in November 2006. The rating still holds to date with a stable outlook. BESTNAR MANUFACTURING: Members' Final Meeting Set for May 16 ------------------------------------------------------------ Members of Bestnar Manufacturing Limited will have their final general meeting on May 16, 2008, in Room C on the 16th Floor of Chinaweal Centre at 414-424 Jaffe Road, Wanchai, 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: Lau Wing Ling Chinaweal Centre, Room C, 16th Floor 414-424 Jaffe Road Wanchai, Hong Kong BIG STAR: Members' Final Meeting Set for May 5 ---------------------------------------------- Members of Big Star (H.K.) Limited will have their final general meeting on May 5, 2008, at 905 Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: James T. Fulton Cordelia Tang 905 Silvercord, Tower 2 30 Canton Road, Tsimshatsui Kowloon, Hong Kong CHANCO MANANGMENT: Creditors' Proofs of Debt Due May 3 ------------------------------------------------------ Creditors of Chanco Management Company Limited are required to file their proofs of debt by May 3, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 17, 2008. The company's liquidator is: Lam Ying Sui Allied Kajima Building, Room 1004-5 138 Gloucester Road, Wanchai Hong Kong CHINA EASTERN: Plans to Add 19 Aircraft This Year ------------------------------------------------- China Eastern Airlines Corp. plans to add 19 aircraft this year as economic growth spurs travel demand in China, Irene Shen of Bloomberg News reports. The carrier will receive 17 Airbus SAS planes and two Boeing Co. aircraft, the report adds. Bloomberg notes that China Eastern didn't say whether any of the 223 planes in operation at the end of 2007 will be retired. China Eastern aims to boost passenger numbers 10% this year, banking on the country's surging economy and the 1.5 million visitors expected to attend the Beijing Olympics, Bloomberg says. China Eastern expects to fly 43 million travelers this year, Bloomberg relates. Cargo volume may climb 14% to 1.07 million tons, the airline said in a statement, the report adds. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. LINK BILLION: Creditors' Proofs of Debt Due May 5 ------------------------------------------------- Creditors of Link Billion Trading Limited are required to file their proofs of debt by May 5, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 26, 2008. The company's liquidators are: Ricky P.O. Chong Cordelia Tang 905 Silvercord, Tower 2 30 Canton Road, Tsimshatsui Kowloon, Hong Kong GALLAS PUBLISHING: Members & Creditors to Meet on May 8 ------------------------------------------------------- Gallas Publishing Group Limited will hold a joint meeting for its members and creditors at 3:00 p.m. and 3:30 p.m. respectively, on May 8, 2008. At the meeting, the company's liquidators, Jackson IP will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Jackson IP Duke of Windsor Building Social Service Building, Room 203, 2nd Floor No. 15 Hennesy Road Wanchai, Hong Kong HENG JU: Commences Liquidation Proceedings ------------------------------------------ Heng Ju New Town Development Limited's members agreed on March 27, 2008, to voluntarily liquidate the company's business. The company has appointed Chan Chi Bor and Li Fat Chung to facilitate the sale of its assets. The liquidators can be reached at: Chan Chi Bor Li Fat Chung Malaysia Building, Unit 1202, 12th Floor No. 50 Gloucester Road Wanchai, Hong Kong HUTCHISON HARBOUR ASIA: Members' Final Meeting Set for May 5 ------------------------------------------------------------ Members of Hutchison Harbour Ring Asia Pacific Limited will have their final general meeting on May 5, 2008, at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: Ying Hing Chui Chung Mui Yin, Diana Three Pacific Place, Level 28 1 Queen's Road East, Hong Kong HUTCHISON HARBOUR H. K.: Members' Final Meeting Set for May 5 ------------------------------------------------------------- Members of Hutchison Harbour Ring Hong Kong Limited will have their final general meeting on May 5, 2008, at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: Ying Hing Chui Chung Mui Yin, Diana Three Pacific Place, Level 28 1 Queen's Road East, Hong Kong KLASSNO FOODS: Members' Final Meeting Set for May 5 --------------------------------------------------- Members of Klassno Foods Limited will have their final general meeting on May 5, 2008, at San Toi Building, 7th Floor, 139 Connaught Road Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: Chow Sheung Bing Keung Sai Tung San Toi Building, 7th Floor 139 Connaught Road Central, Hong Kong KLASSNO FOOD & BEVERAGES: Members' Final Meeting Set for May 5 -------------------------------------------------------------- Members of Klassno Food & Beverages Limited will have their final general meeting on May 5, 2008, at San Toi Building, 7th Floor, 139 Connaught Road Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: Chow Sheung Bing Keung Sai Tung San Toi Building, 7th Floor 139 Connaught Road Central, Hong Kong MAIN CHANNEL: Creditors' Proofs of Debt Due May 3 ------------------------------------------------- Creditors of Main Channel Investment Limited are required to file their proofs of debt by May 3, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 17, 2008. The company's liquidator is: Lam Ying Sui Allied Kajima Building, Room 1004-5 138 Gloucester Road Wanchai, Hong Kong OASIS AIRLINES: Cheung Kong Denies Acquisition Offer ---------------------------------------------------- Cheung Kong (Holdings) Ltd. said it hasn't made any offer to acquire Oasis Hong Kong Airlines Ltd., Kelvin Wong of Bloomberg News reports. "Cheung Kong has not made any offer to purchase Oasis and is not exploring the matter," Wendy Tong Barnes, Cheung Kong's spokeswoman in Hong Kong, said in a statement intercepted by Bloomberg. It was earlier reported by Ming Pao Daily that Cheung Kong may acquire the airline, Bloomberg says. Cheung Kong received a share option in exchange for a personal loan to Oasis Chairman Raymond Lee, Bloomberg relates. About Oasis Airlines Oasis Hong Kong Airlines commenced service in October 2006. The airline flew daily non-stop between Hong Kong and London and 6 times weekly between Hong Kong and Vancouver. It stopped flying on April 9, 2008. The Troubled Company Reporter-Asia Pacific reported on April 10, 2008, that the company applied for a voluntary liquidator. Reports said that Oasis Airlines had accumulated losses of as much as HK$1 billion (US$128 million) and was losing more than HK$1 million a flight. The TCR-AP, citing Bloomberg, reported that the airline was set up by Chairman Raymond Lee, a minister and property investor. Mr. Lee and his wife, executive director Priscilla Lee Hwang, together hold a stake of between 50% and 60%. PACIFIC KINETIC: Members' Final Meeting Set for May 9 ----------------------------------------------------- Members of Pacific Kinetic Limited will have their final general meeting on May 9, 2008, at Room B, Season Commercial Building, 8th Floor, 3 Humphreys Ave., Tsimshatsui, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tse Ka Yee Season Commercial Building, Room B, 8th Floor 3 Humphreys Ave. Tsimshatsui, Hong Kong PROFIT (CHINA-H.K.): Commences Liquidation Proceedings ------------------------------------------------------ Profit (China-H.K.) Limited's members agreed on March 25, 2008, to voluntarily liquidate the company's business. The company has appointed Leung Shi Ho to facilitate the sale of its assets. The liquidator can be reached at: Leung Shi Ho Tung Wai Commercial Building, 27th Floor Gloucester Road Wanchai, Hong Kong ========= I N D I A ========= BIRLA VXL: Changes Company Name to "Digjam Ltd" ----------------------------------------------- Birla VXL Ltd's name has been changed to "Digjam Ltd" pursuant to the company's fresh Certificate of Incorporation, the company disclosed in a filing with the Bombay Stock Exchange. In a separate BSE filing, the company said it will be publishing audited results for the quarter ended March 31, 2008, for the accounting year from April 1, 2007, to March 31, 2008, hence it will not be publishing unaudited estimated results for the that quarter. Headquartered in Gujarat, Birla VXL Ltd is a part of the S.K. Birla Group and manufactures fabrics for suitings under the brand name DIGJAM. In July 2004, the High Courts of Gujarat and Punjab & Haryana approved the company's Scheme of Arrangement, under Sections 391 to 394 of the Companies Act, 1956. The Scheme, which took effect on March 30, 2006, among others provides the debt and capital restructuring and transfer of OCM Division of the company to its wholly owned subsidiary OCM India Ltd. DECCAN AVIATION: To Hike Investments & Inter-Corp. Loans Limits --------------------------------------------------------------- Deccan Aviation Ltd's shareholders have passed a special resolution increasing limits of inter-corporate loans and investments of up to a sum not exceeding INR1,000 crore regardless that the aggregate of the loans and securities may exceed the percentages prescribed under Section 372A of the Companies Act, 1956, a filing with the Bombay Stock Exchange reveals. The carrier's shareholders, by way of postal ballot, passed the resolution with requisite majority. As previously reported by the Troubled Company Reporter-Asia Pacific, Deccan Aviation's shareholders and creditors will hold separate meetings on Thursday to consider approving the composite scheme of arrangement between the company, Deccan Charters Ltd and Kingfisher Airlines Ltd. 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. GENERAL MOTORS: Idles Arlington Assembly Plant for Three Weeks -------------------------------------------------------------- General Motors Corp. idled an assembly plant in Arlington, Texas, for three weeks, starting April 14, 2008, due to low demand of sport utility vehicles, The Associated Press reports. The plant, which manufactures large SUVs such as the Chevrolet Tahoe/GMC Yukon, Chevrolet Suburban/GMC Yukon XL, and Cadillac Escalade, will displace 2,400 employees, AP relates. As reported in the Troubled Company Reporter on April 2, 2008, GM dealers in the U.S. delivered 282,732 vehicles in March, a decrease of 13% when compared with the same month a year ago. For the first three months of 2008, GM total sales of 805,720 vehicles were down 11% compared with a year ago. Retail share appears to have remained stable throughout the month and the quarter. AP recounts that GM distributed some axles from the plant to other plants that makes pickup trucks due to the strike of GM auto parts supplier American Axle & Manufacturing Holdings Inc. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four-year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. QUEBECOR WORLD: Seeks Approval to Hire KPMG (US) as Tax Advisor --------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to employ KPMG LLP (US) as their tax compliance and tax consulting advisors, nunc pro tunc to April 7, 2008. The Debtors selected KPMG US because of the firm's extensive experience in providing tax consultation and restructuring assistance to businesses pursuing reorganization under chapter 11 of the Bankruptcy Code. The firm is also familiar with the Debtors' operations and books and records. KPMG US has been engaged to provide tax consulting services to the Debtors since 1989. Under an engagement letter dated March 20, 2008, the Debtors expect KPMG US to: (a) prepare federal, state and local corporate tax returns and supporting schedules for 2007; (b) calculate tax depreciation for the 2007 tax year; (c) provide tax consulting advice related to matters not otherwise covered by separate engagement letters; (d) perform tax compliance and consulting services as agreed; and (e) provide other services. A 25-page list of services that KMPG US will provide is available for free at http://researcharchives.com/t/s?2a67 KPMG US's hourly rates for the tax compliance services are: Professional (U.S. and Member Firm) Hourly Rate ---------------------- ----------- Partner US$400 Associate Partner/Senior Pricipal US$363 Tax Managing Director US$325 Senior Manager US$305 Manager US$213 Senior Tax Associate US$168 Tax Associate US$138 These rates represent a discount of 25% to 50% from KPMG US's customary hourly rates. KPMG US's hourly rates for the tax consulting services are: Professional (U.S. and Member Firm) Hourly Rate ---------------------- ----------- Partner US$505 Associate Partner/Senior Pricipal US$475 Tax Managing Director US$455 Senior Manager US$420 Manager US$332 Senior Tax Associate US$245 Tax Associate US$192 Michael Lawler, a partner at KPMG (US), assures Judge Peck that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code. A full-text copy of KPMG US's Engagement Letter is available for free at: http://bankrupt.com/misc/Quebecor_KPMGUSEngagementLetter.pdf About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets ofUS$5,554,900,000, total liabilities ofUS$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: Wants to Hire KPMG (Canada) as Tax Consultant ------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority Pursuant to Sections 327(a) and 328 of the Bankruptcy Code, the Debtors seek the Court's authority to employ KPMG LLP (Canada) as their tax consultants, nunc pro tunc to April 7, 2008. The Debtors say that KPMG Canada has an extensive familiarity with their businesses, and has experience and knowledge in the fields of taxation, accounting, auditing and tax advisory services for large, sophisticated companies. KPMG Canada has been engaged to provide tax consulting services to the Debtors and their non-debtor affiliates for more than 25 years. In an engagement letter dated April 8, 2008, as tax consultants to the Debtors, KPMG Canada is expected to: (a) provide consulting services needed by the Debtors in connection to a United States Internal Revenue Service examination for the 2005, 2006 and 2007 tax years; (b) work with the Debtors to resolve the IRS Examination in an efficient and timely manner and develop a strategy for best handling the IRS Examination; (c) assist the Debtors in their dealings with the IRS examination team, meet with members of the IRS examination team as necessary, and assist the Debtors in preparing submissions in response to inquiries from the IRS; and (d) represent the Debtors in connection with any tax appeals or participation in an alternative dispute resolution program. KPMG Canada's hourly rates are: Professional Hourly Rate ------------ ----------- Partner/Director US$520 Senior Principal US$470 Senior Manager US$395 Manager US$213 Tax Associate US$162 These hourly rates represent a reduction of between 35% to 50% from KPMG Canada's customary hourly rates. Before the Petition Date, the Debtors retained KPMG Canada to undertake work for them on certain tax filings and activities. Nathalie Bernier, a partner at KPMG LLP (Canada), relates that at the time the Debtors filed for bankruptcy protection, KPMG Canada was owed approximately CN$2,400,000 for services rendered to Quebecor World Inc. and the Debtors' non-debtor affiliates. As a result, KPMG Canada is a creditor of QWI in the Canadian insolvency proceedings. KPMG Canada also performs services unrelated to the Debtors and their Chapter 11 cases for non-debtor QWI affiliates in Europe and Latin America, and is paid in the ordinary course of business for those services. In addition, KPMG Canada incurred approximately CN$600,000 in fees in connection with prepetition services provided to the Debtors and QWI, of which approximately CN$100,000 is owed on account of engagements where one or more of the Debtors were the sole engaging party. Ms. Bernier tells the Court that KPMG Canada has agreed, in connection with the Debtors' retention of KPMG Canada and with the Debtors' retention of KPMG LLP (US), that if KPMG Canada's retention is approved by the Court, KPMG Canada will waive all of its prepetition claims against the Debtors, whether arising under engagements where one or more of the Debtors was the sole engaging party, or under engagements where one or more of the Debtors signed jointly with certain non-debtor affiliates, including particularly with QWI. Where QWI or another non- Debtor affiliate was a party to a signed engagement letter with KPMG Canada (even if that engagement letter was signed jointly by a Debtor), KPMG Canada will seek to collect outstanding amounts solely from those non-Debtor affiliates, including QWI in the Canadian Proceeding, Ms. Bernier says. In connection with engagements related to U.S. tax services, KPMG Canada has in the past sub-contracted with KPMG US to perform a majority of the work for which KPMG Canada was engaged. KPMG Canada directly paid KPMG US for these services and payment was not dependent upon whether the engaging entity(ies) paid KPMG Canada. In connection with services performed by KMPG US for KPMG Canada before the Debtors' bankruptcy cases, KPMG Canada paid KPMG US approximately US$30,000 in the 90-day period prior to the Petition Date, and KPMG Canada currently owes KPMG US approximately US$380,000 for work performed in connection with these engagements. According to Ms. Bernier, KPMG US has agreed, subject to approval of its and KPMG Canada's retention, not to collect US$100,000 of the amount outstanding from KPMG Canada. KPMG Canada received US$104,630 from the Debtors during the 90- day period before the Petition Date in the ordinary course of business. KPMG Canada paid KPMG US approximately US$30,000 of this amount. Ms. Bernier assures Judge Peck that her firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code. A full-text copy of the KMPG Canada's Engagement Letter is available for free at: http://researcharchives.com/t/s?2a68 About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets ofUS$5,554,900,000, total liabilities ofUS$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: Wants Ernst & Young as Tax Services Provider ------------------------------------------------------------ Quebecor World Inc. and its debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to employ Ernst & Young LLP as their tax services provider, nunc pro tunc to April 7, 2008. According to the Debtors, E&Y LLP has an extensive experience providing tax consultation to businesses pursuing reorganization under chapter 11 of the Bankruptcy Code. Under the terms set forth in an engagement letter dated March 31, 2008, the Debtors are expecting E&Y LLP to provide: 1. Bankruptcy Tax Services, which entails: (a) understanding reorganization and restructuring alternatives the Debtors are evaluating; (b) assisting and advising the Debtors in developing an understanding of the tax implications of their bankruptcy restructuring alternatives and post-bankruptcy operations; (c) assistance with tax issues arising in the ordinary course of business while in bankruptcy; (d) tax advisory services regarding tax aspects of the bankruptcy process; (e) analysis of legal and other professional fees incurred during the bankruptcy period; (f) documentation, as appropriate or necessary, of tax analysis, opinions, recommendations, conclusions and correspondence; (g) advisory services regarding tax analysis and research related to acquisitions and divestitures; (h) advisory services regarding tax analysis and research related to tax-efficient domestic restructurings; and (i) tax forecast model. 2. Entity Structure Services, which includes working with the Debtors' personnel in developing an efficient U.S. Entity structure, taking into account the Debtors' desire for entity rationalization, tax efficiency, and impact on the Debtors' indirect tax obligations. 3. Loan Staff Services, which includes assigning staff to support the activities of the Debtors' employees in completing ministerial and administrative tasks relating to the preparation of the Debtors' quarterly and annual income taxes, the Debtors' U.S. restructuring, and Internal Revenue Service and state and local income tax authority audits. E&Y LLP's hourly rates are: (a) Bankruptcy Tax Services and Entity Structure Services Professional Hourly Rate ------------ ----------- Executive Director/Principal/Partner US$750 Senior Manager US$650 Manager US$550 Senior US$420 Staff US$200 -US$300 (c) Loan Staff Services Professional Hourly Rate ------------ ----------- Manager US$250 Senior US$150 Staff US$120 Pursuant to the Engagement Letter, E&Y LLP may subcontract certain work in connection with the tax services, in particular to Ernst & Young LLP, an Ontario Limited Liability Partnership. E&Y Canada's hourly rates are: (a) Bankruptcy Tax Services and Entity Structure Services Professional Hourly Rate ------------ ----------- Partner CA$600 Executive Director CA$550 Senior Manager CA$475 Manager CA$375 Senior Tax Staff CA$300 Tax Staff CA$200-$275 (b) Loan Staff Services Professional Hourly Rate ------------ ----------- Manager US$250 Senior US$150 Staff US$120 E&Y LLP also anticipates subcontracting Ernst & Young (India) Private Limited to assist it in calculations relating to the determination of and availability of certain tax attributes. E&Y LLP will seek reimbursement of fees and expenses incurred by E&Y (Canada) and EYPL under a subcontracting engagement. Upon subcontracting E&Y Canada and EYPL, E&Y LLP will remain solely responsible for the services and will be the only party to receive payment from the Debtors. Lawrence Garret, principal of Ernst & Young LLP, assures Judge Peck that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code. A full-text copy of the E&Y LLP Engagement Letter is available for free at: http://bankrupt.com/misc/Quebecor_E&YLLPEngagementLetter.pdf About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 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. TATA MOTORS: Nano May See Rival From Ajanta Group, Report Says -------------------------------------------------------------- The Times of India says that Tata Motors Ltd's Nano, dubbed as the world's cheapest car at around INR1 lakh (US$2,500), will see a competition from the Ajanta group. According to the Indian daily, Ajanta is planning to produce an electric car that will be introduced to the market at a price lower than INR1 lakh. TOI quoted Ajanta Group Director Jaysuk Patel as saying, "The company is already manufacturing electric scooters and bikes under 'Oreva' brand. Production of electric car is not difficult for us as the technology is almost similar and 70 percent of its parts can be produced in-house, giving us an edge over the vehicle's pricing." The news agency says Ajanta is serious in its attempt to keep the basic price of the proposed car as low as INR85,000. Tata Motors unveiled the Nano on Jan. 10. The company plans to sell the car in India later this year. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero-coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. ================= I N D O N E S I A ================= FREEPORT-MCMORAN: Indonesia OKs Unit's Plan to Slash Ore Output --------------------------------------------------------------- Indonesia has approved the plan of Freeport-McMoran Copper & Gold Inc.'s unit, PT Freeport Indonesia, to reduce maximum ore production at the Grasberg mine to 220,000 tonnes a day, Reuters reports citing Witoro Soelarno, director of technical and environment at the energy and mines ministry. Mr. Soelarno told the news agency that the figure was reduced from a maximum of 300,000 tonnes a day partly because of environmental concerns. "We have approved Freeport's maximum ore production at 200,000-220,000 tonnes per day for this year. It is reviewed from various aspects such as environment and the firm's capability," he said. Reuters relates that Mr. Soelarno also said, "If we talk about maximum production of 300,000 tonnes, in reality, it (Freeport) has never been able to achieve it." Furthermore, the same report says, PT Freeport expects copper output at Grasberg to rise 6% this year to 1.2 billion pounds as it explores new areas in the mine in the remote province of Papua. Gold output is expected to to fall 45% to 1.2 million ounces this year from nearly 2.2 million ounces in 2007 due to lower-grade ore at the mine, Reuters adds. The Grasberg mine accounts for 40% of Freeport's total copper reserves of 93 billion pounds, the report relates. Fitri Wulandari of Reuters writes that the Grasberg mine has long been controversial because of its environmental impact, the share of revenue going to Papuans and the legality of payments to Indonesian security forces who helped guard the site. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. As reported in the Troubled Company Reporter on April 10, 2008, Fitch Ratings upgraded the Issuer Default Rating and debt ratings of Freeport-McMoRan Copper & Gold Inc: FCX: -- Issuer Default Rating upgraded to 'BBB-' from 'BB+'; -- Unsecured notes due 2015 and 2017 upgraded to 'BBB-' from 'BB+'. -- 7% convertible notes due 2011 upgraded to 'BBB-' from 'BB+'. -- Convertible Preferred Stock upgraded to 'BB' from 'BB-'. On Feb. 21, 2008, Moody's Investors Service upgraded Freeport's corporate family rating to Ba1 from Ba2 and undertook these related rating actions: (i) upgraded to Baa1 (LGD1, 4%) from Baa2 the senior secured rating on Freeport's US$500 'million secured revolver; (ii) upgraded to Baa1 (LGD1, 9%) from Baa3 the senior secured ratings on Freeport's US$1 billion secured revolver and Freeport's 6.875% senior secured notes; and (iii) upgraded to Ba2 (LGD5, 74%) from Ba3 Freeport's $6.0 billion of senior unsecured notes. Moody's also upgraded to Baa2 (LGD2, 16%) from Ba1 the ratings on Phelps Dodge's notes. Moody's said the ratings outlook for Freeport and Phelps is stable. GARUDA INDONESIA: Records 700,000 Passengers in 2007 ---------------------------------------------------- PT Garuda Indonesia's passengers for Asia in 2007 reached almost 700,000 while its cargo reached 8,000 tons in the same period, Antara reports citing Garuda Chief Communications Officer Pujobroto. According to the report, Mr. Pujobroto said the cargoes, which include electronic equipment, chemical substances, textiles, paper and others, were transported to Singapore, Malaysia, Hong Kong, Thailand and Vietnam. The airline, the report notes, is now servicing flights to Singapore 74 times a week, and to Kuala Lumpur, Hong Kong, Bangkok and Ho Chi Minh City once a day each. Moreover, Antara relates, in line with its planned expansion, Garuda has also ordered 60 new airplanes, consisting of 10 wide- bodied B-777-300ERs and 50 B-737(Next Generation). These planes are expected to arrive in Indonesia early in 2009, the report adds. 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. MEDCO ENERGI: Inks US$565 Mil. Gas Deal With Perusahaan Listrik --------------------------------------------------------------- PT Medco Energi International has signed a natural gas supply agreement with PT Perusahaan Listrik Negara (PLN) for a power plant in Aceh province, Reuters reports citing Indonesian energy watchdog (BPMIGAS). Under the business agreement, the report notes, Medco will supply 85 trillion British Thermal Units (BTU) of gas from Block A area in Aceh province to PLN for 17 years starting 2010. The estimated value of the gas is US$565 million, the same report relates. Muklis Ali of Reuters writes that Medco is the operator of Block A with a 41.67% stake. The other partners are Britain's Premier Oil Plc, which holds a 41.66% stake, and Japan Petroleum Exploration Co., which holds a 16.67% stake, the report adds. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. About Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). PERUSAHAAN GAS: Inks Interim Gas Supply Deal With ConocoPhillips ---------------------------------------------------------------- Indonesian energy watchdog (BPMIGAS) said that ConocoPhillips signed a preliminary gas supply deal with Perusahaan Gas Negara Tbk (PGN), Reuters reports. According to the report, under the business deal, ConocoPhillips will supply PGN with 79 trillion BTU of gas from its field in East Java for five years. A BPMIGAS official said there is a need of further talks on details of the terms and conditions, the report relates. Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk-- http://www.pgn.co.id/-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or- pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 26, 2007, that Standard & Poor's Ratings Services raised its corporate credit ratings on PT Perusahaan Gas Negara (Persero) Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable. At the same time, Standard & Poor's has raised the rating on the senior unsecured debt issued by PGN Euro Finance 2003 Ltd. (guaranteed by PGN) to 'BB-' from 'B+'. On Jan. 18, 2007, Moody's Investors Service affirmed the Ba2 corporate family rating of PT Perusahaan Gas Negara (Persero) Tbk. At the same time, Moody's affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The ratings outlook is stable. This affirmation followed the recent announcement of a delay in the South Sumatera West Java gas commercialization. On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. PT INCO: To Release First Quarter 2008 Results on April 25 ---------------------------------------------------------- PT International Nickel Indonesia Tbk will release its first quarter 2008 results on Friday, April 25, 2008, before the opening of the Indonesia Stock Exchange trading session. PT Inco will host a conference call and webcast on April 25, 2008, at 10:30 a.m. (LOCAL Jakarta time). About PT Inco Headquartered in Jakarta, Indonesia, PT International Nickel Indonesia Tbk -- http://pt-inco.co.id-- is a nickel producer with a production facility and mine are in Sorowako, Sulawesi, where it has a contract agreement until 2025. It produces nickel matte, an intermediate product, from lateritic ores at its integrated mining and processing facilities near Sorowako on the island of Sulawesi. Inco Limited of Canada holds a 60.8% stake of the company and Sumitomo Metal Mining Co Ltd. holds a 20.1% stake. * * * As of October 29, 2007, the company carried Standard and Poor's Ratings Service's "BB-" long-term foreign and local issuer credit ratings; and Fitch Rating's "BB" LT Issuer Default rating. ========= J A P A N ========= FLOWSERVE CORP: Annual Shareholders' Meeting Set for May 30 ----------------------------------------------------------- Flowserve Corp. will hold its 2008 Annual Meeting of Shareholders on May 30, 2008 at 11:30 a.m., local time, the company disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. The meeting will be held at the Four Seasons Resort and Club, 4150 North MacArthur Boulevard in Irving, Texas. According to Tara D. Mackey, the company's Vice President, Assistant Secretary and Compliance Counsel, shareholders of record of the company's common stock at the close of business on April 4, 2008 are entitled to notice of and to vote at the annual meeting. At the annual meeting, the company will ask shareholders to: -- elect four directors, each to serve a term expiring at the 2011 annual meeting of shareholders; -- elect two directors, each to serve a term expiring at the 2010 annual meeting of shareholders; -- to ratify the appointment of PricewaterhouseCoopers LLP to serve as our independent registered public accounting firm for 2008; and -- attend to other business properly presented at the meeting. Proxy materials may be obtained online through: http://www.proxydocs.com/fls Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) -- http://www.flowserve.com/-- provides fluid motion and control products and services. Operating in 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. The company has subsidiaries in Argentina, Netherlands, China, Mexico, France, Brazil and Japan, among others. FLOWSERVE CORP: Fitch Affirms Issuer Default Rating at BB --------------------------------------------------------- Fitch Ratings has affirmed Flowserve Corp.'s Issuer Default Rating and senior secured bank facilities at 'BB' and revised the Rating Outlook to Positive from Stable. Flowserve's ratings are: -- IDR at 'BB'; -- Senior secured bank facilities at 'BB'; The ratings affect approximately US$558 million of debt outstanding at Dec. 31, 2007. The Positive Rating Outlook reflects Flowserve's improving operating performance, substantial progress toward resolving concerns about contingent litigation liabilities and financial reporting, and Fitch's expectation that the company intends to maintain disciplined financial policies that should help it to sustain improved credit measures. Flowserve's solid results in 2007 contributed to a significant decline in debt/EBITDA to 1.2 times (x) as of Dec. 31, 2007 despite a stable debt level. The company has benefited from strong demand across most of Flowserve's businesses, particularly in its important energy and water markets. Flowserve has also benefited