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 Monday, April 21, 2008, Vol. 11, No. 78 Headlines A U S T R A L I A ALLCO FINANCE: To Significantly Reduce Debt by June 2009 ALLCO FINANCE: Senior Management's Fund Under Liquidation ALPINE STAIRCASE: Liquidator to Give Wind-Up Report on April 28 AUSTRALIAN URBAN: Placed Under Voluntary Liquidation BRINKER AUSTRALIA: Supreme Court Directs Wind-Up Order CHARMANT AUSTRALIA: Members' Final Meeting Set for April 28 CRUISER SALES: Commences Liquidation Proceedings EAGLET GROUP: To Declare Ordinary Dividend on April 30 HEAMAR PTY: Members Receive Wind-Up Report HERITAGE BUILDING: Moody's Reviewing C+ BFSR LIFT CAPITAL: Dixons Seeking Standstill Agreement KELE HIRE: Supreme Court Enters Wind-Up Order LLANDILLO KENSIT: To Declare Dividend on April 24 OPES PRIME: IMF Australia to Fund Opes Clients' Suit Against ANZ NEWCASTLE PERMANENT: Moody's Revises Outlook to Negative PACIFIC WESTERN: Members to Receive Wind-Up Report on April 28 ZINIFEX LTD: Seeking to Develop New Mines With Customers ZINIFEX LTD: Extends Allegiance Mining Offer to May 2 WATTS-U PTY: Members and Creditors to Meet on April 28 C H I N A & H O N G K O N G & T A I W A N ABN AMRO: Liquidators Quit Post ACTIVELAND LIMITED: Creditors' Proofs of Debt Due May 13 CG COMPANY LIMITED: Creditors' Proofs of Debt Due May 14 CHINA EASTERN: Aviation Authority to Impose Penalty for Strike FOREST BOARD & PAPER: Appoints New Liquidators INSTITUTE OF PROFESSIONAL: Creditors' Proofs of Debt Due May 13 JOHN & MICHAEL: Commences Liquidation Proceedings KONICA MINOLTA: Commences Liquidation Proceedings M & K DECORATION: Creditors' Proofs of Debt Due May 15 OASIS AIRLINES: Several Investors Express Interest in Airline PRECISION PUBLISHING: Creditors' Proofs of Debt Due May 12 QUALITY DATA: Liquidator Quits Post TARZAN CONTRACTORS: Liquidator Quits Post UNITED ASIA: Members' Final Meeting Set for May 13 I N D I A BHARTI AIRTEL: Schedules Earnings Call for April 25 BHARTI AIRTEL: Names Jai Menon as Customer Service & IT Director DECCAN AVIATION: Gopinath, et al., Opt Out of Promoter Group GENERAL MOTORS: To Realign Marketing & Field Operations ICICI BANK: To Decide on Interest Rates After RBI's Statement ICICI BANK: Don't Treat Derivatives Loss as NPA, Court Says IFCI LTD: Board to Consider Audited Results on April 29 QUEBECOR WORLD: Wants to Assume Three Software Licensing Deals QUEBECOR WORLD: E&Y Presents Monitor's Report to Quebec Court QUEBECOR WORLD: Wants to Assume Yale Materials Contracts TATA STEEL: To Raise INR750 Crore From Seven-Year Bond Issue I N D O N E S I A ANEKA TAMBANG: Seeks Shareholder Okay to Adjust Bid for Herald ADAM AIR: Major Shareholders Set Terms for Saving Airline PERUSAHAAN LISTRIK: Gets IDR5.7 Trillion Loan for Power Plants J A P A N AOZORA BANK: Chairman Expected to Resign in May ELPIDA MEMORY: Posts JPY24 Bil. Net Loss for Year Ended March 31 FUJI HEAVY: To Discuss Year End Financial Results on April 28 JAPAN AIRLINES: To Strengthen Ties With Vietnam Airlines K O R E A HYUNDAI MOTOR: Signs 5-Year Technical Deal With Caparo India MAGNACHIP SEMI: Opens Image Sensor Research Center in Pasadena N E W Z E A L A N D ADVANCED TECHNOLOGY: Placed Under Voluntary Liquidation AIR NEW ZEALAND: Report Confirms Compliance With Shanghai Crew ALBANY LOANS: Court to Hear Wind-Up Petition on June 4 AMIRCO LTD: Appoints Grant and Khov as Liquidators BLUE CHIP: Former Director Issued Early Warning ELEGANT DECORS: Court to Hear Wind-Up Petition Today GLENCAIRN FARMS: Subject to Wealleans' Wind-Up Petition H4 CONSTRUCTION: Fixes April 25 as Last Day to File Claims HANOVER FINANCE: Fitch Affirms Hanover Finance's IDR at BB+ HONG KONG CUISINE: Appoints Mason and Meltzer as Liquidators MALA COFFEE: Subject to CIR's Wind-Up Petition MERLOT HOMES: Faces EFS One's Wind-Up Petition TAMAHINE HOLDINGS: To Close Down & Lay Off 50 Workers in July WAYNE BLAKE: Subject to CIR's Wind-Up Petition WESTERN BAY: Cynotech Buys Uncollected Loan Receivables P H I L I P P I N E S AES CORP: Closes US$930 Mil. Transfer of Philippine Assets FEDDERS CORP: Wants Plan-Filing Period Stretched to May 31 PRC LLC: Court Extends Action Removal Period Until Next Hearing PRC: Wants Epiq's Services to Include Voting & Tabulation Work * S&P Affirms Philippine Sovereign Ratings With Stable Outlook S I N G A P O R E FLEXTRONICS: Completes Phase 1 of Arima Computer Acquisition - - - - - ================= A U S T R A L I A ================= ALLCO FINANCE: To Significantly Reduce Debt by June 2009 -------------------------------------------------------- David Clarke, chief executive officer of Allco Finance Group, wrote to shareholders last week to provide them with a status report on the progress of the company's restructuring plan as announced on February 25, 2008, and a summary of the company’s half year results. "As you will no doubt be aware, Allco’s business model and strategy has been severely impacted by a rapid and largely unanticipated crisis in global credit markets which, until quite recently, had been a significant source of accessible funding and helped to support our growth strategy. Accordingly, I would like to take this opportunity to clearly outline the immediate steps we are taking to rectify our funding position, and the actions we are taking to create a more stable business," Mr. Clarke said. Lending Facilities and Business Restructuring Program "It is important to point out that Allco is not in breach of any of the financial covenants of its borrowing facilities. We are in constructive discussions with our lenders, however, to restructure the terms and conditions of our lending facilities as a Review Event occurred under these facilities earlier this year. "At the same time, we have commenced the implementation of an aggressive business restructuring program to deliver a viable business for the future. This restructuring program focuses on the core strengths of our business: Aviation, Shipping, Rail and Real Estate. The program also involves an exit from Financial Assets and Infrastructure, including Allco disposing of certain non-core assets to reduce debt. We are currently in active discussions with a number of parties and expect to be in a position to make further announcements in due course. Asset sales, together with a repositioned business, will enable Allco to significantly reduce debt by June 2009," Mr. Clarke said. Half Year Results to December 31, 2007 Mr. Clarke notes that while financial results for the six months ended December 31, 2007, were slightly lower than the previous corresponding period, the results demonstrated a solid performance from the company's core asset classes. 12/31/07 12/31/06 -------- -------- Reported Net Profit After Tax $83.9 million $93.2 million Basic Earnings per Share 24.2 cents 30.9 cents According to Mr. Clarke: * The profit for the period includes significant one-off impairment charges, as well as a gain relating to the required adoption of certain accounting standards. * When reported profit is adjusted for net negative one-off items, our normalised Net Profit After Tax for the period was up 11% from the previous year. * Our core asset classes of Aviation, Shipping, Rail and Real Estate all performed well, with net revenue from these divisions growing on an overall basis to $201.4 million, an increase of 39.5% on the previous year. * Aviation: the number of owned and managed aircraft grew to 54, up from 47 at 30 June 2007, with an additional 40 aircraft on order. There is no speculative buying -- all of our aircraft are 100% leased including those on order. * Shipping: we grew the owned and managed number of vessels to 38, up from 25 at 30 June 2007, with an additional 23 vessels on order. All of our delivered vessels are chartered, with 60% of future deliveries already chartered. * Rail: our diversified portfolio of assets grew to 3,104 railcars (up from 2,742 at 30 June 2007) with an additional 413 on order. Our fleet of locomotives owned and managed fell to 39 (79 at 30 June 2007), with an additional 29 on order. Australian rail assets are 100% leased or under refurbishment, and US rail assets are 98% leased. * Real Estate: assets under management grew from $2.9 billion at 31 December 2006 to $9.4 billion at the half-year, following the acquisition of Rubicon in early December 2007. We have commenced the implementation of measures designed to bridge the gap between net tangible assets of our listed Real Estate funds and their trading prices. "Having regard to current circumstances, the Board determined on the release of the half year results that there would be no interim dividend paid to shareholders. At this point in time, it is not anticipated that a full year dividend will be paid," Mr. Clarke said. Board Changes David Coe, Gordon Fell and David Turnbull have stepped down, with the Board now comprising a majority of independent non- executive directors. As indicated at the Annual General Meeting late last year, the company is actively seeking to appoint additional non-executive directors to the Board. Bob Mansfield, currently Deputy Chairman, will undertake the role of Chairman in the short term until a new Independent chair is appointed. Commitment "In closing, I would like to emphasise that the Directors and Allco’s senior management team are absolutely committed and working very hard on behalf of shareholders to rebuild the business and ensure that the current issues impacting our operations do not recur," Mr. Clarke said. 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. ALLCO FINANCE: Senior Management's Fund Under Liquidation --------------------------------------------------------- Chris Zappone of the Sydney Morning Herald reports that Allco Principals Trust, a fund owned by senior management of Allco Finance Group, is being liquidated. "Realisation of APT's assets has commenced as part of the winding up of APT; however, it is not clear how long the realisation process will take," AFG said in a release to the Australian Stock Exchange, the paper relates. "All direct subsidiaries of APT are presently in voluntary administration." The company said APT's assets will not be fully liquated until the administrators finish with APT's subsidiaries and any remaining net values after APT pays it creditors will be distributed to investors of Allco Hybrid Investment Trust. According to the report, APT received $43.3 million in loans for "working capital purposes". As of June 30, 2007, APT had total assets of $1.2 billion and debt of $1.0 billion. Mr. Zappone relates that Allco Finance Group is working through extensive negotiations with creditors including Commonwealth Bank and Westpac over the $900 million in debt and $2 billion in liabilities it holds. 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. ALPINE STAIRCASE: Liquidator to Give Wind-Up Report on April 28 --------------------------------------------------------------- Alpine Staircase Manufacturers Pty. Limited will hold a final meeting for its members and creditors at 10:00 a.m. on April 28, 2008. During the meeting, the company's liquidator, Adam Shepard, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Adam Shepard 32 Martin Place, Level 1 Sydney, New South Wales Australia About Alpine Staircase Alpine Staircase Manufacturers Pty. Limited provides business services. The company is located at West Hoxton, in New South Wales, Australia. AUSTRALIAN URBAN: Placed Under Voluntary Liquidation ---------------------------------------------------- Australian Urban Property Pty. Ltd.'s members agreed on March 6, 2008, to voluntarily liquidate the company's business. The company has appointed Anthony Matthews to facilitate the sale of its assets. The liquidator can be reached at: Anthony Matthews Anthony Matthews & Associates 46 Fullarton Road, Ground Floor Norwood Australia About Australian Urban Australian Urban Property Pty. Ltd. operates non-classifiable establishments. The company is located at Flinders Park, in South Australia, Australia. BRINKER AUSTRALIA: Supreme Court Directs Wind-Up Order ------------------------------------------------------ On March 10, 2008, the Supreme Court of New South Wales entered an order to have Brinker Australia Pty. Limited's operations wound up. David Lewis Clout was appointed as liquidator. The liquidator can be reached at: David Lewis Clout c/o Woodgate & Co. 25 Bligh Street, Level 14 Sydney, New South Wales 2000 Australia About Brinker Australia Brinker Australia Pty. Limited operates eating places. The company is located at Wentworthville, in New South Wales, Australia. CHARMANT AUSTRALIA: Members' Final Meeting Set for April 28 ----------------------------------------------------------- Christopher R. Campbell, Charmant Australia Pty. Limited's estate liquidator, will meet with the company's members on April 28, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The company also declared a dividend on April 16, 2008. Only creditors who were able to file their proofs of debt by April 15, 2008, were included in the company's dividend distribution. The liquidator can be reached at: Christopher R. Campbell Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Charmant Australia Charmant Australia Pty. Limited is a distributor of durable goods. The company is located at Castle Hill, in New South Wales, Australia. CRUISER SALES: Commences Liquidation Proceedings ------------------------------------------------ Cruiser Sales (Wholesale) (Qld.) Pty. Ltd.'s members agreed on March 17, 2008, to voluntarily liquidate the company's business. The company has appointed Robert James Chalmers to facilitate the sale of its assets. The liquidator can be reached at: Robert James Chalmers R J Chalmers & Co. Pty Limited 273 Sussex Street, Level 2 Sydney, New South Wales 2000 Australia About Cruiser Sales Cruiser Sales (Wholesale) (Qld.) Pty. Ltd. is a distributor of sporting and recreation goods. The company is located at Runaway Bay, in Queensland, Australia. EAGLET GROUP: To Declare Ordinary Dividend on April 30 ------------------------------------------------------ Eaglet Group Pty Ltd., which is in liquidation, will declare first and final ordinary dividend on April 30, 2008. Only creditors who were able to file their proofs of debt by April 4, 2008, will be included in the company's dividend distribution. The company's liquidator is: Brett Harrison 105 Macquarie Street Hobart, Tasmania 7000 Australia Telephone:(03) 6223 2555 Facsimile:(03) 6223 2556 e-mail: info@pjc.com.au About The Eaglet Group The Eaglet Group Pty. Ltd. operates miscellaneous retail stores. The company is located at Hobart, in Tasmania, Australia. HEAMAR PTY: Members Receive Wind-Up Report ------------------------------------------ R. G. Shoobridge, Heamar Pty. Ltd.'s estate liquidator, met with the company's members on April 16, 2008, and provided them with property disposal and winding-up reports. The liquidator can be reached at: R. G. Shoobridge Deloitte Touche Tohmatsu ANZ Centre, Level 9 22 Elizabeth Street Hobart, Tasmania 7000 Australia Telephone:(03) 6237 7000 Facsimile:(03) 6237 7001 About Heamar Pty. Heamar Pty. Ltd. operates miscellaneous retail stores. The company is located at Howrah, in Tasmania, Australia. HERITAGE BUILDING: Moody's Reviewing C+ BFSR -------------------------------------------- Moody's Investors Service says the tight liquidity environment -- a result of the sub-prime crisis -- continues to impact the Australian building society sector. Accordingly, Moody's has placed on review for possible downgrade the A2/P-1 deposit and debt ratings and the C+ bank financial strength ratings of the Heritage Building Society. At the same time, the rating outlook for the A2 / P-1 / C+ ratings of Newcastle Permanent Building Society was changed to Negative from Stable. "For both societies, the negative actions are the result of the tight liquidity environment, which has reduced the availability of long-term funding and dramatically increased the cost of wholesale debt," says Marina Ip, a Moody's Assistant Vice President/Analyst. "However, both societies are implementing initiatives to enhance their liquidity profiles," says Ip. They have applied for an Exchange Settlement Account, which would make their securities eligible for repo with the central bank. New Reserve Bank of Australia rules offer the potential for the societies to generate repo-eligible assets from their high quality mortgage loan books. "We also expect they will slow loan originations to reduce their sensitivity to funding market pressures." With regards to the specific rating actions, "Heritage's business model is challenged by the closure of the RMBS market, which provided roughly half of the society's funding pre- crisis," notes Ip. The society is successfully meeting its immediate funding needs by tapping other sources. However, Heritage faces the prospect of considerably slower business growth, given that the return of RMBS market appetite -- at economic pricing levels -- does not seem likely in the near term. Longer-term, if the RMBS market remains less accessible than before, the society's balance sheet will shrink as existing securitised loans are repaid -- constraining its franchise, unless alternative funding can be raised. Furthermore, the average tenor of its funding tenor may decline, as new borrowings are unlikely to match the tenor of RMBS. On the positive side, Heritage's back book of securitised loans has locked in a large amount of long-term funding at lower cost than can be achieved today. The Society also has a larger distribution network than its rivals, which should assist in deposit raising. "Further positives include the Society's very low risk profile, sound capital position and solid franchise in its hometown of Toowoomba and the surrounding Darling Downs region," says Ip. Heritage's mutual status does restrict its capital raising ability -- but at the same time eliminates the pressure for returns felt by listed lenders, allowing the Society to slow growth and consolidate its financial position during the crisis period. The rating review will focus on (i) outlook for the RMBS market, (ii) diversification of funding, (iii) successful establishment of an Exchange Settlement Account, and (iv) creation of a repo- eligible securitisation. "Meanwhile, Newcastle Permanent's rating is pressured by the level of its short-term debt, which increased sharply during the two years to June 2007, primarily via commercial paper issuance," says Ip. Short-term wholesale funding rose to 80% of total wholesale funding, with wholesale funding in turn comprising 29% of total funding. Newcastle Permanent has since sought to reduce its reliance on short-term wholesale funding by tapping the US private placement market, where it sourced a modest amount in long-term debt during the last calendar quarter of 2007. This development, coupled with a push to increase retail deposits, has improved the society's funding profile. Loan growth at Newcastle Permanent slowed dramatically to 2.3% for the half year to 1H2008 compared to 11.7% for the full year to FY2007. "We view this move positively but note that it will impact profit growth, in particular as Newcastle Permanent's shorter funding profile has increased its sensitivity to current higher funding costs" says Ip. Newcastle Permanent also has a very low risk profile, strong franchise in its home town and the Hunter Valley region, and considerable capital buffer. Newcastle Permanent Building Society is headquartered in Newcastle, New South Wales. It reported assets of AU$6.0 billion or approximately US$5.3 billion at December 31, 2007. Heritage Building Society is headquartered in Toowoomba, Queensland. It reported assets of AU$6.9 billion (approximately US$6.1 billion) at December 31, 2007. LIFT CAPITAL: Dixons Seeking Standstill Agreement ------------------------------------------------- Dixon Advisory is seeking a standstill agreement with Lift Capital administrators McGrathNicol and lender Merrill Lynch over shares that the firm believes belongs to its clients, Katherine Jimenez of The Australian reports. Dixon Advisory directors Daryl Dixon and Alan Dixon are personally exposed to Lift Capital, the report relates. Dixon Advisory spokesman Alan Deans told Ms. Jimenez that the exposure is very small. "It's not material to their own financial circumstances and it certainly wouldn't have any impact on the business or its operation. They are in there with other clients fighting to get the best deal they can," Mr. Deans said, The Australian reports. Ms. Jimenez relates that the Dixons were in discussions with the administrators and Merrill Lynch about their options. "They are saying it could take considerable time but they remain hopeful of a positive outcome," Ms. Jimenez quotes Mr. Deans as saying. About Lift Capital Lift Capital -- http://www.liftcapital.com.au/-- is an Australian owned, independent (non-bank owned) financial services provider, specialising in lending against structured equity products principally against listed shares and interests in managed funds. The company's products enable its clients to borrow money to invest in a wide range of assets. Lift Capital may take a mortgage over these assets to secure the loan. The Troubled Company Reporter-Asia Pacific reported on April 14, 2008 that Lift Capital was placed under voluntary administration. The administrators will focus on gathering information to convey to creditors and investors. A meeting of creditors will be held tomorrow, April 22, 2008. KELE HIRE: Supreme Court Enters Wind-Up Order --------------------------------------------- On March 3, 2008, the Supreme Court of New South Wales entered an order to have Kele Hire & Sales Pty. Ltd.'s operations wound up. The company's liquidator is: Steven Nicols 350 Kent Street, Level 2 Sydney, New South Wales 2000 Australia Telephone:(02) 9299 2289 Facsimile:(02) 9299 2239 e-mail: mail@bankrupt.com.au About Kele Hire Kele Hire & Sales Pty. Ltd. is involved with heavy construction equipment rental and leasing. The company is located at Bardwell Park, in New South Wales, Australia. LLANDILLO KENSIT: To Declare Dividend on April 24 ------------------------------------------------- Llandillo Kensit Pty. Ltd., which is in liquidation, will declare first and final dividend for its unsecured creditors on April 24, 2008. Creditors are required to file their proofs of debt by April 23, 2008, to be included in the company's dividend distribution. The company's liquidator is: R. L. Cardwell 33 Montague Street Goulburn, New South Wales 2580 Australia About Llandillo Kensit Llandillo Kensit Pty. Ltd. operates department stores. The company is located at Crookwell, in New South Wales, Australia. OPES PRIME: IMF Australia to Fund Opes Clients' Suit Against ANZ ---------------------------------------------------------------- IMF Australia Ltd. will provide litigation funding to former clients of Opes Prime Group Ltd., who are seeking either damages or the return of equivalent shares sold by ANZ Banking Group Ltd., the Australian Associated Press reports. The Australian reports that IMF had 30 clients with exposure ranging from AU$200,000 to AU$20 million. Two Perth law firms, Lavan Legal and Williams and Hughes, have been engaged to run the case and proceedings are expected to begin in the Federal Court within two weeks, according to The Australian. The report relates that IMF Director Hugh McLernon said the claim would focus on the difference between margin loans and securities lending and borrowing arrangements, and the nature of the payments being made. "We think the question as to whether the clients can get their value back does not necessarily terms of the standard contract." The Australian reports that Mr. McLernon identified three issues involved: * The content of the contract between Opes and the investors. * The representations made about what the investors were signing. * Whether the Opes financial services guide complied with the Corporations Act. According to Leonie Wood of The Age, Opes Prime's administrators, John Lindholm and Adrian Brown of Ferrier Hodgson, might also take a legal action against ANZ as they are considering the status of various transactions by Opes Prime as well as ANZ's move to secure its position as lead creditor. Mr. Wood relates that the administrators' lawyer, Tony Troiani of Mallesons Stephen Jaques, told Federal Court Judge Ray Finkelstein that administrators expect unsecured creditors owed AU$514 million to face "extremely large" losses. Creditors are scheduled to convene in early May and the administrators are likely to seek approval to liquidate Opes Prime, The Age reports. Mr. Troiani told the judge more legal action lay ahead because "there are likely to be issues between the liquidator and ANZ," The Age relates. According to Mr. Wood, Mr. Troiani said if there is a claim for the ANZ to give money back, then there was a possibility of ANZ being "impeached" in its role as secured creditor. Mr. Troiani, The Age relates, said administrators at this stage still have no funds and do not have access to Opes Prime's books and records, which were in the hands of Opes Prime's receivers. 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. NEWCASTLE PERMANENT: Moody's Revises Outlook to Negative -------------------------------------------------------- Moody's Investors Service says the tight liquidity environment -- a result of the sub-prime crisis -- continues to impact the Australian building society sector. Accordingly, Moody's has placed on review for possible downgrade the A2/P-1 deposit and debt ratings and the C+ bank financial strength ratings of the Heritage Building Society. At the same time, the rating outlook for the A2 / P-1 / C+ ratings of Newcastle Permanent Building Society was changed to Negative from Stable. "For both societies, the negative actions are the result of the tight liquidity environment, which has reduced the availability of long-term funding and dramatically increased the cost of wholesale debt," says Marina Ip, a Moody's Assistant Vice President/Analyst. "However, both societies are implementing initiatives to enhance their liquidity profiles," says Ip. They have applied for an Exchange Settlement Account, which would make their securities eligible for repo with the central bank. New Reserve Bank of Australia rules offer the potential for the societies to generate repo-eligible assets from their high quality mortgage loan books. "We also expect they will slow loan originations to reduce their sensitivity to funding market pressures." With regards to the specific rating actions, "Heritage's business model is challenged by the closure of the RMBS market, which provided roughly half of the society's funding pre- crisis," notes Ip. The society is successfully meeting its immediate funding needs by tapping other sources. However, Heritage faces the prospect of considerably slower business growth, given that the return of RMBS market appetite -- at economic pricing levels -- does not seem likely in the near term. Longer-term, if the RMBS market remains less accessible than before, the society's balance sheet will shrink as existing securitised loans are repaid -- constraining its franchise, unless alternative funding can be raised. Furthermore, the average tenor of its funding tenor may decline, as new borrowings are unlikely to match the tenor of RMBS. On the positive side, Heritage's back book of securitised loans has locked in a large amount of long-term funding at lower cost than can be achieved today. The Society also has a larger distribution network than its rivals, which should assist in deposit raising. "Further positives include the Society's very low risk profile, sound capital position and solid franchise in its hometown of Toowoomba and the surrounding Darling Downs region," says Ip. Heritage's mutual status does restrict its capital raising ability -- but at the same time eliminates the pressure for returns felt by listed lenders, allowing the Society to slow growth and consolidate its financial position during the crisis period. The rating review will focus on (i) outlook for the RMBS market, (ii) diversification of funding, (iii) successful establishment of an Exchange Settlement Account, and (iv) creation of a repo- eligible securitisation. "Meanwhile, Newcastle Permanent's rating is pressured by the level of its short-term debt, which increased sharply during the two years to June 2007, primarily via commercial paper issuance," says Ip. Short-term wholesale funding rose to 80% of total wholesale funding, with wholesale funding in turn comprising 29% of total funding. Newcastle Permanent has since sought to reduce its reliance on short-term wholesale funding by tapping the US private placement market, where it sourced a modest amount in long-term debt during the last calendar quarter of 2007. This development, coupled with a push to increase retail deposits, has improved the society's funding profile. Loan growth at Newcastle Permanent slowed dramatically to 2.3% for the half year to 1H2008 compared to 11.7% for the full year to FY2007. "We view this move positively but note that it will impact profit growth, in particular as Newcastle Permanent's shorter funding profile has increased its sensitivity to current higher funding costs" says Ip. Newcastle Permanent also has a very low risk profile, strong franchise in its home town and the Hunter Valley region, and considerable capital buffer. Heritage Building Society is headquartered in Toowoomba, Queensland. It reported assets of AU$6.9 billion (approximately US$6.1 billion) at December 31, 2007. Newcastle Permanent Building Society is headquartered in Newcastle, New South Wales. It reported assets of AU$6.0 billion or approximately US$5.3 billion at December 31, 2007. PACIFIC WESTERN: Members to Receive Wind-Up Report on April 28 -------------------------------------------------------------- Murray Smith, Pacific Western Pty. Limited's estate liquidator, will meet with the company's members on April 28, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Murray Smith McGrathNicol 10 Shelley Street, Level 9 Sydney, New South Wales 2000 Australia Telephone: +61 2 9338 2600 Web site: http://www.mcgrathnicol.com About Pacific Western Pacific Western Pty. Limited provides electric services. The company is located at Sydney, in New South Wales, Australia. ZINIFEX LTD: Seeking to Develop New Mines With Customers -------------------------------------------------------- Jessie Riseborough of Bloomberg News reports that Zinifex Ltd. is in talks with customers for partnerships to develop new mines. According to the report, Chief Executive Officer Andrew Michelmore related at an industry luncheon in Melbourne on Friday that they are seeing "customers who have the investment expertise and the links to the market downstream." "It might be where we are looking at an opportunity in another country where maybe this does need some risk management by bringing in other companies," he said, Bloomberg relates. About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). Fitch's Web site as of April 21, 2008, says the rating outlook is positive. ZINIFEX LTD: Extends Allegiance Mining Offer to May 2 ----------------------------------------------------- Zinifex Australia Limited has extended the offer period under its takeover bid for all the ordinary shares in Allegiance Mining NL. The offer is now scheduled to close at 7 p.m. (Melbourne time) on May 2, 2008. The company's formal notice of variation states: Please note that the offer of $1.10 for each Allegiance share is final. Zinifex now holds more than 84% of Allegiance (as of April 17 date of this letter). If Zinifex reaches 90%, it will be entitled, and intends, to compulsorily acquire the remaining Allegiance shares in which case payment for your shares could take significantly longer than if you accept the Offer. If, however, Zinifex's Offer closes before it acquires 90%, there is a strong likelihood that the share price of Allegiance will fall, as the share price will no longer be supported by the Zinifex Offer. Therefore I strongly urge you to accept the offer without delay. Accepting shareholders will be paid within 5 business days of receipt of a valid acceptance. If you have already accepted Zinifex's offer you need not take any action. If you have any queries in relation to how to accept the offer or any other matter relating to the takeover bid, please contact the Zinifex offer information line on: 1300 658 985 (within Australia) +61 2 8986 9352 (outside Australia) Andrew Michelmore Chief Executive Officer ZINIFEX LIMITED Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). Fitch's Web site as of April 21, 2008, says the rating outlook is positive. WATTS-U PTY: Members and Creditors to Meet on April 28 ------------------------------------------------------ Watts-U Pty. Limited will hold a final meeting for its members and creditors at 10:30 a.m. on April 28, 2008. During the meeting, the company's liquidator, Adam Shepard, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Adam Shepard 32 Martin Place, Level 1 Sydney, New South Wales Australia About Watts-U Pty. Watts-U Pty. Limited is a distributor of women's, children's, and infants' clothing and accessories. The company is located at Marrickville, in New South Wales, Australia. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== ABN AMRO: Liquidators Quit Post -------------------------------- On April 1, 2008, Paul David Stuart Moyes and Yeung Betty Yuen stepped down as liquidator for ABN Amro Mellon Asia Limited, which is undergoing liquidation. The Troubled Company Reporter-Asia Pacific reported that on September 24, 2007, the sole member of ABN Amro Mellon Asia Limited passed a resolution to have the company's operations wound up. ACTIVELAND LIMITED: Creditors' Proofs of Debt Due May 13 -------------------------------------------------------- Creditors of Activeland Limited are required to file their proofs of debt by May 13, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 7, 2008. The company's liquidator is: Chan John Roy Hang Wai Commercial Building, 24th Floor 231-233 Queen's Road East Wanchai, Hong Kong CG COMPANY LIMITED: Creditors' Proofs of Debt Due May 14 -------------------------------------------------------- Creditors of C G Company Limited are required to file their proofs of debt by May 14, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 28, 2008. The company's liquidator is: Yip Pui Yee Prosperous Commercial Building, 24th Floor 54-58 Jardine's Bazaar Causeway Bay, Hong Kong CHINA EASTERN: Aviation Authority to Impose Penalty for Strike -------------------------------------------------------------- China Eastern Airlines has been fined CNY1.5 million (US$215,000) for the pilots' strike on March 31, Reuters reports. As previously reported by the Troubled Company Reporter-Asia Pacific, some pilots of China Eastern Airlines' flights refused to land at their destinations and instead returned to their departure point on March 31. The pilots were reportedly seeking higher wages and freedom to work for another airline. About 1,000 passengers were stranded at Kunming Airport in the southern China. A total of 21 flights from southeastern Yunnan province were affected. Some pilots and the general manager of China Eastern's Yunnan unit were suspended. According to Reuters, the General Administration of Civil Aviation of China, China's aviation regulator, assessed the fine and suspended the airline's operating licenses on certain routes in southern China's Yunnan province after a probe found no technical reasons to explain most of the flights' return. The report relates that the operating licenses will be transferred to other carriers. "This incident exposed existing weaknesses in our management and taught us a deep lesson," the airline said in a statement released after the aviation regulator announced it was fining the company, Thomson Dialog NewsEdge reports. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. FOREST BOARD & PAPER: Appoints New Liquidators ---------------------------------------------- Members of Forest Board and Paper Limited appointed Fok Hei Yu and Desmond Chung Seng Chiong as the company's liquidators. The liquidators can be reached at: Fok Hei Yu Desmond Chung Seng Chiong Hong Club Building, 14th Floor 3A Charter Road Central, Hong Kong INSTITUTE OF PROFESSIONAL: Creditors' Proofs of Debt Due May 13 --------------------------------------------------------------- Creditors of Institute of Professional Property Managers Limited are required to file their proofs of debt by May 13, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 3, 2008. The company's liquidator is: Chan Kin Sand, Kenson Two Chinachem Plaza, Unit A, 6th Floor 68 Connaught Road Central, Hong Kong JOHN & MICHAEL: Commences Liquidation Proceedings ------------------------------------------------- John and Michael Enterprise Limited's members agreed on April 2, 2008, to voluntarily liquidate the company's business. The company has appointed Lau Kwok Kwong Arthur to facilitate the sale of its assets. The liquidator can be reached at: Lau Kwok Kwong Arthur Tung Ming Building, Room 1202 42 Des Voeux Road Central, Hong Kong KONICA MINOLTA: Commences Liquidation Proceedings ------------------------------------------------- Konica Minolta Photo Imaging (HK) Limited's members agreed on March 31, 2008, to voluntarily liquidate the company's business. The company has appointed Rainier Hok Chung Lam and John James Toohey to facilitate the sale of its assets. The liquidators can be reached at: Rainier Hok Chung Lam John James Toohey Prince's Building 22nd Floor Central, Hong Kong M & K DECORATION: Creditors' Proofs of Debt Due May 15 ------------------------------------------------------ Creditors of M and K Decoration Company Limited are required to file their proofs of debt by May 15, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 1, 2008. The company's liquidator is: To Sui Chui Yuen Long Trade Centre, Room 702-3 99-100 Castle Peak Road Yuen Long, N.T. OASIS AIRLINES: Several Investors Express Interest in Airline ------------------------------------------------------------- Oasis Hong Kong Airlines investor Allan Wong Chi-yun disclosed to The Standard that several potential investors have contacted him showing their interest to invest in Oasis Airlines, and he connected the interested parties to provisional liquidator KPMG. Mr. Wong told The Standard he will decide after an upcoming creditors' meeting whether he will step in with more funds to save Oasis. However, Mr. Wong hinted that the company's business model may need to be changed, The Standard reports. "In the beginning, I just wanted to help my friends," Mr. Wong told reporters on the sidelines of the Bank of East Asia annual general meeting, according to The Standard. A person familiar with the situation told The Standard that "numerous parties" have expressed interest in acquiring the carrier, including some "well-known local individuals." The source further said, the report adds, that KPMG and the company's existing shareholders are keen to keep the company together, rather than selling it off piecemeal. The Standard relates Mr. Wong holds a 17% stake in the airline. 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%. PRECISION PUBLISHING: Creditors' Proofs of Debt Due May 12 ---------------------------------------------------------- Creditors of Precision Publishing Limited are required to file their proofs of debt by May 12, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 31, 2008. The company's liquidator are: James T. Fulton Cordelia Tang 905 Silvercord, Tower 2 30 Canton Road, Tsimshatsui Kowloon, Hong Kong QUALITY DATA: Liquidator Quits Post ----------------------------------- On April 11, 2008, Huen Ho Yin stepped down as liquidator for Quality Data Network Solution (HK) Limited, which is undergoing liquidation. TARZAN CONTRACTORS: Liquidator Quits Post ----------------------------------------- On April 11, 2008, Huen Ho Yin stepped down as liquidator for Tarzan Contractors Limited, which is undergoing liquidation. UNITED ASIA: Members' Final Meeting Set for May 13 -------------------------------------------------- Members of United Asia Investment (HK) Limited will have their final general meeting on May 13, 2008, at 12th Floor, No. 3 Lockhart 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 is: Billy Li Sza Kuen No. 3 Lockhart Road, 12th Floor Wanchai, Hong Kong ========= I N D I A ========= BHARTI AIRTEL: Schedules Earnings Call for April 25 --------------------------------------------------- As previously reported by the Troubled Company Reporter-Asia Pacific, Bharti Airtel Ltd's board of directors will hold a meeting on April 25, 2008, inter alia, to consider and take on record the company's financial results for the fourth quarter and financial year ended March 31, 2008. In a media release, Bharti Airtel said it will conduct an earnings call for interested parties on the same day. The call will take place at 2:30 p.m. IST (5:00 p.m. in Singapore and Hong Kong, 10:00 a.m. in U.K. and 5:00 a.m. in U.S. Eastern Zone). At the earnings call, member of Bharti Airtel's senior management will present an overview on the performance of the company and will respond to queries of the participants. The numbers and pass codes for participants are: India Toll, Bangalore: +91-80-44444003 Toll, Mumbai: +91-22-44444003 Toll, New Delhi: +91-11-44444003 Pass code: 239946 Singapore Toll: +65 6668 7512 Pass code: 256125 Hong Kong Toll Free: 800 933 188 Pass code: 256125 USA Toll Free: 1888 297 5258 Pass code: 256125 UK Toll Free: 0800 89 8246 Pass code: 256125 A live audio webcast of the event will be available at the company's Web sites -- http://www.bhartiairtel.inand http://www.airtel.in A replay of the conference call will also be available one-hour post the conference call, until April 29, 2008, 6:00 p.m (IST). The recorded webcast would also be available until the time of the company's next quarterly release. The transcript would be available on April 28, 2008, 6:30 p.m. (IST) at http://www.bhartiairtel.in Headquartered in New Delhi, India, -- Bharti Airtel Limited's -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services and Enterprise Services. * * * Fitch Ratings, on Nov. 19, 2007, affirmed Bharti Airtel Limited's Long-term foreign currency Issuer Default Rating at 'BB+'. Fitch said the outlook on the rating is stable. BHARTI AIRTEL: Names Jai Menon as Customer Service & IT Director ---------------------------------------------------------------- Bharti Airtel Ltd has appointed Dr. Jai Menon as Director, Customer Service & IT, with immediate effect. Earlier, Dr. Menon handled the portfolio of IT & Innovation. In his expanded role at Airtel, Dr. Menon will provide a strong emphasis on bringing in the integrated value of innovative methods to provide “leadership through customer service and responsiveness.” He will continue to be a member of the Airtel Management Board. Dr. Menon takes over from former Customer Service Director, Carol Borghesi, who has decided to relocate back to the UK. In her year and a half with Airtel, Carol has overseen tremendous growth, transformational change and enhanced performance in Customer Service. Fault Management, Billing & Collection performance, churn and productivity have improved significantly across all 3 SBUs. Carol led initiatives such as the establishment of One Airtel Partner Management, Enterprise Centralized Fault Management and B2C Service Management for Mobility and Telemedia, very successfully. Speaking on the move, Manoj Kohli, President & CEO, Bharti Airtel, said " In order to realize our 2010 vision, we are taking additional steps to establish Customer Service as a strategic differentiator for the Airtel brand. Carol leaves the Customer Service organization in a strong position to move to the next generation. Jai will focus on injecting “responsiveness” into our service culture through two long term strategic building blocks. First, building comprehensive modules for providing product and segment centric service capabilities for all Airtel offerings and second, focus on building an integrated leadership and organization within the Customer Service team.” In the near term, Dr. Menon is expected to focus on Customer Service transformation projects. He will also build linkages between Marketing/Sales and Service functions so that our customers get seamless, efficient and meaningful 360 experiences from Airtel. Earlier, as Director IT & Innovation, Dr. Menon has developed and implemented technology and business constructs specifically designed for IT needs of a rapid growth telecom sector. He had architected the macro-outsourcing S1 utility computing models for Bharti Airtel's IT & Content Services. About Bharti Airtel Headquartered in New Delhi, India, -- Bharti Airtel Limited's -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services and Enterprise Services. * * * Fitch Ratings, on Nov. 19, 2007, affirmed Bharti Airtel Limited's Long-term foreign currency Issuer Default Rating at 'BB+'. Fitch said the outlook on the rating is stable. DECCAN AVIATION: Gopinath, et al., Opt Out of Promoter Group ------------------------------------------------------------ Captain G. R. Gopinath, Captain K. J. Samuel and Vishnu Singh Rawal asked Deccan Aviation Ltd to de-classify them from the company's promoter group category. In a meeting on Thursday, Deccan Aviation's board of directors considered and approved the request. Hence, Capt. Gopinath, et al., will be excluded from the promoter group and in any future correspondence, including documents or filings with the stock exchanges. 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: To Realign Marketing & Field Operations ------------------------------------------------------- General Motors Corp. disclosed plans to realign its U.S. marketing and field operations into four retail channels: -- Chevrolet; -- Premium (Cadillac, Hummer, Saab); -- Buick-Pontiac-GMC; and -- Saturn. Each channel will be focused on continuing to deliver world- class products for their customer and build value for GM and their dealers. GM reported the appointment of four new leadership positions to direct activities within this organization, effective June 1: * Ed Peper, 46, is appointed North America Vice President, Chevrolet Channel. * Susan Docherty, 45, is appointed North America Vice President, Buick-Pontiac-GMC Channel. * Mark McNabb, 47, is appointed North America Vice President, Premium Channel. * Jim Bunnell, 52, is appointed Executive Director, Channel Support Group. Jill Lajdziak, 51, will continue to lead Saturn as General Manager, and assume sales responsibility for that channel. Bill Powell, 61, will continue his role as GM North America vice-president, industry and dealer affairs. Doug Herberger, 56, also continues his role as GM North America vice-president, Service Parts Operations, and global process leader for after-sales. Docherty, McNabb, Peper and Bunnell, will report to Mark LaNeve, North American vice-president vehicle sales service and marketing, in their new assignments, as will Lajdziak, Powell, and Herberger in their current assignments. "These changes have been designed to improve all of our brands, and achieve strongly profitable channels at both a wholesale and retail level," Troy Clarke, GM North America president, said. "We are further streamlining the organization to reduce complexity, align resources to improve the consumer experience and improve bottom line business results. We expect that the channels will work closely with GM's global product development teams to ensure the products meet consumer needs. This is the next step in our continuing strategy to increase the effectiveness of GM North America's operating model." "The past few years have yielded demonstrated success with award winning products such as the Chevy Silverado and Malibu, Buick Enclave, GMC Acadia, Saturn Aura, and Cadillac Escalade and CTS," Mark LaNeve, GM North America vice president, vehicle sales service and marketing, said. "Customers' opinions of our products and brands have improved. We raised quality to world- class levels and announced our 100,000 mile powertrain warranty, the most comprehensive transferable warranty in the business. "We also began focusing on a retail channel approach in 2002 with Buick-Pontiac-GMC. We are transitioning our portfolio to highly differentiated vehicles for each of our brands that truly meet targeted customer needs. This has resulted in stronger, more focused models in each channel portfolio," Mr. LaNeve added. "A great example of this is the Buick Enclave which, within the BPG Channel, replaced the Rendezvous, Rainier, Terraza and Montana SV6. The Enclave outsells all four combined and Enclave is a true Buick in every sense of the word. Today, the BPG channel covers a wide section of the market with distinct products like the Buick Enclave crossover, Pontiac G8 rear-wheel-drive sedan, and Professional Grade GMC trucks. The announcements will build on that positive momentum by better aligning the organization to our channels. We are offering more valuable products for customers and producing better results for the business." Mark McNabb joins GM beginning April 21st from Nissan Motor Co., where he was corporate vice-president Infiniti and senior vice- president sales and marketing of Nissan North America. Jim Taylor, Cadillac divisional manager, Martin Walsh, Hummer divisional manager, and Steve Shannon, Saab divisional manager will report to him. "Mark McNabb is a world-class executive with extensive experience. His background with Mercedes and Infiniti, in addition to Nissan, make him uniquely suited for this new position as the vice president of the premium brands," Mr. LaNeve said. "He is a great addition to our North American team." Ed Peper, a 23 year GM veteran, has served as Chevrolet General Manager since April 2005. He has had numerous assignments in GM's field operations and central office, including general manager of GM's Northeast Region and vice president of sales for Saab Cars USA. "Under Ed's leadership, Chevrolet led the U.S. industry in total sales two of the past three years, on the strength of great new products like the Chevy Malibu," Mr. LaNeve said. Susan Docherty had been the Western Region's General Manager since March 1, 2006. She was General Manager of Hummer and had worked at GM's Cadillac Division, responsible for launching the Escalade family of vehicles. She spent a good portion of her career in marketing leadership assignments covering Europe and Asia. "Susan has a strong list of accomplishments supporting a variety of GM regions and brands," Mr. LaNeve said. "Her leadership will help the BPG channel continue to gain strength and customers." Jim Bunnell, who had been general manager of BPG, will lead the Channel Support Group collaborating with the channels on business strategies to provide common processes and systems to the channels. He had previously been General Manager of GM's North Central Region. "Jim really led the way by being the first to run a retail channel in the U.S.," Mr. LaNeve said. "He will use that experience to support the further development of all the channels." About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants 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. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. ICICI BANK: To Decide on Interest Rates After RBI's Statement ------------------------------------------------------------- ICICI Bank Limited will only decide whether it will hike interest rates after the Reserve Bank of India comes out with its monetary policy for fiscal year 2009, The Financial Express reports. According to the FE, the banking regulator is set to make a statement of the FY2009 policy on April 29. "Liquidity is flush but inflation is high. So, interest rates should increase but I won’t speculate. I will wait for policy signals and market conditions," the Business Standard quoted ICICI MD and CEO K. V. Kamath as saying. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings on Feb. 5, 2007, gave ICICI Bank's Subordinated Debt a BB rating. The bank currently carries Moody's Investors Service's Ba2 Foreign Long Term Bank Deposits rating, which was places on Feb. 5, 2003. ICICI BANK: Don't Treat Derivatives Loss as NPA, Court Says ----------------------------------------------------------- The Hyderabad High Court ruled on Thursday that ICICI Bank Limited cannot treat as non-performing assets the amount of money NCS Sugars Ltd owes the bank, the Business Standard reports. According to the report, ICICI Bank and NCS Sugars are involved in a dispute over losses that NCS sustained on derivative products. At last week's ruling, the court made it clear that even if ICICI cannot treat the derivatives loss as NPA, the bank is not restrained from proceeding against NCS Sugars on other issues. This week, the Hyderabad Court will continue hearing on their dispute. NCS is one of the firms that took ICICI Bank to court over derivative deals. Rediff News, on April 1, reported that home furnishings company Sabare International commenced a lawsuit against the bank over a foreign exchange derivative contract. Sabare wants the Court to declare the contract void. Many of the bank’s clients are working out alternative plans to deal with the situation, one of them being out of court settlements, the Standard quoted Joint MD and CFO Chanda Kochar as saying. In a statement last March, ICICI Bank admitted that the widening of credit spreads in the international markets have resulted in a negative mark-to-market impact on the credit derivatives and fixed income investment portfolios of the bank and its overseas banking subsidiaries. The bank, however, believes there has been no significant deterioration in actual credit quality of the underlying investments. ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of US$2.2 billion in credit derivatives. As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$155 million of which US$88 million had been provided for in the financial statements of the bank and its subsidiaries for the nine months ended December 31, 2007. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings on Feb. 5, 2007, gave ICICI Bank's Subordinated Debt a BB rating. The bank currently carries Moody's Investors Service's Ba2 Foreign Long Term Bank Deposits rating, which was placed on Feb. 5, 2003. IFCI LTD: Board to Consider Audited Results on April 29 ------------------------------------------------------- IFCI Ltd has informed the Bombay Stock Exchange that its board of directors will hold a meeting on April 29, 2008, inter alia, to approve the audited financial results for the quarter and year ended March 31, 2008. In the year ended March 31, 2007, IFCI booked a net profit of INR8.98 billion compared to the net loss of INR741 million in the prior financial year. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. QUEBECOR WORLD: Wants to Assume Three Software Licensing Deals -------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to assume three software licenses, cure the existing defaults under each contracts, and provide each party with adequate assurance of future performance: Debtor Party Cure Amount ------ ----- ----------- Quebecor World Blanchard System, US$160,0000 (USA) Inc. Inc. Quebecor World IO Integration, US$45,000 (USA) Inc. Inc. Quebecor World GMC Software US$87,480 Dittler Brothers Inc. Technology, Inc. Quebecor bought from Blanchard certain software licenses for software entitled the DALiM MiSTRAL Pro with DALiM TWiST Hardworker and the DALiM DiALOGUE Enterprise Server, along with related annual maintenance services. The Software is a Web- based electronic asset and project management and job tracking system. The Debtors use the Software in their Premedia division to electronically manage the premedia workflow among the Debtors' Premedia locations and with their customers. The Software electronically manages and stores the entire premedia workflow, allowing customers to upload, view and manipulate data and image files via a web portal from any location; allowing the Debtors to automate the premedia process of preparing files for print and allowing the Debtors and their customers to electronically sign-off on files for print via "soft-proofing" technology. Quebecor bought from IO Integration certain software licenses for software entitled Xinet FullPress 10 User and Xinet WebNative plus Venture, along with related installation and training services. The Software is part of a web-based electronic asset management system from the software manufacturer Xinet used by the Debtors in their Premedia division to manage the digital assets of the Debtors' Premedia customers. The Software standardizes digital files and automates premedia workflow, as well as allowing the Debtors' customers to view, approve, download and repurpose images online. Quebecor bought from GMC Software one PrintNet T Standard Designer Software License upgrade, along with related training and annual maintenance services. The Debtors have used the PrintNet T Standard Designer Software in the operation of their direct mail business in Atlanta for a number of years. Direct mail comprises approximately 85% of QW Atlanta's business. The entire QW Atlanta direct mail platform utilizes the Software. Michael J, Canning, Esq., at Arnold & Porter LLP, in New York, says asserts that the Debtors currently use the DALiM Software and the Xinet Software for hundreds of their customers. Buying additional Licenses from the same vendor would be an efficient use of the Debtors' assets as its employees are familiar with the Software and the Software have already been successfully integrated across Debtors' technology platform, Mr. Canning says. "Attempting to initiate a new software regime into the Debtors' Premedia operations would be potentially disruptive to the Debtors' Premedia business." Mr. Canning also argues that the Upgrade is necessary to the Debtors' direct mail business, as it allows QW Atlanta to accommodate new data formats utilized by its customers within QW Atlanta's current software platform, avoiding the need to replace QW Atlanta's current platform in its entirety. "Full replacement of the platform with software from another vendor would be substantially more costly and would be potentially disruptive to QW Atlanta's business." Mr. Canning adds that the generally favorable terms of the Contracts, including a corporate discount from the vendor, make it a valuable asset of the Debtors' bankruptcy estates. 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. QUEBECOR WORLD: E&Y Presents Monitor's Report to Quebec Court ------------------------------------------------------------- Ernst & Young, Inc., the Court-appointed monitor of Quebecor World Inc. and certain of its affiliates' bankruptcy proceedings under the Companies' Creditors Arrangement Act, presented its report to the Quebec Superior Court of Justice with respect to the activities of the companies and certain events occurring since Feb. 15, 2008. CCAA Proceedings On Feb. 19, 2008, the Quebec Superior Court of Justice ordered: (a) the extension of the stay termination date to May 12, 2008; (b) Ernst and Young to prepare a report on inter-company transactions: (c) that Quebecor World Inc. will be relieved of any obligation to call and hold an annual general meeting of shareholders on or before June 30, 2008, and Quebecor World is directed to call a meeting within three months following the lifting of the stay termination date; and (d) confirmation of various changes to the Initial Order as amended on Jan. 31, 2008. Stabilization of Operations (a) Overview With significant progress to date, the Applicants are under discussions with suppliers to re-establish supply arrangements and credit terms during the stay period. The Applicants have hired additional accounting staff to adapt to a large volume of new information, increasing levels of time sensitive payment requests and high volumes of manual transactions. The Applicants are also implementing procedures to ensure that renegotiated vendor credit limits are respected. The Applicants are working on a reconciliation of their prepetition trade liabilities. The analysis is ongoing as the payment of prepetition payments permitted by the U.S. Proceedings, the receipt and investigation of certain 20 day administrative and reclamation claims, and the set-off rights claimed by certain customers must be taken into consideration. (b) Banking In accordance with the terms of the Initial Order, a C$20,000,000 negotiated indemnification amount was deposited to the Canadian Bank of Commerce on February 21, 2008. (c) Customers The Applicants continue to negotiate and extend contracts in the normal course. Contract extensions have been reached with several customers since filing, with several more significant contracts subject to ongoing negotiations. Management expects that receipt of the Final DIP Order in the Chapter 11 proceedings will enable the Applicants to finalize negotiations with several significant customers. (d) Leases The Applicants have entered into new leases for additional office or warehousing space and as well as have renewed leases for manufacturing premises. The new leases have been small in value and for relatively short periods of time (one to six months), and the lease renewal for manufacturing premises was done substantially on the same conditions as previously existed, and is for a period of one year only. Cash Flow Results for the Six Weeks Ended March 23, 2008 As of March 23, 3008, the consolidated North American operations of the Applicants produced negative cash flow of US$77,000,000, approximately US$116,000,000 better than projected for the same period in the cash flow forecast prepared by the Applicants. According to management, the favorable variance is attributable to a number of factors not reflected on the Cash Flow Forecast including scrap paper sales, limited post-filing credit received form suppliers, temporary deferral of several capital projects, and a conservative forecast of certain payroll cost. A copy of the actual cash flow results and the variances from the cash flow forecast for the six weeks ended March 23, 2008 is available for free at: http://bankrupt.com/misc/Quebecor_CashFlowResultMarch2008.pdf Cash Flow Forecast for the 13 Weeks Ending June 22, 2008 To assist their short term financial performance and ongoing financing requirements during their restructuring proceedings, the Applicants have prepared a revised cash flow forecast for the 13 weeks ending June, 22, 2008. Management is expecting to incur an US$87,000,000 negative cash flow during the period. Management anticipates, however, that the Applicants will be marginally cash positive starting May as the Applicants move through their normal seasonal business cycle. The Revised Cash Flow Forecast does not require borrowings on the US$400,000,000 Revolving Credit Loan Facility, outside of the Letter of Credit Sub-Facility. A full-text copy of the Revised Cash Flow Forecast is available for free at: http://researcharchives.com/t/s?2a6b Creditors Committee A weekly call has been set-up with the professional advisors of the AD Hoc Bondholder group, the Bank Syndicate and the Official Committee of Unsecured Creditors; the Applicants; and E&Y to identify and discuss emerging issues. Ad Hoc Bondholder Group The Ad Hoc Bondholder Group has created a subcommittee known as the Ad Hoc Bondholder Subcommittee and has retained Milbank, Tweed, Hadley, McCloy LLP as U.S. Counsel, to review and analyze issues regarding the rank and priorities of various notes issued by the Applicants. Official Committee of Unsecured Creditors The Committee replaced Osler, Hoskin and Harcourt LLP with Bennett Jones LLP as Canadian legal counsel upon identification of a certain conflict by Osler Hoskin before its retention. Governance The Board of Directors of Quebecor World Inc. disclosed the members of its Restructuring Committee: (a) Mr. Andre Caile, (b) Mrs. Michele Desjardins, (c) Mr. Jean La Couture, (d) Mr. Jean Neveu, and (e) Mr. Jacques Mallette On March 24, 2008, the Restructuring Committee selected a candidate for the Chief Restructuring Officer position. The terms and conditions of the CRO engagement are under discussion and documentation. Status of Latin American Operations As of April 1, 2008, the Applicants transferredUS$6,000,000 to Mexico, Peru, Argentina, and the British Virgin Islands: Mexico US$2,500,000 Peru 2,500,000 Argentina 700,000 British Virgin Islands 300,000 The Applicants are working on the transfer of the remaining $4,000,000 to Colombia. According to the Applicants, the process to transfer funds to Colombia is complicated because Colombian laws prohibit funds transfers by way of an inter-company loan from non-domestic sources and the Financing Facilities prohibit them from investing in the equity of foreign subsidiaries. The Applicants are reviewing alternative mechanisms to effect the cash transfer. Status of European Operations The Applicants are assessing their alternatives with respect to the European operations. As of April, 1, 2008, the Applicants have transferred EUR9,000,000 to finance its European operations. Operations in the United Kingdom After being unable to renew a contract with the Associated Newspaper Limited in 2005, Quebecor World PLC was unable to find a replacement for this major contract. Given the platform used by QW UK, it was difficult to realign costs to match reduced production volumes, resulting in operating losses and layoffs. These difficulties were compounded by the intense competition in the market driven by considerable overcapacity. UK Administrators Ian Best and David Duggins of Ernst & Young UK retained GVA Grimley to market and sell the QW UK fixed assets. A team of 26 employees were retained to decommission the equipment and make the assets ready for sale. The Administrators estimate that the overall process, including the disassembly and removal of equipment, will not be completed until the end of 2008. The Administrators are marketing two properties where the operations were conducted. Holding costs, including insurance, site clean-up and security costs, could be significant until the properties are sold. A meeting of the creditors of Quebecor World UK was held on March 28, 2008, for the creditors to vote upon the proposal made by the Administrators including to: (a) continue the realization of the assets; (b) perform an investigation of any claims QW UK may have against third parties; (c) continue the Administration, as required; (d) establish a creditors' committee; (e) enable the Administrators to perform a distribution under the Administration, if it is a more cost effective process than under a liquidation; and (f) move the company directly into a creditors' voluntary liquidation at the end of the Administration. The Administrators have indicated that approximately 35 creditors were present at the meeting, most of whom were employees. The creditors voted in favor of the proposal and have requested that a creditors' committee be formed. The Applicants say that a representative of Quebecor World S.A. will sit on the creditors' committee. Quebecor World UK has payables of approximately GBP70,000,000 of which GBP41,000,000 are for pension related obligations and GBP15,000,000 are for inter-company payables. Preparation of Restructuring Business Plan The Applicants have begun the preparation of their five-year business and financial plans with the advice and assistance of UBS and input from Ernst & Young. The business plans will reflect the Applicants' expectations of future operating performance during and after the CCAA and Chapter 11 processes. Management expects that the preparation of the business plans will be completed in May. 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. QUEBECOR WORLD: Wants to Assume Yale Materials Contracts -------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to assume an unexpired master rental agreement and associated rental schedules with Yale Materials Handling Corporation, pay the cure amount necessary to cure the existing defaults, and provide YMHC with adequate assurance of future performance. Quebecor World Inc., and Yale Materials Handling Corporation and Yale Industrial Trucks Ontario LTD are parties to a master rental agreement dated Sept. 17, 2003. Under the Agreement, Quebecor World and its affiliates may rent forklift trucks and other materials handling equipment from YMHC, under a rental schedule. As of the bankruptcy filing, the Debtors and YMHC were parties to 99 rental schedules covering 331 individual lift trucks in use at the Debtors' facilities. The remaining term of each rental schedule varies according to the date on which a particular Debtor Affiliate entered into the rental schedule, with expiration dates falling between July 1, 2008, and Dec. 31, 2012. As of April 7, 2008, the Debtors owe US$1,001,425 in unpaid prepetition obligations and US$330,114 in unpaid postpetition obligations to YMHC totaling US$1,331,539. The amount owed is required to cure the Debtors' defaults under the Rental Agreement and pursuant to Section 365(b) of the Bankruptcy Code. Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, says that in connection with the Debtors' assumption of the Rental Agreement, YMHC has agreed to waive the hourly overtime use charges for all current Leased Equipment incurred through April 7, 2008. In addition, YMHC has agreed that for the Debtors' facilities in Olive Branch, Mississippi; Fernley, Nevada; Jonesboro, Arkansas; and Merced, California, YMHC will make available additional rental equipment that will reduce the Debtors' utilization of the existing equipment at those facilities to a level that ensures that the Debtors will not exceed the allowable hours for each piece of equipment by the end of the terms of the applicable Rental Schedules. The Debtors have agreed to add the equipment and pay the associated rental costs so that the total allowed hours on the current Leased Equipment will be within the total hourly utilization allowed under the Rental Agreement and applicable Rental Schedule at the end of the rental term. Furthermore, YMHC has agreed to waive certain administrative priority claims. According to Mr. Canning, the Debtors have undertaken a review of both their future equipment needs and their current arrangement with YMHC. In connection with their review, the Debtors contacted five large equipment leasing companies other than YMHC, as well as several smaller equipment lessors. Mr. Canning relates that a number of these lessors stated that they would not enter into new rental agreements with the Debtors in light of the pending Chapter 11 Cases. "The remainder of the potential lessors indicted that, while they might be willing to lease equipment to the Debtors on a going forward basis, any rent